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HomeMy WebLinkAbout2010-06-21 City Council Agenda Packet 06/21/10 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 June 21, 2010 6:00 PM ROLL CALL CLOSED SESSION Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker. THE FOLLOWING CLOSED SESSION WILL BE HELD WITH THE CITY LABOR NEGOTIATORS 1. CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his designees pursuant to Merit System Rules and Regulations (James Keene, Pamela Antil, Dennis Burns, Lalo Perez, Joe Saccio, Russ Carlsen, Sandra Blanch, Marcie Scott, Darrell Murray) Employee Organization: Palo Alto Peace Officers’ Association Authority: Government Code Section 54957.6(a) CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his designees pursuant to Merit System Rules and Regulations (James Keene, Pamela Antil, Lalo Perez, Joe Saccio, Russ Carlsen, Sandra Blanch, Marcie Scott, Greg Betts, Darrell Murray) Employee Organization: Local 521 Service Employees International Union Authority: Government Code Section 54957.6(a) CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his designees pursuant to Merit System Rules and Regulations (James Keene, Pamela Antil, Nick Marinaro, Roger Bloom, Lalo Perez, Joe Saccio, Russ Carlsen, Sandra Blanch, Marcie Scott, Darrell Murray) Employee Organization: Local 1319, International Association of Firefighters Authority: Government Code Section 54957.6(a) 2 06/21/10 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. 7:30 p.m. or as soon as possible thereafter SPECIAL ORDERS OF THE DAY 2. Selection of Candidates to be Interviewed for the Utilities Advisory Commission ATTACHMENT 3. Appointments for the Human Relations Commission for Two Three- Year Terms Ending on March 31, 2013 and One Unexpired Term Ending on March 31, 2012 ATTACHMENT CITY MANAGER COMMENTS ORAL COMMUNICATIONS Members of the public may speak to any item not on the agenda; three minutes per speaker. Council reserves the right to limit the duration or Oral Communications period to 30 minutes. APPROVAL OF MINUTES CONSENT CALENDAR Items will be voted on in one motion unless removed from the calendar by two Council Members. 4. Adoption of a Resolution Approving a Professional Services Agreement between the Northern California Power Agency and the Cities of Alameda, Palo Alto and Santa Clara for Electric Transmission, Generation and Regulatory Consulting Services CMR 261:10 & ATTACHMENT 5. Approval of a Utilities Enterprise Fund Contract with K. J. Woods Construction Inc. in the Amount of $1,848,000 for Sanitary Sewer Rehabilitation Capital Improvement Program Project WC-08012 (Project 21 – Barron Park, Alma, Baylands) CMR 271:10 & ATTACHMENT 6. 2nd Reading: Adoption of an Ordinance Repealing Chapter 16.09 of the Palo Alto Municipal Code and Amending Title 16 to Adopt a New Chapter 16.09 (Sewer Use Ordinance) Establishing Regulations to Reduce Discharges of Pollutants to the Sanitary Sewer and Storm Drainage Systems (First reading June 07, 2010 – Passed 8-0 Klein Absent) (PW) 3 06/21/10 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 Authorizing the City To Apply For Funds and Execute Agreements With the State Of California Under the Nature Education Facilities Program of The Safe Drinking Water, Water Quality And Supply, Flood Control, River And Coastal Protection Bond Act Of 2006 For Facility and Exhibit Renovations at the Palo Alto Junior Museum & Zoo and The Lucy Evans Baylands Nature Center, Respectively CMR 282:10 & ATTACHMENT 8. Approval of 3 Year Contract with Loral Landscaping Inc. in the Amount of $181,854 for Landscape Maintenance Services and 3 Year Contract with Gachina Landscape Management Inc. in the Amount of $1,792,950 for Landscape Maintenance Services CMR 280:10 & ATTACHMENT 9. Approval of a Purchase Order with Pierce Manufacturing, Inc. c/o Golden State Fire Apparatus Inc. in an Amount Not to Exceed $317,184 for the Purchase of One Type III Fire Engine 10. Annual Adoption of City's Investment Policy (CMR287:10)  CMR 287:10 & ATTACHMENT 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. ACTION ITEMS Include: Public Hearings, Reports of Committees/Commissions, Ordinances and Resolutions, Reports of Officials, Unfinished Business and Council Matters 11. Public Hearing: (CMR: 288:10) Discussion of the Finance Committee Recommendation of the Adoption of the Fiscal Year 2011 Budget and Adoption of a Budget Amendment Ordinance, including 1) Exhibit A – City Manager’s Fiscal Year 2011 Proposed Budget; 2) Exhibit B – Amendments to the City Manager’s Fiscal Year 2011 Proposed Budget; 3) Exhibit C - Revised Pages in the Fiscal Year 2011 Table of Organization; 4) Exhibit D – Fiscal Year Proposed Municipal Fee Schedule; 5) Exhibit E – Amendments to the Fiscal Year 2011 Proposed Municipal Fee Schedule (a) The Finance Committee Recommends that the City Council Adopt the Fiscal Year 2011 Budget Pertaining to the Police and Fire 4 06/21/10 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. Department Budgets as Modified and the Portions of the CIP Relating to Stanford and the Ordinance Portions Related Thereto (b) The Finance Committee Recommends the City Council Adopt the Remaining Items in the Fiscal Year 2011 Budget as Modified and the Ordinance Portions and Resolutions Related Thereto (c) Adoption of a Resolution Amending the 2009-2010 Compensation Plan for Management and Professional Personnel and Council Appointees Adopted by Resolution No. 9001 to Add a New Classification, Update the Salary of One Classification and Change the Titles of Eighteen Classifications (d) Resolution Amending Utility Rate Schedules for a Storm Drain Rate Increase (e) Resolution Amending Utility Rate Schedules for Fiber Optic Rate Increase (f) Adoption of a Resolution encouraging all Palo Alto Council Members to Voluntarily Accept a 10% reduction in their Salaries for Fiscal Year 2011 Due to the Financial Challenges Facing the City  CMR 288:10 & ATTACHMENT 12. Public Hearing: Adoption of a Mitigated Negative Declaration and Approval of Site and Design Review and Record of Land Use Action for a New 11,857 Square-foot Single Family Home in the Open Space Zone District located at 805 Los Trancos Road CMR 277:10 & ATTACHMENT COUNCIL MEMBER QUESTIONS, COMMENTS, AND ANNOUNCEMENTS Members of the public may not speak to the item(s). ADJOURNMENT Persons with disabilities who require auxiliary aids or services in using City facilities, services, or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact 650-329-2550 (Voice) 24 hours in advance. June 21, 2010 HONORABLE CITY COUNCIL City of Palo Alto SUBJECT: Selection of Candidates to be interviewed for the Utilities Advisory Commission Dear Council Members: Enclosed are eight applications submitted for two three year terms ending on June 30, 2013 on the Utilities Advisory Commission. At the Council Meeting on Monday, June 21, 2010 the City Council will select the candidates to be interviewed for the Utilities Advisory Commission, with the interview date to be determined. Each Council Member will receive a selection sheet to use for determining who will be chosen for an interview. The requested action is for each Council Member to fill out the selection sheet. The City Clerk will announce the results. Candidates who receive four or more votes will be scheduled for an interview. The applicants are as follows: Name Address Phone 1. Lisa Altieri 530 Barron Ave Palo Alto, CA 94306 650-274-5171 2. William Berry 157 Primrose Way Palo Alto, CA 94303 650-424-9880 3. James Cook 730 College Ave Palo Alto, CA 94306 650-455-1855 4. Robert Entriken 302 College Ave Palo Alto, CA 94306 650-326-7215 5. Mark Harris 1417 Dana Ave Palo Alto, CA 94301 650-327-7066 6. Arthur Roberts 4202 Manuela Ave Palo Alto, CA 94306 650-948-4622 7. Robert Stillerman 1636 Madrono Ave Palo Alto, CA 94306 650-326-4800 8. Asa Such 2150 Oberlin St Palo Alto, CA 94306 650-365-1860 Respectfully submitted, Ronna Jojola Gonsalves Deputy City Clerk Enclosures cc: All applicants (without enclosure) Donna Grider, City Clerk Valerie Fong, Staff Liaison TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: UTILITIES DATE: JUNE 21, 2010 CMR: 261:10 REPORT TYPE: CONSENT SURTECT: Adoption of a Resolution Approving a Professional Services Agreement between the Northern California Power Agency and the Cities of Alameda, Palo Alto and Santa Clara for Electric Transmission, Generation and Regulatory Consulting Services RECOMMENDATION Staff recommends that the City Council adopt a resolution approving and authorizing the City Manager to execute the Professional Services Agreement between the Northern California Power Agency and the Cities of Alameda, Palo Alto and Santa Clara for Electric Transmission, Generation and Regulatory Consulting Services. BACKGROUND The Northern California Power Agency (NCPA) is a joint powers agency whose members are municipal electric utilities including the City of Palo Alto. NCP A arranges for delivery of the City's electric power and manages electric resourees that Palo Alto jointly owns with other NCPA members. In 2003, Palo Alto along with two other NCP A members, the Cities of Alameda and Santa Clara, requested that NCPA provide professional consulting services related to electric transmission, power generation, regulatory issues, and electric market design issues affecting the thrce cities. The Cities of Palo Alto, Alameda, and Santa Clara (collectively the Bay Area Municipal Transmission Group, or BAMx) required consulting services unique from other NCPA members, because of the BAMx members' location in the Bay Arca, an area that has transmission constraint~. Prior to 2003, City of Palo Alto had a contract with Flyrm Resource Consultants, Inc. (Flyrm RCI) to provide regulatory and technical consulting services for the City's electric utility. Following the 2000/2001 California electricity market crisis, the California Independent System Operator (CAISO) initiated a major redesign of the electricity markets, which thc City participated in with the consulting assistance of Flyrm RCI. The Cities of Palo Alto, Alameda, and Santa Clara identified common interests in advocating for certain market design proposals and hence the formation of BAMx. Recognizing their need for technical and regulatory CMR: 261:10 Page 1 of3 consulting services, the BAJ'vlx members considered ways to reduce costs by sharing a consultant. The options considered included forming a new joint powers agency that would then retain a consultant; entering into three separate consulting agreements with one consulting company; or working through NCPA. At the time the members decided that the best alternative was to ask NCPA to provide the consulting services, thereby reducing administrative costs and facilitating coordination with other NCPA members when common interests were identified. The wider NCPA membership was not engaged in the issues of interest to BAMx, so on March I, 2003 NCPA entered into a consulting agreement with Flynn RCI to provide these services to the BAMx members. Since March 2003, Flynn RCI has been representing BAMx in Bay Area electric transmission expansion planning processes, at CAISO proceedings related to electric market design in . Califorula, in filings at the Federal Energy Regulatory Commission, and in other regional electric transmission planning venues. An early success for BAMx was the implementation of a single hourly market price that is charged to electric load in Northern California. Earlier proposals would have had electric customers paying different prices according to their location on the electric grid. For customers of Palo Alto's electric utility this would have meant exposure to hlgher anticipated market prices because of the City's location in the transmission constrained Bay Area. BAMx, through its consultant, has also advocated for improved reliability of electricity transmission service in to the Bay Area, and has influenced the CAISO's electric transmission planning process to provide for more effective stakeholder participation. The current contract between NCPA and Flynn RCI expires on June 30, 2010 and NCPA staff is preparing a new agreement to continue the consulting services for Fiscal Year (FY) 2011. For new consulting agreements executed by NCPA on behalf of one, or a subset of, NCPA members, NCPA now requires that those members enter into a Professional Services Agreement with NCPA. DISCUSSION The Professional Services Agreement between NCPA and the BAMx members (Attachment B) states that NCPA is perfonning these services at the request of the BAMx members, and formalizes NCPA's role in processing invoices from Flynn RCI and allocating the monthly charges to eaeh BAMx member. The allocation of charges between the BAMx members is in proportion to eaeh member's share of energy delivered in the calendar year prior to the contraet term. For the contract period (July 1,2010 through June 30, 2011), Palo Alto's share is 23.3% based on energy deliveries in calendar year 2009. The agreement also eontains provisions that limit NCPA's liability and that of non-participating NCPA members. RESOURCE IMPACT The City's share of the I'lynn RCI contract is incorporated into the City's NCPA budget for FY 2011. The Consulting Agreement between NCPA and Flynn RCI (attached for information as Attachment C) specifies a not-to-exceed contract amount of $750,000 for FY 2011. NCPA wiIl also charge a fee for billing and contract preparation of $625 per month. The City's share of the total cost will be up to a maximum of $176,444 for the one-year eontraet term. CMR: 261:10 Page 2 of3 The value to the City from participation in the BAMx group is the continued advocacy for fair and equitable clectric market rules and effective stakeholder participation in electric transmission planning processes. BAMx is currently taking a lead role in advocating for rigorous economic and needs analyses in the CArSO's latest transmission planning proceedings to build new transmission to potential renewable electric resource sites in remote locations. By the CAISO's own estimations this new transmission could triple the charge to electric utilities for transmission access, currently around $10 million a year for the City. POLICY IMPLICA nONS There are no policy implications. ENVIRONMENTAL REVIEW The provision of these serviees do not constitute a project pursuant to Seetion 21065 of the California Public Resources Code, thus no environmental review under CEQA is required. ATTACHMENTS A. Resolution B. Professional Services Agreement between NCP A and The Cities Of Alameda, Palo Alto And Santa Clara C. Consulting Services Agreement between NCP A and Flynn Resource Consultants Inc. PREPARED BY: DEBRA LLOYD "'D L Senior Resource Planner REv:rEWED BY: JANERATCHYE ~..fi'rJK. Assistant Director, Utilities Resource Management DEPARTMENT APPROVAL: ~,.0 '1i'IA-- /J M~¥NE j "'--'-"'-- City Manager CITY MANAGER APPROVAL: CMR: 261:10 Page 3 of3 . , . . " '''-{_. ATTACHMENT A NOT YET APPROVED Resolution No, .-c:c---:::-::- Resolution of the Council of the City of Palo Alto Approving the Professional Services Agreement between the Northern California Power Agency and the Cities of Alameda, Palo Alto and Santa Cara for Electric Transmission, Generation and Regulatory Consulting Services WHEREAS, the City of Palo Alto ("City"), a municipal utility and a chartered city, is a member of the Northern California Power Agency ("NCP A"); and WHEREAS, in 2003, Palo Alto, along with two other NCPAmembers the Cities of Alameda and Santa Clara, formed the Bay Area Municipal Transmission Group ("BAMx"); and WHEREAS, in 2003, BAMx requested that NCPA provide professional consulting services related to electric transmission, power generation, regulatory issues, and electric market design issues affecting the BAMx members; and WHEREAS, since 2003 NCPA has had a contract with Flynn Resource Consultants, Inc, ("Flynn ReI") to provide these consulting services to the BAMx members; and WHEREAS, the current contract between NCPA and Flynn RCI expires on June 30, 2010 and NCPA staff is preparing a new agreement to continue the consulting services for Fiscal Year (FY) 2011; and WHEREAS, for new consulting agreements executed by N CPA on behalf of one, or a subset of, NCPA members, NCPA now requires that those members enter into a Professional Services Agreement with NCPA; and WHEREAS, the Professional Services Agreement specifies the terms and conditions under which NCP A will procure the requested professional consulting services and allocate charges between the BAMx members, NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: 1 lOO615,yn 6051220 NOT YET APPROVED SECTION 1. The Council hereby approves the Professional Services Agreement Between Northern California Power Agency and the Cities of Alameda, Palo Alto and Santa Clara. The City Manager or designee is hereby authorized to sign the agreement on behalf of the City of Palo Alto. SECTION 2. The Council fmds that the adoption of this resolution does not meet the definition of a project under Public Resource Code Section 21065, thus, no environmental assessment under the California Environmental Quality Act is required. INTRODUCED AND PASSED: AYES: KOES: ABSE1"-iT ABSTENTIOKS: ATTEST: City Clerk APPROVED AS TO FORM: . Deputy City Attorney 100615 syo 6051220 2 Mayor APPROVED: City Manager --.-=~------Director of Utilities Director of Administrative Services I PROFESSIONAL SERVICES AGREEMENT BETWEEN NORTHERN CALIFORNIA POWER AGENCY AND THE CITIES OF ALAMEDA, PALO ALTO AND SANTA CLARA ATTACHMENT B (THE "BAY AREA MUNICIPAL TRANSMISSION SERVICES AGREEMENT" OR "BAMx AGREEMENT'1 This Professional Services Agreement ("Agreement") is made by and between the NORTHERN CALIFORNIA POWER AGENCY ("NCPA" a joint powers agency and the Cities of Alameda, Palo Alto and Santa Clara (such cities each being a 'Contracting Member" and jointly referrad to as "Contracting Members" or "BAMx Participants'). NCPA and the Contracting Members are together sometimes referred 10 herein individually as a "Party" and collectively as "the Parties." This Agreement Is made as of July 1, 2010 (the "Effective Date") in Roseville, California. Section 1, RECITALS ,This Agreement is entered into based on the follovAng facts, among others: 1.1 NCPA is a public agency created by a joint powers agreement established under Califomia law for the purpose of assisting Its members in the efficient use of their common powers. 1.2 Contracting Members are engaged in, among other things, transmitting and distributing electric power within theIr respective corporate limits. Contracting Members are also eech a member of NCPA. Contracting Members jointly desire that NCPA provide Contracting Members with the Services described In this Agreement. 1.3 Article III, section 3 of the "Amended and Restated Northern California Power Agency Joint Powers Agreement" (as amended and effuctive January 1,2008) (hereinafter "JPA') entitled "Powers and Functions' provides that 'none of the debts, liabilities or obligations of NCPA shall be the debts, liabilities or obligations of any of the members of NCPA unlesS assumed In a . particular case by resolution of the governing body of the member lobe charged." Notwithstanding the foregoing, Article V, section 1 of the JPA entitled "General Provisions' provides that "Illhe governing Commission of NCPA is authorized to procure public liability and other insurance as it deems advisable to protect NCPA and each of the parties hereto, charging the cost thereof to the operating costs of NCPA: 1.4 Contracting Members desire to secure NCPA's Services under this Agreement in a manner that balances their interests and the interests of other NCPA members wflh the ongoing financial viability and professional responsibilities of NCPA. Accordingly, Contracting Members desire to secure NCPA's Services under this Agreement by acceptlng a limited Insurance based recourae against NCPA, with thli' option of procuring additional insurance at Conlracting Members' sole expense. By so doing, the Parlies thereby ensure that NCPA will substantially limit Its risk for the provision of such Services and allocates risks back to the Contracting Members In the event NCPA is not adequately insured. 1 BAM>< PROFESSIONAL SERVICES ACREllMENT NOW THEREFORE, In consideranon of ltie mutual covenants and promises set forth, NCPA and Contra~ting Members agree as follows: Section 2. DEFINITIONS Whenever used in ltiis Agreement with initial capitalization, these terms shall have the following meanings as applicable, whether in the Singular or plural: . 2.1 . "Good Utility Prectice" shall mean any of the practices, methods and acts·i'lngaged In or approved by a significant portion of the electric uUlily industry during the relevant time period, or any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accompliSh the desired result of the lowest reasonable cost consistent wilh good business prectiCeS, reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum practice, . method or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region and consistently adhered to by the electric utility industry. . 2.2 rtNCPA Members" shall mean the signatories to the JPA or those agencies which have executed an Associate Member Agreement with NCPA. 2.3 "Stranded Costs' shall mean all costs incurred by NCPA in providing Services to Contracting Members under this Agreement that could not reasonably be avoided by NCPA from the date It receives a written Notice of Termination. Such costs may Include, but not be limited to, salary and employment costs, rent, utilities, or contracts incurred to provide Services under this· Agreement. In this regard, Contracting Members acknowledge that NCPA will be entering into professional selVices agreements with third persons under the terms of this Agreement, and that sums owing to such third persons may become Stranded Costs upon termination of this Agreement Section 3. SERVICES TO BE PROVIDED; AUTHORIZED REPRESENTATIVES; STANDARD OF PERFORMANCE . 3.1 This Agreement Is entered into by the Parties in order for NCPA to provide selVices to Contracting Members for the services described in Exhibit A hereto ('Services"). The Services do not include supelVislon of the performance of any of the third persons with whom contracts are entered into; such supelVlsion shall be provided by the Contracting Members. 3.2 The fotiowing are the Authorized Representatives of the parties for contract administration purposes under this Agreement: Donna Stevener, CFO, Donna.Stevener@ncpa.com Northern California Power Agency 651 Commerce Drive Rosevnle, CA 95678 916-781-4244 916-781-4255 fax 2 BAMx PROFESSIONAL SERVICES AGREEMENt Debra Lloyd, Debra.Lloyd@Cityofpaloalto,org 650-329-2369 Valerie Fong, Valerie.Fong@cityofpaloalto.org 650-329·2277 Fax 650-326-1507 City of Palo Alto P.O. Box 10250 Palo Alto, CA 94303 Gilillh Balachandran, Girish@alamedamp.com . General Manager Alameda Municipal Power 2000 Grand Street P,O.BoxH Alameda, CA 94501-0263 510-748-3908 510-748-3956 Brad Wetstone, wetstone@alamedamp.com Alameda Municipal Power 2000 Grand Street P.O.BoxH Alameda, CA 94501-0263 510-814-6412. 510-814-5699 Ken Sims, ksims@svpower.com 408-615-6678 Diana Shlles, Dshiles@svpower.com 408-615-6672 Fax 408·261·2717 1601 Civic Center Or, # 201 Santa Clara, CA 95050 No Authorized Representative is authorized to amend any provision of this Agreement except in accordance with Section 12.16. . 3.3 Standard of Performance. NCPA will perform the Services using that level of skill and attan1fon reasonably required to complete the Services in a competent and timely manner. 3.4 . Assignment of Personnel. NCPA shall assign only competent personnel to perform Services pursuant to tl)ls Agreement. In the event that Contracting Members, in their sole discretion, at any lime during the term of this Agreement, joinUy desire the reassignment of any such persons, NCPA shall, Immediately upon receiving notice from each Contracting Member of such desire of the Contracting Members, reassign such person or persons. 3 BAMx PROFllSSIONAL SERVICES AGREEMENT 3.5 Time. NCPA shall devote such lime to the performance of Services pursuant to . this Agreement as may be reasonably necessary to meet the standard of performance provided in Section 3.3, above and to satisfy NCPA's obligations hereunder. Section 4,' TERM AND TERMINATION 4.1 Authorizationto Perform Services. NCPA is not authorized to perform any Services or incur any costs whatsoever under the terms of this Agreement until its receipt of a written resolution and/or other appropriate/applicable authorization from each Contracting Member's governing body confirming each Contracting Member'S authority to enter into this Agreement and confirming.thal each Contracting Member has allocated funds for and approved contract payments to NCPA under this Agreement. 4.2 Term. The term of this Agreement shall begin on the Effective Date and shall end on June 30,2011. 4.3 Early T!)rmination and Stranded Costs. This Agreement may be terminated by either NCPA or by the Contracting Members, upon 30 days written notice to all other Parties ("Notice of Termination"). Provided, however, that a Notice ofTerminatfon on behalf of the Contracting Members shalf be executed by each Contracting Member to be effective. In the event of an early termination, Contracting Members shalf pay NCPA for all fees and costs required under this Agreement through the effective date of their Notice of Termination plus all Stranded Costs. Upon payment of the above amounts, no Parties shall have any further obligations under this Agreement except as otherwise set forth in Section 5.7 regarding the survival of defense and indemnity obligations. Section 5. INDEMNITY AND INSURANCE 5.1 Limitation of NCPA's Liability. 5.1.1 Except as provided in this section 5.1, NCPA shan not at any time be liable for any injury or damage occurring to Contracting Members or any other person or property from any cause whatsoever arising out of this Agreement. 5.1.2 The provisions of section 5.1.1 shall not apply where the injury or damage occurring to Contracting Members is caused by the negligence of NCPA or of any employee, agent or contractor of NCPA; provided that any liability under this SUbsection Is limited to the extent of the actual coverage and coverage limits of the NCPA insurance policies described in this Section 5 .. 5.1.3 Notwithstanding Section 5.1.2 above, the Contracting Members agree to reimburse NCPA, in a timely manner, for all deduclibles and/or self-insured retentions payable for any claim, liability or damage arising out of this Agreement. 4 BAMx PRO~SSIONAL SERVlCSS AGREEMENT 5.2 Indemnification of NCPA. Except as specified in Section 5.1.2 above, Contracting Members shall, at their sole cost and expense, indemnify and hold harmless NCPA and all associated, affiliated, allied, member and subsidiary entities of NCPA, now existing or hereinafter created, and their respective officers, boards, commissions, employees, agents, attorneys, and oontractors (hereinafter referred to as 'Indemnltees"), from and against any and all liability, obligation, damages, penalties, claims, liens, costs, charges, losses and expenses (including, without limitation, reasonable fees and expenses of attorneys, expert witnesses and conSUltants), which may be imposed upon, incurred by or be asserted against the Indemnitees arising .out of this Agreement. 5.3 Defense of Indemnitees. In the event any action or proceeding shall be brought agalnsl \!1e Indemnilees by reason of any matter for whic!) the Indemnltees are Indemnified hereunder, Contracting Members shall, upon reasonable prior written noUce from any of the Indemnitees, at Contracting Members' sole cost and expense, resist and defend the same with legal counsel mutually selected by Indemnitee and the Contracting Members, unless mutual· selection of counsel is expressly prohibited by an applicable insurance policy; provided however, thai neither Indemnitee nor,Contracting Members shall admit liability In any such matter or on behalf of the other without express written consent, which consent shall notbe unreasonably withheld or delayed, nor enter into any compromise or settlement of any claim for which lndemnitees are indemnified hereunder without prior express written oonsent The Contracting Members' duty to defend shall begin upon receipt of a written notice identifying with specificity the allegations that giver/se to this duty to defend. 5.4 Notice. The Parties shall give each other prompt notice of the making of any claim or the commencement of any acllon, suit or other proceeding covered by the provisions of this Section 6. 5.5 Insurance. During the term of the Agreement and prior to beginning any work under this Agreement. NCPA shall maintain, or cause to be maintained, In full force and effect, and at its sole cost and expense, the types and limits of Insurance as are annually approved by the governing Commission of NCPA. The types and limits of insurance that are applicable to this Agreement are evidenced by list of insurance coverages which Is attached hereto as exhibit C. NCPA warrants and represents that the types of insurance and coverage limits shown In Exhibit C are in full force and effect and shall remain so during the term of this Agreement unless NCPA gives prior written notification (of not less than 15 days) of modificallon~ cancellation or rescisSion of such coverage. 5.6 Contracting Members' Acknowledgment of Option to Secure AddlUonal Insurance. The Contracting Members acknowledge thatthere arelimltallons on NCPA's liability to the Contracting Members under this Section 5 and that the Contracting Members may need to purchase additional insurance of their own to cover the additional risks and the potential add~ional liabilities they are assuming under this Agreement. Contracting Members agree that they will, with respect to any additional Insurance they obtain or which is otherwise available to Contracting . Members,cause their insurers to Issue an endorsement providing a weiver of subrogation rights as to Indemnitees . . 5.7 Survival of Obligations. The defense and indemnity obligations of Section 5 shall 5 BAMx PROFESSIONAL SSJl.V!CSS AGRBEMENT survive the termination of this Agreement. " Section 6. COMPENSATION 6.1 Charges and Reserves tl..1.1. Monthly Chames. Charges for the Services provided hereunder shall be the sum of (a) and (b) below, and shall billed separately to each BAMx Participant in accordance with Exhibit B: (a) (b) Six-Hundred-Twenty-Five Dollars ($ 625) per month for services provided by NCPA to the BAMx Partfclpants under this Agreement; and Sixty-Two-Thousand-Five Hundred Dollars ($82,500) per month for services provided to the BAMx Participants directly by Flynn Resource Consultants Ino., under the CONSULTING SERVICES AGREEMENT BETWEEN THE NORTHERN CAUFORNIA POWER AGENCY AND Flynn Resource Consultants Inc., dated July 1, 2010. 6.1.2 Security Deposit. Contracting Members shall each maintain on deposit in its General Operating Reserve Acoount held at NCPA the sum of Zero Dollars ($0) as security to NCPA for liabilities NCPA could incur under this Agreement. Contrecting Members hereby authorize NCPA to reserve and commit this sum in its General Operating Reserve Acoount for the payment of the aforementioned Ilabilities-should·same become necessary. Interest on monies held by NCPA pursuant to this section shall be credited in accordance with the then.standard prectices . of NCPA relating to the General Operating Reserve Acoounl. Section 7. BILLING AND PAYMENT 7.1 Invoices. NCPA shall submitinvoicBs to Contracting Members, not more often than once a month during the term of this Agreement, for Services performed and reimbursable costs incurred prior to the invoice date. 7.2 Monthly Payment, Contracting Members shall make monthly payments, based on Invoices received, for Services performed, and for authorized reimbursable costs incurred. Contracting Members shall have thirty (30) days from the receipt of an invoice that complies with all of the requirements above to pay NCPA. Any amount due on a day other than a business day, i.e., any day except a Saturday, Sunday, or a Federei Reserve Bank holiday, may be paid on the following business day. If all or any portien of a bill is disputed by Contrectlng Members, the entire amount of the bill shall be paid when dUB, and NCPA'S Authorized Representative shall be concunrently provided written notice of the disputed amount and the basis for the dispute. NCPA shall reimburse any amount determined to have been Incorrectly billed, within ten (10) days after such determination. Amounts. which are not paid woen due shall bear interest computed on a daily basis until paid at the lesser of m the per annum prime rate (or reference rate) of the Bank of America NT & 6 BAM>< PROFllSSIONAL SSRVlCES AGREEMENT I I SA. or its successor, then in effect, plus two per cent (2%) or (IQ the maximum rate permitted by law, The proVisions of this Section 7 shall survive expiration of this Agreement until saHsfred. 7.3 Contracting Members shall pay for the Services purSuant to this Agreement Contracllng Members shall not pay any additional sum for any expense or cost whatsoever incurrad by NCPA in rendering Services pursuant to this Agreement. Contracting Members shall make no payment for any exira, fur1her, or additional service pursuant to this Agreement. In no event shall NCPA submit any Invoice for an amcunt in excess of the maximum amounl of compensation provided above either fOr a task or for the entire Agreement, unless the- . Agreemant is modified prior 10 the submission of such an invoice by a properly executed change order or amendment in accordance with this Agreement. . 7.4 . Hourly Fees. Fees for work performed by NCPA on an hourly basis shallnol exceed the amounts shown on the following fee schedule attached hereto as Exhibit B. 7,5 Reimbursable Expenses. Reimbursable expenses are $pecified in Exhibit B. Expenses not listed In Exhibit B are not chargeable 10 Contracting Member. Reimbursable expenses are included in the total amount of compensation provided under this Agreement that shall not be exceeded. . 7.6 Payment ofTaxes. NCPA is solely responsible for the payment of employment taxes Incurred under this Agreement and any similar federal or state taxes. 7.7 Payment upon Termination. In the event that Contracting Members or NCf'A terminates this Agreement pursuent to Section 4, Contracting Members shall compensate the NCPA for all outstanding costs and reimbursable expenses incurred for work satisfactorily completed as of the date ofwrilten Notice ofTermlnation. NCPA shall maintain adequate logs and timesheets in order to verify costs incurred to that date. 7.8 Authorization to Perfoffil Services. NCPA is not authorized to perform any ServiceS or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from Contracting Member's Contract Authorized Representative folloWing receipt of the required approvals under the terms of this Agreement 7.9 The addresses of Contracting Members to which invoices shall be sent is: Jon Abendschein City of Palo Alto P.O. Box 10250 Palo Alto. CA 94303 Fax: 65~326-1507 Alameda Municipal Power Assistant General Manager BAM>< PROl'llSSIONAL SERVICllS AGREEMENT 7 ( Energy Resource Planning . 2000 Grand Slree' P.O, Box H Alameda, CA 94501·0263 Bob Kazlauskas City of Santa Clara Attn:Eleclric Department 1500 Warburton Ave Santa Clara, CA 95050 Bkazlauskas@svpower,com 40&-615-6688 Fax: 408-261-271.7 Section B. STATUS OF NCPA; FACILITIES AND EQUIPMENT 8.1 Independent Contractor, At all times during the term of this Agreement, NCpA shall be an independent contractor and shall not be an employee of Contracting Members. Contracting Members shall have the right to control NCPA only insofar as the results of NCPA'SServicas rendered pursuant to this Agreement and assignment of personnel pursuant to Section 3.4; however, otherwise Contracting Members.shall not have the right to control the means by which NCPA accomplishes services rendered pursuant 10 this Agreement Notwithstanding any other agency, state, local or federal policy, rule, regulation, law, or ordinance to the·conlrary, NCPA and any of Its employees, agents, and subcontractors providing Services under this Agreement shall not qualify for or become entitled to, and hereby agree 10 waive any and all claims to, any compensation, benefit, or any incident of employment by Contracting Members, including bul not limited to eligibility to enreilin the California Public Employees Retirement System (PERS) as an employee of eontracling Member and entitlement to any contribution to be paid by Contracting Members for employer contributions andlor employee contributions for PERS benefits, 8.2 Facilities and Equipment The 'facilities and equipment that may be necessary to perform the SerVices required by this Agreement shall be provided as follows: None. Section 9,UNCONTROLLABLE FORCES 9.1 Obligations of the Parties, other than those to pay money when due, shall be excused for so long as and to the extent that failure to perform such obligations is due to an Uncontrollable Force; provided, however, that if eitherParty is unable to perform due to an Uncontrollable Force, such Party shall exercise due dlllgenGll to remcve such inability with reasonable dispatch. Nothing contained in this Agreement shall be construed as requiring a Party to settle any strike, lockout, or labor dispute in which It may be involved, or to accept any permit, certificate, contract, or any other service agreement or authorization necessary for the performance of this Agreement which contains terms and conditions which a Party determines In its good faith judgment are unduly burdensome or otherwise unacceptable. 8 BAMx PROPB8SrONAL SERVICES AGREEMENT 9.2 Each Party shall notify the other promptly, by telephone to the other Party's operatlng personnel and Authorized Representative identified In Section 3.2, upon becoming aware of any Uncontrollable Force which rT)ay adversely affect the performance under this Agreement. A Party shall additionally provide written notice In accordance with Sectlon 12.8 to the other Party wllhin 24 hours after providing. Each Party shall notify the other promplly, when an Uncontrollable Force has been remedied or no longer exists. Section 10. t.:EGAl REQUIREMENTS 10.1 Governing Law. The laws of the Slate of Califomia shall govem this Agreement, . wHhout regard for the choice of law doctrine. 10.2 Compliance with Applicable laws.' NCPA and any subcontractors shall comply with all laws applicable to the performance of the Services hereunder. 10.3 Other Governmental Regulations. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, NCPA and any subcontractors shall comply with all applicable rules and regulatIOns to which Contracting Member is bound by the terms of such fiscal assistance program. . 10.4 Licenses and Permits. NCPA represents and warrants to Contrllcting Member that NCPA and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that is legally required to practice their respective professions. NCPA represents and warrants tQ Contracting Member that NCPA and its employees, agents, any subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits,and approvals tha1.are legally required to practice their respective professions. 10.5 NondisCrjmination and Equal Opportunity. NCPA shall not diSCriminate, on the basis of a person's race, religion, color, national origin, age, physical or mental. handicap or disab16ty, medical condition, marital status, sex, or sexual orientation, against any employee, applicant lor employment, subcontractor, bidder for a subcontract, or participant In, recipient of, or . applicant for any services or programs provided by NCPA under this Agreement. NCPA shall comply with all applicable federal, state, and local laws, policies, I1)les, and requirements related to equal opportunity and nondiscrimination in employment, contracting, and the provision 01 any services that are the subject of this Agreement, including but not limited to the satisfaction of any· positive obligations required of NCPA thereby. . NCPA shall include the provisions of this Subsection in any subcontract approved by Contracting Members' Contract Administrator or this Agreement. Section 11. KEEPING AND STATUS OF RECQRDS. 11,1 Records Created as Part of NCPA's Performance. All reports, data, maps, models, 9 BAM>< PROFESSIONAL SIiRVICllS AGRBJjMENT charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that NCPA prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the Contracting Members. NCPA hereby agrees to deliver those documents to the Contracting Members upon termination of the Agreement. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for the Contractillg Members and are not necessarily suitable for any future or other use, Contracting Members and NCPA agree that, unfit final approval by Contracting Members, all data, plans, specifications, reports and other documents are confidential and will not be released to third parties without prior written consent of both Parties, except as may otherwise be required by applicable law. ' 11.2 NCPA's Books and Records. NCPA shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or expendHures and disbursements charged to the Contracting Members under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to the NCPA to this Agreement. . 11.3 Inspection and Audit of Records. Any records or documents that Section 12.2 of this Agreement requires NCPA to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours. upon oral or written request of the Contracting Member. Under California Govemment Code Section 8546.7, If the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), the Agreement shall be subject to the examination and audit of the State Auditor, at the request of any Contracting Member or as part of any audH of any of the Contracting Members, for a period of three (3) years after final payment under the Agreement. 11.4 Confidential Information and Disclosure. During the term of this Agreement, any party ("Disclosing Partyj may disclose confidential, proprietary or trade secret information (the "Information"), to the another party ("Receiving Party'). All such Information made available in a tangible medIum of expression (such as, without limitation, on paper or by means of magnetic tapes, magnetic disks or other computer media) shall be marked in a prominent location to indicate that it is the confidential, proprietary and trade secret information of Disclosing Party at the time of disciosure to Receiving Party, Receiving Party shall hold Disclosing Party's Information in confidence and shall take all reasonable steps to prevent any unauthorized possession, use, copying, transfer or disclosure of such Information. Receiving Party shall not attempt to reverse engineer or inany manner create any product or information which is similar in appearance to or b~ed on the Information provided by Disclosing Party. Receiving Party shall not disclose Disclosing Party's Infoon(ltionto any person other than Receiving Party's employees, agents, contractors and subcontractors whe have a need to know in connection with this Agreement. Receiving party's confidentiality obligations hereunder shall nol apply to any portion of Disclosing Party's Infonnatlon which: (a) Has become amatler of public knowledge other than through an act or omission of Receiving Party; (b) Has been made known to, Receiving Party by a third party In 10 BAM. PROFESSIONAL SERVICES AORIlEMENT . i I .. ". accordance with such third party's legal lights without any restriction on disclosure; (c) Was in the possession of Receiving Party prforto the disclosure of such Information by Disclosing Party and was not acquired directly or Indirectly from the other party or any penson or entity in a relationship of trust and confidence with the other party with respect to such Information; (d) Receiving Party Is required by law to disclose; or (e) Has been independently developed by Receiving Party from Information not defined as "Information" in this Agreement. as evidenced by Receiving Party's written records. Receiving Party shall return or destroy Disclosing Party's Information (including all . copies thereoQ to Disclosing Party promptly upon the earliest of any termination of this Agreement or the Disclosing Party's written request. Notwithstanding the foregoing, Receiving Party mey retain one copy of such Information solely for archival purposes, subject to the confidentiality proviSions of this Agreement The parties understand that each party is a public entity and is subject to the laws that may compel either to disclose information about the other's business. Section 12. MISCELLANEOUS PROVISIONS 12.1 Atlomeys' Fees. If a Party to this Agreement brings any action, Including an action for declaratory relief, to enforce or interpret the provisions of this Agreement, the prevailing Party shall be entitled to reasonable attorneys' fees in addition to any other relief to which that Party may be entitled. The court may set such fees In the same action or in a separate action brought foOha! purpose. 12.2 Venue. In the event that either party brings any action against the other under this Agreement, the Parties agree that mal of such action shall be vested exclusively in the state courts of California in the County of Placer or in the United States District Court for the Eastern District of California . 12.3 Severability. If any provision of this Agreement shall be determined by a court of competent jurisdiction to be Invalid, void Of unenforceable, or If any provision of this Agreement Is rendered invalid or unenforceable by federal orstate statute' or regulation, but the remaining portions of the Agreement can be enforced without failure of mateilal consideration to any Party, then the remaining provisions shall continue in full force and effect. To that end, this Agreement is declared to be severable. Provided, however, that in the event any provision is declared to be invalid, void or unenforceable, any Party may terminate this Agreement upon 10 days written notice given within fIVe (5) days of receipt of nolice of final entry of judgment. 12.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement. 12.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the Parties. 12.6 Use of Recycled Products. NCPA shall endeavor to prepare and submit all reports, written studies and other printed material on recycled pap~r to the extent it !s aveilable at equal or 11 BAMx PROFBSSIONAL SERVICES AGREEMENT . less cost than virgin paper. 12.7 Conffkt of Interest. NCPA shall not employ any ContracHng Members' official Dr employee in the work performed pursuant to this Agreement. No olflCer or employee of Contracting Member shall have any financial interest In this Agreement that would violate California Government Code Sections 1000 et seq. 12.8 Notices. Unless this Agreement requires otherwise, any notice, demand or request provided for in this Agreement, or served, given or made shall become effecllve When delivered in person, or sent by registered or certified first class mail, to the persons specified below: Donna Stevener Assistant General Manager -Adminlstrallve Services Northern California Power Agency 651 Commerce Drive Roseville, CA 95676 . With a copy to: Michael F. Dean General Counsel, Northern California Power Agency cro MeyerS Nave 555 Capitol Mall, Suite 1200 Sacramento, CA 95814 Debra Lloyd Valerie Fang City of Palo Alto P.O. Box 10250 Palo Alto, CA 94303 With a copy to: City of Palo Alto Attn: City Attorneys office P.O. Box 10250 Palo Alto, CA 94303 Girish Balachandran, General Manager Brad Wetstone Alameda Municipal Power 2000 Grand Street P.O. Box H Alameda. CA 94501-0263 With a copy to: Farimah Faiz BAM>< PROFliSSIONAL SBRVlCBS AGREEMENT 12 Alameda Office of the City AttorrleY 2263 Santa Clara Avenue, Room 280 Alameda, CA 94501 City of Santa Clara Attn: Electric Department 1500 Warburton Ave Santa Clara, CA 95050 With a copy to: City of Santa Clara Attn: City Attorneys office 1500 Warburton Ave Santa Clara, CA 95050 Whenever it Is required, permitted, or desired In this Agreement that written no~ce or demand be given by any Party to any other Party, such notice or demand may be either personally served or sent by United States Mail, or facsimile. Notice shall be deemed to have been given when personally served, when deposited in the United States Mall, certified or registered with postage prepaid and properly addressed, or when transmitted by facsimile provided however. notices delivered by facsimile shall only be effectlve if delivered during regular business hours on a day. that is considered a regular business day for NCPA by the involved Parties, 12,9 Integration; Inoorporation. This Agreement. including all the exhibits attached hereto, represents the entire and integrated agreement between Contracting Members and NCPA relating to the subject matter of this Agreement. and supersedes all prior negotiations. representations, or agreements, either written or oral. All exhibits attached hereto are inoorporated by reference herein, 12.10 Dispute Resolution, If any dispute arises between the Parties that cannot be settled after engaging in good faith negotiations. Contracting Members and NCPA agree to resolve the dispute In acoordance with the following: 12.10,1 Each Party shall designate a senior management or executive level representative to negotiate any dispute; 12.10,2 The representatives shall attempt. through gqod faith negotiations. to resolve the dispute by any means within their authonty. 12.10,3 If the Issue remains unresolved after sixty (60) days of good faith negotiations, despite having used their best efforts to do so, eithe~ Party may pursue whatever other remedies may be available to it. 12.10.4 This informal resolution process Is not intended to nor shall be oonstrued to change the time periods for filing a claim or action specified by Govemment Code § 900. et seq. 13 BM/!< PROPESSIONAl. SBRVlCES AGRliEMI!NT 12.11 Other Agreements. This Agreement is not intended 10 modify or change any other agreement between any of the Parties, indiVidually or collectively. 12.12 Counterparts, This Agreement rpay be executed in muHlple counterparts, each of which shall be an original and all of which together shall constitute one agreement. . 12.13 Obligations of Contracting Members Jolfltand Several; No Joint Venture. The duties, obligations and liabilities of the Contracting Members, including the obligations 10 make payments to NCPA, are intended to be joint and several. Provided that nothing contained in this Agreement shall be construed to create an association, trust, partnership or joint venture or to impose a trust or partnership duly, obligation or liability on or with regard to the Contracting Members. 12.14 Effect of Section Headings. Section headings and subheadings appearing in this Agreement are inserted for convenience only and shall not be Construed as interpretation of text. 12.15 Authority of Signatories. The signatories hereby represent that they have been appropriately authorized to execute this Agreement on behalf of the Party for whom they sign. 12.16 Amendmenls. The Parties may amend this Agreement only by a writing signed by all the Parties following each Party's receipt of writlen resolution/authorIzation from their governing bodies, which resolutions/authorizations shall be condition precedents to any amendments of this Agreement and shall be attached as exhibits to this Agreement. The Parntls have executed this Agreement as of Ibe Effective Date. Northern California Power Agency JAMES H. POPE, General Manager Atlest: Assistant Secretary the Commission Approved as to Form: General Counsel 14 BAM. PROFESSIONAL SERVICES AOREIlMEN'l' CONTRACTING MEMBERS: CITY OF ALAMEDA By: ________ _ I!s: ---------- CITY OF PALO ALTO By: __ -,-______ _ Its: ----------------- CITY OF SANTA CLARA By: Its: ---'---------------- llAMx PRQFBSSIONAL SIlRVIClIS AGREEiMENT Approved as to Form: By:~,...-:-:.,--_____ _ . City Attorney Approved as to Form: By:----:c:---:-----,------City Attorney \ Approved as to Form 8y:--,-_______ _ City Attorney 15 EXHIBIT A Scope of Services NCPA shall perform the following Services on behalf Contracting Members: A. NCPA will enter into a contract with Flynn Consulting ('Consultant") on behalf of Contracting Members, In general Consultant will provide services including monitoring. meeting participation, coordinating with affected or other participating parties, and, as necessary, preparing and submitting formal position submittals for the following activities: 1. Grid Planning Activities • CAISO/PG&E annual transmission expansion planning process • Support or oppose specific transmission additions ~ Greater Bay Area, SF Peninsula and Oakland long term studies • CAISO local capacity lachnical study process • Other regional and sub-regional transmission planning activities • CAISO Planning BPM Change Management Process • Transmission cost allocation • Reliabmty impacts from Once-Through Cooling (OTC) plant retirements • Transmission.for renewables • . CTPG planning process • Tracy to'Bay development activities 2, CPUC and CEC transmission matters' • Integrated Energy Policy Report • Strategic transmission investment plan • Resource adequacy Issues 3. California Market Design ActiVITies • CAISO markets, proceedings and implementation matters • Resource Adequacy I Local Capacity/ Dellverabllity . . • LMP congestion and losses incidence and impacts '4. Western Area Power Administration Activities • Western customer meetings and issues • SMUDJWestern balancing authority area footprint, performance and allocation of costs and effort • Western Transmission Development • Western Transmission Infrastructure Program 5. Communicate Regularly with BAMx Members • CHent meetings, telephone conferences and written summaries of activities on key issues, B, NCPA will accept invoices from ConSUltant and transmit them to Contracting Members for 16 BAMx PROFESSlONAL SERVICIlS AGREEMENT ! i , . , . their review, and if acceptable, the Contraeling Members will direct payment by NCPA. NCPA will prepare invoices indicating the share of Consultant's costs to be paid by each Contracting Member along with the appropriate charges by NCPA for its services; however, as provided in the Agreement, each Contracting Member is Jointly and severally liable for the entirety of any amounts billed under this Agreement NCPA will then pay· Consultant utilizing Contracting Members' funds. C. Contracting Members will be solely responsible for payment of the Consultant's invoices, as well as determining whether or not the professional services have been satisfactorily performed. The "Services" under this Agreement by NCPA to Contracting Members are limited to the contracting for services with Consultant and billing/payment function. c. 17 BAM>< PROFESSIONAL SI!RVICES AOREEMENT EXHIBITB COMPENSATION SCHEDULE AND HOURLY FEES Compensation for alilasks, including hourly fees and expenses, shall nol exceed $757,500, The hourly and monthly rates and or compensation break down and an estimated amount of expenses is as follows: ' . 8-1 Monthly Charges for Services provided by NCPA for billing and contract preparation ' under this Agreement shall be alloCated to each BAMx Participant In proportion to each BAMx Particlpanfs proportionate share of energy delivered In CY2009 as derived from the 2010-2011 NCPA Annual Budget Document, Page 1J..3 and as reffected Table 1 below. The total charge for these services shall be SiX-Hundred-Twenty-Five Dollars, per month. B-2 Monthly Charges invoiced by Flynn Recources Conultents Inc to NCPA for services provided to the BAMx Participants under the CONSULTING SERVICES AGREEMENT BETWEEN THe NORTHERN CALIFORNIA POWER AGENCY AND FLYNN RESOURCE CONSULTANTS INC., dated July 1, 2010 shall be alloceted to each BAMx Participant in proportion to each BAMx Participanfs proportionate share of energy delivered in CY2009 as derived from the 2010-2011 NCPA Annual Budget Document. Page 1J..3 and as reflected Table 1 below, Compensation to Flynn Resource Consultants Inc. for all tasks, Including hourly fees and expenses, shall not exceed Seven-Hundred and Fifty Thousand Dollars ($750,000). The hourly rates and or compensation break down ilnd an estimated amount of expenses is esfollows: . Flynn Resource ConSUltants Inc. hourly rates for services are listed below. Labor Categoty Principal Senior ConsuHant Consultant Associate Consultant Analyst Support Services HourlyRala $240-285 per hour $190-240 per hour $160-190 per hour $130-160 per hour $ 80-130 per hour $55 per hour Travel, food, and miscellaneous expenses, except automobile mileage, associated with Ihe provision of services hereunder shall be billed at cost. Automobile mileage will be billed at the rate approved by the InternaLRevenue Service TABLE 1 Proportionate Share of Energy Delivered Alameda Municipal Power Palo Alto llAMJ< PR01'ESSlONAL SERVICllS AOIUlEM6NT 18 MWH 402,641 1,013,782 % Share 9.251% 23.293% I I · Silicon Valley Power BAN'.x PROFESSIONAL SERVlCES AGRB!!MENT 19 67.456% 4,352,376 100.000% EXHIBITC Insurance MaintaIned by NCPA WORKERS' COMPENSATION INSURANCE EXCESS LIABIUTY INSURANCE AUTOMOBILE INSURANCE ERRORS & OMISSIONS INSURANCE 1424737.1 20 BAM. PROFBSStONAL SBRVICllS ACll!.EEMBNT $1,000,000 $35,000,000 $1,000,000 ~ $10,000,000 CONSULTING SERVICES AGREEMENT BETWEEN THE NORTHERN CALIFORNIA POWER AGENCY AND Flynn Resource Consultants Inc, ATIACHMENT C This agreementfor consulting services ('Agreemenf) is entered into on July 1, 2010 (the "Effective Date") between the NORTHERN CALIFORN IA POWER AGENCY. a public joint powers agency, with offices located at 651 Commerce Drive, Roseville, CA, 9567&-6420 ("Agency") and Flynn Resource . Consultants Inc., ("Consultanf) (together sometimes referred to as the "Parties"). Section 1. SERVICES. In accordance with the terms and conditions set forth in this Agreement, Consultanfagrees to perform all services described In the Scope of Work attached as Exhibit A. In the event of a conflict in or Inconsistency between the terms of this Agreement and Exhibit A, this Agreement shail prevail. ' 1.1 Term of ServIces. This Agreement shallbagin on the Effective Date and shall end when ConsuRant completes the work described in ExhibH A, or on June 30. 2011, which ever is shorter, unless the term of !lie Agreement Is otherwise terminated or modified, as provided for herein • . 1.2 Standard of Performance. Consultant shall diligently perform all services required In connection with this Agreement in the manner and according to the standards 'observed by a competent practitioner of the profession in which Consultant is engaged in the geographical area in which Consultant practices its profession. 1.3. Assignment of Personnel. Consultant shall assign only competent personnel to perform services in connection with this Agreement. 1.4 Termination. Agency may cancel this Agreement, alter consultation with BAMx representatives as defined by Exhibit A, at any time and without cause upon written notification to Consultant In the event of termination, Consultant shall be entiHed to compensation for services satisfactorily completed as of the date of written notice of termination; Agency, however, may condition payment of such compensation upon Consultant delivering to Agency documents and records Identified In Section 8.1 of this Agreement. . Section 2. COMPENSATION. Agency hereby agress to pay Consultant an amount NOT TO EXCEED Seven-Hundred and Fifty Thousand Dollars ($750,000) for all work set forth In Exhibit A, in accordance with the Consultant's fee schedule and reimbursable expenses which is attached as Exhibit B, and made a part of this Agreement. In the event of a conflict between this Agreement and Consullanfs proposal reg arding the amount of compensalion, this Agreement shall preVail. 2.1 Invoices. Consultant shall submit invoices once a month during the term of this Agreemant, based on the cost for services performed and reimbursable costs Incurred prior to the invoice date to: Northern CaHfornla Power Agency 651 Commerce Drive Roseville, Califomia 95678 Atln: Accounts Payable 2.2 Payment. Agency shall make monthly payments, based on invoices received, for services satisfactortly performed, and for authorized reimburSable costs incurred. 2.3 Hourly Fees I Reimbursable Expenses, If applicable, fees for work performed by Consultant on an hourly basis shall not exceed the amounts shown oil the fee schedule attached to this Agreement as Exhibit B.· Reimbursable expenses are specified In Exhibit f!. 2.4 Payment of Taxes. Consultant is solely responsible for the payment of employment taxes incurred under this Agreement and any similar federal or state taxes. Section 3. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement Consultant, at its own cost and expense, shall procure the types and amounts of Insurance listed below for . the period covered by the Agreement. 3.1 Workers' Compensation. If Consultant employs any person, Consultant shall maintain Statulofy Workers' Compensation Insurance and Employer's liability Insurance for any and all persons employed directly or Indirectly by Consultant with limits of no! less than ONE MILLION DOLLARS ($1,000,000.00) per acoid.ent. 3,2 Commercial General and Automobile Liability Insurance. 3.2.1 Commercial General Insurance. Consultant shall maintain commercial general liability Insurance for the term of this Agreement, including products liability, covering any loss or liability, including the cost of defense of any action for bodily injury, death, personal Injury and properly damage which may arise out of tlhe operations of the consultant. The policy sha!1 provide a minimum limit of $1,000,000 per occurrenceJ$2,Ooo,OOO aggregate. 3,2.2 . Automobile Liability. Consultant shall maintain automobile liability Insurance for the term of this Agreement covering any loss of liability, Including the cost of . defense of any action, arising Ifom the operation, maintenance or use of any vehicle whether or not owned by the Consultant, on or off Agency premises. The . policy shall provide a minimum limit of $1,000,000 per each accident. This insurance shall provide contractual liability covering all motor vehicles and mobile equipment to tlhe extent coverage may be excluded from general liability insurance. 3.2.3 General Uabl/ity/Umbrella Coverage, The coverage amounts set forth above may be met by a combination of underlying and umbrella policies so long as in combination the limits equal or exceed those stated. 3.3 Professional Llabilitv Insurance. If Consultant performs design work pursuant to this Agreement, Consultant shall maintain professionalliabUlty Insurance for licensed professionals performing design work in connection with this Agreement in an amount not less than One Million Dollars ($1,000,000.00) covering tlhe licensed professionals' errors and omissions. Any deductible or self-insured retention shall not exceed Two Hundred Filly-Thousand Dollars ($250,000.00) per claim. Consulting Services Agreement between NORTHERN CALIFORNIA POWER AGENCY and Flynn Resource Consultants Inc. Page20f 10 .. . , .! 3.4 All Policies Requirements. 3.4.1 Verification of Coverage. Prior to beginning any work under this Agreement, Consultant shall, at the sale option of the Agency, provide Agency with (1) Certification of Insurance that demonstrates compliance with all applicable insurance provisions contained herein; (2) policy endoll!ements to the general liability policy adding the Northem California Power Agency as an Additional Insured and declatlng such insurance prlmary In regard to work performed pUrsuant to this Agreement; or (3) upon request by the Agency, complete copies of all poliCies and/Qr complete copies of all endorsements that demonstrate compliance with this Section 3. 3.4.2 Notice of Redu~lon In or Cancellation of Coverage. A certified endorsement must be attached 10 all insurance obtained in acoordance with this Agreement stating that coverage shall not be canceled, except after thirty (30) days' prior written noUCe by certifted mall, return receipt requested, has been given to the Agency. Consunant shall also provide thirty (30) days' prior notice to the Agency by certified mail of any impending reduction in the limits or coverage of any insurance policies that forrn a part of this agreement. 3.5 Waiver of Subrogation. Consultant agrees to waive subrogation which any insurer of Consultant may acquire from Consultant by virtue of the payment of any loss. ConsunBnt agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation. The Workers' Compensation policy shall be endorsed with a waiver of subrogation In favor of Agency for all work performed by Consultant, its employees, agents .and subcontractors. Section 4. INDEMNIFICATION AND CONSULTANT'S RESPONSIBILITIES. 4,1 Consultant shall to the fullesfextent allowed by law, with respect to all services'perforrned in connection with this Agreement, indemnify, defend and hold harrnless the Agency and its officials, commissioners, officers, employees, agents and volunteers from and against . any and all claims that arise out of, pertain to or relate to the negligence, recklessness or willful misconduct of the Consultant. . Consultant will bear alllos5es, costs, damages, expense and liability of every kind, nature and description that arise out of, pertain to, or . relate to such Claims, whether directly or indirectly ('LiabiU!ies"). Such obligations to defend, hold harrnless and indemnity the Agency shall not apply to the extent that such Liabilities are caused by the sole negligence, active negligence, or willful misconduct of the Agency .. Section 5. STATUS OF CONSULTANT, 5.1 Independent Contractor. At all times during the term of this Agreemen~ Consultant shall be an independent contraclor and shall not be an employee of Agency. Consultant shall have no authority, express or Implied. to aot on behalf of Agency in any capacity whatsoever as an agent. ConsulHng ServIces Agreement between NORTHERN CALIFORNIA POWER AGENCY and Flynn Resource Consullanls Inc. Page 3 of 10 Section 6. LEGAL REQUIREMENTS. 6.1 Governing Law. The laws of the State of Califomia shall govern this Agreement. 6.2 Compliance with Applicable Laws. Cons.Ultant and any subconlractors shall comply with alllaw$ applicable to the performance of the work in connection with this Agreement. •• ~< • 6.3 Licenses and Permits. Consultant represents and warrants to Agency that Consultant and its employees, agents,and any subcontractors have ali licenses, permits, qualifications, and apprQvals of whatsoeVer nature that are legally required to practice their respective professions. 6.4 Nondiscrimination and Equal Opportunity, In compliance with federal, state and local laws, Consultant shall not discriminate, on the basis of a person's raoe, religion, color, national origin, age, physical or mental handicap or disability, medical condition, marital status, sex, or sexual orientation, against any employee, applicant for employment, subcontractor, bidder for a subcontract or participant in, recipient of, or applicant for any services or programs provided by Consultant under this Agreement. Section 7. MODIFICATION. 7.1 Amendments. The Parties may amend this Agreement only by a writing signed by all the Parties, and after consultation with BAMx representatives as defined by Exhibit A 7.2 Assignment and Subcontracting. Consultant may not assign this Agreement or any interest therein without the prior written approvel of the Agency. ConSUltant shall not subcontract any portion of the performance contemplated aix! provided for herein, other than to the SUbcontractors noted in the proposal, without prior written approval of the Agency. 7.3 . Survival. All obligations arising prior to the terminaflon of this Agreement and all provisions of this Agreement allocating liability between Agency and ConSUltant shall survive the termination of this Agreement. 7.4 Options upon Breach by Consultant. If Consultant malerially breaches any of the lerms of this Agreement, Agency's remedies shall Include, but not be IimilOO to, the following: Section 8. 8.1 7.4.1 Immediately terminate the Agreement; 7.4.2 Retain the plans, specifications, drawings, reports, design documents, and any other wcrk product prepared by Consultant in accordance with this Agreement; KEEPING AND STATUS OF RECORDS. Records Created as Part of Consultant's Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans. studies, specifications, records, files, or any other documents or materials, In electronic or any other form, that Consultlng Services Agreement between NORTHERN CALIFORNIA POWER AGENCY and Flynn Resouroe Consuitanjs Inc. Page 4 of 10 Consultant prepares or obtains In accordance with this Agreement and that relate to the matters covered under the terms of t~ls Agreement shall be lIIe prop,erty of the Agency, 8.2 Consultant's Books and Records. ConSUltant shall maintain any and all records or documents evidencing or relating to charges for services or expenditures and disbursements charged to lIIe Agency under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to the Consultant to this Agreement. 8.3 Confldentrallnformation and Disclosure. During the term of this Agreement, efther party (the "Disclosing Party'') may disclose confidential, proplietary (lr trede secret information (the "Information"), to the other party (the "Receiving Party"). the Receiving Party shall hold the Disclosing Party's Information in cpnfidence and shall take all reasonable steps 10 prevent any unauthorized possession, use, copying, transfer or . disclosure of such Informqtion. Consultant understands that the Agency is a public agency and is subject to the laws that may compel it to disclose information about Consultant's business. Section 9 MISCELLANEOUSPROYISIONS. 9.1 Attorneys' Fees. If a party to this Agreement brings any action, including an acHon for declaratory relief, 10 enforce or interpret the provision of this Agreement the prevailing party shall be entitled to reasonable attomeys' fees in addition to any other relief to which that party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose. 9.2 Venue. In the event that either party brings any action against the other under this Agreement, the Parties agree thai trial of such action shall be vested exclusively in the state courts of California in the County of Placer or in the United Stales Distrlct Court for the Eastem District of California. 9.3 Severabllitv; If a court of competenljurlsdlclion finds or rules that any provision of this Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so adjudged shall remain in full force and effect. 9.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement. . 9.5 Contract Administration. This Agreement shall be administered by Donna Stevener, Assistant General Manager· Administrative Services, who shall act as the Agency's representative. All correspondence shall be directed to or through the representative. 9.S Notices. Any written notice to Consultant shall be sent to: Flynn Resource Consultants Inc. ' , 5440 Edgeview Drive Discovery Bay, CA 94505·9278 Attn: Doug Boccignone Consulting S\lrvlces Agreement between NORTHERN CALIFORNIA POWER AGENCY and Flynn Resource Consu1tants Inc. Page 5 of 10 My written notice to Agency shall be sent to: James H. Pope General Manager Northern California Power Agency 651 Commerce Drive Roseville, CA 95678 With a copy to: Michael F. Dean General Counsel Northern California Power Agency Meyers Nave 555 Capitol Mall, Suite 1200 Sacramento, CA 95614 9.7 Professional Seal. Where applicable in the determination of the Agency, the first page of a technical report, first page of design specifications, and each page of construction . drawings shall be stampedfsealed and signed by the licensed professional responsible for the report/design preparation. 9.8 Integration; Incorporation. This Agreement, including all the Exhibits attached hereto,· represents the entire and integrated agreement between Agency and Consultant and supersedes all prior negotiations, representations, or agreements, either written or oral. All Exhibits attached hereto are incorporated by reference herein. 9.9 Alternative Dispute Resolution. If any dispute arises between the Parties that cannot be settled after engaging in good faith negotiations, Agency and Consultant agree to resolve the dispute In accordance with the following: Each party will designate a senior management or executive level representative to negotiate the dispute. Through good faith negotiations, the representatives will attempt to resolve the dispute by any means within their authority, ~ dispute remains unresolved after fifteen (15) days of good faith negotiations, the Parties shall attempt to resolve the disagreement by mediation through a disinterested third person as mediator selected by both Parties, Mediation will begin within thirty (30) days of the selection of this disinterested third party, and will end fifteen (15) days after commencement. The Parties shall equally bear the costs of any third party In any alternative dispute resolution process. The alternative dispute resolution process Is a material condition to this Agreement and must be exhausted as an administrative remedy priorto either Party inft/ating legal action. This altematlve dispute resolution process is not Intended to nor shall be construed to change the time periods for filing a claim or action speoified by Government Code § 900, et. seq. ConsulUng Services Agreement between NORTHERN CAUFORNIA POWER AGENCY and Flynn RellQurce Consultants Inc. Page 6011Q 9.10 Counterparts: This Agreement may pe executed in multiple counterpartS, each of which shall be an original and all of which together shall constitute one agreement. . The Parties have executed this Agreement as of the date signed by the Agency. NORTHERN CALIFORNIA POWER AGENCY Date: _______ _ JAMES H. POPE, General Manager Attest: Assistant Secretary of the Commission Approved as to Fonm: General Counsel Consulting Services Agreement 1le1ween . Date: CONSULTANT DOUG BOCCIGNONE, Chief Financial OffIcer NORTHERN CALIFORNIA POWER AGENCY and Flynn Resource Consultants Inc. Page7ofl0 EXHIBIT A SCOPE OF SERVICES EXHIBIT A BAY AREA MUNICIPAL UTILITIES (BAMx) SCOPE OF SERVICES FOR FY2011 . NCPA is entering into this agreement with Flynn Resource Consultants, Inc. (Flynn RCI) at the requeslof the cities of Alameda, Palo Alto and Santa Clare (the BAMx members), so that NCPA may assist the BAMx members in securing ·professional consulting services related to electric transmission, power generation, regulatory issues, and electric market design issues affecting the BAMx members, NCPA's provision of related billing services is further addressed in the Professional Services Agreement Belween Northern California Power Agency and the Cities of Alameda, Palo Alto end Santa Clara (the "Bay Area Municipal Transmission Services Agreement' or "BAMx Agreement), ·Each 8AMx member shall be represented by a BAMx Representative, listed below, The 8AMx Representatives shall designate a member to be their primary representative for purposes of approving InvoiCes. The Designated 8AMx Representative will also coordinate, as necessary, work related communications, task orders and Invoice matters between and among the 8AMx participants and ConSUltant. 8AMx Representatives: Brad Wetstone, Alameda Municipal Power Debbie Lloyd, City of Palo Alto Utilities Ken Sims, Silicon Valley Power The 8AMx Representatives and Flynn RCI inland to pursue the activities listed below during Fiscal Year 2011, Such activities will Include monitoring, meeting participation, coordinating with affected or other participating parties, and, as necessary, preparing and submitting formal position submittals. 1. Grid Planning Activities • CAISOIPG&E annual transmission expansion planning process • Support or oppose specific transmission additions • Greater Bay Area, SF Peninsula and Oakland long term stUdies • CAISO local capacity technical study process • Other regional and sub-regional transmission planning activities • CAISO Planning BPM Change Management Process • Trensmission cost allocation • Reliability Impacts from Once-Through Cooling (OTC) plant retirements • Transmission for renewables • CTPG planning process • Tracy to 8ay development activities Consuiting Services Agreement between NORTHERN CALIFORNIA POWER AGENCY and.flynn Resource CO!Isultants Inc, Page B of 10 2, CPUC and CEC transmission matters • Integrated Energy Policy Report • Strategic transmission investment plan • Resource edequacy issues ' 3, California Market Design Activities • CAIBO markets proceedings and implementation matters • Resource Adequacy! Local Capacity! Deliverabmty • LMP congestion and losses incidence and impacts 4. Western Area Power Administr~'iion ActivHies • Western customer meeUngs and issues • SMUDlWestem balancing authority area footprint. performance and allocation of costs and effort • Western Transmission Development· • Western Transmission Infrastruoture Program ,5, Communicate Regularly with BAMx Members • Client meetings, telephone oonferences and Written summaries of activlties on key issues. Conaulftlll1 Services Agreement between NORTHERN CALIFORNIA POWER AGENCY and Flynn ReBouroe Consultants Inc. Page 90f10 EXHIBITS COMPENSA liON SCHEDULE AND HOURLY FEES Compensation for all tasks, including hourly fees and eXpenses, shall not exceed Seven-Hundred and Fifty Thousand Dollars ($750,000). The hourly rates and or compensation break down and an estimated amount of expenses is as follows: Flynn RCI hourly rates for the professional selVices are listed below. Labor Categorv Principal Senior Consultant Consultant Associate Consultant Analyst Support SelVices Hoyrlv Rate $240-285 per hour $190-240 per hour $16Q-190 per hour $130-160 per hour $ 80-130 per hour $ 55 per hour Prior to implementing an Increese within the Hourly Rate range for any Labor Category, Flynn RCI shall provide written notice to the BAMx Representatives of such change. Travel, food, and miscellaneous expenses, except automobile mileage, associated with the provision of selVices hereunder shall be. billed at cost. Automobile mileage will be billed at the rate approved by the Internal Revenue Service. ,For any month in which specialized modeling software is used to perform services under this agreement, the following charges shall apply: Power flow modeling -$225lmonth Short circuit modeling -$700/monlh OAS IS Data" $9OO/month Market modeling -$3,500/month . 'Specialized softWare costs that exceed the above amounts may be billed with the prior approval of the Designated BAMx Representative . . NOTE: As a public agency, NCPA shall not reimburse Consultant for cosls in excess of those permitted by the Internal Revenue Service, Consulting Services Agreement between r' ,NORTHERN CAliFORNIA POWER AGENCY and Flynn Resource Consultants Inc. Page 100f 10 ! : TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: UTILITIES DATE: JUNE 21, 2010 CMR: 271:10 REPORT TYPE: CONSENT SUBJECT: Approval of a Utilities Enterprise Fund Contract with K. J. Woods Construction Inc. in the Amount of $1,848,000 for Sanitary Sewer Rehabilitation Capital Improvement Program Project WC-08012 (Project 21-Barron Park, Alma, Baylands) RECOMMENDATION Staff recommends that Council approve and authorize the City Manager to execute the attached contract with K. J. Woods Construction Inc. (Attachment A) in a not to exceed amount of $1,848,000 for the Sanitary Sewer Rehabilitation Capital Improvement Program Project 21 (WWC Project 21). Staff also recommends that Council approve and authorize the City Manager or his designee to negotiate and execute one or more change orders to the contract with K. J. Woods Construction Inc. for related, additional but unforeseen work which may develop during the project, the total value of which shall not exceed $184,800. BACKGROUND This project is a part of the Utilities' plan to address areas that were identified in the Wastewater Capital Improvement Project 17: Cleaning and Video Inspection of the Collection System. The planned arcas were prioritized based on system defects, the 2004 Wastewater Master Plan, Public Works 'Target Work Zones' (TWZ), and the goals of the Sanitary Sewer Management Plan. TWZs are identified areas where utility work will precede needed street maintenance on a regional basis. The work covered under this contract is primarily located in the Barron Park TWZ (see Attachment C). Staff coordinated this project to identify conflicts v.ith other underground facilities and found that the water and gas utility systems do not plan any activity in this area within the next 5 years. This work will be complete prior to any planned paving activity in the construction area. Upon approval of this contract staff will send the affected customers notification of the planned activities. In addition, contract specifications require 7 day and 24 hour notice to affected customers. StaIT will provide regular updates to the community on current progress and schedules. DISCUSSION Project Description Ibe work to be performed under the eontract is for the replacement of approximately 22,083 linear feet of sanitary sewer mains of various sizes, 63 sewer manholes, and 380 sewer serviee CMR: 271 :10 Page 1 of3 laterals. The project is primarily located in the Barron Park area with some of the work in non- contiguous areas along a part of Alma and by the Baylands Ranger Station and Baylands Interpretive Center. The size of this project significantly exceeds our in-house resources making it necessary to contract out the work. S ar of Bid Process Bid NamelNumber • Proposed Length of Project Pro' ect 21 Sanitary Sewer RehabilitationJl",35",7c.:1:::3 __ .. _-l 330 calendar da 's ! Number of Bids Mailed to 12 I Contractors ! ... _. II Number of Bids Mailed to Builder's 6 !I Exchanges ! Total Days to Respond to Bid 21 ! Pre-Bid Meeting? Yes (Mandatory) . Number of Company Attendees at . 8 ~PJ:e-Bid Meeting ! Number of Bids Received: 3* Bid Price Range From a low of $1 ,848,000 to a high 0[$2,395,598 *Bld summary provided m Attachment B. Staff has reviewed all bids submitted and recommends that the bid of $1,848,000 submitted by K. J. Woods Construction, Inc. be accepted and that K. J. Woods Construction, Inc. be declared the lowest responsible bidder. The bid is 12 percent below the engineer's estimated low end of the range $2,100,000. The reason that the bids received are significantly below the engineer's estimate is that the rapid downturn in the economy has reduced the number of projects available to contractors. This has forced contractors to compete in a highly competitive market place. Contractors are extending bids for work at or near cost to keep their workforces employed. The engineer's estimated price was higher than the bids received because it was based on historical pricing in previous contracts and the budget prepared in the previous year. At the end of the project, any remaining budget funds will be returned to the Wastewater Fund reserves. The change order amount of $184,800, which equals 10 percent of the total contract, is requested for unforeseen, additional work that may develop during the project. Staff confirmed with the Contractor's State License Board that the contractor has an active license on file. Staff checked references supplied by the contractor for previous work performed and found no significant complaints. RESOURCE IMPACT Funds for this project are available in the Wastewater Collection Funds Capital Improvement Program budgets WC-08012 (Project 21) and WC-07004 (project 20). POLICY IMPLICATIONS This recommendation is consistent with the Council approved Utilities Strategic Plan Key Strategy #2, "invest in utility infrastructure to deliver reliable service." CMR: 271:10 Page 2 of3 I ! Ii I! ENVIRONMENTAL REVIEW This project is categorically exempt from Califomia Environmental Quality Act (CEQA) pursuant to CEQA Guideline Sections 15301 (b) repair, maintenance of existing facilities and 15302 ( c) replacement or reconstruction of existing facilities. ATTACHMENTS A: Contract B: Bid Summary C. Project 21 Location Map PREPARED BY: DEPARTMENT HEAD: CITY MANAGER APPROVAL; CMR: 271:10 , ROBERT ITEM, Project Engineer -S f,~ EDWARD WU, Senior Project Engineer~, GREG SCOBY, WGW Engineering Manage~",ff'y!l TOMM MARSHALL, Assistant Director Util. E'~JJ'1 ~r2p/~Cf' O. ONG I' Director of Utilities ~~;/t&yL ,AMES KEENE . (JtyManager .~~~-... Page 3 of3 .• ' .. ' '" ".1 .. ' .. ATTACHtVlENT A CONSTRUCTION CONTRACT Contract No. C10135713 City of Palo Alto and K.J. Woods Construction, Inc. PROJECT PROJECT 21 -Sanitary Sewer Rehabilitation Rev. February 1, 2010 SECTION 1. CONSTRUCTION CONTRACT TABLE OF CONTENTS INCORPORATION OF RECITALS AND DEFINITIONS ..........•..........•.......••..... 1 1.1 Recitals •••••••••••••......••••••.•••••••....•..•.......•.•••••••••••..••...••••.•.....••........•.•..•.••••••••••••••.•...............• 1 1.2 Definitions ........................................................................................................................... 1 SECTION 2. THE PROJECT ................................................................................................... 1 SECTION 3, THE CONTRACT DOCUMENTS ....................................................................... 1 LIST OF DOCUMENTS .................................................................................................................... 1 3.2 ORDER OF PRECEDENCE ............................................................................... 2 SECTION 4. THE WORK ........................................................................................................ 2 SECTION 5. PROJECT TEAM ................................................................................................ 2 SECTION 6. TIME OF COMPLETION .................................................................................... 2 6.1 Time Is of Essence ............................................................................................................. 3 6.2 Commencement of Work ................................................................................................... 3 6.3 Contract Time ..................................................................................................................... 3 6.4 Liquidated Damages .......................................................................................................... 3 6.4.1 Entltlement.. ................................................................................................................. 3 6.4.2 Dally Amount ............................................................................................................... 3 6.4.3 Exclusive Remedy ....................................................................................................... 3 6.4.4 Other Remedies .......................................................................................................... 3 6.5 Adjustments to Contract Time .......................................................................................... 3 SECTION 7. COMPENSATION TO CONTRACTOR .............................................................. 3 7.1 Contract Sum ...................................................................................................................... 3 7.2 Full Compensation ................................................................................................ , ............ 4 7.3 Compensation for Extra or Deleted Work ........................................................................ 4 7.3.1 Self Performed Work ................................................................................................... 4 7.3.2 Subcontractors ............................................................................................................ 4 Rev. February 1. 2010 IFB Construclion Contract Template February 1. 2010.DOC SECTION 8. STANDARD OF CARE ....................................................................................... 4 SECTION 9. INDEMNIFICATION ............................................................................................ 4 9.1 Hold Harmless .................................................................................................................... 4 9.2 Survival ............................................................................................................................... 5 SECTION 10 NONDISCRIMINATION ...................................................................................... 5 SECTION 11. INSURANCE AND BONDS ................................................................................ 5 SECTION 12. PROHIBITION AGAINST TRANSFERS ............................................................ 5 SECTION 13. NOTiCES ............................................................................................................ 6 13.1 Method of Notice ................................................................................................................ 6 13.2 Notice Recipients ............................................................................................................... 6 13.3 Change of Address ............................................................................................................ 6 14.1 Resolution of Contract Disputes ...................................................................................... 7 14.2 Resolution of Other Disputes ........................................................................................... 7 14.2.1 Non-Contract Disputes ................................................................................................ 7 14.2.2 Litigation, City Election ................................................................................................. 7 14.3 Submission of Contract Dispute ...................................................................................... 7 14.3.1 By Contractor ............................................................................................................... 7 14.3.2 By City .......................................................................................................................... 8 14.4 Contract Dispute Resolution Process .............................................................................. 8 14.4.1 Direct Negotiations ...................................................................................................... 8 14.4.2 Deferral of Contract Disputes ...................................................................................... 8 14.4.3 Mediation ..................................................................................................................... 9 14.4.4 Binding Arbitration ....................................................................................................... 9 14.5 Non-Waiver ....................................................................................................................... 10 SECTION 15. DEFAULT ......................................................................................................... 10 15.1 Notice of Default ............................................................................................................... 10 15.2 Opportunity to Cure Default ............................................................................................ 10 SECTION 16. CITY'S RIGHTS AND REMEDIES ................................................................... 11 16.1 Remedies Upon Default ................................................................................................... 11 16.1.1 Delete Certain Services ............................................................................................. 11 16.1.2 Perform and Withhold ................................................................................................ 11 ij I FB ConstrUction Contract Template February 1, 2010.DOC Rev. February 1. 2010 16.1.3 16.1.4 16.1.5 16.1.6 Suspend The Construction Contract .................................. , .......................... : ........... 11 Terminate the Construction Contract for Default.. ..................................................... 11 Invoke the Performance Bond ................................................................................... 11 Additional Provisions ................................................................................................. 11 16.2 Delays by Sureties ........................................................................................................... 12 16.3 Damages to City ............................................................................................................... 12 16.3.1 For Contractor's Default ............................................................................................ 12 16.3.2 Compensation for Losses .......................................................................................... 12 16.5 Suspension by City for Convenience ............................................................................. 12 16.6 Termination Without Cause ............................................................................................ 12 16.6.1 Compensation ........................................................................................................... 12 16.6.2 Subcontractors .......................................................................................................... 13 16.7 Contractor's Duties Upon Termination .......................................................................... 13 SECTION 17. CONTRACTOR'S RIGHTS AND REMEDIES .................................................. 13 17.1 Contractor's Remedies .................................................................................................... 13 17.1.1 For Work Stoppage ................................................................................................... 14 17.1.2. For City's Non-Payment... .......................................................................................... 14 17.2 Damages to Contractor ................................................................................................... 14 SECTION 18. ACCOUNTING RECORDS ............................................................................... 14 18.1 Financial Management and City Access ........................................................................ 14 18.2 Compliance with City Requests ...................................................................................... 14 SECTION 19. INDEPENDENT PARTIES ................................................................................ 14 SECTION 20. NUISANCE ....................................................................................................... 14 SECTION 21. PERMITS AND LICENSES .............................................................................. 15 SECTION 22. WAIVER ............................................................................................................ 15 SECTION 23 GOVERNING LAW ........................................................................................... 15 SECTION 24 COMPLETE AGREEMENT .............................................................................. 15 SECTION 25 SURVIVAL OF CONTRACT ............................................................................. 15 SECTION 26 PREVAILING WAGES ...................................................................................... 15 iii Rev. February 1, 2010 IFB Construction ContractTemplate February 1. 2010.DOC SECTION 27 SECTION 28 SECTION 29 SECTION 30 NON APPROPRIATION ................................................................................... 15 GOVERNMENTAL POWERS .......................................................................... 15 ATTORNEY FEES ............................................................................................ 16 SEVERABILITY ................................................................................................ 16 iv Rev. February 1, 2010 IFB Construction Contract Template February 1, 2010.DOC CONSTRUCTION CONTRACT THIS CONSTRUCTION CONTRACT entered into on June 21,2010 ("Execution Date") by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("City"), and K.J. WOODS CONSTRUCTION, INC. ("Contractor"), is made with reference to the following: R E C IT ALS: A. City is a municipal corporation duly organized and validly existing under the laws olthe State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. Contractor is a corporation duly organized and in good standing in the State of California, Contractor's License Number 701797. Contractor represents that it is duly licensed by the State of California and has the background, knowledge, experience and expertise to perform the obligations set forth in this Construction Contract. C. On April 27, 2010, City issued an Invitation for Bids (IFB) to contractors for the Project 21 -Sanitary Sewer Rehabilitation ("Project"). In response to the IFB, Contractor submitted a bid. D. City and Contractor desire to enter into this Construction Contract for the Project, and other services as identified in the Bid Documents for the Project upon the following terms and conditions. NOW THEREFORE, in consideration of the mutual promises and undertakings hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is mutually agreed by and between the undersigned parties as follows: SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS. 1.1 Recitals. All of the recitals are incorporated herein by reference. 1.2 Definitions. Capitalized terms shall have the meanings set forth in this Construction Contract and/or in the General Conditions. If there is a conflict between the definitions in this Construction Contract and in the General Conditions, the definitions in this Construction Contract shall prevail. SECTION 2 THE PROJECT. The Project is the construction of the Project 21 -Sanitary Sewer Rehabilitation ("Project"). SECTION 3 THE CONTRACT DOCUMENTS. 3.1 List of Documents. The Contract Documents (sometimes collectively referred to as "Agreement" or "Bid Documents") consist of the following documents which are on file with the Purchasing Division and are hereby incorporated by reference. 1) Change Orders 2) Field Change Orders 3) Contract 4) Project Plans and Drawings 5) Technical Specifications Rev. February 1, 2010 IF8 Construction Contract Template February 1, 2010.DOC 6) Special Provisions 7) Notice Inviting Bids 8) Instructions to Bidders 9) General Conditions 10) Bidding Addenda 11) Invitation for Bids 12) Contractor's Bid/Non-Collusion Affidavit 13) Reports listed in the Bidding Documents 14) Public Works Department's Standard Drawings and SpeCifications dated 2007 and updated from time to time 15) Utilities Department's Water, Gas, Wastewater, Electric Utilities Standards dated 2005 and updated from time to time 16) City of Palo Alto Traffic Control Requirements 17) City of Palo Alto Truck Route Map and Regulations 18) Notice Inviting Pre-Qualification Statements, Pre-Qualification Statement, and Pre- Qualification Checklist (If applicable) 19) Performance and Payment Bonds 20) Insurance Forms 3.2 Order of Precedence. For the purposes of construing, interpreting and resolving inconsistencies between and among the provisions of this Contract, the Contract Documents shall have the order of precedence as set forth in the preceding section. If a claimed Inconsistency cannot be resolved through the order of precedence, the City shall have the sole power to decide which document or provision shall govern as may be in the best interests of the City. SECTION 4 THE WORK. The Work includes all labor, materials, equipment, services, permits, fees, licenses and taxes, and all other things necessary for Contractor to perform its obligations and complete the Project, including, without limitation, any Changes approved by City, in accordance with the Contract Documents and all Applicable Code Requirements. SECTION 5 PROJECT TEAM. In addition to Contractor, City has retained, or may retain, consultants and contractors to provide profeSSional and technical consultation for the design and construction of the Project. The Project requ ires that Contractor operate efficiently, effectively and cooperatively with City as well as all other members of the Project Team and other contractors retained by City to construct other portions of the Project. SECTION 6 TIME OF COMPLETION. 2 Rev. February 1, 2010 6.1 Time Is of Essence. Time is of the essence with respect to all time limits set forth in the Contract Documents. 6.2 Commencement of Work. Contractor shall commence the Work on the date specified in City's Notice to Proceed. 6.3 Contract Time. Work hereunder shall begin on the date specified on the City's Notice to Proceed and shall be completed D not later than [2!:] within Three Hundred Thirty calendar days (330) after the commencement date specified in City's Notice to Proceed. 6.4 Liquidated Damages. 6.4.1 Entitlement. City and Contractor acknowledge and agree that if Contractor fails to fully and satisfactorily complete the Work within the Contract Time. City will suffer. as a result of Contractor's failure, substantial damages which are both extremely difficult and impracticable to ascertain. Such damages may include, but are not limited to: (i) Loss of public confidence in City and its contractors and conSUltants. (Ii) Loss of public use of public facilities. (iii) Extended disruption to public. 6.4.2 Dally Amount. City and Contractor have reasonably endeavored, but failed. to ascertain the actual damage that City will incur if Contractor fails to achieve Substantial Completion of the entire Work within the Contract Time. Therefore, the parties agree that in addition to all other damages to which City may be entitled other than delay damages, in the event Contractor shall fail to achieve Substantial Completion of the entire Work within the Contract Time, Contractor shall pay City as liquidated damages the amount of $500 per day for each Day occurring after the expiration of the Contract Time until Contractor achieves Substantial Completion of the entire Work. The liquidated damages amount is not a penalty but considered to be a reasonable estimate of the amount of damages City will suffer by delay in completion of the Work. 6.4.3 Exclusive Remedy. City and Contractor acknowledge and agree that this liquidated damages provision shall be City's only remedy for delay damages caused by Contractor's failure to achieve Substantial Completion of the entire Work within the Contract Time. 6.4.4 Other Remedies. City is enlHled to any and all available legal and equitable remedies City may have where City's Losses are caused by any reason other than Contractor's failure to achieve Substantial Completion of the entire Work within the Contract Time. 6.5 Adjustments to Contract Time. The Contract Time may only be adjusted for time extensions approved by City and agreed to by Change Order executed by City and Contractor in accordance with the requirements of the Contract Documents. SECTION 7 COMPENSATION TO CONTRACTOR. 7.1 Contract Sum. Contractor shall be compensated for satisfactory completion of the Work in compliance with the Contract Documents the Contract Sum of One Million Eight Hundred Forty Eight Thousand Dollars ($1 ,848,000). 3 Rev. February 1, 2010 7.2 Full Compensation. The Contract Sum shall be full compensation to Contractor for all Work provided by Contractor and, except as otherwise expressly permitted by the terms of the Contract Documents. shall cover all Losses arising out of the nature of the Work or from the acts of the elements or any unforeseen difficulties or obstructions which may arise or be encountered in performance of the Work until its Acceptance by City. all risks connected with the Work, and any and all expenses incurred due to suspension or discontinuance of the Work. The Contract Sum may only be adjusted for Change Orders issued, executed and satisfactorily performed in accordance with the requirements of the Contract Documents. 7.3 Compensation for Extra or Deleted Work. The Contract Sum shall be adjusted (either by addition or credH) for Changes in the Work involving Extra Work or Deleted Work based on one or more of the following methods to be selected by City: 1. Unit prices stated in the Contract Documents or agreed upon by City and Contractor, which unit prices shall be deemed to include Contractor Markup and Subcontractor/Sub-subcontractor Markups permitted by this Section. 2. A lump sum agreed upon by City and Contractor, based on the estimated Allowable Costs and Contractor Markup and Subcontractor Markup computed in accordance with this Section. 3. Contractor's Allowable Costs, plus Contractor Markup and Subcontractor Markups applicable to such Extra Work computed in accordance with this Section. Contractor Markup and Subcontractor/Sub-subcontractor Markups set forth herein are the full amount of compensation to be added for Extra Work or to be subtracted for Deleted Work that is attributable to overhead (direct and indirect) and profit of Contractor and of its Subcontractors and Sub-subcontractors, of every Tier. When using this payment methodology. Contractor Markup and Subcontractor/Sub-subcontractor Markups. which shall not be compounded. shall be computed as follows: 7.3.1 Markup Self·Performed Work. 10% of the Allowable Costs for that portion of the Extra Work or Deleted Work to be perform ed by Contractor with its own forces. 7.3.2 Markup for Work Performed by Subcontractors. 15% of the Allowable Costs for that portion of the Extra Work or Deleted Work to be performed by a first Tier Subcontractor. SECTION 8 STANDARD OF CARE. Contractor agrees that the Work shall be performed by qualified. experienced and well-suparvised personnel. All services performed in connection with this Construction Contract shall be performed in a manner consistent wHh the standard of care under California law applicable to those who specialize in providing such services for projects of the type; scope and complexity of the Project. SECTION 9 INDEMNIFICATION. 9.1 Hold Harmless. To the fullest extent allowed by law. Contractor will defend, indemnifY. and hold harmless City, its City CounCil, boards and commissions, officers. agents. employees. representatives and volunteers (hereinafter collectively referred to as "Indemniteas"j, through legal counsel acceptable to City, from and against any and all Losses ariSing directly or indirectly from. or in any manner relating to any of. the following: (i) Performance or nonperformance of the Work by Contractor or its Subcontractors or Sub-subcontractors, of any tier; 4 Rev. February 1, 2010 IFB Conslruction ConlTactTemplate Fobruary 1. 2010.DOC (ij) Performance or nonperformance by Contractor or its Subcontractors or Sub- subcontractors of any tier, of any of the obligations under the Contract Documents; (iii) The construction activities of Contractor or Hs Subcontractors or Sub-subcontractors, of any tier, either on the SHe or on other properties; (iv) The payment or nonpayment by Contractor to any of its employees, Subcontractors or Sub-subcontractors of any tier, for Work performed on or off the Site for the Project; and (v) Any personal injury, property damage or economic loss to third persons associated with the performance or nonperformance by Contractor or its Subcontractors or Sub- subcontractors of any tier, of the Work. However, nothing herein shall obligate Contractor to indemnify any Indemnitee for Losses resulting from the sole or active negligence or willful misconduct of the Indemnitee. Contractor shall pay City for any costs City incurs to enforce this provision. Nothing in the Contract Documents shall be construed to give rise to any implied right of indemnity in favor of Contractor against City or any other Indemnitee. 9.2 Survival. The provisions of Section 9 shall survive the term ination of this Construction Contract. SECTION 10 NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, Contractor certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. Contractor 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 will comply with all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 11 INSURANCE AND BONDS. On or before the EXecution Date, Contractor shall provide City with evidence that it has obtained insurance and Performance and Payment Bonds satisfying all requirements in Article 11 olthe General Conditions. Failure to do so shall be deemed a material breach of this Construction Contract SECTION 12 PROHIBITION AGAINST TRANSFERS. City is entering into this Construction Contract based upon the stated experience and qualifications of the Contractor and its subcontractors set forth in Contractor's Bid. Accordingly, Contractor shall not assign, hypothecate or transfer this Construction Contract or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any assignment, hypothecation or transfer without said consent shall be null and void. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor or of any general partner or joint venturer or syndicate member of Contractor, if the Contractor is a partnership or joint venture or syndicate or co-tenancy shall result in changing the control of Contractor, shall be construed as an assignment of this Construction Contract Control means more than fifty percent (50%) of the voting power of the corporation or other entity. 5 Rev. February 1, 2010 SECTION 13 NOTICES. 13.1 Method of Notice. All notices, demands, requests or approvals to be given under this Construction Contracl shall be given in wriling and shall be deemed served on Ihe earlier of Ihe following: (i) On the dale delivered if delivered personally; (ii) On Ihe third business day afler the deposillhereof in Ihe Uniled Siaies mail, poslage prepaid, and addressed as hereinafler provided; (iii) On the dale sen I if sent by facsimile Iransmission; (Iv) On the dale sen I if delivered by electronic mail; or (iv) On Ihe dale il is accepled or rejecled if senl by certified mail. 13.2 !,!otice Recipients. All nolices, demands or requests (including, wilhoullim ilation, Claims) from Conlraclor to Cily shall include Ihe Projecl name and the number of Ihis Conslruclion Conlracl and shall be addressed to Cily al: To Cily: Copylo:D Cily of Palo Allo Cily Clerk 250 Hamillon Avenue P.O. Box 10250 Palo Allo, CA 94303 Cily of Palo Allo Public Works Adminislration 250 Hamillon Avenue Palo Alto, CA 94301 Alln: Or Cily of Palo Allo Ulililies Engineering 1007 Elwell Court Palo Allo, CA 94303 Alln: Edward W u In add ilion, copies of all Claims by Conlraclor under Ihis Conslruclion Conlracl shall be provided 10 Ihe following: Palo Allo Cily Atlorney's Office 250 Hamillon Avenue P.O. Box 10250 Palo Allo, California 94303 All Claims shall be delivered personally or sent by certified mail. All nolices, demands, requests or approvals from Cily 10 Conlraclor shall be addressed 10: Edward Wu 13.3 Change of Address. In Ihe event of any change of address, Ihe moving parly shall nolify Ihe olher party of Ihe change of address in writing. Each party may, by wrillen notice only, add, delele or replace any individuals 10 whom and addresses to which notice shall be provided. 6 Rev. February.1, 2010 \ SECTION 14 DISPUTE RESOLUTION. 14.1 Resolution of Contract Disputes. Contract Disputes shall be resolved by the parties in accordance with the provisions of this Section 14, in lieu of any and all rights under the law that either party have its rights adjudged by a trial court or jury. All Contract Disputes shall be subject to the Contract Dispute Resolution Process set forth in this Section 14, which shall be the exclusive recourse of Contractor and City for such Contract Disputes. 14.2 Resolution of Other Disputes. 14.2.1 Non-Contract Disputes. Contract Disputes shall not include any of the following: (i) Penalties or forfeitures prescribed by statute or regulation imposed by a governmental agency; (Ii) Third party tort claims for personal injury, property damage or death relating to any Work performed by Contractor or its Subcontractors or Sub- subcontractors of any tier; (iii) False claims liability under California Government Code Section 12650, et. seq.; (Iv) Defects in the Work first discovered by City after Final Payment by City to Contractor; (v) Stop notices; or (vi) The right of City to specific performance or injunctive relief to compel performance of any provision of the Contract Documents. 14.2.2 Litigation, City Election. Matters that do not constitute Contract Disputes shall be resolved by way of an action filed in the Superior Court of the State of California, County of Santa Clara, and shall .not be subject to the Contract Dispute Resolution Process. However, the City reserves the right, in its sole and absolute discretion, to treat such disputes as Contract Disputes. Upon written notice by City of its elaction as provided in the preceding sentence, such dispute shall be submitted by the parties and finally decided pursuant to the Contract Dispute Resolution Process in the manner as required for Contract Disputes, including, without limitation, City's right under Paragraph 14.4.2 to defer resolution and final determination until after Final Completion of the Work. 14.3 Submission of Contract Dispute. 14.3.1 By Contractor. Contractors may commence the Contract Dispute Resolution Process upon City's written response denying all or part of a Claim pursuant to Paragraph 4.2.9 or 4.2.1 0 of the General Conditions. Contractor shall submit a written Statement of Contract Dispute (as set forth below) to City within seven (7) Days after City rejects all or a portion of Contractor's Claim. Failure by Contractor to submit its Statement of Contract Dispute in a timely manner shall result in City's decision by City on the Claim becoming final and binding. Contractor's Statement of Contract Dispute shall be signed under penalty of perjury and shall state with specificity the events or circumstances giving rise to the Contract Dispute, the dates of their occurrence and the asserted effect on the Contract Sum and the Contract Time. The Statement of Contract Dispute shall include adequate supporting data to substantiate the disputed Claim. Adequate supporting data for a Contract Dispute relating to an adjustment of the Contract Time shall include both of the following: (I) All of the scheduling data required to be submitted by Contractor under the Contract Documents to obtain extensions of time and adjustments to the Contract Time and (ii) A detailed, event-by-event description of the impact of each event on completion of Work. Adequate data to support a Statement of Contract 7 Rev. February 1. 2010 Dispute involving an adjustment of the Contract Sum must include both of the following: (a) A detailed cost breakdown and (b) Supporting cost data in such form and including such information and other supporting data as required under the Contract Documents for submission of Change Order Requests and Claims. 14.3.2 By City. City's right to commence the Contract Dispute Resolution Process shall arise at any time following City's actual discovery of the circumstances giving rise to the Contract Dispute. City asserts Contract Disputes in response to a Contract Dispute asserted by Contractor. A Statement of Contract Dispute submitted by City shall state the events or circumstances giving rise to the Contract Dispute, the dates of their occurrence and the damages or other relief claimed by City as a result of such events. 14.4 Contract Dispute Resolution Process. The parties shall utilize each of the following steps in the Contract Dispute Resolution Process in the sequence they appear below; Each party shall participate fully and in good faith in each step in the Contract Dispute Resolution Process, and good faith effort shall be a condition precedent to the right of each party to proceed to the next step in the process. 14.4.1 Direct Negotiations. Designated representatives of City ana Contractor shall meet as soon as possible (but not later than ten (10) Days after receipt ofthe Statement of Contract Dispute) in a good faith effort to negotiate a resolution to the Contract Dispute. Each party shall be represented in such negotiations by an authorized representative with full knowledge of the details of the Claims or defenses being asserted by such party in the negotiations, and with full authority to resolve such Contract Dispute then and there, subject only to City's obligation to obtain administrative and/or City Council approval of any agreed settlement or resolution. If the Contract Dispute involves the assertion of a right or claim by a Subcontractor or Sub-subcontractor, of any tier, against Contractor that is in turn being asserted by Contractor against City ("Pass- Through Claim"), then the Subcontractor or Sub-Subcontractor shall also have a representative attend the negotiations, with the same authority and knowledge as described above. Upon completion of the meeting, if the Contract Dispute is not resolved, the parties may either continue the negotiations or any party may declare negotiations ended. All discussions that occur during such negotiations and all documents prepared solely for the purpose of such negotiations shall be confidential and privileged pursuant to California Evidence Code Sections 1119 and 1152. 14.4.2 Deferral of Contract Disputes. Following the completion of the negotiations required by Paragraph 14.4.1, all unresolved Contract Disputes shall be deferred pending Final Completion of the Project, subject to City's right, in its sole and absolute discretion, to require that the Contract Dispute Resolution Process proceed prior to Final Completion. All Contract Disputes that have been deferred until Final Completion shall be consolidated within a reasonable time after Final Completion and thereafter pursued to resolution pursuant to this Contract Dispute Resolution Process. The parties can continue informal negotiations of Contract Disputes; provided, however, that such informal negotiations shall not be alter the provisions of the Agreement deferring final determination and resolution of unresolved Contract Disputes until after Final Completion. 8 Rev. February 1, 2010 14.4.3 Mediation. If the Contract Dispute remains unresolved after negotiations pursuant to Paragraph 14.4.1, the parties shall submit the Contract Dispute to non-binding mediation before a mutually acceptable third party mediator . . 1 Qualifications of Mediator. The parties shall endeavor to select a mediator who is a retired judge or an attorney with at leastfive (5) years of experience in public works construction contract law and in mediating public works construction disputes. In addition, the mediator shall have at least twenty (20) hours of formal training in mediation skills . . 2 Submission to Mediation and Selection of Mediator. The party initiating mediation of a Contract Dispute shall provide written notice to the other party of its decision to mediate. In the event the parties are unable to agree upon a mediator within fifteen (15) Days after the receipt of such written notice, then the parties shall submit the matter to the American Arbitration Association (AAA) at its San Francisco Regional Office for selection of a mediator in accordance with the AAA Construction Industry Mediation Rules . • 3 Mediation Process. The location of the mediation shall be at the offices of City. The costs of mediation shall be shared equally by both parties. The mediator shall provide an independent assessment on the merits of the Contract Dispute and recommendations for resolution. All discussions that occur during the mediation and all documents prepared solely for the purpose of the mediation shall be confidential and privileged pursuant to California Evidence Code Sections 1119 and 1152. 14.4.4 Binding Arbitration. If the Contract Dispute is not resolved by mediation, then any party may submit the Contract Dispute for final and binding arbitration pursuant to the provisions of California Public Contract Code Sections 10240, et seq. The award of the arbitrator therein shall be final and may be entered as a judgment by any court of competent jurisdiction. Such arbitration shall be conducted In accordance with the following: .1 Arbitration Initiation. The arbitration shall be initiated by filing a complaint in arbitration in accordance with the regulations promulgated pursuant to California Public Contract Code Section 10240.5 . . 2 Qualifications of the Arbitrator. The arbitrator shall be approved by all parties. The arbitrator shall be a retired judge or an attorney with at least five (5) years of experience In public works construction contract law and in arbitrating public works construction disputes. In addition, the arbitrator shall have at least twenty (20) hours of formal training in arbitration skills. In the event the parties cannot agree upon an arbitrator. the provisions of Cali fomi a Public Contract Code Section 10240.3 shall be followed in selecting an arbitrator possessing the qualifications required herein . . 3 Hearing Days and Location. Arbitration hearings shall be held at the offices of City and shall. except for good cause shown to and determined by the arbitrator. be conducted on consecutive business days, without Interruption or continuance . . 4 Hearing Delays. Arbitration hearings shall not be delayed except upon good cause shown. 9 Rev. February 1, 2010 .5 Recording Hearings. All hearings to receive evidence shall be recorded by a certified stenographic reporter, with the costs thereof borne equally by City and Contractor and allocated by the arbitrator in the final award . . 6 limitation of Depositions. The parties may conduct discovery in accordance with the provisions of section 10240.11 of the Public Contract Code; provided, however, that depositions shall be limited to both of the following: (0 Ten (1 0) percipient witnesses for each party and 5 expert witnesses per party. Upon a showing of good cause, the arbitrator may increase the number of permitted depositions. An individual who is both percipient and expert shall, for purposes of applying the foregoing numerical limitation only, be deemed an expert. Expert reports shall be exchanged prior to receipt of evidence, in accordance with the direction of the arbitrator, and expert reports (including initial and rebuttal reports) not so submitted shall not be admissible as evidence . • 7 Authority of the Arbitrator. The arbitrator shall have the authority to hear dispositive motions and issue interim orders and interim or executory awards . . 8 Waiver of Jury Trial. Contractor and City each voluntarily waives its right to a jury trial wHh respect to any Contract Dispute that is subject to binding arbitration in accordance with the provisions of this Paragraph 14.4.4. Contractor shall include this provision in its contracts with its Subcontractors who provide any portion of the Work. 14.5 Non-Waiver. Participation in the Contract Dispute Resolution Process shall not waive, release or compromise any defense of City, including, without limitation, any defense based on the assertion Ihatthe rights or Claims of Contractor that are the basis of a Contract Dispute were previously waived by Contractor due to Contractor's failure to comply with the Contract Documents, including, without limitation, Contractor's fiailure to comply with any time periods for providing notice of requests for adjustments of the Contract Sum or Contract Time or for submission of Claims or supporting documentation of Claims. SECTION 15 DEFAULT. 15.1 Notice of Default. In the eventthat City determines, in its sole discretion, that Contractor has failed or refused to perform any of the obligations set forth in the Contract Documents, or is in breach of any provision of the Contract Documents, City may give written notice of default to Contractor in the manner specified for the gMng of notices in the Construction Contract. 15.2 Opportunity to Cure Default. Except for emergencies, Contractor shall cure any defiault in performance of its obligations under the Contract Documents within two (2) Days (or such shorter time as City may reasonably require) after receipt of written notice. However, if the breach cannot be reasonably cured within such time, Contractor will commence to cure the breach wilhin two (2) Days (or such shorter time as City may reasonably require) and will diligently and continuously prosecute such cure to completion within a reasonable time, which shall In no event be later than ten (10) Days after receipt of such written notice. 10 Rev. February 1. 2010 SECTION 16 CITY'S RIGHTS AND REMEDIES. 16.1 Remedies Upon Default. If Contractor fails to cure any default of this Construction Contract within the time period set forth above in Section 15, then City may pursue any remedies available under law or equity, including, without limitation, the following: 16.1.1 Delete Certain. Services. City may, without terminating the Construction Contract, delete certain portions ofthe Work, reserving to itself all rights to Losses related thereto. 16.1.2 Perform and Withhold, City may, without terminating the Construction Contract, engage others to perform the Work or portion of the Work that has not been adequately performed by Contractor and withhold the cost thereof to City from future payments to Contractor, reserving to itself all rights to Losses related thereto. 16.1.3 Suspend The Construction Contract. City may, without terminating the Construction Contract and reserving to Hself all rights to Losses related thereto, suspend all or any portion of this Construction Contract for as long a period of time as City determines, in its sole discretion, appropriate, in which event City shall have no obligation to adjust the Contract Sum or Contract Time, and shall have no liability to Contractor for damages if City directs Contractor to resume Work. 16.1,4 Terminate the Construction Contract for Default. City shall have the right to terminate this Construction Contract, in whole or in part, upon the failure of Contractor to promptly cure any default as required by Section 15. City's election to terminate the Construction Contract for default shall be communicated by giving Contractor a written notice of termination in the manner specified for the giVing of notices in the Construction Contract. Any notice of termination given to Contractor by City shall be effective immediately, unless otherwise provided therein. 16.1.5 Invoke the Performance Bond. City may, with or without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, exercise its rights under the Performance Bond. 16.1.6 Additional Provisions. All of City's rights and remedies under this Construction Contract are cumulative, and shall be in addition to those rights and remedies available in law or in equity. Designation in the Contract Documents of certain breaches as material shall not waive the City's authority to designate other breaches as material nor limit City's right to terminate the Construction Contract, or prevent the City from terminating the Agreement for breaches that are not material. City's determination of whether there has been noncompliance with the Construction Contract so as to wanrant exercise by City of its rights and remedies for default under the Construction Contract, shall be binding on all parties. No termination or action taken by City after such termination shall prejudice any other rights or remedies of City provided by law or equity or by the Contract Documents upon such termination; and City may proceed against Contractor to recover aliliquidaled damages and Losses suffered by City. 11 Rev. Februa!)' 1, 2010 16.2 Delays by Sureties. Without limiting to any of City's other rights or remedies, City has the right to suspend the performance of the Work by Contractor's sureties in the event of any of the following: (i) The sureties' failure to begin Work wilhin a reasonable time in such manner as to insure full compliance with the Construction Contract within the Contract Time; (ii) The sureties' abandonment of the Work; (iii) If at any time Cily is of the opinion the sureties' Work is unnecessarily or unreasonably delaying the Work; (iv) The sureties' violation of any terms of the Construction Contract; (v) The sureties' failure to perfonm according to the Contract Documents; or (vi) The sureties' failure to follow City's instructions for completion of the Work within the Contract Time. 16.3 Damages to City. 16.3.1 For Contractor's Default. City will be entitled to recovery of all Losses under law or equity in the event of Contractor's default under the Contract Documents. 16.3.2 Compensation for Losses. In the event that City's Losses arise from Contractor's default under the Contract Documents, City shall be entitled to withhold monies otherwise payable to Contractor until Final Completion of the Project. If City incurs Losses due to Contractor's default, then the amount of Losses shall be deducted from the amounts withheld. Should the amount withheld exceed the amount deducted, the balance will be paid to Contractor or its designee upon Final Completion of the Project. If the Losses incurred by City exceed the amount withheld, Contractor shall be liable to City for the difference and shall promptly remit same to City. 16.4 Suspension by City for Convenience. City may, at any time and from time to time, without cause, order Contractor, in writing, to suspend, delay, or interrupt the Work in whole or in part for such period of time, up to an aggregate of fifty percent (50%) of the Contract Time. The order shall be specifically identified as a Suspension Order by Cily. Upon receipt of a Suspension Order, Contractor shall, at CiIy's expense, comply with the order and take all reasonable steps to minimize costs allocable to the Work covered by the Suspension Order. During the Suspension or extension of the Suspension, If any, City shall eHher cancel the Suspension Order or, by Change Order, delete the Work covered by the Suspension Order. If a Suspension Order is canceled or expires, Contractor shall resume and continue with the Work. A Change Order will be issued to cover any adjustments of the Contract Sum or the Contract Time necessarily caused by such suspension. A Suspension Order shall not be the exclusive method for Cily to stop the Work. 16.5 Termination Without Cause. City may, at its sole discretion and without cause, terminate this Construction Contract in part or in whole by giving thirty (30) Days written notice to Contractor. The compensation allowed under this Paragraph 16.5 shall be the Contractor's sole and exclusive oompensati.on for such termination and Contractor waives any claim for other compensation or Losses, including, but not limited to. loss of anticipated profits, loss of revenue, lost opportunny, or other consequential, direct, indirect or incidental damages of any kind resulting from termination without cause. 16.5.1 Compensation. Following such termination and within forty-five (45) Days after receipt of a billing from Contractor seeking payment of sums authorized by this Paragraph 16.5, City shall pay the following to Contractor as Contractor's sole compensation for perfonmance of the Work: 12 Rev. February 1,2010 .1 For Work Performed. The amount of the Contract Sum allocable to the portion of the Work properly performed by Contractor as of the date of termination, less sums previously paid to Contractor. .2 For .close-out Costs. Reasonable costs of Contractor and its Subcontractors and Sub-subcontractors for: (i) Demobilizing and (ii) Administering the close-out of its participation in the Project (including, without limitation, all billing and accounting functions, not including attorney or expert fees) for a period of no longer than thirty (30) Days after receipt of the notice of termination . . 3 For Fabricated Items. Previously unpaid cost of any items delivered to the Project Site which were fabricated for subsequent incorporation in the Work. 16.5.2 Subcontractors. Contractor shall include provisions in all of its subcontracts, purchase orders and other contracts permitting termination for convenience by Contractor on terms that are consistent with this Construction Contract and that afford no greater rights of recovery against Contractor than are afforded to Contractor against City under this Section. 16.6 Contractor's Duties Upon Termination. Upon receipt of a notice of termination for default or for convenience, Contractor shall, unless the notice directs otherwise, do the following: (i) Immediately discontinue the Work to the extent specified in the notice; (ii) Place no further orders or subcontracts for materials, equipment, services or facilities, except as may be necessary for completion of such portion of the Work that is not discontinued; (iii) Provide to City a description, in writing no later than fifteen (15) days after receipt of the notice of termination, of all subcontracts, purchase orders and contracts that are outstanding, including, without limitation, the terms of the original price, any changes, payments, balance owing, the status of the portion of the Work covered and a copy of the subcontract, purchase order or contract and any written changes, amendments or modifications thereto, together with such other Information as City may determine necessary in order to decide whether to accept assignment of or request Contractor to terminate the subcontract, purchase order or contract; (iv) Promptly assign to City those subcontracts, purchase orders or contracts, or portions thereof, that City elects to accept by assignment and cancel, on the most favorable terms reasonably possible, all subcontracts, purchase orders or contracts, or portions thereof, that City does not elect to accept by assignment; and (v) Thereafter do only such Work as may be necessary to preserve and protect Work already in progress and to protect materials, plants, and equipment on the. Project Site or in transit thereto. SECTION 17 CONTRACTOR'S RIGHTS AND REMEDIES. 17.1 Contractor's Remedies. Contractor may terminate this Construction Contract only upon the occurrence of one of the following: 13 Rev. February 1, 2010 17.1.1 For Work Stoppage. The Work is stopped for sixty (60) consecutive Days, through no act or fault of Contractor, any Subcontractor, or any employee or agent of Contractor or any Subcontractor, due to issuance of an order of a court or other public authority other than City having jurisdiction or due to an act of govemment, such as a declaration of a national emergency making material unavailable. This provision shall not apply to any work stoppage resulting from the City's issuance of a suspension notice issued either for cause or for convenience. 17.1.2 For City's Non-Payment. If City does not make pay Contractor undisputed sums within ninety (90) Days after receipt of notice from Contractor, Contractor maytenminate the Construction Contract (30) days following a second notice to City of Contractor's intention to terminate the Construction Contract. 17.2 Damages to Contractor. In the event of termination for cause by Contractor, City shall pay Contractor the sums provided for in Paragraph 16.5.1 above. Contractor agrees to accept such sums as its sale and exclusive compensation and agrees to waive any daim for other compensation or Losses, including, but not limited to, loss of antiCipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect and incidental damages, of any kind. SECTION 18 ACCOUNTING RECORDS. 18.1 Financial Management and City Access. Contractor shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management under this Construction Contract in accordance with generally accepted accounting prinCiples and practices. City and City's accountants during normal business hours, may inspect, audit and copy Contractor's records, books, estimates, take-offs, cost reports, ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to this Project. Contractor shall retain these documents for a period of three (3) years after the later of (i) final payment or (ii) final resolution of all Contract Disputes and other disputes, or (iii) for such longer period as may be required by law. 18.2 Compliance with City Requests. Contractor's compliance with any request by City pursuant to this Section 18 shall be a condition precedent to filing or maintenance of any legal action or proceeding by Contractor against City and to Contractor's right to receive further payments under the Contract Documents. City many enforce Contractor's obligation to provide access to City of its business and other records referred to in Section 18.1 for inspection or copying by issuance of a writ or a provisional or permanent mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such court, without the necessity of oral testimony. SECTION 19 INDEPENDENT PARTIES. Each party is acting in its independent capacity and not as agents, employees, partners, or joint venturers of the other party. City, its officers or employees shall have no control over the conduct of Contractor or Hs respective agents, employees, subconsultants, or subcontractors, except as herein set forth. SECTION 20 NUISANCE. Contractor shall not maintain, commit, nor permit the maintenance or commission of any nuisance in connection in the performance of services under this Construction Contract. 14 Rev. February 1,2010 SECTION 21 PERMITS AND LICENSES. Except as otherwise provided in the Special Provisions and Technical Specifications. The Contractor shall provide, procure and pay for all licenses, permits, and fees, required by the City or other government jurisdictions or agencies necessary to carry out and complete the Work. Payment of all costs and expenses for such licenses, permits, and fees shall be included in one or more Bid items. No other compensation shall be paid to the Contractor for these items or for delays caused by non-City inspectors or conditions set forth in the licenses or permits issued by other agencies. SECTION 22 WAIVER. A waiver by either party of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character. SECTION 23 GOVERNING LAW. This Construction Contract shall be construed in accordance with and governed by the laws of the State of California. SECTION 24 COMPLETE AGREEMENT. This Agreement represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This Agreement may be amended only by a written instrument, which is signed by the parties. SECTION 25 SURVIVAL OF CONTRACT. The provisions of the Construction Contract which by their nature survive termination of the Construction Contract or Final Completion, Including, without limitation, all warranties, Indemnities, payment obligations, and City's right to audit Contractor's books and records, shall remain in full force and effect after Final Completion or any termination of the Construction Contract. SECTION 26 PREVAILING WAGES. This Project is not subject to prevailing wages. The Contractor is not required to pay prevailing wages In the performance and Implementation of the Project, because the City, pursuant to its authority as a chartered city, has adopted Resolution No. 5981 exempting the City from prevailing wages. The City invokes the exemption from the state prevailing wage requirement fur this Project and declares that the Project is funded one hundred percent (100%) by the City of Palo Alto. SECTION 27 NON APPROPRIATION. This Agreement Is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that the City does not appropriate funds for the following fiscal year for this event. 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 Construction Contract are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition. or provision of this Agreement. SECTION 28 AUTHORITY. 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. 15 Rev. February 1. 2010 SECTION 29 ATTORNEY FEES. Each Party shall bear its own costs, including attorney's fees through the completion of mediation. If the claim or dispute is not resolved through mediation and in any dispute described In Paragraph 14.2, the prevailing party in any action brought to enforce the provision of this Agreement may recover its reasonable costs and attorney's 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 attorney's' fees paid to third parties. SECTION 30 SEVERABILITY. In case a provision of this Construction Contract is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not be affected. IN WITNESS WHEREOF, the parties have caused this Construction Contract to be executed the date and year first above written. CITY OF PALO ALTO K.J. WOODS CONSTRUCTION, INC. 8y: __________ _ City Manager Narne:,~ _________ _ APPROVED AS TO FORM: Title: _________ _ Senior Asst. City Attorney 16 Rev. February 1, 2010 Bid Summary PROJECT 21 SANITARY SEWER REHABILITATION IFB #135713 (Bid Open 5/18110) fA: I ATTACHMENT B IW.Woods O'Arcy & Harty Pacific '.' , Unll , ",',-" -+il ;t;F f,;;;;:-'~ $ 50.0r.' 1~ $ Itm ~ s 4. 1~1 3 "<lBIIl 'mRtnBPB , 51~t ~ $ 4 7: $ 389 . i··· .-:'iii . ;Ro; • • 1, --:-;r " .. = :::::§l ,l'M!?mil l8001 501 ;~. 24. I 11!!!1! 10.01 1.2001 1.4001 2,50{ ".0001", lO.Oe r== , 1ioOl 10hO,' nolll 1.5001 3.001 3.00e' 6. 6.5e ! I 0 "'rl"'~i."'. $ 607.81' $ 731.35: $ 753.28' GrandTOIaI Attachment "B" ATTACHMENT C r------------------------r--------~-- Los Robles Area J I ;£ ~ Duck Pond Area (f; ~ o.!8 @ ].::...~ -""""II'!'==~ c L PROJECT 21 LOCATION MAP NOT TO SCALE Grant request amounts must be between $25,000 and $7,000,000. Eligible projects are development, including construction and renovation, of nature education facilities, buildings, structures, and exhibit galleries that present collections to inspire and educate the pUblic. DISCUSSION Grant application 1 for Junior Museum & Zoo In 1934, Josephine O'Hara founded the Junior Museum in the Art Clubroom of the public Library and then the existing permanent building was constructed in 1941. The City renovated the JMZ again in 1969, adding the Zoo, a larger exhibit hall, art and clay and science classrooms which brought the total square footage of the museum to over 15,000. Today visitors to the JMZ enjoy 2,200-square feet of indoor exhibition space, offering hands-on opportunities for discovery that are uniquely tailored for our core audience of children, ages 0-9, and their caregivers. Exhibits provide concrete, multi-sensorial and kinesthetic learning experiences that spark curiosity about physics, earth science and the natural world. This project will renovate three public spaces in the JMZ with the grant funds. The project scope of work would include: • The production of a 1,400-square foot exhibit, called Curious by Nature within the existing footprint. This exhibition will display natural history collections and live animals with interactive exhibits. • The renovation of a 400-square foot outdoor exhibition, called Animal Homes, including repaving, construction of 2-3 small animal enclosures, an observation beehive, a wildlife garden, and a hands-on water exhibit. This is located in within the existing Zoo courtyard footprint. • Renovation of our Science Classroom, SOO-square feet, to become an Animal Program Space, including new animal housing enclosures, classroom facilities and updated storage. Within the Animal Program Space, structured classes and facilitated public floor programs will take place that let visitors interact with live animals and touch collection objects. The renovation of this classroom will enable us to house all of our animals used for teaching in a modem facility reflecting best practices in both design for informal learning and animal care. • Renovation of existing restrooms to bring them into ADA compliance. Construction of an additional ADA compliant woman's restroom. If the grant is awarded, the time line of the project is proposed to be: Phase 1, Jun. 2011 Open Curious by Nature exhibition (indoors) Phase 2, Dec. 2012 Open Animal Homes exhibition (outdoors III Zoo), Animal Program Space, and restrooms CMR:282: 10 Page 2 of 5 The budget request amount for this grant is currently estimated at $934,210. The final estimate will be determined by the grant deadline. Additional funds ($50,000) necessary to complete the project have been raised and will be provided by Friends of the Palo Alto Junior Museum & Zoo. These funds cover ineligible costs such as evaluation, exhibit consumables, software development and furniture. Grant application 2 for Lucy Evans Baylands Nature Interpretive Center The Lucy Evans Baylands Nature Center (LEBNC) was built in 1969. LEBNC is one of the first nature interpretive centers built next to San Francisco Bay. The 3,600-square foot building is part of the 1,600-acre Palo Alto Baylands Nature Preserve and within the 1,940-acre Palo Alto Baylands Open Space. The City of Palo Alto staffs the Preserve with rangers for maintenance of the land, a full-time naturalist and hourly staff to conduct fee-based interpretive programming. This year the staff provided in-depth environmental education to 2,900 elementary school students and served over 80,000 drop-in visitors at the baylands. LEBNC sits on piers over a small section of a 135 acre tidal salt marsh. It is one of the largest tracts of preserved marsh lands in the San Francisco Bay Estuary. The facility, once state-of-the- art, is now in need of renovation and updated displays to support its purpose -education for preservation of the salt marsh habitat and ecosystems. The goal of the grant proposal for the Lucy Evans Nature Center and the Baylands Open Space is to improve access and create a coherent visitor experience between the Nature Center and the surrounding salt marsh. The Project Scope would include: • Improve access by renovating the marsh front boardwalk and interior education spaces • Re-glaze one exterior wall to provide inspiring views of the marsh from within the building • Develop an "interpretive road map" to refocus and reorganize existing exhibits in order to better communicate key messages • Modernize the Educational Lab to better engage drop-in visitors and improve access for school group programs • Fabricate and install several new exhibits to augment existing ones j • Renovate existing office and storage to support programs • Improve storage for classroom materials adjacent to exhibit space • Add benches to the exterior of the building, pier and along the San Francisquito Trail CMR:282:10 Page 3 of5 If the grant is awarded, the timeline of the project is proposed to be: Completion of Design March 2011 -October 2011 Bid January-June 2012 Construction and Fabrication August -April 2013 The budget request amount for this grant is currently estimated at $3,535,200; the final estimate will be determined by the grant deadline. RESOURCE IMPACT Exhibit renovation is necessary to continue to attract and engage visitors in our educational facilities and is a current ongoing responsibility of the JMZ and LEBNC. To stay competive and attract customers to participate in our revenue-generatjng educational programs, improvements to our classroom facilities and exhibits are necessary. There is no matching funds requirement for this program. For the JMZ project, all eligible costs (except salaries) have been built into the grant or will be funded by the Friends. Approval of the grant will not affect other projects or their completion timelines. The proposed grants would provide over $4,000,000 to inspire enviroinnental stewardship in Palo Alto. The investments will refurbish or replace existing exhibits and facilities or enhance exisiting programs; their maintenance and operation will be absorbed by the existing budget and new FTE's are not required. POLICY IMPLICATIONS This recommendation is consistent with existing City policy and furthers Policy C-24 of the Community Services element of the Comprehensive Plan in that the project would reinvest in an aging facility to improve its usefulness and appearance; Policy C-26 by maintaining and enhancing existing park facilities; and Program C-19 by developing improvement plans for the maintenance, restoration and enhancement of community facilities, and keep these facilities viable corru:nunity assets. ENVIRONMENTAL REVIEW The application for a grant is not considered an action subject to the California Environmental Quality Act; therefore, no environmental assessment is needed at this time. Building and exhibit improvments will be confined to the existing foot print except where code compliance requires modification. The Planning Department will reviewed the projects to determined if they are categorically exempt under Section 15301 [existing facilities] of CEQA. ATTACHMENTS Attachment A: Attachment B: CMR:282:10 Resolution Authorizing the Filing of the JMZ Application to the California State Parks under their Nature Education Facilities Program. Resolution Authorizing the Filing of the LEBNC Application to the California State Parks under their Nature Education Facilities Program. Page 4 of5 Not Yet Approved applications, agreements, amendments, and payment requests, which may be necessary for the completion of the Project; and (f) The City agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines. SECTION 2. The Council finds that the adoption of this resolution does not constitute a project under the California Environmental Quality Act and the CEQA Guidelines and, therefore, no environment assessment is required. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: City Clerk Mayor APPROVED AS TO FORM: City Manager Senior Asst. City Attorney Director of Community Services Director of Administrative Services 100614 jb 0073385 Not Yet Approved applications, agreements, amendments, and payment requests, which may be necessary for the completion of the Project; and (f) The City agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines. SECTION 2. The Council finds that the adoption of this resolution does not constitute a project under the California Environmental Quality Act and the CEQA Guidelines and, therefore, no environment assessment is required. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: City Clerk Mayor APPROVED AS TO FORM: City Manager . Senior Asst. City Attorney Director of Community Services Director of Administrative Services 100614 jb 0073386 the smaller, more scattered sites, while continuing to maintain the larger, highly used parks and sports facilities with special use demands with in-house staff. In 2005, the Office of the City Auditor sent to the City Council an Audit of Park Maintenance report. The purpose of the review was to assess the cost-effectiveness of parks and landscape maintenance and to see if opportunities existed to reduce the cost of parks and landscape maintenance services and spaces. After a thorough staff analysis, it was determined that opportunities existed to reduce the cost of park maintenance services. Among the recommendations that came out of the report was to consider and explore the advantages and disadvantages of contracting out additional landscape maintenance services which traditionally have been performed by in-house staff. (SEIU bargaining unit members). In 2007 a bid process was conducted to look at the potential savings if the City were to contract out the park maintenance of Mitchell Park, Rinconada Park, the Lucie Stem Center as well as the Palo Alto school district fields and the. Lawn Bowls Club. After evaluation of the bids, the City determined using in-house staff was the most effective approach at that time. The issue of contracting out additional parks and landscape maintenance was raised again in the budget discussion last year during the preparation of the FY 10 Budget. Contracting out parks and landscape maintenance was placed on the list of proposed second tier budget cuts as the City-financial challenges continued. As part of the 2010 bid process to renew current contract services, staff again looked at potential savings if the City were to contract out the park maintenance of Mitchell Park, Rinconada Park, the Lucie Stem Community Center, the Lawn Bowls Club, the Palo Alto school district fields and the remaining park sites currently maintained by in-house staff. Staff concluded that the cost savings for the two regional parks and the Lawn Bowls facility could be significant if Parks contracted additional maintenance instead of providing it in-house. In calculating those savings, we offset those savings with new costs that would be incurred as a result of the contracting such as the field inspector services needed to ensure compliance with contract service standards. The costs that would be saved by contracting additional services would be salaries, benefits, supplies and materials needed for routine maintenance. If other costs could be avoided, the savings would be greater. In-house maintenance has several advantages as it has historically shown to provide better control over field safety and service levels, more timely response to special recreation events/program support, and responsiveness to emergency situations and the public's use of the facilities because the employees are located within the City limits and can be deployed quickly. However, using a private company and contracting out the larger facilities results in significant budget savings. The cost savings are noted in the Resource Impact section of the CMR. CMR: 280:10 Page 2 of5 Summary of Solicitation Process Proposal DescriptionlNumber NamelNumber of Proposal here Proposed Length of Project 36 months Number of Proposals Mailed 23 Total Days to Respond to Proposal 31 Pre-proposal Meeting Date March 18th , 2010 (Mandatory) Number of Company Attendees at 8 Pre-proposal Meeting Number of Proposals Received: 3 Company Name Location (City, State) 1. Loral Landscaping Inc. San Mateo, CA 2. Gachina LandscapeManagement Menlo Park, CA 3. TruGreen Land Care Redwood City, CA Range of Proposal Amounts See attachment C. Submitted for all items awarded A request for proposals for landscape maintenance services was sent on March 15, 2010, to 23 firms with 31 days to respond to theRFP. A mandatory pre-bid meeting was held on March 18, 2010. Proposals were received from three qualified. firms on April 15, 2010 as listed on the attached cost proposal analysis sheets. (Attachment C. The proposal evaluation committee consisted of staff members from the Community Services Department. The committee met on April 21, 2010 and carefully reviewed each firm's qualifications and submittals in response to the criteria as identified in the RFP. The written proposal ranking form (Attachment D) provides the detailed criteria utilized in the selection process. Staff canvassed the remaining firms to determine why they did not respond to the RFP. Three firms said that they were too busy during this season; one said that the project was too large for its firm to handle; and one said it was not interested at this time. Both Loral Landscaping Inc. and Gachina Landscape Management Inc. were selected due to the quality and completeness of their proposals; experience and qualifications; demonstration of understanding the scope of services requested; financial stability and best value to the City. The change order amount of $54,835, which equals 10 percent of the total for both contracts, is requested for related, additional but unforeseen work which may develop during the project. Staff confirmed with the Contractor's State License Board that Loral Landscaping Inc.and Gachina Landscape Management have active licenses on file. Staff also checked references supplied by both Loral Landscaping Inc. and for Gachina Landscape Management for previous work performed and found no significant complaints. Staff, with the concurrence of the City Attorney, has determined that the firms are exempt from complying with the financial disclosure provisions of the City'S conflict of interest code, because CMR: 280: 1 0 Page 3 of 5 the firm's range of duties and services to be provided under the contract are limited in scope or are primarily ministerial in nature. RESOURCE IMPACT Funds for both contracts are included in the City Manager's proposed FY 2011 budget and each contract is made subject to the adoption of the budget for FY 2011. The FY 2010 budget adoption will determine the available funding for these contracts and the resulting quantity of work to be performed by Loral and Gachina, respectively, and the number of employees and agents to be hired by Loral and Gachina, respectively, to perform the work required of each of them. Staff has determined after analyzing the cost proposal sheets in conjunction with current in-house cost, there are significant cost savings for outsourcing additional parks and landscape maintenance as proposed in the FY 2011 budget. The Community Services Department has proposed contracting out the Lawn Bowling maintenance program and contracting out the park maintenance at Mitchell Park, Rinconada Park and The Lucie Stem Community Center. This action will result in a reduction of five full time positions and an estimated cost savings for contracting out these sites in the first year of$314,000. Additionally, the City has met and conferred with SEIU over this change. Pursuant to the terms of Article III, Section 13 of the SEIU Memorandum of Agreement (MOA), the City provided notice to SEIU on February 26, 2010 that the City'S Open Space, Parks & Golf Division was considering contracting work which has traditionally been performed by bargaining unit members. The terms provide for a 90-day period in which the parties may offer alternatives to contracting out and meet and confer on the impact of such contracting out. SEIU was also advised when the Parks and landscape maintenance Request for Proposal was released and provided a copy of the document with the solicitation and award schedule. SEIU was invited to participate in the bid process or propose any alternatives to contracting out these services. Background information, including the 2005 audit report, was provided to the Union. The City met with SEIU two times. However, SEIU did not provide any proposals or alternatives to contracting out parks and lawn bowling maintenance, and cancelled a third meeting without rescheduling. POLICY IMPLICATIONS This recommendation is that this report is consistent with current City policies. ENVIRONMENTAL REVIEW This contract is not a project as defined by the California Environmental quality Act (CEQA) and is not subject to CEQA requirements. ATTACHMENTS Attachment A: Attachment B: Attachment C: Attachment D: CMR: 280:10 Contract for Loral Landscape Landscape Inc. Contract for Gachina Landscape Management. Cost Proposal analysis sheets Written Proposal Ranking Form Page 4 of5 CITY's request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONTRACTOR's proposed m!'IXimum compensation, including reimbursable expense, for such services. Compensation shall be based on the hourly rates set forth above or in Exhibit C (whichever is applicable), or if such rates are not applicable, a negotiated lump sum. CITY shall not authorize and CONTRACTOR shall not perform any Additional Services for which payment would exceed the amount set forth above for Additional Services. Payment for Additional Services is subject to all requirements and restrictions in this Agreement. 6. COMPENSATION DURING ADDITIONAL TERMS. o CONTRACTOR'S compensation rates for each additional term shall be the same as the original term; OR o CONTRACTOR's compensation rates shall be adjusted effective on the commencement of each Additional Term. The lump sum compensation amount, hourly rates, or fees, whichever is applicable as set forth in section 5 above, shall be adjusted by a percentage equal to the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers for the San Francisco- Oakland-San Jose area, published by the United States Department of Labor Statistics (CPI) which is published most immediately preceding the commencement of the applicable Additional Term, which shall be compared with the CPI published most immediately preceding the commencement date of the then expiring term. Notwithstanding the foregoing, in no event shall CONTRACTOR's compensation rates be increased by an amount exceeding five percent of the rates effective during the immediately preceding term. Any adjustment to CONTRACTOR's compensation rates shall be reflected in a written amendment to this Agreement. 7. INVOICING. Send all invoices to the CITY, Attention: Project Manager. The Project Manager is:Mark Ribeiro, Dept.: Community Services, Parks And Golf Division, Telephone: 650-496-5928. Invoices shall be submitted in arrears for Services performed. Invoices shall not be submitted more frequently than monthly. Invoices shall provide a detailed statement of Services performed during the invoice period and are subject to verification by CITY. CITY shall pay the undisputed amount of invoices within 30 days of receipt. 8. GENERAL TERMS AND CONDITIONS A. ACCEPTANCE. CONTRACTOR accepts and agrees to all terms and conditions of this Agreement. This Agreement includes and is limited to the terms and conditions set forth in sections 1 through 7 above, these general terms and conditions and the attached exhibits. B. QUALIFICATIONS. CONTRACTOR represents and warrants that it has the expertise and qualifications to complete the services described in Section 1 of this Agreement, entitled "SERVICES," and that every individual charged with the performance of the services under this Agreement has sufficient skill and experience and is duly licensed or certified, to the extent such licensing or certification is required by law, to perform the Services. CITY expressly relies on CONTRACTOR's representations regarding its skills, knowledge, and certifications. CONTRACTOR shall perform all work in accordance with generally accepted business practices and performance standards of the industry, including all federal, state, and local operation and safety regulations. With respect to certifications referred to in the preceding sentence, CONTRACTOR shall certify, in writing, to the CITY that CONTRACTOR has obtained a criminal record clearance and the fmgerprinting of each permanent employee of CONTRACTOR and each temporary employee who substitutes for a permanent employee in the latter employee's absence before such employee will be authorized to perform work on behalf of CONTRACTOR in Palo Alto under this Agreement. Fingerprinting will be performed by Lifescan Services; 711 Serra Street, Palo Alto, CA (PH) 650725-2499. CONTRACTOR shall coordinate with the CITY's project manager to ensure the performance of these tasks. CONTRACTOR's certification, which shall be proposed by the CITY if CONTRACTOR does not wish to issue a certification as to form, shall be provided at the commencement of the term and on each occasion as new and substitute employees are hired to perform work under this Agreement and are identified to the CITY's project manager, in writing. If any such employee has not been cleared for employment as required by this Agreement 2 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CUR,RENT BUYER-CM FOLDERS\KA THY\Contra cts\C 1 0 135477 A-Loral\Contract Document Loral.doc and such employee performs work in Palo Alto, CONTRACTOR shall be deemed in breach of this Agreement and the provisions ofQ. TERMINATION shall apply. The CITY reserves the right, acting by the CITY's project manager, to require the immediate removal of any such employee of CONTRACTOR who has not cleared a criminal background check and been fingerprinted from the CITY's premises which are covered by the work under this Agreement. C. INDEPENDENT CONTRACTOR. It is understood and agreed that in the performance of this Agreement, CONTRACTOR and any person employed by CONTRACTOR shall at all times be considered an independent CONTRACTOR and not an agent or employee of CITY. CONTRACTOR shall be responsible for employing or engaging all persons necessary to complete the work required under this Agreement. D. SUBCONTRACTORS. CONTRACTOR may not use subcontractors to perform any Services under this Agreement unless CONTRACTOR obtains prior written consent of CITY. CONTRACTOR shall be solely responsible for directing the work of approved subcontractors and for any compensation due to subcontractors. E. TAXES AND CHARGES. CONTRACTOR shall be responsible for payment of all taxes, fees, contributions or charges applicable to the conduct of CONTRACTOR's business. F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services comply with all applicable federal, state and local laws, ordinances, regulations, and orders. G. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole expense, repair in kind, or as the City Manager or designee shall direct, any damage to public or private property that occurs in connection with CONTRACTOR's performance of the Services. CITY may decline to approve and may withhold payment in whole or in part to such extent as may be necessary to protect CITY from loss because of defective work not remedied or other damage to the CITY occurring in connection with CONTRACTOR's performance of the Services. CITY shall submit written documentation in support of such withholding upon CONTRACTOR's request. When the grounds described above are removed, payment shall be made for amounts withheld because of them. H. WARRANTIES. CONTRACTOR expressly warrants that all services provided under this Agreement shall be performed in a professional and workmanlike manner in accordance with generally accepted business practices and performance standards of the industry and the requirements of this Agreement. CONTRACTOR expressly warrants that all materials, goods and equipment provided by CONTRACTOR under this Agreement shall be fit for the particular purpose intended, shall be free from defects, and shall conform to the requirements of this Agreement. CONTRACTOR agrees to promptly replace or correct any material or service not in compliance with these warranties, including incomplete, inaccurate, or defective material or service, at no further cost to CITY. The warranties set forth in this section shall be in effect for a period of one year from completion of the Services and shall survive the completion of the Services or termination of this Agreement. I. MONITORING OF SERVICES. CITY may monitor the Services performed under this Agreement to determine whether CONTRACTOR's work is completed in a satisfactory manner and complies with the provisions of this Agreement. J. CITY'S PROPERTY. Any reports, information, data or other material (including copyright interests) developed, collected, assembled, prepared, or caused to be prepared under this Agreement will become the property of CITY without restriction or limitation upon their use and will not be made available to any individual or organization by CONTRACTOR or its subcontractors, if any, without the prior written approval of the City Manager. K. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term ofthis Agreement and for three (3) years from the date of final payment, CONTRACTOR's records pertaining to matters covered by this Agreement. CONTRACTOR agrees to maintain accurate books and records in accordance with generally accepted accounting principles for at least three (3) following the terms of this Agreement. 3 Rev. January 11,2010 \\Cccterra\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI0 135477 A-Loral\Contract Document Loral.doc L. NO IMPLIED WAIVER. No payment, partial payment, acceptance, or partial acceptance by CITY shall operate as a waiver on the part of CITY of any of its rights under this Agreement. M. INSURANCE. CONTRACTOR, at its sole cost, shall purchase and maintain in full force during the term of this Agreement, the insurance coverage described in Exhibit D. Insurance must be provided by companies with a Best's Key rating of A-:VII or higher and which are otherwise acceptable to the City's Risk Manager. The City's Risk Manager must approve deductibles and self-insured retentions. In addition, all policies, endorsements, certificates and/or binders are subject to approval by the Risk Manager as to form and content. CONTRACTOR shall obtain a policy endorsement naming the City of Palo Alto as an additional insured under any general liability or automobile policy. CONTRACTOR shall obtain an endorsement stating that the insurance is primary coverage and will not be canceled or materially reduced in coverage or limits until after providing 30 days prior written notice of the cancellation or modification to the City's Risk Manager. CONTRACTOR shall provide certificates of such policies or other evidence of coverage satisfactory to CITY's Risk Manager, together with the required endorsements and evidence of payment of premiums, to CITY concurrently with the execution of this Agreement and shall throughout the term of this Agreement provide current certificates evidencing the required insurance coverages and endorsements to the CITY's Risk Manager. CONTRACTOR shall include all subcontractors as insured under its policies or shall obtain and provide to CITY separate certificates and endorsements for each subcontractor that meet all the requirements of this section. The procuring of such required policies of insurance shall not operate to limit CONTRACTOR's liability or obligation to indemnify CITY under this Agreement. N. HOLD HARMLESS. To the fullest extent permitted by law and without limitation by the provisions of section M relating to insurance, CONTRACTOR shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents from and against any and all demands, claims, injuries, losses, or liabilities of any nature, including death or injury to any person, property damage or any other loss and including without limitation all damages, penalties, fines and judgments, associated investigation and administrative expenses and defense costs, including, but not limited to reasonable attorney's fees, courts costs and costs of alternative dispute resolution), arising out of, or resulting in any way from or in connection with the performance of this Agreement. The CONTRACTOR's obligations under this Section apply regardless of whether or not a liability is caused or contributed to by any negligent (passive or active) act or omission of CITY, except iliat the CONTRACTOR shall not be obligated to indemnify for liability arising from the sole negligence or willful misconduct of the CITY. The acceptance of the Services by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section survive the completion of the Services or termination of this Contract. O. NON-DISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONTRACTOR certifies that in the performance of this Agreement, it shall not discriminate in the employment of arty person because ofthe race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONTRACTOR 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. P. WORKERS' COMPENSATION. CONTRACTOR, by executing this Agreement, certifies that it is aware of the provisions of the Labor Code of the State of California which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and certifies that it will comply with such provisions, as applicable, before commencing and during the performance of the Services. Q. TERMINATION. The City Manager may terminate this Agreement without cause by giving ten (10) days' prior written notice thereof to CONTRACTOR. If CONTRACTOR fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided by law, the City Manager may terminate this Agreement immediately upon written notice of termination. Upon receipt of such notice of termination, CONTRACTOR shall immediately discontinue performance. CITY, CITY shall pay CONTRACTOR for services satisfactorily performed up to the effective date of termination. If the termination if for cause, CITY may deduct from such payment the amount of actual damage, if any, 4 Rev. January 11,2010 \\Cc-terril\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\C 1 0 135477 A-LoraJ\Contract Document LoraJ.doc sustained by CITY due to Contractor's failure to perform its material obligations under this Agreement. Upon termination, CONTRACTOR shall immediately deliver to the City Manager any and all copies of studies, sketches, drawings, computations, and other material or products, whether or not completed, prepared by CONTRACTOR or given to CONTRACTOR, in connection with this Agreement. Such materials shall become the property of CITY. R. ASSIGNMENTS/CHANGES. This Agreement binds the parties and their successors and assigns to all covenants of this Agreement. This Agreement shall not be assigned or transferred without the prior written consent of the CITY. No amendments, changes or variations of any kind are authorized without the written consent of the CITY. S. CONFLICT OF INTEREST. In accepting this Agreement, CONTRACTOR covenants that it presently has no interest, and will not acquire any interest, direct or indirect, fmancial or otherwise, which would conflict in any manner or degree with the performance of this Contract. CONTRACTOR further covenants that, in the performance of this Contract, it will not employ any person having such an interest. CONTRACTOR certifies that no City Officer, employee, or authorized representative has any fmancial interest in the business of CONTRACTOR and that no person associated with contractor has any interest, direct or indirect, which could conflict with the faithful performance of this Contract. CONTRACTOR agrees to advise CITY if any conflict arises. T. GOVERNING LAW. This contract shall be governed and interpreted by the laws of the State of California. U. ENTIRE AGREEMENT. This Agreement, including all exhibits, represents the entire agreement between the parties with respect to the services that may be the subject of this Agreement. Any variance in the exhibits does not affect the validity of the Agreement and the Agreement itself controls over any conflicting provisions in the exhibits. This Agreement supersedes all prior agreements, representations, statements, negotiations and undertakings whether oral or written. V. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Contract are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Contract and the Palo Alto Municipal Code and is subject to the adoption of the budget for FY 2010-11, covering this Agreement, in particular, the quantity and quality of work to be performed by CONTRACTOR and the number of employees and agents to be hired by CONTRACTOR to perform the work required of CONTRACTOR under this Agreement. w. ENVIRONMENT ALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONTRACTOR shall comply with the City's Environmentally Preferred Purchasing policies which are available at the City's Purchasing Department which are incorporated by reference and may be amended from time to time. CONTRACTOR shall comply with waste reduction, reuse, recycling and disposal requirements ofthe City's Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, Contractor shall comply with the following zero waste requirements: • All printed materials provided by Contractor to City generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by the City's Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable based inks. • Goods purchased by Contractor on behalf of the City shall be purchased in accordance with the City's Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Office. • Reusable/returnable pallets shall be taken back by the Contractor, at no additional cost to the City, for reuse or recycling. Contractor shall provide documentation 5 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER -CM FOLDERS\KA THY\Contra cts\Cl 0 135477 A-Loral\Contract Document Loral.doc Background EXHIBIT A SCOPE OF SERVICES LANDSCAPE MAINTENANCE PROJECT The City of Palo Alto is a charter signatory to the Bay Friendly Landscape Declaration and has an award-winning Integrated Pest Management Program that has been successful in large part to efforts of Parks to reduce pesticide use. The Parks Department is as a leader in water conservation and received the 2002 Rainbird Corporation award for water efficiency. I. GENERAL PROVISIONS The following provisions, where individually applicable, apply for maintenance standards not limited to Landscape Maintenance, and any and all other items selected as part of this proposal. In the event that any of the provisions provided here under GENERAL PROVISIONS are found to be in conflict with or are contradicted by any provision found in the SPECIFICATION REQUIREMENTS listed in Section I or Section M, the provisions found in the SPECIFICATION REQUIREMENTS listed in Section I or Section M will supersede the GENERAL REQUIREMENTS. II. LOCATION OF PROPERTY The locations of the areas to be maintained are listed in Section XIII. SITE LOCATIONS AND SPECIAL INSTRUCTIONS III. SCOPE OF WORK-Landscape Maintenance CONTRACTOR shall provide the highest quality of landscape maintenance services and materials. CONTRACTOR agrees to provide the highest quality commercially accepted methods, procedures and scientific controls for landscape maintenance. "Scientific Controls" is understood to mean practices based upon recommendations of the University of California, The U.S. Forest Service, or similarly qualified experts; recommendations in University of California Cooperative Extension Publications, Consumer Products Safety Commission Playground Guidelines and information in standard landscape industry references; This shall include the use of proper knowledge, skills, materials and equipment of a timely basis to maintain all areas in a clean, safe, healthy, and aesthetically acceptable manner during the entire term of this contract. CONTRACTOR agrees to be continuously alert in locating and defining problems and agrees to exercise prompt and proper corrective action. Action times will be prioritized, and low priority items will be given a time line for corrections. A PRELIMINARY WRITTEN REPORT SHALL BE SUBMITIED FOR MAJOR 7 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CIO 135477 A- Loral\Contract Document Loral.doc CORRECTIVE PROBLEMS NOT COVERED IN THE CONTRACT. CONTRACTOR shall communicate to the City, landscape, as well as non- landscape related hazards that are seen while on site. Work requests related to citizen requests or reported hazards require immediate response, within 24 hours of the requests. CONTRACTOR shall furnish landscape maintenance services by qualified site managers and horticulturists to provide a 36-month maintenance program according to maintenance specifications. The provision of such report does not mandate the CITY to extend the Contract to 36 months. CONTRACTOR supervisor or representative may be required to report to the Open Space and Parks Division office, or other designated location, Monday through Friday between 6:30am and 8:00 am, except for holidays, which may fall on these days. CONTRACTOR shall report progress to the City of Palo Alto Open Space and Parks Division on the agreed reporting frequency and schedule. A qualified site manager or superintendent of operations shall represent the contractor in monthly meetings and walk-through inspections with City of Palo Alto staff. CONTRACTOR shall furnish all labor, materials, equipment, and on site supervision by qualified site managers who shall provide complete, continuous and expert landscape maintenance services. IV. GENERAL REQUIREMENTS A.. Landscape Maintenance: CONTRACTOR shall provide the City with a landscape maintenance program at the frequencies called for in the special provisions of RFP 135477. The maintenance program is not limited to specifying daily, weekly and monthly landscape maintenance task schedules covering all areas of responsibility specified in this agreement. The maintenance program will be submitted and agreed upon within 30 calendar days following award of this contract. This program and any changes, deletions, or additions therein, if approved by the City, shall become part of this agreement and shall be used by both the contractor and the City of Palo Alto for performance monitoring of contractor obligations. Failure to submit a maintenance program within the allotted time period will be considered a non-responsive action, and non-responsiveness will be grounds for termination of this agreement. The Project Manager shall receive changes to the schedule at least 24 hours prior to the scheduled time for the work. Failure to notify of a change and/or failure to perform an item or work on a scheduled day may result in deduction of payment for work not completed. 8 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI0135477 A- LoraI\Contract Document Loral.doc CONTRACTOR shall adjust his schedule to compensate for all holidays. CONTRACTOR will be required to work on specified holidays and weekends as outlined in this Scope of Work. B. Staffing Levels: A sufficient staffing level to successfully satisfy the landscape maintenance expectations within this agreement is required. Contract personnel to remain on site everyday even if it is raining. All key project personnel must be fingerprinted before being allowed to work on City/School property. Contractor shall work with City's Project Manager on obtaining required verification of fingerprinting results prior to personnel being allowed to work on City/School property. C. Monthly Progress Reports Monthly, the contractor shall provide the City's Open Space and Parks Division with monthly progress reports, based on weekly summary of work performed by location and referenced to the maintenance program. The reports will be due no later than the fifth day of the month following services, and is to include the following information: a). Total labor, supervision, and horticultural hours provided at each site. This can be in a spreadsheet format with all applicable sites covered under this agreement. Sarnple format available upon request. b). Problem areas encountered during the month. c). Monthly application reports for all materials applied by site. This will include location, application date, materials, amount of material applied, etc. - d) Any additional reports as directed by the Open Space and Parks Division. D. Inventory/Material Safety Data Sheets Within thirty days of the effective date of this agreement, CONTRACTOR will submit to the City a list of all chemicals (fertilizers, pesticides, cleansers etc.) that will be used by the contractor on the sites, together with the required Material Safety Data Sheets. MSDS sheets and product labels shall be in applicator's vehicle. E. Integrated Pest Management (IPM) 9 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER -CM FOLDERS\KA THY\Contra cts\CI 0 135477 A- Loral\Contract Document Loral.doc Within 45 days of acceptance of this agreement, CONTRACTOR shall submit to the Parks and Golf Division an Integrated Pest Management Plan (IPM) that complies with the City of Palo Alto IPM Policy. The IPM Plan will be reviewed annually for updates and modifications. (Reference: City of Palo Alto IPM Policy Section VII). Pesticide use reports described in Section VII shall be submitted in a timely manner and shall contain accurate and current information regarding the Contractor's performance at each site. Failure to supply these reports in an accurate and timely manner shall be considered a breach of this agreement. F. Extra Projects/Landscape Upgrades: All extra projects shall require the submission of a Project Proposal Form or a Work Order Authorization Form. If the contractor does not have available such a form, a mutually agreeable format will be developed. On any extra project or landscape upgrade, the City reserves the right to obtain competitive bids or quotations. CONTRACTOR shall use additional personnel for extra work or project upgrades. CONTRACTOR cannot stop regular landscape maintenance services and use staff for extra work or project upgrades. G. Management Philosophy: CONTRACTOR shall take a pro-active approach in correcting problems within the contractors' span of responsibility and control. Other problems and suggestions for improvements, both short and long term, must be submitted promptly to the City for appropriate action. H. Public Image and Etiquette: CONTRACTOR employees shall wear company uniforms, which consist of long pants and shirts with company name and individual's name on the shirt. CONTRACTOR's staff when needed will utilize rain gear, rain boots, safety shoes, and other safety equipment. All contracted employees while on the site shall exhibit a clean, neat professional appearance. Contractor's equipment and vehicles shall also be professional in appearance, exhibit the company name and phone number, and be well maintained for safe operation. CONTRACTORs' vehicles must display a placard, legible from a distance of 10 feet, with the following language: . Landscape Maintenance Contractor working for the City of Palo Alto Parks and Golf Division For information contact :( 650) 496-6962 I. Definitions 10 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT A TlONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI 0 135477 A- Loral\Contract Document Loral.doc Responsible parties referred to as City" of Palo Alto are deemed to refer to the Parks Project Manager, Parks Superintendent, or Parks Supervisor. CONTRACTOR shall begin work after receiving written notice to proceed from the Parks Superintendent. V. TERM OF CONTRACT A. The services to be performed under the contract shall commence July 1, 2010 and shall be completed by June 30, 2013. Annual renewals after Year 1 are subject to funding approval on an annual basis. VI. GENERAL CONDITIONS A. Permits/Parking CONTRACTOR shall be issued a free maintenance permit from the City's Department of Transportation. This will allow the Contractor's crews to use City parking facilities at no charge during the term of this contract and only while doing landscape maintenance work for the City's Open Space and Parks Division. B. Payments and Inspection Payment will be made for work satisfactorily completed as called for in this contract. The City's Representative shall inspect and notify CONTRACTOR of any unsatisfactory work. Unsatisfactory work shall be corrected within 24 hours. Contractor or Contractor's representative shall meet with a representative from the City at least once a month during the life of this contract to inspect Work performed. CONTRACTOR will bill the City by the 5th of the month following service. The City will pay CONTRACTOR on a monthly basis for labor, equipment and materials provided during the monthly billing period. C. Property Damage 1. Any private property or city property damaged or altered in any way during the performance of the work under this contract shall be reported promptly to the City's representative, and shall be rectified in an approved manner back to its former condition, prior to damage, at ' CONTRACTOR's expense. 2. Any hazardous conditions noted, or seen, by CONTRACTOR that has occurred by any means other than during the performance of the Contractor's work, whether by vandalism or any other means, shall be promptly reported to the City's Representative. 11 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\Cl 0 135477 A- Lora1\Contract Document Loral.doc 3. CONTRACTOR is responsible for securing any immediate hazards with caution tape, safety cones, or barricades until a City Representative arrives to the location. D. Safety CONTRACTOR agrees to perform all work outlined in the Agreement in such a manner as to meet all accepted standards for safe practices during the maintenance operation and to safely maintain stored equipment, machines, and materials or other hazards consequential or related to the work; and agrees additionally to accept the sole responsibility for complying with all City, County, State or other legal requirements including, but not limited to, full compliance with the terms of the applicable O.S.H.A. and CAL E.P.A. Safety Orders at all times so as to protect all person, including contractor employees, agents of the City, vendors, members of the public or others from foreseeable injury, or damage to their property. CONTRACTOR shall be responsible for traffic control and safety regulations as related to any City, State, or County requirements while working on medians and/or roadside strips. The design and operation of work zone traffic controls must comply with U.S. Department of Transportation/Federal Highway Administration guidelines. CONTRACTOR shall cooperate fully with City in the investigation of any accident, injury or death occurring on city property, including a complete written report thereof to the Project Manager within twenty-four (24) hours following the occurrence. CONTRACTOR's responsibility shall be continuous and not be limited to working hours or days. E. Use of Sanitary Landfill The refuse disposal facilities of the city of Palo Alto Sanitary Landfill located adjacent to East Embarcadero Road in said City will be made available to the Contractor through the 2011 calendar year for the disposal of all trees, rubbish and construction debris generated on work site. Contractor shall pay all dump fees. Contractor shall at its sole expense load, haul and deposit said rubbish and debris during normal landfill operating hours. All landfill regulations will apply to all debris deposited by the Contractor. Any questions regarding landfill rules and regulations shall be directed to the Landfill Supervisor. A digest of the refuse disposed area rules and regulations have been appended to this contract. At the end of the 2011 calendar year, the contractor shall at is sole expense 12 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER -CM FOLDERS\KA THY\Contra cts\Cl 0 135477 A- Loral\Contract Document Loral.doc load, haul and deposit all rubbish, debris and green waste to a transfer station located at the City of Sunnyvale. F. Project Hours of Operation CONTRACTOR shall conform his operations to the hours between 7:00 a.m. and 5:00 p.m. during the life of the contract. CONTRACTOR shall conform his operations to the hours of 9:00 a.m. to 3:00 p.m. to medians and roadside strips. Hours of operation in the University Ave. and California Ave. Business District are an exception. Cleaning equipment, when used in public streets in business districts shall be allowed during the hours of 10 pm and 7 am, Monday through Friday, providing no such piece of equipment shall produce a noise level that exceeds 70 dBA measured at a distance of 25 feet. Any other exception shall only be authorized with prior approval of the "Project Manager" . . G. City Truck Route Ordinance CONTRACTOR and any subcontractor or supplies shall at all times comply with the requirements of the City Truck Route Ordinance, a digest of the provisions are attached to this RFP as Attachment J. H. City Noise Control Ordinance CONTRACTOR and any subcontractor shall at all times conform their operations with the requirement of the City Noise Ordinance, a digest of the provisions are attached to this RFP as Attachment K. CONTRACTOR's equipment must be tested to verify that it meets noise ordinance prior to the start of the contract. CONTRACTOR is responsible for obtaining certification required by the City for safety and equipment training. Contractors are not allowed to utilize Fuel Powered Leaf Blowers only Electric Powered Leaf Blowers I. Spare the Air Days CONTRACTOR must comply with regional "Spare the Air" recommendations on designated "Spare the Air Days" that occur throughout the year. At a minimum, no gasoline powered equipment shall be used after 10 a.m. on "Spare the Air Days". The Project Manager will notify the contractor when a "Spare the Air" alert has been designated. 13 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER -CM FOLDERS\KA THY\Contra cts\CIO 135477 A- Loral\Contract Document Loral.doc CONTRACTOR must coordinate work schedules to accommodate "Spare the Air" recommendations. J. Materials All materials shall be provided by CONTRACTOR and shall be the highest quality available. . Commercial fertilizers and pesticides shall bear the manufacturer's label and guaranteed analysis. CONTRACTOR must have MSDS and written recommendation sheets for all chemicals available upon request. The Project Manager must approve all materials. All pesticide applications shall in accordance with written recommendations provided by a license pest control advisor. 1. Water is to be furnished by the City. 2. Fertilizer shall be a complete, seasonably appropriate Organic Materials Review Institute OMRI (www.omri.org) Certified organic slow-release granular fertilizer Earthworks 3-4-3 (or approved equal) furnishing the required percentage of nitrogen, phosphoric acid and potassium to keep lawns, trees, shrubs and other plants in a healthy and vigorous growing condition at all times. If there arises a question as to the need for application of fertilizer or the formulation of a fertilizer, soil samples shall be taken from locations specified by the City's representative. They shall be analyzed by a licensed soil analyst at the Contractor's expense and the results and recommendations for the formulation and rates of applications of a complete fertilizer shall be submitted to the City's representative. CONTRACTOR shall formulate and apply the fertilizer as per the recommendations of the soil analyst. If the application of iron, zinc or other trace minerals is recommended by the soil analyst or by a recognized plant pathologist to correct a specific soil deficiency, it shall also be applied according to these recommendations at CONTRACTOR expense. 3. Pesticides shall be of the highest quality obtainable, brought to the job site in the original manufacturer's containers, properly labeled with guaranteed analysis. Any necessary permits, recommendations, etc. shall be the responsibility of CONTRACTOR. 4. Plant materials shall of the highest quality, displaying a healthy appearance and of a size relevant to their container size. The Project Manager must inspect and approve all plant materials prior to planting. 14 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\Cl 0 135477 A- Loral\Contract Document Loral.doc I. CONTRACTOR is responsible for maintaining the first 15 feet of the tree measured from the root crown/flare. J. Tree stakes shall be removed as trees mature. Tree ties will be adjusted at least annually to accommodate tree growth. K. All trees should be maintained at a height that conforms to AD.A standards for safety (84" above ground level), and which removes hazards to persons, mowers, and property. 3. Flower beds and perennial areas shall be raked, cultivated, and pruned/dead-headed as needed, but no less than once per week. 4 Ground cover along curbs must be kept within curb and height trimmed as needed. 5. All ivy ground cover shall be mowed with a composting mower once a year in the winter. Most ivy/ground cover areas have irrigation, primarily fixed risers. CONTRACTOR must flag all irrigation components prior to ivy mowing. CONTRACTOR is responsible for repairing any damage to irrigation system. VII. INTEGRATED PEST MANAGEMENT (I PM) The goal of the City of Palo Alto IPM policy is reduce the amount and toxicity of pesticides used on City property in order to protect water quality and human health and to avoid ecotoxicity. Preferred pest management techniques include encouraging naturally occurring biological control, using alternative plant species or varieties that resists pests; cultivating, pruning, fertilizing, and irrigation practices that reduce pest problems, optimizing habitat to reduce pest development, selecting pesticides with a least toxicity to humans and non-target organisms and applying pesticides only as a last resort. A Within 45 days and annually on the anniversary of this agreement, CONTRACTOR shall submit to the City's Open Space and Parks Division an Integrated Pest Management Plan that complies with the City of Palo Alto IPM Policy. The IPM Plan shall be reviewed annually for updates and modifications with Open Space and Parks Division Staff. Frequent and thorough site inspections, on foot, will be needed to ensure no major infestations occur. The first priority in addressing pests will be to conserve naturally occurring beneficial insects through the use of selective applications of the least toxic effective materials. Biological controls will be based upon sound scientific information such as that provided by the University of California. Conventional pesticides will be given last priority. Open Space 16 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\KATHy\Contra cts\CI0135477A- Lora\\Contract Document Loral.doc and Parks Division staff will provide site-specific· historical data for known infestations. Contractor shall provide any MSDS. sheets of chemicals that will be utilized. B. No pesticides of any kind will be used on designated Pesticide Free Parks. The Project Manager will provide a list of pesticide free parks. C. Pest control shall be done only by qualified, trained personnel, under the supervision of a State licensed pest control operator, using materials approved by the Project Manager. The pesticide application shall be done with extreme care to avoid any hazard to any person, pet, or wildlife in the area or adjacent areas, or any property damage. Application shall be in strict accordance with all governing regulations. CONTRACTOR must provide, within 30 days of the Notice to Proceed, their Pest Control Operators License, and the names and license/certification numbers of any individuals responsible for or applying pesticides in accordance with this agreement. D. All pest infestations shall be reported to the Project Manager. The Project Manager prior to application shall approve all pesticides applications. Records of all pest control operations stating dates, locations, times, methods of application, chemical formulations, applicators names and weather conditions shall be made and retained in an active file for a minimum of three (3) years. E. Written report of all applications shall be provided to the Parks and Golf Division on a monthly basis. CONTRACTOR must use the "Palo Alto Contractor Monthly Pesticide Use Summary" form Attachment _It is also the responsibility of CONTRACTOR to. file monthly chemical use reports with the County Agricultural Department. F. All chemicals requiring a special permit for use must be registered with the county Agricultural Commissioner's Office and a permit obtained with a copy to the Parks and Golf Division. G All regulations and safety precautions listed in the "Pesticide Information and Safety Manual, published by the University of California and the Pesticide Safety Information Series (PSIS) published by the California Department of Pesticide Regulation shall be adhered to. H. Spraying is not permitted during heavy traffic (vehicle, bicycle, or pedestrian) periods or when winds create uncontrollable material drift. The Project Manager will permit no spraying without prior approval. I. Pesticides may not be used within 250 feet of any playground area or creek. J Temporary notice shall be posted during and after a site has been sprayed all areas sprayed shall be flagged and signed 17 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\KATHy\Contra cts\CI 0 135477A- Lorai\Contract Document Loral.doc K. CONTRACTOR agrees to control gophers, squirrels, moles and other rodents causing damage to City Property under the site area of responsibility. Traps are the only acceptable form of rodent control. Rodenticides for gophers, ground squirrels or other rodents may not be used. In the event of visible evidence of such pests, contractor will restore the area to its proper condition if the damage is current and prevention is within the contractor's control. L. CONTRACTOR shall replace any plant material that has suffered severely due to lack of proper pest management techniques, if such pest control is possible and practicable M All treated areas must be monitored during and after pesticide application until material has settled and treatment area is completely dry. No unprotected person, pet, or wildlife may enter a treated area until all re-entry intervals have been satisfied. N. Weeding All areas, including but not limited to: shrub beds, flower beds, groundcover beds, tree wells, paved areas, sidewalks, cracks, stairways, pavers, expansion joints, decomposed granite paths, picnic areas, playgrounds, under bleachers/benches, must be kept weed free at all times. Weeds shall be removed whenever the appearance become~ unsightly or when requested to do so by Parks and Golf Division staff. O. Staking and Guying Maintain and replace stakes and guys with equal material. Maintain and replace plant ties to provide support without chafing of bark. Additional stakes and/or guys shall be placed from time to time to correct misshaping caused by wind. Stakes and guys shall be removed upon request of Project Manager. P. Fertilization Fertilizers shall not contain pesticides. CONTRACTOR shall fertilize all shrub, ground cover, and planter bed areas three times a year with an approved complete slow release OMRI certified granular organic slow release Earthworks 3-4-3 fertilizer (or approved equal). Fertilize trees as requested, not to exceed twice per year. Fertilizer shall be applied in the spring, summer and in the fall and may not be applied three days before there is a 40% chance of rain predicted. ' Q. Nurturing Soil Health 18 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLIcn:A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI 0 135477 A- Lora1\Contract Document Lora1.doc Leaf drop shall become part of the mulch layer in the tree, shrub or ground cover areas in an attractive manner and away from high traffic areas; Leaf drop shall not be allowed to enter stormdrains. Mulch shall be maintained under all trees and shrubs and on bare soil with a minimum 3-inch layer of organic material. To the greatest extent practicable, CONTRACTOR shall not procure mulch products that originate from forest products. When possible CONTRACTOR shall give preference to mulch products that are produced on-site, or from regionally generated plant debris including that made at the City of Palo Alto. R. Replacement of Material Remove dead and damaged plants and replace with material of equivalent size, condition and variety, subject to approval and purchase owner's representative. Labor shall be provided by the Contractor in a timely manner. Plant material shall be provided by the City's Parks Division unless damaged is caused by Contractor's negligence (i.e. chemical damage, mechanical damage, water stress.) Damage not resulting from Contractor's negligence, such as vandalism, vehicle, or weather shall be reported promptly to the Project Manager together with an estimate of materials needed for correction. The City will provide all necessary materials. Labor shall be provided by CONTRACTOR in a timely manner. Prior to beginning maintenance CONTRACTOR and the city's representative shall inspect and inventory all plants, trees and shrubs to determine their number and condition. VIII. TURF MAINTENANCE- 1. The following turf maintenance guidelines apply to all turf areas included in this agreement. Turf shall be maintained areas in a healthy, safe, and aesthetically pleasing condition by performing the following operations and other work incidental thereto: A. Mowing -include requirement for grasscycling? All turf areas are to be mowed typically once a week. An additional weekly mowing may be requested due to weather conditions, special events, and growth flush after fertilizing. Mower setting are to be at 1 %-2" in height, depending of turf variety. All clippings shall be removed when unsightly and requested by the Project Manager. B. Aerification -All turf areas are to be aerified twice a year. Core size shall be at least 3/4" in diameter and 3" -4" in length and 2" spacing utilizing a 19 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CIO 135477 A- Lora1\Contract Document Loral.doc hydraulic aerifier in areas where needed due to compaction conditions. Cores need not be removed. Flag/mark irrigation system heads, valve boxes, and quick couplers. Contractor is responsible for repairing any damaged caused by aerification equipment. C. Edging -All turf edging shall be edged at least once per month. Examples of edges: along pathways, walkways, around shrubs, trees, sprinklers heads, valve boxes, mow bands, curbs, benches, light poles, or any other fixed object. Herbicide shall not be used as an edging tool. Care must be taken not to damage trees, shrubs, or any other fixed object with edging equipment. String trimmer damage to trees and roots will not be tolerated. D. Gopher Control -CONTRACTOR shall keep all turf areas free of gophers by using Macabee gopher traps or other approved devices. Holes caused by gophers shall be backfilled with soil approved by the City's representative. E. Grub/Larvae Control -CONTRACTOR shall keep all turf areas free of grubs and larvae. Damage caused by grubs and larvae shall be re- seeded with an approved turf seed. Grub and larvae species including, but not limited to, Australian Sod Fly, Bermuda grass Mite, Billbugs, Cutworms, Armyworms, Ground Pearls, Lawn moths, Sod webworms, White Grubs. F. Turf shall be fertilized three times annually, using 6 pounds per 1,000 square feet, using aEarthworks slow release 3-4-3 organic fairway granular fertilizer (or approved equal) at a rate of 1.0 pounds of actual nitrogen per 1,000 square feet. G. Safety hazards must be addressed immediately. Fill holes in turf areas immediately, regardless of cause, as they develop with sufficient soil to prevent tripping hazards. H. Re-seed small bare areas, not to exceed 100 sq. feet per area, on a monthly basis using materials and methods approved by the Project Manager. I. Turf Sweeping -CONTRACTOR must sweep turf areas at the request of the Project Manager. Sweeping will be requested to remove excess turf clippings or leaves. Requests will be more frequent during the fall season, after wind related events, and skipped mowing intervals by CONTRACTOR or City Staff. This includes turf areas mowed by City Staff. 2. Procedures for turf renovation of soccer fields 20 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI0135477 A- Lora\\Contract Document Loral.doc A. Six foot high portable plastic chain link fencing is to be installed to isolate the soccer field renovation area from use or encroachment by the general public. A minimum of four signs must be provided stating that this filed area is under renovation and will be closed until (date). Fenced area shall be placed in a manner not to interfere with irrigation system watering the newly renovated area. B. If necessary, the field will be treated with a post emergent material to eliminate weed infestations and competition with the materials to be planted. C. Turf areas shall be scalped mowed down to approximately 3/4" or less in height. Excess clippings shall be vacuumed or finely swept up and disposed. D. Holes or low spots greater than 1" in depth are to be filled with a minimum of 50 tons of T-mix from T.M.T or approved equal. Sample of soil to be given to City representative for approval prior to use. The goal is to level the field and eliminate low spots and bumpy areas to create a consistent and even playing field. CONTRACTOR must provide a sufficient amount of soil to achieve the desired field grade. E. All turf areas will be double aerated using either a conventional drum aerator or a pull behind mechanical rotating tine aerator. This will be completed by aerating in two perpendicular directions. All sprinklers, quick couplers, or other impediments will be flagged before this procedure is initiated. Core size shall be 3/4" diameter minimum, using a deep hollow tine aerator to a depth of 6". The turf areas shall be dragged afterwards to break up the cores. F. After aerating, fields will be slit seeded in two directions. Seeding rates shall be 20% Bluegrass and 80% Perennial Rye grass, or approved equal. Seed varieties must be industry recognized for quality and approved by the Project Manager. Both seed varieties shall be applied uniformly ( either by mixing or separate applications of 250 Ibs per acre in total. If the maximum discharge rate on the slit seeder does not meet the application rates, broadcast seeding will be allowed after the above procedures have been completed at the maximum rate setting. Upon completion of the drill seeding/broadcast seeding procedure, fields shall be dragged in two directions to set the seed in the soil and into the holes. G. Field areas will be fertilized using "starter" type fertilizer (15-15-15) to enhance germination and initial seed vigor. Fertilizer is to be evenly distributed at 10 pounds per 1,000 square feet. 21 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\Cl 0 135477 A- Loral\Contract Document Loral.doc H. Field areas will be top-dressed uniformly with a minimum of 1/4" inch layer of top dressing material, which shall be nitrogenized redwoodsawdust. I. CONTRACTOR shall be responsible for grow in of the renovated areas. This includes multiple daily irrigation(s) as necessary to provide optimum moisture conditions for turf germination (this includes weekends and holidays). The grow in period shall be not less than 15 days for preliminary germination of the ryegrasses. After this period, soil conditions will be kept at a moisture level sufficient for development and germination of the bluegrass seedlings, which is normally 25-30 days. Mowing may occur as necessary during this period. Loss of turf due to excessive irrigation and related water logging will be the responsibility of the Contractor. An expected germination and establishment rate of 95% of all seedlings is required. J. CONTRACTOR shall provide verification of seed varieties (seed label tags) and quantities (shipping tags) during and after each area of renovation. Contractor shall provide seeder calibration data and topdressing calibration data relative to application uniformity. CONTRACTOR will document all procedures and provide a daily diary of grow-in activities. K. Soccer field renovation shall be completed within 10 working days after the date upon which notice to proceed is issued. IX. GENERAL MAINTENANCE AND CLEANUP A. Leaf drop shall become part of the mulch layer in the tree, shrub or groundcover areas in an attractive manner and away from high traffic areas. Leaf drop shall not be allowed to enter stormdrains. Mulch shall be maintained uner all trees and shrubs and on bare soil with a minimum 3-inch layer of organic material. To the greatest extent practicable, CONTRACTOR shall not procure mulch products that originate from forest products. When possible CONTRACTOR shall give preference to mulch products that are produced on-site, or from regionally generated plant debris including that made at the City of Palo Alto. Clippings trimmings, cuttings generated by the Contractor that cannot be used as mulch shall be promptly removed from the work site at the end of the same day the work is performed. Dumpsters may not be used on the sites unless approved by Project Manager. B. All areas covered by this agreement, including but not limited to: areas around shrubs and trees, non landscaped islands, sidewalks, patios, planter beds, curbs and gutters shall be kept free from weeds, litter, rocks, glass 22 Rev. January 11, 2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER -CM FOLDERS\KA THY\Contra cts\CI0 135477 A- Loral\Contract Document Loral.doc and debris and shall contain. Debris includes,. but is not limited to: paper litter, household furniture, household appliances, cardboard, cigarette butts, animal feces, biohazards (human feces, hypodermic needles), illegal drug paraphernalia, and vehicle parts. Leaf litter shall be used as mulch according to specifications in IX Section A. C. All cracks in sidewalks, curbs, street gutters and other paved areas shall be kept weeded. D. All sites' paved areas, including play and picnic areas, shall be swept and cleaned of any dirt, debris, weeds, litter or soils. E. Picnic Area: All Tables, benches and barbecue pits shall be kept cleaned three times a week. They shall be washed off weekly between March and November. Picnic area tables and benches shall be scrubbed and washed using a biodegradable cleanser. F. All sand areas including sand volleyball courts shall be kept raked and cleaned of any debris. Playground and sand volleyball court shall be Rota tilled to relief compaction if needed and filled with sand as needed. G. All parks shall be inspected by contractor for glass and other safety Hazards by 10:00 a.m. H. All decomposed granite pathways must be raked and not blown where indicated by the Project Manager. During summer months decomposed granite pathways will be watered down prior to using an electric blower to clean the pathway were indicated by the Project Manager. I. Ornamental garbage enclosures and dumpster enclosures shall be washed and cleaned with a biodegradable cleaner once per month. J. Skate bowls, multipurpose bowls and handball courts must be cleaned as needed. Bowls are located at: Mitchell Park, Rinconada Park, Robles Park, Eleanor Park, and Hoover Park. Handball courts at Mitchell Park and a Skate Bowl at Greer Park. X. GARBAGE CANS AND ENCLOSURES All garbage cans must be emptied at the sites listed in this agreement. Garbage cans more than one half full must be emptied. Mechanically or physically compressing garbage is not permitted in lieu of emptying. All garbage cans must be emptied on Mondays and Fridays. All garbage cans must have a liner. CONTRACTOR is responsible for providing garbage can liners. Re-using soiled garbage can liners are not permitted. 23 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\Cl 0 135477 A- Loral\Contract Document Loral.doc Garbage can enclosures, a device used to conceal the garbage can, must be washed monthly using a Biodegradable cleaner. XI. HOMELESS PERSON ACTVITY CONTRACTOR shall alert the Project Manager to any signs of any homeless person activity on any sites listed in this agreement. Homeless person refuse will be classified in two ways: (1) Incidental litter/debris, including but not limited to: bottles/cans, clothing, foodstuff, toiletries, paper products. (2) Encampment debris, including but not limited to, large cardboard, plywood, shopping carts, blankets, sleeping bags, coolers, tents, tarps. CONTRACTOR at the request of the Project Manager must remove incidental litter/debris generated by any homeless activity. CONTRACTOR at the request of the Project Manager must remove encampment debris generated by any homeless activity. CONTRACTOR will be issued a free dump pass for disposal of encampment debris at the City of Palo Alto Landfill. XII. EQUIPMENT CONTRACTOR is to provide an inventory list of the equipment to be used during this project. The inventory list must include: description, model/make, picture, and VIN # (if applicable) of equipment to be used for the maintenance of the landscaped and non-landscaped grounds specified in this package. CONTRACTOR's equipment inventory must include: 36" -72" and a large riding mower with at least a 15' wing span, turf sweeper, and leaf blowers that satisfy the City of Palo Alto's noise ordinance requirements. CONTRACTOR shall at all times furnish and maintain sufficient equipment as necessary to perform the work of this contract. Such equipment shall be subject to the inspection and approval of the City's Representative. If the contractor is unable to consistently provide the necessary equipment to perform the work, it may be considered as grounds of canceling the contract. XIII. SITE LOCATIONS AND SPECIAL INSTRUCTIONS Site names, locations, address (when applicable) are listed below. Special maintenance instructions are listed, when applicable, for each site and must be adhered to, in addition to, all other maintenance requirements listed in these specifications. Maps of the various site locations are available on the City's Website (www/cityofpaloalto.org) under Other Resources-Purchasing and Current Solicitations. 24 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\Cl 0135477 A- Loral\Contract Document Loral.doc SPECIFICATION & REQUIREMENTS for GENERAL SITE AND ATHLETIC FIELD LANDSCAPE MAINTENANCE AT CUBBERLEY COMMUNITY CENTER GENERAL PROVISIONS The following provisions, where individually applicable, apply for maintenance standards not limited to Landscape and Turf Maintenance, Track Maintenance, and all other items selected as part of this proposal. LOCATION OF PROPERTY The locations of the areas to be maintained are located on the attached maps. The attached maps provide a general scope ofthe area(s) covered in this agreement. Contractors are invited to visit the site on their own prior to submitting a Bid. SCOPE OF WORK-Landscape Maintenance The contractor shall provide the highest quality of landscape maintenance services and materials. The contractor agrees to provide the highest quality commercially accepted methods, procedures and scientific controls for landscape maintenance. "Scientific Controls" is understood to mean practices based upon recommendations of the University of California, or similarly qualified experts; recommendations in University of California Cooperative Extension Publications and information in standard landscape industry references. This shall include the use of proper knowledge, skills, materials and equipment of a timely basis to maintain plantings in normal health, appearance and growth; control of diseases, pets and weeds and maintaining plantings in the designated areas in a neat, orderly appearance during the term of this contract. The contractor agrees to be continuously alert in locating and defining problems and agrees to exercise prompt and proper corrective action. Action times will be prioritized, and low priority items will be given a time line for corrections. A PRELIMINARY WRITTEN REPORT SHALL BE SUBMITTED FOR MAJOR CORRECTIVE PROBLEMS NOT COVERED IN THE CONTRACT. Contractor shall communicate landscape as well as non-landscape related hazards that are seen while on site. The contractor shall furnish landscape maintenance services by qualified site managers and hortiCUlturists in order to provide a maintenance program at the Cubberley Community Center. Services to be provided include maintenance of shrubs, ground cover, vines, turf, walkways, and sidewalk trimming on Nelson Ave., softball fields, CITY of PALO ALTO: IFB #129844 (2009-2010) SPECIFICATIONS - 1 26 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER·CM FOLDERS\KA THY\Contra cts\Cl 0135477 A- Lora1\Contract Document Lora1.doc · Failure to submit a maintenance program within the allotted time period will be considered a non-responsive action, and non-responsiveness will be grounds for termination of this agreement. B. Required Reports Monthly Progress Reports MONTHLY, the contractor shall provide the City's Cubberley Community Center, with monthly progress reports, based on and referenced in the maintenance program. The reports will be due no later than the tenth day of the month following services, and is to include the following information: 1. Total on-site labor, supervision, and horticultural hours provided. This can be in a' spreadsheet format with all applicable sites covered under this agreement. 2. Problem areas encountered during the month. 3 Monthly application reports for all materials applied. This will include application date, mater.ials, amount of material applied, etc. 4. Any additional reports as directed by the CubberJey Community Center Facility Manager. Inventory/Material Safety Data Sheets Within thirty (30) days of the effective date of this agreement, the contractor will submit to the City a list of all chemicals that will be used by the contractor on the sites, together with the required Material Safety Data Sheets (MSDS). MSDS sheets and product labels shall be in applicator's vehicle. Integrated Pest Management Within thirty (30) days of acceptance of this agreement, the contractor shall submit an Integrated Pest Management Program for the site. This IPM will be reviewed annually for updates and modifications. (Reference: City of Palo Alto I.P.M. Plan) Reports shall be submitted in a timely manner and shall contain accurate and current information regarding the Contractor's performance at each site.' Failure to supply these reports in an accurate and timely manner shall be considered a breach of this agreement. 28 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\Cl 0 135477 A- Lora\\Contract Document Loral.doc C. Extra Projects/Landscape Upgrades: All extra projects shall require the submission of a Project Proposal Form or a Work Order Authorization Form. If the contractor does not have available such a form, a mutually agreeable format will be developed. On any extra project or landscape upgrade, the City reserves the right to obtain competitive bids. D. Management Philosophy: The contractor shall take a pro-active approach in correcting problems within the contractors' span of responsibility and control. Other problems and suggestions for improvements, both short and long term, must be submitted promptly to the City for appropriate action. Contractor employees shall wear company uniforms, which consist of long pants and shirts with company name and individuals name on the shirt. Contractor's staff when appropriate will utilize rain gear, rain boots, safety shoes, hard hats and safety glasses. A. clean, neat professional appearance shall be exhibited by all contracted employees while on site. Contractor's equipment and vehicles shall also be professional in appearance, exhibit the company logo and be well maintained for safe operation. E. Exclusions The City shall pay for execution of projects excluded from the normal cost of landscape maintenance, which shall be identified by the City of Palo Alto Cubberley Community Center Facility Manager. The City is responsible for repairs and corrections to problems caused by natural calamities, vehicle accidents by non-contractor personnel, and other causes beyond the responsibility of the City. Any and all other exclusions agreed upon by both the City and the contractor shall be indicated in writing and made part of this agreement. DEFINITIONS A. Responsible parties referred to as City of Palo Alto or City are deemed to refer to the Cubberley Community Center Facility Manger. The Contractor shall begin work after receiving written notice to proceed from the Cubberley Community Center Facility Manager. CITY of PALO ALTO: IFB #129844 (2009-2010) SPECIFICATIONS - 4 29 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI 0 135477 A- Loral\Contract Document Lora1.doc I.P.M. POLICIES AND PROGRAMS The City of Palo Alto has adopted a policy and procedure for pest control decisions for an effective way to respond to the questioning public and at the same time improve the agency's internal decision-making process, resulting in more efficient, effective and safe resolution of pest problems. Our goal is a pest management strategy that focuses on long-term prevention or suppression pest problems with minimum impact on human health, the environment and non-target organisms. Preferred biological control, using alternate plant species or varieties that resist pests, selecting pesticides with a lower toxicity to humans or non- target organisms; adoption of cultivating, pruning, fertilizing or irrigation practices that reduce pest problems; or changing the habitat to make incompatible with pest development. Broad spectrum pesticides are used as a last resort when careful monitoring indicates that are needed according to pre-established guidelines. When treatments are necessary, the least toxic and most target-specific pesticides are chosen. Implementing an Integrated Pest Management Program requires a thorough understanding of pests, their life histories, their environmental requirements and natural enemies as well as establishment of a regular, systematic program for surveying pests, their damage and/or other evidence of their presence. A. Guidelines to be followed each time a pesticide is used: B. Choose the safest material that is effective. C. Consider the potential for treating only the most seriously infested areas to allow survival of natural enemies. D. Pesticide must be registered in California. E. Written recommendation for using the pesticide to be made by a licensed pest control advisor. F. All safety equipment and clothing must be in hand. G. Verity that the person doing the application is certified under California E.P.A. Regulations. H. After the application, monitor the pest population to see if the treatment was effective; written records will be maintained. I. (MSDS) sheets for the pesticide to be used are to be available at time of application. CITY of PALO ALTO: IFB #129844 (2009-2010) SPECIFICATIONS - 5 30 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CIO 135477 A- Loral\Contract Document Loral.doc J. Application equipment must be appropriate for the job and calibrated properly. K. Be prepared for all emergencies; knowing who to call for help and interim measures to take before help arrives. Presently, an integrated pest control program is used in all areas of the City, including street trees, parks and median strips. MATERIALS All materials shall be provided by the Contractor and shall be the highest quality available. Commercial fertilizers, insecticides, fungicides and herbicides shall bear the manufacturer's label, guaranteed analysis, and approved for use by the Site Manager. A. Water is to be furnished by the City. B. Fertilizer shall be complete fertilizer furnishing the required percentage of nitrogen, phosphoric acid and potassium to keep lawns, trees, shrubs and other plants in a healthy and'vigorous growing condition. C. Soil Testing of the athletic field areas is to be provided annually by the Contractor. Testing shall be completed between the months of April and June. Soil Testing will not be done directly after any late spring periods of heavy rainfall. Soil testing shall be done by mutually agreed upon soil testing lab. One composite test of the football field area and one composite test of the athletic fields area will be sufficient. Tests will be normal agricultural suitability analysis, exclusive of fertilizer elements. Once complete, the soil analysis will be copied to the site manager. Discussions of the soil test results between the site manager and the contractor will determine the proper maintenance program for the following season. Applications of elements as recommended will be the responsibility of the contractor. D. Insecticides, fungicides, herbicides shall be of the highest quality obtainable, brought to the job site in the original manufacturer's containers, properly labeled with guaranteed analysis. Any necessary permits, recommendations, etc. shall be the responsibility of the Contractor. E. Tree stakes, tree ties, guy wires shall be of materials to match those existing on the site or approved equal. F. Prior to beginning maintenance the Contractor and the City's representative shall inspect and inventory all plants, trees and shrubs to determine their number and condition. CITY of PALO ALTO: IFB #129844 (2009-2010) SPECIFICATIONS -6 ' 31 Rev, January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\KA THy\Contra cts\CI 0135477 A- Loral\Contract Document Loral.doc SHRUB, TREE, AND GROUND COVER CARE Maintain shrubs, ground covers and trees in a healthy growing condition by performing the following operations and other work incidental thereto: A. Pruning and Trimming 1. All pruning and trimming shall be done by qualified professional personnel using ISA recognized and approved standards and techniques. a. Excessive pruning or stubbing back will not be permitted. b. All pruning cut shall be properly made, They shall be cleanly cut with no tearing of the bark using natural target pruning methods. (City Arborist is available iffurther instruction is needed.) c. The Contractor is responsible for replacing, at their cost, any damage to plant materials caused by excessive pruning, improper pruning techniques, poor equipment, etc. . 2. All dead or damaged branches shall be removed. 3. Pruning and trimming of shrubs and ground cover shall be done a minimum of twice a year to achieve the following: a. To cut back branches that is rubbing on walks, fences and buildings including shrubs and vines along Nelson Avenue. d. Trees shall be maintained at an 84" height from the ground (ADA Act). 4. Major pruning of shrubs shall be done during the dormant season. Minor pruning may be done during the spring and fall seasons. 5. Any tree maintenance over 15' in height shall be covered under a separate contract, either with the City Arborist staff or as defined under "Extra Projects/Landscape Upgrade." Contractor will report any apparent decline of trees to the Site Manager. a. Tree stakes shall be removed as trees mature. Tree ties will be adjusted at least annually to accommodate tree growth. CITY of PALO ALTO: IFB #129844 (2009-2010) . SPECIFICATIONS -7 32 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\Cl 0135477 A- Lora\\Contract Document LoraLdoc accordance with all governing regulations. A copy of the applicator license must be provided after each renewal to the Site Manager. The Contractor must provide, within 30 days of the Notice to Proceed, their Pest Control Operators License, and the names and license/certification numbers of any individuals responsible for or applying pesticides in accordance with this agreement. 4. All plant infestations shall be reported to the Site Manager. All pesticide applications (herbicides, insecticides, fungicides, rodenticide, growth regulators, etc.) shall be cleared with the Cubberley Comm1,Jnity Center Facility Manager prior to application. Records of all operations stating dates, times, methods of application, chemical formulations, applicators names and weather conditions shall be made and retained in an active file for a minimum of three (3) years. 5. A written report of all applications shall be provided to the Cubberley Community Center Facility Manager (see Landscape Maintenance Program, General Provisions, Section B-3). 6. All chemicals requiring a special permit for use must be registered with the county Agricultural Commissioner's Office and a permit obtained with a copy to the CubberJey Community Center Facility Manager. All current permits and consultation by Pest Control Advisors shall be included in the agreement. 7. All regulations and safety precautions listed in the Pesticide Safety Information Series (PSIS) published by the California Department of Pesticide Regulation shall be adhered to . . , 8. Spraying is not permitted during heavy traffic periods or when windy. No spraying will be permitted without prior approval by the Site Manager . . 9. In the event of visible evidence of such pests, contractor will restore the area to its proper condition if the damage is current and prevention is within the contractor's control. 10. Contractor agrees to control gophers, squirrels, moles and other rodents causing damage to City Property under the site area of responsibility. 11. Contractor shall replace any plant material that has suffered severely due to lack of proper pest control, if such pest control is possible and practicable. CITY of PALO ALTO: IFB #129844 (2009-2010) SPECIFICATIONS - 9 34 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI 0 135477 A- Loral\Contract Document Lora1.doc 12. All treated areas must be monitored during and after pesticide application until material has settled and treatment area is completely dry. No unprotected person, pet, or wildlife may enter a treated area until all re~ entry intervals have been satisfied. D. Weeding All turf, shrub, ground covers, flowerbeds, paved areas, etc. shall be kept weed free by using cultural methods, pre~emergent herbicides, and post-emergent herbicides. Weeds shall be removed whenever the appearance becomes unsightly or when requested to do so by the Cubberley Community Center Facility Manager. The herbicide Round Up, or equivalent, will be permitted for this control. Maximum weed population permitted is three (3) weeds per square yard of bed, and no weed shall remain over one (1) full week (seven-clay period). Use of Round Up is restricted to specified weed abatement problems. It cannot . be used in place of trimming. All use should be approved by the Site Manager, or designated representative. Contractor shall be responsible for adhering to all practices in Palo Alto's I~tegrated Pest Management Program. E. Staking and Guying Maintain and replace stakes, guys and plant ties with equal material. To provide support without chafing of bark. Additional stakes and/or guys shall be placed to correct misshaping caused by wind. Stakes and guys shall be removed upon request of Site Manager. F. Fertilization Fertilize all shrub and ground cover areas two (2) times a year, in March and October, with an approved complete fertilizer at the following rates for each application: 1. One half-pound nitrogen per 1,000 square feet for shrubs, trees and landscape materials. 2. Fertilizer: 24-18-9 controlled slow release type material. G. Replacement of Material Remove dead and damaged plants and replace with material of equivalent size, condition and variety, subject to approval and purchase owner's representative. Labor shall be provided by the Contractor in a timely manner. Plant material shall be provided by the City's Cubberley Community Center unless damage is CITY of PALO ALTO: IFB #129844 (2009-2010) SPECIFICATIONS -10 35 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\Cl 0135477 A- Lora1\Contract Document Lora1.doc . caused by Contractor's negligence (i.e. chemical damage, mechanical damage, water stress.) Damage not resulting from Contractor's negligence, such as vandalism, vehicle, . or weather shall be reported promptly to the Site Manager together with an estimate of costs for correction of the condition. Damage resulting from Contractor's negligence shall also be reported promptly to the Site Manager. Labor and materials shall be provided by the Contractor. TURF MAINTENANCE Turf areas shall be maintained in a healthy, safe, growing condition by performing the following operations and other work incidental thereto: A. Mowing -All turf areas are to be mowed minimum of once a week. This is currently scheduled for Fridays no earlier than 8:00 A.M as specified under the Palo Alto Noise Ordinance. Changes in this schedule may only be ;:lpproved by the Site Manager for conflicts with holidays or scheduling problems. Mower settings are to be at 2" in height. Mower settings may be changed to meet the demands and the Site Manager has the authority to request to change the settings. At no time shall more than 113 of the grass be removed in anyone mowing. If rain prohibits a weekly mowing, adjust the mowing height and mow the field at least twice until the desired level has been achieved. If multiple mows are required, at least a one-day period of time in between is required to allow the turf to recover. Turf areas should not be mowed in the same pattern repeatedly. B. Edging -All turf edging shall be edged at least once per month. Examples of edges: along pathways, walkways, around shrubs, trees, sprinklers heads. valve boxes, mow bands, curbs, benches, light poles, or any other fixed object. Herbicide shall not be used as an edging tool. Care must be taken not to damage trees, shrubs, or any other fixed object with edging equipment. String trimmer damage to trees and roots will not be tolerated. C. Aerification -All turf areas are to be aerified once a year. Project scheduling is to be coordinated with the Site Manager. Core size shall b~ at least 3/4" in diameter and 8" in depth. Cores need not be removed, however, field must be either dragged for mowed or break up cores. Flag/mark irrigation system heads, valve boxes, and quick couplers. Contractor is responsible for repairing any damaged caused by aerification equipment. CITY of PALO ALTO: IFB #129844 (2009-2010) SPECIFICATIONS -11 36 Rev. January.ll, 2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\Cl 0 135477 A- Loral\Contract Document Loral.doc . B. All areas covered by this agreement, including artificial turf but not limited to: all . ground cover areas, areas around shrubs and trees, non-landscaped islands, sidewalks, curbs and gutters shall be kept free from weeds, litter, rocks, glass and debris. Debris including, but not limited to: paper litter, leaf and plant debris, household furniture, household appliances, oardboard, cigarette butts, animal feces, biohazards (human feces, hypodermic needles), illegal drug paraphernalia, and vehicle parts. C. All cracks in sidewalks, curbs, street gutters and other paved areas shall be kept weeded. D. All islands and paved areas shall be swept and cleaned of any dirt, debris, weeds, litter or soils. E. Monthly Progress Reports. (See "Scope of Work, Section B) EXTRA WORK A condition of this contract is that the Contractor does work not specified in this contract when requested by the City's Site Manager. The Contractor is to be paid for this work at the hourly rate the Contractor has specified on the Bidders Bid Page and is to provide the necessary materials and be reimbu~ed by the City at cost. The Contractor is to provide "Field Quotation,· which outlines the scope of work and the cost of the work. WORK SCHEDULES A weekly schedule shall be provided by the contractor indicating the sites where items of work are performed in accordance with the performance requirements of the contract. The initial schedule shall be submitted one week prior to the effective date of the contract. Changes to the schedule shall be received by the ~ite Manager no later than 24 hQlurs prior to the scheduled time for the work, Failure to properly notify or to perform an item of work on the day scheduled may result in deduction of payment for that day or work. The Contractor shall adjust his schedule to compensate for all holidays and program uses. A. General landscape maintenance at the Cubberley Community Center shall conform to all of the "General Provisions" as stated in this document. Specific provisions are as follows: 1. General maintenance tasks shall be performed according to the maintenance frequencies schedule for Cubberley Community Center. CITY of PALO ALTO: IFB #129844 (2009-2010) SPECIFICATIONS -13 38 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CIO 135477 A- LoraI\Contract Document Loral.doc 2. . CONTRACTOR'S Maintenance Supervisor shall communicate (in person) with the Site Manager twice monthly regarding status of the maintenance tasks and scheduling. 3. Maintenance tasks shall be scheduled to minimize interference with activities of tenants and users of the Cubberley Community Center. CONTRACTOR needs to be flexible and adjust work tasks as needed. 4. Electric air blowing is permitted in all areas, using modern low noise machines (65 decibels or less). Both the blower operator and the machines must be certified by the Palo Alto Police Department. Copies of the certifications must be provided to the Cubberley Community Center Facility Manager. Operators are to be sensitive to Center users and tenants by keeping blowers at low speeds or turning off if they are nearby. 5. Electric air blowing of areas adjacent to the tennis courts shall be done in a manner that will prevent debris from going onto the courts. If this is not possible, the courts .must also be air blown. 6. Additional Maintenance Requirements: NON-LANSCAPED AREAS Weed Control: The following areas shall be kept weed free at all times: a. On Nelson Drive between the fence and sidewalk and one foot inside the fence. b. From Nelson Drive, along the asphalt fire lane by the football bleachers and to the Southeast end of the tennis courts. c. Along the fence and fire lane on the Northwest end from Nelson Drive to Middlefield Road. d. Around the perimeter of the tennis courts. e. Around the track, around and under football stands, around ball field fences, backstops, soccer goal posts and the old garden area. f. Inside the pump station fence located by the fire lane at the northwest end of the property. CITY of PALO ALTO: IFB #129844 (2009-2010) SPECIFICATIONS -14 39 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CIO 135477 A- Loral\Contract Document Loral.doc B. For material, the Contractor shall submit the wholesale receipt plus markup for reimbursement of materials. The Contractor shall state their percentage markup on the bid page. The bid page will include a line for Contractor to state their percentage. The hourly rate for irrigation maintenance shall include repair/replacement time, equipment, cleanup, and any necessary debris removal. The hourly quotation shall include: 1. Time for work performed only at the Cubberley Community Center site. 2. The Contractor shall be paid on an hourly basis for time actually worked at the facility, with a maximum travel time of one hour. 3. Contractor shall be responsible for cleanup and removal of all debris. 4. Work locations, including access points, will be under the direction of tlie Cubberley Community Center Site Manager and the onsite Maintenance supervisor .. Contractor shall be' responsible for damage to turf or irrigation lines Caused by the Contractor's eqUipment outside of the deSignated access points. 5. Contractor shall provide a qualified irrigation specialist to perform the required work described above. C. Track Maintenance CONTRACTOR shall maintain the track on a monthly basis during the contract -term according to the Scope of Services. CONTRACTOR shall provide the equipment, materials and labor necessary to perform the required services. Scope and Schedule 1. Remove weeds from the track running surface as necessary to maintain a "0" (zero) weed population. Remove all leaves and debris from the track surface weekly. 2. Drag the track surface lightly twice monthly with a tooth drag and moisten while maintaining a firm, level and safe running surface. Surface to be dragged from the outside edge inward. CITY of PALO ALTO: IFB #129844 (2009-2010) SPECIFICATIONS -15 40 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\ClO 135477 A- Lorai\Contract Document Loral.doc . sports, education, dance; arts, meetil1j Yooms, music, cluld caYt; special events, and so much moYe .... IVlap legfmtl rI Disabled Parking $ Public Pay Telephone lJ D Public Restrooms liD In case of emergency dial 911 I1l Fire extinguishers are located in eve ry room 42 Cubberley Communi iy Cent'ilr 4000 Middlefield Road, Palo Alto, CA 94303 650/329,2418 650/856,8756 fax www.cityofpaloalto.org Administrative Of'ikes Room T2 Office Hours Monday -Friday, 8:30am -7:30pm Rev, January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\KATHy\Contra cts\Cl 0135477 A- Loral\Contract Document Loral.doc Workers will be trained on species identification so they know which plants to remove at every growth stage, and which plants to leave in place and avoid hanning. Training in methods of removal can be done also. Workers will be supervised by staff o~ knowledgeable Friends of Foothills Park volunteers until all are comfortable with species identification and removal methods. Schedule: Seasons may run earlier or later depending on weather. In general, all species may be removed all year long, but incidental seed dispersal at senescence is to be avoided. Locations: The plots are vary in size and are scattered throughout the park. Most sites are near trails or roads. Some sites are more remote but can be reached via a combination of paved road or fire road and trail. Sites may be viewed online in Google Maps at http://bit.ly/FriendsMap (case sensitive). This map best shows the individual sites that are referred to (e.g., YST 1, FB 6, etc.). See following maps. 44 Map 1: Overview of Foothills Park work sites. Foothills Park outlined in green. Work zones are outlined in red. 45 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\KATHy\Contra cts\CI0135477A- Lora1\Contract Document Loral.doc Map 2: Approximate locations of work sites using Foothills Park trail map 46 Map 4: Zone 2 Italian Thistle (purple) IT 1,2,5, 10; Yellow Starthistle (yellow) Sites YST 14; Poison Hemlock (blue) PH 1-3 Las Trampas Valley and Wildhorse Valley 48 Friends of Foothills Park Work Sites 2009 Acreage YELLOW STARTHISTLE ZONE 1 YST 1 4.06 YST1 4.06 YST2 1.61 YST2 1.61 YST3 0.05 YST3 0.05 YST5 0.11 YST5 0.11 YST7 1.42 YST10 1.32 YST10 1.32 YST 11 2.21 YST 11 2.21 YST15 0.31 YST14 1.06 IT3 trailside YST15 0.31 IT4 trailside YSTTotal 12.15 ·IT6 0.02 IT9 0.09 ITALIAN THISTLE IT 13 0.10 IT 1 1.54 9.88 IT2 1.38 IT3 trailside IT4 trailside ZONE 2 ITS same as YST 14 IT 1 1.54 IT6 0.02 IT2 1.38 IT9 0.09 IT3 trailside IT 10 0.40 IT4 trailside IT 13 0.10 ITS same as YST 14 IT Total 3.53 IT6 0.02 IT9 0.09 FRENCH BROOM IT 10 0.40 FB 1 0.1 within YST 7 YST14 1.06 FB2 0.88 PH 1 0.10 FB3 1.05 PH2 0.15 FB4 0.23 PH 3 0.40 I;B 5 0.56 5.03 FB6 1.02 FB 7 0.47 FB8 0.84 ZONE 3 FB Total 5.05 FB 1 0.1 within YST 7 FB2 0.88 POISON HEMLOCK FB 3 1.05 PH 1 0.10 FB4 0.23 PH2 0.15 FB5 0.56 PH 3 0.40 FB6 1.02 PH Total 0.65 FB 7 0.47 FB 8 0.84 YST7 1.42 6.47 Total Acreage 21.38 21.38 50 Photographs of Target Species: Yellow Starthistle 51 52 French Broom 54 EXHIBITB SCHEDULE OF PERFORMANCE CONTRACTOR shall perform the Services according to the schedule of Services for both Section I and Section M as outlined and detailed in the Scope of Services, Exhibit A 55 .EXHIBITC COMPENSATION All Payments are. based upon City's acceptance of Contractor's performance of the Services. The maximum amount of compensation to be paid to Contractor, over the three year Term of this Agreement, including both payment for services and reimbursable expenses, shall not exceed One Hundred Eighty One Thousand Eight Hundred Fifty Four Dollars ($181,845.00). Any hours worked for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to City. Annual Compensation for the Three Year Term, (payable in Monthly allotments), will be paid out Year as follows: Year 1 (July 1, 2010 through June 30, 2011) = $33,600.00 Year 2 (July 1, 2011 through June 30, 2012) = $53,808.00 Year 3 (July 1, 2012 through June 30, 2013) = $94,446.00 Total: = $181,845.00 Specific areas awarded are included in Exhibit C 1. The City will compensate Contractor for Services performed pursuant to the terms and conditions of this contract and accepted by the City. 56 EXHIBITD INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST'S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. . A WARD IS CONTINGENT ON COMPLIANCE WITH CITY'S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW' MINIMUM LIMITS REQUIRED TYPE OF COVERAGE REQUIREMENT EACH YES YES YES YES YES YES OCCURRENCE AGGREGATE WORKER'S COMPENSATION STATUTORY EMPLOYER'S LIABILITY STATUTORY BODILY INJURY $1,000,000 $1,000,000 GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE $1,000,000 $1,000,000 PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY $1,000,000 $1,000,000 LIABILITY DAMAGE COMBINED. BODILY INJURY $1,000,000 $1,000,000 -EACH PERSON $1,000,000 $1,000,000 AUTOMOBILE LIABILITY, -EACH OCCURRENCE $1,000,000 $1,000,000 INCLUDING ALL OWNED, HIRED, PROPERTY DAMAGE $1,000,000 $1,000,000 NON-OWNED BODILY INJURY AND PROPERTY $1,000,000 $1,000,000 DAMAGE, COMBINED PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL INSUREDS" 58 EXHIBIT E Contractor's Performance Surety Bond WHEREAS, the City Council of the City of Palo Alto, State of California ("City") and , ("Principal") have entered into an agreement dated , and identified as TBD , which is hereby referred to and made a part here of whereby Principal agrees to install and complete certain designated public improvements; and WHEREAS, Principal is required under the terms of said agreement to furnish a surety bond for the faithful performance of said agreement. NOW, THEREFORE, Principal and _____________________ , as Surety, incorporated under the Laws of the State of , and duly authorized to transact business as an admitted surety, under the Laws of the State of California, are held and firmly bound unto City in the penal sum of __________ _ ($ ), for the payment whereof Principal and Surety bind themselves, their heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents. The condition of this obligation is such that if the Principal, Principal's heirs, executors, administrators, successors, or assigns shall promptly and faithfully keep and perform the covenants, conditions, and provisions of the above-mentioned agreement and any alteration thereof, with or without notice to the Surety, and if Principal shall satisfy all claims and demands incurred under such agreement and shall fully protect, indemnify, defend, and hold harmless City, its officers, agents, and employees from all claims, demands, or liabilities which may arise by reason of Principal's failure to do so, and shall reimburse and repay City all outlay and expenses which City may incur in making good any default, then this obligation shall be null and void; otherwise, it shall remain in full force and effect. As part of the obligations secured hereto, and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees incurred by City in successfully enforcing such obligations, all to be taxed as costs and included in any judgment rendered. Surety shall be liable for any liquidated damages for which the Principal may be liable under its agreement with the City, and such liquidated damages shall be part of the obligations secured hereto, and in addition to the face amount specified therefore. The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the agreement or to the work to be performed thereunder or the specifications accompanying the same, shall in any way affect its obligations on this bid security, and it does hereby waive notice of any such change, extension of time, alteration, or addition to the terms of the agreement or to the work or to the specifications. IN WITNESS WHEREOF, this instrument has been duly executed by the Surety above named on , 2006. 60 EXHIBIT E-! Contractor's Payment (Labor and Materials) SURETY BOND WHEREAS, the City Council of the City of Palo Alto State of California ("City") and , ("Principal"), have entered into an agreement dated , and identified as TBD , which is hereby referred to and made a part here of, whereby Principal agrees to install and complete certain designated public improvements; and WHEREAS, under the terms of said agreement, Principal is required before entering upon the performance of the work to file a good and sufficient payment surety bond with the City of Palo Alto to secure the claims to which reference is made in Title 15 (commencing with Section 3082) of Park 4 of Division 3 of the Civil Code of the State of California. NOW, THEREFORE, Principal and ____________________ , as Surety, incorporated under the laws of the State of , and duly authorized to transact business as an admitted surety, under the Laws of the State of California, are held and firmly bound unto City in the penal sum of ___________ ($ ), for the payment whereof Principal and Surety bind themselves, their heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents. The condition of this obligation is such that if Principal, Principal's subcontractors, heirs, executors, administrators, successors, or assigns shall fail to pay any of the persons, companies, or corporations, referred to in Section 3181 of the California Civil Code, as amended, with respect to any work of labor performed or materials supplied by any such persons, companies, or corporations, which work, labor, or materials are covered by the above-mentioned agreement and any amendments, changes, change order, additions, alterations, or modifications thereof, or any amounts due under the California Unemployment Insurance Code with respect to such work or labor, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the contractor and his subcontractors pursuant to Section 13020 of the Unemployment Insurance Code, as amended, with respect to such work and labor, the Surety will pay for the same, in an amount not exceeding the sum herein above specified, and also, in case suit is brought upon this bid security, the Surety will pay a reasonable attorney's fee to be fixed in court. It is hereby expressly stipulated and agreed that this surety bond shall inure to the benefit of any and all·persons, companies, and corporations entitled named in Section 3181 of the California Civil Code, as amended, so as to give a right of action to them or their assigns in any suit brought upon this surety bond. 62 CITY OF PALO ALTO CONTRACT NO. ClO135477 GENERAL SERVICES AGREEMENT THIS AGREEMENT made and entered into on the 1st day of JULY, 2010, by and between the CITY OF PALO ALTO, a California Chartered Municipal Corporation ("CITY"), and GACHINA LANDSCAPE MANAGEMENT, a California Corporation, located at 1130 O'Brien Drive, Menlo Park, Ca 94025, Telephone Number: 650-853-0430 ("CONTRACTOR"). In consideration of their mutual covenants, the parties hereto agree as follows: 1. SERVICES. CONTRACTOR shall provide or furnish the services ("Services") described in the Scope of Services, attached as Exhibit A. 2. EXHIBITS. The following exhibits are attached to and made a part of this Agreement: IZI "A" -Scope of Services IZI "B" -Schedule of Performance IZI "C" -Compensation IZI "D" -Insurance Requirements IZI "E" -Performance and/or Payment Bond D "F" -Liquidated Damages CONTRACT IS NOT COMPLETE UNLESS ALL EXHIBITS ARE ATTACHED. 3. TERM. The term of this Agreement is from July 1, 2010 to June 30, 2013 inclusive, subject to the provisions of Section 8, Q and V, of the General Terms and Conditions (GTAC). To the extent the budget for FY 2010-11 as adopted by the Council would require a modification of this Agreement's term, commencing July 1,2010, as determined by the City, the parties agree to modify the term, as amended, within ten (10) days after the budget for this Agreement is adopted. 4. SCHEDULE OF PERFORMANCE. CONTRACTOR shall complete the Services within the term of this Agreement in a reasonably prompt and timely manner based upon the circumstances and direction communicated to CONTRACTOR, and if applicable, in accordance with the schedule set forth in the Schedule of Performance, attached as Exhibit B. Time is of the essence in this Agreement. 5. COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees to accept as not to exceed compensation for the full performance of the Services and reimbursable expenses, if any: The total maximum lump sum compensation of dollars ($ );OR o The sum of dollars ($ ) per hour, not to exceed a total maximum compensation amount of dollars ($ ); OR o A sum calculated -in accordance with the fee schedule set forth in Exhibit C, not to exceed a total maximum compensation amount of One Million Seven Hundred Ninety Two Thousand Nine Hundred Fifty dollars ($1,792,950.00). 1 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TlONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\Cl 0 135477- Gachina\Contract Document.doc CONTRACTOR agrees that it can . perform the Services for an amount not to exceed the total maximum compensation set forth above. Any hours worked or services performed by CONTRACTOR for which payment would result in a total exceeding the maximum amount of compensation set forth above for performance of the Services shall be at no cost to CITY. The City has set aside the sum of One Hundred Seventy Nine Thousand Two Hundred Ninety Five dollars ($179,295.00) for Additional Services. CONTRACTOR shall provide Additional Services only by advanced, written authorization from the City Manager or designee. CONTRACTOR, at the CITY's request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONTRACTOR's proposed maximum compensation, including reimbursable expense, for such services. Compensation shall be based on the hourly rates set forth above or in Exhibit C (whichever is applicable), or if such rates are not applicable, a negotiated lump sum. CITY shall not authorize and CONTRACTOR shall not perform any Additional Services for which payment would exceed the amount set forth above for Additional Services. Payment for Additional Services is subject to all requirements and restrictions in this Agreement. 6. COMPENSATION DURING ADDITIONAL TERMS. o CONTRACTOR'S compensation rates for each additional term shall be the same as the original term; OR ~ CONTRACTOR's compensation rates shall be adjusted effective on the commencement of each Additional Term. The lump sum compensation amount, hourly rates, or fees, whichever is applicable as set forth in section 5 above, shall be adjusted by a percentage equal to the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers for the San Francisco-Oakland-San Jose area, published by the United States Department of Labor Statistics (CPI) which is published most immediately preceding the commencement ofthe applicable Additional Term, which shall be compared with the CPI published most immediately preceding the commencement date of the then expiring term. Notwithstanding the foregoing, in no event shall CONTRACTOR's compensation rates be increased by an amount exceeding five percent of the rates effective during the immediately preceding term. Any adjustment to CONTRACTOR's compensation rates shall be reflected in a written amendment to this Agreement. 7. INVOICING. Send all invoices to the CITY, Attention: Project Manager. The Project Manager is: Mark Ribeiro, Dept.: Community Services, Parks And Golf Division , Telephone: 650-496-5928. Invoices shall be submitted in arrears for Services performed. Invoices shall not be submitted more frequently than monthly. Invoices shall provide a detailed statement of Services performed during the invoice period and are subject to verification by CITY. CITY shall pay the undisputed amount of invoices within 30 days of receipt. 8. GENERAL TERMS AND CONDITIONS A. ACCEPTANCE. CONTRACTOR accepts and agrees to all terms and conditions of this Agreement. This Agreement includes and is limited to the terms and conditions set forth in sections 1 through 7 above, these general terms and conditions and the attached exhibits. B. QUALIFICATIONS. CONTRACTOR represents and warrants that it has the expertise and qualifications to complete the services described in Section 1 of this Agreement, entitled "SERVICES," and that every individual. charged with the performance of the services under this Agreement has sufficient skill and experience and is duly licensed or certified, to the extent such licensing or certification is required by law, to perform the Services. CITY expressly relies on CONTRACTOR's representations regarding its skills, knowledge, and certifications. 2 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCIDSOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI 0 135477- Gachina\Contract Document.doc CONTRACTOR shall perform all work in accordance with generally accepted business practices and performance standards of the industry, including all federal, state, and local operation and safety regulations. With respect to certifications referred to in the preceding sentence, CONTRACTOR shall certify, in writing, to the CITY that CONTRACTOR has obtained a criminal record clearance and the fingerprinting of each permanent employee of CONTRACTOR and each temporary employee who substitutes for a permanent employee in the latter employee's absence before such employee will be authorized to perform work on behalf of CONTRACTOR in Palo Alto under this Agreement. Fingerprinting will be performed by Lifescan Services; 711 Serra Street, Palo Alto, CA, (PH) 650 725-2499. CONTRACTOR shall coordinate with the CITY's project manager to ensure the performance of these tasks. CONTRACTOR's certification, which shall be proposed by the CITY if CONTRACTOR does not wish to issue a certification as to form, shall be provided at the commencement of the term and on each occasion as new and substitute employees are hired to perform work under this Agreement and are identified to the CITY's project manager, in writing. If any such employee has not been cleared for employment as required by this Agreement and such employee performs work in Palo Alto, CONTRACTOR shall be deemed in breach of this Agreement and the provisions of Q. TERMINATION shall apply. The CITY reserves the right, acting by the CITY's project manager, to require the immediate removal of any such employee of CONTRACTOR who has not cleared a criminal background check and been fingerprinted from the CITY's premises which are covered by the work under this Agreement. C. INDEPENDENT CONTRACTOR. It is understood and agreed that in the performance of this Agreement, CONTRACTOR and any person employed by CONTRACTOR shall at all times be considered an independent CONTRACTOR and not an agent or employee of CITY. CONTRACTOR shall be responsible for employing or engaging all persons necessary to complete the work required under this Agreement. D. SUBCONTRACTORS. CONTRACTOR may not use subcontractors to perform any Services under this Agreement unless CONTRACTOR obtains prior written consent of CITY. CONTRACTOR shall be solely responsible for directing the work of approved subcontractors and for any compensation due to subcontractors. E. TAXES AND CHARGES. CONTRACTOR shall be responsible for payment of all taxes, fees, contributions or charges applicable to the conduct of CONTRACTOR's business. F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services comply with all applicable federal, state and local laws, ordinances, regulations, and orders. G. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole expense, repair in kind, or as the City Manager or designee shall direct, any damage to public or private property that occurs in connection with CONTRACTOR's performance of the Services. CITY may decline to approve and may withhold payment in whole or in part to such extent as may be necessary to protect CITY from loss because of defective work not remedied or other damage to the CITY occurring in connection with CONTRACTOR's performance of the Services. CITY shall submit written documentation in support of such withholding upon CONTRACTOR's request. When the grounds described above are removed, payment shall be made for amounts withheld because of them. H. WARRANTIES. CONTRACTOR expressly warrants that all services provided under this Agreement shall be performed in a professional and workmanlike manner in accordance with generally accepted business practices and performance standards of the industry and the ,requirements of this Agreement. CONTRACTOR expressly warrants that all materials, goods and equipment provided by CONTRACTOR under this Agreement shall be fit for the particular purpose intended, shall be free from defects, and shall conform to the requirements of this Agreement. CONTRACTOR agrees to promptly replace or correct any material or service not in 3 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER -CM FOLDERS\KA THY\Contra cts\CI 0 135477" Gachina\Contract Document.doc compliance with these warranties, including incomplete, inaccurate, or defective material or service, at no further cost to CITY. The warranties set forth in this section shall be in effect for a period of one year from completion of the Services and shall survive the completion of the Services or termination of this Agreement. I. MONITORING OF SERVICES. CITY may monitor the Services performed under this Agreement to determine whether CONTRACTOR's work is completed in a satisfactory manner and complies with the provisions of this Agreement. J. CITY'S PROPERTY. Any reports, information, data or other material (including copyright interests) developed, collected, assembled, prepared, or caused to be prepared under this Agreement will become the property of CITY without restriction or limitation upon their use and will not be made available to any individual or organization by CONTRACTOR or its subcontractors, ifany, without the prior written approval of the City Manager. K. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for three (3) years from the date of final payment, CONTRACTOR's records pertaining to matters covered by this Agreement. CONTRACTOR agrees to maintain accurate books and records in accordance with generally accepted accounting principles for at least three (3) following the terms of this Agreement. L. NO IMPLIED WAIVER. No payment, partial payment, acceptance, or partial acceptance by CITY shall operate as a waiver on the part of CITY of any of its rights under this Agreement. M. INSURANCE. CONTRACTOR, at its sole cost, shall purchase and maintain in full force during the term of this Agreement, the insurance coverage described in Exhibit D. Insurance must be provided by companies with a Best's Key rating of A-:VII or higher and which are otherwise acceptable to the City's Risk Manager. The City's Risk Manager must approve deductibles and self-insured retentions. In addition, all policies, endorsements, certificates and/or binders are subject to approval by the Risk Manager as to form and content. CONTRACTOR shall obtain a policy endorsement naming the City of Palo Alto as an additional insured under any general liability or automobile policy. CONTRACTOR shall obtain an endorsement stating that the insurance is primary coverage and will not be canceled or materially reduced in coverage or limits until after providing 30 days prior written notice of the cancellation or modification to the City's Risk Manager. CONTRACTOR shall provide certificates of such policies or other evidence of coverage satisfactory to CITY's Risk Manager, together with the required endorsements and evidence of payment of premiums, to CITY concurrently with the execution of this Agreement and shall throughout the term of this Agreement provide current certificates evidencing the required insurance coverages and endorsements to the CITY's Risk Manager. CONTRACTOR shall include all subcontractors as insured under its policies or shall obtain and provide to CITY separate certificates and endorsements for each subcontractor that meet all the requirements of this section. The procuring of such required policies of insurance shall not operate to limit CONTRACTOR's liability or obligation to indemnify CITY under this Agreement. N. HOLD HARMLESS. To the fullest extent permitted by law and without limitation by the provisions of section M relating to insurance, CONTRACTOR shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents from and against any and all demands, claims, injuries, losses, or liabilities of any nature, including death or injury to any person, property damage or any other loss and including without limitation all damages, penalties, fines and judgments, associated investigation and administrative expenses and defense costs, including, but not limited to reasonable attorney's fees, courts costs and costs of alternative dispute resolution), arising out of, or resulting in any way from or in connection with the performance of this Agreement. The CONTRACTOR's obligations under this Section apply regardless of whether or not a liability is caused or contributed to by any negligent (passive or active) act or omission of CITY, except that the CONTRACTOR shall not be obligated to indemnify for liability arising from the sole negligence or willful misconduct of the CITY. The 4 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CIOI35477- Gachina\Contract Document.doc acceptance of the Services by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section survive the completion of the Services or termination of this Contract. O. NON-DISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONTRACTOR certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONTRACTOR 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. P. WORKERS' COMPENSATION. CONTRACTOR, by executing this Agreement, certifies that it is aware of the provisions of the Labor Code of the State of California which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and certifies that it will comply with such provisions, as applicable, before commencing and during the performance of the Services. Q. TERMINATION. The City Manager may terminate this Agreement without cause by giving ten (10) days' prior written notice thereof to CONTRACTOR. If CONTRACTOR fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided by law, the City Manager may terminate this Agreement immediately upon written notice of termination. Upon receipt of such notice of termination, CONTRACTOR shall immediately discontinue performance. CITY, CITY shall pay CONTRACTOR for services satisfactorily performed up to the effective date of termination. If the termination if for cause, CITY may deduct. from such payment the amount of actual damage, if any, sustained by CITY due to Contractor's failure to perform its material obligations under this Agreement. Upon termination, CONTRACTOR shall immediately deliver to the City Manager any and all copies of studies, sketches, drawings, computations, and other material or products, whether or not completed, prepared by CONTRACTOR or given to CONTRACTOR, in connection with this Agreement. Such materials shall become the property of CITY. R. ASSIGNMENTS/CHANGES. This Agreement binds the parties and their successors and assigns to all covenants of this Agreement. This Agreement shall not be assigned or transferred without the prior written consent of the CITY. No amendments, changes or variations of any kind are authorized without the written consent of the CITY. S. CONFLICT OF INTEREST. In accepting this Agreement, CONTRACTOR 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 this Contract. CONTRACTOR further covenants that, in the performance of this Contract, it will not employ any person having such an interest. CONTRACTOR certifies that no City Officer, employee, or authorized representative has any fmancial interest in the business of CONTRACTOR and that no person associated with contractor has any interest, direct or indirect, which could conflict with the faithful performance of this Contract. CONTRACTOR agrees to advise CITY if any conflict arises. T. GOVERNING LAW. This contract shall be governed and interpreted by the laws of the State of California. u. ENTIRE AG~EEMENT. This Agreement, including all exhibits, represents the entire agreement between the parties with respect to the services that may be the subject of this Agreement. Any variance in the exhibits does not affect the validity of the Agreement and the Agreement itself controls over any conflicting provisions in the exhibits. This Agreement 5 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\KA THy\Contra cts\CI0135477- Gachina\Contract Document.doc supersedes all prior agreements, representations, statements, negotiations and undertakings whether oral or written. V. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Contract are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Contract and the Palo Alto Municipal Code and is subject to the adoption of the budget for FY 2010-11, covering this Agreement, in particular, the quantity and quality of work to be performed by CONTRACTOR and the number of employees and agents to be hired by CONTRACTOR to perform the work required of CONTRACTOR under this Agreement. W. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONTRACTOR shall comply with the City's Environmentally Preferred Purchasing policies which are available at the City's Purchasing Department which are incorporated by reference and may be amended from time to time. CONTRACTOR shall comply with waste reduction, reuse, recycling and disposal requirements of the City's Zero Waste Program. Zero Waste best practices include fIrst minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, Contractor shall comply with the following zero waste requirements: • All printed materials provided by Contractor to City generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by the City's Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable based inks. • Goods purchased by Contractor on behalf of the City shall be purchased in accordance with the City's Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Office. • Reusable/returnable pallets shall be taken back by the Contractor, at no additional cost to the City, for reuse or recycling. Contractor shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. X. AUTHORITY. The individual(s) executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. Y. CONTRACT TERMS: All unchecked boxes do not apply to this Contract. 6 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI 0 I35477- Gachina\Contract Document.doc Background EXHIBIT A SCOPE OF SERVICES LANDSCAPE MAINTENANCE PROJECT The City of Palo Alto is a charter signatory to the Bay Friendly Landscape Declaration and has an award-winning Integrated Pest Management Program that has been successful in large part to efforts of Parks to reduce pesticide use. The. Parks Department is as a leader in water conservation and received the 2002 Rainbird Corporation award for water efficiency. I. GENERAL PROVISIONS The following provisions, where individually applicable, apply for maintenance standards not limited to Landscape Maintenance, and any and all other items selected as part of this proposal. In the event that any of the provisions provided here under GENERAL PROVISIONS are found to be in conflict with or are contradicted by any provision found in the SPECIFICATION REQUIREMENTS listed in Sections A, B, C, D, E G and H, the provisions found in the SPECIFICATION REQUIREMENTS listed in Sections A, B, C, D, E G and H will supersede the GENERAL REQUIREMENTS. II. LOCATION OF PROPERTY The locations of the areas to be maintained are listed in Section XV. SITE LOCATIONS AND SPECIAL INSTRUCTIONS III. SCOPE OF WORK-Landscape Maintenance CONTRACTOR shall provide the highest quality of Ipndscape maintenance services and materials. CONTRACTOR agrees to provide the highest quality commercially accepted methods, procedures and scientific controls for landscape maintenance. "Scientific Controls" is understood to mean practices based upon recommendations of the University of California, The U.S. Forest Service, or similarly qualified experts; recommendations in University of California Cooperative Extension Publications, Consumer Products Safety Commission Playground Guidelines and information in standard landscape industry· references; This shall include the use of proper knowledge, skills, materials and equipment of a timely basis to maintain all areas in a clean, safe, healthy, and aesthetically acceptable manner during the entire term of this contract. CONTRACTOR agrees to be continuously alert in locating and defining problems and agrees to exercise prompt and proper corrective action. Action times will be prioritized, and low priority items will be given a time line for corrections. A 8 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KATHy\Contra cts\C1 0 135477- Gachina\Contract Documentdoc PRELIMINARY WRITTEN REPORT SHALL BE SUBMITTED FOR MAJOR CORRECTIVE PROBLEMS NOT COVERED IN THE CONTRACT. CONTRACTOR shall communicate to the City, landscape, as well as non- landscape related hazards that are seen while on site. Work requests related to citizen requests or reported hazards require immediate response, within 24 hours of the requests. CONTRACTOR shall furnish landscape maintenance services by qualified site managers and horticulturists to provide a 36-month maintenance program according to maintenance specifications. The provision of such report does not mandate the CITY to extend the Contract to 36 months. CONTRACTOR supervisor or representative may be required to report to the Open Space and Parks Division office,or other designated location, Monday through Friday between 6:30am and 8:00 am, except for holidays, which may fall on these days. CONTRACTOR shall report progress to the City of Palo Alto Open Space and Parks Division on the agreed reporting frequency and schedule. A qualified site manager or superintendent of operations shall represent the contractor in monthly meetings and walk-through inspections with City of Palo Alto staff. CONTRACTOR shall furnish all labor, materials, equipment, and on site supervision by qualified site managers who shall provide complete, continuous and expert landscape maintenance services. IV. GENERAL REQUIREMENTS A.. Landscape Maintenance: CONTRACTOR shall provide the City with a landscape maintenance program at the frequencies called for in the special provisions of RFP 135477. The maintenance program is not limited to specifying daily, weekly and monthly landscape maintenance task schedules covering all areas of responsibility specified in this agreement. The maintenance program will be submitted and agreed upon within 30 calendar days following award of this contract. This program and any changes, deletions, or additions therein, if approved by the City, shall become part of this agreement and shall be used by both the contractor and the City of Palo Alto for performance monitoring of contractor obligations. Failure to submit a maintenance program within the allotted time period will be considered a non-responsive action, and non-responsiveness will be grounds for termination of this agreement. The Project Manager shall receive changes to the schedule at least 24 hours prior to the scheduled time for the work. Failure to notify of a change and/or 9 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER -CM FOLDERS\KA THY\Contra cts\CI 0 135477- Gachina\Contract Document.doc failure to perform an item or work on a scheduled day may result in deduction of payment for work not completed. CONTRACTOR shall adjust his schedule to compensate for all holidays. CONTRACTOR will be required to work on specified holidays and weekends as outlined in this Scope of Work. B. Staffing Levels: A sufficient staffing level to successfully satisfy the landscape maintenance expectations within this agreement is required. Contract personnel to remain on site everyday even if it is raining. All key project personnel must be fingerprinted before being allowed to work on City/School property. Contractor shall work with City's Project Manager on obtaining required verification of fingerprinting results prior to personnel being allowed to work on City/School property. C. Monthly Progress Reports Monthly, the contractor shall provide the City's Open Space and Parks Division with monthly progress reports, based on weekly summary of work performed by location and referenced to the maintenance program. The reports will be due no later than the fifth day of the month following services, and is to include the following information: a). Total labor, supervision, and horticultural hours provided at each site. This can be in a spreadsheet format with all applicable sites covered under this agreement. Sample format available upon request. b). Problem areas encountered during the month. c). Monthly application reports for all materials applied by site. This will include location, application date, materials, amount of material applied, etc. d) Any additional reports as directed by the Open Space and Parks Division. D. Inventory/Material Safety Data Sheets Within thirty days of the effective date of this agreement, CONTRACTOR will submit to the City a list of all chemicals (fertilizers, pesticides, cleansers etc.) that will be used by the contractor on the sites, together with the required Material Safety Data Sheets. MSDS sheets and product labels shall be in applicator's vehicle. 10 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLlCIT A TlONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\Cl 0 135477- Gachina\Contract Document.doc E. Integrated Pest Management (IPM) Within 45 days of acceptance of this agreement, CONTRACTOR shall submit to the Parks and Golf Division an Integrated Pest Management Plan (I PM) that complies with the City of Palo Alto IPM Policy. The IPM Plan will be reviewed annually for updates and modifications. (Reference: City of Palo Alto IPM Policy Section VII). Pesticide use reports described in Section VII shall be submitted in a timely manner and shall contain accurate and current information regarding the Contractor's performance at each site. Failure to supply these reports in an accurate and timely manner shall be considered a breach of this agreement. F. Extra Projects/Landscape Upgrades: All extra projects shall require the submission of a Project Proposal Form or a Work Order Authorization Form. If the contractor does not have available such a form, a mutually agreeable format will be developed. On any extra project or landscape upgrade, the City reserves the right to obtain competitive bids or quotations. CONTRACTOR shall use additional personnel for extra work or project upgrades. CONTRACTOR cannot· stop regular landscape maintenance services and use staff for extra work or project upgrades. G. Management Philosophy: CONTRACTOR shall take a pro-active approach in correcting problems within the contractors' span of responsibility and control. Other problems and suggestions for improvements, both short and long term, must be submitted promptly to the City for appropriate action. H. Public Image and Etiquette: CONTRACTOR employees shall wear company uniforms, which consist of long pants and shirts with company name and individual's name on the shirt. CONTRACTOR's staff when needed will utilize rain gear, rain boots, safety shoes, and other safety equipment. All contracted employees while on the site shall exhibit a clean, neat professional appearance. Contractor's equipment and vehicles shall also be professional in appearance, exhibit the company name and phone number, and be well maintained for safe operation. CONTRACTORs' vehicles must display a placard, legible from a distance of 10 feet, with the following language: Landscape Maintenance Contractor working for the City of Palo Alto Parks and Golf Division For information contact :( 650) 496-6962 11 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI 0 135477- Gachina\Contract Documentdoc I. Definitions Responsible parties referred to as City of Palo Alto are deemed to refer to the Parks Project Manager, Parks Superintendent, or Parks Supervisor. CONTRACTOR shall begin work after receiving written notice to proceed from the Parks Superintendent. V. TERM OF CONTRACT A. The services to be performed under the contract shall commence July 1, 2010 and shall be completed by June 30, 2013. Annual renewals after Year 1 are subject to funding approval on an annual basis. VI. GENERAL CONDITIONS A. Permits/Parking CONTRACTOR shall be issued a free maintenance permit from the City's Department of Transportation. This will allow the Contractor's crews to use City parking facilities at no charge during the term of this contract and only while doing landscape maintenance work for the City's Open Space and Parks Division. B. Payments and Inspection Payment will be made for work satisfactorily completed as called for in this contract. The City's Representative. shall inspect and notify CONTRACTOR of any unsatisfactory work. Unsatisfactory work shall be corrected within 24 hours. Contractor or Contractor's representative shall meet with a representative from the City at least once a month during the life of this contract to inspect Work performed. CONTRACTOR will bill the City by the 5th of the month following service. The City will pay CONTRACTOR on a monthly basis for labor, equipment and materials provided during the monthly billing period. C. Property Damage 1. Any private property or city property damaged or altered in any way during the performance of the work under this contract shall be reported promptly to the City's representative, and shall be rectified in an approved manner back to its former condition, prior to damage, at CONTRACTOR's expense. 2. Any hazardous conditions noted, or seen, by CONTRACTOR that has occurred by any means other than during the performance of the 12 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THy\Contra cts\Cl 0135477- Gachina\Contract Document.doc Contractor's work, whether by vandalism or any other means, shall be promptly reported to the City's Representative. 3. CONTRACTOR is responsible for securing any immediate hazards with caution tape, safety cones, or barricades until a City Representative arrives to the location. D. Safety CONTRACTOR agrees to perform all work outlined in the Agreement in such a manner as to meet all accepted standards for safe practices during the maintenance operation and to safely maintain stored equipment, machines, and materials or other hazards consequential or related to the work; and agrees additionally to accept the sole responsibility for complying with all City, County, State or other legal requirements including, but not limited to, full compliance with the terms of the applicable O.S.H.A. and CAL E.P.A. Safety Orders at all times so as to protect all person, including contractor employees, agents of the City, vendors, members of the public or others from foreseeable injury, or damage to their property. CONTRACTOR shall be responsible for traffic control and safety regulations as related to any City, State, or County requirements while working on medians and/or roadside strips. The design and operation of work zone traffic controls must comply with U.S. Department of Transportation/Federal Highway Administration guidelines. CONTRACTOR shall cooperate fully with City in the investigation of any accident, injury or death occurring on city property, including a complete written report thereof to the Project Manager within twenty-four (24) hours following the occurrence. CONTRACTOR's responsibility shall be continuous and not be limited to working hours or days. E. Use of Sanitary Landfill The refuse disposal facilities of the city of Palo Alto Sanitary Landfill located adjacent to East Embarcadero Road in said City will be made available to the Contractor through the 2011 calendar year for the disposal of all trees, rubbish and construction debris generated on work site. . Contractor shall pay all dump fees. Contractor shall at its sole expense load, haul and deposit said rubbish and debris during normal landfill operating hours. All landfill regulations will apply to all debris deposited by the Contractor. Any questions regarding landfill rules and regulations shall be directed to the Landfill Supervisor. A digest of the refuse disposed area rules and regulations have been appended to this contract. At the 13 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\ClO135477- Gachina\Contract Document.doc CONTRACTOR must coordinate work schedules to accommodate "Spare the Air" recommendations. J. Materials All materials shall be provided by CONTRACTOR and shall be the highest quality available. Commercial fertilizers and pesticides shall bear the manufacturer's label and guaranteed analysis. CONTRACTOR must have MSDS and written recommendation sheets for all chemicals available upon request. The Project Manager must approve all materials. All pesticide applications shall in accordance with written recommendations provided by a license pest control advisor. 1. Water is to be furnished by the City. 2. Fertilizer shall be a complete, seasonably appropriate Organic Materials Review Institute OMRI (www.omri.org) Certified organic slow-release granular fertilizer Earthworks 3-4-3 (or approved equal) furnishing the required percentage of nitrogen, phosphoric acid and potassium to keep lawns, trees, shrubs and other plants in a healthy and vigorous growing condition at all times. If there arises a question as to the need for application of fertilizer or the formulation of a fertilizer, soil samples shall be taken from locations specified by the City's representative. They shall be analyzed by a licensed soil analyst at the Contractor's expense and the results and recommendations for the formulation and rates of applications of a complete fertilizer shall be submitted to the City's representative. CONTRACTOR shall formulate and apply the fertilizer as per the recommendations of the soil analyst. If the application of iron, zinc or other trace minerals is recommended by the soil analyst or by a recognized plant pathologist to correct a specific soil deficiency, it shall also be applied according to these recommendations at CONTRACTOR expense. 3. Pesticides shall be of the highest quality obtainable, brought to the job site in the original manufacturer's containers, properly labeled with guaranteed analysis. Any necessary permits, recommendations, etc. shall be the responsibility of CONTRACTOR. 4. Plant materials shall of the highest quality, displaying a healthy appearance and of a size relevant to their container size. The Project Manager must inspect and approve all plant materials prior to planting. 15 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\Cl 0 135477- Gachina\Contract Document.doc I. CONTRACTOR is responsible for maintaining the first 15 feet of the tree measured from the root crown/flare. J. Tree stakes shall be removed as trees mature. Tree ties will be adjusted at least annually to accommodate tree growth. K. All trees should be maintained at a height that conforms to A.D.A. standards for safety (84" above ground level), and which removes hazards to persons, mowers, and property. 3. Flower beds and perennial areas shall be raked, cultivated, and pruned/dead-headed as needed, but no less than once per week. 4 Ground cover along curbs must be kept within curb and height trimmed as needed. 5. All ivy ground cover shall be mowed with a composting mower once a year in the winter. Most ivy/ground cover areas have irrigation, primarily fixed risers. CONTRACTOR must flag all irrigation components prior to ivy mowing. CONTRACTOR is responsible for repairing any damage to irrigation system. VII. INTEGRATED PEST MANAGEMENT (IPM) The goal of the City of Palo Alto IPM policy is reduce the amount and toxicity of pesticides used on City property in order to protect water quality and human health and to avoid ecotoxicity. Preferred pest management techniques include encouraging naturally occurring biological control, using alternative plant species or varieties that resists pests; cultivating, pruning, fertilizing, and irrigation practices that reduce pest problems, optimizing habitat to reduce pest development, selecting pesticides with a least toxicity to humans and non-target organisms and applying pesticides only as a last resort. A. Within 45 days and annually on the anniversary of this agreement, CONTRACTOR shall submit to the City's Open Space and Parks Division an Integrated Pest Management Plan that complies with the City of Palo Alto IPM Policy. The IPM Plan shall be reviewed annually for updates and modifications with Open Space and Parks Division Staff. Frequent and thorough site inspections, on foot, will be needed to ensure no major infestations occur. The first priority in addressing pests will be to conserve naturally occurring beneficial insects through the use of selective applications of the least toxic effective materials. Biological controls will be based upon sound scientific information such as that provided by the University of California. Conventional pesticides will be given last priority. Open Space 17 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI 0 135477- Gachina\Contract Document.doc and Parks Division staff will provide site-specific historical data for known infestations. Contractor shall provide any MSDS. sheets of chemicals that will be utilized. B. No pesticides of any kind will be used on designated Pesticide Free Parks. The Project Manager will provide a list of pesticide free parks. C. Pest control shall be done only by qualified, trained personnel, under the supervision of a State licensed pest control operator, using materials approved by the Project Manager. The pesticide application shall be done with extreme care to avoid any hazard to any person, pet, or wildlife in the area or adjacent· areas, or any property damage. Application shall be in strict accordance with all governing regulations. CONTRACTOR must provide, within 30 days of the Notice to Proceed, their Pest Control Operators License, and the names and license/certification numbers of any individuals responsible for or applying pesticides in accordance with this agreement. D. All pest infestations shall be reported to the Project Manager. The Project Manager prior to application shall approve all pesticides applications. Records of all pest control operations stating dates, locations, times, methods of application, chemical formulations, applicators names and weather conditions shallbe made and retained in an active file for a minimum of three (3) years. E. Written report of all applications shall be provided to the Parks and Golf Division on a monthly basis. CONTRACTOR must use the "Palo Alto Contractor Monthly Pesticide Use Summary" form Attachment _It is also the responsibility of CONTRACTOR to. file monthly chemical use reports with the County Agricultural Department. F. All chemicals requiring a special permit for use must be registered with the county Agricultural Commissioner's Office and a permit obtained with a copy to the Parks and Golf Division. G All regulations and safety precautions listed in the "Pesticide Information and Safety Manual, published by the University of California and the Pesticide Safety Information Series (PSIS) published by the California Department of Pesticide Regulation shall be adhered to. H. Spraying is not permitted during heavy traffic (vehicle, bicycle, or pedestrian) periods or when winds create uncontrollable material drift. The Project Manager will permit no spraying without prior approval. I. Pesticides may not be used within 250 feet of any playground area or creek. J Temporary notice shall be posted during and after a site has been sprayed. all areas sprayed shall be flagged and signed 18 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI 0 135477- Gachina\Contract Document.doc K. CONTRACTOR agrees to control gophers, squirrels, moles and other rodents causing damage to City Property under the site area of responsibility. Traps are the only acceptable form of rodent control. Rodenticides for gophers, ground squirrels or other rodents may not be used. In the event of visible evidence of such pests, contractor will restore the area to its proper condition if the damage is current and prevention is within the contractor's control. L. CONTRACTOR shall replace any plant material that has suffered severely due to lack of proper pest management techniques, if such pest control is possible and practicable M All treated areas must be monitored during and after pesticide application until material has settled and treatment area is completely dry. No unprotected person, pet, or wildlife may enter a treated area until all re-entry intervals have been satisfied. N. Weeding All areas, including but not limited to: shrub beds, flower beds, groundcover beds, tree wells, paved areas, sidewalks, cracks, stairways, pavers, expansion joints, decomposed. granite paths, picnic areas, playgrounds, under bleachers/benches, must be kept weed free at all times. Weeds shall be removed whenever the appearance becomes unsightly or when requested to do so by Parks and Golf Division staff. O. Staking and Guying Maintain and replace stakes and guys with equal· material. Maintain and replace plant ties to provide support without chafing of bark. Additional stakes and/or guys shall be placed from time to time to correct misshaping caused by wind. Stakes and guys shall be removed upon request of Project Manager. P. Fertilization Fertilizers shall not contain pesticides. CONTRACTOR shall fertilize all shrub, ground cover, and planter bed areas three times a year with an approved complete slow' release OMRI certified granular organic slow release Earthworks 3-4-3 fertilizer (or approved equal). Fertilize trees as requested, not to exceed twice per year. Fertilizer shall be applied in the spring, summer and in the fall and may not be applied three days before there is a 40% chance of rain predicted. Q. Nurturing Soil Health 19 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\sOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI 0 135477- Gachina\Contract Document.doc Leaf drop shall become part of ,the mulch layer in the tree, shrub or groundcover areas in an attractive manner and away from high traffic areas. Leaf drop shall not be allowed to enter stormdrains. Mulch shall be maintained under all trees and shrubs and on bare soil with a minimum3-inch layer of organic material. To the greatest extent practicable, CONTRACTOR shall not procure mulch products that originate from forest products. When possible CONTRACTOR shall give preference to mulch products that are produced on-site, or from regionally generated plant debris including that made at the City of Palo Alto. R. Replacement of Material Remove dead and damaged plants and replace with material of equivalent size, condition and variety, subject to approval and purchase owner's representative. Labor shall be provided by the Contractor in a timely manner. Plant material shall be provided by the City's Parks Division unless damaged is caused by Contractor's negligence (Le. chemical damage, mechanical damage, water stress.) Damage not resulting from Contractor's negligence, such as vandalism, vehicle, or weather shall be reported promptly to the Project Manager together with an estimate of materials needed for correction. The City will provide all necessary materials. Labor shall be provided by CONTRACTOR in a timely manner. Prior to beginning maintenance CONTRACTOR and the city's representative shall inspect and inventory all plants, trees and shrubs to determine their number and condition. VIII. TURF MAINTENANCE- 1. The following turf maintenance guidelines apply to all turf areas included in this agreement. Turf shall be maintained areas in a healthy, safe, and aesthetically pleasing condition by performing the following operations and other work incidental thereto: A: Mowing -include requirement for grasscycling? All turf areas are to be mowed typically once a week. An additional weekly mowing may be requested due to weather conditions, special events, and growth flush after fertilizing. Mower setting are to be at 1 %-2" in height, depending of turf variety. All clippings shall be removed when unsightly and requested by the Project Manager. B. Aerification -All turf areas are to be aerified twice a year. Core size shall be at least 3/4" in diameter and 3" -4" in length and 2" spacing utilizing a 20 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI 0 135477- Gachina\Contract Document.doc hydraulic aerifier in areas where needed due to compaction conditions. Cores need not be removed. Flag/mark irrigation system heads, valve boxes, and quick couplers. Contractor is responsible for repairing any damaged caused by aerification equipment. C. Edging -All tuff edging shall be edged at least once per month. Examples of edges: along pathways, walkways, around shrubs, trees, sprinklers heads, valve boxes, mow bands, curbs, benches, light poles, or any other fixed object. Herbicide shall not be used as an edging tool. Care must be taken not to damage trees, shrubs, or any other fixed object with edging equipment. String trimmer damage to trees and roots will not be tolerated. D. Gopher Control -CONTRACTOR shall keep all turf areas free of gophers by using Macabee gopher traps or other approved devices. Holes caused by gophers shall be backfilled with soil approved by the City's representative. E. Grub/Larvae Control -CONTRACTOR shall keep all turf areas free of grubs and larvae. Damage caused by grubs and larvae shall be re- seeded with an approved turf seed. Grub and larvae species including, but not limited to, Australian Sod Fly, Bermuda grass Mite, Billbugs, Cutworms, Armyworms, Ground Pearls, Lawn moths, Sod webworms, White Grubs. F. Turf shall be fertilized three times annually, using 6 pounds per 1,000 square feet, using aEarthworks slow release 3-4-3 organic fairway granular fertilizer (or approved equal) at a rate of 1.0 pounds of actual nitrogen per 1,000 square feet. G. Safety hazards must be addressed immediately. Fill holes in turf areas immediately, regardless of cause, as they develop with sufficient soil to prevent tripping hazards. H. Re-seed small bare areas, not to exceed 100 sq. feet per area, on a monthly basis using materials and methods approved by the Project Manager. I. Turf Sweeping -CONTRACTOR must sweep turf areas at the request of the Project Manager. Sweeping will be requested to remove excess turf clippings or leaves. Requests will be more frequent during the fall season, after wind related events, and skipped mowing intervals by CONTRACTOR or City Staff. This includes turf areas mowed by City Staff. 2. Procedures for turf renovation of soccer fields 21 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI0135477- Gachina\Contract Document.doc A. Six foot high portable plastic chain link fencing is to be installed to isolate the soccer field renovation area from use or encroachment by the general public. A minimum of four signs must be provided stating that this filed area is under renovation and will be closed until (dat~). Fenced area shall be placed in a manner not to interfere with irrigation system watering the newly renovated area. B. If necessary,.the field will be treated with a post emergent material to eliminate weed infestations and competition with the materials to be planted. C. Turf areas shall be scalped mowed down to approximately 3/4" or less in height. Excess clippings shall be vacuumed or finely swept up and disposed. D. Holes or low spots greater than 1" in depth are to be filled with a minimum of 50 tons of T-mix from T.M.T or approved equal. Sample of soil to be given to City representative for approval prior to use. The goal is to level the field and eliminate low spots and bumpy areas to create a consistent and even playing field. CONTRACTOR must provide a sufficient amount of soil to achieve the desired field grade. E. All turf areas will be double aerated using either a conventional drum aerator or a pull behind mechanical rotating tine aerator. This will be completed by aerating in two perpendicular directions. All sprinklers, quick couplers, or other impediments will be flagged before this procedure is initiated. Core size shall be 3/4" diameter minimum, using a deep hollow tine aerator to a depth of 6". The turf areas shall be dragged afterwards to break up the cores. F. After aerating, fields will be slit seeded in two directions. Seeding rates shall be 20% Bluegrass and 80% Perennial Rye grass, or approved equal. Seed varieties must be industry recognized for quality and approved by the Project Manager. Both seed varieties shall be applied uniformly, either by mixing or separate applications of 250 Ibs per acre in total. If the maximum discharge rate on the slit seeder does not meet the application rates, broadcast seeding will be allowed after the above procedures have been completed at the maximum rate setting. Upon completion of the drill seeding/broadcast seeding procedure, fields shall be dragged in two directions to set the seed in the soil and into the holes. G. Field areas will be fertilized using "starter" type fertilizer (15-15-15) to enhance germination and initial seed vigor. Fertilizer is to be evenly distributed at 10 pounds per 1,000 square feet. 22 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THy\Contra cts\CI 0 135477- Gachina\Contract Document.doc H. Field areas will be top.,.dressed uniformly with a minimum of 1/4" inch layer of top dressing material, which shall be nitrogenized redwood sawdust. L CONTRACTOR shall be responsible for grow in of the renovated areas. This includes multiple daily irrigation(s) as necessary to provide optimum moisture conditions for turf germination (this includes weekends and holidays). The grow in period shall be not less than 15 days for preliminary germination of the ryegrasses. After this period, soil conditions will be kept at a moisture level sufficient for development and germination of the bluegrass seedlings, which is normally 25-30 days. Mowing may occur as necessary during this period. Loss of turf due to excessive irrigation and related water logging will be the responsibility of the Contractor. An expected germination and establishment rate of 95% of all seedlings is required. J. CONTRACTOR shall provide verification of seed varieties (seed label tags) and quantities (shipping tags) during and after each area of renovation. Contractor shall provide seeder calibration data and topdressing calibration data relative to application uniformity. CONTRACTOR will document all procedures and provide a daily diary of grow-in activities. K. Soccer field renovation shall be completed within 10 working days after the date upon which notice to proceed is issued. IX. GENERAL MAINTENANCE AND CLEANUP A. Leaf drop shall become part of the mulch layer in the tree, shrub or groundcover areas in an attractive manner and away from high traffic areas. Leaf drop shall not be allowed to enter stormdrains. Mulch shall be maintained uner all trees and shrubs and on bare soil with a minimum 3-inch layer of organic material. To the greatest extent practicable, CONTRACTOR shall not procure mulch products that originate from forest products. When possible CONTRACTOR shall give preference to mulch products that are produced on-site, or from regionally generated plant debris including that made at the City of Palo Alto. Clippings trimmings, cuttings generated by the Contractor that cannot be used as mulch shall be promptly removed from the work site at the end of the same day the work is performed. Dumpsters may not be used on the sites unless approved by Project Manager. B. All areas covered by this agreement, including but not limited to: areas around shrubs and trees, non landscaped islands, sidewalks, patios, planter beds, curbs and gutters shall be kept free from weeds, litter, rocks, glass 23 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI 0 135477- Gachina\Contract Document.doc and debris and shall contain. Debris includes, but is not limited to: paper litter, household furniture, household appliances, cardboard, cigarette butts, animal feces, biohazards (human feces, hypodermic needles), illegal drug paraphernalia, and vehicle parts. Leaf litter shall be used as mulch according to specifications in IX Section A. C. All cracks in sidewalks, curbs, street gutters and other paved areas shall be kept weeded. D. All sites' paved areas, including play and picnic areas, shall be swept and cleaned of any dirt, debris, weeds, litter or soils. E. Picnic Area: All Tables, benches and barbecue pits shall be kept cleaned three times a week. They shall be washed off weekly between March and November. Picnic area tables and benches shall be scrubbed and washed using. a biodegradable cleanser. F. All sand areas including sand volleyball courts shall be kept raked and cleaned of any debris. Playground and sand volleyball court shall be Rota tilled to relief compaction if needed and filled with sand as needed. G. All parks shall be inspected by contractor for gtass and other safety Hazards by 10:00 a.m. H. All decomposed granite pathways must be raked and not blown where indicated by the Project Manager. During summer months decomposed granite pathways will be watered down prior to using an electric blower to clean the pathway were indicated by the Project Manager. I. Ornamental garbage enclosures and dumpster enclosures shall be washed and cleaned with a biodegradable cleaner once per month. J. Skate bowls, multipurpose bowls and handball courts must be cleaned as needed. Bowls are located at: Mitchell Park, Rinconada Park, Robles Park, Eleanor Park, and Hoover Park. Handball courts at Mitchell Park and a Skate Bowl at Greer Park. x. PLAYGROUND and PLAYGROUND EQUIPMENT MAINTENANCE Playground and playground equipment maintenance needs to be performed on an on daily basis. CONTRACTOR must schedule playground maintenance in a logical time frame where playground use is typically low in the morning hours so the playground can be thoroughly cleaned and inspected with minimal interference to and from park users. A. All playground sites and equipment shall be inspected at the start of each workday. The fall cushioning material (sand, wood fiber) shall be cleaned 24 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\KATHy\Contra cts\CI0135477- Gachina\Contract Document.doc and raked level to remove any foreign and hazardous material and neatly groomed daily. B. Any playground equipment showing signs of wear, fatigue, vandalism or otherwise presenting an unsafe condition shall be reported immediately to the Project Manager. C. Special attention shall be made to areas around and immediately adjacent to play equipment. The fall cushioning material in these areas shall be leveled by distributing material from high areas to low areas. D. During the leveling and distribution of fall cushioning material, no concrete footing shall be exposed that could allow children to trip or fall on. E. During regular maintenance, the raking and filling of depressions shall be done in a manner to prevent material compaction. CONTRACTOR is responsible for supplying material to playgrounds so that the uniform depth meets safety guidelines. CONTRACTOR shall provide labor to install all fall cushioning materials. F. The raking and distribution of fall cushioning material around and below the play equipment shall have a cushioning potential and this condition shall extend through the use zone of any part of the play equipment. Use zones vary depending upon equipment type and designed use. CONTRACTOR should consult with the Project Manger' for questions regarding use zones around playground equipment. CONTRACTOR shall use Lapis sand #110 fill sand from TMT Enterprises for playground sand or equal subject to approval by the owners representative. CONTRACTOR will be responsible for providing a sample of the fill sand with appropriate specifications prior to receiving approval from the City's owners representative. Data for approval: U.S. Sieve #4 (4.75 mm) #8 (2.36 mm) #16 (1.18 mm) #30 ( 600 urn) #50 ( 300 urn) #100 ( 150 urn) #200 ( 75 urn) Fineness Modulus = 2.25 Sand Equivalent = 97 +/-3 % Passing 100 99 +/-1 97 +/-3 68 +/-12 10 +/-4 1 +/-1 0.1 +/-0.1 25 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KATHY\Contra cts\Cl 0 135477- Gachina\Contract Document.doc G. All play areas shall be maintained free of litter, cans, pop tops, broken glass and other harmful and unsightly debris. Sweep or blow walks around play areas and return fall cushioning material to play area. H. Sweep or blow all playground equipment surfaces. XI. GARBAGE CANS AND ENCLOSURES All garbage cans must be emptied at the sites listed in this agreement. Garbage cans more than one half full must be emptied. Mechanically or physically compressing garbage is not permitted in lieu of emptying. All garbage cans must be emptied on Mondays and Fridays. All garbage cans must have a liner. CONTRACTOR is responsible for providing garbage can liners. Re-using soiled garbage can liners are not permitted. Garbage can enclosures, a device used to conceal the garbage can, must be washed monthly using a Biodegradable cleaner. XII. HOMELESS PERSON ACTVITY CONTRACTOR shall alert the Project Manager to any signs of any homeless person activity on any sites listed in this agreement. Homeless person refuse will be classified in two ways: (1) Incidental litter/debris, including but not limited to: bottles/cans, clothing, foodstuff, toiletries, paper products. (2) Encampment debris, including but not limited to, large cardboard, plywood, shopping carts, blankets, sleeping bags, coolers, tents, tarps. CONTRACTOR at the request of the Project Manager must remove incidental litter/debris generated by any homeless activity. CONTRACTOR at the request of the Project Manager must remove encampment debris generated by any homeless activity. CONTRACTOR will be issued a free dump pass for disposal of encampment debris at the City of Palo Alto Landfill. XIII. EQUIPMENT CONTRACTOR is to provide an inventory list of the equipment to be used during this project. The inventory list must include: description, model/make, picture, and VIN # (if applicable) of equipment to be used for the maintenance of the landscaped and non-landscaped grounds specified in· this package. CONTRACTOR's equipment inventory must include: 36" -72" and a large riding mower with at least a 15' wing span, turf sweeper, and leaf blowers that satisfy the City of Palo Alto's noise ordinance requirements. CONTRACTOR shall at all times furnish and maintain sufficient equipment as necessary to perform the work of this contract. Such equipment shall be subject to the inspection and approval of the City's Representative. If the contractor is 26 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\Cl 0 135477- Gachina\Contract Document.doc unable to consistently provide the necessary equipment to perform the work, it may be considered as grounds of canceling the contract. XIV. SERVICE LEVELS-Service frequencies are listed below unless delineated otherwise in Section A B, C, D, E, G and H. I. DAILY SERVICE-( Monday through Friday) The following sites require daily service. City Facilities City Hall Parks Baylands Athletic Center Bol Park Boulware Park Bowden Park Bowling Green Briones Park Cameron Park Cogswell Park EI Camino Park (Includes area south of park between the park fence line and the Red Cross building) (EI Camino Park will be closed August, 2010 and will be closed until August, 2012). Eleanor Pardee Park Greer Park (Greer Park is closed and will be opened again at the end of October, 2010). Heritage Park Hoover Park Johnson Park Lytton Plaza Mitchell Park Monroe Park Peers Park Ramos Park Rinconada Park Robles Park Scott Park Seale Park Stanford Palo Alto Playing Fields (7 days a week) Terman Park Ventura School grounds Werry Park 27 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLlCIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\Cl 0135477- Gachina\Contract Document.doc Ohlone Fairmeadow Greendell Barron III. SEMI-WEEKLY SERVICE The following sites require service twice per week. Actual days to be determined by Project Manager. Median & Roadside Strips Alma St. Charleston Rd. Oregon Expressway San Antonio Rd. City Facilities Art Center Children's Theatre Children's Library Downtown Library Main Library Mitchell Community Center (The Mitchell Park Library and Community Center will be closed June 1st, 2010 and will be closed for two years). Mitchell Library (The Mitchell Park Library and Community Center will be closed June 1st, 2010 and will be closed for two years). Junior Museum Roth Building Tower Well Sterling Canal Palo Alto Municipal Golf Course IV. WEEKLY SERVICE The following sites require service once per week. Actual day to be determined by the Project Manager. Median & Roadside Strips California Avenue Business District Tree Wells Downtown Tree Wells Page Mill Islands EI Camino Real Islands Embarcadero Islands/Underpass Forest Lawn Parkway E. & W. Greenwich Cui de Sacs 29 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\Cl 0 135477- Gachina\Contract Document.doc Hansen Substation Page Mill Substation Matadero Substation Middlefield Substation Alma Electric Substation Maybell Substation Mitchell Substation PG&E Substation Quarry Substation SCAADA Substation Holiday Service Bol Park Boulware Park Briones Park Cameron Park Cogswell Park Eleanor Pardee Park Hoover Park Johnson Park Mitchell Park Monroe Park Peers Park Ramos Park Rinconada Park Robles Park Scott Park Seale Park Ventura School grounds Werry Park Note: The contractor must provide all General Maintenance and Clean-up and Playground and Playground Equipment Maintenance at the above sites on these following holidays and specific holiday weekend days: Memorial Day Weekend (Sunday and Monday) Fourth of July Weekend Labor Day Weekend (Sunday and Monday) The Friday after Thanksgiving VI. SEASONAL AND AS NEEDED BYXBEE PARK (Services to begin July 1, 2011). 31 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI 0 135477- Gachina\Contract Document.doc SECTION A MEDIAN AND ROADSIDE STRIPS A. MEDIAN AND ROADSIDE STRIPS Item 1 -Alma St. -Eastside of street from San Antonjo Rd. to E. Meadow Dr. Includes cement medians at the intersection of Meadow Dr. Re-seed wildflower patch on planting strip on the eastside between Green Meadow and Ely. Wildflower seed will be provided by the City. Manual watering, utilizing existing manual irrigation valves, shall be done twice per week March through November. Trim ground cover 2 feet away from fence. Trim ground cover off fence upon resident request. Item lA -Alma 8t. West Item 2 -Charleston Rd. (east and west)- Includes cement/landscaped median at Louis Rd. Sidewalks and planting strips from Carlson Ct. to Alma St. Manual watering, utilizing existing manual irrigation valves, shall be done twice per week March through November. Trim ground cover 2 feet away from fence. Trim ground cover off fences upon resident request. Item 3 -California Avenue --medians and sidewalk planting strips on California Avenue from EI Camino Real to Caltrain Property Contractor is responsible for maintaining the ornamental water fountain at the east end of California Ave. at Park Blvd. The contractor must perform the following routine/regular maintenance: A. Fountain 1. Wash down once per week with water and scrub to remove algae and debris. Use a biodegradable cleaner, as needed, to remove algae and debris. 2. Refill/top-off water level twice a week. 33 Rev. January II, 2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\C 10 13 5477- Gachina\Contract Document.doc Includes keeping ivy and shrubs off of fence line on south side. Includes cUl-de-sacs: High St., Emerson St., Ramona St., South Ct., Tasso St. (off Marion Ave.), Warren Way. Item 7 -San Antonio Rd. Medians/lnterchange/Right-of-way -medians just west of highway 101 to Alma St. /Central Expressway interchange at the City of Mountain View City limits. Center median from east of E. Charleston Rd. to Alma St., Median/parking strip on north side from E. Charleston to Mackay Dr.; hedge barrier on south side along San Antonio Rd. near Transport St.; right-of-ways on north side of San Antonio Rd. leading to Highway 101 off/on ramps. Mow all ivy, once a year during winter months, as directed by Project Manager Alma to San Antonio Road keep all cement medians free of weeds. Manual watering of underpass shall be done 2 times a week between March and November. Item 8 -University Ave. -EI Camino Real to Woodland Ave. Medians island from EI Camino Real on-ramp to High St. Tree wells from Alma St. to Webster St. Landscaped corners (28) between Emerson St. and Cowper St. Lytton Plaza at the corner of Lytton Ave. and University Ave. Landscaping on the North side of University Ave. and Woodland Ave. (City of Palo Alto sign) Litter and debris shall be removed daily from all landscaped areas and walkways. University Ave. has 66 tree wells that require a fall and spring color rotation. Plant tree wells with a total of: 25 flats 4" Cyclamen (red and white) and 28 Jumbo Packs of annual color in the fall. Jumbo Pack plant species to be determined by the Project Manager. Plant tree wells with a total of 50 Jumbo Packs of annual color in the spring. Jumbo Pack plant species to be determined by the Project Manager. Replant 1 newspaper stand at Lytton Plaza with 164" annuals twice a year. University Ave. median island at High Street: Replant with 1 0 flats 4" cyclamen (red and white) and 5 flats of Jumbo Pack annuals in fall, and 15 flats Jumbo Pack of annuals in spring. Jumbo Pack plant species to be determined by the Project Manager. University Ave. median island at EI Camino Real: The area behind the Red Cross Building is considered part of the University Underpass and must be thoroughly cleaned. Item 9 -Downtown Tree Wells -Lytton St. to Forest Ave. (north to south boundary) and from Alma St. to Webster St. (east to west boundary) 35 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT A TlONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\C 1 0 135477- Gachina\Contract Document.doc Item 13 -N. California Ave. -Landscaped right-of-way on the north side of street between Middlefield Rd. and Louis Rd. Item 14 - Arastradero Rd. -Hubbartt Dr. to east of Deer Creek Rd. Includes sidewalks, fence lines, and sidewalk strips on the west side from Hubbartt Dr. to the Arastradero West driveway Includes cement medians on the east and west side of the intersection at the Foothill Expwy. Includes the cement and landscaped medians west of Foothill Expwy. to Deer Creek Rd. Item 15 -Evergreen Park Closures/Park Blvd.Medians -Landscaped and cement street closures (13 locations) located between Park Blvd. and EI Camino Real at or near the following intersections: W. Meadow, Margarita Ave., Chestnut Ave., Mariposa St., Park Ave., College St., Oxford St., College St., Birch St., Ash St., and Leland St. Item 16 -Quarry Rd. -Median west of Welch Rd. Item 17 -Miranda Avenue -Medians along east road shoulder from Arastradero Rd. to Arroyo Ct. Includes landscaped on southeast corner near backflow Includes bike path (under construction) Includes planter strip on Arroyo Ct. Item 18 -101IWest Bayshore Rd. Soundwalls -North soundwalls from Embarcadero Rd. to City Limits; South soundwalls from Oregon Expwy. to Colorado Ave. Includes area from gutter to soundwall Keep vines trimmed behind curb line Thin vines as needed to prevent top heaviness Item 19 -Bryant/Addison Circle -Landscaped traffic round a bout at the intersection of Addison Ave. and Bryant St. 37 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI 0135477- Gachina\Contract Document. doc SECTION B PARKING LOTS and PARKING GARAGES B. PARKING LOTS and PARKING GARAGES Item 1 -California Avenue Business District Lots and Garages -- Landscape and hardscape maintenance. This includes litter removal from the entire parking lot, not just islands; and includes blowing the sidewalks. Item 1A -Parking Lot 1 off Cambridge Ave. Item 1 B -Parking Lot 2 off Cambridge Ave. Item 1 C-Parking Lot 3fTed Thompson Garage Cambridge Ave. & Birch St. Train camellias to espalier. Keep shrubs pruned at corners for visibility. Remove dead buds from camellias and pinch back. Fertilize camellias with acidic fertilizer following budding period. Item 1 D -Parking Lot 4 off Cambridge Ave. Item 1 E -Parking Lot 5 (Garage) off Cambridge Ave. at Mimosa Ln. Item 1 F -Parking Lot 6 off Birch St. and Sherman Ave. Item 1 G -Parking Lot 7 off Sherman Ave. at Ash St. Item 1 H -Parking Lot 8 off Sherman Ave. and EI Camino Real Item 11 -Parking Lot 9 off Cambridge Ave. at Birch St. Item 2 -University Avenue Business District Parking Lots and Garages Landscape and hardscape maintenance. This includes litter removal from the entire parking lot, not just islands; and includes blowing the sidewalks. Item 2A -Parking Lot A -400 block of Emerson St. Item 2B -Parking Lot C -400 block of Ramona St. Item 2C -Parking Lot D -Hamilton Ave. at Waverly St. Item 2D -Parking Lot E -Gilman St. at Bryant St. Item 2E -Parking Lot F -Florence St. at Waverly St. Item 2F -Parking Lot G -Gilman St. at Waverly St. Item 2G -Parking Lot H -Cowper St. at Hamilton Ave. Item 2H Parking Lot J-Cowper-Webster Routine Maintenance Report any safety issues or vandalism during your site visit. Report any irrigations problems 39 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\Cl 0 135477- Gachina\Contract Document.doc C. PARKS SECTION C PARKS Item 1 -Bol Park -Laguna Ave. between Matadero Ave. and Barron Ave. South boundary extends to the north side of the Matadero Creek bridge Open space/native plant areas to the west of turf: Ivy must be kept 2 feet from trees. Mow open space/native plant area once a year after wild flowers have bloomed upon request of project manager. Oaks along creek: Do not trim any oak branches except for edging along path as currently done. This park has decomposed/granite pathways that cannot be cleaned w/ a leaf blower Item 2 -Boulware Park ,..-Between Fernando Ave. and Chestnut Ave. Includes pump station on the south west side of park. Keep vines off building and fence lines clear to 3 feet. Basketball court shall be cleaned twice monthly in accordance with posted schedule. Specifications are included in the tennis court/basketball court specifications section. Item 3 -Bowden Park -High St. at N. California Ave. Item 4 -Briones Park -Arastradero Rd. at Clemo Ave. Includes traffic barrier at the north side of Clemo Ave. at Maybell Ave. This park has decomposed granite pathways that cannot be cleaned w/ a leaf blower Includes fence line at west side of park from Arastradero Rd. to Maybell Ave. Mowing to be done on scheduled day, Thursday. Mowing must be done by 10:00 A.M. 41 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER -CM FOLDERS\KA THY\Contra cts\CI0 135477- Gachina\Contract Document.doc accordance with posted schedule. Specifications are included in the tennis court/basketball court specifications section. Includes Dog Run located at the south east side of park. Decomposed granite area must be inspected for holes three times per week and filled as needed. Fill low spots with decomposed granite as needed. Water and compact loose d.g. as needed. Mowing to be done on scheduled day, Thursday by 2:00 P.M. Includes walkway to Middlefield Rd. Item 12 -Johnson Park -Hawthorne Ave. at Waverly St. Does not include Community Garden Sand volleyball court shall be kept raked and clean of debris. Sand volleyball court shall be kept rot tilled to relieve compaction and filled with approved sand as needed and as requested by Project Manager. Item 13 -Lytton Plaza -Corner of Emerson and University Avenue Remove litter and debris, empty garbage cans. Rake decompose granite pathway to eliminate litter, debris and to eliminate low spots and pot holes. (do not use blowers on decomposed granite pathways). Keep fountain filter clean and free of litter and debris. Keep screens around fountain free of any litter and debris. Item 14 -Mayfield Park/College Terrace Library -Wellesley St. between College Ave. and California Ave. (Mayfield Park and Mayfield Library is closed and will open again at the end of November, 2010). Area must be blown before 11 :00 a.m. when library is open. Area also includes plant material on side of road around day care center. Item 15-Monroe Park -Monroe Dr. at Miller Ave. Item 16 -Peer's Park -Park Blvd. between Stanford Ave. and Sequoia Ave Area also includes pump station and driveway at the south east corner of park. Keep ivy off building. Keep fence lines clear to 3 feet. Fence line at the east side of park, along the railroad tracks, must be inspected daily for vandalism. Contractor must enclose holes in fence with yellow caution tape immediately if a hole is found. Contact Project Manager immediately. 43 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\sOLICIT A TlONS\CURRENT BUYER -CM FOLDERS\KA THY\Contra cts\C 1 0 135477- Gachina\Contract Document.doc Item 24 -Weisshaar Park -2298 Dartmouth St. between College Ave. and California Ave. Clean tennis courts twice per month as directed by the Project Manager Tennis courts and basketball courts shall be cleaned twice monthly in accordance with posted schedule. Specifications are included in the tennis court/basketball court specifications section. Item 25-Werry Park -2100 Dartmouth St. between College Ave. and Stanford Ave. C2. Fields Item 27-Bowling Green-474 Embarcadero road at Cowper Internal Turf Care The contractor shall begin by having a Soil Fertility and Agricultural suitability test, ( A04), by the Soil and Plant Laboratory, in Santa Clara. This test shall be performed annually. Mowat a maximum height of 1/8 inch with a greens mower MWF during the months of March -November. Mowing to be done in diagonal directions Remove clippings. Activate groomer 4x monthly in opposite directions. Thatch the green to % inch every 5 weeks June -October Mow 2x1weekly in December, remove clippings Clean the green of debris 2x weekly annually (Tuesday and Thursday) Manually supplement watering of green edges as needed. Especially east edge beneath Oak trees. (Usually 3x /weekly) Manually edge green twice monthly Rake and clean sand bunkers 2x monthly Clean asphalt and walkway areas around the clubhouse and green 3x1week, MWF Manually aerate dry spots, and edges of the green as needed (edges need to done 3x annually as a minimum).Remove cores Aerate the entire green with 3/8 tines in July and October Apply fungicide to the green annually as needed Control weeds outside of green once monthly. Mulch the length of the west side of the green 6 feet from the edge December February Check the irrigation system for any malfunctions and adjustments weekly. Report immediately the valve number and the irrigation problem. Fertilize with ammonium sulfate once every 5 weeks June -October 45 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\KATHY\Contra cts\CI0135477- Gachina\Contract Document.doc Paddle ball courts and Tennis courts should be cleaned twice monthly in accordance with the posted schedule. Specifications are included in the tennis court /basketball court specifications section. Utilize an electric blower once weekly to clean hardscape and pathway areas. Remove litter/debris from site daily. Clean BBQ areas and grills twice weekly Monday/Friday Edge turf area· monthly Mow turf weekly on Tuesday within a five hour window Remove grass clippings from pathways and clumps of grass from turf after mowing cycles. ~ Leaves should be removed from turf each week prior to mowing as needed (Especially Fall Season) A lawn sweeper is recommended. Prune shrubs zones 3x annually Mow ivy once year during March. Chemical and mechanical control of weeds once monthly Aerate 3 xs annually to a depth of 5 inches Fertilize 3 xs annually Clean hardscape areas after fertilizing Replace landscaping as needed -Plants to be approved by the City. Mulch with clean wood chips (3inch deep) all landscape beds once annually in November. Eradicate evasive pests causing turf or plant damage in a method approved by the City. Level areas in the turf on an as needed basis to prevent tripping hazards and to prevent muddy or areas of standing water. Maintain trees up to 15 feet in height. Includes staking, raising limbs, mulching rings around trees, etc. Dog Run Renovation Annually renovate the decomposed granite area for a minimum amount of time to rototill and level the site. Area should be wet and rolled until packed before opening. Advance notice of closure must be posted a week in advance. Trim shrubs and remove weeds along west fence line 3x annually. Add decomposed granite if needed to level the area. Turf Renovation The turf areas west of the parking lot restroom must be renovated annually beginning in March and opened in May. The area should be fenced and signed with closure dates. Aerate the turf to a depth of five inches after flagging irrigation rotors, valves, etc. Topdress with a minimum of 25 tons of fairway sand, and 25 tons of T Mix. The goal is to level the turf areas and eliminate low spots, holes, and bumpy areas. The field should not have any areas that allow for standing water or depressions greater than % inch. Drill seed field with a sport field blend of 80% rye and 20% bluegrass at a rate of 5 Ibs/1000sq. ft. Broadcast seed over bare soil areas. Mulch with a minimum of 25 yards of 47 Rev. January 11,2010 \\Cc-terralshared\ASD\PURCH\SOLlCIT A TIONS\CURRENT BUYER -CM FO LDERS\KA THY\Contra cts\Cl 0 135477- Gachina\Contract Document.doc Eradicate evasive pests causing turf or plant damage in a method approved by the City. Level areas in the turf on an as needed basis to prevent tripping hazards and to prevent muddy or areas of standing water. Maintain trees up to 15 feet in height. Includes staking, raising limbs, mulching rings around trees, etc. Turf Renovation The turf areas west of the restroom must be renovated annually in the beginning of March and be opened by May. The area should be fenced and signed indicating closure dates. Aerate the turf to a depth of 3" to 4" after flagging irrigation rotors, valves, etc. Topdress with a minimum of 25 tons of fairway sand, and 25 tons of T Mix. The goal is to level the turf areas and eliminate low spots, holes, and bumpy areas. The field should not have any areas that allow for standing water or depressions greater than % inch. Drill seed field with a sport field blend of 80% rye and 20% bluegrass at a rate of 5 Ibs/1000sq. ft. Broadcast seed over bare soil areas. Mulch with a minimum of 25 yards of nitrified sawdust in order to cover seeded area at a depth of Yt inch. The grass should be dense and support sport activities upon opening. Mowing: All mowing must be done on the scheduled day. The scheduled day is Tuesday. Mowing to be done no later than 3:30 P.M. 49 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\Cl 0 135477- Gachina\Contract Document.doc Mowing: Outside lawns mowed on scheduled day, Tuesday. Mowing must be done by 3:30 P.M. Item 5 -Bike Paths -Locations varied (see below) Locations: 1. Wilke Ave. to Monroe Dr. 2. 1048 Loma Verde Ave. 3. Greer Bike Paths 3142 Greer Rd. to Morris Dr. to Stockton PI. 4. 300 Manzanita Ave. 5. 1500 Portola Ave. 6. 200 Sequoia Ave. 7. 443 Ferne Ave. 8. Duncan PI. 9. 1445 Hamilton Ave. 10. 101 Freeway Bridge to East Bayshore Rd. 11. Matadero Bike Path 12. Homer Bike Path , Item 6 -Bowling Green Spraying -474 Embarcadero Rd. Insect and disease control shall be done in accordance with City specifications. The applicator shall be requires to apply material supplied by the City such as Pace, Fore, Dursban, Eagle, Kerb or any other material deemed necessary to eradicate the presence of any pest or disease. All materials shall be applied according to label rates at intervals specified by the Project Manager. Application of materials shall commence before 7:00 am and shall be completed prior to 9:00 am unless the Project Manager specifies a change. Applications must be performed within 48 hours of request. Item 7 -Children's Library -1276 Harriet St. Includes both front and rear landscaping and secret garden This area also includes both driveways, with dumpsters and shrubs. Item 8 -Children's Theatre -1305 Middlefield Rd. Prune Xylosma hedges three times per year, maintain current shape Prune redbud trees once per year as directed by Project Manager Mow turf area once per week. Adjust mower height as directed by Project Manager 51 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PJJRCH\SOLlClT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\C I 0 135477- Gachina\Contract Document.doc Mow 3 feet on east side of path. Remove dead plants and report any pest problems to project manager. Item 13 -Hanover Fire Station -2675 Hanover St. Item 14 -Junior Museum -1451 Middlefield Rd. Ramp and entrance must be blown and kept free of debris to avoid slip hazard. Includes parking lot. Item 15 -Lucie Stern Community Center -1305 Middlefield Rd. Includes parking lot and landscaped medians Includes all parking lot area landscaping Includes all exterior landscaping Contractor mows small lawns in open courtyard and interior courtyard Includes landscaping around air conditioner building Includes interior courtyard/fire ring at the Boy Scout area Brick pathways must be kept weed-free and free of moss/mold Wash brick pathways and open courtyard once per week when Olive tree sheds fruit. Includes stairway on west side of building Re-plant flagpole annual bed in spring and fall with 14 Jumbo Cell packs annuals. The Project Manager shall determine plant species. Maintenance schedule must be adjusted to accommodate special events Mowing outside lawns must be done on scheduled day, Tuesday. Mowing must be done by 3:30. P.M. Item 16 -Main Library -1213 Newell Rd. Blowers at this site may be restricted and shall be used only before the library is open. 53 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICITA TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI0135477- Gachina\Contract Document.doc Item 19-Mitchell Fire Station -3600 Middlefield Rd. Area includes driveway along church: trim back and spray weeds. Mow Ivy once a year. Item 20 -Municipal Service Center -3201 East Bayshore Rd. North boundary extends to bridge north of parking lot Area includes weed and litter control inside facility, picnic area, along all edges, around gas station, parking lots, and fence lines. All exterior fence lines must maintain a minimum 3-foot clearance Oleanders in front of parking lot and suckers on poplar must be trimmed for visibility. The sidewalk strip must be continually free of weeds. The area around the "A" building, including the warehouse exterior storage area must be cleaned and debris blown out away from building for the sweeper to remove. Includes all exterior garbage cans, including aggregate containers. Item 21-Roth Building -Homer St. at Bryant St. Includes manually watering 5 building valves (turf and landscape), and watering camellias in patios/entry with hoses twice a week March through November. Areas protected from rainfall must be watered year round. Item 22-Tower Well Site -Alma St. at Hawthorne Ave. Includes sidewalk strips on Alma St. and on Hawthorne Ave. Trim vines on back of structure as directed by the Project Manager Wash benches and informational signs once per month Item 23-Sterling Canal Service to begin at 8:30 am Keep pathways free of weeds / Keep pathway level and free of potholes. 55 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CIO 135477- Gachina\Contract Document.doc Weed parkway area beginning at the Lorna Verde entrance. The area should include fence to fence boundaries, until the end of the decomposed granite pathways. Remove litter and empty trash receptacles. Prune treed that are less than fifteen feet in height Mow ivy and vines once annually. Prune vegetation 3x annually 56 Rev. January 1 I, 2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI 0 135477- Gachina\Contract Document.doc SECTION E UTILITY SUB-STATIONS and WELL SITES E. UTILITY SUB-STATIONS AND WELL SITES All substations need to be cleaned twice a year inside fenced areas with the project manager or inspector present for safety. Fence lines must be kept free of plant material. Includes all landscaping surrounding these sites. Item 1 -Adobe Creek Substation and Pumpstation -1157 East Meadow Ave. Includes electric station on east side of street and the pump station on the west side of street Item 2 -Colorado Substation -1040 Colorado Ave. Area includes booster station across the street on the east side of W. 8ayshore Rd. Mow Turf once per week on scheduled day, Wednesday. Item 3 -Gas Recovery Station 4 -Oak Rd. and Searsville Rd. (Stanford) Item 4 -Hale Well Site -999 Hale Ave. Interior access provided by Project Manager Manual watering should be done weekly between March and November. Maintain a 3-foot clearance along fence lines Item 5 -Hanover Substation -3350 Hanover St. Manual watering should be done weekly between March and November. Item 6 -Hansen Substation -950 Hansen Way. Item 7 -Middlefield Sub Station -1150 Middlefield Rd. Item 8 -Mitchell Substation -3600 block of Middlefield Item 9 -Page Mill Substation -Page Mill Rd. at Old Page Mill Rd. Item 10 -Park Blvd Substation -3291 Park Blvd. Item 11 -PG&E Substation -West Bayshore Rd. south of Colorado Ave. 57 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER -CM FOLDERS\KA THY\Contra cts\CI 0 135477- Gachina\Contract Document.doc Contractor is responsible for overall weed control throughout the site. Particular attention paid to keeping weeds removed from all plant basins. Also, monthly control of all weeds on slopes with string trimmer to a height of 2". Contractor will be required to provide manual watering of plant material on a as needed basis on a frequency sufficient to ensure the plantings do not show any sides of drought stress. Immediately remove all Lepidium latifolium (Pepperweed plants by hand especially along the lower banks of the mitigation area). 59 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI 0 135477- Gachina\Contract Document.doc 5) Courts are not to be cleaned when it rains, but as soon after rain as possible. 6) Monthly reports and invoices shall be submitted on the 5th of each month indicating the condition of the tennis nets, windscreens, and court cleanliness. Park Courts Item 1 --Peers Park, 1899 Park Blvd Courts: 2 Trash receptacles: 1 Item 2 --Rinconada Park, 777 Embarcadero Rd. and 1415 Hopkins Courts: 9 Trash receptacles: 5 Item 3 --Weisshaar Park, 2298 Dartmouth Courts: 2 Trash receptacles: 2 Item 4 --Hoover Park, 2855 Cowper Courts: 2 Trash receptacles: 2 Item 5 --Mitchell Park, 600 E. Meadow Courts: 7 tennis courts and 2 Paddle tennis courts Trash receptacles: 3 Item 6 --Terman Park, Arastradero Rd Courts: 2 Trash receptacles: 2 Item 7 -Briones Park, Arastradero Rd. at Clemo Ave. Basketball Courts: 2 Trash receptacles: 2 Item 8 -Boulevard Park, Between Fernando Ave. and Chestnut Ave. Basketball Courts: 2 Trash receptacles: 2 Item 9 -Greer Park, Greer Rd Basketball Courts: 2 Trash receptacles: 2 School Courts 61 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER -CM FOLDERS\KA THy\Contra cts\CI 0 135477- Gachina\Contract Document.doc SECTION H BYXBEE PARK -VEGETATION MANAGEMENT PROJECT (Services to begin July 1, 2011). BYXBEEPARK -VEGETATION MANAGEMENT PROJECT Scope of Work: Vegetation Management in Palo Alto's Byxbee Park. Background: Byxbee park is a 25 acre park built on a closed portion of the Palo Alto Landfill. The park consists of rolling terrain and a number of artistic forms. The Public Arts Commission took a lead role . in the design of the park and the Commission has determined a look for the park. The Open Space and Sciences section has the responsibility for implementing the Commissions' plans and for general upkeep of the park. General Structure: The park has been divided into three areas (Marked A, B & C --see attached map). The contract will be implemented according to the schedule shown below. The City may, at its discretion, decide to eliminate one or more of the following task for any given year. Tasks: (1) Mowing Maintenance: Mowing will occur in late spring to reduce annual weedy bio-mass and provide sunlight to emerging perennial natives. The entire seeded area will be mowed to a height of 4 - 6 inches. The mowing shall be repeated as needed to meet the height specifications. Mowing will be done with a wheeled tractor and flail or rotary mower. (2) Restoration of Renegade Trails or Paths: Formal walking and bicycle trail routes have been constructed at Byxbee Park of six-foot or eight-foot widths. The ground oystershell tread paths are lined with 2"x4"wooden bender boards. On a regular basis the contractor shall remove all vegetation from the tread of the trail between the bender boards and maintain a smooth and unobstructed tread surface. Because cyclists and hikers will from time to time create "renegade" trails or paths, the contractor will be responsible for restoring these areas by chisel and 63 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\C 10135477- Gachina\Contract Document.doc Herbicide Use: While herbicides are not preferred for the control of weeds, herbicides may be used with the express, written permission of the Superintendent of Open Space and Sciences. Herbicides may be used only for specific designated areas and and may only be applied within a designated time frame. Should Contractor wish to use herbicides, they must submit a written request to the City's Superintendent of Open Space and Sciences prior to such usage. Additional Services Required:: 1. Contractor will be responsible for everything from the levee up to the hills. This includes both sides of the drainage ditch and the benches. They will also weed whip around the art structures. 2. Contractor will also clear all of the hillocks free of weeds. 3. Contractor will mow as often as is needed to keep the weeds and grasses at the 406 inch level. 4. Contractor will repair reengage trails by seeding them with native grass seed in the winter. 5. Contractor will phone the CITY (Daren Anderson) prior to coming out to work in the area. Contractor will phone 2 days in advance when they are scheduled to spray herbicides. 6. Contractor will be out to monitor the weed and grass height, and in the event the City feels it is too high, the City, (Daren Anderson) will contact Contractor for service as needed. 65 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER -CM FOLDERS\KA THY\Contra cts\Cl 0 135477- Gachina\Contract Document.doc Terman Park Ventura School grounds Werry Park Schools JLS Jordan Median & Roadside Strips University Ave. California Ave. California Ave/Birch Medians University Islands/Underpass V. MONDAY, WEDNESDAY, FRIDAY SERVICE open The following sites require service on every Monday, Wednesday, and Friday: Parks EI Palo Alto Park Hale Well Park Mayfield Park (Mayfield Park and Mayfield Library is closed and will again at the end of November, 2010) Sarah Wallis Park Terman Park Timothy Hopkins Creekside Parks Weisshaar Park City Facilities Lucie Stern Community Center Parking Lots University Ave Business District California Ave Business District Midtown Parking Lots CowperlWebster Ted Thompson Garage Schools Escondido Walter Hayes Hoover EI Carmela 67 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICITATlONS\CURRENTBUYER-CMFOLDERS\KATHY\Contracts\CI0135477- Gachina\Contract Document.doc Page Mill Islands EI Camino Real Islands Embarcadero Islands/Underpass Forest Lawn Parkway E. & W. Greenwich Cui de Sacs Homer Street Underpass City Facilities Arastradero Fire Station Alma Fire Station Animal Shelter Embarcadero Fire Station Flood Basin Hanover Fire Station Mitchell Fire Station Municipal Service Center Utility Sub-Stations & Well-Sites Colorado Substation Water Quality Plant Geng Rd. Substation S.F. Creek Substation v. MONTHLY Median & Roadside Strips Alma S1. West N. Calif/Jordan Evergreen Park Closures/Park Blvd. Medians Quarry Islands Miranda Islands 101 Sound walls Bryant/Addison Circle Lytton/Guinda Circle Eleanor Park Area Cui de Sacs Island Drive Melville Island Arastradero Islands City Facilities Bike Paths Bowling Green Spraying (monthly or as needed not to exceed 12 applications per year) Utility Sub-Stations & Well-Sites Adobe Creek Substation and Pump Station 69 Rev. January 11,2010 \\Cc-tem\Shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI 0 135477- Gachina\Contract Document.doc (Services to begin July 1, 2011). . .EXHIBITC COMPENSATION All Payments are based upon City's acceptance of Contractor's performance of the Services. The maximum amount of compensation to be paid to Contractor, over the three year Term of this Agreement, including both payment for services and reimbursable expenses, shall not exceed One Million Seven Hundred Ninety Two Thousand Nine Hundred Fifty Dollars ($1,792,950.00). Any hours worked for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to City. Compensation for the Three Year Term, payable in Monthly allotments, will be paid out per as follows: Year 1 (July 1,2010 through June 30,2011) = $577,796 Year 2 (July 1, 2011 through June 30, 2012) = $596,261 Year 3 (July 1,2012 through June 30, 2013) = $618,893 Total = $1,792,950.00 Specific areas awarded are included in Exhibit C1. The City will compensate Contractor for Services performed pursuant to the terms and conditions of this contract and accepted by the City. 71 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER -CM FOLDERS\KA THy\Contra cts\Cl 0 135477- Gachina\Contract Document.doc BID Acreage of UNIT DESCRIPTION, WITH UNIT PRICE IN Annual Annual Annual ITEM Site WORDS COST Per COST Per COST Per # (PRICE IS INCLUSIVE OF ALL SITE SITE SITE (if APPLICABLE TAXES) For Year 1 For Year 2 For Year 3 applicable). Per Year for All Services Services landscape maintenance for Oregon Expressway 7 2.7 Per Year Labor, equipment, material, and $11,380 $11,380 $11,655 for All transportation to provide Services landscape maintenance for San Antonio Road 8 3.3 Per Year Labor, equipment, material, and $18,319 $18,321 $18,762 .-forAIl transportation to provide Services landscape maintenance for University Avenue 9 0.2 Per Year Labor, equipment, material, and ,$2,713 $2,714 $2,779 for All transportation to provide Services landscape maintenance for Downtown Tree Wells 10 2.5 Per Year Labor, equipment, material, and $6,222 $6,222 $6,372 for All transportation to provide Services landscape maintenance for Page Mill Rd. 11 1.0 Per Year Labor, equipment, material, and $11,319 $11,320 $11,593 for All transportation to provide Services landscape maintenance for EI Camino Real 12 0.2 Per Year Labor, equipment, material, and $904 $905 $926 forAIl transportation to provide Services landscape maintenance for Forest Avenue 13 0.5 Per Year Labor, equipment, material, and $2,028 $2,028 $2,077 for All transportation to provide Services landscape maintenance for N. California Avenue 14 0.1 Per Year Labor, equipment, material, and $2,686 $2,686 $2,751 for All transportation to provide Services landscape maintenance for Arastradero Rd. 15 0.5 Per Year Labor, equipment, material, and $2,960 $2,960 $3,032 for All transportation to provide Services landscape maintenance for Evergreen Park/Park Blvd. Medians 16 0.5 Per Year Labor, equipment, material, and $1,316 $1,316 $1,347 for All transportation to provide Services landscape maintenance for Quarry Road 17 0.1 Per Year Labor, equipment, material, and $1,699 $1,699 $1,740 for All 73 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THy\Contra cts\Cl 0 1354 77-Gachina\Contract Document. doc Total Cost for Services for ALL 3 Years , $34,415 $55,402 $8,206 $18,816 $34,232 $2,735 " $6,133 $8,123 $8,952 $3,979 $5,138 BID Acreage of UNIT DESCRIPTION, WITH UNIT PRICE IN Annual COST Annual Annual ITEM Site WORDS Per SITE COST Per COST Per # (if (PRICE IS INCLUSIVE OF ALL For Year 1 SITE SITE applicable) APPLICABLE TAXES) For Year 2 For Year 3 Per Year for All Services 1A 0.4 Per Year Labor, equipment, material, and $233 $233 $239 for All transportation to provide Service landscape maintenance for California Ave. Business ~ District -Parking Lot 1 18 0.4 Per Year Labor, equipment, material, and $223 $223 $229 for All transportation to provide Services landscape maintenance for California Ave. Business District -Parking Lot 2 Ie 0.4 Per Year Labor, equipment, material, and $981 $981 $1,005 for All transportation to provide Services landscape maintenance for California Ave. Business District -Parking Lot 3 1D 0.4 Per Year Labor, equipment, material, and $578 $578 $592 for All transportation to provide Services landscape maintenance for California Ave. Business District -Parking Lot 4 1E 0.4 Per Year Labor, equipment, material, and $1,216 $1,216 $1,245 for All transportation to provide Services landscape maintenance for California Ave. Business District -Parking Lot 5 1F 0.4 Per Year Labor, eqUipment, material, and $814 $814 $834 for All transportation to provide Services landscape maintenance for California Ave. Business , District -Parking Lot 6 1G 0.4 Per Year Labor, equipment, material, and $904 $905 $926 for All transportation to provide Services landscape maintenance for California Ave. Business District -Parking Lot 7 1H 0.4 Per Year Labor, equipment, material, and $953 $953 $976 for All transportation to provide Services landscape maintenance for California Ave. Business District -Parking Lot 8 11 0.4 Per Year for All Labor, equipment, material, and $863 $863 $884 75 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\KATHy\Contra cts\CIOI35477-Gachina\Contract Document.doc Total Cost per site for 3 Years $705 $675 $2,967 $1}48 $3,677 $2,462 $2,735 $2,882 $2,610 BID Acreage of UNIT DESCRIPTION, WITH UNIT PRICE IN Annual COST Annual Annual ITEM Site WORDS Per SITE COST Per COST Per # (if (PRICE IS INCLUSIVE OF ALL For Year 1 SITE SITE applicable) APPLICABLE TAXES) For Year 2 For Year 3 Per Year for All Services 2H 0.04 Per Year Labor, equipment, material, and $1,162 $1,162 $1,190 for All transportation to provide Services landscape maintenance for University Ave. Business District -Parking Lot K 21 ·0.04 Per Year Labor, equipment, material, and $669 $669 $685 for All transportation to provide Services landscape maintenance for University Ave. Business District -Parking Lot N 2J 0.04 Per Year Labor, equipment, material, and $1,212 $1,212 $1,241 for All transportation to provide Services landscape maintenance for Parkina Lot J 2K 0.04 Per Year Labor, equipment, material, and $533 $533 .$547 for All transportation to provide Services landscape maintenance for University Ave. Business District -Parking Lot P 2L 0.04 Per Year Labor, equipment, material, and $651 $651 $667 for All transportation to provide Services landscape maintenance for University Ave. Business District -Parking Lot R 2M 0.04 Per Year Labor, equipment, material, and $1,176 $1,176 $1,204 for All transportation to provide Services landscape maintenance for University Ave. Business District -Parking Lot S/L 2N 0.04 Per Year Labor, equipment, material, and $1,176 $1,176 $1,204 for All transportation to provide Services landscape maintenance for University Ave. Business District -Parking Lot S 20 0.04 Per Year Labor, equipment, material, and $1,122 $1,122 $1,149 for All transportation to provide Services landscape maintenance for University Ave. Business District -Parking Lot T 3 0.1 Per Year Labor, equipment, material, and $592 $592 $607 for All transportation to provide Services 77 Rev. January 11, 2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI 0 135477-Gachina\Contract Document.doc Total Cost per site for 3 Years $3,514 $2,023 $3,665 $1,613 $1,969 $3,556 $3,556 $3,393 $1,791 BID Acreage of UNIT DESCRIPTION, WITH UNIT PRICE Annual Annual COST Annual ITEM Site IN WORDS COST Per Per SITE COST Per # (PRICE IS INCLUSIVE OF ALL SITE For Year 2 SITE (if APPLICABLE TAXES) For Year 1 For Year 3 applicable) Per Year for All Services Palo Alto Park 8 9.6 Per Year for Labor, equipment, material, $11,840 $11,841 $12,126 All Services and transportation to provide landscape maintenance for Eleanor Park 9 0.5 Per Year for Labor, equipment, material, $3,700 $3,700 $3,790 All Services and transportation to provide landscape maintenance for Hale Well Park 10 2.0 Per Year for Labor, equipment, material, $10,031 $10,032 $10,274 All Services and transportation to provide landscape maintenance for Heritage Park 11 4.2 Per Year for Labor, equipment, material, $17,541 $17,542 $17,965 All Services and transportation to provide landscape maintenance for Hoover Park 12 2.5 Per Year for Labor, equipment, material, $9,593 $9,593 $9,825 All Services and transportation to provide landscape maintenance for Johnson Park 13 Per Year for Labor, equipment, material, $7,290 $7,291 $7,467 All Services and transportation to provide landscape maintenance for Lytton Plaza 14 1.7 Per Year for Labor, equipment, material, $3,357 $5,756 $5,895 All Services and transportation to provide landscape maintenance for Library Mayfield Park! College will only Terrace Library (Mayfield be Park and Mayfield opened Library is closed and will for 7 months open again at the end of in Year 1 November, 2010, Quote for 7 months in Year 1). 15 .55 Per Year for Labor, equipment, material, $6,304 $6,304 $6,456 All Services and transportation to provide landscape maintenance for Monroe Park 16 4.7 Per Year for Labor, equipment, material, $7,838 $7,839 $8,028 All Services and transportation to provide 79 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI 0 135477-Gachina\Contract Document.doc Total Cost per site for 3 Years $35,807 $11,190 $30,337 $53,047 $29,011 $22,048 $15,008 $19,064 $23,705 BID Acreage of UNIT DESCRIPTION, WITH UNIT PRICE Annual Annual COST Annual ITEM Site IN WORDS COST Per Per SITE COST Per # (PRICE IS INCLUSIVE OF ALL SITE For Year 2 SITE (if APPLICABLE TAXES) For Year 1 For Year 3 applicable) Per Year for All Services 26 Item No. 26 Not to Be Awarded 27 1.9 Per Year for Labor, equipment, material, $21,474 $21,476 $21,994 All Services and transportation to provide landscape maintenance for Bowling Green 28 Item No. 26 Not to Be Awarded 29 Item No. 26 Not to Be Awarded 30 21.4 Per Year for Labor, equipment, material, $39,250 $39,263 $40,209 All Services and transportation to provide landscape maintenance for Mitchell Park 31 19.0 Per Year for Labor, equipment, material, $37,165 $37,168 $38,063 All Services and transportation to provide landscape maintenance for Rinconada Park ) 32 Item No. 26 Not to Be Awarded Total for C. Parks (Items 1 $324,388 $326,811 $334,688 through 32) D. City Facilities: Work of installing complete work in a'ccordance with the Gen.eral Requirements and specifications detailed within this Attachment A, herein: BID Acreage of UNIT DESCRIPTION, WITH UNIT PRICE IN Annual Annual Annual ITEM Site WORDS COST Per COST Per COST Per # (PRICE IS INCLUSIVE OF ALL SITE SITE SITE (if APPLICABLE TAXES) For Year 1 For Year 2 For Year 3 applicable) Per Year for All Service s 1 0.2 Per Year Labor, equipment, material, and $1,864 $1,864 $1,908 for All transportation to provide Services landscape maintenance for Alma Fire Station 2 0.5 Per Year Labor, equipment, material, and $3,478 $3,478 $3,562 for All transportation to provide Services landscape maintenance for Animal Shelter 3 0.5 Per Year Labor, equipment, material, and $1,831 $1,831 $1,875 81 Rev. January 11,2010 Total Cost per site for 3 Years $64,944 $118,732 $112,396 $985,887 Total Cost per site for 3 Years $5,636 $10,518 $5,537 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\C 10 135477 -Gachina\Contract Document.doc BID Acreage of UNIT DESCRIPTION, WITH UNIT PRICE IN Annual Annual Annual Total Cost per ITEM Site WORDS COST Per COST Per COST Per site for 3 Years # (PRICE IS INCLUSIVE OF ALL SITE SITE SITE (if APPLICABLE TAXES) For Year 1 For Year 2 For Year 3 applicable) Per Year for All Service s for All transportation to provide Services landscape maintenance for Hanover Fire Station 14 0.6 Per Year Labor, equipment, material, and $1,080 $1,080 $1,106 $3,266 for All transportation to provide Services landscape maintenance for Junior Museum 15 3.0 Per Year Labor, equipment, material, and $12,246 $12,247 $12,542 $37,035 for All transportation to provide Services landscape maintenance for Lucie Stern Community Center 16 1.9 Per Year Labor, equipment, material, and $7,707 $7,708 $7,893 $23,308 for All transportation to provide Services landscape maintenance for Main Library 17 2.7 Per Year Labor, equipment, material, and $ $ $5,322 $5,322 for All transportation to provide Services landscape maintenance for Park Park Mitchell Community Center Closed Closed (The Mitchell Park Library and Community Center will be closed June 1st, 2010 and will be closed for two years. Quote Cost for Year 3 Only). 18 3.0 Per Year Labor, equipment, material, and $ $ $2,939 $2,939 for All transportation to provide Park Park Services landscape maintenance for Closed Closed Mitchell Library 19 1.3 Per Year Labor, equipment, material, and $1,910 $1,910 $1,957 $5,777 for All transportation to provide Services landscape maintenance for Mitchell Fire Station 20 0.5 Per Year Labor, equipment, material, and $6,671 $6,672 $6,832 $20,175 for All transportation to provide Services landscape maintenance for Municipal Service Center 21 Per Year Labor, equipment, material, and $1,442 $1,442 $1,447 $4,361 for All transportation to provide Services landscape maintenance for Roth Building 22 0.2 Per Year Labor, equipment, material, and $1,274 $1,275 $1,305 $3,853 83 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER -CM FOLDERS\KA THY\Contra cts\Cl 0 135477 -Gachina\Contract Document.doc BID Acreage of UNIT DESCRIPTION, WITH UNIT PRICE IN Annual Annual Annual Total Cost per ITEM Site WORDS COST Per COST Per COST Per site for 3 Years # (PRICE IS INCLUSIVE OF ALL SITE SITE SITE (if APPLICABLE TAXES) For Year 1 For Year 2 For Year 3 applicable) Per Year for All Services Services transportation to provide landscape maintenance for Hanover Substation 6 0.2 Per Year Labor, equipment, material, and $767 $767 $786 $2.320 for All transportation to provide Services landscape maintenance for Hansen Substation 7 0.2 Per Year Labor, equipment, material, and $850 $850 $870 $2,570 for all transportation to provide Service landscape maintenance for Middlefield Substation 8 0.2 Per Year Labor, equipment, material, and $795 $795 $814 $2.404 for All transportation to provide Services landscape. maintenance for Mitchell Substation 9 0.9 Per Year Labor, equipment, material, and $274 $274 $281 $829 for All transportation to provide Services landscape maintenance for Page Mill Substation 10 0.1 Per Year Labor, equipment, material, and $1,370 $1,370 $1,403 $4,143 for All transportation to provide Services landscape maintenance for Park Blvd. Substation ( 11 0.9 Per Year Labor, equipment, material, and $1,864 $1,864 $1,909 $5,637 for All transportation to provide Services landscape maintenance for PG&E Substation 12 0.7 Per Year Labor, equipment, material, and $439 $439 $449 $1,327 for All transportation to provide Services landscape maintenance for Quarry Electric Station 13 0.1 Per Year Labor, equipment, material, and $877 $877 $898 $2,652 for All transportation to provide Services landscape maintenance for SCAADA Building Grounds 14 2.6 Per Year Labor, equipment, material, and $7,055 $7,055 $7,225 $21,335 for All transportation to provide Services landscape maintenance for Water Quality Control Plant 15 0.3 Per Year Labor, equipment, material, and $1,743 $1,743 $1,785 $5,271 for All transportation to provide Services landscape maintenance for Geng Road Substation 16 0.4 Per Year Labor, equipment, material, and $356 $357 $365 $1,077 for All transportation to provide Services landscape maintenance for 85 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLlCIT A TIONS\CURRENT BUYER-CM FOLDERS\KATHy\Contra cts\CI0135477-Gachina\Contract Document. doc 2 NA Per Year Labor, equipment and $2,086 $2,086 $2,136 for All transportation to provide Court Services Cleaning Maintenance for Gunn High School (7 courts) 3 NA Per Year Labor, equipment and $1,921 $1,921 $1,968 for All transportation to provide Court Services Cleaning Maintenance for JLS (6 courts) 4 NA Per Year Labor, equipment and $3,072 $3,072 $3,147 for All transportation to provide Court Seniices Cleaning Maintenance for Jordan Middle School (6 courts) 5 NA Per Year Labor, equipment and $1,757 $1,757 $1,799 for All transportation to provide Court Services Cleaning Maintenance for Terman School (6 courts) Total for G -Tennis Court $11,086 $11,086 $11,354 Cleaning Maintenance (Items 1 -5) H. Byxbee Park Vegetation Management Project Site: Work of installing complete work in accordance with the General Requirements and specifications detailed within this Attachment A herein" , BID Acreage of UNIT DESCRIPTION, WITH UNIT PRICE IN Annual Annual Annual ITEM Site WORDS (PRICE IS INCLUSIVE OF ALL COST Per COST Per COST Per # (if Per APPLICABLE TAXES) SITE SITE SITE applicable). Year for For Year 1 For Year 2 For Year. 3 All Services 1 Per Labor, equipment, material, and No $16,019 $16,405 25 Year for transportation to provide Services All Services landscape maintenance and Required vegetation management for Year 1 Byxbee Park. Services to begin July 1, 2011. Quote costs for year 2 and Year 3 only. Total for H -Byxbee Park $ 0.0 $16,019 $16,405 Vegetation Management Project (Item 1) 87 Rev. January 11,2010 $6,308 $5,810 $9,291 $5,313 $33,527 Total Cost per site for 3 Years $32,424 $32,424 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER -CM FOLDERS\KA THy\Contra cts\C 1 0 135477 -Gachina\Contract Document. doc A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON- PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303 89 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\CI 0 135477 -Gachina\Contract Document.doc IN WITNESS WHEREOF, this instrument has been duly executed by the Surety above named on ,2010. SURETy, ______________ __ PHONE NUMBER: _____________ _ By: _______________ Its: ____________ _ Contractor: ---------------- CERTIFICATE OF ACKNOWLEDGMENT (Civil Code § 1189) STATE OF ______ --J) COUNTY OF ______ -J) On , before me, , a notary public in and for said County, personally appeared _______________ _ ___ , personally known to me (or proved to me on the basis of ~atisfa.ctory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in hislher/their authorized capacity(ies), and that by hislher/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my h~lBd and official seal. Signature _________________ (Seal) 91 Rev. January 11,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT A T10NS\CURRENT BUYER-CM FOLDERS\KA THy\Contra cts\ClO 135477- Gachina\Contract Document.doc The Surety hereby stipulates and agrees that no amendment, change, order, addition, alteration, or modification to the terms of the agreement of to the work to be performed thereunder or the specifications accompanying the same, shall in any way affect its obligations on this surety bond, and it does hereby waive notice of any such amendment, change, change order, addition, alteration, or modification to the terms of the agreement or to the work performed thereunder or to the specifications accompanying the same. IN WITNESS WHEREOF, this instrument has been duly executed by the Surety above named on ,2010. SURETY, PHONE NUMBER: BY:, ________________ Its: Contractor: CERTIFICATE OF ACKNOWLEDGMENT (Civil Code § 1189) STATE OF ______ -J) COUNTY OF ______ -J) On , before me, , a notary public in and for said County, personally appeared ________________ _ ___ , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by hislher/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature, ___________________ _ (Seal) 93 Rev. January 11,2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contra cts\Cl 0 135477- Gachina\Contract Document.doc Attachment D III. Summary of Savings if All Work is Awarded to lowest Bidder per Section. SECTION Descripti~n 3 Year Total Name of 3 Year Total wlLowest Percentage of Dollar Current Rate Lowest Bidder Bidder Savings Savings A Medians and $502,836.00 Gachina $353,579 30%; $154,096. Roadside Strips: Landscape B Parking Lots and $65,238.00 Gachina $58,858 21%; $6,380. Parking Garages Landscape C Parks $1,796,316. Gachina $985,887 60%; $810,429 Landscape D City Facilities $746,484 Gachina $240,889 65%; $505,559 Landscape E Utility $107,877 Gachina $87,786 19% $20,096. Substations and Wellsites Landscape G Tennis $106,053 Gachina $33,527 68% $72,526. Court/Basketball Court Landscape Maintenance H Byxbee Park $59,040 Gachina $32,424 18% $26,616 Vegetation Landscape Management Project Site I Cubberley $170,244 Loral $78,000 1% $92,244. Community Center GENERAL Landscape SITE AND ATHLETIC FIELD M Foothills Park $108,000 Loral $103,854 4% $ 4,146 Maintenance of Invasive Plant Landscape Removal Sites TOTAL $3,662,088. ********** $1,974,804. 46% $1,683,284.00 TO: HONORABLE CITY COUNCIL 9 FROM: CITY MANAGER DEPARTMENT: PUBLICWORKS DATE: JUNE 21, 2010 CMR:268:10 REPORT TYPE: CONSENT SUBJECT: Approval of a Purchase Order with Pierce Manufacturing, Inc. c/o Golden State Fire Apparatus Inc. in an Antount not to Exceed $317,184 for the Purchase of one Type III Fire Engine RECOMMENDATION Staff recommends that Council: 1. Approve and authorize the City Manager or his designee to execute a purchase order with Pierce Manufacturing, Inc. c/o Golden State Fire Apparatus Inc. (Pierce) in an amount not to exceed $317,184 for the purchase of one Type III Fire Engine. BACKGROUND The vehicle and equipment replacement policy described in City Policy and Procedures 4-1 (Vehicle and Equipment Use, Maintenance, and Replacement), provides for the on-going replacement of City fleet vehicles and equipment. Replacements are scheduled using guidelines based on age, mileage accumulation, and obsolescence. The City's fleet of emergency vehicles currently includes two Type III (Wildland) fire engines. Policy 4-1 prescribes a replacement interval for Fire engines of 20 years or 85,000 miles. This interval applies generally to Type I (traditional) fire engines that are custom-built for general firefighting duty. It also includes a five-year reserve interval (i.e., Type I engines are replaced after 15 years in front-line duty, and are then assigned to the reserve fleet for an additio~ five years). Neither of these factors currently applies to the City's Type III engines, since the Type III engines are built on commercial chassis that have a shorter life expectancy than Type I engines built on custom chassis. There are no reserve Type III engines in the City's fleet and no opportunity to rotate these engines into reserve status. The City's two 1992 model Type III fire engines are scheduled to be replaced in 2012; however, both have experienced frequent mechanical failures of the fire pump system. The fire pump systems, which were "state-of-the-art" in 1992, have become increasingly unreliable and difficult to maintain. The failures occur at random intervals, and can be attributed to design flaws within the fire pump system, as well as to the age of the systems. Equipment Management staff have been able to correct fail~s as they occur, but have not been able to completely eliminate the source of the failures. Maintaining pump operations during a fire event is critical to effective fire fighting. Simpler, more reliable fire pump systems are now available. Because both Type III CMR:268:10 Page 1 of4 engines are more than 18 years old, and only two years from scheduled replacement, upgrading the existing fire pump systems is not a cost-effective option. Due to the availability ofa new, unit now at a reduced price, staff recommends that one of the Type III engines be replaced two years early. By purchasing this engine the City will avoid the estimated $100,000 cost for upgrading the pump s~tions on the existing units, an investment that is not advised given that the current engines are 18 years old. In addition, buying the available engine now, the City will avoid paying an additional $80,000 in expense for a newly constructed engine. The $80,000 cost increase for a purchase made next year can be attributed to the cost of additional equipment necessary to meet upcoming Environmental Protection Agency (EPA) and National Fire Protection Agency (NFPA) requirements, and to the lack of discounts currently being offered for the purchase of the existing demonstration unit. While it is recognized that this might not appear to be the most judicious time to be making such an expenditure given the City's objectives to effect significant reductions in the General Fund overall and the Fire Department in particular, the particular circumstances involved in this case warrant immediate action. DISCUSSION The two Type III fire engines described above are designated for off-road wildland frrefighting activity. One (Engine 8) is housed at Fire Station 8 during the peak of the wildland season when Station 8 is staffed and is kept at Fire Station 5 at night and during off-peak periods. The second (Engine 9) is housed at Fire Station 6 and cross-staffed by Truck 6 personnel. The Type III fire engines have four wheel drive; are designed with a with a shorter wheel base and higher ground clearance, and include "pump and roll" capability. The unique fire potential of the Stanford foothills and the Palo Alto Hills wildland-urban interface creates the need for the special characteristics of Type III apparatus. Traditional Type I fire apparatus are not capable of leaving the roadway; which precludes their use in remote or otherwise inaccessible locations. Due to the importance of replacing at least one of the Type III engines before the upcoming fire season, staff researched alternatives to the customary Request for Quotation (RFQ) process. The RFQ process, coupled with an typical production timeframe of six to nine months, would place delivery of the new engine just prior to the 2011 fire season. As discussed in the preceding paragraphs, staff has considered options to replacement at the present time, such as extending the life of the existing vehicles through a m,ajor repair or upgrade to the fire pump systems. After consideration, staff believes that it is necessary to move forward with this purchase as quickly as possible so that a new Type III engine can be placed into service this summer. A cooperative purchase of a Type III engine from dealer inventory would provide an opportunity to accomplish this. Staff found a current contract with the EI Dorado Hills Fire Protection District for an engine that closely meets the City's specifications. The engine has already been produced, and is available for purchase on a "first-come~ first-serve" basis The State of California's fire agency, CAL FIRE, has developed standard specifications for wildland frrefighting apparatus, which have been adopted by many other firefighting agencies throughout the state. The model proposed for purchase under this purchase is built to CAL FIRE "Model 34" specifications. The Fire Department's Apparatus Committee (which includes members from the Fire Department and CMR.:268:1O Page 2 of 4 Equipment Managem~nt) has identified CAL FIRE's Model 34· as the engine best suited for the conditions and operations of the Palo Alto Fire Department. The City's Municipal Code allows for cooperative purchases of this type under Section 2.30.360(k). The City Manager, following review by Purchasing of documents provided by EI Dorado Hills Fire, determined that this purchase qualifies for exemption from competitive solicitation requirements. This cooperative purchase opportunity has several significant advantages: • It allows the City to purchase a standardized model that is produced on a large scale, eliminating the need for a custom chassis and body. • It saves a great deal of staff time and expense associated with the RFQ process, which includes the cost of travel to the manufacturer's production facility (located in Florida) for inspections. • It Saves up to one year of time associated with the purchase and production process. This will allow for the fire engine to be delivered and in service prior to the 2010 peak wildland season. Audit of Vehicle Utilization and Replacement This purchase is being conducted with full consideration for the recent Audit of Vehicle Utilization and Replacement. The audit did not include a review of the City's inventory of emergency vehicles, and emergency vehicles are generally exempt from minimum utilization requirements. The vehicle being replaced through this purchase hasy on average, exceeded the minimum mileage accumulation of 2,500 miles annually. BIDDING AND SELECTION PROCESS This is a cooperative purchase, exempt from competitive bidding under Section 2.30.360(k) of the City's Municipal Code. After reviewing the documentation provided by Piercey staff recommends that the proposal submitted by Pierce be accepted and that a Purchase Order be awarded to Pierce. Staff has checked references supplied by the vendor for previous contracts and has received only positive responses. RESOURCE IMPACT Funding is available for this purchase in the Vehicle Replacement Fund Capital Improvement Project VR-09000. It should also be noted that upon delivery of the fire engine, Stanford will reimburse the City for 30.3% of the cost or $95,456.26. POLICY IMPLICATIONS Authorization of the contract does not represent any change to the existing policy. ENVIRONMENTAL REVIEW Purchase of this vehicle is not considered a project under the California Environmental Quality Act (CEQA). The equipment being supplied is in conformance with all applicable emissions CMR:268:10 Page 3 of4 laws and regulations, and will emit significantly fewer exhaust emissions than the equipment being replaced. ATTACHMENTS None. PREPARED BY: DEPARTMENT HEAD: CITY MANAGER APPROVAL: CMR:268:10 -. . ~. Director of Public Works ~~LO~-Gp JOYAMES KEENE . \ -City Manager Page 4 of4 A'rTACHMENT A PROPOSED 2010-11 CITY OF PALO ALTO Investment Policy With Proposed Changes in Grey INTRODUCTION The City of Palo Alto invests its pooled idle cash according to State of California law and the charter of the City of Palo Alto. In particular, the City follows "The Prudent Investor Standard" cited in the State Government Code (Section 53600.3). Under this standard, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the prudent investor standard. When investing,. reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. INVESTMENT PHILOSOPHY The basic principles underlying Palo Alto's investment philosophy is to ensure the safety of public funds; provide that sufficient money is always available to meet current expenditures; and achieve a reasonable rate of return on its investments. The City's preferred and chief practice is to buy securities and to hold them to their date of maturity rather than to trade or sell securities prior to maturity. The City may, however, elect to sell a security prior to its maturity should there be a significant financial need. If securities are purchased and held to their maturity date, then any changes in the market value of those securities during their life will have no effect on their principal value. Under a buy and hold philosophy, the City is able to protect its invested principal. The economy, the money markets, and various financial institutions (such as the Federal Reserve System) are monitored carefully to make prudent investments and to assess the condition of the City's portfolio. INVESTMENT OBJECTIVES The primary objectives, in priority order, of investment activities shall be safety, liquidity, and yield: 1. Safety: Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk. a) Credit risk is the risk that an obligation will not be paid and a loss will result. The City will seek to minimize this risk by: • Limiting investment to the safest types of securities as listed in the "Authorized Investment" section. • Diversifying its investments among the types of securities that are authorized under this investment policy. b) Interest rate risk is the risk that changes in interest rates will adversely affect the value of an investor's portfolio. For example, an investor with large holdings in long-term bonds has assumed significant interest rate risk because the value of the bonds will fall if interest rates rise. The City can minimize this risk by: • Buying and holding its securities until maturity. • Structuring the investment portfolio so that securities mature to meet cash flow requirements. To further achieve the objective of safety, the amount that can be invested in all investment categories, excluding obligations of the U.S. Government and its agencies, is limited either as a percentage of the portfolio or by a specific dollar amount. These limits are defined under the "Authorized Investments" section. 2. Liquidity: Liquidity is the second most important objective of the investment program. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by maintaining a portion of the portfolio in liquid money market mutual funds or local government investment pools. In addition, the City will maintain one month's cash needs in short term investments and at least $50 million shall be maintained in securities maturing in less than two years. Since all possible cash demands cannot be anticipated, however, the portfolio will consist of securities with active secondary or resale markets should the need to sell a security prior to maturity arises. 2 3. Yield: Yield on the City's portfolio is last in priority among investment objectives. SCOPE The investment portfolio shall be designed to obtain a market rate of return that reflects the authorized investments, risk constraints, and liquidity needs outlined in the City's investment policy. Compared to similar sized cities, the City of Palo Alto should be able to take advantage of its relatively large reserve balances to achieve higher yields through long-term investments. [n addition, the City will strive to maintain the level of investment of idle funds' as close to 100 percent as possible. A. This investment policy shall apply to all financial assets of the City of Palo Alto as accounted for in the Comprehensive Annual Financial Report (CAFR), including but not limited to the following funds: I. General Fund 2. Special Revenue Funds 3. Debt Service Funds 4. Capital Project Fund 5. Enterprise Funds 6. Internal Service Funds 7. Trust and Agency Funds B. The policy does not cover funds held by the Public Employees Retirement System or funds of the Deferred Compensation program. C. Investments of bond proceeds shall be governed by the provisions of the related bond indentures. GENERAL INVESTMENT GUIDELINES 1. The maximum stated final maturity of individual securities in the portfolio should be ten years. 2. A maximum of30 percent of the par value ofthe portfolio shall be invested in securities with maturities beyond five years. 3. The City shall maintain a minimum of one month's cash needs in short term investments. 4. At least $50 million shall be maintained in securities maturing in less than 2 years. 5. Should the ratio of the market value of the portfolio to the book value of the portfolio fall below 95 percent, the Administrative Services Department will report this fact to the City Council within a reasonable time frame and evaluate whether there is any risk of 3 holding any of the securities to maturity. 6. Commitments to purchase securities newly introduced on the market shall be made no more than three (3) working days before pricing. 7. Whenever possible, the City will obtain three or more quotations on the purchase or sale of comparable securities and take the higher yield on purchase or higher price on sale. This rule will not apply to new issues, which are purchased at market no more than three (3) working days before pricing, as well as LAIF, City of Palo Alto bonds, money market accounts and mutual funds, all of which shall be evaluated separately. 8. Where the Investment Policy specifies a percentage limitation for a particular category of investment, that percentage is applicable only at the date of purchase. A later increase or decrease in a percentage resulting from a change in the portfolio's assets or values shall not constitute a violation of that restriction. As soon as possible, percentage limitations will be restored as investments mature in each category. AUTHORIZED INVESTMENTS The California Government Code( Sections 53600 et seq.) governs investment of City funds. The following investments are authorized: 1. U.S. Government Securities (e.g. Treasury notes, bonds and bills) Securities that are backed by the full faith and credit of the United States a) There is no limit on purchase of these securities. b) Securities will not exceed 10 years maturity. c) All purchased securities must have an explicit or a de facto backing of the full faith and credit of the U.S. Government. 2. U.S. Government Agency Securities -Obligations issued by the Federal Government agencies (e.g. Federal National Mortgage Association). a) There is no limit on purchase ofthese securities except for: • Callable and Multi-step-up securities provided that: -The potential call dates are known at the time of purchase; -the interest rates at which they "step-up" are known at the time of purchase; and -the entire face valueofthe security is redeemed at the call date. -No more than 20 percent of the par value of the portfolio. 4 b) No more than 15 percent of the par value of the portfolio. c) Not to exceed 270 days maturity. d) No more than $3 million or 10 percent of the outstanding commercial paper of anyone institution, whichever is lesser. 7. Local Agency Investment Fund (LAIF) - A State of California managed investment pool may be used up to the maximum permitted by California State Law. 8. Short-Term Repurchase Agreements (REPO) - A contractual agreement between a seller and a buyer, usually ofU .S. government securities, whereby the seller agrees to repurchase the securities at an agreed upon price and, usually, at a stated time. a) Not to exceed 1 year. b) Market value of securities that underlay a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities. c) A Master Repurchase agreement must be signed with the bank or dealer. 9. Money Market Deposit Accounts -Liquid bank accounts which seek to maintain a net asset value of $l.00. 10. Mutual Funds which seek to maintain a net asset value of $l.00 and which are limited essentially to the above investments and further defined in note 9 of Appendix A a) No more than 20percent of the par value of the portfolio. b) No more than 10 percent of the par value with anyone institution. 11. Negotiable Certificates of Deposit (NCD) issued by nationally or state chartered banks and state or federal savings institutions and further defined in note 11 of Appendix A. Purchases of negotiable certificates of deposit: a) May not exceed 10 percent of the par value of the portfolio. b) No more than $5 million in anyone institution. 12. Medium-Term Corporate Notes -Issued by corporation organized and operating within theUnited States or by depository institutions licensed by the United States or any state and operating with th~ United States. 6 a) Not to exceed 5 years maturity. b) Securities eligible for investment shall have a minimum rating of AA from a nationally recognized rating service (e.g. Moody's and/or Standard & Poor's). c) No more than 10 percent of the par value of the portfolio. d) No more than $5 million ofthe par value may be invested in securities of any single issuer, other than the U.S. Government, its agencies and instrumentality. e) If se,eurities owned by the City are downgraded by either Moody's or Standard & Poors to a level below AA it shall be the City's policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. Appendix A provides a more detailed description of each investment vehicle and its security and liquidity features. Most of the City's short-term investments will be in securities which pay principal upon maturity, while long-term investments may be in securitiesthat periodically repay principal, as well as interest. Most of the City's investments will be at a fixed rate. However, some of the investments may be at a variable rate, so long as that rate changes on specified dates in pre- determined increments. PROHIBITED INVESTMENTS: Includes all investments not specified above, and in particular: 1. Reverse repurchase agreements 2. Derivatives, as defined in Appendix B Appendix B provides a more detailed description of each investment, which is prohibited, for City investment. AUTHORIZED INVESTMENT PERSONNEL Idle cash management and investment transactions are the responsibility of the Administrative Services Department. The Administrative Services Department is under the c~ntrol of the Director of Administrative Services (Director), as treasurer, who is subject to the direction and supervision of the City Manager. The Assistant and Deputy Director of Administrative Services, who reports to the Director, are authorized to make all investment transactions allowed by the Statement ofInvestment Policy. He or she may authorize the Senior Financial Analyst/Investments (Analyst) to enter into investments within clearly specified parameters. 7 The Investment function is under the supervision of the Deputy Director of Administrative Services (Deputy). The Deputy· is charged with the responsibility to manage the investment program (portfolio), which includes developing and monitoring the City's cash flow model and developing long-term ·revenue and financing strategies and forecasts. The Analyst is subject to the direction and supervision of the Deputy. The Analyst assists the Deputy, in the purchase and sale of securities. The Analyst also prepares the quarterly report, and records daily all investment transactions as to the type of investment, amount, yield, and maturity. Cash flow projections are prepared as needed. In all circumstances, approval from the Director of Administrative Services is required before selling securities from the City's portfolio. The Analyst may also transfer no more than a tota1 of$5 million a day from the City's general account to anyone financial institution, without the prior approval of the Assistant or Deputy Director of Administrative Services. No other person has authority to make investment transactions without the written authority of the Assistant or Deputy Director of Administrative Services. USE OF BROKERS AND DEALERS The Administrative Services Department maintains a list of acceptable dealers. A dealer acts as a principal in security transactions, selling securities from and buying securities for their own position. A dealer must have a) At least three years experience operating with California municipalities; b) Maintain an inventory of trading securities of at least $10 million; and c) Be approved by the Assistant or Deputy Administrative Services Director before being added to the City's list of approved dealers. In addition, individual traders or agents representing a dealer: . • must have a minimum of one year of experience operating with California muniGipalities. . A dealer will be removed from the list should there develop a history of problems to include: failure to' deliver securities as promised, failure to honor transactions as quoted, or failure to provide reasonable or accurate information. SAFEKEEPING AND CUSTODY All securities shall be delivered to the City's safekeeping custodian and held in the name of the City of Palo Alto, with the exception of the following investments: 8 a) Certificates of deposit, which will be held by the City itself. b) City shares in pooled investment funds, under contract. c) Mutual funds d) Local Agency Investment Fund (LAIF) POLICY REVIEW AND REPORTING ON INVESTMENTS Monthly, the Administrative Services Department will review performance in relation to-Council- adopted Policy. Quarterly, the Department will report to Council on: its performance in comparison to policy, explain any variances from policy, provide any recommendations for policy changes, and discuss overall compliance with the City's Investment Policy. In addition, the Department will provide Council with: a) A detailed list ofall securities, investments and monies held by the City, and b) Report on the City's ability to meet expenditure requirements over the next six months. Annually, the Administrative Services Department will present a Proposed Statement of Investment Policy, to include the delegation of investment authority, to the City Council for review during the annual budget process. All proposed changes in policy must be approved by the Council prior to implementation. Adopted bv City Council October 22, 1984 Amended by City Council June 23, 1997 Monthly reporting effective January 1985 Amended by City Council January 26, 1998 Amended and Adopted by City Council June 24, 1985 Amended by City Council June 22 1998 Ameilded by City Council December 2,.1985 Amended bv City Council June 28, 1999 Amended by City Council June 23, 1986 Amended by City Council June 19,2000 Amended by City Council June 22, 1987 Amended bv City Council June II, 200 I Amended .by City Council August 8, 1988 Amended by City Council June 17, 2002 Amended by City Council November 28 1988 Amended by City Council June 17, 2003 Amended by City Council June 26 1989 Amended by City Council June 28, 2004 Amended by City Council May 14, 1990 Amended by City Council June 20, 2005 Amended by City Council June 24, 1991 Amended by City Council June 12,2006 Amended by City Council June 22, 1992 Amended by City Council June 11, 2007 Amended by City Council June 23, 1993 Amended by City Council June 09 2008 Amended by City Council June 20, 1994 Amended by City Council June 15, 2009 Amended by City Council June 19, 1995 Amended by City Council June 24 1996 9 APPENDIX A EXPLANATION OF PERMITTED INVESTMENTS 1. U.S. Government Securities -United States Treasury notes, bonds, bills, or certificates of indebtedness or those for which the faith and credit of the United States are pledged for the payment of principal and interest. 2. U.S. Government Agency Securities -U.S. Government Agency Obligations include the securities of the Federal National Mortgage Association (FNMA), Federal Land Banks (FLB), Federal Intermediate Credit Banks (FICB), banks for cooperatives, Federal Home Loan Banks (FHLB), Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC), Student Loan Marketing Association (SLMA), Small Business Administration (SBA), Federal Farm Credit (FFC), Federal Agricultural Mortgage Corporation (FAMC or FMAC), and Tennessee Valley Authority (TVA). Federal Agency securities are debt obligations that essentially result from lending programs of the Government. Federal agency securities differ from other types of securities, as well as among themselves. Their characteristics depend on the issuing agency. It is possible to distinguish three types of issues: (A) participation certificates (pooled securities), (B) Certificates of interest (pooled loans), (C) notes, bonds, and debentures. The securities ofa few agencies are explicitly backed by the full faith and credit of the U.S. Government. All other issues purchased by the City have the de facto backing from the federal government, and it is highly unlikely that the government would let any agency default on its obligations. 3. Certificates of Deposit - A certificate of deposit (CDs) is a receipt for funds deposited in a bank, savings bank, or savings and loan association for a specified period of time at a specified rate of interest. Denominations are $100,000 and up. The first $100,000 of a certificate of deposit is guaranteed by the Federal Deposit Insurance Corporation (FDIC), if the deposit is with a bank or savings bank, or the Savings Association Insurance Fund (SAIF), if the deposit is with a savings and loan. CDs with a face value in excess of $100,000 can be collateralized by U.S. Government Agency and Treasury Department securities or first mortgage loans. Government securities must be at least 110 percent of the face value of the CD collateralized in excess of the first $100,000. The value of first mortgages must be at least 150 percent ofthe face value ofthe CD balance insured in excess of the first $100,000. Generally, CDs are issued for more than 30 days and the maturity can be selected by the purchaser. 4. Bl'ml{ers' Acceptance - A Banker's acceptance (BA) is a negotiable time draft or bill of exchange drawn on and accepted by a commercial bank. Acceptance of the draft irrevocably obligates the bank to pay the bearer the face amount of the draft at maturity. BAs are usually created to finance the import and export of goods, the shipment of goods within the United States and storage of readily marketable staple commodities. In over 70 years of usage in the United States, there has been no known instance of principal loss to any investor in BAs. In addition to the guarantee by the accepting bank, the transaction is identified with a specific commodity. Warehouse receipts verify that the pledged commodities exist, and, by 10 definition, these commodities are readily marketable. The sale of the underlying goods generates the necessary funds to liquidate the indebtedness. BAs enjoy marketability since the Federal Reserve Bank is authorized to buy and sell prime BAs with maturities of up to nine months. The Federal Reserve Bank enters into repurchase agreements in the normal course of open market operations with BA dealers. As are sold at a discount from par. An acceptance is tied to a specific loan transaction; therefore, the amount and maturity of the acceptance is fixed. 5. Commercial Paper -Commercial paper notes are unsecured promissory notes of industrial corporations, utilities, and bank holding companies. Interest is discounted from par and calculated using actual number of days on a 360-day year. The notes are in bearer form, with maturities up to 270 days selected by the purchaser, and denominations generally start at $100,000. There is a small secondary market for commercial paper notes and an investor may sell a note prior to maturity. Commercial paper notes are backed by unused lines of credit from major banks. Some issuer's notes are insured, while some are backed by irrevocable letters of credit from major banks. State law limits a City to investments in United States corporations having assets in excess of five hundred million dollars with an "A" or higher rating by a nationally recognized rating service for the issuer's debentures. Cities may not invest more than 25 percent of idle cash in commercial paper. 6. Local Agency Investment Fund Demand Deposit -The Local Agency Investment Fund LAIF) was established by the State to enable treasurers to place funds in a pool for investments. The City is limited to an investment ofthe amount allowed by LAIF (currently $40 million). LAIF has been particularly beneficial to those jurisdictions with small portfolios. Palo Alto uses this fund for short-term investment, liquidity, and yield. 7. Repurchase Agreements - A Repurchase Agreement (REPOS) is not a security, but a contractual arrangement between a financial institution or dealer and an investor. The agreement normally can run for one or more days. The investor puts up funds for a certain number of days at a stated yield. In return, the investor takes title to a given block of securities as collateral. At maturity, the securities are repurchased and the funds repaid, plus interest. Usually, amounts are $500,000 or more, but some REPOS can be smaller. 8. Money Marl{et Deposit Accounts ~ Money Market Deposit Accounts are market-sensitive bank accounts, which are available to depositors at any time, without penalty. The interest rate is generally comparable to rates on money market mutual funds, though any individual bank's rate may be higher or lower. These accounts are insured by the Federal Deposit Insurance Corporation or the Savings Association Insurance Fund: 11 9. Mutual Funds -Mutual funds are shares of beneficial interest issued by diversified management companies, as defined by section 23701 M ofthe Revenue and Taxation Code. To be eligible for investment, these funds must: a) Attain the highest ranking in the highest letter and numerical rating provided by not less than two of the three largest nationally recognized rating services; or b) Have an investment advisor registered with the Securities and Exchange Commission with not less than five years experience investing in the securities and obligations, as authorized by subdivisions (a) to (n), inclusive, of Section 53601 ofthe California Government Code, and with assets under management in excess of five hundred million dollars; and c) Invest solely in those securities and obligations authorized by Sections 53601 and 53635 of the California Government Code. Where the Investment Policy of the City of Palo Alto may be more restrictive than the State Code, the Policy authorizes investments in mutual funds that shall have minimal investment in securities otherwise restricted by the City's Policy. Minimal investment is defined as less than 5 percent of the mutual fund portfolio; and d) The purchase price of shares of beneficial interest purchased shall not include any commission that these companies may charge. e) Have a net asset value of$1.00. 10. Callable Securities and Multi-Step-ups: Callable securities are defined as fixed interest rate government agency securities that give the issuing agency the option of returning the invested funds at a specific point in time to the purchaser. Multi-step-ups are government agency securities in which the interest rate increases ("steps-up") at preset intervals, and which also have a callable option that allows the issuing agency to return the invested funds at a preset interval. Callable and multi-step-ups are permitted, provided that: • the potential call dates are known at the time of purchase; • the interest rates at which they "step-up" are known at the time of purchase; and • the entire face value of the security is redeemed at the call date. 12 11. Negotiable Certificates of Deposit (NCD). NCDs are large-dollar-amount, short-term certificate of deposit. Such certificates are issued by large banks and bought mainly by corporations and institutional investors. Tpey are payable either to the bearer or to the order of the depositor, and, being negotiable, they enjoy an active secondary market, where they trade in round lots of $5 million. Although they can be issued in any denomination from $100,000 up, the typical amount is $1 million. They have a minimum original maturityof14 days; most original maturities are under six months. Also called a Jumbo Certificate of Deposit. State law prohibits the investment of local agency funds in negotiable certificates of deposit issued by a state or federal credit union if a member of the legislative 'body of the local agency, or any person with investment decision making authority in the administrative, manager's, budget, auditor-controller's, or treasurer's offices ofthe local agency also serves on the board of directors, other credit committee or the supervisory committee ofthe state or federal credit union issuing the negotiable certificate of deposit. 12. Medium-Term Corporate Notes: Notes ofa maximum of five years maturity issued by corporations organized and operating with the United States or by depository institutions licensed by the United States or any state and operating with the United States. According to California Code Section 53601, "Notes eligible for investment under this subdivision shaH be rated in the rating category of "A" or its equivalent or better by a nationally recognized rating service. Purchase of medium-term notes may not exceed 30 percent of the agency's surplus money which may be invested pursuant to this section." l3 APPENDIXB EXPLANATION OF PROHIBITED INVESTMENTS 1. Reverse Repurchase Agreements: A Reverse Repurchase Agreement (Reverse REPO) is a contractual agreement by the investor (e.g. local agency) to post a security it owns as collateral, and a bank or dealer temporarily exchanges cash for this collateral, for a speCific period of time, at an agreed-upon interest rate. During the period of the agreement, the local agency may use this cash for any purpose. At maturity, the securities are repurchased from the bank or dealer, plus interest. California law contains a number of restrictions on the use of Reverse REPOS by local agencies. 2. Derivatives: A derivative is a financial instrument created from, or whose value depends on (is derived from), the value of one or more underlying assets or indices. The term "derivative" refers to instruments or features, such as collateralized mortgage obligations, forwards, futures, currency and interest rate swaps, options, caps and floors. Except for those callable and mUlti-step-up securities as described under Permitted Investments, derivatives are prohibited. Certain derivative products have characteristics which could include high price volatility, liquid markets, products that are not market-tested, products that are highly leveraged, products requiring a high degree of sophistication to manage, and products that are difficult to value. According to California law, a local agency shall not invest any funds in inverse floaters, range notes, or interest-only strips that are derived from a pool of mortgages. 14 APPENDIXC GLOSSARY OF INVESTMENT TERMS AGENCIES: Federal agency and instrumentality securities. ASKED: The price at which securities are offered. BID: The price offered by a buyer of securities (when one sells securities, one asks for a bid). See "Offer". BROKER: A broker brings buyers and sellers together so that he can earn a commission. COLLATERAL: Securities, evidence of deposit, or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMPREHENSIVE ANNUAL FINANCIAL REPORT ("CAFR"): The official annual report for the City of Palo Alto. ltincludes combined financial statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules that are necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed statistical section. COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: (1) delivery versus payment (DVP); and (2) delivery versus receipt (DVR). DVP is delivery of securities with an exchange of money for the securities. DVR is delivery of securities with an exchange of a signed receipt for the securities. DISCOUNT: The difference between the acquisition cost of a security and its value at maturity when quoted at lower than face value. A security that sells below original offering price shortly after sale, is also is considered to be at a discount. DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued a discount and that are redeemed at maturity for full face value (e.g., U.S. Treasury Bills). DIVERSIFICATION: Dividing investment funds among a variety of securities that offer 15 independent returns. FEDERAL AGRICULTURAL MORTGAGE CORPORATION ("FAMC" or "FMAC"): A federal agency established in 1988 to provide a secondary market for farm mortgage loans. Informally called Farmer Mac. FEDERAL CREDIT AGENCIES: Agencies of the Federal Government that were established to supply credit to various classes of institutions and individuals (e.g., S&Ls, small business firms, students, Jarmers, farm cooperatives, and exporters). FEDERAL DEPOSIT INSURANCE CORPORATION (I'FDIC"): A federal agency that insures bank deposits, currently up to $100,000 per deposit. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations. FEDERAL HOME LOAN BANKS ("FHLB"): Government-sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions, and insurance companies. The mission of the FHLBs is to liquefY the housing-related assets of its members, who must purchase stock in their District Bank. FEDERAL NATIONAL MORTGAGE ASSOCIATION ("FNMA"): FNMA, like GNMA, was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FEDERAL OPEN MARKET COMMITTEE ("FOMC"): The FOMC consists of seven members of the Federal Reserve Board and five of the 12 Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchaSes and sales of government securities in the open market, as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 regional banks, and about 5,700 commercial banks that are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ("GNMA" or "Ginnie Mae"): Securities that influence the volume of bank credit that is guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. A 16 security holder is protected by the full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, V A, or FMHM mortgages. The term "pass-throughs" is often used to describe Ginnie Maes. LIQUIDITY: A liquid asset is one that can be converted easi(y and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow, and reasonable amount can be done at those quotes. LOCAL GOVERNMENT INVESTMENT FUND ("LAIF"): Monies from local governmental units may be remitted to the California State Treasurer for deposit in this special fund for the purpose of investment. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.. . MASTER REPURCHASE AGR;EEMENT: A written contract covering all future transactions between the parties to repurchase-reverse repurchase agreements, that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer (lender) to liquidate the underlying securities in the event of default by the seller (borrower). MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (e.g., bills, commercial paper, and bankers' acceptances) are issued and traded. OFFER: The price asked by a seller of securities (when one buys securities, one asks for an offer). See "Asked" and "Bid". OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank, as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool. PORTFOLIO: A collection of securities that an investor holds. PRIMARY DEALER: A group of government securities dealers that submit daily reports of market activity and positions, and monthly financial statements to the Federal Reserve Bank of New York, and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) --registered securities broker-dealers, banks, and a few unregulated firms. PRUDENT INVESTOR RULE: An investment standard cited in the California Government Code (CGC) Section 53600 et seq. Under this standard, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries 17 subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to the general economic conditions and the anticipated needs ofthe agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. QUALIFIED PUBLIC DEPOSITORIES: A financial institution that: (1) does not claim exemption from the payment of any sales, compensating use, or ad valorem taxes under the laws of this state; (2) has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability; and (3) has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES AND EXCHANG E COMMISSION: An agency created by Congress to administer securities legislation for the purpose of protecting investors in securities transactions. STRUCTURED NOTES: Notes issued by instrumentalities (e.g., FHLB, FNMA, SLMA) and by corporations, that have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) in thei.r debt structure. The market performance of structured notes is affected by fluctuating interest rates; the volatility of imbedded options; and shifts in the yield curve. TIME CERTIFICATE OF DEPOSIT: A non-negotiable certificate of deposit, which cannot be sold prior to maturity. TREASURY BILLS: A non-interest bearing discount security that is issued by the U.S. Treasury to finance the national debt. Most T obi lls are issued to mature in three months, six months, or one year. TREASURY BONDS: Long-term, coupon-bearing U.S. Treasury securities that are issued as direct obligations of the U.S. Government, and having initial maturities of more than 10 years. TREASURY NOTES: Medium-term, coupon-bearing U.S. Treasury securities that are issued as direct obligations of the U.S. Government, and having initial maturities of two to 10 years. YIELD: The rate of annual income return on an investment, expressed as a percentage. YIELD-TO-CALL (YTC): The rate of return an investor earns from a bond assurriingthe bond is 18 redeemed (called) prior to its nominal maturity date. YIELD-TO-MATURITY: The current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity. ZERO-COUPON SECURITIES: Security that is issued at a discount and makes no periodic interest payments. The rate of return consists of a gradual accretion of the principal of the security and is payable at par upon maturity. 19 BUDGET FY 2011 TO: HONORABLE CITY COUNCIL , FROM: CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVICES DATE: JUNE 21, 2010 CMR: 288:10 SUBJECT: APPROVAL OF AN ORDINANCE ADOPTING THE FISCAL YEAR 2011 BUDGET, INCLUDING THE FISCAL YEAR 2011 CAPITAL IMPROVEMENT PROGRAM, AND CHANGES TO THE MUNICIPAL FEE SCHEDULE AND ADOPTION OF 4 RESOLUTIONS: (l)Amending Utility Rate Schedules for a Storm Drain Rate Increase; (2) Amending Utility Rate Schedules for Fiber Optic Rate Increases; (3) Amending the 2009-20 I 0 Compensation Plan for the Management and Professional Personnel and Council Appointees; and (4) Encouraging all Palo Alto Council Members to Voluntarily Accept a 10% Reduction in their Salaries for Fiscal Year 20 II EXECUTIVE SUMMARY The documents attached outline the amendments to the City's Operating and Capital Fiscal Year 2011 Proposed Budgets, and Utility Rate changes. RECOMMENDATION Staff recommends that the City Council approve the following: I. The Budget Adoption Ordinance (Attachment I), which includes: a. The City Manager's Fiscal Year 2011 Proposed Budget (Exhibit A -previously distributed in the May 3 Council packet) b. All changes detailed in the Amendments to the City Manager's Fiscal Year 2011 Proposed Budget (Exhibit B) c. Revised pages to the Table of Organization (Exhibit C) d. Fiscal Year 2011 Proposed Municipal Fee Schedule (Exhibit D - previously distributed in the June 14 Council packet) e. Amendments to the Fiscal Year 20 II Proposed Municipal Fee Schedule (Exhibit E) 2. Resolution Amending Utility Rate Schedules for a Storm Drain Rate increase (Attachment 2) 3. Resolution Amending Utility Rate Schedules for Fiber Optic Rate increases (Attachment 3) CMR:288:1O Page 1 of 15 4. Resolution Amending the 2009-2010 Compensation Plan for the Management and Professional Personnel and Council Appointees to Add a New Classification, Update the Salary of One Classification and Change the Titles of Eighteen Classifications (Attachment 4) 5. Resolution encouraging all Palo Alto Council Members to Voluntarily Accept a 10% reduction in their Salaries for Fiscal Year 2011 Due to the Financial Challenges Facing the City (Attachment 5) BACKGROUND The City Manager's Fiscal Year 2011 Proposed Operating Budget and the Fiscal Year 2011 Proposed Capital Budget was submitted to City Council on May 3, 2010. Given the difficult fiscal environment, the City Manager presented and early "preview" budget on April 12, 2010 (CMR:208:10). During the month of May, the Finance Committee held hearings and reviewed the Proposed Budget, including the General Fund, Enterprise Funds, Internal Service Funds, Capital Improvement Programs, and the Municipal Fee Schedule. A total of seven public hearings were held on May 6, 11, 18, 25, 27, June 14 and 15, during which the Committee reviewed and discussed the City's operating and capital expenditures for the next year. As a result of the hearings, the Finance Committee and staff have recommended changes to the Fiscal Year 2011 Proposed Budget as discussed below and detailed in Exhibit B. DISCUSSION This staff report focuses primarily on the financial changes recommended by the Finance Committee during the public hearing process and the fiscal related adjustments suggested by staff following submission of the original proposed budget. Certain key non-financial changes are also highlighted in this report. All other non-financial recommended changes to the proposed budget are described in Appendix 4, which was distributed to the Finance Committee on June 14, and will be incorporated into the Fiscal Year 2011 Adopted Budget document. Additionally, the Finance Committee directed staff to report back during Fiscal Year 2011 on the following issues: • Status of discussions with the Friends of the Children's Theatre and whether those discussions resulted in a continuing level of support equivalent to $35,000 • Proposed Refuse rate increase options to meet statutory obligations for landfill closure/post-closure costs and ensure the long-term fiscal stability of the Refuse Fund • Plan of how parking enforcement may be addressed at Arastradero Park in lieu of enacting parking fees • Recommendation for a tiered approach to leaf blower noise abatement violations with the goal of reducing the number of violations Adjustments to Date in the General Fund This section summarizes actions made by the Finance Committee to date. Detail for each adjustment and follow-up information is provided later in the memo. A page is referenced where additional information is available later in the memo. CMR:288:10 Page 2 of 15 Finance Committee-Recommended Changes to the City Manager's Proposed Budget The Finance Committee recommends the following changes bascd on new information following submittal of the original proposed budget: General Fund City Auditor's Office • Increase staffing by 1.0 FTE Senior Auditor for Utilities Internal Audits, funded by the Enterprise Funds. City Council • Decrease $17,000 from Travel and Meeting and Other General Expenses. • Decrease $2,160 from Salaries, resulting from three Council Members voluntary 10% pay reduction (This estimate could increase depending on additional volunteer reductions). Community Services Department • Restore funding of $61,000 for 0.75 Full Time Employees to provide full staffing at the Art Center and support the Art Commission • Restore funding of $27,000 for the Summer Concert Series • Restore funding of $50,000 to HSRAP to maintain full funding for the program • Suspend Children's Theatre show produetion participation fee of $50.00-$300.00 for residents and fee plus up to 50% for non-residents, pending in-lieu funding agreement with Friends of the Palo Alto Children's Theatre (by September 30, 2010). In the event that an agreement is not reached by September 30, 20 I 0, the suspended participation fee will be made effective. The new revenue associated with this fee remains within the FY 2011 Proposed Operating Budget. • Removed $100,000 in revenue related to the eliminated proposed municipal fee for vehiele entry at Foothills, Bayland and Arastradero parks Library Department • Restore flmding of $75,000 for 0.50 FTE Library Assistant, and 2.33 Hourly FTE, and supplies for the opening of the College Terrace Library in November 20 I 0 • Restore funding of $106,672 for 1.0 FTE Library Associate and 0.39 FTE hourly clerk to provide funding necessary to keep the libraries open on Monday. Per the option adopted by the Finance Committee, the Library department will open Main, Mitchell Park, and Children's libraries at 12 pm instead of 10 am on Monday and close College Terrace Library on Monday. Police Department • Restore funding for School Crossing Guards in the amount of$345,000 • Reinstate funding for Traffic Team in the amount of $721,104 for 1.0 FTE Poliee Sergeant, 1.0 FTE Police Agent, and 2 FTE Police Offieer ( Eliminates 1.0 FTE Police Officer) • Reinstate $75,000 in traffic citation revenue CMR:288:10 Page 8 of 15 • Restore 2 FTE Police Officer in the Investigations Division for $331,735 Public Works Department • Restore funding of $390,104 for 4.0 FTE Tree Trimmer/Line Clearers and decrease related contract services of $73 ,900 for tree trimming • Restore $10,000 for planting material for trees • Eliminate 1.0 FTE Supervising Project Engineer of $161 ,525 (Alternative Option) • Eliminate 1.0 FTE Traffic Control Maintenance II of $89,421 (Alternative Option) Non-Departmental • Restore operating transfer of $298,970 from General Fund to Capital Fund for CIP sidewalk repair and replacement to reflect 50%-50% cost sharing with residents Capital Projects Fund -Infrastructure/CIP • Implement 50%-50% cost sharing with residents for CIP sidewalk repair and replacement The City will continue to be responsible for the general liability and would contract for the work to be performed. The property owner will be billed for 50% of the replacement costs plus administrative costs o Restore transfer of $298,970 from General Fund to Capital Fund for CIP sidewalk repair and replacement to reflect 50%-50% cost sharing with residents o Increase revenue of $298,970 from residents for 50% of costs for CIP sidewalk repair and replacement o Restore 0.9 FTE Engineering Tech III of $97,940 in salaries and benefits (0.1 FTE allocated to Refuse Fund) o Restore contract services expense for sidewalk repair of $500,000 Enterprise Funds • Per the Finance Committee's direction, 1.0 FTE Senior Auditor has been added to the proposed budget. This position will be dedicated to issues related to the Utilities Department. Funding for this position will be shared by the Electric, Fiber Optics, Gas, Water, and Wastewater Collection Funds. No other changes were made. Electric Fund • Increase utilities administration charges by $68,011 for addition of 1.0 FTE Senior Auditor in the City Auditor's Office Fiber Optics Fund • Increase utilities administration charges by $4,379 for addition of 1.0 FTE Senior Auditor in the City Auditor's Office Gas Fund • Increase utilities administration charges by $34,254 for addition of 1.0 FTE Senior Auditor in the City Auditor's Office CMR:288:1O Page 9 of 15 Wastewater Collection Fund • Increase utilities administration charges by $18,520 for addition of 1.0 PTE Senior Auditor in the City Auditor's Office Water Fund • Increase utilities administration charges by $30,951 for addition of 1.0 FTE Senior Auditor in the City Auditor's Office Refuse Fund • Restore 0.1 PTE Engineering Teeh III of $10,883 in salaries and benefits (0.9 PTE allocated to CIP sidewalk repair and replaeement) Staff-Recommended Changes to the City Manager's Proposed Budget Staff recommends the following changes based on new information following submittal of the original proposed budget and the Finance Committee recommendation to the City Council. General Fund Administrative Services Department • Decrease $66,119 from Allocated Charges as a correction to Fiber Optic charges intended for the Information Technology Fund. City Attorney's Office • Increase revenue by $35,000 for Stanford fees. • Restore funding of $15,160 for Temporary 0.23 PTE resulting from SAP error. Human Resources Department • Provide funding for an existing contract in the amount of $68,000 with the City's labor negotiation consultant. This funding was inadvertently omitted. Planning and Community Environment Department • Increase revenue by $200,000 for various Building Division fees. • Restore funding of $122, 136 for 1.0 FTE Code Enforcement Officer. Various Departments • Added expense in the amount of $43,000 for one month severance pay laid off per labor agreement Non-Departmental • Anticipated $51,000 savings from cancelled City lease at 300 Hamilton due to staff relocation • Anticipated savings of $67,000 from energy conservation efforts Enterprise Funds CMR:288:1O Page 10 ofl5 • Changes to the proposed budget include the removal of 1.0 FTE Customer Service Representative of $94,348, and 1.0 FTE Customer Service Specialist of $103,768. The cost of these positions had been distributed among the Electric, Gas, Water, and Wastewater Collection Funds. In lieu of these two permanent positions, $134,657 has been shifted to temporary salaries. No other changes were made. Electric Fund • The change to the Calaveras Reserve has been updated to reflect a draw of $4,108,000 in accordance with the annual stranded cost calculation. The projected FY 2011 ending balance of the Calaveras, Reserve is $56,984,000. Correspondingly, the change to the Electric Supply Rate Stabilization Reserve (RSR) has been updated to reflect a draw of $2,881,000. The ending EI~ctric Supply RSR is projected to be $32,156,000, which is within the revised guideline range of$32,016,000 to $64,031,000. • Decrease salaries and benefits expense by $23,587 for removal of request to add 0.25 FTE Customer Service Representative • Decrease salaries and benefits expense by $25,942 for removal of request to add 0.25 FTE Customer Service Specialist • Increase temporary salaries and related medical stipend by $10,658 for customer service and support Gas Fund • Decrease salaries and benefits expense by $23,587 for removal of request to add 0.25 FTE Customer Service Representative • Decrease salaries and benefits expense by $25,942 for removal of request to add 0.25 FTE Customer Service Specialist • Increase temporary salaries and related medical stipend by $46,787 for customer service and support • The projected FY 2011 beginning balance of the Gas Supply RSR has been updated to $7,901,000 Fiber Optics Fund • Decrease temporary salaries and related medical stipend by $4,575 and redistribute to other Utilities Funds for customer service and support Water Fund • The draw on the Water Fund reserves for CIP projects included in the Proposed Operating Budget did not match the total proposed CIP program expenditures for the Water Fund in error. The draw on the Water Fund reserves should be increased $67,000 to correct the amount of the draw included in the proposed operating budget document (See page 154 in the Proposed Operating Budget and page 33 in the Proposed Capital Budget). The change in the Water Fund draw on reserves will change the draw from $8,781,000 to $8,848,000 and will result in an additional draw on the Water Fund Reserve of $67,000. • Decrease salaries and benefits expense by $23,587 for removal of request to add 0.25 FTE Customer Service Representative CMR:288:10 Page 11 of15 • Deerease salaries and benefits expense by $25,942 for removal of request to add 0.25 FTE Customer Service Specialist • Inerease temporary salaries and related medieal stipend by $26,435 for customer service and support • The projected FY 2011 beginning balance of the Water Rate Stabili71ltion Reserve has been updated to $14,191,000 Wastewater Collection Fund • Decrease salaries and benefits expense by $23,587 for removal of request to add 0.25 FTE Customer Service Representative • Decrease salaries and benefits expense by $25,942 for removal of request to add 0.25 FTE Customer Service Specialist • Increase temporary salaries aud related medical stipend by $50,836 for customer service and support Internal Service Funds Information Technology Fund • Increase draw on Technology Fund Reserves by $84,000 to conect and mateh the total proposed CIP program expenditures. • Increase $66,119 from Allocated Charges as a conection to Fiber Optic charges enoneously charged to Administrative Services Department. Printing aud Mailing Fund • Reinstate 0.48 FTE Temporary Hourly Print Shop Assistaut, reclass 1.0 FIE Mailing Services Specialist position to Offset Equipment Operator, and decrease non-salary expense by $35,400 to net a zero budget impact. . Vehicle Replacement and Maintenance Fund • CIP VR-IIOOO Scheduled Vehicle aud Equipment Replacements of$3,193,500 has been removed. An evaluation of the vehicle fleet will be made during FY 2011, and this CIP will be adjusted and reinstated accordingly. • Finauce Committee recommended to not approve staff's recommended "at places" addition ofCIP VR-11002 RPID Reader at MSC aud Civic Center of $50,000 General Benefits and Insurauce Fund • Due to various Finance Committee aud staff FIE changes expense and departmental charges of $387,079 was added to this fund Retiree Health Benefit Fund • Due to various Finance Committee and staff FIE changes expense and departmental charges of $91,298 was added to this fund Debt Service Fund Library Bonds Fund CMR:288:1O Page 12 of IS • In June 2010, the City sold $55,300,000 of 2010 General Obligation Library Bonds to construct a new, energy efficient, environmentally friendly Mitchell Park Library and Community Center, to renovate and expand the Main Library, and renovate the Downtown Library. Annual deht service for FY 2011 is $1,472,000 and will be paid by an ad valorem property tax levy assessed against property owners. The property tax assessment will result in $3,491,539 in property tax revenue to fund debt service payments. Capital Projects Fund -Infrastructure/CIP • Add new CIP Project CC-l1 000 Cubberley Gym Activity Room for $65,000 Compensation Plans One new classification, one salary update, and eighteen title changes are proposed in the Management and Professional Personnel and Council Appointees Compensation Plan. These changes are reflected in the resolution in Attachment 4. Table of Organization Amended pages to the Fiscal Year 2011 Table of Organization are included with this report (Exhibit C). The table has been revised to reflect the staffing changes presented in this report. Changes reflected in the Table of Organization will be incorporated into the relevant department . organization charts and the revised organization charts will be published in the adopted budget; Contracts Greater Than $85,000 On June 15,2010, the Finance Committee approved the Fiscal Year 2011 contract scopes of professional services agreements greater than $85,000 (CMR 258: 1 0). Municipal Fee Schedule On June 15, 2010, the Finanee Committee approved the Fiscal Year 20 11 Proposed Municipal Fce Schedule (CMR 262:10) with amendments (Exhibit E). Staff made greater efforts to maximize recovery of costs through various fees this year. Staff will continue discussions with Council to identify areas and programs for integration of full cost recovery in future ycars. , Finance Cemmittee recommended two changes to the City Manager's Proposed Municipal Fee Schedule, The two recommendations are: • Suspend Children's Theatre show production participation fee of $50.00-$300.00 for residents and fee plus up to 50% for non-residents, pending in-lieu funding agreement with Friends of the Palo Alto Children'S Theatre (by September 30, 2010). In the event that an agreement is not reached by September 30,2010, the suspended participation fee will be made effective. The new revenue associated with this fee remains within the FY 2011 Proposed Operating Budget. • Remove Vehicle Entry Fee/Pass proposed at $5,00 per entry and $40,00 per annual pass from all open spaces and parks. The new revenue projected at $100,000 was removed from the FY 201 1 Proposed Operating Budget. CMR:288:10 Page 13 uf 15 RESOURCE IMPACT The Fiscal Y car 20 II Proposed Budget as submitted to the Finance Committee resulted in an increase to the General Fund Budget Stabilization Reserve (BSR) of $2.1 million. The changes recommended from the Finance Committee hearings and staff recommendations resulted in a net $0.5 million increase to the BSR in Fiscal Year 20 II (Appendix I). The projected ending balance for the BSR in Fiscal Year 2011 is $24.4 million. The projected BSR of $24.4 million equals 17.53% of the Proposed Operating Budget. Per the adopted reserve policy, a reserve range of 15 to 20% of the General Fund operating expenditures, with' a target of 18.5%,"shall be maintained. The projected FY 2011 ending BSR balance of 17.53 % of General Fund operating expenditures falls within the 15-20% range of the adopted reserve policy. However, the projected BSR falls 0.97% below the target BSR of 18.5%. As a result of the changes to the capital budget, the projected ending balance in the Infrastructure Reserve (IR) for Fiscal Year 2011 is $2.5 million. Additional changes to the Enterprise Funds result in an approximately $0.2 million net decrease in reserve balances in Fiscal Year 2011 from the proposed document (Appendix 2). POLICY IMPLICATIONS These recommendations are consistent with existing City policies. ENVIRONMENTAL REVIEW Adoption of the budget does not represent a proj ect under the California Enviroumental Quality Act (CEQA). ATTACHMENTS Attachment I: Exhibit A: Exhibit B: Exhibit C: Exhibit D: Exhibit E: Attachment 2: Attachment 3: Attachment 4: CMR:2BB:1O Budget Adoption Ordinance with the following Exhibits: City Manager's Fiscal Year 2011 Proposed Budget Amendments to the City Manager's Fiscal Year 2011 Proposed Budget Revised Pages in the Fiscal Year 2011 Table of Organization Fiscal Year 20 II Proposed Municipal Fee Schedule Amendments to the Fiscal Year 2011 Proposed Municipal Fee Schedule Resolution of the Council ofthe City of Palo Alto Amending Utility Rate Schedule D-I of the City of Palo Alto Utilities Rates and Charges Pertaining to Storm Drain Rates Resolution of the Council of the City of Palo Alto Amending Utility Rate Schedules EDF-I and EDF-2 of the City of Palo Alto Utilities Rates and Charges Pertaining to Fiber Optic Rates Resolution of the Council of the City of Palo Alto Amending the 2009- 20 I 0 Compensation Plan for the Management and Professional Personnel and Council Appointees Adopted by Resolution No. 9001 to Add a New Classification, Update Salary of One Classification and Change the Titles of Eighteen Classifications Page 14 ofll Attachment 1 ORDINANCE: NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO ADOPTING THE BUDGET FOR FISCAL YEAR 2011 SECTION 1. The Council of the City of Palo Alto finds and determines as follows; A. Pursuant to the provlslons of Section 6(g) of Article IV of the Charter of the City of Palo Alto and Chapter 2.28 of the Palo Alto Municipal Code, the City Manager has prepared and submitted to the City Council, by letter of transmittal, a budget proposal for Fiscal Year 2011; and B. Pursuant to the provisions of Section 12 of Article III of the Charter, the Council did, on June 21 and 28, 2010, hold public hearings on the budget after publication of notice in accordance with Section 2.28.070 of the Palo Alto MUnicipal Code; and C. In accordance with the provisions of Chapter 8 of Division 1, of Title 7, commencing with Section 66016 of the Government Code, as applicable, the Council did on June 21 and 28, 2010, hold a public hearings on the proposed amendments to the Municipal Fee Schedule, after publication of notice and after availability of the data supporting the amendments was made available to the public at least 10 days prior to the hearing. SECTION 2. Pursuant to Chapter 2.28 of the Palo Alto Municipal Code, the following documents, collectively referred to as "the budget" are hereby approved and adopted for Fiscal Year 2011: (a) The budget document (Exhibit "An) containing the proposed operating and capital budgets submitted on May 3, 2010, by the City Manager for Fiscal Year 2011, entitled "City of Palo Alto -City Manager's Fiscal Year 2011 Proposed Budget" covering General Government Funds, Enterprise Funds and Internal Service Funds, a copy of which is on file in Department of Administrative Services, to which copy reference is hereby made concerning the full particulars thereof, and by such reference is made a part hereof; and (b) The Amendments to the City Manager's Fiscal Year 2011 Proposed Budget, attached hereto as Exhibit "B," and made a part hereof; and 1 (d) Changes and revised pages in the Table of Organization, attached hereto as Exhibit "C," and made a part hereo and (e) The document entitled "Fiscal Year 2011 Proposed Municipal Fee Schedule," attached hereto as Exhibit "0," and made a part hereof; and (e) Amendments to the "Fiscal Year 2011 Proposed Municipal Fee Schedule," attached hereto as Exhibit "E," and made a part hereof; and SECTION 3. The sums set forth in the budget for the various departments of the City, as herein amended, are hereby appropriated to the uses and purposes set forth therein. SECTION 4. All expenditures made on behalf of the City, directly or through any agency, except those required by state law, shall be made in accordance with the authorization contained in this ordinance and the budget as herein a~ended. SECTION 5. Appropriations for the cal Year 2010 that are encumbered by approved purchase orders and contracts for which goods or services have not been received or contract completed, and/or for ~Ihich all payments have not been made, by the last day of the Fiscal Year 2010 shall be carried forward and added to the fund or department appropriations for Fiscal Year 2011. SECTION 6. The City Manager authorized and directed to make changes in the department and fund totals and summary pages of the budget necessary to reflect the amendments enumerated and aggregated in the budget as shown in Exhibit B and the Fiscal Year 2010 appropriations carried forward as provided in Section 5. SECTION 7. As specified in Section 2.04.320 of the Palo Alto Municipal Code, a majority vote of the City Council is required to adopt this ordinance. SECTION 8. As specified in Section 2.28.l40(b) of the Palo Alto Municipal Code, the Council of the City of Palo Alto hereby delegates the authority to invest the City's funds to the Director of Administrative Services, as Treasurer, in accordance with the City's Investment Policy for fiscal Year 2011. SECTION 9. The Council of the City of Palo Alto adopts the Municipal fee Schedule as set forth in Exhibits "D" and "E". All new and increased fees shall go into effect immediately; provided that pursuant to Government Code Section 66017, all Planning Department fees rel·ating to a "development project" as defined in 2 Government Code Section 66000 shall become effective sixty (60) days from the date of adoption. SECTION 10. The Council of the City of Palo Alto hereby finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. SECTION 11. Except as specified in Section 9, as provided in Section 2.04.330 (a) (3) of the Palo Al to Municipal Code, this ordinance shall become effective upon adoption. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: City Clerk APPROVED AS TO FORM: City Attorney 3 Mayor APPROVED: City Manager Director Services of Administrative FY 2011 Budget Adoption CMR City of Palo Alto Table of Contents PAGE ITEM DESCRIPTION EXHIBITS TO ATTACHMENT 1 1 Exhibit A - City Manager’s Fiscal Year 2011 Proposed Budget 2 Exhibit B - Amendments to the City Manager’s Fiscal Year 2011 Proposed Budget 10 Exhibit C - Revised Pages in the Fiscal Year 2011 Table of Organization 30 Exhibit D - FY 2011 Proposed Muni Fee Schedule 31 Exhibit E - Amendments to the Fiscal Year 2011 Proposed Municipal Fee Schedule ATTACHMENT 2 39 Resolution of the Council of the City of Palo Alto Amending Utility Rate Sched- ule D-1 of the City of Palo Alto Utilities Rates and Charges Pertaining to Storm Drain Rates ATTACHMENT 3 45 Resolution of the Council of the City of Palo Alto Amending Utility Rate Schedules EDF-1 and EDF-2 of the City of Palo Alto Utilities Rates and Charges Pertaining to Fiber Optic Rates ATTACHMENT 4 55 Resolution of the Council of the City of Palo Alto Amending the 2009-2010 Com- pensation Plan for the Management and Professional Personnel and Council Appointees Adopted by Resolution No. 9001 to Add a New Classification, Up- date Salary of One Classification and Change the Titles of Eighteen Classifica- tions Exhibit A - Fiscal Year 2011 Compensation Plan for Management and Professional Personnel ATTACHMENT 5 59 Resolution of the Council of the City of Palo Alto Encouraging All Palo Alto Council Members to Voluntariliy Accept a 10% Reduction in their Salaries for Fiscal Year 2011 Due to the Financial Challenges Facing the City i City of Palo Alto FY 2011 Budget Adoption CMR Table of Contents PAGE ITEM DESCRIPTION APPENDIX 1 63 Fiscal Year 2011 General Fund Summary and Reserve Balances APPENDIX 2 69 Fiscal Year 2011 Enterprise Fund Summary and Reserve Balances APPENDIX 3 75 Fiscal Years 2011-2015 Capital Improvement Fund Summaries and Amended Projects APPENDIX 4 93 Fiscal Year 2011 Internal Service Funds Summary APPENDIX 5 97 Fiscal Year 2011 Debt Service Funds Summary APPENDIX 6 101 June 14 Memorandum to Finance Committee detailing changes to Fiscal Year 2011 City Manager’s Proposed Budget to date APPENDIX 7 153 Memorandums distributed "at-places" during Finance Committee budget hearings APPENDIX 8 265 Budget Hearing Presentation Slides distributed during the Finance Committee budget hearings ii FY 2011 City Manager’s Proposed Operating and Capital Budgets These documents were originally distributed in Council Packet. Printed copies are available upon request for $20 per book. 650-329-2260 Books may be viewed at any City of Palo Alto Library - or - at the City’s website: www.cityofpaloalto.org/depts/asd/budget.asp Exhibit A 1 FY 2011 Category Amount Description (51,000)$ IT lease savings by moving from 300 Hamilton (67,000) Energy conservation savings Non-salary 298,970 Restore transfer from General Fund to Capital Fund for CIP sidewalk repair and replacement to reflect 50%-50% cost sharing with residents 180,970 (180,970)$ Revenue 35,000$ Restore Stanford revenue to reflect correction Source Changes 35,000 Salary and Benefits 15,160 Restore temporary salary for Summer Law Clerk to reflect correction 15,160 19,840$ Salary (2,160)$ Decrease City Council salary by 10% (3 members volunteered) Non-salary (17,000) Decrease Travel & Meeting General Expenses (19,160) 19,160$ Salary 4,276$ One-month severance pay for staff laid off (per SEIU contact) 4,276 (4,276)$ Salary and Benefits (66,119)$ Decrease Fiber Optic allocated charges to reflect correction (66,119) 66,119$ Net Changes To (From) Reserves Net Changes To (From) Reserves Use Changes Net Changes To (From) Reserves ADMINISTRATIVE SERVICES DEPARTMENT CITY ATTORNEY Use Changes CITY MANAGER Use Changes Net Changes To (From) Reserves Use Changes CITY COUNCIL Net Changes To (From) Reserves Use Changes GENERAL FUND NON-DEPARTMENTAL Exhibit B CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S 2011 PROPOSED BUDGET General Fund 2010 - Page 1 of 82 FY 2011 Category Amount Description Exhibit B CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S 2011 PROPOSED BUDGET Grant/Donation 35,000$ Grant from the Friends of the Children's Theatre to support participants in the Children's Theatre production ( in lieu of the participant's fee) Vehicle Entry Fee (100,000) Remove proposed vehicle entry fee at the Foothills, Arastradero and Bayland Park Source Changes (65,000) Salary and Benefits 61,114 Restore 0.75 FTE Program Assistant 1 for the Art Center operations and support of the Arts Commission Salary and Benefits (273,362) Restore savings to full year instead of nine months for FTEs eliminated in CSD Salary and Benefits 24,721 One-month severance pay for staff laid off (per SEIU contact) Non Salary 50,000 Restore HSRAP funding to its original appropriation amount Non Salary 27,000 Restore summer concert series (110,527) 45,527$ 68,000$ Contract with labor negotiator 68,000 (68,000)$ LIBRARY Salary and Benefits 73,893$ Restore 1.59 FTE hourly to open College Terrace after renovation Salary and Benefits 106,702 Restore 1.0 FTE Library Associate and .39 FTE hourly for the opening of Main, Mitchell Park and Children's Library on Monday (Option 1) 5,938 One-month severance pay for staff laid off (per SEIU contact) Non Salary 2,000 Restore office supplies for College Terrace opening after renovation 188,533 (188,533)$ PLANNING & COMMUNITY ENVIRONMENT Revenue 200,000$ Increase Building Division Permit revenue due to Municipal Fee Schedule changes Source Changes 200,000 Salary and Benefits 122,136 Restore 1.0 FTE Code Enforcement Officer 122,136 77,864$ 75,000$ Restore traffic violation revenue resulting from partial reinstatement of Traffic Team Source Changes 75,000 Salary and Benefits 721,104 Restore Traffic Team, 4 FTE Salary and Benefits 331,735 Restore Investigation positions, 2 FTE Non-salary 345,000 Restore funding for School Crossing Guards 1,397,839 Use Changes COMMUNITY SERVICES POLICE Use Changes Net Changes To (From) Reserves Use Changes HUMAN RESOURCES Net Changes To (From) Reserves Use Changes Net Changes To (From) Reserves Net Changes To (From) Reserves Use Changes General Fund 2010 - Page 2 of 83 FY 2011 Category Amount Description Exhibit B CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S 2011 PROPOSED BUDGET (1,322,839)$ Salary and Benefits 390,104$ Restore 4.0 FTE Tree Trimmer/Line Clearers Salary and Benefits 7,831 One-month severance pay for staff laid off (per SEIU contact) Non-salary (73,900) Decrease contract services for tree trimming Non-salary 10,000 Increase planting material for trees Salary and Benefits (161,525) Eliminate 1.0 FTE Supervising Project Engineer Salary and Benefits (88,553) Eliminate 1.0 FTE Traffic Control Maintenance II 83,957 (83,957)$ Revenue 298,970$ Revenue from residents for 50% of costs for CIP sidewalk repair and replacement Revenue 298,970 Restore transfer from General Fund to Capital Fund for CIP sidewalk repair and replacement to reflect 50%-50% cost sharing with residents Source Changes 597,940 Salary and Benefits 97,940 Restore 0.9 FTE Engineering Tech III for CIP sidewalk repair and replacement; cost to be shared 50%-50% with residents (Project AS-10000) Non-salary 500,000 Restore contract services for sidewalk repair; cost to be shared 50%-50% with residents (Project PO-89003) Non-salary 65,000 New CIP Project added to the Proposed Budget FY 2011 (CC-11000 - Cubberley Gym Activity Room). Use Changes 662,940 (65,000)$ Capital Fund Reserve Net Changes To (From) Reserves Net Changes To (From) Reserves PUBLIC WORKS Use Changes Net Changes To (From) Reserves GENERAL FUND CIP General Fund 2010 - Page 3 of 84 FY 2011 Category Amount Description ENTERPRISE FUNDS ELECTRIC FUND Salary and Benefits $ (23,587) Removal of request to add 0.25 FTE Customer Service Representative Salary and Benefits (25,942) Removal of request to add 0.25 FTE Customer Service Specialist Salary and Benefits 10,658 Increase temporary salaries and related medical stipend for customer service and support Allocated Charges 68,011 Utilites Administration charges for addition of 1.0 FTE Senior Auditor Use Changes 29,140 Net Changes To (From) Reserves $ (29,140) Fund Balancing Entries $ 4,488,356 Change in Fund Balance- Supply (4,492,000) Change in Fund Balance- Calaveras (25,496) Change in Fund Balance- Distribution Total Electric Fund $ (29,140) FIBER OPTICS FUND 7 Allocated Charges $ 4,379 Utilites Administration charges for addition of 1.0 FTE Senior Auditor Salary and Benefits (4,575) Decrease temporary salaries and related medical stipend; redistribute to other Utilities Funds for customer service and support Use Changes (196) Net Changes To (From) Reserves $ 196 Fund Balancing Entries 196 Change in Fund Balance Total Fiber Optics Fund $ 196 CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S 2011 PROPOSED BUDGET Exhibit B Enterprise Funds 2010 - Page 1 of 85 FY 2011 Category Amount Description CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S 2011 PROPOSED BUDGET Exhibit B GAS FUND 7 Salary and Benefits $ (23,587) Removal of request to add 0.25 FTE Customer Service Representative Salary and Benefits (25,942) Removal of request to add 0.25 FTE Customer Service Specialist Salary and Benefits 46,787 Increase temporary salaries and related medical stipend for customer service and support Allocated Charges 34,254 Utilites Administration charges for addition of 1.0 FTE Senior Auditor Use Changes 31,512 Net Changes To (From) Reserves $ (31,512) Fund Balancing Entries $ (2,793) Change in Fund Balance- Supply (28,719) Change in Fund Balance- Distribution Total Gas Fund $ (31,512) WATER FUND 7 Salary and Benefits $ (23,587) Removal of request to add 0.25 FTE Customer Service Representative Salary and Benefits (25,942) Removal of request to add 0.25 FTE Customer Service Specialist Salary and Benefits 26,435 Increase temporary salaries and related medical stipend for customer service and support Allocated Charges 30,951 Utilites Administration charges for addition of 1.0 FTE Senior Auditor Non-salary 67,000 To correct proposed amount for CIP projects Use Changes 74,857 Net Changes To (From) Reserves $ (74,857) Fund Balancing Entries $ (74,857) Change in Fund Balance Total Water Fund $ (74,857) Enterprise Funds 2010 - Page 2 of 86 FY 2011 Category Amount Description CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S 2011 PROPOSED BUDGET Exhibit B WASTEWATER COLLECTION FUND Salary and Benefits $ (23,587) Removal of request to add 0.25 FTE Customer Service Representative Salary and Benefits (25,942) Removal of request to add 0.25 FTE Customer Service Specialist Salary and Benefits 50,836 Increase temporary salaries and related medical stipend for customer service and support Allocated Charges 18,520 Utilites Administration charges for addition of 1.0 FTE Senior Auditor Use Changes 19,827 Net Changes To (From) Reserves $ (19,827) Fund Balancing Entries $ (19,827) Change in Fund Balance Total Wastewater Collection Fund $ (19,827) UTILITIES ADMINISTRATION FUND Revenue $ 156,115 Reimbursements from Utilities Funds for addition of 1.0 FTE Senior Auditor Revenue Changes 156,115 Salary and Benefits 156,115 Add 1.0 Senior Auditor in City Auditor's Office Use Changes 156,115 Net Changes To (From) Reserves $ - Fund Balancing Entries 0 Change in Fund Balance Total Utilities Administration Fund $ - REFUSE FUND $ 10,883 Restore 0.1 FTE Engineering Tech III (0.9 FTE allocated to CIP sidewalk repair and replacement) Use Changes 10,883 Net Changes To (From) Reserves $ (10,883) Fund Balancing Entries (10,883) Change in Fund Balance Total Refuse Fund $ (10,883) Enterprise Funds 2010 - Page 3 of 87 FY 2011 Category Description Source Changes (3,491,539)$ Property tax assessment for 2010 GO Library Bonds 1,472,000 Interest debt service payment Use Changes 1,472,000 2,019,539$ Use Changes Non-salary (3,193,500) Remove CIP VR-11000 Scheduled Vehicle and Equipment Replacements; An evaluation of the vehicle fleet will be made during FY 2011, and this CIP will be adjusted and reinstated accordingly. 3,193,500$ Non-salary 84,000 Increase Capital Improvement Project to balance with FY 2011 Proposed Capital Budget to reflect correction Non-salary 66,119 Increase Fiber Optic allocated charges to reflect correction Use Changes 150,119 (150,119)$ Salary & Benefit 35,400 Reinstate 0.48 Temporary FTE Print Shop Assistant and Reclass Mailing Services Specislaist position to Offset Equipment Operator Salary & Benefit 5,996 One-month severance pay for staff laid off (per SEIU contract) Non-salary (35,400) Reduce Rent-Office Machine and Furniture expense Use Changes 5,996 (5,996)$ Source Changes 387,079$ Department charges Salary & Benefit 387,079 Change in employee benefits Use Changes 387,079 -$ Net Changes To (From) Reserves Net Changes To (From) Reserves GENERAL BENEFITS & INSURANCE F Net Changes To (From) Reserves Amount Exhibit B CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S 2011 PROPOSED BUDGET PRINTING & MAILING DEBT SERVICE FUNDS LIBRARY BONDS Net Changes To (From) Reserves INTERNAL SERVICE INFORMATION TECHNOLOGY Net Changes To (From) Reserves VEHICLE REPLACEMENT FUND Special Revenue Funds 2010 - Page 4 of 8 8 FY 2011 Category DescriptionAmount Exhibit B CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S 2011 PROPOSED BUDGET Source Changes 91,298$ Department charges Salary & Benefit 91,298 Change in employee benefits Use Changes 91,298 -$ Net Changes To (From) Reserves RETIREE HEALTH BENEFIT FUND Special Revenue Funds 2010 - Page 5 of 8 9 Summary of Position Changes FTE GENERAL FUND FY 2010 ADOPTED BUDGET 622.51 FY 2010 BAO Position Adjustments Tree Maintenance Person (PWD)(2.00) Tree Maintenance Specialist (PWD) 2.00 FY 2010 ADJUSTED TOTAL 622.51 FY 2011 New Positions Administrator (CMO)0.50 FY 2011 Total New Positions 0.50 FY 2011 Reclassified Positions Transportation Manager (PCE)(1.00) Chief Transportation Official (PCE) 1.00 FY 2011 Total Reclassified Positions 0.00 FY 2011 Reallocated Positions Business Analyst (ASD)(0.10) Contracts Administrator (ASD)(0.60) Senior Business Analyst (ASD)(0.20) Senior Engineer (PWD)(0.10) Senior Financial Analyst (ASD)(1.10) Warehouse Supervisor (ASD)(0.50) Assistant to City Manager (CMO)(0.45) Planner (PCE)(0.30) Senior Deputy City Attorney (ATT)(1.00) FY 2011 Total Reallocated Positions (4.35) FY 2011 Eliminated Positions Accounting Specialist (ASD)(1.00) Administrative Associate III (ASD)(0.96) Administrative Associate II (CMO)(1.00) Administrative Associate I (CSD)(2.00) Building Serviceperson (CSD)(2.00) Coordinator Child Care (CSD)(1.00) Coordinator Recreation Programs (CSD)(0.50) Cubberley Center & Human Services Division Manager (CSD)(1.00) Golf Course Equipment Mechanic (CSD)(1.00) Golf Course Maintenance Person (CSD)(4.00) Park Maintenance Person (CSD)(5.00) Parks Crew-Lead (CSD)(1.00) City of Palo Alto Operating Budget FY 2011 10 EXHIBIT C Summary of Position Changes FTE Prod Arts/Science Program (CSD)(1.00) Program Assistant I (CSD)(0.25) Sprinkler System Repairer (CSD)(1.00) Administrative Assistant (FIR)(1.00) Hazardous Material Specialist EMT (FIR)(0.95) Senior Librarian (LIB)(1.00) Administrative Associate I (PCE)(1.00) Building Inspector Specialist (PCE)(1.00) Building/Planning Technician (PCE)(1.00) Senior Planner (PCE)(1.00) Code Enforcement Officer (POL)(0.50) Crime Analyst (POL)(1.00) Police Officer (POL)(1.00) Police Records Specialist II (POL)(1.00) Program Coordinator (POL)(1.00) Building Serviceperson (PWD)(3.00) Supervising Project Engineer (PWD)(1.00) Traffic Control Maintainer II (1.00) FY 2011 Total Eliminated Positions (39.16) FY 2011 TOTAL PROPOSED GENERAL FUND POSITIONS 579.50 ENTERPRISE FUNDS FY 2010 ADOPTED BUDGET 356.24 FY 2010 Position Adjustments Cathodic Protection Technician/Assistant (UTL)1.00 Gas System Technician II (UTL 1.00 Utility Field Service Representative (UTL)(1.00) Water System Operator II (UTL)(1.00) FY 2010 ADJUSTED TOTAL 356.24 FY 2011 New Positions Manager Communications (UTL)1.00 Senior Business Analyst (UTL)1.00 Utility Installer/Repairer (UTL)2.00 Senior Performance Auditor (AUD)1.00 Utilities Compliance Manager (UTL)1.00 FY 2011 Total New Positions 6.00 FY 2011 Reclassified Positions Assoc Resource Planner (UTL)(1.00) Resource Planner (UTL)1.00 Electric Project Engineer (UTL) 1.00 Gas Systems Technician (UTL) 1.00 City of Palo Alto Operating Budget FY 2011 11 EXHIBIT C Summary of Position Changes FTE Heavy Equipment Operator (UTL)(1.00) Meter Shop Lead (UTL)(1.00) Power Engineer (UTL)1.00 Project Engineer (UTL)(1.00) Senior Resources Originator (UTL)(1.00) Senior Resource Planner (UTL) 1.00 Supervising Electric Project Engineer (UTL)(1.00) Supervising Project Engineer (UTL) 1.00 Utilities Engineer Estimator Lead (UTL)(1.00) Water Meter/Cross Connection Technician (UTL) 1.00 FY 2011 Total Reclassified Positions 0.00 FY 2011 Reallocated Positions Assistant to City Manager (CMO)0.45 Offset Equip Op (ASD)0.48 Planner (PCE)0.30 Senior Engineer (PWD)0.30 Senior Financial Analyst (ASD)0.50 Senior Deputy City Attorney (ATT)1.00 Warehouse Supv (ASD)0.50 FY 2011 Total Reallocated Positions 3.53 FY 2011 Eliminated Positions Hazardous Materials Specialist (FIR)(0.05) FY 2011 Total Eliminated Positions (0.05) FY 2011 TOTAL PROPOSED ENTERPRISE FUND POSITIONS 365.72 OTHER FUNDS FY 2010 ADOPTED BUDGET 76.60 FY 2010 BAO Position Adjustments None FY 2010 ADJUSTED TOTAL 76.60 FY 2011 New Positions Administrator (CMO)0.50 Accounting Specialist (ASD) 0.50 FY 2011 Total New Positions 1.00 FY 2011 Reclassified Positions Mailing Services Specialist (ASD)(1.00) Offset Equipment Operator (ASD) 1.00 City of Palo Alto Operating Budget FY 2011 12 EXHIBIT C Summary of Position Changes FTE FY 2011 Total Reclassified Positions 0.00 FY 2011 Reallocated Positions Offset Equipment Operator (ASD)(0.48) Business Analyst (ASD)0.10 Contracts Administrator (ASD) 0.60 Senior Business Analyst (ASD) 0.20 Senior Engineer (PWD)(0.20) Senior Financial Analyst (ASD) 0.60 FY 2011 Total Reallocated Positions 0.82 FY 2011 Eliminated Positions Administrative Associate III (ASD)(0.04) Offset Equipment Operator - Lead (ASD)(1.00) Supervisor Reproduction & Mail (ASD)(1.00) Technologist (ASD)(1.00) Administrative Associate I (PWD)(1.00) Project Manager (PWD)(1.00) FY 2011 Total Eliminated Positions (5.04) FY 2011 TOTAL ADOPTED OTHER FUNDS POSITIONS 73.38 FY 2011 TOTAL PROPOSED CITYWIDE POSITIONS 1018.60 City of Palo Alto Operating Budget FY 2011 13 EXHIBIT C Table of Organization FY 2009 Actual FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted-in- Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change GENERAL FUND City Attorney Assistant City Attorney 1.00 1.00 1.00 1.00 1.00 0.00 City Attorney 1.00 1.00 1.00 1.00 1.00 0.00 Claims Investigator 0.60 0.60 0.60 0.60 0.60 0.00 Deputy City Attorney 0.00 0.00 0.00 0.00 0.00 0.00 Legal Secretary - Confidential 0.00 0.00 0.00 0.00 0.00 0.00 Legal Services Administrator (15)1.00 1.00 1.00 1.00 1.00 0.00 Secretary to City Attorney 1.00 1.00 1.00 1.00 1.00 0.00 Senior Assistant City Attorney 2.00 2.00 2.00 2.00 2.00 0.00 Senior Deputy City Attorney (10)2.00 2.00 2.00 2.00 1.00 (1.00) Senior Legal Secretary 2.00 2.00 2.00 2.00 2.00 0.00 Total City Attorney 10.60 10.60 10.60 10.60 9.60 (1.00) City Auditor Administrative Assistant 1.00 1.00 1.00 1.00 1.00 0.00 City Auditor 1.00 1.00 1.00 1.00 1.00 0.00 Deputy City Auditor 0.00 0.00 0.00 0.00 0.00 0.00 Performance Auditor (16)0.00 0.00 0.00 0.00 0.00 0.00 Senior Performance Auditor (17)2.00 2.00 2.00 2.00 2.00 0.00 Total City Auditor 4.00 4.00 4.00 4.00 4.00 0.00 City Clerk Administrative Associate III 3.00 3.00 3.00 3.00 3.00 0.00 Assistant City Clerk 1.00 1.00 1.00 1.00 1.00 0.00 City Clerk 1.00 1.00 1.00 1.00 1.00 0.00 Deputy City Clerk 1.00 1.00 1.00 1.00 1.00 0.00 Hearing Officer (25)0.75 0.75 0.75 0.75 0.75 0.00 Total City Clerk 6.75 6.75 6.75 6.75 6.75 0.00 City Manager Administrative Assistant 1.00 1.00 1.00 1.00 1.00 0.00 Administrative Associate I 1.50 1.50 1.50 1.50 1.50 0.00 Administrative Associate II (9)1.00 1.00 1.00 1.00 0.00 (1.00) Administrator (1)0.00 0.00 0.00 0.00 0.50 0.50 Assistant City Manager 1.00 1.00 1.00 1.00 1.00 0.00 Assistant to City Manager (7)2.00 2.00 2.00 2.00 1.50 (0.50) City Manager 1.00 1.00 1.00 1.00 1.00 0.00 Communications Manager (18)1.00 1.00 1.00 1.00 1.00 0.00 Deputy City Manager 0.00 0.50 0.50 0.50 0.50 0.00 Executive Assistant to the City Manager 1.00 1.00 1.00 1.00 1.00 0.00 Manager, Communications 1.00 0.00 0.00 0.00 0.00 0.00 Senior Administrator 1.00 0.00 0.00 0.00 0.00 0.00 Total City Manager 11.50 10.00 10.00 10.00 9.00 (1.00) City of Palo Alto Operating Budget FY 2011 14 EXHIBIT C Table of Organization FY 2009 Actual FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted-in- Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change Administrative Services Department Accountant (28)3.00 2.00 2.00 2.00 2.00 0.00 Accounting Specialist (9)11.00 8.00 8.00 8.00 7.00 (1.00) Accounting Specialist - Lead 5.00 5.00 5.00 5.00 5.00 0.00 Administrative Assistant 0.93 0.93 0.93 0.93 0.93 0.00 Administrative Associate III (9)0.96 0.96 0.96 0.96 0.00 (0.96) Assistant Director, Administrative Services 0.60 0.60 0.60 0.60 0.60 0.00 Assistant Storekeeper 0.00 0.00 0.00 0.00 0.00 0.00 Business Analyst (11)0.10 0.10 0.10 0.10 0.00 (0.10) Buyer 1.95 1.95 1.95 1.95 1.95 0.00 Contracts Administrator (3)2.00 2.00 2.00 2.00 1.40 (0.60) Deputy Director, Administrative Services 0.80 0.80 0.80 0.80 0.80 0.00 Director, Administrative Services 0.50 0.50 0.50 0.50 0.50 0.00 Graphic Designer 1.00 1.00 1.00 1.00 1.00 0.00 Manager, Accounting 1.00 1.00 1.00 1.00 1.00 0.00 Manager, Budget 1.00 1.00 1.00 1.00 1.00 0.00 Manager, Purchasing/Contract Administrator 1.00 1.00 1.00 1.00 1.00 0.00 Manager, Real Property 1.00 1.00 1.00 1.00 1.00 0.00 Payroll Analyst 2.00 2.00 2.00 2.00 2.00 0.00 Real Property Analyst 0.00 0.00 0.00 0.00 0.00 0.00 Real Property Agent 0.00 0.00 0.00 0.00 0.00 0.00 Senior Accountant 4.00 3.00 3.00 3.00 3.00 0.00 Senior Business Analyst (12)0.20 0.20 0.20 0.20 0.00 (0.20) Senior Financial Analyst (4), (5)7.91 6.91 6.91 6.91 5.81 (1.10) Senior Buyer 0.00 0.00 0.00 0.00 0.00 0.00 Staff Secretary 0.00 0.00 0.00 0.00 0.00 0.00 Storekeeper 1.00 0.00 0.00 0.00 0.00 0.00 Storekeeper - Lead 1.00 1.00 1.00 1.00 1.00 0.00 Warehouse Supervisor (6)1.00 1.00 1.00 1.00 0.50 (0.50) Total Administrative Services 48.95 41.95 41.95 41.95 37.49 (4.46) Community Services Department Administrative Assistant 1.00 1.00 1.00 1.00 1.00 0.00 Administrative Associate I (9)2.50 2.00 2.00 2.00 0.00 (2.00) Administrative Associate III 0.00 0.75 0.75 0.75 0.75 0.00 Administrator Special Events 0.00 0.00 0.00 0.00 0.00 0.00 Arts and Culture Division Manager 1.00 1.00 1.00 1.00 1.00 0.00 Building Serviceperson (9)4.00 4.00 4.00 4.00 2.00 (2.00) Building Serviceperson - Lead 2.00 2.00 2.00 2.00 2.00 0.00 Community Services Senior Program Manager (21)1.00 1.00 1.00 1.00 1.00 0.00 Community Services Superintendent (20)1.00 1.00 1.00 1.00 1.00 0.00 Coordinator, Child Care (9)1.00 1.00 1.00 1.00 0.00 (1.00) Coordinator, Recreation Programs (9)5.00 5.00 5.00 5.00 4.50 (0.50) Cubberley Center and Human Svc Div Mgr (9)1.00 1.00 1.00 1.00 0.00 (1.00) Director, Community Services 1.00 1.00 1.00 1.00 1.00 0.00 City of Palo Alto Operating Budget FY 2011 15 EXHIBIT C Table of Organization FY 2009 Actual FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted-in- Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change Division Manager, Golf & Parks 0.00 0.00 0.00 0.00 0.00 0.00 Division Manager, Recreation & Golf 1.00 1.00 1.00 1.00 1.00 0.00 Division Manager, Rec and Youth Sciences 0.00 0.00 0.00 0.00 0.00 0.00 Golf Course Equipment Mechanic (9)1.00 1.00 1.00 1.00 0.00 (1.00) Golf Course Maintenance Person (9)5.00 4.00 4.00 4.00 0.00 (4.00) Inspector, Field Services 2.00 2.00 2.00 2.00 2.00 0.00 Jr. Museum & Zoo Lead Educator 0.00 2.25 2.25 2.25 2.25 0.00 Jr. Museum & Zoo Lead Instructor 0.00 0.00 0.00 0.00 0.00 0.00 Management Assistant 1.00 1.00 1.00 1.00 1.00 0.00 Manager, Arts 2.00 2.00 2.00 2.00 2.00 0.00 Open Space and Parks Division Manager 1.00 1.00 1.00 1.00 1.00 0.00 Park Maintenance Lead 1.00 1.00 1.00 1.00 1.00 0.00 Park Maintenance Person (9)11.00 11.00 11.00 11.00 6.00 (5.00) Park Ranger 5.00 5.00 5.00 5.00 5.00 0.00 Parks and Open Space Assistant 0.00 0.00 0.00 0.00 0.00 0.00 Parks Crew - Lead (9)3.00 3.00 3.00 3.00 2.00 (1.00) Producer Arts/Science Programs (9)12.50 13.00 13.00 13.00 12.00 (1.00) Program Assistant I (9)12.00 7.75 7.75 7.75 7.50 (0.25) Program Assistant II 3.00 3.00 3.00 3.00 3.00 0.00 Senior Management Analyst (19)1.00 1.00 1.00 1.00 1.00 0.00 Senior Ranger 1.00 0.00 0.00 0.00 0.00 0.00 Sprinkler System Repairer (9)5.00 5.00 5.00 5.00 4.00 (1.00) Superintendent, Parks 1.00 1.00 1.00 1.00 1.00 0.00 Supervisor, Open Space 1.00 2.00 2.00 2.00 2.00 0.00 Supervisor, Parks 1.00 1.00 1.00 1.00 1.00 0.00 Supervisor, Recreation Program (14)4.00 4.00 4.00 4.00 4.00 0.00 Theater Specialist 1.00 1.00 1.00 1.00 1.00 0.00 Volunteer Coordinator 0.50 0.50 0.50 0.50 0.50 0.00 Total Community Services 96.50 94.25 94.25 94.25 74.50 (19.75) Fire Administrative Assistant (9)1.00 1.00 1.00 1.00 0.00 (1.00) Administrative Associate II 4.00 4.00 4.00 4.00 4.00 0.00 Battalion Chief 3.00 3.00 3.00 3.00 3.00 0.00 Deputy Fire Chief/Fire Marshal 0.84 0.84 0.84 0.84 0.84 0.00 Deputy Fire Chief (22)2.00 2.00 2.00 2.00 2.00 0.00 Deputy Fire Chief OPS/Support 0.00 0.00 0.00 0.00 0.00 0.00 EMS Chief 1.00 0.00 0.00 0.00 0.00 0.00 EMS Coordinator 1.00 1.00 1.00 1.00 1.00 0.00 EMT Basic 3.00 0.00 0.00 0.00 0.00 0.00 Fire Apparatus Operator 30.00 30.00 30.00 30.00 30.00 0.00 Fire Captain 27.00 27.00 27.00 27.00 27.00 0.00 Fire Chief 1.00 1.00 1.00 1.00 1.00 0.00 Fire Fighter 45.00 45.00 45.00 45.00 45.00 0.00 Fire Inspector 3.00 3.00 3.00 3.00 3.00 0.00 City of Palo Alto Operating Budget FY 2011 16 EXHIBIT C Table of Organization FY 2009 Actual FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted-in- Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change Hazardous Materials Fire Apparatus Operator 0.00 0.00 0.00 0.00 0.00 0.00 Hazardous Materials Fire Captain 0.00 0.00 0.00 0.00 0.00 0.00 Hazardous Materials Fire Fighter 0.00 0.00 0.00 0.00 0.00 0.00 Hazardous Materials Inspector 1.90 1.90 1.90 1.90 1.90 0.00 Hazardous Materials Specialist (9)0.95 0.95 0.95 0.95 0.00 (0.95) OES Coordinator 1.00 1.00 1.00 1.00 1.00 0.00 Paramedic Captain 0.00 0.00 0.00 0.00 0.00 0.00 Paramedic Fire Fighter 0.00 0.00 0.00 0.00 0.00 0.00 Paramedic Inspector 0.00 0.00 0.00 0.00 0.00 0.00 Paramedic Operator 0.00 0.00 0.00 0.00 0.00 0.00 Training Captain 1.00 1.00 1.00 1.00 1.00 0.00 Total Fire 126.69 122.69 122.69 122.69 120.74 (1.95) Human Resources Department Administrative Assistant 1.00 1.00 1.00 1.00 1.00 0.00 Assistant Director Human Resources 1.00 1.00 1.00 1.00 1.00 0.00 Director, Human Resources 1.00 1.00 1.00 1.00 1.00 0.00 Human Resources Assistant - Conf 4.00 5.00 5.00 5.00 5.00 0.00 Human Resources Representative 2.00 2.00 2.00 2.00 2.00 0.00 Manager, Employee Relations 1.00 0.00 0.00 0.00 0.00 0.00 Manager, Human Resources & Development 0.00 0.00 0.00 0.00 0.00 0.00 Manager, Risk and Benefits 0.00 0.00 0.00 0.00 0.00 0.00 Senior Human Resources Administrator (26)5.00 5.00 5.00 5.00 5.00 0.00 Senior Management Analyst (19)1.00 1.00 1.00 1.00 1.00 0.00 Total Human Resources 16.00 16.00 16.00 16.00 16.00 0.00 Library Department Administrative Assistant 1.00 1.00 1.00 1.00 1.00 0.00 Assistant Director, Library Services 1.00 1.00 1.00 1.00 1.00 0.00 Business Analyst 0.00 1.00 1.00 1.00 1.00 0.00 Coordinator, Library Circulation 0.00 0.00 0.00 0.00 0.00 0.00 Coordinator, Library Programs 3.00 1.00 1.00 1.00 1.00 0.00 Director, Libraries 1.00 1.00 1.00 1.00 1.00 0.00 Division Head, Library Services 1.00 1.00 1.00 1.00 1.00 0.00 Librarian 5.00 5.00 5.00 5.00 5.00 0.00 Library Assistant 5.50 5.50 5.50 5.50 5.50 0.00 Library Associate 4.00 4.00 4.00 4.00 4.00 0.00 Library Services Manager (23)4.00 4.00 4.00 4.00 4.00 0.00 Library Specialist 8.00 8.00 8.00 8.00 8.00 0.00 Manager, Main Library Services 0.00 0.00 0.00 0.00 0.00 0.00 Management Assistant 1.00 1.00 1.00 1.00 1.00 0.00 Senior Librarian (9)9.25 8.75 8.75 8.75 7.75 (1.00) Total Library Department 43.75 42.25 42.25 42.25 41.25 (1.00) City of Palo Alto Operating Budget FY 2011 17 EXHIBIT C Table of Organization FY 2009 Actual FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted-in- Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change Planning and Community Environment Department Administrative Assistant 1.00 1.00 1.00 1.00 1.00 0.00 Administrative Associate I (9)2.00 2.00 2.00 2.00 1.00 (1.00) Administrative Associate II 4.80 3.80 3.80 3.80 3.80 0.00 Administrative Associate III 1.00 1.00 1.00 1.00 1.00 0.00 Administrator, Planning & Comm Envir 1.00 1.00 1.00 1.00 1.00 0.00 Arborist 1.00 1.00 1.00 1.00 1.00 0.00 Assistant Building Official 1.00 1.00 1.00 1.00 1.00 0.00 Assistant Director, Planning & Comm Envir 1.00 0.00 0.00 0.00 0.00 0.00 Assistant Engineer 0.00 0.00 0.00 0.00 0.00 0.00 Assistant to City Manager (7)0.00 0.00 0.00 0.00 0.05 0.05 Associate Engineer 1.00 1.00 1.00 1.00 1.00 0.00 Building Inspector 4.00 4.00 4.00 4.00 4.00 0.00 Building Inspector Specialist (9)3.00 2.00 2.00 2.00 1.00 (1.00) Building/Planning Technician (9)3.00 3.00 3.00 3.00 2.00 (1.00) Chief Building Official 1.00 1.00 1.00 1.00 1.00 0.00 Chief Planning and Transportation Official 1.00 1.00 1.00 1.00 1.00 0.00 Chief Transportation Officer 0.00 0.00 0.00 0.00 0.00 0.00 Chief Transportation Official (2)0.00 0.00 0.00 0.00 1.00 1.00 City Traffic Engineer 0.00 0.00 0.00 0.00 0.00 0.00 Code Enforcement Officer 2.00 2.00 2.00 2.00 2.00 0.00 Coordinator, Transp Sys Mgmt 0.50 0.50 0.50 0.50 0.50 0.00 Deputy City Manager 0.00 0.50 0.50 0.50 0.50 0.00 Director, Planning and Comm Envir 1.00 1.00 1.00 1.00 1.00 0.00 Engineer 1.00 1.00 1.00 1.00 1.00 0.00 Engineering Technician II 1.00 1.00 1.00 1.00 1.00 0.00 Manager, Economic Resources 0.00 0.00 0.00 0.00 0.00 0.00 Manager, Economic Devlpmt & Redevlpmt 1.00 1.00 1.00 1.00 1.00 0.00 Manager, Planning 2.00 2.00 2.00 2.00 2.00 0.00 Managing Arborist 0.00 0.00 0.00 0.00 0.00 0.00 Permit Specialist 1.00 0.00 0.00 0.00 0.00 0.00 Planner (8)6.00 6.05 6.05 6.05 5.75 (0.30) Plan Checking Engineer 3.00 2.00 2.00 2.00 2.00 0.00 Project Engineer 1.00 1.00 1.00 1.00 1.00 0.00 Senior Planner (9)6.00 6.00 6.00 6.00 5.00 (1.00) Supervisor, Building Inspection 1.00 1.00 1.00 1.00 1.00 0.00 Transportation Manager (2)1.00 1.00 1.00 1.00 0.00 (1.00) Transportation Project Manager 0.00 0.00 0.00 0.00 0.00 0.00 Total Planning and Community Environment 53.30 48.85 48.85 48.85 44.60 (4.25) Police Department Administrative Assistant 1.00 1.00 1.00 1.00 1.00 0.00 Administrative Associate II 3.00 3.00 3.00 3.00 3.00 0.00 Animal Attendant 0.00 0.00 0.00 0.00 0.00 0.00 Animal Control Officer 4.50 4.50 4.50 4.50 4.50 0.00 City of Palo Alto Operating Budget FY 2011 18 EXHIBIT C Table of Organization FY 2009 Actual FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted-in- Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change Animal Services Specialist 1.00 1.00 1.00 1.00 1.00 0.00 Animal Services Specialist II 1.00 1.00 1.00 1.00 1.00 0.00 Assistant Chief of Police 1.00 1.00 1.00 1.00 1.00 0.00 Business Analyst 1.00 1.00 1.00 1.00 1.00 0.00 Chief Communications Technician 0.00 0.00 0.00 0.00 0.00 0.00 Code Enforcement Officer (9)1.50 1.50 1.50 1.50 1.00 (0.50) Communication Technician 1.00 1.00 1.00 1.00 1.00 0.00 Community Service Officer 9.00 9.00 9.00 9.00 9.00 0.00 Community Service Officer - Lead 0.00 0.00 0.00 0.00 0.00 0.00 Court Liaison Officer 1.00 1.00 1.00 1.00 1.00 0.00 Crime Analyst (9)1.00 2.00 2.00 2.00 1.00 (1.00) Deputy Director Technical Services (24)1.00 1.00 1.00 1.00 1.00 0.00 Parking Enforcement Officer 0.00 0.00 0.00 0.00 0.00 0.00 Parking Enforcement Officer - Lead 0.00 0.00 0.00 0.00 0.00 0.00 Police Agent (9)19.00 19.00 19.00 19.00 19.00 0.00 Police Captain 2.00 2.00 2.00 2.00 2.00 0.00 Police Chief 1.00 1.00 1.00 1.00 1.00 0.00 Police Lieutenant 5.00 5.00 5.00 5.00 5.00 0.00 Police Officer (9)51.00 50.00 50.00 50.00 49.00 (1.00) Police Officer Training 0.00 0.00 0.00 0.00 0.00 0.00 Police Records Specialist I 0.00 0.00 0.00 0.00 0.00 0.00 Police Records Specialist II (9)9.00 7.00 7.00 7.00 6.00 (1.00) Police Records Specialist - Lead 1.00 1.00 1.00 1.00 1.00 0.00 Police Sergeant 14.00 14.00 14.00 14.00 14.00 0.00 Police Trainee 0.00 0.00 0.00 0.00 0.00 0.00 Program Assistant I 1.00 0.00 0.00 0.00 0.00 0.00 Program Assistant II 1.00 1.00 1.00 1.00 1.00 0.00 Program Coordinator (9)0.00 1.00 1.00 1.00 0.00 (1.00) Property and Evidence Technician 2.00 2.00 2.00 2.00 2.00 0.00 Public Safety Dispatcher I 2.00 2.00 2.00 2.00 2.00 0.00 Public Safety Dispatcher II 14.00 14.00 14.00 14.00 14.00 0.00 Public Safety Dispatcher - Lead 5.00 5.00 5.00 5.00 5.00 0.00 Safety Officer 0.00 0.00 0.00 0.00 0.00 0.00 Senior Management Analyst (19)1.00 1.00 1.00 1.00 1.00 0.00 Superintendent, Animal Services 1.00 1.00 1.00 1.00 1.00 0.00 Supervisor, Animal Services 1.00 1.00 1.00 1.00 1.00 0.00 Supervisor, Police Services 3.00 3.00 3.00 3.00 3.00 0.00 Veterinarian 1.00 1.00 1.00 1.00 1.00 0.00 Veterinarian Technician 2.00 2.00 2.00 2.00 2.00 0.00 Volunteer Coordinator 1.00 0.50 0.50 0.50 0.50 0.00 Total Police 164.00 161.50 161.50 161.50 157.00 (4.50) Public Works Department Accounting Specialist 0.00 0.04 0.04 0.04 0.04 0.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 0.00 City of Palo Alto Operating Budget FY 2011 19 EXHIBIT C Table of Organization FY 2009 Actual FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted-in- Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change Administrative Associate I 3.50 1.70 1.70 1.70 1.70 0.00 Administrative Associate II 2.00 1.80 1.80 1.80 1.80 0.00 Administrative Associate III 1.00 0.00 0.00 0.00 0.00 0.00 Assistant Director Public Works 1.10 1.10 1.10 1.10 1.10 0.00 Associate Engineer 0.10 0.10 0.10 0.10 0.10 0.00 Building Serviceperson (9)4.00 4.00 4.00 4.00 1.00 (3.00) Building Serviceperson - Lead 2.00 2.00 2.00 2.00 2.00 0.00 Coordinator, Public Works Projects 0.00 0.00 0.00 0.00 0.00 0.00 Deputy Director, Public Works Operations 0.00 0.00 0.00 0.00 0.00 0.00 Director, Public Works/City Engineer 1.00 1.00 1.00 1.00 1.00 0.00 Electrician 1.00 1.00 1.00 1.00 1.00 0.00 Engineer 1.20 0.30 0.30 0.30 0.30 0.00 Engineering Technician III 4.20 3.30 3.30 3.30 3.30 0.00 Equipment Operator 3.46 3.46 3.46 3.46 3.46 0.00 Equipment Parts Technician 0.00 0.00 0.00 0.00 0.00 0.00 Facilities Assistant 0.00 0.00 0.00 0.00 0.00 0.00 Facilities Carpenter 1.00 1.00 1.00 1.00 1.00 0.00 Facilities Electrician 0.00 0.00 0.00 0.00 0.00 0.00 Facilities Maintenance - Lead 2.00 2.00 2.00 2.00 2.00 0.00 Facilities Mechanic 6.00 6.00 6.00 6.00 6.00 0.00 Facilities Painter 2.00 2.00 2.00 2.00 2.00 0.00 Heavy Equipment Operator 1.90 1.90 1.90 1.90 1.90 0.00 Heavy Equipment Operator - Lead 0.85 0.85 0.85 0.85 0.85 0.00 Inspector, Field Services 1.00 1.00 1.00 1.00 1.00 0.00 Instrument Electrician 0.00 0.00 0.00 0.00 0.00 0.00 Management Analyst (27)1.00 0.00 0.00 0.00 0.00 0.00 Manager, Facilities Maintenance 0.80 0.80 0.80 0.80 0.80 0.00 Manager, Maintenance Operations 0.12 0.12 0.12 0.12 0.12 0.00 Managing Arborist 1.00 1.00 1.00 1.00 1.00 0.00 Project Engineer 0.20 0.20 0.20 0.20 0.20 0.00 Project Manager 1.75 1.75 1.75 1.75 1.75 0.00 Senior Accountant 0.00 0.02 0.02 0.02 0.02 0.00 Senior Engineer (13)0.30 0.30 0.30 0.30 0.20 (0.10) Senior Financial Analyst 0.00 0.16 0.16 0.16 0.16 0.00 Senior Management Analyst (19)0.90 0.90 0.90 0.90 0.90 0.00 Senior Project Manager 1.00 1.00 1.00 1.00 1.00 0.00 Staff Accountant 0.00 0.02 0.02 0.02 0.02 0.00 Superintendent, Public Works Operations 0.60 0.60 0.60 0.60 0.60 0.00 Supervising Project Engineer (9)1.00 1.00 1.00 1.00 0.00 (1.00) Supervisor, Building Services 0.00 0.00 0.00 0.00 0.00 0.00 Supervisor, Facilities Management 1.95 1.95 1.95 1.95 1.95 0.00 Supervisor, Inspec/Surveying, Public Works 0.80 0.80 0.80 0.80 0.80 0.00 Surveying Assistant 0.78 0.78 0.78 0.78 0.78 0.00 Surveyor, Public Works 0.78 0.78 0.78 0.78 0.78 0.00 Traffic Control Maintainer - Lead 1.00 1.00 1.00 1.00 1.00 0.00 City of Palo Alto Operating Budget FY 2011 20 EXHIBIT C Table of Organization FY 2009 Actual FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted-in- Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change Traffic Control Maintenance I 1.94 1.94 1.94 1.94 1.94 0.00 Traffic Control Maintenance II (9)3.00 3.00 3.00 3.00 2.00 (1.00) Tree Maintenance Assistant 0.00 0.00 0.00 0.00 0.00 0.00 Tree Maintenance Person 2.00 2.00 0.00 0.00 0.00 0.00 Tree Maintenance Specialist 0.00 0.00 2.00 2.00 2.00 0.00 Tree Trimmer/Line Clearer 7.00 7.00 7.00 7.00 7.00 0.00 Tree Trimmer/Line Clearer Assistant 0.00 0.00 0.00 0.00 0.00 0.00 Tree Trimmer/Line Clearer - Lead 1.00 1.00 1.00 1.00 1.00 0.00 Total Public Works 69.23 63.67 63.67 63.67 58.57 (5.10) GENERAL FUND AUTHORIZED POSITIONS 651.27 622.51 622.51 622.51 579.50 (43.01) Footnotes: 1 Add 0.50 FTE Administrator 2 Drop 1.0 FTE Transportation Manager and add 1.0 FTE Chief Transportation Official 3 Reallocate 0.60 FTE Contracts Administrator to Other Funds - Capital 4 Reallocate 0.50 FTE Senior Financial Analyst to Utilities 5 Reallocate 0.60 FTE Senior Financial Analyst to Other Funds - Capital 6 Reallocate 0.50 FTE Warehouse Supervisor to Utilities 7 8 Reallocate 0.30 FTE Planner to Utilities 9 Elimination of various positions due to budget constraints 10 Reallocate 1.0 FTE Senior Deputy City Attorney to Utilities 11 Transfer 0.10 FTE Business Analyst to Technology Fund 12 Transfer 0.20 FTE Senior Business Analyst to Technology Fund 13 Transfer 0.10 FTE Senior Engineer to Public Works - Enterprise Fund 14 15 Title change from Legal Administrator to Legal Services Administrator 16 Title change from Auditor to Performance Auditor 17 Title change from Senior Auditor to Senior Performance Auditor 18 Title change from Public Communication Manager to Communications Manager 19 Title change from Senior Administrator to Senior Management Analyst 20 21 22 Title change from Deputy Fire Chief EMT to Deputy Fire Chief 23 Title change from Supervisor, Librarian to Library Services Manager 24 25 Title change from Parking Examiner to Hearing Officer 26 27 Title change from Administrator, Public Works to Management Analyst Reallocate 0.05 FTE Assistant to City Manager to Planning and Community Environment, 0.10 FTE to Public Works - Enterprise and 0.35 FTE to Utilities Reclassification of 2.0 FTE Supervisor, Recreation Programs to Senior Supervisor, Recreation Programs Title change from Coordinator, Police Technical Services to Deputy Director Technical Services Division Title change from Superintendent, Golf Course to Community Services Superintendent Title change from Supervisor, Junior Museum to Community Services Senior Program Title change from Administrator, Human Resources to Senior Human Resources Administrator City of Palo Alto Operating Budget FY 2011 21 EXHIBIT C Table of Organization FY 2009 Actual FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted-in- Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change 28 Title change from Staff Accountant to Accountant ENTERPRISE FUNDS Public Works Department Refuse, Storm Drainage and Wastewater Treatment Accountant (25)0.00 0.23 0.23 0.23 0.23 0.00 Accounting Specialist 0.00 0.46 0.46 0.46 0.46 0.00 Administrator, Refuse 1.00 1.00 1.00 1.00 1.00 0.00 Assistant Director, Public Works 0.75 0.75 0.75 0.75 0.75 0.00 Assistant to City Manager (13)0.00 0.00 0.00 0.00 0.10 0.10 Administrative Associate II 3.00 3.20 3.20 3.20 3.20 0.00 Asst Manager, Water Quality Control Plant 1.00 1.00 1.00 1.00 1.00 0.00 Associate Engineer 3.30 3.30 3.30 3.30 3.30 0.00 Associate Planner 1.00 1.00 1.00 1.00 1.00 0.00 Business Analyst 1.13 1.13 1.13 1.13 1.13 0.00 Buyer 1.00 1.00 1.00 1.00 1.00 0.00 Chemist 3.00 3.00 3.00 3.00 3.00 0.00 Coordinator Environmental Protection 0.00 0.00 0.00 0.00 0.00 0.00 Coordinator Recycling 0.00 0.00 0.00 0.00 0.00 0.00 Coordinator Zero Waste 2.00 2.00 2.00 2.00 2.00 0.00 Deputy Fire Chief/Fire Marshal 0.08 0.08 0.08 0.08 0.08 0.00 Electrician 3.00 3.00 3.00 3.00 3.00 0.00 Electrician - Lead 2.00 2.00 2.00 2.00 2.00 0.00 Engineer 1.10 1.00 1.00 1.00 1.00 0.00 Engineering Technician I 1.00 0.00 0.00 0.00 0.00 0.00 Engineering Technician III 1.50 1.40 1.40 1.40 1.40 0.00 Environmental Specialist 2.00 2.00 2.00 2.00 2.00 0.00 Equipment Operator 0.54 0.54 0.54 0.54 0.54 0.00 Executive Assistant 2.00 2.00 2.00 2.00 2.00 0.00 Hazardous Materials Inspector 0.04 0.04 0.04 0.04 0.04 0.00 Hazardous Materials Specialist (19)0.02 0.02 0.02 0.02 0.00 (0.02) Heavy Equipment Operator 5.90 5.90 5.90 5.90 5.90 0.00 Heavy Equipment Operator - Lead 3.15 3.15 3.15 3.15 3.15 0.00 Industrial Waste Assistant Inspector 0.00 1.00 1.00 1.00 1.00 0.00 Industrial Waste Inspector 1.00 1.00 1.00 1.00 1.00 0.00 Industrial Waste Investigator 2.00 2.00 2.00 2.00 2.00 0.00 Laboratory Tech, Water Quality Control Plant 2.50 2.50 2.50 2.50 2.50 0.00 Landfill Technician 1.00 1.00 1.00 1.00 1.00 0.00 Maintenance Mechanic 7.00 7.00 7.00 7.00 7.00 0.00 Manager, Environmental Compliance 1.00 1.00 1.00 1.00 1.00 0.00 Manager, Environmental Control Program 3.00 3.00 3.00 3.00 3.00 0.00 Manager, Laboratory Services 1.00 1.00 1.00 1.00 1.00 0.00 Manager, Maintenance Operations 1.38 1.38 1.38 1.38 1.38 0.00 Manager, Solid Waste 1.00 1.00 1.00 1.00 1.00 0.00 City of Palo Alto Operating Budget FY 2011 22 EXHIBIT C Table of Organization FY 2009 Actual FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted-in- Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change Manager, Water Quality Control Plant 1.00 1.00 1.00 1.00 1.00 0.00 Program Assistant I 2.00 2.00 2.00 2.00 2.00 0.00 Program Assistant II 1.00 1.00 1.00 1.00 1.00 0.00 Program Analyst 0.00 0.00 0.00 0.00 0.00 0.00 Project Engineer 2.00 2.00 2.00 2.00 2.00 0.00 Refuse Disposal Attendant 4.00 4.00 4.00 4.00 4.00 0.00 Senior Accountant 0.00 0.23 0.23 0.23 0.23 0.00 Senior Chemist 1.00 1.00 1.00 1.00 1.00 0.00 Senior Engineer (20)2.45 2.45 2.45 2.45 2.75 0.30 Senior Financial Analyst 0.00 0.16 0.16 0.16 0.16 0.00 Senior Industrial Waste Inspector 0.00 0.00 0.00 0.00 0.00 0.00 Senior Management Analyst (21)0.10 0.10 0.10 0.10 0.10 0.00 Senior Mechanic, Water Quality Control 1.00 1.00 1.00 1.00 1.00 0.00 Senior Operator, Water Quality Control 6.00 6.00 6.00 6.00 6.00 0.00 Senior Technologist 0.13 0.13 0.13 0.13 0.13 0.00 Storekeeper 1.00 1.00 1.00 1.00 1.00 0.00 Street Maintenance Assistant 2.00 2.00 2.00 2.00 2.00 0.00 Street Sweeper Operator 7.00 7.00 7.00 7.00 7.00 0.00 Street Sweeper Operator - Lead 0.00 0.00 0.00 0.00 0.00 0.00 Superintendent, Public Works Operations 0.20 0.20 0.20 0.20 0.20 0.00 Supervisor, Public Works 1.00 1.00 1.00 1.00 1.00 0.00 Supervisor, Water Quality Control Operations 5.00 5.00 5.00 5.00 5.00 0.00 Surveying Assistant 0.11 0.11 0.11 0.11 0.11 0.00 Surveyor, Public Works 0.11 0.11 0.11 0.11 0.11 0.00 Technologist 0.00 0.00 0.00 0.00 0.00 0.00 Traffic Control Maintenance I 0.06 0.06 0.06 0.06 0.06 0.00 Truck Driver 0.00 0.00 0.00 0.00 0.00 0.00 Water Quality Control Plant Operator I 0.00 0.00 0.00 0.00 0.00 0.00 Water Quality Control Plant Operator II 16.00 16.00 16.00 16.00 16.00 0.00 Water Quality Control Plant Operator Trainee 0.00 0.00 0.00 0.00 0.00 0.00 Total Public Works - Enterprise 113.55 114.63 114.63 114.63 115.01 0.38 Utilities Department Administration, Electric, Gas, Wastewater Collection and Water Account Representatives 3.00 3.00 3.00 3.00 3.00 0.00 Accountant (25)0.00 0.75 0.75 0.75 0.75 0.00 Accounting Specialist 1.00 2.50 2.50 2.50 2.50 0.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 0.00 Administrative Associate I 2.00 2.00 2.00 2.00 2.00 0.00 Administrative Associate II 7.00 7.00 7.00 7.00 7.00 0.00 Assistant Power Engineer 0.00 0.00 0.00 0.00 0.00 0.00 Assistant Resource Planner 0.00 0.00 0.00 0.00 0.00 0.00 Associate Power Engineer 0.00 0.00 0.00 0.00 0.00 0.00 Associate Resource Planner (7)1.00 1.00 1.00 1.00 0.00 (1.00) Assistant Director Customer Support Services 1.00 1.00 1.00 1.00 1.00 0.00 City of Palo Alto Operating Budget FY 2011 23 EXHIBIT C Table of Organization FY 2009 Actual FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted-in- Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change Assistant Director Utilities/Admin Svc 0.00 0.00 0.00 0.00 0.00 0.00 Assistant Director Utilities/Engineering 1.00 1.00 1.00 1.00 1.00 0.00 Assistant Director Utilities/Operations 1.00 1.00 1.00 1.00 1.00 0.00 Assistant Director Utilities/Res Mgmt 1.00 1.00 1.00 1.00 1.00 0.00 Assistant to City Manager (13)0.00 0.00 0.00 0.00 0.35 0.35 Business Analyst 2.87 2.87 2.87 2.87 2.87 0.00 Cathodic Technician 1.00 1.00 1.00 1.00 1.00 0.00 Cathodic Protection Technician/Assistant 0.00 0.00 1.00 0.00 1.00 0.00 Cement Finisher 1.00 1.00 1.00 1.00 1.00 0.00 Chief Electric Underground Inspector 0.00 0.00 0.00 0.00 0.00 0.00 Chief Inspector Water, Gas, Wastewater 0.00 0.00 0.00 0.00 0.00 0.00 Communications Manager (4)0.00 0.00 0.00 0.00 1.00 1.00 Contracts Administrator 1.00 1.00 1.00 1.00 1.00 0.00 Coordinator, Utility Safety & Security 1.00 1.00 1.00 1.00 1.00 0.00 Coordinator, Utility Projects 4.00 4.00 4.00 4.00 4.00 0.00 Customer Service Representative (2)5.00 5.00 5.00 5.00 5.00 0.00 Customer Service Specialist (3)2.00 2.00 2.00 2.00 2.00 0.00 Customer Service Specialist - Lead 1.00 2.00 2.00 2.00 2.00 0.00 Deputy Director, Administrative Services 0.20 0.20 0.20 0.20 0.20 0.00 Deputy Fire Chief/Fire Marshal 0.08 0.08 0.08 0.08 0.08 0.00 Director, Administrative Services 0.15 0.15 0.15 0.15 0.15 0.00 Director, Utilities 1.00 1.00 1.00 1.00 1.00 0.00 Electric Project Engineer (10)1.00 1.00 1.00 1.00 2.00 1.00 Electric Underground Inspector 2.00 2.00 2.00 2.00 2.00 0.00 Electric Underground Inspector Lead 1.00 1.00 1.00 1.00 1.00 0.00 Electrical Assistant I 5.00 5.00 5.00 5.00 5.00 0.00 Electrician 14.00 14.00 14.00 14.00 14.00 0.00 Electrician - Apprentice 0.00 0.00 0.00 0.00 0.00 0.00 Electrician - Lead 6.00 6.00 6.00 6.00 6.00 0.00 Engineer 4.00 4.00 4.00 4.00 4.00 0.00 Engineering Manager, Electric 1.00 1.00 1.00 1.00 1.00 0.00 Engineering Mgr, Water, Gas, Wastewater 1.00 1.00 1.00 1.00 1.00 0.00 Engineering Technician III 3.00 3.00 3.00 3.00 3.00 0.00 Equipment Operator 2.00 1.00 1.00 1.00 1.00 0.00 Equipment Operator - Lead 0.00 0.00 0.00 0.00 0.00 0.00 Field Service Person Water, Gas, Wastewater 0.00 0.00 0.00 0.00 0.00 0.00 Gas System Technician (9)2.00 0.00 1.00 1.00 2.00 1.00 Gas System Technician II 0.00 0.00 1.00 0.00 1.00 0.00 Hazardous Materials Inspector 0.06 0.06 0.06 0.06 0.06 0.00 Hazardous Materials Specialist (19)0.03 0.03 0.03 0.03 0.00 (0.03) Heavy Equipment Operator (8)10.00 10.00 10.00 10.00 9.00 (1.00) Inspector, Field Services 4.00 4.00 4.00 4.00 4.00 0.00 Lineperson/Cable Splicer 11.00 11.00 11.00 11.00 11.00 0.00 Lineperson/Cable Splicer - Apprentice 0.00 0.00 0.00 0.00 0.00 0.00 Lineperson/Cable Splicer - Lead 4.00 4.00 4.00 4.00 4.00 0.00 City of Palo Alto Operating Budget FY 2011 24 EXHIBIT C Table of Organization FY 2009 Actual FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted-in- Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change Lineperson/Cable Splicer - Lead Trainee 0.00 0.00 0.00 0.00 0.00 0.00 Lineperson/Cable Splicer - Trainee 0.00 0.00 0.00 0.00 0.00 0.00 Maintenance Mechanic 1.00 1.00 1.00 1.00 1.00 0.00 Maintenance Mechanic - Welding 1.00 1.00 1.00 1.00 1.00 0.00 Manager Utilities Telecommunication 1.00 1.00 1.00 1.00 1.00 0.00 Manager, Electric Operations 1.00 1.00 1.00 1.00 1.00 0.00 Manager, Energy Risk 1.00 1.00 1.00 1.00 1.00 0.00 Manager, Field and Customer Service 1.00 0.00 0.00 0.00 0.00 0.00 Mgr, Customer Svc and Meter Reading 0.00 1.00 1.00 1.00 1.00 0.00 Manager, Utilities Marketing Services 1.00 1.00 1.00 1.00 1.00 0.00 Mgr, Util Operations Water, Gas, Wastewater 1.00 1.00 1.00 1.00 1.00 0.00 Manager, Utilities Rates 0.00 0.00 0.00 0.00 0.00 0.00 Marketing Engineer 1.00 1.00 1.00 1.00 1.00 0.00 Meter Reader 6.00 6.00 6.00 6.00 6.00 0.00 Meter Reader - Lead 1.00 1.00 1.00 1.00 1.00 0.00 Meter Shops Lead (9)0.00 1.00 1.00 1.00 0.00 (1.00) Offset Equipment Operator (14)0.00 0.00 0.00 0.00 0.48 0.48 Planner (15)0.00 0.00 0.00 0.00 0.30 0.30 Power Engineer (12)2.00 2.00 2.00 2.00 3.00 1.00 Program Assistant I 3.00 3.00 3.00 3.00 3.00 0.00 Project Engineer (10)6.00 6.00 6.00 6.00 5.00 (1.00) Project Manager 0.75 0.75 0.75 0.75 0.75 0.00 Resource Planner (7)4.00 4.00 4.00 4.00 5.00 1.00 Restoration Lead 0.00 1.00 1.00 1.00 1.00 0.00 Senior Accountant 0.00 0.75 0.75 0.75 0.75 0.00 Senior Business Analyst (5)1.00 1.00 1.00 1.00 2.00 1.00 Senior Deputy City Attorney (17)0.00 0.00 0.00 0.00 1.00 1.00 Senior Electrical Engineer (22)4.00 4.00 4.00 4.00 4.00 0.00 Senior Financial Analyst (16)0.00 0.60 0.60 0.60 1.10 0.50 Senior Instrument Electrician 0.00 0.00 0.00 0.00 0.00 0.00 Senior Management Analyst (21)1.00 1.00 1.00 1.00 1.00 0.00 Senior Market Analyst 1.00 1.00 1.00 1.00 1.00 0.00 Senior Mechanic 1.00 1.00 1.00 1.00 1.00 0.00 Senior Performance Auditor (23)0.00 0.00 0.00 0.00 1.00 1.00 Senior Project Engineer 4.00 4.00 4.00 4.00 4.00 0.00 Senior Resource Originator (26)1.00 1.00 1.00 1.00 0.00 (1.00) Senior Resource Planner (26)6.00 6.00 6.00 6.00 7.00 1.00 Senior Technologist 0.87 0.87 0.87 0.87 0.87 0.00 Senior Utilities Field Services Representative 1.00 1.00 1.00 1.00 1.00 0.00 Senior Utility System Technician 0.00 0.00 0.00 0.00 0.00 0.00 Senior Water System Operator 2.00 2.00 2.00 2.00 2.00 0.00 Storekeeper 2.00 2.00 2.00 2.00 2.00 0.00 Supervising Electric Operations & Programs 0.00 0.00 0.00 0.00 0.00 0.00 Supervising Electric Project Engineer (11)2.00 2.00 2.00 2.00 1.00 (1.00) Supervising Project Engineer (11)0.00 0.00 0.00 0.00 1.00 1.00 City of Palo Alto Operating Budget FY 2011 25 EXHIBIT C Table of Organization FY 2009 Actual FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted-in- Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change Supervisor, Utility Construction Inspector 0.00 0.00 0.00 0.00 0.00 0.00 Supervisor, Util Meter Readers & Field Service 0.00 0.00 0.00 0.00 0.00 0.00 Supervisor, Water, Gas, Wastewater 5.00 5.00 5.00 5.00 5.00 0.00 Supervisor, Water Transmission 1.00 1.00 1.00 1.00 1.00 0.00 System Operator Scheduler 0.00 0.00 0.00 0.00 0.00 0.00 Technologist 0.00 0.00 0.00 0.00 0.00 0.00 Tree Maintenance Person 1.00 0.00 0.00 1.00 0.00 0.00 Tree Maintenance Specialist 0.00 0.00 1.00 0.00 1.00 0.00 Utilities Accounting Technician 0.00 0.00 0.00 0.00 0.00 0.00 Utilities Compliance Manager (1)0.00 0.00 0.00 0.00 1.00 1.00 Utilities Credit/Collection Specialist 1.00 1.00 1.00 1.00 1.00 0.00 Utilities Engineer Estimator 5.00 5.00 5.00 5.00 5.00 0.00 Utilities Engineer Estimator - Lead (12)1.00 1.00 1.00 1.00 0.00 (1.00) Utilities Field Service Representative 7.00 6.00 5.00 6.00 5.00 0.00 Utilities Installer/Repairer (6)11.00 11.00 11.00 11.00 13.00 2.00 Utilities Installer/Repairer Assistant 1.00 1.00 1.00 1.00 1.00 0.00 Utilities Installer/Repairer - Welding 3.00 3.00 3.00 3.00 3.00 0.00 Utilities Installer/Repairer - Lead 5.00 5.00 5.00 5.00 5.00 0.00 Utilities Installer/Repairer - Lead Welding 2.00 2.00 2.00 2.00 2.00 0.00 Utilities Key Account Representative 3.00 3.00 3.00 3.00 3.00 0.00 Utilities Locator 3.00 3.00 3.00 3.00 3.00 0.00 Utilities Rate Analyst 0.00 0.00 0.00 0.00 0.00 0.00 Utilities Supervisor (24)5.00 5.00 5.00 5.00 5.00 0.00 Utilities System Operator 5.00 5.00 5.00 5.00 5.00 0.00 Utility Compliance Technician 2.00 2.00 2.00 2.00 2.00 0.00 Utility Compliance Technician - Lead 1.00 1.00 1.00 1.00 1.00 0.00 Utility Market Analyst 0.00 0.00 0.00 0.00 0.00 0.00 Utility System Technician 0.00 0.00 0.00 0.00 0.00 0.00 Warehouse Supervisor (18)0.00 0.00 0.00 0.00 0.50 0.50 Water Meter/Cross Connection Technician (8)2.00 2.00 2.00 2.00 3.00 1.00 Water Meter Representative Assistant 0.00 0.00 0.00 0.00 0.00 0.00 Water Meter Repairer 0.00 0.00 0.00 0.00 0.00 0.00 Water System Operator I 0.00 0.00 0.00 0.00 0.00 0.00 Water System Operator II 5.00 5.00 4.00 5.00 4.00 0.00 Total Utilities 238.01 239.61 241.61 241.61 250.71 9.10 TOTAL ENTERPRISE FUNDS POSITIONS 351.56 354.24 356.24 356.24 365.72 9.48 Footnotes: 1 Add 1.0 FTE Utilities Compliance Manager 2 Add 1.0 FTE Customer Service Representative 3 Add 1.0 FTE Customer Service Specialist 4 Add 1.0 FTE Manager Communications 5 Add 1.0 FTE Senior Business Analyst 6 Add 2.0 FTE Utility Installer/Repairer City of Palo Alto Operating Budget FY 2011 26 EXHIBIT C Table of Organization FY 2009 Actual FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted-in- Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change 7 Reclassification of 1.0 FTE Associate Resource Planner to Resource Planner 8 9 Drop 1.0 FTE Meter Shop Lead and add Gas Systems Technician 10 Drop 1.0 FTE Project Engineer and add Electric Project Engineer 11 12 Drop 1.0 FTE Utilities Engineer Estimator Lead and add Power Engineer 13 14 15 16 17 18 19 Elimination of various positions due to budget constraints 20 21 Title change from Senior Administrator to Senior Management Analyst 22 Title change from Senior Electric Project Engineer to Senior Electrical Engineer 23 Add 1.0 FTE Senior Performance Auditor 24 Title change from Supervisor Electric Systems to Utilities Supervisor 25 Title change from Staff Accountant to Accountant 26 Reclass 1.0 FTE Senior Resource Originator to Senior Resource Planner OTHER FUNDS Printing and Mailing Services Buyer 0.05 0.05 0.05 0.05 0.05 0.00 Mailing Services Specialist (11)1.00 1.00 1.00 1.00 0.00 (1.00) Offset Equipment Operator (3), (11)1.00 1.00 1.00 1.00 1.52 0.52 Offset Equipment Operator - Lead (6)1.00 1.00 1.00 1.00 0.00 (1.00) Supervisor Reproduction and Mailing (6)1.00 1.00 1.00 1.00 0.00 (1.00) Total Printing and Mailing Services 4.05 4.05 4.05 4.05 1.57 (2.48) Technology Administrative Assistant 0.07 0.07 0.07 0.07 0.07 0.00 Administrative Associate II 1.00 1.00 1.00 1.00 1.00 0.00 Administrative Associate III (6)0.04 0.04 0.04 0.04 0.00 (0.04) Administrator (1)0.00 0.00 0.00 0.00 0.50 0.50 Assistant Director, Administrative Services 0.40 0.40 0.40 0.40 0.40 0.00 Transfer 0.10 FTE Assistant to City Manager from City Manager Office - General Fund to Public Works - Enterprise and 0.35 FTE to Utilities Transfer 0.20 FTE Senior Engineer from Other Funds - Capital and 0.10 from Public Works - General Fund to Public Works - Enterprise Drop 1.0 FTE Heavy Equipment Operator and add Water Meter/Cross Connection Technician Drop 1.0 FTE Supervising Electric Project Engineer and add Supervising Project Engineer Transfer 0.50 FTE Warehouse Supervisor from Administrative Services - General Fund to Utilities Transfer 0.48 FTE Offset Equipment Operator from Print & Mailing Services - Other Fund to Utilities Transfer 0.30 FTE Planner from Planning and Community Environment - General Fund to Utilities Transfer 0.50 FTE Senior Financial Analyst from Administrative Services - General Fund to Utilities Transfer 1.0 FTE Senior Deputy City Attorney from City Attorney's Office - General Fund to Utilities City of Palo Alto Operating Budget FY 2011 27 EXHIBIT C Table of Organization FY 2009 Actual FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted-in- Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change Business Analyst (7)0.90 0.90 0.90 0.90 1.00 0.10 Chief Information Officer 1.00 1.00 1.00 1.00 1.00 0.00 Desktop Technician 5.00 5.00 5.00 5.00 5.00 0.00 Director, Administrative Services 0.35 0.35 0.35 0.35 0.35 0.00 Manager, Information Technology 3.00 3.00 3.00 3.00 3.00 0.00 Senior Business Analyst (8)1.80 1.80 1.80 1.80 2.00 0.20 Senior Technologist 13.00 13.00 13.00 13.00 13.00 0.00 Senior Financial Analyst 0.09 0.09 0.09 0.09 0.09 0.00 Technologist (6)4.00 4.00 4.00 4.00 3.00 (1.00) Total Technology 30.65 30.65 30.65 30.65 30.41 (0.24) Equipment Management Administrative Associate III 1.00 1.00 1.00 1.00 1.00 0.00 Assistant Fleet Manager 1.00 1.00 1.00 1.00 1.00 0.00 Equipment Maintenance Service Person 2.00 2.00 2.00 2.00 2.00 0.00 Fleet Manager 1.00 1.00 1.00 1.00 1.00 0.00 Fleet Services Coordinator 2.00 2.00 2.00 2.00 2.00 0.00 Mobile Service Technician 1.00 1.00 1.00 1.00 1.00 0.00 Motor Equipment Mechanic I 0.00 0.00 0.00 0.00 0.00 0.00 Motor Equipment Mechanic II 7.00 7.00 7.00 7.00 7.00 0.00 Motor Equipment Mechanic - Lead 0.00 0.00 0.00 0.00 0.00 0.00 Project Engineer 0.10 0.00 0.00 0.00 0.00 0.00 Senior Engineer 0.10 0.00 0.00 0.00 0.00 0.00 Senior Financial Analyst 0.00 0.08 0.08 0.08 0.08 0.00 Senior Fleet Services Coordinator 1.00 1.00 1.00 1.00 1.00 0.00 Total Equipment Management 16.20 16.08 16.08 16.08 16.08 0.00 Special Revenue Accounting Specialist (2)0.00 0.00 0.00 0.00 0.50 0.50 Administrative Associate II 0.20 0.20 0.20 0.20 0.20 0.00 CDBG Coordinator 0.00 0.00 0.00 0.00 0.00 0.00 Planner 1.00 0.95 0.95 0.95 0.95 0.00 Total Special Revenue 1.20 1.15 1.15 1.15 1.65 0.50 Capital Administrative Associate I (6)0.00 1.80 1.80 1.80 0.80 (1.00) Administrative Associate III 0.00 1.00 1.00 1.00 1.00 0.00 Assistant Director, Public Works 0.15 0.15 0.15 0.15 0.15 0.00 Associate Engineer 0.60 0.60 0.60 0.60 0.60 0.00 Cement Finisher 3.00 3.00 3.00 3.00 3.00 0.00 Cement Finisher - Lead 1.00 1.00 1.00 1.00 1.00 0.00 Contracts Administrator (4)0.00 0.00 0.00 0.00 0.60 0.60 Engineer 2.70 2.70 2.70 2.70 2.70 0.00 Engineering Technician III 2.30 2.30 2.30 2.30 2.30 0.00 City of Palo Alto Operating Budget FY 2011 28 EXHIBIT C Table of Organization FY 2009 Actual FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted-in- Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change Heavy Equipment Operator 0.20 0.20 0.20 0.20 0.20 0.00 Management Analyst (10)0.00 1.00 1.00 1.00 1.00 0.00 Manager, Facilities Maintenance 0.20 0.20 0.20 0.20 0.20 0.00 Manager, Maintenance Operations 0.50 0.50 0.50 0.50 0.50 0.00 Landscape Architect Park Planner 1.00 1.00 1.00 1.00 1.00 0.00 Program Assistant I 1.00 1.00 1.00 1.00 1.00 0.00 Project Engineer 3.70 3.80 3.80 3.80 3.80 0.00 Project Manager (6)1.50 1.50 1.50 1.50 0.50 (1.00) Senior Engineer (9)2.15 2.25 2.25 2.25 2.05 (0.20) Senior Financial Analyst (5)0.00 0.00 0.00 0.00 0.60 0.60 Superintendent, Public Works Operations 0.20 0.20 0.20 0.20 0.20 0.00 Supervisor, Facilities Management 0.05 0.05 0.05 0.05 0.05 0.00 Supervisor, Inspection/Surv Public Works 0.20 0.20 0.20 0.20 0.20 0.00 Surveying Assistant 0.11 0.11 0.11 0.11 0.11 0.00 Surveyor, Public Works 0.11 0.11 0.11 0.11 0.11 0.00 Total Capital 20.67 24.67 24.67 24.67 23.67 (1.00) TOTAL OTHER FUNDS POSITIONS 72.77 76.60 76.60 76.60 73.38 (3.22) Footnotes: 1 Add 0.50 FTE Administrator 2 Add 0.50 FTE Accounting Specialist 3 Transfer 0.48 FTE Offset Equipment Operator to Utilities 4 5 6 Elimination of various positions due to budget constraints 7 8 9 Transfer 0.20 FTE Senior Engineer to Public Works - Enterprise 10 Title change from Administrator, Public Works to Management Analyst 11 Reclass 1.0 FTE Mailing Services Specialist to Offset Equipment Operator TOTAL CITYWIDE POSITIONS 1,075.60 1,053.35 1,055.35 1,055.35 1,018.60 (36.75) Authorization is given to create no more than 7.0 FTE temporary overstrength positions. Overstrength positions are justified by business needs and provide a vacancy to allow for cross training of a critical classification. These interim positions facilitate organizational transitions and succession planning in the cases of long-term disability, retirement, and critical vacancies. This action responds to the City Auditor's recommendation number four in the Audit of Workers Compensation (Issued 04-09-05). Transfer 0.10 FTE Business Analyst from Administrative Services - General Fund to Technology Fund Transfer 0.20 FTE Senior Business Analyst from Administrative Services - General Fund to Technology Fund Transfer 0.60 FTE Contracts Administrator from Administrative Services - General Fund to Capital Transfer 0.60 FTE Senior Financial Analyst from Administrative Services - General Fund to Capital City of Palo Alto Operating Budget FY 2011 29 EXHIBIT C FY 2011 Proposed Municipal Fee Schedule These documents were originally distributed in Council Packet. Printed copies are available upon request for $3 per book. 650-329-2260 Books may be viewed at any City of Palo Alto Library. - or - at the City’s website: www.cityofpaloalto.org/depts/asd/budget.asp Exhibit D 30 Patron Facility Use Fee for Community Theatre Children's Theatre Adults Children's Theatre Children Special Workshops and Presentations (including Children’s Theatre workshop fees) FEE Non-Resident Fee FEE Non-Resident Fee Junior Museum Science Outreach Program $1,000.00- $50,000.00 per program Fee plus 15% $1,000.00- $50,000.00 per program Fee plus up to 50% Junior Museum Science Outreach Unit $50.00 - $1,000.00 per unit Fee plus 15% (if more than 51% of participants are non-residents) $50.00 - $1,000.00 per unit Fee plus up to 50% (if majority of participants are non- residents) Junior Museum and Zoo Group Admission (for organized groups of 15 or more 15 to 25, larger groups shall be subdivided with additional group admission fee) $50.00 - $100.00 Fee plus 15% $50.00 - $100.00 Fee plus up to 50% Junior Museum & Zoo birthday parties $275.00-$500.00 Fee plus 15% $275.00-$500.00 Fee plus up to 50% Children's Theatre birthday parties none none $275.00-$500.00 Fee plus up to 50% Children's Theatre show production participation fee (SUSPENDED ****) none none $50.00-$300.00 Fee plus up to 50% Administrative fee per registration, additional Children's Theatre Enrichment $50.00- $250.00/day $100.00- $500.00/day $50.00- $250.00/day $100.00-$500.00/day Project LOOK! Tours Palo Alto & Ravenswood School Districts, $2.00/student $55.00/group Palo Alto & Ravenswood School Districts, $3.00/student $75.00/group Instructional Classes and camps (see notes*&**) $2.00-$800.00 Fee plus up to 50% $5.00-$800.00 Fee plus up to 50% Drop-in Activities (see notes** & ***) Workshop Supplies Cancellation Charge Locker Rental Up to 100% of fees paid Up to 100% of fees paid $1.00 - $25.00 $1.00-$17.50 $1.00 - $25.00 Arts and Sciences Activities $.50-$50.00$.50-$50.00 Permits Permit to perform in Arts and Sciences sponsored concert series. (Interested parties must apply and be selected by Program Coordinator.) Registrations $5.00-$10.00 $1.00-$1,000.00 $5.00-$2,000.00 Visual and Performing Arts COMMUNITY SERVICES DEPARTMENT Arts and Sciences 2010 FEE 2011 FEE $1.00-$5.00 Admissions $2.00 $3.00-$10.00 $10.00-$20.00 Performing Arts $3.00-$35.00 $1.00 $15.00 - $20.00 per season City of Palo Alto 2011 Proposed Municipal Fee Schedule 4-1 EXHIBIT E 31 COMMUNITY SERVICES DEPARTMENT Arts and Sciences 2010 FEE 2011 FEE Notes **** Pending in-lieu funding agreement with Friends of Palo Alto Children's Theatre. * Art Center Foundation members are eligible for a 20% discount on one (1) Studio class per Foundation membership year ($100.00 and above) to be reimbursed to the City from the Art Center Foundation. ** Effective December 27, 2005, a 25%, 50%, or 75% * A 25% or 50% fee discount through the Fee Reduction Program is may be provided for low-income youth, seniors, and/or disabled adult residents. Income eligibility is determined using the Community Development Block Grant (CDBG) Low-Income Guidelines. The Low-Income Guidelines are established at 80% of the Santa Clara County median income level. The income level for disabled residents is established as 100% of the Santa Clara County Median Income. Each family or individual accepted into the program can access a maximum annual subsidy of $300 for an individual or $300 times each individual family member for a family. (Example: A family of 4 would have a total of $1,200 usable subsidy. 4 Family Members X $300 = $1,200) Each youth, senior, and/or disabled adult accepted into the program may recieve an annual subsidy up to $300. Discount percentage will be based on income level. Discount may not be applied in conjunction with any other discount program. *** For every 10 hours of time purchased in a Visual Arts Studio drop-in program, one hour is given free. The Director of Community Services is authorized to offer promotional fee discounts of up to 25% for purposes of promotion and marketing of programs. Such discounts are intended to maximize revenue and/or participation. City of Palo Alto 2011 Proposed Municipal Fee Schedule 4-2 EXHIBIT E 32 Golf Course-Special Fees * League Reservation Fee Tournament Reservation Fee Back 9 Holes (9-hole rate applies only 1.5 hours after daylight) Daily Fee Senior (non-resident 60 and over) Senior (resident 60 and over) Student (21 and under 18-21) Junior (17 and under) NCGA Jr. Fee (Northern California Golf Association Jr.) Must also be a member of NCGA after 3:00 p.m. (Sept. 1 through Oct. 31) after 1:30 p.m. (Nov. 1 through March 31) after 12:30 p.m. (April 1 through Aug. 31) after 3:00 p.m. (Sept. 1 through Oct. 31) 6:00 p.m. to dark (Nov. 1 through March 31) 3:00 p.m. to dark (April 1 through Aug. 31) 6:00 p.m. to dark Back 9 Holes (rate applies only 1.5 hours after Daylight) Daily Fee Student (21 and under 18-21) Junior (17 and under) NCGA Jr. Fee (Northern California Golf Association Jr.) Must also be a member of NCGA after 4:00 p.m. (Sept. 1 through Oct. 31) after 1:30 p.m. (Nov. 1 through March 31) after 12:30 p.m. (April 1 through Aug. 31) after 3:00 p.m. (Sept. 1 through Oct. 31) 6:00 p.m. to dark (Nov. 1 through March 31) 3:00 p.m. to dark (April 1 through Aug. 31) 6:00 p.m. to dark Resident: $46.00 - $51.00 Non-Res: $48.00 - $53.00 $48.00 - $53.00 Super Twilight $29.00 - $32.00 $29.00 - $32.00 Twilight $32.00 - $35.00 $33.00 - $37.00 Super Twilight $24.00 - $27.00 Twilight $28.00 - $31.00 $28.00 - $31.00 $24.00 - $27.00 $10.00 WEEKEND/PRIME TIME RATES (Daily fees unless otherwise noted): New Years Day, Martin Luther King Jr. Day, President’s Day, Memorial Day, Independence Day, Labor Day, Veteran's Day, Thanksgiving and the day after Thanksgiving, Christmas $26.00 - $29.00 $26.00 - $29.00 $23.00 - $25.00 $26.00 - $29.00 $32.00 - $35.00 $23.00 - $25.00 $37.00 - $39.00 $32.00 - $35.00 Resident: $36.00 - $40.00 Non-Res: $38.00 - $42.00 $26.00 - $29.00 $27.00 - $30.00 $27.00 - $30.00 January 1- December 31, 2010 January 1- December 31, 2011 $250.00-$450.00 per team $250.00 - $450.00 per team $1.00 - $5.00 per player$1.00 - $5.00 per player Green Fee - Admissions WEEKDAYS – (Daily fees unless otherwise noted) COMMUNITY SERVICES DEPARTMENT Golf Services 2010 FEE 2011 FEE $26.00 - $30.00$25.00 - $28.00 $18.00 - $22.00 $10.00 $16.00 - $20.00 City of Palo Alto 2011 Proposed Municipal Fee Schedule 5-1 EXHIBIT E 33 Dance parties* Group rate* Individual entry rate* Special Events* Card replacement fee Resident Admission Daily Non-Resident Admission Daily Resident Admission Daily Non-Resident Admission Daily Youth (17 and under)$2.00-$5.00 $3.00-$6.00 $3.00-$6.00 $4.00-$7.00 Adult (18 and over)$3.00-$5.00 $4.00-$7.00 $4.00-$6.00 $5.00-$8.00 Senior (60 and over) and Senior Lap $2.00-$4.00 $2.00-$4.00 $3.00-$5.00 $3.00-$5.00 Lap Swimming $3.00-$5.00 $3.00-$5.00 $4.00-$6.00 $4.00-$6.00 Youth (17 and under) $20.00-$27.00 Not Applicable Adult (18 and over)$30.00-$40.00 Not Applicable Senior (60 and over)$20.00-$30.00 Not Applicable Non-Resident Non-Resident Fee Fee Youth (17 and under)$2.50 - $5.00 per admission $2.50 - $6.00 per admission Adult (18 and over) $3.00 - $6.00 per admission $3.00 - $7.00 per admission Senior (60 and over)$2.00 - $4.00 per admission $2.00 - $5.00 per admission Youth (17 and under)$10.00-$500.00 $10.00-$500.00 Adult (18 and over) $10.00-$500.00 $10.00-$500.00 Senior (60 and over)$10.00-$500.00 $10.00-$500.00 Youth (17 and under) $10.00-$500.00 $10.00-$500.00 Adult (18 and over) $10.00-$750.00 $10.00-$750.00 Senior (60 and over)$10.00-$750.00 $10.00-$750.00 Family $10.00-$750.00 $10.00-$750.00 Resident Admission Daily Non-Resident Admission Daily Resident Admission Daily Non-Resident Admission Daily Youth (17 and under)$2.00-$5.00 $3.00-$6.00 Adult (18 and over) $3.00-$5.00 $4.00-$7.00 Senior (60 and over) and Senior Lap $2.00-$4.00 $2.00-$4.00 Lap Swimming (18 and over)$3.00-$5.00 $3.00-$5.00 $25.00-$35.00 $18.00-$25.00 Facility Admissions COMMUNITY SERVICES DEPARTMENT Recreation Activities 2010 FEE $5.00-$25.00 2011 FEE Resident Coupon Book-10 tickets (available to Palo Alto Residents only)* January 1 - December 31, 2010 January 1 - December 31, 2011 $.50-$10.00 General Recreation $.50-$10.00 $15.00-$75.00 $15.00-$25.00 See "Swimming Pools" fee above $15.00-$75.00 $5.00-$25.00 $.50-$20.00 $1.00-$5.00 Swimming $1.00-$5.00 $.50-$20.00 Swimming Pools – PAUSD Pool Facilities (Ages 2 and under -- Free) Fee Fee Recreation Activities (Junior Museum related-activity items previously listed below relating to Science program were moved to Arts & Sciences activity fees due to department restructure.) Lap Swim Pass* Rinconada Pool Only Swimming Pools – Rinconada Complex and PAUSD pools when operated by the City – Ages 2 & under -- Free Membership Card / Swim Pass* Rinconada Pool Only Fee replaced by "Membership Card" above Fee replaced by "Membership Card" above Recreation Swim Pass* Rinconada Pool Only City of Palo Alto 2011 Proposed Municipal Fee Schedule 6-1 EXHIBIT E 34 Open Space and Parks Special Use Permit Individual entry rate* Special Events (asterisk removed) Playground Inspection Fee Field Inspector Hourly Fee Vehicle Entry Fee ** Annual Resident Vehicle Entry Pass ** Organic Garden Plots* Senior rate Garden Plot Clean-up/Security Deposit Fee Non-Resident Fee Fee Non-Resident Fee Cancellation Charge Drop-in Activities* Excursion Fee*$2.00-$700.00 $2.00-$750.00 $2.00-$700.00 $2.00-$750.00 Instructional Classes* and Camps*$2.00-$800.00 Fee plus up to 50% $2.00-$800.00 Fee plus up to 50% Interpretive Tours (asterisk removed)$30.00-$100.00/hour $30.00-$120.00/hour $30.00-$100.00/hour $30.00-$120.00/hour Birthday Parties at Foothills Park $106.00-$318.00 Not Available $106.00-$318.00 Not Available ** Fee does not apply to vehicles with valid disabled placard or license plate, vehicles of registered volunteers, City service vehicles, and vehicles of City staff when performing city business. Registrations none $5.00 $40.00 Community Garden $100.00 per garden plot $.36/square foot/year $.40/square foot/year 25% discount 25% discount $.50-$100.00 $.50-$100.00 $150.00/inspection $150.00/inspection $77.00/hour $77.00/hour none $5.00-$25.00 $5.00-$25.00 $300.00-$2,000.00 $300.00-$2,000.00 * Effective December 27, 2005, a 25%, 50%, or 75% * A 25% or 50% fee discount through the Fee Reduction Program is may be provided for low-income youth (17 and under), senior (60 and over), and/or disabled adult residents. Income eligibility is determined using the Community Development Block Grant (CDBG) Low-Income Guidelines. The Low-Income Guidelines are established at 80% of the Santa Clara County median income level. The income level for disabled residents is established as 100% of the Santa Clara County Median Income. Each family or individual accepted into the program can access a maximum annual subsidy of $300 for an individual or $300 times each individual family member for a family. (Example: A family of 4 would have a total of $1,200 usable subsidy. 4 Family Members X $300 = $1,200) Each youth (17 and under), senior (60 and over), and/or disabled adult accepted into the program may recieve an annual subsidy up to $300. Discount percentage will be based on income level. Discount may not be applied in conjunction with any other discount program. Open Space Activities Up to 100% of fees paidUp to 100% of fees paid $.50-$100.00$.50-$100.00 $100.00 per garden plot COMMUNITY SERVICES DEPARTMENT Open Space and Parks 2010 FEE 2011 FEE Facility Admissions General Recreation City of Palo Alto 2011 Proposed Municipal Fee Schedule 7-1 EXHIBIT E 35 PLANNING & COMMUNITY ENVIRONMENT DEPARTMENT Planning 2010 FEE 2011 FEE Commercial and Manufacturing Fence Residential Regular Planned Community Zone Change Minor Change to Planned Community Zone City Council appeals on Architectural Review Board decisions Planning & Transportation Commission Hearing on preliminary parcel map 750 Duplication in fee found under City Clerk page 2-1. Variance   $959.00 plus Other Application Fees on page 17-7. Appeals - Requests for Planning & Transportation Commission and City Council Hearings $1,339.00 plus Legal Fees and Other Application Fees on pages 17-6 and 17-7. Initial deposit of $6,552.00 plus Legal Fees and Other Application Fees on pages 17-6 and 17-7. 100 percent of processing costs will be recovered plus Environmental Impact and any other entitlements necessary to complete the project, whether indicated as 100 percent cost recovery in this schedule or not. Initial deposit of $5,460.00 plus Legal Fees and Other Application Fees on pages 17-6 and 17-7. 100 percent of processing costs will be recovered plus Environmental Impact Assessment and any other entitlements necessary to complete the project, whether indicated as 100 percent cost recovery in this schedule or not. $1,275.00 plus Legal Fees and Other Application Fees on pages 17-6 and 17-7. Initial deposit of $6,240.00 plus Legal Fees and Other Application Fees on pages 17-6 and 17-7. 100 percent of processing costs will be recovered plus Environmental Impact and any other entitlements necessary to complete the project, whether indicated as 100 percent cost recovery in this schedule or not. Initial deposit of $5,200.00 plus Legal Fees and Other Application Fees on pages 17-6 and 17-7. 100 percent of processing costs will be recovered plus Environmental Impact Assessment and any other entitlements necessary to complete the project, whether indicated as 100 percent cost recovery in this schedule or not. $750.00 (Conditional Use Permit/Variances that went through a staff process) $4,751.00 plus Legal Fees and Other Application Fees on pages 17-6 and 17-7 plus Environmental Impact Assessment. Zone Change $1,103.00 plus Other Application Fees on page 17-7. $2,252.00 plus Other Application Fees on page 17-7. $1,958.00 plus Other Application Fees on page 17-7. $4,131.00 plus Legal Fees and Other Application Fees on pages 17-6 and 17-7 plus Environmental Impact Assessment. City of Palo Alto 2011 Proposed Municipal Fee Schedule 17-10 EXHIBIT E 36 Bicycle Locker Rental Refundable Key Deposit Rental Fee Bicycle Training (or other training TBD) California Avenue Parking District All Lots Transferable Permit Lot U (JPB/Caltrain Parking Lot) Lot X (Sheraton Parking Lot) One-Day Parking Permits-California Avenue One-Day Parking Permits-University Avenue Replacement Permit University Avenue Parking District All Lots Transferable Permit 800 High Street Parking Garage Parking Permit Transferable Permit Construction/Maintenance Vehicles Emergency Repair Vehicles Wide Load/Heavy Load Permits Per Vehicle Each Occurrence To site outside City To site within City Valet Parking Permit Application Permit Application Renewal (annual) Short-term Application Fee On-street Parking Space Rental Valet Parking Sign and Curb Markings Traffic Signal Maintenance $535.00 $15.00/day $10.00 $135.00/quarter, $420.00/year $135.00/quarter $43.00/quarter Delete $81.00/year $250.00 $70.00/space per week $900.00 $66.00/space per week $900.00 $250.00 $81.00/year $25.00 $6.00 $15.00-$50.00 per class $25.00 $15.00-$50.00 per class PLANNING & COMMUNITY ENVIRONMENT DEPARTMENT Transportation 2010 FEE 2011 FEE $135.00/quarter Parking Permits – Business Districts $70.00/space per week $43.00/quarter, $123.00/year $26.00/quarter, $75.00/year $6.00/day $26.00/quarter, $75.00/year $6.00/day $43.00/quarter, $123.00/year Parking Permits – Commercial/Construction $65.00/quarter, $250/year $65.00/quarter, $250/year $65.00/quarter $65.00/quarter $10.00 $135.00/quarter, $420.00/year $6.00 $20.00 Building Moving/Relocating Permit (moved from Building Fees section) $110.00 plus cash deposit or bond $110.00 plus cash deposit or bond $560.00 plus cash deposit or bond $169.00/year $500/month $535.00 $43.00/quarter $26.00/quarter $15.00/day $165.00/year $66.00/space per week $560.00 plus cash deposit or bond $16.00 City of Palo Alto 2011 Municipal Fee Schedule 18-1 EXHIBIT E 37 This page is intentionally left blank. 38 ATTACHMENT 2 39 This page is intentionally left blank. 40 41 42 43 This page is intentionally left blank. 44 ATTACHMENT 3 45 This page is intentionally left blank. 46 Not Yet Approved SECTION 4. The Council finds that the adoption of this resolution does not constitute a project under the California Environmental Quality Act, California Public Resources Code section 21080, subdivision (b )(8). INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk APPROVED AS TO FORM: Sr. Assistant City Attorney 100512jb 0073371 2 Mayor APPROVED: City Manager Director of Utilities Director of Administrative Services 48 This page is intentionally left blank. 54 ATTACHMENT 4 55 This page is intentionally left blank. 56 57 58 ATTACHMENT 5 59 This page is intentionally left blank. 60 ** NOT YET APPROVED ** 100616 sh 8261342 1 Resolution No. _____ Resolution of the Council of the City of Palo Alto Encouraging All Palo Alto Council Members to Voluntarily Accept a 10% Reduction in their Salaries for Fiscal Year 2011 Due to the Financial Challenges Facing the City WHEREAS, the City of Palo Alto is facing fiscal challenges caused by declining municipal revenues due to the current adverse economic climate; and WHEREAS, the City Council recognizes that City employees and Palo Alto residents are making sacrifices to address City budget shortfalls; and WHEREAS, over the past year and as part of the proposed budget for Fiscal Year 2011, City departments have made significant budget cuts and some employee groups have had compensation reductions; and WHEREAS, although City Council Member salaries represent a very small portion of the City’s Budget, in light of the reductions to department budgets and employee compensation, the City Council wishes to encourage its members to accept salary reductions. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. The City Council hereby encourages each Palo Alto Council Member to agree to a ten percent (10%) reduction in his or her salary for Fiscal Year 2011 due to the financial challenges facing the City. SECTION 2. Any Council Member voting in favor of this resolution shall be deemed to have volunteered the ten percent reduction to his or her salary for Fiscal Year 2011. The Director of Administrative Services is hereby authorized to make the salary adjustment in the next available pay period for each Council Member voting in favor of this resolution. // // // // // 61 ** NOT YET APPROVED ** 100616 sh 8261342 2 SECTION 3. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ ______________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________ ______________________________ City Attorney City Manager ______________________________ Director of Administrative Services 62 APPENDIX 1 63 This page is intentionally left blank. 64 Operating Budget FY 2011 City of Palo Alto General Fund Summary 23 General Fund Summary FUND SUMMARY ($000) FY 2009 Actuals FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted-in- Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change Sales Tax 20,089 19,650 17,313 20,050 18,218 905 Property Tax 25,445 25,752 25,778 26,102 25,907 129 Transient Occupancy Tax 7,111 7,000 6,639 7,300 7,021 382 Utility Users Tax 11,030 11,250 11,417 12,304 11,429 12 Other Taxes and Fines 5,187 5,633 5,584 5,737 5,943 359 Charges for Services 19,451 20,238 18,932 20,596 20,020 1,088 Permits and Licenses 4,627 5,056 4,596 5,131 4,593 (3) Return on Investment 3,360 1,900 1,662 1,900 1,646 (16) Rental Income 13,646 13,655 13,606 13,655 13,716 110 From other agencies 158 92 323 92 106 (217) Charges to Other Funds 11,169 10,643 10,546 10,957 10,622 76 Other Revenue 2,323 1,605 1,739 1,502 1,540 (199) TOTAL REVENUES $123,597 $122,474 $118,136 $125,326 $120,761 $2,626 Operating Transfers-In 17,614 19,664 22,908 18,709 18,684 (4,224) TOTAL SOURCE OF FUNDS $141,211 $142,138 $141,044 $144,035 $139,445 $(1,598) 65 General Fund Summary City of Palo Alto Operating Budget FY 201124 City Attorney 2,474 2,569 2,523 2,614 2,369 (154) City Auditor 817 999 987 1,020 982 (5) City Clerk 1,150 1,512 1,596 1,227 1,093 (503) City Council 279 296 298 271 140 (158) City Manager 1,948 2,395 2,436 2,395 2,158 (278) Administrative Services 6,994 6,761 6,713 6,889 6,293 (420) Community Services 21,149 21,876 21,694 22,272 20,032 (1,662) Fire 23,397 25,166 26,253 26,161 27,007 754 Human Resources 2,700 2,837 2,795 2,898 2,817 22 Library 6,224 6,385 6,370 6,521 6,609 239 Planning and Community Environ- ment 9,889 9,858 9,862 9,745 9,200 (662) Police 28,245 29,998 30,010 31,328 30,579 569 Public Works 12,894 13,484 13,426 13,768 13,084 (342) Non-Departmental 6,835 6,925 6,074 8,230 5,970 (104) TOTAL EXPENSES $124,995 $131,061 $131,037 $135,341 $128,333 $(2,704) Operating Transfers Out 1,166 1,128 4,665 1,122 1,122 (3,543) Transfer to Infrastructure 14,648 9,900 9,900 10,248 9,503 (397) TOTAL USE OF FUNDS $140,808 $142,089 $145,602 $146,711 $138,958 $(6,644) NET SURPLUS (DEFICIT)$403 $49 $(4,558) $(2,676)$487 $5,046 FUND SUMMARY ($000) FY 2009 Actuals FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted-in- Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change 66 General Fund Summary Operating Budget FY 2011 City of Palo Alto 25 EXPENDITURES BY CATEGORY FY 2009 Actuals FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted-in- Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change Salaries and Benefits 91,580,716 92,717,073 91,089,564 96,361,039 88,543,283 (2,546,271) Contract Services 10,115,716 9,075,564 9,971,628 9,804,411 10,040,113 68,485 Supplies and Materials 3,013,374 3,546,939 3,303,771 3,479,839 3,241,891 (61,880) General Expense 8,989,894 10,192,501 9,995,598 9,869,501 10,021,637 26,039 Rents and Leases 720,450 740,486 739,206 740,486 735,706 (3,500) Facilities and Equipment Pur- chases 359,772 472,104 399,426 472,104 452,119 52,693 Allocated Charges 10,213,738 14,316,318 15,536,994 14,613,245 15,298,269 (238,725) Operating Transfers Out 1,166,272 1,128,274 4,665,134 1,121,819 1,121,819 (3,543,315) Transfer to Infrastructure 14,647,577 9,900,212 9,900,212 10,248,460 9,503,364 (396,848) TOTAL EXPENDITURES $140,807,509 $142,089,471 $145,601,533 $146,710,904 $138,958,201 $(6,643,322) RESERVES ($000) FY 2009 Actuals FY 2010 Adopted Changes FY 2010 BAO’s Projected 06/30/10 FY 2011 Projected Changes Projected 06/30/11 Reserves Budget Stabilization Reserve (BSR) Activity: BSR 24,747 49 (922) 23,874 487 24,361 Other Reserve Activity: Encumbrance & Reappropriation 5,924 5,924 5,924 Equity Transfer Stabilization 3,636 (3,636) Inventory of Materials & Supplies 3,173 3,173 3,173 Notes Receivable, Prepaid Items, & Interfund Advances 3,303 3,303 3,303 TOTAL RESERVES $40,783 $49 $(4,558) $36,274 $487 $36,761 67 This page is intentionally left blank. 68 APPENDIX 2 69 This page is intentionally left blank. 70 FY 2011 Enterprise Fund Summary City of Palo Alto Operating Budget FY 20116 Draft Revision: 506 User: dwong Timestamp: June 16, 2010 5:18 pm FY 2011 Enterprise Fund Summary FUND SUMMARY ($000) Electric Fund Fiber Optic Fund Gas Fund Wastewater Collection Fund Water Fund Refuse Fund Storm Drainage Fund Wastewater Treatment Fund Total Revenues Net Sales 112,561 3,044 43,993 14,477 28,803 26,137 5,506 20,095 254,616 Interest Income 4,299 268 847 445 1,050 301 159 422 7,791 Other Income 11,719 0 811 1,002 1,463 3,458 68 73 18,594 TOTAL SOURCE OF FUNDS $128,579 $3,312 $45,651 $15,924 $31,316 $29,896 $5,733 $20,590 $281,001 Expenditures Utility Purchases and Charges 74,078 0 24,595 7,499 12,043 14,797 0 0 133,012 Salaries and Benefits 10,453 972 4,638 1,901 5,206 4,376 1,000 9,213 37,759 Contract Services 4,283 165 1,021 208 754 6,547 379 1,884 15,241 Supplies and Materials 815 18 521 231 491 311 99 1,838 4,324 Facilities and Equipment Purchases 84 0 63 1 6 16 12 10 192 General Expense 3,174 19 658 65 359 276 152 404 5,107 Rents and Leases 3,755 15 326 210 2,207 4,308 6 0 10,827 Allocated Charges 7,877 566 3,977 1,971 3,364 3,674 616 4,660 26,705 Debt Service 8,949 0 947 129 2,981 608 950 815 15,379 Subtotal $113,468 $1,755 $36,746 $12,215 $27,411 $34,913 $3,214 $18,824 $248,546 Equity Transfer 11,195 0 5,304 0 0 0 0 0 16,499 Capital Improvement Pro- gram 10,085 400 8,325 4,130 8,848 1,650 1,788 2,500 37,726 Operating Transfers Out 866 8 614 567 442 338 609 9 3,453 TOTAL USE OF FUNDS $135,614 $2,163 $50,989 $16,912 $36,701 $36,901 $5,611 $21,333 $306,224 TO/FROM RESERVES $(7,035) $1,149 $(5,338) $(988) $(5,385) $(7,005) $122 $(743)$(25,223) 71 Enterprise Fund Reserves Operating Budget FY 2011 City of Palo Alto 7 Draft Revision: 506 User: dwong Timestamp: June 16, 2010 5:18 pm Enterprise Fund Reserves RESERVES ($000) FY 2011 Projected Beginning Balance FY 2011 Changes FY 2011 Projected Ending Balance FY 2011 Reserve Guideline Range Electric Fund Emergency Plant Replacement 1,000 0 1,000 1,000 (min.) Distribution Rate Stabilization 9,073 (42)9,031 6,355 - 12,710 Supply Rate Stabilization 36,268 (4,112)32,156 32,016 - 64,031 Calaveras 59,865 (2,881)56,984 0 Public Benefit 2,309 0 2,309 Central Valley O&M 153 0 153 Underground Loan 717 0 717 Subtotal $109,385 $(7,035)$102,350 Gas Fund Emergency Plant Replacement 1,000 0 1,000 1,000 (min.) Distribution Rate Stabilization 6,072 (2,198)3,874 3,230 - 6,461 Supply Rate Stabilization 7,901 (3,140)4,761 6,149 - 12,298 Debt Service Reserve 952 0 952 Subtotal $15,925 $(5,338)$10,587 Wastewater Collection Fund Emergency Plant Replacement 1,000 0 1,000 1,000 (min.) Rate Stabilization 5,554 (988)4,566 2,156 - 4,311 Subtotal $6,554 $(988)$5,566 Water Fund Emergency Plant Replacement 1,000 0 1,000 1,000 (min.) Rate Stabilization 14,191 (1,885)12,306 4,300 -8,600 Bond Proceeds (Restricted)5,874 (3,500)2,374 Debt Service Reserve 780 0 780 Subtotal $21,845 $(5,385)$16,460 Refuse Fund Rate Stabilization (5,244) (6,530)(11,774) 2,614 - 5,228 Landfill Closure and Postclosure Care Liability 11,211 (475)10,736 Landfill Corrective Action Reserve 650 0 650 Subtotal $6,617 $(7,005)$(388) 72 Enterprise Fund Reserves City of Palo Alto Operating Budget FY 20118 Draft Revision: 506 User: dwong Timestamp: June 16, 2010 5:18 pm Storm Drainage Fund Rate Stabilization 300 122 422 Subtotal $300 $122 $422 Wastewater Treatment Fund Emergency Plant Replacement 2,160 (413)1,747 1,747 (max.) Rate Stabilization (14,163) (330)(14,493) 2,990 - 5,980 Bond Proceeds (Restricted)000 Subtotal $(12,003) $(743)$(12,746) Fiber Optics Fund Emergency Plant Replacement 1,000 0 1,000 1,000 (min.) Rate Stabilization 7,831 1,149 8,980 609 - 1,522 Subtotal $8,831 $1,149 $9,980 TOTAL RESERVES $157,454 $(25,223)$132,231 Emergency Plant Replacement 7,160 (413)6,747 Rate Stabilization 67,783 (17,954)49,829 Bond Proceeds (Restricted)5,874 (3,500)2,374 Debt Service Reserve 1,732 0 1,732 Calaveras 59,865 (2,881)56,984 Public Benefit 2,309 0 2,309 Central Valley O&M 153 0 153 Underground Loan 717 0 717 Shasta Rewind Loan 000 Conservation Loan 000 Landfill Corrective Action Reserve 650 0 650 Landfill Closure and Postclosure Care Liability 11,211 (475)10,736 TOTAL RESERVES $157,454 $(25,223)$132,231 RESERVES ($000) FY 2011 Projected Beginning Balance FY 2011 Changes FY 2011 Projected Ending Balance FY 2011 Reserve Guideline Range 73 This page is intentionally left blank. 74 APPENDIX 3 75 This page is intentionally left blank. 76 2011-15 CIP Summary by Fund Capital Budget FY 2011 City of Palo Alto 21 2011-15 CIP Summary by Fund ($000) Fund Category FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Total CAPITAL FUND $21,073 $29,838 $12,755 $12,178 $12,736 $88,580 Total Reimbursements (5,475) (19,748) (3,010) (2,839) (2,872)$(33,944) NET CAPITAL FUND $15,598 $10,090 $9,745 $9,339 $9,864 $54,636 VEHICLE REPLACEMENT FUND $20 $3,514 $3,254 $2,874 $3,592 $13,254 Total Reimbursements 00000 $0 NET VEHICLE REPLACEMENT FUND $20 $3,514 $3,254 $2,874 $3,592 $13,254 TECHNOLOGY FUND $3,517 $2,192 $775 $580 $600 $7,664 Total Reimbursements (1,917) (1,553) (421) (441) (461)$(4,793) NET TECHNOLOGY FUND $1,600 $639 $354 $139 $139 $2,871 ELECTRIC FUND $10,085 $12,615 $12,137 $13,255 $12,810 $60,902 Total Reimbursements (1,340) (3,028) (3,450) (3,785) (3,870)$(15,473) NET ELECTRIC FUND $8,745 $9,587 $8,687 $9,470 $8,940 $45,429 FIBER OPTICS FUND $400 $400 $400 $400 $400 $2,000 Total Reimbursements (200) (200) (200) (200) (200)$(1,000) NET FIBER OPTICS FUND $200 $200 $200 $200 $200 $1,000 GAS FUND $8,325 $7,821 $8,188 $5,387 $5,435 $35,156 Total Reimbursements (700) (710) (720) (730) (713)$(3,573) NET GAS FUND $7,625 $7,111 $7,468 $4,657 $4,722 $31,583 WATER FUND $8,848 $5,479 $5,612 $13,003 $21,106 $54,048 Total Reimbursements (4,259) (767) (776) (785) (795)$(7,380) NET WATER FUND $4,589 $4,712 $4,836 $12,218 $20,312 $46,668 77 2011-15 CIP Summary by Fund City of Palo Alto Capital Budget FY 201122 WASTEWATER COLLECTION FUND $4,130 $4,241 $4,354 $4,516 $4,653 $21,894 Total Reimbursements (730) (740) (750) (761) (771)$(3,752) NET WASTEWATER COLLECTION FUND $3,400 $3,501 $3,604 $3,755 $3,882 $18,142 REFUSE FUND $1,650 $6,100 $0 $0 $0 $7,750 Total Reimbursements (375)0 0 0 0 $(375) NET REFUSE FUND $1,275 $6,100 $0 $0 $0 $7,375 WASTEWATER TREATMENT FUND $2,500 $2,550 $2,600 $2,700 $2,750 $13,100 Total Reimbursements 00000 $0 NET WASTEWATER TREATMENT FUND $2,500 $2,550 $2,600 $2,700 $2,750 $13,100 STORM DRAINAGE FUND $1,459 $2,171 $2,279 $2,362 $2,475 $10,746 Total Reimbursements 00000 $0 NET STORM DRAINAGE FUND $1,459 $2,171 $2,279 $2,362 $2,475 $10,746 TOTAL CIP COSTS (ALL FUNDS)$62,007 $76,920 $52,354 $57,255 $66,558 $315,094 Total Reimbursements (14,996) (26,746) (9,327) (9,541) (9,682)$(70,292) NET CIP COSTS $47,011 $50,174 $43,027 $47,714 $56,876 $244,802 ($000) Fund Category FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Total 78 CIP General Fund Financial Summary Capital Budget FY 2011 City of Palo Alto 23 CIP General Fund Financial Summary FUND SUMMARY ($000) FY 2009 Actuals FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted- in-Concept Change FY 2011 Proposed Budget FY 2011 Budget Change Revenues Bond Proceeds 0 54,381 54,757 1,400 1,400 (53,357) Other Agencies 74 768 818 55 1,210 392 State of California 2,726 136 136 0 0(136) Federal Grants 162 150 1,444 0 0 (1,444) Stanford University 54 17 17 0 0(17) Investment Income 1,009 838 838 770 1,035 197 Other Revenue 65 0 369 0 298 (71) SUBTOTAL REVENUES $4,089 $56,289 $58,379 $2,225 $3,943 $(54,436) Operating Transfers In General Fund 14,648 9,900 9,900 10,248 9,503 (397) Street Improvement Fund 485 750 750 850 750 0 Developers Impact Fee-Park Fund 1,090 0 0220 220 220 Utility Funds 1,371 86 86 230 153 67 California Avenue Parking District Permits Fund 067 67 0 0(67) Charleston Arastradero Safety Impact Fees Fund 82 82 82 82 82 0 SUBTOTAL OPERATING TRANSFERS IN $17,676 $10,885 $10,885 $11,630 $10,708 $(177) TOTAL SOURCE OF FUNDS $21,765 $67,174 $69,264 $13,855 $14,651 $(54,613) Expenses Salaries and Benefits 2,649 3,479 3,548 3,482 3,365 (183) Capital Project Expenditures 18,836 63,943 59,281 13,960 17,708 (41,573) SUBTOTAL EXPENSES $21,485 $67,421 $62,829 $17,442 $21,073 $(41,756) Operating Transfers Out 2,551 0 4,311 0 0 (4,311) TOTAL USE OF FUNDS $24,036 $67,421 $67,140 $17,442 $21,073 $(46,067) NET TO (FROM) RESERVES $(2,271) $(247)$2,124 $(3,587)$(6,422) $(8,546) INFRASTRUCTURE RESERVE YEAR-END BALANCE $7,016 $5,210 $8,967 $1,623 $2,545 $(6,422) 79 2011-15 Capital Improvement Projects City of Palo Alto Capital Budget FY 201124 2011-15 Capital Improvement Projects ($000) CIP Number Project Title FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Total KEY Shaded areas denote new projects TBD To Be Determined Italicized text indicates reimbursement Capital Fund Land and Land Improvements AC-86017 Art in Public Places 25 50 50 50 50 $225 General Fund (25) (50) (50) (50) (50)$(225) NET TOTAL LAND AND LAND IMPROVEMENTS $0 $0 $0 $0 $0 $0 Buildings and Facilities PF-14001 Art Center Roof Replace- ment 200 $200 PF-11001 Council Chamber Carpet Replacement 80 $80 CC-11000 Cubberley Gym Activity Room 65 $65 PF-13002 Cubberley Mechanical and Electrical Upgrades 1,300 $1,300 PF-13001 Lucie Stern Mechanical Sys- tem Upgrade 100 400 $500 PF-15001 Municipal Service Center Roof Replacement Build- ings A,B, and C 550 $550 PF-15000 Rinconada Pool Locker Room 300 $300 PF-93009 Americans with Disabilities Act Compliance 150 150 100 100 100 $600 PF-07000 Art Center Electrical & Mechanical Upgrades 2,600 $2,600 PF-07002 Baylands Interpretive Center Improvement 267 $267 PF-01003 Building Systems Improve- ments 100 100 100 100 100 $500 PF-09000 Children's Theatre Improve- ments 100 500 $600 PE-09003 City Facility Parking Lot Maintenance 100 100 100 $300 80 2011-15 Capital Improvement Projects Capital Budget FY 2011 City of Palo Alto 25 PF-01002 Civic Center Infrastructure Improvements 3,006 $3,006 Enterprise Funds (60)$(60) PF-06004 Cubberley Restroom Upgrades 300 $300 PF-02022 Facility Interior Finishes Replacement 355 105 105 105 105 $775 PF-05003 Foothills Park Interpretive Center Improvements 210 $210 PE-11000 Main Library New Construc- tion and Improvements 1,400 16,900 $18,300 Bonds (1,400) (16,900)$(18,300) PF-05002 Municipal Service Center Improvements 300 341 $641 Enterprise Funds (93) (106)$(199) AC-09002 New Sound System for Lucie Stern Community Theatre 200 $200 General Fund (200)$(200) PF-00006 Roofing Replacement 165 150 150 150 150 $765 PF-06002 Ventura Buildings Improve- ments 90 600 $690 NET TOTAL BUILDINGS AND FACILITIES $7,288 $2,287 $1,955 $1,155 $1,305 $13,990 Parks and Open Space PE-14000 Stanford/Palo Alto Soccer Turf Replacement 500 $500 PG-06003 Benches, Signage, Fencing, Walkways, and Perimeter Landscaping 100 150 150 150 150 $700 PE-06010 City Parks Improvements 330 440 200 200 $1,170 PG-11001 Cogswell Plaza Improve- ments (formerly PE-07004)150 $150 OS-07000 Foothills Park Road Improvements 150 $150 PG-11000 Hopkins Park Improvements (formerly PE-07001)95 $95 PG-11002 Monroe Park Improvements (formerly PE-11003)250 $250 ($000) CIP Number Project Title FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Total 81 2011-15 Capital Improvement Projects City of Palo Alto Capital Budget FY 201126 OS-09001 Off-Road Pathway Resurfac- ing and Repair 100 100 100 100 100 $500 OS-00002 Open Space Lakes and Ponds Maintenance 50 60 $110 OS-00001 Open Space Trails and Ame- nities 116 136 150 164 175 $741 PG-09002 Park and Open Space Emer- gency Repairs 75 75 75 75 75 $375 PE-06007 Park Restroom Installation 220 220 $440 Development Impact Fees (220)(220)$(440) PE-08001 Rinconada Park Improve- ments 775 $775 PG-11003 Scott Park Improvements (formerly PE-11004)100 $100 PG-06001 Tennis and Basketball Court Resurfacing 30 30 30 30 30 $150 PE-10002 Ventura Community Center and Park 135 $135 NET TOTAL PARKS AND OPEN SPACE $956 $1,991 $945 $1,279 $730 $5,901 Streets and Sidewalks PE-13011 Charleston/Arastradero Cor- ridor Project 1,000 1,000 2,000 $4,000 PL-11001 Dinah SummerHill Pedes- trian/Bicycle Path 300 $300 PO-11000 Sign Reflectivity Upgrade 100 50 50 50 50 $300 PL-04010 Bicycle Transportation Plan Implementation Project 50 50 50 50 $200 PL-07002 El Camino Real/Stanford Ave Streetscape and Inter- section Improvements 1,663 $1,663 Local Agency Grant (1,210)$(1,210) PE-11011 Highway 101 Pedestrian/ Bicycle Overpass Project (formerly PL-11000) 250 $250 PL-00026 Safe Routes to School 100 100 100 100 $400 Gas Tax Fund (100) (100) (100) (100)$(400) ($000) CIP Number Project Title FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Total 82 2011-15 Capital Improvement Projects Capital Budget FY 2011 City of Palo Alto 27 PE-00104 San Antonio Medians 630 $630 PO-89003 Sidewalk Repairs 719 690 660 654 651 $3,374 Others (299) (299) (299) (299) (299)$(1,495) PO-05054 Street Lights Improvements 130 135 140 145 $550 General Fund (130) (135) (140) (145)$(550) PE-86070 Street Maintenance 3,754 3,754 3,754 3,754 3,754 $18,768 Gas Tax Fund (750) (750) (750) (750) (750)$(3,750) PE-06011 Street Median Improve- ments 156 156 156 $468 PO-11001 Thermoplastic Marking and Striping 50 50 50 50 50 $250 PL-05030 Traffic Signal Upgrades 160 165 170 175 $670 General Fund (160) (165) (170) (175)$(670) NET TOTAL STREETS AND SIDEWALKS $5,207 $3,701 $4,670 $4,665 $5,505 $23,748 Miscellaneous AS-10000 Salaries and Benefits - Gen- eral Fund CIP Projects 3,365 3,463 3,564 3,668 3,775 $17,835 General Fund (1,217) (1,254) (1,291) (1,330) (1,353)$(6,445) NET TOTAL MISCELLANEOUS $2,148 $2,209 $2,273 $2,338 $2,421 $11,390 CAPITAL FUND $21,073 $29,838 $12,755 $12,178 $12,736 $88,580 TOTAL REIMBURSEMENTS $(5,475)$(19,748)$(3,010)$(2,839)$(2,872)$(33,944) NET CAPITAL FUND $15,598 $10,090 $9,745 $9,339 $9,864 $54,636 Vehicle Replacement Fund Miscellaneous VR-15000 Scheduled Vehicle and Equipment Replacements 3,592 $3,592 VR-13000 Scheduled Vehicle and Equipment Replacements 3,254 $3,254 VR-14000 Scheduled Vehicle and Equipment REplacements 2,874 $2,874 ($000) CIP Number Project Title FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Total 83 2011-15 Capital Improvement Projects City of Palo Alto Capital Budget FY 201128 VR-12000 Scheduled Vehicle and Equipment Replacements 3,514 $3,514 VR-07001 Automated Motor Pool Res- ervation and Vehicle Key Management System 20 $20 NET TOTAL MISCELLANEOUS $20 $3,514 $3,254 $2,874 $3,592 $13,254 NET VEHICLE REPLACEMENT FUND $20 $3,514 $3,254 $2,874 $3,592 $13,254 Technology Fund Technology TE-11005 Implementation of New Utility Rates 100 1,000 $1,100 Enterprise Funds (100)(1,000)$(1,100) TE-11001 Library Computer System Software 350 $350 TE-11002 Police Mobile In-Car Video System Replacement 310 $310 TE-11003 Recurring Credit Card Pay- ment 150 $150 Enterprise Funds (150)$(150) TE-11004 Utility Bill Information Enhancements 750 150 $900 Enterprise Funds (750)(150)$(900) TE-99010 Acquisition of New Comput- ers 75 75 75 75 $300 TE-10000 Collections Software 32 $32 TE-07000 Enterprise Application Infra- structure Upgrade (for- merly CIS/SAP Transition) 75 $75 Enterprise Funds (50)$(50) TE-06001 Library RFID Implementa- tion 400 150 215 $765 TE-05000 Radio Infrastructure Replacement 1,250 100 100 100 100 $1,650 Enterprise Funds (250) (20) (20) (20) (20)$(330) Stanford (200) (16) (16) (16) (16)$(264) ($000) CIP Number Project Title FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Total 84 2011-15 Capital Improvement Projects Capital Budget FY 2011 City of Palo Alto 29 TE-00010 Telephone System Replace- ment 100 $100 Enterprise Funds (67)$(67) TE-10001 Utilities Customer Billing System Continuous Improvements 350 367 385 405 425 $1,932 Enterprise Funds (350) (367) (385) (405) (425)$(1,932) NET TOTAL TECHNOLOGY $1,600 $639 $354 $139 $139 $2,871 TECHNOLOGY FUND $3,517 $2,192 $775 $580 $600 $7,664 TOTAL REIMBURSEMENTS $(1,917)$(1,553)$(421)$(441)$(461)$(4,793) NET TECHNOLOGY FUND $1,600 $639 $354 $139 $139 $2,871 Electric Fund Distribution System - Customer Design and Connection Services EL-10008 Advanced Metering Infra- structure (AMI) System 100 $100 Enterprise Funds (67)$(67) EL-89028 Electric Customer Connec- tions 1,900 2,000 2,100 2,200 2,300 $10,500 Others (800) (850) (900) (925) (950)$(4,425) NET TOTAL DISTRIBUTION SYSTEM - CUSTOMER DESIGN AND CONNECTION SERVICES $1,133 $1,150 $1,200 $1,275 $1,350 $6,108 Distribution System - System Improvements EL-13003 Rebuild UG District 16 300 $300 EL-14002 Rebuild UG District 20 500 500 $1,000 EL-11015 Reconductor 60kV Over- head Transmission System 450 700 700 700 $2,550 EL-11014 Smart Grid Technology Installation 500 2,000 3,000 3,000 3,000 $11,500 Enterprise Funds (333)(1,333)(2,000)(2,000)(2,000)$(7,667) EL-11010 UG District 47 - Middlefield, Homer Avenue, Webster Street and Addison Avenue 150 2,000 200 $2,350 Others (700)$(700) ($000) CIP Number Project Title FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Total 85 2011-15 Capital Improvement Projects City of Palo Alto Capital Budget FY 201130 EL-14000 Coleridge/Cowper/Tenny- son 4/12 kV Conversion 12 120 400 $532 EL-08000 E. Charleston 4/12 kV Con- version 450 $450 EL-13000 Edgewood / Wildwood 4 kV Tie 300 100 $400 EL-98003 Electric System Improve- ments 2,100 2,200 2,300 2,400 2,450 $11,450 Others (140) (145) (150) (160) (170)$(765) EL-11004 Hewlett Subdivision Rebuild Los Trancos Road 400 $400 EL-09002 Middlefield / Colorado 4/12 kV Conversion 150 250 $400 EL-09000 Middlefield Underground Rebuild 550 $550 EL-11007 Rebuild Greenhouse Condo Area 150 350 $500 EL-12000 Rebuild UG District 12 80 700 300 $1,080 EL-11003 Rebuild UG District 15 80 400 270 $750 EL-09003 Rebuild UG District 17 (Downtown)100 $100 EL-11006 Rebuild UG District 18 350 $350 EL-10006 Rebuild UG District 24 750 $750 EL-13002 Relocate Quarry Road/Hop- kins Substations 60 kV Line (Lane A & B) 100 $100 EL-02010 SCADA System Upgrades 40 300 50 55 60 $505 EL-11000 Seale/Waverley 4/12 kV Conversion 40 400 $440 EL-11002 St. Francis/Oregon/Ama- rillo/Louis 4/12 kV Conver- sion 50 450 $500 EL-89044 Substation Facility Improve- ments 160 165 170 180 185 $860 EL-89038 Substation Protection Improvements 250 250 260 270 280 $1,310 EL-11001 Torreya Court Rebuild 100 $100 ($000) CIP Number Project Title FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Total 86 2011-15 Capital Improvement Projects Capital Budget FY 2011 City of Palo Alto 31 EL-08001 UG District 42 - Embar- cadero Rd. (Between Emer- son & Middlefield) 150 2,000 $2,150 Others (750)$(750) EL-11009 UG District 43 - Alma/ Embarcadero 150 2,000 500 $2,650 Others (700)$(700) EL-06002 UG District 45 - Downtown V 350 $350 EL-12001 UG District 46 - Charleston/ El Camino Real 150 1,000 150 $1,300 Others (400)$(400) NET TOTAL DISTRIBUTION SYSTEM - SYSTEM IMPROVEMENTS $6,697 $7,517 $6,562 $7,265 $6,655 $34,695 General Services - Street Lights EL-10009 Street Light System Conver- sion Project 800 800 800 800 800 $4,000 NET TOTAL GENERAL SERVICES - STREET LIGHTS $800 $800 $800 $800 $800 $4,000 General Services - Communications EL-89031 Communications System Improvements 115 120 125 130 135 $625 NET TOTAL GENERAL SERVICES - COMMUNICATIONS $115 $120 $125 $130 $135 $625 ELECTRIC FUND $10,085 $12,615 $12,137 $13,255 $12,810 $60,902 TOTAL REIMBURSEMENTS $(1,340)$(3,028)$(3,450)$(3,785)$(3,870)$(15,473) NET ELECTRIC FUND $8,745 $9,587 $8,687 $9,470 $8,940 $45,429 Fiber Optics Fund Commercial Telecommunications FO-10000 Fiber Optics Customer Con- nections (formerly EL- 06006) 200 200 200 200 200 $1,000 Others (200) (200) (200) (200) (200)$(1,000) FO-10001 Fiber Optics Network Sys- tem Improvements(formerly EL-06005) 200 200 200 200 200 $1,000 ($000) CIP Number Project Title FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Total 87 2011-15 Capital Improvement Projects City of Palo Alto Capital Budget FY 201132 NET TOTAL COMMERCIAL TELECOMMUNICATIONS $200 $200 $200 $200 $200 $1,000 FIBER OPTICS FUND $400 $400 $400 $400 $400 $2,000 TOTAL REIMBURSEMENTS $(200)$(200)$(200)$(200)$(200)$(1,000) NET FIBER OPTICS FUND $200 $200 $200 $200 $200 $1,000 Gas Fund Distribution System - Customer Design and Connection Services GS-80017 Gas System Extensions 700 710 720 730 752 $3,612 Others (700) (710) (720) (730) (713)$(3,573) NET TOTAL DISTRIBUTION SYSTEM - CUSTOMER DESIGN AND CONNECTION SERVICES $0 $0 $0 $0 $39 $39 Distribution System - System Improvements GS-10004 Automating Test Stations (Cathodic Protection)100 $100 GS-11002 Gas System Improvements 195 200 206 212 219 $1,032 GS-14001 GMR - Project 24 492 $492 GS-15000 GMR-Project 25 542 $542 GS-03007 Directional Boring Equip- ment 60 64 68 $192 GS-02013 Directional Boring Machine 185 45 250 $480 GS-80019 Gas Meters and Regulators 297 306 315 325 335 $1,578 GS-11001 Gas Station 4 Rebuild 337 $337 GS-09002 GMR - Project 19 5,800 $5,800 GS-10001 GMR - Project 20 5,970 $5,970 GS-11000 GMR - Project 21 457 6,150 $6,607 GS-12001 GMR - Project 22 468 3,200 $3,668 GS-13001 GMR - Project 23 482 3,300 $3,782 GS-03008 Polyethylene Fusion Equip- ment 32 34 36 $102 GS-03009 System Extensions - Unreim- bursed 162 167 172 178 184 $863 ($000) CIP Number Project Title FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Total 88 2011-15 Capital Improvement Projects Capital Budget FY 2011 City of Palo Alto 33 NET TOTAL DISTRIBUTION SYSTEM - SYSTEM IMPROVEMENTS $7,625 $7,111 $7,468 $4,657 $4,683 $31,544 GAS FUND $8,325 $7,821 $8,188 $5,387 $5,435 $35,156 TOTAL REIMBURSEMENTS $(700)$(710)$(720)$(730)$(713)$(3,573) NET GAS FUND $7,625 $7,111 $7,468 $4,657 $4,722 $31,583 Water Fund Distribution System - Customer Design and Connection Services WS-80013 Water System Extensions 410 420 430 440 450 $2,150 Others (692) (700) (709) (718) (728)$(3,547) NET TOTAL DISTRIBUTION SYSTEM - CUSTOMER DESIGN AND CONNECTION SERVICES $(282)$(280)$(279)$(278)$(278)$(1,397) Distribution System - System Improvements WS-11001 Vacuum Excavation Equip- ment 275 $275 WS-11003 Water Distribution System Improvements 200 206 212 218 225 $1,061 WS-11004 Water System Supply Improvements 200 206 212 218 225 $1,061 WS-15002 WMR - Project 29 334 $334 WS-08002 Emergency Water Supply Project 3,500 $3,500 Bonds (3,500)$(3,500) WS-02014 W-G-W Utility GIS Data 100 100 100 100 100 $500 Enterprise Funds (67) (67) (67) (67) (67)$(333) WS-80015 Water Meters 209 215 222 229 236 $1,111 WS-07001 Water Recycling Facilities 500 750 750 8,000 16,000 $26,000 WS-80014 Water Service Hydrant Replacement 212 217 222 229 236 $1,116 WS-10001 WMR - Project 24 2,950 $2,950 WS-11000 WMR - Project 25 292 3,060 $3,352 WS-12001 WMR - Project 26 305 3,150 $3,455 WS-13001 WMR - Project 27 314 3,245 $3,559 ($000) CIP Number Project Title FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Total 89 2011-15 Capital Improvement Projects City of Palo Alto Capital Budget FY 201134 WS-14001 WMR - Project 28 324 3,300 $3,624 NET TOTAL DISTRIBUTION SYSTEM - SYSTEM IMPROVEMENTS $4,871 $4,992 $5,115 $12,496 $20,590 $48,065 WATER FUND $8,848 $5,479 $5,612 $13,003 $21,106 $54,048 TOTAL REIMBURSEMENTS $(4,259)$(767)$(776)$(785)$(795)$(7,380) NET WATER FUND $4,589 $4,712 $4,836 $12,218 $20,312 $46,668 Wastewater Collection Fund Collection System - Customer Design and Connection Services WC-80020 Sewer System Extensions 330 340 350 361 372 $1,753 Others (730) (740) (750) (761) (771)$(3,752) NET TOTAL COLLECTION SYSTEM - CUSTOMER DESIGN AND CONNECTION SERVICES $(400)$(400)$(400)$(400)$(399)$(1,999) Collection System - System Improvements WC-15002 Wastewater System Improvements 200 206 212 218 225 $1,061 WC-15001 WW Collection Sys. Rehab/ Aug. Project 28 330 $330 WC-99013 Sewer Lateral/Manhole Rehab/Replacement 560 565 570 617 636 $2,948 WC-12001 WW Collection Sys. Rehab/ Aug. Project 25 300 2,912 $3,212 WC-13001 WW Collection Sys. Rehab/ Aug. Project 26 310 3,000 $3,310 WC-10002 WW Collection Sys. Rehab/ Aug. Project 23 2,750 $2,750 WC-11000 WW Collection Sys. Rehab/ Aug. Project 24 290 2,830 $3,120 WC-14001 WW Collection Sys. Rehab/ Aug. Project 27 320 3,090 $3,410 NET TOTAL COLLECTION SYSTEM - SYSTEM IMPROVEMENTS $3,800 $3,901 $4,004 $4,155 $4,281 $20,141 WASTEWATER COLLECTION FUND $4,130 $4,241 $4,354 $4,516 $4,653 $21,894 TOTAL REIMBURSEMENTS $(730)$(740)$(750)$(761)$(771)$(3,752) ($000) CIP Number Project Title FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Total 90 2011-15 Capital Improvement Projects Capital Budget FY 2011 City of Palo Alto 35 NET WASTEWATER COLLECTION FUND $3,400 $3,501 $3,604 $3,755 $3,882 $18,142 Refuse Fund Miscellaneous RF-11001 Landfill Closure 600 6,100 $6,700 NET TOTAL MISCELLANEOUS $600 $6,100 $0 $0 $0 $6,700 Collection System - System Improvements RF-10003 Drying Beds, Material Stor- age and Transfer Area 750 $750 Enterprise Funds (375)$(375) RF-10002 Flare Relocation Project 300 $300 NET TOTAL COLLECTION SYSTEM - SYSTEM IMPROVEMENTS $675 $0 $0 $0 $0 $675 REFUSE FUND $1,650 $6,100 $0 $0 $0 $7,750 TOTAL REIMBURSEMENTS $(375)$0 $0 $0 $0 $(375) NET REFUSE FUND $1,275 $6,100 $0 $0 $0 $7,375 Wastewater Treatment Fund Wastewater Treatment - System Improvements WQ-04011 Facility Condition Assess- ment & Retrofit 1,050 1,050 1,050 1,100 1,100 $5,350 WQ-80021 Plant Equipment Replace- ment 1,200 1,400 1,450 1,500 1,550 $7,100 WQ-80022 System Flow Meter 250 100 100 100 100 $650 NET TOTAL WASTEWATER TREATMENT - SYSTEM IMPROVEMENTS $2,500 $2,550 $2,600 $2,700 $2,750 $13,100 NET WASTEWATER TREATMENT FUND $2,500 $2,550 $2,600 $2,700 $2,750 $13,100 Storm Drainage Fund Collection System - System Improvements SD-11101 Channing Avenue/Lincoln Avenue Storm Drain Improvements 895 1,590 1,680 1,430 $5,595 ($000) CIP Number Project Title FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Total 91 2011-15 Capital Improvement Projects City of Palo Alto Capital Budget FY 201136 SD-06104 Connect Clara Drive Storm Drains to Matadero Pump Station $ SD-13002 Matadero Creek Storm Water Pump Station and Trunk Lines Improvements 315 1,840 $2,155 SD-10101 Southgate Neighborhood Storm Drain Improvements $ SD-06101 Storm Drain System Replacement and Rehabili- tation 564 581 599 617 635 $2,996 NET TOTAL COLLECTION SYSTEM - SYSTEM IMPROVEMENTS $1,459 $2,171 $2,279 $2,362 $2,475 $10,746 NET STORM DRAINAGE FUND $1,459 $2,171 $2,279 $2,362 $2,475 $10,746 ($000) CIP Number Project Title FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Total 92 APPENDIX 4 93 This page is intentionally left blank. 94 FY 2011 Internal Service Funds City of Palo Alto Operating Budget FY 2011254 FY 2011 Internal Service Funds FUND SUMMARY ($000) Vehicle Replacement and Maintenance Fund Technology Fund Printing and Mailing Fund General Benefits and Insurance Fund Retiree Health Benefit Fund Total Revenues Operating Revenue 7,585 10,392 1,137 38,056 9,934 67,104 Interest Income 156 315 0 1,293 0 1,764 Other Revenue 191 1,718 2 290 0 2,201 TOTAL SOURCE OF FUNDS $7,932 $12,425 $1,139 $39,639 $9,934 $71,069 Expenditures Operating Expenditures 4,861 9,638 1,137 39,639 9,934 65,209 Capital Improvement Program 203,5170003,537 TOTAL USE OF FUNDS $4,881 $13,155 $1,137 $39,639 $9,934 $68,746 NET TO/FROM UNRESTRICTED ASSETS $3,051 $(730)$2 $0 $0 $2,323 95 Internal Service Funds Unrestricted Assets Operating Budget FY 2011 City of Palo Alto 255 Internal Service Funds Unrestricted Assets FUND SUMMARY ($000) Vehicle Replacement and Maintenance Fund Technology Fund Printing and Mailing Fund General Benefits and Insurance Fund Retiree Health Benefit Fund Total Changes to Unrestricted assets JUNE 30, 2010 UNRESTRICTED ASSETS $332 $6,138 $30 $481 $10 $6,991 FY 2011 Projected Changes 3,051 (730)2 0 0 (2,323) JUNE 30, 2011 UNRESTRICTED ASSETS $3,383 $5,408 $32 $481 $10 $9,314 96 APPENDIX 5 97 This page is intentionally left blank. 98 Debt Service Funds City of Palo Alto Operating Budget FY 2011249 Debt Service Funds FUND SUMMARY ($000) FY 2009 Actuals FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted-in- Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change Revenues Property Tax 0 0 003,492 3,492 Other - Interest 59 54 54 54 54 0 SUBTOTAL REVENUES $59 $54 $54 $54 $3,546 $3,492 General Fund Operating Transfers Golf Course Corporation 526 529 529 528 528 (1) Public Improvement Corp. (Civic Center)332 333 333 328 328 (4) Parking 2002B COPS Taxable 225 225 225 224 224 (1) University Avenue Permit Fund Transfer 80 80 80 80 80 0 SUBTOTAL OPERATING TRANSFERS IN $1,162 $1,167 $1,167 $1,160 $1,160 $(6) TOTAL SOURCE OF FUNDS $1,222 $1,221 $1,221 $1,214 $4,706 $3,486 Expenses Debt Service: Golf Course Corporation - Principal 335 355 355 370 370 15 Golf Course Corporation - Interest 221 206 206 190 190 (16) Public Improvement Corporation - Principal 365 380 380 390 390 10 Public Improvement Corporation - Interest 59 46 46 31 31 (14) Parking 2002B COPS Taxable - Prin- cipal 100 105 105 110 110 5 Parking 2002B COPS Taxable - Interest 135 129 129 123 123 (6) Library 2010 General Obligation - Interest 00001,472 1,472 TOTAL USE OF FUNDS $1,215 $1,221 $1,221 $1,214 $2,686 $1,465 NET TO (FROM) RESERVES $7 $0 $0 $0 $2,020 $2,020 99 This page is intentionally left blank. 100 APPENDIX 6 101 This page is intentionally left blank. 102 103 2 Adjustments to Date in the General Fund This section summarizes actions made by the Finance Committee to date. Detail for each adjustment and follow-up information is provided later in the memo. A page is referenced where additional information is available later in the memo. The next section after this one begins on page five and summarizes the actions still needed. General Fund The General Fund FY 2011 Proposed Budget includes the following changes totaling $1,095,000 outlined in the tables below. The first table reflects recommended and approved changes by the Finance Committee. The second table reflects changes recommended by staff and approved by the Finance Committee to correct or update the Proposed Budget. The changes now provide a total of $8.4 million (originally $9.4 million) in budget solutions to cover the $7.3 million budget gap, therefore providing $1,012,000 more than needed to close the budget gap. The shaded lines reflect items adding to the budget solutions non shaded lines reduce from the budget solutions. Table 1 Date Finance Committee Adjustments to Proposed Budget FY 2011 ($000) Department 6-May Reopen College Terrace Library in FY11 75 LIBRARY Reduce City Council general expense budget (This includes travel budget) -17 COUNCIL 11-May Limit park fee increases (Entrance fees reduced, but staff projects same revenue) N/C COMMUNITY SERVICE DEPARTMENT Maintain Art Center support staff 61 COMMUNITY SERVICE DEPARTMENT Reinstate summer concert series 27 COMMUNITY SERVICE DEPARTMENT Reinstate HSRAP funding 50 COMMUNITY SERVICE DEPARTMENT Reinstate 1 FTE Code Enforcement Officer 122 PLANNING 18-May Reinstate school crossing guards 345 POLICE Reinstate traffic team (4 FTE, net rev) 645 POLICE 25-May Children's Theatre new revenue (Show production participation fee $50-$300) -35 COMMUNITY SERVICE DEPARTMENT Restore 4 FTE tree trimmers 316 PUBLIC WORKS Restore trees planting materials 10 PUBLIC WORKS Reduce 1 FTE Supr. Project Engineer -162 PUBLIC WORKS Total of Finance Committee Adjustments $1,437 104 3 Table 2 Date Staff Adjustments to Proposed Budget FY 2011 ($000) Department 6-May Labor negotiations contract services 68 HUMAN RESOURCES DEPARTMENT 11-May Full FTE elimination savings from positions being contracted out (Full year savings instead of 9 months) -273 COMMUNITY SERVICES DEPARTMENT Stanford revenue -35 ATTORNEY Temporary salaries 15 ATTORNEY 18-May IT rent lease agreement cost savings -51 ADMINISTRATIVE SERVICES DEPARTMENT 25-May Correct Fiber Optic allocation expense -66 ADMINISTRATIVE SERVICES DEPARTMENT Total of Staff Adjustments -342 The current status of the “temporary surplus” included within the General Fund, based upon those adjustments by the Finance Committee and proposed by staff which are summarized in the preceding Tables 1 and 2, is restated in Table 3 below. As a result of all changes that have been acted upon by the Finance Committee, the General Fund temporary surplus currently amounts to $1,012,000. Table 3 Date Draft Adjustments to Budget FY 2011 Balance ($000) May 6 Beginning Balance $2,107 Table 1 Summary Finance Committee Adjustments -1,437 Table 2 Summary Staff Adjustments 342 June 14 Current Balance $1,012 The FY 2012 deficit is currently estimated at $1.1 to $1.5 million in the Long Range Financial Forecast. The Fiscal Year 2011 Proposed Budget includes one-time revenue increases and expenditure reductions totaling $553,000. When added to the projected FY 2012 deficit, the preliminary estimate of the FY 2012 budget shortfall is $1.7 to $2.1 million. The Finance Committee has made several changes to the City Manager's Proposed Budget and has been utilizing the “parking lot” system, where items needing further 105 4 information are parked for discussion at a later date or for decision at the budget wrap up meeting on June 14, 2010. In order to add items to the parking lot, two members of the Committee must be in agreement. Discussion of each of the parking lot items is included within the following departmental summaries of recommended changes to the City Manager’s Proposed Budget except for discussion of the Police Investigator positions. Police staff will address questions and provide additional information related to the Police Investigator positions at the budget wrap-up meeting on June 14. The following table (Table 3) summarizes the parking lot items for which decisions are needed from the Finance Committee. Table 4 Date Parking Lot Items Amount ($000) Department 6-May Monday closure of library branches *Staff to review partial closures, staffing, and calculate savings TBD LIBRARY 11-May Reduce City Attorney legal secretary (1FTE). (Attorney's Office to return with additional information on support) -117 ATTORNEY 18-May Add Police Investigators (2 FTEs) 332 POLICE 25-May Sidewalk Replacement - Property owner pays 100% repair costs 598 PUBLIC WORKS Reduce Traffic Control Maintainer -89 PUBLIC WORKS In addition, staff has been asked to provide additional information on the following items, these items are neither part of the changes nor parking lot items for later discussion. Please see the referenced page numbers within this memo for additional detail on the items summarized here:  Provide a Fire Department budget that includes a 4 percent reduction equivalent to the salary reductions for SEIU and Professional and Management employees (see page 13).  Provide a list of Fire Department reductions that could be made if there were no labor contract limitations (see page 13).  Provide a legal opinion on whether the City Council salaries can be reduced by 10 percent or if this decision must be voluntary. The City Attorney has researched the issue of Council Member reduction in pay and concluded that any Council Member may reduce their pay voluntarily by informing the City Manager of the requested reduction. A change to the ordinance making the reduction in pay permanent should only be made effective for future office holders. The approximate annual savings would be $6,500 if all Council members participate in this reduction (see page 8-9 or attachment 5). 106 5  Provide additional information on potentially increasing noise abatement fees which could potentially cover the full cost of the program (see page 10).  Provide additional information on the possibility of implementing a two-tier parking violation system (see page 9).  Provide additional information regarding the provision of security at City- sponsored events (see page 10). The additional information requested by the Finance Committee for each of the matters discussed above is included within the following departmental summaries of recommended changes to the City Manager’s Proposed Budget. Finally, regarding position changes, the Finance Committee has added 9.75 FTE to the General Fund. The additions include a Senior Auditor in the City Auditor’s Office at a cost of $156,000, which will be funded from the Utilities Enterprise Funds. The position is intended to focus on the Enterprise Fund and their operations. As a result of the changes in the tables above (not including the parking lot items) the following table reflects reinstated, additions and eliminated positions for all departments. In addition, 2 positions were proposed for the Enterprise Fund, but later withdrawn by the Department. Table 5 Position Changes to City Manager's Proposed Budget Reinstated (9.75 FTE) Program Assistant I (.75) Code Enforcement Officer Police Sergeant Police Agent Police Officers (2) Tree Trimming/Line Clearers (4) Additions (1 FTE) Sr. Auditor (Funded by Enterprise Funds) Elimination (1 FTE) Supr. Project Engineer Withdrawn (2 FTE) Customer Service Specialist Customer Service Representative Actions Needed This section summarizes the outstanding decision points that need to be addressed by the Finance Committee. The list represents items from the Parking Lot as well as staff recommended adjustments. Additional information on each item can be found at the referenced page number. 107 6 Table 6 Item Council Review/Follow- up Needed Description Amount Page Number for Details Parking Lot Items/Decision Points 1 City Attorney Consider proposal to eliminate one FTE Legal Secretary Finance Committee voted 2-2 on the proposal to reduce one Legal Secretary, which sent the item to the parking lot $117,000 8 or Attachment 5 2 Library Consider options for shortening library hours Finance Committee voted to put in the Parking Lot shortening of Library hours until financial impact could be assessed Options range from $78,384 to $164,548 11-13 or Attachment 3 3 Fire Approval of Department Budget with additional budget reductions Finance Committee voted to not approve the Fire Department budget until additional budget reductions options were provided $821,000 and $647,294 13-14 4 Police Consider Elimination of 2 FTE in Police Investigations Finance Committee voted to put this proposal in the Parking Lot for $332,000 11 5 Public Works General Fund Consider elimination of one FTE Traffic Control Maintainer Finance Committee voted to put the elimination of the Traffic Control Maintainer in the Parking Lot $89,000 16 6 Public Works Capital Approval of sidewalk cost sharing percentage and new CIP project Committee was split as to the resident’s share of sidewalk repair costs - should be 50% or 100% $298,970 (50%) or $597,940 (100%) 20 108 7 Item Council Review/Follow- up Needed Description Amount Page Number for Details Staff Recommended Changes 7 Community Services Approval of additional appropriation for severance pay Employees laid off receive one month of severance pay per SEIU labor agreement $140,000 21 8 Public Works Approval of additional appropriation for severance pay Employees laid off receive one month of severance pay per SEIU labor agreement $21,000 22 9 Printing/Mailing ISF Reinstating temp and reclass .48 FTE, Reclass Mailing Services Specialist to Offset Equipment Operator $0 ($35,400 funding provided from non- salary reductions) 24 10 Table of Org. FSLA Changes Title changes only $0 * 25 11 Water Fund Approval of increased operating transfer to CIP Correction of error in the amount of the draw on the Water Fund reserves for CIP projects $67,000 23 12 IT Tech Fund Approval of increased operating transfer to CIP Correction of error in the amount of the draw on the Technology Fund reserves for CIP projects $84,000 24 * The dollar impact is unknown at this time. Staff will return to Council as necessary with recommended salary changes once determined. Finance Committee-Recommended Changes to the City Manager’s Proposed Budget The items listed below are a summary of Finance Committee motions made and/or action items that result in a financial change or other recommended change to the FY 2011 proposed budget. 109 8 General Fund Finance Committee actions and information requests are summarized below by department. Committee actions are included for reference purposes when reviewing each of the departmental summaries. City Attorney Motions: On May 11, 2010, the Finance Committee recommended tentative approval of Fiscal Year 2011 City Attorney’s Office budget (3-1). Motions: On May 11, 2010, the Finance Committee recommended that the department reduce the proposed budget by one legal secretary. The motion failed 2-2 resulting in placement of this issue in the parking lot for reconsideration during budget wrap-up. In response to the 2-2 vote of the Finance Committee, the City Attorney has prepared additional information related to this matter for the Committee’s consideration. This information is outlined in the attached report from the City Attorney dated June 9, 2010 (Attachment 5). City Auditor Motions: On May 6, 2010, the Finance Committee recommended tentative approval of Fiscal Year 2011 City Auditor’s Office budget (4-0). On May 6, 2010, the Finance Committee recommended tentative approval to add a Senior Auditor position, at $156,115 in salary and benefit, funded by the Enterprise Funds to provide continuous and on-going audits of the Enterprise Fund activities (4-0). City Clerk Motions: On May 6, 2010, the Finance Committee recommended tentative approval of Fiscal Year 2011 City Clerk’s budget (4-0). City Council Motions: On May 6, 2010, the Finance Committee recommended tentative approval of Fiscal Year 2011 City Council’s budget (4-0). Motions: On May 6, 2010, the Finance Committee recommended the reduction of the General Expense category, by $17,000, to $30,000 and a voluntary reduction in salary by 10% or $720.00 per Council member (3-1). The City Attorney has researched the issue of Council Member reduction in pay and concluded that any Council Member may reduce their pay voluntarily by informing the 110 9 City Manager of the requested reduction. A change to the ordinance making the reduction in pay permanent should only be made effective for future office holders. City Manager Motions: On May 6, 2010, the Finance Committee recommended tentative approval of Fiscal Year 2011 City Manager’s budget (4-0). Administrative Services Department Motions: On May 18, 2010, the Finance Committee recommended tentative approval of Fiscal Year 2011 Administrative Services Department budget (4-0) Human Resources  The following is in response to the question from the Finance Committee regarding the 38 percent budgeted expense increase in the FY 2011 Proposed Budget. The 38 percent increase to the Risk Management/Safety/Workers’ Compensation division is not related to overall citywide workers compensation claims. Rather, this increase is a result of FTE reallocation to Workers’ Comp/Safety/Risk Management division. In addition, HR staff workers’ compensation leave usage increased compared to prior years due to a recent injury. Motions: On May 11, 2010, the Finance Committee recommended tentative approval of the Fiscal Year 2011 Human Resources Department Budget, including an at-places item in the amount of $68,000 for the City’s labor negotiator contract (4-0). The motion will result in the following budget changes:  Increase the Human Resources Department budget $68,000 in Fiscal Year 2011 Police Department  The following is in response to a question from the Finance Committee regarding two-tier parking violation system. Councilmember Klein, referencing an article he had read, raised the possibility of citing parking violations as City of Palo Alto Municipal Codes so that the City would receive all the fine revenue. Staff looked into this suggestion and, with the exception a few violations such as no front plate and no registration tabs on vehicle, most parking violations are citied as City of Palo Alto Municipal Code violations. However, by State statute, the county and State collect $9.50 of each of those fine amounts as an assessment for court construction costs. Further research by staff found, what is believed Councilmember Klein was referencing, the more recent practice of issuing citations for Vehicle Code moving violations, such as red light, stop sign, speeding, as a municipal code violations. Several local governments including the county of Alameda, cities of Marysville, Roseville, Riverbank, and Newman have elected to cite several moving violations 111 10 listed in the California Vehicle Code as local municipal code violations, thus retaining all fines associated with each citation. Existing law prohibits a local authority from enacting or enforcing an ordinance that assesses a penalty for a violation of matters covered by the vehicle code that is different than the penalty expressly provided for in that code unless expressly authorized. Senate Bill No. 949 was introduced on February 4, 2010 and the language in this bill further prohibits cities from enacting local ordinance on matters covered by the Vehicle Code unless expressly authorized. It is Staff’s opinion that SB 949 will pass and local jurisdictions will be prohibited from citing California Vehicle Code violations as municipal code violations. Staff will monitor the legislative actions on this bill.  The following is in response to questions from the Finance Committee regarding cost recovery of the Leaf Blower Enforcement Program. The current administrative fine for using a leaf blower in violation of the Palo Alto Municipal Code (PAMC) is $100. In FY 2009, approximately 340 administrative citations were issued, but approximately 200 administrative fines (about 59 percent) were actually paid. This is a low collection rate in comparison to, for example, overtime parking citations which have a collection rate of about 85 percent. Based on the current collection rate, administrative fines would need to be raised to approximately $210 per violation to make the program cost recovery. However, staff is confident that if fines were more than doubled, not only would the collection rate percentage drop, but there would also be fewer municipal code violations as gardeners may be more motivated to avoid hefty fines. Staff recommendation to cut this position would not eliminate the Department’s response to leaf blower municipal code violations. Enforcement going forward will be handled on a complaint basis by patrol officers, and as such, will be prioritized with other calls-for-service, possibly resulting in longer response times then would a centralized leaf blower enforcement officer.  The following is in response to questions from the Finance Committee regarding coverage for security services in CSD’s FY 2011 proposed budget. The FY 2011 CSD proposed budget currently does not contain funding for private security services at the “Moonlight Run” and the “May Fete Parade.” CSD may be able to use Park Rangers to assist with limited traffic and crowd control in order to keep Police overtime costs to a minimum. Motions: On May 18, 2010, the Finance Committee recommended to restore funding for School Crossing Guards in the amount of $345,000 (3-1). The motion will result in the following budget changes:  Increase to the Police Department budget $345,000 in Fiscal Year 2011 112 11 On May 18, 2010, the Finance Committee recommended to restore 4 FTE out of 5 positions in the Traffic Team (3-1). Budget Impact: $646,000. The motion will result in the following budget changes:  Increase to the Police Department Budget $721,104 in Fiscal Year 2011  Reinstate 1 FTE Police Sergeant, 1 FTE Police Agent, and 2 FTE Police Officer  Reinstate $75,000 in traffic citation revenue in Fiscal Year 2011 On May 18, 2010, a motion was put forth to restore the Investigations unit and offset this by a $6 increase to parking violations. The motion was tied and put into the parking lot (2-2). Police staff will address questions and provide additional information related to the Police Investigator positions at the budget wrap-up meeting on June 14. On May 18, 2010, the Finance Committee asked staff to return with information on how much leaf blower citations would need to be increased to realize cost recovery (4-0). On May 18, 2010, the Finance Committee recommended tentative approval of the Fiscal Year 2011 Police Department budget (4-0). Library Motions: On May 6, 2010, the Finance Committee recommended to the City Council to not approve Staff recommendations to keep College Terrace Library closed past the anticipated opening in November 2010 (3-1). Budget Impact: $75,893 On May 6, 2010, the Finance Committee recommended to place the shortening of the Library hours in the Parking Lot to allow time to evaluate the financial impact of partially opening on Mondays (4-0). On May 6, 2010, the Finance Committee moved that Staff returns with a proposal to develop a plan to have the libraries partially open on Mondays and that Staff should work with the Library Advisory Commission to determine a more flexible staffing schedule (4-0). On May 6, 2010, the Finance Committee recommended to the City Council to reduce the funding for book collections by $117,343 (4-0). The above motions will result in the following budget changes: 113 12  Increase the budget for the Library Department $75,000  Decrease the Budget Stabilization Reserve $75,000 On May 6, 2010, the Finance Committee made a motion that Staff returns with a proposal to develop a plan to have libraries open on Mondays. Staff provides three options to the Finance Committee with alternatives to Monday closure of all library branches. Summary of Staff proposals is as follows. (See Attachment 3 for details)  These options assume that recommendation regarding hours approved by FC on May 6 are in effect. o College Terrace reopens in FY 2011 after completion of its renovation o Main and Mitchell Park close at 8pm instead of 9pm on Tuesday and Thursday o All libraries close on Sundays before Monday City holidays OPTION 1 Open Main, Mitchell Park, and Children’s at 12 pm instead of 10 am on Monday; close College Terrace on Monday. Service Impacts: This option would maintain after school support at the three principal libraries. Customers who prefer to visit the library during the morning would be affected by the delayed opening. College Terrace would be open four, instead of five, days per week. Cost Impact: $106,672 (restores 1.0 FTE Library Associate and 0.39 FTE hourly Clerk) OPTION 2 Open Main and Mitchell Park at 12 pm instead of 10 am on Monday; close Children’s and College Terrace on Monday. Service Impacts: This would reduce service to children who use Children’s. Customers who prefer to visit the library during the morning would be affected by the delayed opening. College Terrace would be open four, instead of five, days per week. Cost Impact: $93,063 (restores 1.0 FTE Library Associate and 0.12 FTE hourly Clerk) OPTION 3 Close Main and College Terrace on Monday; close Mitchell Park and Children’s on Friday Service Impacts: This option has the greatest impact on users of all ages and needs. Some libraries are open every day, but the schedule could be confusing for some customers. 114 13 Labor Impacts: Will require discussion with SEIU regarding change to standard work week as this schedule would not provide two days off in a row for all staff. Cost Impact: $20,508 (restores 0.43 FTE hourly Clerk) Planning and Community Environment Motions: On May 11, 2010, the Finance Committee recommended tentative approval of Fiscal Year 2011 Planning and Community Environment Department budget (4-0). On May 3, 2010, the Finance Committee recommended tentative approval of the Community Development Block Grant (CDBG) Funding allocations for Fiscal Year 2011, per CMR 235:10 with a grant total of $731,566 (4-0). Fire Department Motions: On May 18, 2010, the Finance Committee recommended to return the Fire Department Budget to Staff for consideration of the model used in compensation reductions by other City employee groups and to make recommendations for a budget with similar reductions to those in other City departments (3-1). Fire Budget Narrative for June 14, 2010 At the May 18, 2010 Finance Committee (FC) budget hearing, the Fire Department’s FY 2011 proposed budget had net revenue and expenditure increases, excluding one-time adjustments, by $274,969 and $1,841,076, respectively. These amounts included proposed revenue increase of $408,000 and net expenditure reductions of $257,412. As a result of expenditure increases for firefighter salaries and benefits (contractually obligated by the current MOA), the proposed budget for the department resulted in a net expenditure increase of $754,399. The FC directed staff to return with additional budget reductions. Given that negotiations have only recently began with the Firefighters’ union, staff was further directed to identify department reductions of approximately 4 percent which is equivalent to the reductions already implemented for Management and Professional and the Service Employees International Union (SEIU). In addition, the Fire Chief was asked to provide options if contractual minimum staffing requirements did not exist. It’s important to state that any reductions impacting members of the IAFF is subject to negotiations. Should budgeted reductions not materialize through the negotiations process, an additional FY 2011 mid-year revenue increase or further operational reductions may be needed. 115 14 A 4 percent reduction in IAFF compensation concessions equals approximately $821,000 and would need to occur to be equivalent to the reductions already implemented for Management and Professional and the Service Employees International Union (SEIU). With regard to the direction to provide other suggestions if contractual conditions were not a factor, the City would consider the following deployment and utilization options achieve optimum staffing levels, among other ideas that could be identified at a later date:  Cross-staff specialized or dynamic deployment units (e.g., deploy by need/calls for service vs. minimum staffing);  Placing a unit out of service on a day-to-day basis where appropriate and based on demand/need;  Selectively staff stations relative to low peak activity by actual call data from the City’s CAD system; and  Placing unit(s) out of service on a permanent basis and/or close a fire station(s) based on demand/need where appropriate – this option would require a redeployment plan based on service area/district. Since the above options require careful analysis, weighing the complex issues in balancing service versus financial priorities, and considering the variables of each option, staff recommends deferral of specific details or recommendations until the pending Resources, Services, and Utilization study is completed (targeted completion by the end of August, 2010). Lastly, based on FC comments, below are additional reductions, if implemented, will result in savings for FY 2011. Reductions/Impacts that can be completed in FY 2011: A B C D E Description Expenditure Savings Additional Costs (Contracting, Temp. Staff, etc.) Loss of Stanford Reimburse ments Net Savings 1 Eliminate 3 FTE Fire Inspectors $590,991 ($120,000) ($142,710) $328,281 2 Eliminate 1 Deputy Fire Chief $243,895 ($12,200) ($70,204) $161,491 Totals $834,886 ($132,200) ($212,914) $489,772 Proposals that merit consideration for FY 2012 and beyond are as follows:  Special Assessment District to fund Station # 8 staffing  Cost-sharing of Station # 8 staffing from neighboring communities or in exchange for services  Shared or contract administrative functions with other fire agencies (all or partial)  Consolidations / mergers of fire agencies (all or partial)  Shared resources with other fire agencies or joint staffing (all or partial) 116 15 Community Services Department Motions: On May 11, 2010 the Finance Committee moved that CSD staff return to the Finance Committee with options for charging Children’s Theatre participants with affordable fees (4-0).  Finance Committee requested additional data on the Children’s Theatre such as number of unique participants, productions, differential rates, and other relevant data with comparative prior years. On May 11, 2010 the Finance Committee moved to accept Staff’s recommendations on revenue enhancements with the exception of instituting a limitation for one day fees to $5 dollars and annual passes to $40 for open space parks (4-0). On May 11, 2010 the Finance Committee recommended to the City Council that the Art Center keep their current staffing level at one Full Time Employee and reduce the item CS10 from 3 Full Time Employees to 2.25 Full Time Employees (3-1). Budget impact:$61,114 On May 11, 2010 the Finance Committee recommended to the City Council the preservation of the Summer Concert Series & solicit donations at the event (4-0). Budget Impact: $27,000 On May 11, 2010 the Finance Committee recommended to the City Council to eliminate the cuts to HSRAP and maintain full funding for the program (4-0). Budget Impact: $50,000 On May 11, 2010 the Finance Committee recommended to the City Council to approve the remainder of the budget for the Community Services Department (4-0).  In response to the motion by the Finance Committee on May 11, 2010, staff returned to the Finance Committee on May 25, 2010 and provided the information requested by the Finance Committee pertaining to the Children’s Theatre. (See Attachment 1 – May 25, 2010 At Places Memo) On May 25, 2010 the Finance Committee passed a motion that the Finance Committee recommends the City Council adopt the Staff proposal to charge program based variable participants fees for the Children’s Theatre, with a different fee for residents and non- residents (4-0). Budget Impact: $35,000 The above motions will result in the following budget changes: 117 16  Increase in revenue for the Community Service Department $35,000  Increase the budget for the Community Services Department $138,114  Net decrease in the Budget Stabilization Reserve $103,114 Public Works The following information about the Traffic Control Maintenance II position is being provided in response to Finance Committee questions. This position was placed in the parking lot for further consideration.  The Traffic Control Maintenance (TCM) crew is comprised of six full-time employees and one part-time temporary employee. The TCM group maintains the regulatory and guide signage, lane line and legend striping, crosswalk markings, curb markings, and graffiti removal. One FTE is dedicated to new work requests from the Transportation Division of the Planning and Community Environment Department to improve public safety.  In the first five months of 2010 the TCM crew completed 30 work requests from Transportation ranging from painting new red zones, fabricating and installing new signs and poles, moving existing signs, taking traffic counts, changing lane line striping, removing signs and poles, and installing new pedestrian safety bollards. The true work load impact from the Transportation Division includes the time spent on new installations as well as ongoing maintenance needs which continue to grow as new devices are installed. If the currently frozen Traffic Control Maintenance II position is eliminated, then the traffic control section will have to redirect its efforts to the primary responsibility of maintaining the devices that already exist and will not be able to continue to support the new requests from the Transportation Division. Motions: On May 25, 2010, the Finance Committee recommended to restore funding of $390,104 for 4.0 FTE Tree Trimmer/Line Clearers and $10,000 for planting material for trees (4- 0). On May 25, 2010, the Finance Committee was split in deciding between a reduction of the sidewalk repair and replacement program in which residents would be responsible for 100% of costs, and a reduction in which the City and residents would share the costs 50%-50%. On May 25, 2010, the Finance Committee recommended to eliminate 1.0 FTE Supervising Project Engineer of $161,525 (4-0). This recommended reduction was included on the “list of alternative” reductions and not included in the proposed budget. On May 25, 2010, the Finance Committee placed in the parking lot the elimination of 1.0 FTE Traffic Control Maintainer II of $89,421. This recommended reduction was included on the “list of alternative” reductions and not included in the proposed budget. 118 17 On May 25, 2010, the Finance Committee recommended tentative approval of the remainder of the Fiscal Year 2011 Public Works Department budget (4-0). Enterprise Funds  Per the Finance Committee’s direction, 1.0 FTE Senior Auditor has been added to the proposed budget. This position will be dedicated to issues related to the Utilities Department. Funding for this position will be shared by the Electric, Fiber Optics, Gas, Water, and Wastewater Collection Funds. Electric Fund  Increase utilities administration charges by $68,011 for addition of 1.0 FTE Senior Auditor in the City Auditor’s Office Motion: On May 27, 2010, the Finance Committee recommended tentative approval of Fiscal Year 2011 Electric Fund operating and capital budgets (4-0). Fiber Optics Fund  In response to a Finance Committee request for information regarding a transfer from the Fiber Optics Fund to the General Fund, the City Attorney believes that a reasonable, limited transfer of about five percent of annual fiber optics revenue is permitted under current law. It may be surmised that such a transfer could amount to approximately $150,000.  Increase utilities administration charges by $4,379 for addition of 1.0 FTE Senior Auditor in the City Auditor’s Office Motions: On May 25, 2010, the Finance Committee recommended tentative approval of Fiscal Years 2011 Fiber Optics Fund operating and capital budgets (4-0). On May 25, 2010, the Finance Committee recommended approval of a resolution amending various fiber optic rate schedules to effect a fiber optics rate increase of 2.6% based on the change in annual local CPI (4-0). Gas Fund  Increase utilities administration charges by $34,254 for addition of 1.0 FTE Senior Auditor in the City Auditor’s Office Motion: On May 27, 2010, the Finance Committee recommended tentative approval of Fiscal Years 2011 Gas Fund operating and capital budgets (4-0). 119 18 Wastewater Collection Fund  Increase utilities administration charges by $18,520 for addition of 1.0 FTE Senior Auditor in the City Auditor’s Office Motion: On May 27, 2010, the Finance Committee recommended tentative approval of Fiscal Years 2011 Wastewater Fund operating and capital budgets (4-0). Water Fund  Increase utilities administration charges by $30,951 for addition of 1.0 FTE Senior Auditor in the City Auditor’s Office Motion: On May 27, 2010, the Finance Committee recommended tentative approval of Fiscal Years 2011 Water Fund operating and capital budgets (4-0). Refuse Fund Motion: On May 27, 2010, the Finance Committee voted to continue the discussion of Fiscal Year 2011 Refuse Fund operating and capital budgets (4-0). Staff will return with a proposal for a rate increase for the Committee’s consideration.  Options for rate increases are presented for the Finance Committee’s consideration as a separate agenda item (CMR 281:10). It is anticipated that a final decision on rate increases will be proposed early in Fiscal Year 2011, and the budget will be amended at that time. Wastewater Treatment Fund Motion: On May 27, 2010, the Finance Committee recommended tentative approval of Fiscal Year 2011 Wastewater Treatment Fund operating and capital budgets (4-0). Storm Drainage Fund Motions: On April 6, 2010, the Finance Committee recommended approval of a resolution amending storm and surface water drainage rate schedules to effect a storm drainage rate increase of 2.6% based on the change in annual local CPI (4-0). On May 27, 2010, the Finance Committee recommended tentative approval of Fiscal Year 2011 Storm Drainage Fund operating and capital budgets (4-0). Internal Services Funds Vehicle Replacement and Maintenance Fund 120 19 Motions: On May 27, 2010, the Finance Committee recommended to not approve staff’s recommended “at places” addition of CIP VR-11002 RFID Reader at MSC and Civic Center of $50,000 (4-0). On May 27, 2010, the Finance Committee recommended tentative approval of the Fiscal Year 2011 Vehicle Replacement and Maintenance operating and capital budgets (4-0). Technology Fund Motions: On May 18, 2010, the Finance Committee recommended tentative approval of the Fiscal Year 2011 Technology Fund operating and capital budgets (4-0). Printing and Mailing Fund Motions: On May 18, 2010, the Finance Committee recommended tentative approval of the Fiscal Year 2011 Printing and Mailing Fund budget (4-0). General Benefits and Insurance Fund Motions: On May 27, 2010, the Finance Committee recommended tentative approval of the Fiscal Year 2011 General Benefits and Insurance Fund budget (4-0). Retiree Health Benefits Fund Motions: On May 27, 2010, the Finance Committee recommended tentative approval of the Fiscal Year 2011 Retiree Health Benefits Fund (4-0). Infrastructure/Capital Fund CIP Motions: On May 25, 2010, the Finance Committee recommended that the City Council approve the proposed General Fund Capital Improvement Program Budget (4-0).  On May 25, 2010 Staff presented to the Finance Committee additional CIP Project CC-11000 Cubberley Gym Activity Room for $65,000. The Finance Committee approved the addition.  Finance Committee requested a six-month check-in on projects with lower construction bids and list of likely projects by which potential savings can be used to fund these projects  Finance Committee recommended another graphic presentation of funding sources for the projects. Staff responded that additional chart can be included in the adopted budget document. 121 20 The above motion will result in the following budget changes:  Drawdown from the Infrastructure Stabilization Reserve of $65,000 On May 25, 2010, the Finance Committee was split in deciding between a reduction of the sidewalk repair and replacement program in which residents would be responsible for 100% of costs, and a reduction in which the City and residents would share the costs 50%-50%.  Three options were presented for the Finance Committee’s consideration: o The first option would maintain the “status quo” sidewalk program as performed in prior fiscal years. The City performs 100% of the work with no cost shift to residents. The budgetary impact of this option would be $597,740 and would include adding back in to the budget a $500,000 CIP project and one Engineering Tech III position at a cost of $97,740. o The second option would transfer 100% of the responsibility for sidewalk repair and replacement to the homeowner. Under this option, the City would perform 100% of the work and bill the homeowner for the full cost of sidewalk repair and replacement. The budgetary impact of this option would be $0 and would include adding back into the budget a $500,000 CIP project, one Engineering Tech III position at a cost of $97,740 and creation of a revenue estimate in the amount of $597,740 for sidewalk replacement/repair reimbursement revenue. o The third option would transfer 50% of the responsibility for sidewalk repair and replacement to the homeowner. Under this option the City would perform 100% of the work and bill the homeowner for 50% of the full cost of sidewalk repair and replacement. The budgetary impact of this option would be $298,970 and would include adding back into the budget a $500,000 CIP project, one Engineering Tech III position at a cost of $97,740 and creation of a revenue estimate for the sidewalk replacement/repair reimbursement revenue in the amount of 50% of the full project cost or $298,970. Under all three options, the City would retain 100% of the legal liability for sidewalk maintenance and repair. Municipal Fee Schedule The Finance Committee will consider the Municipal Fee Schedule on June 14, 2010. Contracts Greater Than $85,000 The Finance Committee will consider the Contract Scopes of Consultant Services Agreements Greater than $85,000 on June 14, 2010. 122 21 Staff-Recommended Changes to the City Manager’s Proposed Budget The items listed below are a summary of “at places” items that result in a financial change and other proposed changes included within the budget wrap-up memo. General Fund Per the City’s personnel rules and SEIU’s labor agreement, laid off SEIU and management employees receive one month of severance pay at the time of separation from service with the City. After all retirement applications were processed and bumping rights exercised, a total of 19 employees will ultimately be laid off. This total is net of the position changes summarized and discussed below. The total amount of the payoffs to be paid to the 19 laid-off employees is estimated at $365,000. Of this amount, an estimated $204,000 will be paid off to employees separating from service with the City on June 30. An additional $161,000 appropriation is required for the FY 2011 Proposed Budget to account for the estimated payoffs to laid-off employees in the Community Services department and the Public Works department that are separating from service with the City during the first quarter of FY 2011. Infrastructure/CIP  General Fund infrastructure backlog in pages 292 is amended to include Public Safety Building for $60,000,000 (Attachment 2). The change has no cost impact in the FY 2011 budget. With this change, the total infrastructure backlog is $510,000,000. The infrastructure backlog schedule is statistical data maintained by staff to monitor the City’s progress in updating the infrastructure backlog. Community Services Department  Staff is implementing changes in the salary and benefits reduction calculation. The FY 2011 Proposed Budget assumes three month salary and benefits usage for administrative position elimination transition. The attached calculation assumes the department will realize the full-year savings for the identified eliminated positions. The impact of the change is savings to the General Fund of $274,000.  Staff is recommending an additional appropriation of $140,000 be added to salaries for payment of severance pay to laid off employees. Per the City’s personnel rules and SEIU’s labor agreement, laid off employees receive one month of severance pay at the time of separation from service with the City. Public Works  Staff is recommending an additional appropriation of $21,000 be added to salaries for payment of severance pay to laid off employees. Per the City’s personnel rules and SEIU’s labor agreement, laid off employees receive one month of severance pay at the time of separation from service with the City. 123 22 Human Resources  An existing contract in the amount of $68,000 with the City’s labor negotiation consultant was not included in the proposed budget. This item was presented to the Finance Committee on May 11, 2010 at places. Debt Service Library Bonds  In June 2010, the City sold $55,300,000 of 2010 General Obligation Library Bonds to construct a new, energy efficient, environmentally friendly Mitchell Park Library and Community Center, to renovate and expand the Main Library, and renovate the Downtown Library. Annual debt service for FY 2011 is $1,472,000 and will be paid by an ad valorem property tax levy assessed against property owners. The property tax assessment will result in $3,491,539 in property tax revenue to fund debt service payments. Enterprise Funds  Changes to the proposed budget include the removal of 1.0 FTE Customer Service Representative of $94,348, and 1.0 FTE Customer Service Specialist of $103,768. The cost of these positions had been distributed among the Electric, Gas, Water, and Wastewater Collection Funds. In lieu of these two permanent positions, $134,657 has been shifted to temporary salaries. Electric Fund  The change to the Calaveras Reserve has been updated to reflect a draw of $4,108,000 in accordance with the annual stranded cost calculation. The projected FY 2011 ending balance of the Calaveras Reserve is $55,757,000. Correspondingly, the change to the Electric Supply Rate Stabilization Reserve (RSR) has been updated to reflect a draw of $2,881,000. The ending Electric Supply RSR is projected to be $33,387,000, which is within the revised guideline range of $32,016,000 to $64,031,000.  Decrease salaries and benefits expense by $23,587 for removal of request to add 0.25 FTE Customer Service Representative  Decrease salaries and benefits expense by $25,942 for removal of request to add 0.25 FTE Customer Service Specialist  Increase temporary salaries and related medical stipend by $10,658 for customer service and support Gas Fund  Decrease salaries and benefits expense by $23,587 for removal of request to add 0.25 FTE Customer Service Representative  Decrease salaries and benefits expense by $25,942 for removal of request to add 0.25 FTE Customer Service Specialist 124 23  Increase temporary salaries and related medical stipend by $46,787 for customer service and support  The projected FY 2011 beginning balance of the Gas Supply RSR has been updated to $7,901,000 Fiber Optics Fund  Decrease temporary salaries and related medical stipend by $4,575 and redistribute to other Utilities Funds for customer service and support Water Fund  The draw on the Water Fund reserves for CIP projects included in the Proposed Operating Budget did not match the total proposed CIP program expenditures for the Water Fund in error. The draw on the Water Fund reserves should be increased $67,000 to correct the amount of the draw included in the proposed operating budget document (See page 154 in the Proposed Operating Budget and page 33 in the Proposed Capital Budget). The change in the Water Fund draw on reserves will change the draw from $8,781,000 to $8,848,000 and will result in an additional draw on the Water Fund Reserve of $67,000.  Decrease salaries and benefits expense by $23,587 for removal of request to add 0.25 FTE Customer Service Representative  Decrease salaries and benefits expense by $25,942 for removal of request to add 0.25 FTE Customer Service Specialist  Increase temporary salaries and related medical stipend by $26,435 for customer service and support  The projected FY 2011 beginning balance of the Water Rate Stabilization Reserve has been updated to $14,191,000 Wastewater Collection Fund  Decrease salaries and benefits expense by $23,587 for removal of request to add 0.25 FTE Customer Service Representative  Decrease salaries and benefits expense by $25,942 for removal of request to add 0.25 FTE Customer Service Specialist  Increase temporary salaries and related medical stipend by $50,836 for customer service and support Refuse Fund  Options for rate increases are presented for the Finance Committee’s consideration as a separate agenda item (CMR 281:10). It is anticipated that a final decision on rate increases will be proposed early in Fiscal Year 2011, and the budget will be amended at that time. Internal Services Funds Vehicle Replacement and Maintenance Fund 125 24  CIP VR-11000 Scheduled Vehicle and Equipment Replacements of $3,193,500 has been removed. An evaluation of the vehicle fleet will be made during FY 2011, and this CIP will be adjusted and reinstated accordingly. Technology Fund  TE-11005 - Change in the name of the project from “Implementation of New Utility Rates” to “Implementation of Restructure Tiered Rates on Bills”. Changes are also made on the project description and supplementary information on the CIP page of the project. See Attachment 1 for details of the changes. These changes have no financial impact on the Proposed FY 2011 budget. This technology project is managed by the Utilities Department.  The draw on the Technology Fund reserves for CIP projects included in the Proposed Operating Budget did not match the total proposed CIP program expenditures for the Technology Fund in error. The draw on the Technology Fund reserves should be increased $84,000 to correct the amount of the draw included in the proposed operating budget document (See page 254 in the Proposed Operating Budget and page 21 in the Proposed Capital Budget). The change in the Technology Fund draw on reserves will change the draw from $3,433,000 to $3,517,000 and will result in an additional draw on the Technology Fund Reserve of $84,000. Printing and Mailing Fund  Reinstate the temporary hourly Print Shop Assistant position and reclass the Mailing Services Specialist position to Offset Equipment Operator. These changes will allow for proper coverage to meet the required operational demands of departments’ and Council’s operations. There will be no financial impact on the FY 2011 proposed budget. The funding for these changes is provided from non-salary reductions of $35,400 in the FY 2011 proposed budget. Staffing Table of Organization 126 25  The following title changes will be incorporated into the City’s Table of Organization and have no budgetary impact: New Job Title Old Job Title Communications Manager Public Communications Manager Community Service Manager Supervisor Parks Deputy Fire Chief Deputy Fire Chief-EMT Hearing Officer Parking Examiner Legal Services Administrator Legal Administrator Library Services Manager Supervising Librarian Senior Human Resources Administrator Administrator, Human Resources Management Analyst Administrator, Public Works Performance Auditor Auditor Senior Electrical Engineer Senior Electric Project Engineer Senior Management Analyst Senior Administrator Senior Performance Auditor Senior Auditor Accountant Staff Accountant Community Services Senior Program Mgr Supervisor Junior Museum Community Services Superintendent Supervisor Golf Course Utilities Supervisor Supervisor Electric Systems Deputy Director Technical Services Div Coordinator Police Technical Services Senior Resources Planner Senior Resource Originator  Open Space and Parks Division Manager job classification will receive a 3.5 percent salary increase to correct the cost of living adjustment (COLA) increase that was given in FY 2008. The budgetary impact of this increase is $6,700 and will be adjusted in the FY 2011 midyear budget.  The Table of Organization will be corrected to reflect the elimination of 1.0 FTE Administrative Associate I instead of the elimination of 1.0 FTE Administrative Associate III which was originally included in the proposed budget. This change resides within the Capital Fund under the purview of the Public Works department. Related Memos Memos distributed “at-places”: May 6 - Updated Proposed Budget Balancing Recommendations for Fiscal Year 2011 General Fund, pages xvii and xviii of the FY 2011 Proposed Budget document - Revised Department Summary, Inputs, and Resource Level Changes, pages 97 to 100 for the Human Resources Department May 11 - Community Services Department Fiscal Year 2011 Proposed Budget Balancing Strategy 127 26 - Remove the 2 FTE Supervisor Recreation Programs to Senior Supervisor Recreation Programs reclassification. - Community Services Department Change in Salary and Benefits Reduction Calculation - Parks and Recreation Commission Special Meeting Preview Budget Proposal / Reductions FY 2011, April 22, 2010 meeting at Cubberley. - Human Resources Department Fiscal Year 2011 Proposed Budget Balancing Strategy - Planning and Community Environment Department Fiscal Year 2011 Proposed Budget Balancing Strategy - City Attorney’s Office Fiscal Year 2011 Proposed Budget Balancing Strategy - Revised Department Summary, Inputs, and Resource Level Changes, pages 33 to 36, and Organizational Charge, page 30 for the City Attorney’s Office - Change in Technology Fund Allocated Charges schedule May 18 - General Fund Salary and Benefits summary by department - Police Department Fiscal Year 2011 Proposed Budget Balancing Strategy - Fire Department Fiscal Year 2011 Proposed Budget Balancing Strategy - Administrative Services Department Fiscal Year 2011 Proposed Budget Balancing Strategy - Information Technology Internal Service Fund Fiscal Year 2011 Proposed Budget Balancing Strategy - Change in Technology Fund Allocated Charges for all General Fund Departments - Printing and Mailing Internal Service Fund Fiscal Year 2011 Proposed Budget Balancing Strategy May 25 - Summary of staff responses to the questions posed by the Finance Committee during the public budget hearing of the Community Services Department on May 11, 2010 regarding the Children’s Theatre - Amended data on the cost recovery rates of various arts and recreation programs of the Community Services Department - Golf Course Financial Summary for FY 2011 with comparative figures for FY 2009 and FY 2010 - Public Works General Fund Fiscal Year 2011 proposed Budget Balancing Strategy - Review of Other Cities’ Sidewalk Replacement Programs - A Letter from the Planning and Transportation Commission regarding the Capital Improvement Plan (CIP) FY 2011-2015 - Minutes of meeting of the Planning and Transportation Commission (PTC) on November 4, 2009, February 24, 2010 and May 12, 2010 (draft) - CIP Page of Project CC-11000 – Cubberley Gym Activity Room - Utilities Department Fiscal Year 2011 Proposed Budget Department Highlights 128 27 - Annual Calaveras Reserve Stranded Cost Calculation memorandum from the Utilities Department to the Utilities Advisory Commission - Finance Committee Recommendation to Approve Proposed Changes to the Electric Fund’s Calaveras Reserve Guidelines (CMR 275:09) - Revised Enterprise Fund Reserves, pages 155 to 156 of the FY 2011 Proposed Budget document May 27 - CIP Page of Project VR-11002 – Installation of RFID Reader at MSC and Civic Center - Utilities Department Fiscal Year 2011 Proposed Budget Department Highlights June 14 - Wrap-up Memo and Attachments (see below for list of attachments) City Manager’s Reports April 6 - CMR: 182:10, Storm Drainage Fund rate increase May 3 - CMR: 235:10, Proposed Fiscal Year 2011 CDBG Funding Allocations May 25 - CMR: 237:10, Fiber Optic Fund rate increase June 14 - CMR: 262:10, Proposed Amendments to the Fiscal Year 2011 Municipal Fee Schedule - CMR: 258:10, Contract Scopes of Consultant Services Agreements Greater than $85,000 Attachments: Attachment 1: Implementation of Restructured Tiered Rates on Bills (TE-1105) Attachment 2: Infrastructure Future Needs – Backlog Schedule Attachment 3: Library Alternatives to Monday Closure of All Library Branches Attachment 4: Correspondence (including emails) from citizens and/or other interested parties regarding various Fiscal Year 2011 Budget reduction proposals, and notes from Community Outreach meetings Attachment 5: Memorandum from City Attorney’s Office, dated June 9, 2010 129 The weekly schedule in FY2010, prior to the closing of the Downtown Library for renovation, and the schedules for each of the three options for FY2011 are as follows: FY2010· Current 211 hourslweek (does not include hours for Colle~ e Terrace' t-#brary I Man I Tues Wed Thurs Frl Sat ' Sun Main 11Oam-90m : lOam-80m 10a'm-gom 12·90m 10am-Bom lOam-Born 1-5pm f"';:;MC;itc"'hC::e'I'C'1 "p-"a~r:Lk::~!t-·7.1D",a","m,-:-9~pm I 10am-9pm 10am-gpm 12-9pm1 Dam-apm 10am-Bpm 1-5pm i Children's 10am-6om I 10am-Bom 10am-Bpm 12-6pm 10am-Bom 10am-Bpm 1-5pm f-;<c':'iolT.'le=.g, e~T e=r::ra:::ce::-t·'C""lo=s=e':id7fo=.r':re~n'c:oC:':viiiiiOn since mid-July, Had .been open 35 hours per week ,'ij FY2009, ,-",-D",ow",n~to",w",n,--_--,-,C",lo",s",e:::d_---,Ic.:.l.()am-6pm I 10am-6om I 12-7pm 110am-8om I 10am-Bpm I Closed FY2011· Option 1 Total Hrs, J 62 per",.!'.:-i 62 pefwk, : 48per~ I 39 perwk, 190 hours/week (does not include hours for Downtown) -10% reduction from FY2010 II/brarv Man Tues Wed Thurs Fri .. Sat Sun I Total firs:! I Main 12-8pm 10am-8pm lOam-80m 12-8pm 10am-8pm 10am-8pm l-Spm J 56 perwk, J (Mitchell Park 12-8pm lOam-80m 10am-8pm 12-8pm 10am-6pm 10am-8pm _ l-Spm '56 perwk,'i U::hildreo's 12-6om 10am-Som 10am-6om 12-6om '10am-50m 10am-50m l-Som 146 oerwk, . L20llege Terrace .Closed lOam-80m 10am-6rm Closed 110am-8pm 10am-8pm Closed I 32 perwkj , Downtown Will be closed for renovation all of FY2011 , FY2011· Option 2 184 hours/week (does not include hours for Downtown) -13% reduction from FY2010 I LIbrary Man Tues Wed Thurs Fr' Sat Sun Total Hrs. I • Main 12·8pm .. 10am-8em '".1 Oam-8pm 12-8pm 10am-8pm 10am-8pm 1-Spm 56 per wk. : i Mitchell Park 12-8om lOam-80m .10am-8em 12-Som 10am·8om 10am-8om 1-50rn 56.oerwk, I L?hildren's Closed 10am-6pm 10am-6om ' 12-6pm 10am-5pm 10am-50m 1-50m 40 perwk, ! , ColleQe Terrace Closed 10am-6rm 10am-6pm I Closed 10am-6pm 10am-6pm Closed 32 per wk. LPowntown-~" Will be closed for renovati()n all of FY2011, I FY2011· Option 3 171 hours/week (does not include hours for Downtown) -19% reduction from FY2010 Library Man Tues Wed I TllufS Frl Sat Sun Total Hrs, I .... I Main closed 10am:8pm 10am-8pm I 12-8pm 10am-6em 10am-6pm 1::;p.!Tl. 48 oerwk. I , Mitchell Park 10-8om 10am-Bp.l11_ 10am-8pm li2-8om ... Closed 10am-8om 1-50m 50oerwk. Children's la-6om 10am-8pm 10am-8pm I, 12~6p"!... .. Closed TOam·5pm 1-5pm 41 PElf wk, i f-3C'''~~''-'''' Closed"'-. 10am-6om 10am·6pm Closed Collece Terrace 10am-6om I Closed 10am-6pm 32 perwk, , Jl()wntown Will be "lased for renovation all of FY2011. .. _ ... _~_::J 2 134 Correspondence from Citizens and/or Other Interested Parties Regarding FY 2011 Proposed Budget Reductions To see these pages on the City Website, follow the link below: http://www.cityofpaloalto.org/depts/asd/ budget.asp Attachment 4 135 TIIE HONORABLE CITY COUNCIL June 8,2010 Page 2 RE: City Attorney's Office "Parking Lot" Proposal to Cut One Secretary Position Ratio of Attorneys to Legal Secretary <R~dwood Sanl!!' HayWard "{jan Palo Wainul Mo'llsn MOllrllaln· 'cItY .' >Maleo crilej(. . ~, iJ'vermore 1 , SUnnyvale Cia .. Ano .Bar1<&ley Hili Fremom . to 1 2to 1 2 to 1 2 to 1 2101 2to 1 2 to 1 2101 2 to 1 2.2 to 1 2.25 to 1 2.5 to 1 Larger attorney/secretary ratios of 3 to 1 or 4 to J were typically found to exist only in larger agencies where additional support staffis dedicated to answer phones, file, etc. (Oakland 2.85 to 1; San Jose 2.9 to 1). Similatly, while it is true that private law firms often have a 3 to 1 ratio for attomeys to legal secretaries, the two arenas are not comparable. Private law firms have file clerks and dedicated receptionists, while legal secretaries in City Attorney's Offices perform those tasks in addition to their other duties. A true comparison should be based upon similar work completed in a similar fashion. Private law firms simply do not function in the same fashion as public agency offices, which respond to the varied needs of 1,056 on site employees and more than 60,000 residents. Finally,.due to the small office, it is also necessary to have 3 legal secretaries to provide for adequate coverage in the event someone is out ill or on vacation. This support staffing level is similar to that found throughout the City in departments of a similar size. Due to the legal and confidential nature of the work, the City Attorney's Office does not use temporary staff when someone is out of the office. The work is divided between the remaining support staff. Sophisticated Level of Duties: To use the term "secretary" to describe our legal secretaries is misleading as a substantial part of the work is not clerical. All legal secretaries possess a minimum of 7 years legal experience. All legal secretaries perform advanced level para-professional and highly technical administrative support duties. Their duties more closely match those of a paralegal or Legal Assistant. However, their titles remains "secretary" instead of Legal Assistant so as not to run afoul of Business & Professions Code Section § 6450, which requires certification and mandatory continuing education to use the title of "Legal Assistant." These legal secretaries are members of the Management & Professional Group defined as "confidential." They are trusted with the most confidential information in the City. They all work on sensitive information related to labor negotiations, disciplines, claims, litigation, etc. Our legal secretaries arc also required to possess a strong knowledge of the Code of Civil Procedure and Rules of Court. All legal secretaries assist in filing documents in State and Federal Court. Their duties include researching legal information from readily available sources, assembling data, preparing and transmitting documents, and providing technical or procedural information in response to inquiries. In addition to preparing initial drafts of Resolutions, Ordinances and some contracts, they review final CMR's and attachments for incorporation of attorney comments. 1bey also work with departments to prepare the initial draft of Certificates of Compliance, Subdivision Agreements, Dark Fiber Licensing Agreements, Below Market Rate agreements. 'Ibey are the first line of support within the Attorney's office. Our legal secretaries finalize all correspondence, memoranda and reports 09fl311 sdl OlllQQ9 137 THE HONORABLE CITY COUNCIL June 8, 20!O Page 3 RE: City Attorney's Office "Parking Lot" Proposal to Cut One Secretary Position applying knowledge of correct processes. They review finished materials for completeness, accuracy, fonnat, and compliance with policies and procedures. Legal secretaries prepare initial drafts of routine pleadings. They finalize and process 'all pleadings for litigation and appeals handled in-house, prepare draft responses to Pitchess motions and subpoenas including obtaining proper signatures, verification and arrange for filing of legal briefs and other paperwork with the court both electronically or via messenger. Our legal secretaries assist with maintenance of data relating to litigation and claims matters. The infonnation is used for the City's liability loss runs and to create the first draft of the semi annual litigation status reports. Every lawsuit is also entered into a database and tracked by a secretary. The legal secretaries are responsible for calendaring of all deadlines and court hearings, including those for Municipal Code violations (55 matters in 2009 and 66 handled in 2008), Pitchess Motions, public records requests and subpoenas for the attorneys. They routinely prepare draft Recall of Warrant and Dismissals for the City'S Court Liaison. Our legal secretaries maintain attorney calendars, schedule meetings, and maintain a tickler file. They maintain documentation which sometimes only exists within our office. The legal secretaries also worked with the Purchasing Department to crcate "Smart Documents" in order to automate the City's boilerplate contract forms and the IFB process. Development of these form documents requires a high level of familiarity with MSWord. They have assisted in training staff on contracts as well. ' Customer Service: Although they may appear to act as receptionistJor the City Attorney's Office, the task at the front desk is more than one of greeting and taking phone messages. Not only do they handle the basic calls but they assist callers with referrals to sources outside of city services including the Santa Clara County Attorney Referral Service, the Courts or with claims. The legal secretaries answer basic questions and refer legal issues to the appropriate attorney. On average, the City Attorney's office receives 38 phone calls per day (I 73/week) with a high of 92 daily aod 295 calls weekly. Callers are split equally between City staff and Palo Alto residents. Although this function is not part of the Department's mission statement it is what our residents and staff have become accustomed to. If one of the legal secretary positions is eliminated, our phones would need to go to voice mail with call backs at a later time or referral to the City's main information line. Elimination of a legal secretarial position would only limit the ability of the department to assist those callers, not cause a decrease the number of phone calls to the City Attorney's Office. Of even greater impact on the organization the loss of this position would create a delay in the turnaround time of assignments flowing out of the attorney's office. The Office of the City Attorney receives over 3,000 work requests per year. In addition to drafting agenda documents, each request is logged in and tracked within the department to ensure timeliness with the public's business. Our legal secretaries input and maintain information in a department database. They also work with City staff to ensure that agenda items are ready for their scheduled Council, Board or Commission meeting. The data maintained is used to create an automated bi-weekly status report of assignments for the City Attorney to review. 09fi311 ,dJ OJ 11449 138 THE HONORABLE CITY COUNCIL June 8, 2010 Page 4 RE: City Attorney's Office "Parking Lot" Proposal to Cut One Secretary Position Cost Plan AllocationlRevenue Generation: Currently,. 95 FTE of one of the legal secretaries is charged to the Enterprise funds through the cost plan allocation. Elimination of the senior legal secretary .would reduce the cost plan charge to the Enterprise funds. Thus, only a portion of the savings from eliminating the position would inure to the benefit of the General. Fund. The City Attorney's Office processes Certificates of Compliance, a Subdivision Map Act document. The processing is highly technical and requires substantial legal secretary assistance. The City Attorney's Office generates approximately $10,000 pel' year in fecs from the processing of the Certificates of Compliance. Elimination of this position would impair our ability to process the Cenificates and greatly reduce this revenue. If a legal secretarial position is eliminated, the work will not go away, it will only be delayed. The impact on the department would be that the attorneys would need to do some of the tasks at a much higher cost to the City. Departments would need training in order for some tasks to be assumed by the departments. Some tasks would either go undone or take longer to be completed. Since 2004, the Office of the City Attorney has made great strides to improve our turnaround times and to not be the cause of delay for City departments. Where the City Attorney's Office was once referred to as the ''black hole" because of the delays in turning around the work, we are now running efficiently and to the satisfaction of those we serve. Last year's survey showed widespread satisfaction with the performance of the City Attorney's Office. Elimination of this position would impact our ability to timely meet the needs of our Council, staff and the residents. City Attorney's Office Staff Previously Reduced by 21%: As was explained in our prior staff report (attached) the City Attorney's OffIce, unlike any other City Department has already reduced its headcount by 21% in the five years prior to this budget year, including a reduction in attorney count from 7.5 to 6 FTE. The latest proposal to reduce another employee ignores the fiscal prudence the City Attorney's Office has exercised in prior years. Essentially, the City Attorney's Office is being penalized for making cuts in pdor years when it was notreq'uired to do so. Summary ofOffi •• oflh. City Attor.ey ReOT •• iz.ti •• I. FY02-l13 FY03~ FY04-O!i FY1l5006 V'Vn< ... W"';..; . FYOS..o9 City AU.rRey 1 1 1 1 I 1 J LC2al Administrator 1 1 I J J I I Sr. Asst. City Attorney 6.5 5.75 6.75 4.55 2.8 2 2 Assistant City Attorney 0 0 0 0 0 1 1 Sr. neputy City AUorney 0 0 0 2 2 2 2 Legal Secretary 3 3 3 2 2 2 2 Sccretary to City Attorney 0 0 0 I I I J : Claims Investi •• lorlParal ••• 1 1 J 1 1 0.6 0.6 0.6 P"alegal 1 0 0 0 0 0 0 Total FTE 13.5 n.7S 12.75 12.55 10.4 IO.~ lUi 090311 ,dl 0111449 139 THE HONORABLE CITY COUNCIL June 8, 2010 page 5· RE: City Attorney) Office "Parking Lot" Proposal to Cut One Secretary Position Other Proposed Cuts: Additionally, some of the Committee Members have asserted that a cut to outside counsel contingency is not a true cut since should the need arise; the funding will need to be made available. We respectfully disagree. We have made every effort to reduce outside counsel costs where possible, including our recent effort to request hourly rate reductions. We continue to monitor our outside counsel bills and closely monitor budgets and the work performed. The City Attorney endeavors to stay within his budget and has only requested a Budget Amendment Ordinance on two prior occasions (one in 2004 and one in 2005) since joining the City in 2004. The Committee should trust that he will continue to avoid the necessity of a BAO as he has done in the past. Elimination of a legal secretary will greatly impact the efficiency of botll the Department and the organization. We strongly urge the Finance Committee to reconsider elimination of this position. I recommend that the City Council approve our submittal as presented. GMB:mb Enclosure cc: City CounCil Members James Keene, City Manager . Pamela W. Anti!, Assistant City Manager Lalo Perez, Administrative Services Director 09Q311 sdl ·011l449 Respectfully submitted, $~'~ ~YM.BAUM City Attorney 140 THE HONORABLE CITY COUNCIL May 14,2009 Page 2 RE: "Parking Lot" Proposal to Layoff one Secretary and one Attorney from City . Attorney's Office 1. In recent years the City Attorney's Office previously eliminated 1.5 attorney positions and 1.4 paralegals in order to "right size" the Office. These eliminations represent a 21 % reduction in ~~~ . 2. The City Attorney's Office has a similar level of attorney staffing to other cities based upon comparison of general fund size (ratio of general fund dollars to attorneys). 3. The City Attorney's Office has a similar level of attorney sta1Img to other cities based upon comparison of total employees (ratio of number of employees to attorneys). 4. The City AttorneY's Office has a similar number of attorneys in comparison to nearby similar cities in the Bay Area. . 5. The number of assignments handled by the City Attorney's Office has tripled in the last five years. The City is obtaining excellent results for every dollar spent. 6. Reduction in attorneys would likely lead to an increase in lawsuits due to the drop in preventative law and result in an overall increase in dollars spent on legal costs. 7. Elimination of an attorney and one legal secretary staff would likely lead to an increase in outside counsel costs th'lt would exceed the personnel cost savings. Outside counsel costs 100 • 200% more per hour than in·house legal talent. 8. The City Attorney's Office previously only had one job title for all attorneys other than the City Attorney. The City Attorney introduced tiered job positions that has saved the City more than $104,000 per year. 9. The City Attorney's Office currently handles many functions in-house that are commonly contracted out by other cities. 10. The secretary to attorney ratio in the Palo Alto City Attorncy's Office matches or is close to that of other cities. Number of Attorneys: In Fiscal Year 2001 -2002 the Palo Alto City Attorney's Office had 7.5 attorneys including the City Attorney. In 2004 and 2005, the new City Attorney analyzed the office a.nd ultimately decided, over time, to reduce the attorney count down to six attorneys. This was based upon on analysis of workload and City needs.' It became apparent that the Utilities Department had high outside counsel costs. Effectively one of the general fund attorneys was shifted to work OIl Utilities matters. This resulted in a reduction in Utility Department outside counsel costs. 090514Sd1 01l115& 142 THE HONORABLE CITY COUNCIL May 14, 2009 Page 5 RE: "Parking Lot" Proposal to Layoff one Secretary and one Attorney from City Attorney's Office Senior Assistant City Attorney Grant Kolling is involved primarily in supporting the Utilities Department. This includes Cable and the Fiber Utility. Grant is an expert in many issues related to the Electric Utility. Grant works with Community Services as well and is involved in the future planning for the Palo Alto Municipal Airport. Grant has negotiated and drafted most of the City'S public private partnerships. Assistant City Attorney Donald Larkin represents the Platming and Community Environment Department and the Police Department. Donald advises the Planning and Transportation Committee at meetings. Many cities ccntract out Police Department advisory work, while Palo Alto does this work in-house. Donald also personally works on the City's writ litigation and quality of life prosecution. Donald is an expert in the Subdivision Map Act. Many cities contract out all of their litigation. Palo Alto contracts out only tort litigation. Palo Alto also handles its.municipal code prosecution in-house unlike many cities. Senior Deputy City Attorney Melissa Tronquet is an expert in conflict of interest law. Ibis has greatly reduced our outside counsel costs for conflict advice. Melissa spends a majority of her time on Human Resource issues. Many cities contract out all their Human Resource advisory work, but Palo Alto handles the vast majority in-house. Melissa represents the Library Department. Melissa also works on code enforcement matters. Melissa is working on the Mitchell Park Library and Community Center. By working on legal issues related to the new library in-house we are ensuring that bond proceeds pay for construction of the Library and Community Center and are not spent on outside counsel advising on construction issues. Deputy City Attorney Amy Bartell primarily works for the Utilities Department. She specializes in Water, Wastewater, Gas and Fiber issues. Much of Amy's work was previously completed by outside counsel at a significantly higher hourly rate. In addition, Amy was instnunental in drafting the City's Green Building ordinance. Amy is an expert in Proposition 218 issues and rate matters. As is obvious from this list, each attorney has a full complement of work and cannot be laid off without a significant impact to the City, staff and City Council. Each attorney is currently working at capacity. Most of the attorney's work would not simply disappear if they , were laid off. Instead the work would need to be completed by outside counsel at a far higher hourly rate. . Finally, eliminating an attorney position will only increase the amount of the City'S overall legal costs. A calculation of the average cost of outside counsel for transactional work currently paid by the City revealed that the City pays an average of $283 per hour for transactional work, $336 per hour for litigation and $458 per hour for utilities work. The City pays between $76.00 to $114.00 per hour (including benefits) for an in-house attorney. If the City were to eliminate one position and llse outside counsel to perfonn 1900 090514 sdl 0111158 145 THE HONORABLE CITY COUNCIL May 14,2009 Page 6 RE: "Parking Lot" Proposal to Layoff one Secretary and one Attorney from City Attorney's Office hours (the average billable hours for attorneys in the private sector) the cost to the City would be $538;333 for trartsactional work. The cost to the City is higher for litigation and utilities work. Another way to look at this is to calculate the average cost to the City to have an in-house attorney. The average cost with benefits for an in-house attorney working 1900 hours is $192,960. That same budget would buy only 682 hours of transactional work, 574 hours of litigation support and 421 hours of utilities work if outside counsel were retained to perfonn the same work. Cost of 1900 Billable Hours of Legal Services In House Outside r: :)je\Jilty~ . ··S\t.DeptY} . .. %:; .·Asst..; .... :~Sri !\sst;: .... I Transactional $ 537,700 $ 157,838 $ 174,534 $ 203,175 $ 236292 Liti2ation $ 638,400 $ 157,838 $ 174 534 $ 203,175 $ 236,292 I Utilities $ 870,200 $ 157,838 $ 174,534 $. 203 175 $ 236292 Ratio of Attorneys to Support: We surveyed 14 cities and found that the City of Palo Alto's 2 to 1 (attorney to legal secretary) ratio is common for City Attorney offices in the Bay Area. The 3 to I and 4 to 1 attorney/secretary ratios were typically found to exist in the larger agencies and where other support staff was available to answer phones, file, etc. Those agencies are noted with an asterisk below. Redwood City 1 to 1 : :S~nDriaie':' '.':.' '.': 2 to 1 i Santa Clara 2 to 1 Jl~mar.d~'> ,":,,' , . 2 to.] San Mateo 2 tol Palo Alto 2 to j 'walDutCreek ' .. ,.' 2 to 1 Berkeley 2 to 1 M .. .,gaiiUiII',; c, ;! 2 to 1 Mountain View 2.2 to 1 : Lffe'rUi6fe, 2.25 to 1 Fremont 2.5 to 1 'Qakland .. , •. 2.85 to I' I San Jose 2.9 to 1* Comparison cities outside of the area show similar results. Culver City 2,1 to 1 Santa Monica 2.3 to l' 090514 sdl 0111158 146 THE HONORABLE CITY COUNCIL May 14, 2009 Page 7 RE: "Parking Lot" Proposal to Layoff one Secretary and one Attorney from City' Attorney's Office The City Attorney's office does not have a dedieated receptionist to answer phones; instead the work is done by three Legal Secretaries. The City Attorney's office receives on an average of at least 20 public inquiries by phone each day. These calls range from citizen's who need assistance finding the ,correct public agency to call, those needing assistance with their personal legal matters or needing assistance with getting to the correct department for their questions. In addition, the Office routinely receives a number of walk-ins who either want to see the City Attorney or need a claim form. The Legal Secretaries assist the public with all of these inquiries. Last year the Attorney's office processed over 3,000 work requests. Every agenda item passes through the City Attorney's Office. The Legal Secretaries are responsible for preparing the first draft of the legal documents such as resolutions, ordinances or contracts for the attorney's review. On the second review, the City Manager Reports (staff reports or "CMR's") are checked by the Legal Secretaries to confirm all changes have been made and the proper documents are attached. Due to the high volume of assignments our office receives and the varied deadlines, all assignments are tracked when they come into or go out of the office. The Legal Secretaries work with the Administrative Assistants of the department they support to ensure agenda items stay on track. 'There is a large amount of paper that comes through this office and therefore there is a large amount of filing as well. While it is true that the trend in private law firms is to have a ratio of 3: I for attorneys to secretaries, the two arenas are not comparable. Typically law finns have file clerks and receptionists and City Attorney's Offices do not. A true comparison should be based upon similar work completed in a similar fashion. Private law firms simply do not function in the same fashion responding to the needs of 1,056 on site employees and more than 60,000 residents each day. Due to the small size of the office, it is also necessary to have 3 legal secretaries to provide for adequate coverage in the event someone is out ill or on vacation. This support staffing level is similar to that found throughout the City. The City Attorney's office does not use temporary staff when someone is out of the office. The work is divided between the remaining support staff. Prior 21 % Reduction in Staff In 2006, as part of the Office of the City Attorney's restructuring effort, as attorney vacancies arose, the Office used the opportunity to eliminate some attorney positions and to reclass others in order to create a tiering in the Office that did not previously exist. Until 2005, 09{)514 wi 0111158 147 THE HONORABLE CITY COUNCIL May 14,2009 Page 10 RE: "Parking Lot" Proposal to layoff one Secretary and one Attorney from City Attorney's Office . Number of Lawsuits: Although lawsuits filings are very cyclical the long term trend for the City of Palo Alto has declined from an average over 20 to approximately 15 lawsuits at any given time. It is very difficult to prove that the nature or volume of advice leads to fewer lawsuits. Nonetheless, the average of over 20 was typical prior to the start of the latest City Attorney. Some aspect of this is due to the preventative law practiced by the office in the course of providing advice to the City Council and City staff. Laying off one attorney and one support staff will mean that the rernaining attorneys will be less aecessible and available to provide preventative advice and will I ikely result in more lawsuits due to less preventative law being practiced. Claims: The City of Palo Alto receives approximately 150 claims per year. Most cities contract out the claims function. If handled in-house, the claims function is often placed in the Human Resources or Administrative Services Department. Palo Alto has traditionally housed the claims function in the City Attorney's Offiec. The City Attorney's Oflice briefly contracted out claims. This experiment was not successful as outside handling of claims led to reduced eustomer service with an accompanying 50% increase in the cost of claims handling. Proeessing claims in-house does require a .6 Claims lllVestigator, whieh is part of the City Attorney's Office overall 10.6 FTE head count. In addition the Claims Investigator must be supervised and claims must be monitored by other staff within the office. The City has experienced fewer small elaims court filings in the last year due in part to exeellent elaims processing. Role of the City Attorney's Office: The City Attorney's Office is involved in virtually every initiative undertaken by the City. Due to the myriad of state, federal and loeal laws and regulations every aspect of City activity is highly scrutinized and regulated. The City Attorney's Office negotiates, edits or drafts or reviews every City contract. The Office reviews and edits nearly every staff report and every City Manager Report (CMR). The City Attorney's Office drafts or edits every ordinancc considcred by the City Council or Planning and Transportation Commission. The City Attorney's Office is on most internal committees and provides legal. guidance at every step of every major project. There are few activities at the City that do not involve at least some brief City Attorney advice or review. This high level of City Attorney service to the City Council, staff and the community could not occur without the present level of attorneys and support staff. 09Q5l4sdlOlllll8 150 THE HONORABLE CIIT COUNCIL May 14,2009 Page 11 RE: "Parking Lot" Proposal to Layoff one Secretary and one Attorney from City Attorney's Office Conclusion: The City Attorney recommends against laying off one attorney and one support staff as the Office has already reduced department FTE by 21 % over the last four budget years. For the current fiscal year the City Attorney has already reduced the Office budget by an additional 2.5%. Reducing FTE by another 20% would only increase outside counsel costs and decrease level of service to City staff and the Community. The City Attorney's Office has a similar level of attorney staffing compared to other cities based upon ratio of general fund dollars to attorneys; ratio of city employees to attorneys and number of in-house attorneys in local, comparable jurisdictions. Should the Office reduce the number of attorneys and support staff, chances are that lawsuits would increase due to the drop in preventative law and result in an overall increase in dollars spent on legal costs as most of the legal work would need to' be contracted to outside firms at the highest cost. Lastly the City Attorney's Office manages many legal functions that many cities contract out, and does so at a lower cost with a higher level of service. GMB:sdl cc: James Keene, City Manager Steve Emslie, Deputy City Manager Kelly Morariu, Deputy City Manager Lalo Perez, Administrative Services Director 090311 3dl Ollli sa Respectfully submitted, dft1~ ~M.BAUM City Attorney 151 This page is intentionally left blank. 152 APPENDIX 7 153 This page is intentionally left blank. 154 155 ATTACHMENT 1 PROPOSED STRATEGY ESTIMATED NET SAVINGS Elimination of contract funding for the annual Sidewalk Replacement Program with shift of responsibility for sidewalk repair to residents ($500,000) Contracting out of some tree trimming/line clearing and elimination of four full-time positions (386,000) The elimination of the Traffic Team will cut five full-time Police Officer positions (887,000) Elimination of one Program Coordinator position serving the centralized community outreach program, including Neighborhood Watch, Citizen and Student Academies, Community Newsletter, Community Events and Fairs, Community Education Programs, Coordination of the Officer Request for Services Programs, coordinating public education efforts in Emergency Preparedness with Block Coordinators, Neighborhood Watch Captains and PANDA (103,000) Funding for school crossing guards eliminated (345,000) Reduction of HSRAP funding (50,000) Library hours shortened and the closure of the Library on Mondays at Main, Mitchell and the Children's Library will eliminate two full-time and one part-time position (215,000) The re-opening of the College Terrace Library delayed an additional eight months to June 30, 2011 (74,000) Book collection funds for the Libraries reduced (117,000) Partial cost recovery increases are proposed through increased participation and/or admission fees for many programs including Junior Museum and Zoo, Art Center Gallery, Children's Theatre productions, recreation classes, art classes, nature interpretive program, and the science outreach program, Animal Services, HazMat inspection fees and Planning fees. Shuttle services will be reduced to hourly stops at limited locations eliminating the service for the Noon shuttle and Marguerite shuttle and reducing the Cross-town shuttle to one bus (196,000) Elimination of the twilight concert and brown-bag summer concert series (27,000) Elimination of one full-time Child care position and reduction of one Family Resources Coordinator position to a half-time position in the Community Services Department (139,000) The proposed contracting out of Lawn Bowling Maintenance eliminates one full-time position (45,000) Day use fees at Foothills, Arastradero and Baylands parks are proposed (100,000) The proposed contracting out of park maintenance at Mitchell Park and Rinconada will eliminate four full-time positions (147,000) City of Palo Alto Proposed Budget Balancing Recommendations for Fiscal Year 2011 General Fund Continued on next page 156 ATTACHMENT 1 PROPOSED STRATEGY ESTIMATED NET SAVINGS Vehicle replacement funding for the City's fleet/equipment purchases was reduced by $483,000. A review of the size of City's fleet has been undertaken to further reduce future fleet/equipment expenditures.($483,000) Employee training and education reduced Citywide across all departments (92,000) Elimination of funding for building maintenance services resulting in the reduction of three full-time building maintenance positions (230,000) Contracting out custodial services will eliminate five positions (387,000) The City will be seeking 50 percent cost sharing from the PAUSD for the School Resource Officer position (83,000) Elimination of two full-time positions in Police investigative services that investigate cases of financial loss, and fraud (332,000) Elimination of a Fire Hazmat Position with future plan checking services provided by hourly employees (117,000) The proposed contracting out of golf course maintenance includes the elimination of seven full-time maintenance positions (236,000) The proposed reorganization of the Community Services department eliminates one Division Manager position (185,000) Elimination of a building inspector and senior planner eliminates two positions in Planning (295,000) The reorganization and contracting out of the Print and Mail shop includes the elimination of two full-time positions and one temporary position in the Administrative Services Department (222,000) Elimination of administrative support organization-wide resulting in the elimination of seven positions (462,000) Reductions in the City Attorney's outside legal funds (145,000) Reduction of one full-time position in information technology (159,000) Reduction of one full-time position responsible for customer service and revenue collection (90,000) Reduction in Overtime- Citywide (42,000) Reduction in Office Machines and Equipment – Citywide (20,000) Reduction in Office supplies, Books and Publications - Citywide (36,000) Reduction in Advertising and Publishing - Citywide (27,000) General Fund Cost Plan and Allocated Charges Reduction (1,016,000) General Fund Position Reallocations to Utilities (4.35 FTE’s)(511,000) Total Budget Balancing Recommendations ($8,501,000) Proposed Budget Balancing Recommendations, continued 157 Operating Budget FY 2011 City of Palo Alto Human Resources 97 COUNCIL PRIORITY IMPLEMENTATION In Fiscal Year 2011, the Human Resources Department will address the City Council's Top Priorities as follows: City Finances • Human Resources will continue to explore opportunities for restructuring, controlling benefits costs, and reducing workers' compensation costs, as well as pursuing other opportunities for cost reductions Emergency Preparedness • Participate directly in Emergency Operation Center (EOC), health/safety programs, and the coordination of safety drills and other areas related to emergency preparedness Environmental Sustainability • Continued participation in City-wide environmental initiatives including the organization's Climate Protection Plan DEPARTMENT SUMMARY FY 2009 Actuals FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted-in- Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change % Chg Administration/Employee-Org Development and HR Systems 557,257 822,952 766,512 836,051 759,466 (7,046) (1%) EmployeeRelations/Labor Relations 584,984 767,726 783,736 782,721 800,427 16,691 2% Benefits/Compensation 471,773 435,554 441,350 444,427 344,899 (96,451) (22%) Recruitment 635,547 483,256 479,123 495,757 465,363 (13,760) (3%) Risk Mgmt/Safety/Worker's Com- pensation 450,711 327,403 324,511 338,908 447,261 122,750 38% TOTAL EXPENDITURES $2,700,272 $2,836,891 $2,795,232 $2,897,864 $2,817,416. $22,184 1% TOTAL REVENUES $1,457,252 $1,351,604 $1,351,604 $1,400,888 $1,175,502 $(176,102) (13%) INTERNAL REVENUES 1,429,252 1,351,604 1,351,604 1,400,888 1,175,502 (176,102) (13%) EXTERNAL REVENUES 28,000 0 00000% 158 Human Resources City of Palo Alto Operating Budget FY 201198 INPUTS FY 2009 Actuals FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted-in- Concept Budget FY 2011 Proposed Budget Salaries and Benefits 2,195,702 2,341,135 2,341,135 2,402,108 2,366,884 Contract Services 295,408 222,535 175,975 222,535 167,071 Supplies and Materials 19,054 26,880 26,880 26,880 21,280 Facilities and Equipment Purchases 10,409 8,989 8,989 8,989 3,989 General Expense 71,366 44,159 47,228 44,159 27,924 Rents and Leases 43,000 43,000 43,000 43,000 43,000 Allocated Charges 65,344 150,193 152,025 150,193 187,268 TOTAL EXPENDITURES $2,700,283 $2,836,891 $2,795,232 $2,897,864 $2,817,416 TOTAL REVENUES $1,457,252 $1,351,604 $1,351,604 $1,400,888 $1,175,502 Total Full Time Positions 16.00 16.00 16.00 16.00 16.00 Total Temporary Positions 0.04 0.34 0.34 0.34 0.34 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09 FY 2009-10 Workers' Compensation Estimated Incurred Cost (in $000's) 159 Operating Budget FY 2011 City of Palo Alto Human Resources 99 BENCHMARKING MEASURES FY 2009 Actuals FY 2010 Adjusted Budget FY 2011 Proposed Budget Workload Outputs: 1. Number of training hours 8710 3250 2600 2. Number of new hires processed 130 125 100 3. Number of grievances filed 13 15 20 4. Number of labor agreements negotiated 144 5. Number of Workers' Compensation Claims 133 130 132 Efficiency: 1. Number of employees who completed a training course 716 260 200 2. Number of sick leave hours utilized by new hires 685 350 300 3. Number of grievances to arbitration 011 4. Number of unfair labor practices upheld by Public Employment Relations Board 000 5. Average cost per Workers' Compensation claim $9048 $3754 $4000 Effectiveness: 1. Percent of classes offered and delivered 94% 94%95% 2. Percentage of first year turnover (SEA)8% 8%6% 3. Cost of settlement payout related to grievances $0 $5920 $8000 4. Number of labor agreements implemented within 90 days of Council authorization 122 5. Number of Workers' Compensation claims closed 149 130 125 RESOURCE LEVEL CHANGES FY 2011 Ongoing FY 2011 One-Time FY 2011 Total REVENUE CHANGES Increase allocated revenues - internal 176,102 176,102 TOTAL REVENUE CHANGES $176,102 $0 $176,102 EXPENDITURE CHANGES Salary and Benefits Freeze Human Resources Director position beginning midyear (113,703)(113,703) Personnel Benefit Costs Increase (Note 2) 139,452 139,452 Total Salary and Benefits Changes $0 $25,749 $25,749 Adjustments (Note 1)0 NET SALARY AND BENEFITS CHANGES $0 $25,749 $25,749 Non-Salary Eliminate non-mandatory employee training (28,050)(28,050) 160 Human Resources City of Palo Alto Operating Budget FY 2011100 RESOURCE LEVEL NOTES Note 1: Adjustments include one-time revenue and appropriation changes from the prior year that did not carry forward from the FY 2010 budget. Note 2: Personnel benefit costs have changed mainly due to reductions in proposed staffing levels and a change in methodology of estimating benefit costs. Note 3: Allocated charges have increased due to changes in staffing levels, methodology of estimating benefit costs, and reductions in non-salary appropriations. SERVICE LEVEL CHANGES There will be a reduction in Human Resources services due to budget cuts that will directly affect non- mandatory employee training as well as other personalized employee services. Programs such as the Management Talent Exchange Program (MTEP) and the Supervisor, Lead, and Management Academies have been deferred. Training will focus only on mandatory safety and other essential courses such as policy and procedures, performance appraisal, and New Employee Orientation. Annual Employee Recognition Event has been deferred. Staff membership and participation in professional conferences or meetings have been reduced or eliminated. Elimination of contract agency personnel funds may impede progress on the Management/Professional Compensation Study. Defer records retention and various equipment upgrades (13,000)(13,000) Reduce compensation study resources (8,114)(8,114) Reduce allocation for potential investigation (7,000)(7,000) Reduce travel and meeting expense (6,585)(6,585) Defer Employee Recognition Picnic (4,500)(4,500) Reduction in other administrative expense (office supplies, advertising) (15,050)(15,050) Allocated charge increase (Note 3) 35,243 35,243 Total Non-Salary $(25,942) $(21,114)$(47,056) Adjustments (Note 1) 43,491 43,491 NET NON-SALARY CHANGES $(25,942) $22,377 $(3,565) NET EXPENDITURE CHANGES $(25,942) $48,126 $22,184 RESOURCE LEVEL CHANGES FY 2011 Ongoing FY 2011 One-Time FY 2011 Total 161 162 163 ATTACHMENT 1Community Services Department (CS) 2011 Proposed Budget Budget Balancing Summary Ongoing One-time Total Revenues: CS1.1 Admission donation - Junior Museum and Zoo (JMZ)25,000 25,000 CS1.2. Admission donation -Art Center Gallery 25,000 25,000 CS1.3 Open Space day use fees (Foothills, Baylands and Arastradero)100,000 100,000 CS1.4 Fund raising from Friends and support groups 50,000 50,000 200,000 200,000 CS2.1 Children's Theatre productions 100,000 100,000 CS2.2 JMZ education class 75,000 75,000 CS2.3 Art Classes 50,000 50,000 CS2.4 Science Outreach Program 79,000 79,000 CS2.5 Community Theatre 42,000 42,000 CS2.6 Nature Interpretive Program 50,000 50,000 CS2.7 Various recreation classes 50,000 50,000 Budget Balancing Revenue Summary 646,000 646,000 Expenditures: Service Level Reduction CS3. Family Resources Foundation reduction (50,836) (50,836) CS4. Golf Course maintenance Increase contract services 420,000 420,000 Reduce planting materials (50,000) (50,000) Eliminate 7.0 FTEs (565,152) (565,152) Total Cost Decrease - 9 months (195,152) (195,152) Total Cost Decrease - full year (292,435) (292,435) CS5. Parks and Lawn Bowling Green Maintenance. Increase contract services 20,000 20,000 Eliminate 1.0 FTE (92,153) (92,153) Total Cost Decrease - 9 months (72,153) (72,153) CS6. Cubberley contract out maintenance (portion) Increase contract services 100,000 100,000 Eliminate 2.0 FTEs (153,120) (153,120) Total Cost Decrease (53,120) (53,120) CS7. Mitchell and Rinconada park maintenance Increase contract services 127,000 127,000 5/11/2010 4:48 PM164 ATTACHMENT 1Community Services Department (CS) 2011 Proposed Budget Budget Balancing Summary Ongoing One-time Total Eliminate 4.0 FTE (368,614) (368,614) Total Cost Decrease - 9 months (241,614) (241,614) CS8. Reduce HSRAP funding (50,000) (50,000) CS9. Eliminate summer concert series (27,000) (27,000) CS10. Recreation and Art Center reorganization Eliminate 3.0 FTE (276,105) (276,105) CS11. Transfer management of Community Theatre to Children's Theatre staff Eliminate 1.0 FTE (118,912) (118,912) CS12. Reorganize management of Cubberly Community Center and Human Services division Eliminate 2.0 FTE (336,385) (336,385) Budget Balancing Expenditure Summary (1,421,277) CS13. Revise "Fee Reduction Program" to limit eligibility to youth, seniors and disabled; reduce the discount from a range of 50% and 75% to 25% or 50% based on income (60,000) (60,000) Budget Balancing Summary 2,007,277 Total FTE Reductions: Regular 20.50 FTE (12.5, filled) 5/11/2010 4:48 PM165 Community Services Department Organizational Chart 1.0 COMMUNITY SERVICES DIRECTOR Greg Betts RECREATION AND CUBBERLEY ADMINISTRATION 1.0-Division Mgr, Recreation & Golf 0.75-Admin Associate III RECREATION 2.0-Supervisor, Recreation Programs 4.0-Coordinator, Recreation Programs 1.0-Building Service Person 175-Program Assistant I CUBBERLEY CENTER 1.0-Sr Supervisor, Program Manager 2.0-Program Assistant I 2.0-Building Serviceperson-Lead 1.0-Building Serviceperson 1.0-Program Assistant II 0.75- Prod Arts/Science Program Fiscal Year 2011 Position Totals:74.75 Full-time 54.96 Hourly ARTS & SCIENCES ADMINISTRATION 1.0- Division Mgr, Arts & Sciences ART CENTER 1.0- Manager, Arts 4.25-Producer Arts 1.0-Program Assistant I 1.0- Program Assistant II 0.5-Volunteer Coordinator CHILDREN’S & COMMUNITY THEATRE 1.0- Manager, Arts 1.0-Theatre Specialist 1.0-Program Assistant I 3.0-Producer Arts YOUTH SCIENCES & INTERPRETIVE 1.0- Supervisor, Jr Museum 4.0- Producer Arts/Science Program 1.0-Program Assistant I 2.25 - JMZ Educator OPEN SPACE, PARKS & GOLF ADMINISTRATION 1.0-Division Mgr, Open Space & Parks 1.0-Program Assistant II OPEN SPACE 2.0-Supervisor, Open Space 5.0-Park Ranger PARKS ADMINISTRATION 1.0-Park Superintendent CITY PARKS & FACILITIES 2.0-Inspector, Field Services 2.0-Sprinkler System Repair Person 1.0-Parks Crew-Lead 1.0-Parks Maintenance Person ATHLETIC FIELD MAINTENANCE PROGRAM 1.0-Supervisor, Parks 1.0-Parks Crew-Lead 2.0-Sprinkler System Repair Person 5.0-Park Maintenance Person 1.0-Park Maintenance Lead CAPITAL PROJECTS 1.0 - Program Assistant 1 GOLF 1.0-Superintendent, Golf Course Community Services Department Organizational Chart ADMINISTRATION 1.0-Administrative Assistant 1.0-Senior Administrator HUMAN SERVICES 1.0-Sr Supervisor, Recreation Program 1.0-Management Assistant 0.5-Coordinator, Recreation Program *Note: CSD Org Chart reflects a proposed restructure. 166 Summary of Position Changes Operating Budget FY 2011 City of Palo Alto 1 Summary of Position Changes FTE GENERAL FUND FY 2010 ADOPTED BUDGET 622.51 FY 2010 BAO Position Adjustments Tree Maintenance Person (PWD)(2.00) Tree Maintenance Specialist (PWD)2.00 FY 2010 ADJUSTED TOTAL 622.51 FY 2011 New Positions Administrator (CMO)0.50 FY 2011 Total New Positions 0.50 FY 2011 Reclassified Positions Supervisor, Recreation Programs (2.00) Senior Supervisor, Recreation Programs 2.00 Transportation Manager (PCE)(1.00) Chief Transportation Official (PCE)1.00 FY 2011 Total Reclassified Positions 0.00 FY 2011 Reallocated Positions Business Analyst (ASD)(0.10) Contracts Administrator (ASD)(0.60) Senior Business Analyst (ASD)(0.20) Senior Engineer (PWD)(0.10) Senior Financial Analyst (ASD)(1.10) Warehouse Supervisor (ASD)(0.50) Assistant to City Manager (CMO)(0.45) Planner (PCE)(0.30) Senior Deputy City Attorney (ATT)(1.00) FY 2011 Total Reallocated Positions (4.35) FY 2011 Eliminated Positions Accounting Specialist (ASD)(1.00) Administrative Associate III (ASD)(0.96) Administrative Associate II (CMO)(1.00) Administrative Associate I (CSD)(2.00) Building Serviceperson (CSD)(2.00) Coordinator Child Care (CSD)(1.00) Supervisor, Recreation Programs (2.00) Senior Supervisor, Recreation Programs 2.00 167 Table of Organization City of Palo Alto Operating Budget FY 20118 Senior Accountant 4.00 3.00 3.00 3.00 3.00 0.00 Senior Business Analyst (12) 0.20 0.20 0.20 0.20 0.00 (0.20) Senior Financial Analyst (4), (5) 7.91 6.91 6.91 6.91 5.81 (1.10) Senior Buyer 0.00 0.00 0.00 0.00 0.00 0.00 Staff Accountant 3.00 2.00 2.00 2.00 2.00 0.00 Staff Secretary 0.00 0.00 0.00 0.00 0.00 0.00 Storekeeper 1.00 0.00 0.00 0.00 0.00 0.00 Storekeeper - Lead 1.00 1.00 1.00 1.00 1.00 0.00 Warehouse Supervisor (6) 1.00 1.00 1.00 1.00 0.50 (0.50) TOTAL ADMINISTRATIVE SERVICES 48.95 41.95 41.95 41.95 37.49 (4.46) Community Services Department Administrative Assistant 1.00 1.00 1.00 1.00 1.00 0.00 Administrative Associate I (9) 2.50 2.00 2.00 2.00 0.00 (2.00) Administrative Associate III 0.00 0.75 0.75 0.75 0.75 0.00 Administrator Special Events 0.00 0.00 0.00 0.00 0.00 0.00 Arts and Culture Division Manager 1.00 1.00 1.00 1.00 1.00 0.00 Building Serviceperson (9) 4.00 4.00 4.00 4.00 2.00 (2.00) Building Serviceperson - Lead 2.00 2.00 2.00 2.00 2.00 0.00 Coordinator, Child Care (9) 1.00 1.00 1.00 1.00 0.00 (1.00) Coordinator, Recreation Programs (9) 5.00 5.00 5.00 5.00 4.50 (0.50) Cubberley Center and Human Svc Div Mgr (9) 1.00 1.00 1.00 1.00 0.00 (1.00) Director, Community Services 1.00 1.00 1.00 1.00 1.00 0.00 Division Manager, Golf & Parks 0.00 0.00 0.00 0.00 0.00 0.00 Division Manager, Recreation & Golf 1.00 1.00 1.00 1.00 1.00 0.00 Division Manager, Rec and Youth Sciences 0.00 0.00 0.00 0.00 0.00 0.00 Golf Course Equipment Mechanic (9) 1.00 1.00 1.00 1.00 0.00 (1.00) Golf Course Maintenance Person (9) 5.00 4.00 4.00 4.00 0.00 (4.00) Inspector, Field Services 2.00 2.00 2.00 2.00 2.00 0.00 Jr. Museum & Zoo Lead Educator 0.00 2.25 2.25 2.25 2.25 0.00 Jr. Museum & Zoo Lead Instructor 0.00 0.00 0.00 0.00 0.00 0.00 Management Assistant 1.00 1.00 1.00 1.00 1.00 0.00 Manager, Arts 2.00 2.00 2.00 2.00 2.00 0.00 FY 2009 Actuals FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted- in-Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change 168 Operating Budget FY 2011 City of Palo Alto Table of Organization 9 Open Space and Parks Division Manager 1.00 1.00 1.00 1.00 1.00 0.00 Park Maintenance Lead 1.00 1.00 1.00 1.00 1.00 0.00 Park Maintenance Person (9) 11.00 11.00 11.00 11.00 6.00 (5.00) Park Ranger 5.00 5.00 5.00 5.00 5.00 0.00 Parks and Open Space Assistant 0.00 0.00 0.00 0.00 0.00 0.00 Parks Crew - Lead (9) 3.00 3.00 3.00 3.00 2.00 (1.00) Producer Arts/Science Programs (9)12.50 13.00 13.00 13.00 12.00 (1.00) Program Assistant I (9) 12.00 7.75 7.75 7.75 6.75 (1.00) Program Assistant II 3.00 3.00 3.00 3.00 3.00 0.00 Senior Administrator 1.00 1.00 1.00 1.00 1.00 0.00 Senior Ranger 1.00 0.00 0.00 0.00 0.00 0.00 Senior Supervisor, Recreation Program (14)0.00 0.00 0.00 0.00 0.00 0.00 Sprinkler System Repairer (9)5.00 5.00 5.00 5.00 4.00 (1.00) Superintendent, Golf Course 1.00 1.00 1.00 1.00 1.00 0.00 Superintendent, Parks 1.00 1.00 1.00 1.00 1.00 0.00 Supervisor, Junior Museum 1.00 1.00 1.00 1.00 1.00 0.00 Supervisor, Open Space 1.00 2.00 2.00 2.00 2.00 0.00 Supervisor, Parks 1.00 1.00 1.00 1.00 1.00 0.00 Supervisor, Recreation Program (14)4.00 4.00 4.00 4.00 4.00 0.00 Theater Specialist 1.00 1.00 1.00 1.00 1.00 0.00 Volunteer Coordinator 0.50 0.50 0.50 0.50 0.50 0.00 TOTAL COMMUNITY SERVICES 96.50 94.25 94.25 94.25 73.75 (20.50) Fire Administrative Assistant (9)1.00 1.00 1.00 1.00 0.00 (1.00) Administrative Associate II 4.00 4.00 4.00 4.00 4.00 0.00 Battalion Chief 3.00 3.00 3.00 3.00 3.00 0.00 Deputy Fire Chief/Fire Marshal 0.84 0.84 0.84 0.84 0.84 0.00 Deputy Fire Chief EMT 2.00 2.00 2.00 2.00 2.00 0.00 Deputy Fire Chief OPS/Support 0.00 0.00 0.00 0.00 0.00 0.00 EMS Chief 1.00 0.00 0.00 0.00 0.00 0.00 EMS Coordinator 1.00 1.00 1.00 1.00 1.00 0.00 EMT Basic 3.00 0.00 0.00 0.00 0.00 0.00 FY 2009 Actuals FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted- in-Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change 169 Table of Organization City of Palo Alto Operating Budget FY 201116 3 Reallocate 0.60 FTE Contracts Administrator to Other Funds - Capital 4 Reallocate 0.50 FTE Senior Financial Analyst to Utilities 5 Reallocate 0.60 FTE Senior Financial Analyst to Other Funds - Capital 6 Reallocate 0.50 FTE Warehouse Supervisor to Utilities 7 Reallocate 0.05 FTE Assistant to City Manager to Planning and Community Environment, 0.10 FTE to Public Works - Enterprise and 0.35 FTE to Utilities 8 Reallocate 0.30 FTE Planner to Utilities 9 Elimination of various positions due to budget constraints 10 Reallocate 1.0 FTE Senior Deputy City Attorney to Utilities 11 Transfer 0.10 FTE Business Analyst to Technology Fund 12 Transfer 0.20 FTE Senior Business Analyst to Technology Fund 13 Transfer 0.10 FTE Senior Engineer to Public Works - Enterprise Fund 14 Reclassification of 2.0 FTE Supervisor, Recreation Programs to Senior Supervisor, Recreation Programs ENTERPRISE FUNDS Public Works Department Refuse, Storm Drainage and Wastewater Treatment Accounting Specialist 0.00 0.46 0.46 0.46 0.46 0.00 Administrator, Refuse 1.00 1.00 1.00 1.00 1.00 0.00 Assistant Director, Public Works 0.75 0.75 0.75 0.75 0.75 0.00 Assistant to City Manager (13) 0.00 0.00 0.00 0.00 0.10 0.10 Administrative Associate II 3.00 3.20 3.20 3.20 3.20 0.00 Asst Manager, Water Quality Control Plant 1.00 1.00 1.00 1.00 1.00 0.00 Associate Engineer 3.30 3.30 3.30 3.30 3.30 0.00 Associate Planner 1.00 1.00 1.00 1.00 1.00 0.00 Business Analyst 1.13 1.13 1.13 1.13 1.13 0.00 Buyer 1.00 1.00 1.00 1.00 1.00 0.00 Chemist 3.00 3.00 3.00 3.00 3.00 0.00 Coordinator Environmental Protection 0.00 0.00 0.00 0.00 0.00 0.00 Coordinator Recycling 0.00 0.00 0.00 0.00 0.00 0.00 Coordinator Zero Waste 2.00 2.00 2.00 2.00 2.00 0.00 Deputy Fire Chief/Fire Marshal 0.08 0.08 0.08 0.08 0.08 0.00 Electrician 3.00 3.00 3.00 3.00 3.00 0.00 FY 2009 Actuals FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted- in-Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change 14 Reclassification of 2.0 FTE Supervisor, Recreation Programs to Senior Supervisor, Recreation Programs 170 ATTACHMENT 3 Community Services Department Proposed Amendment to the FY 2011 Proposed Budget Change in Salary and Benefits Reduction Calculation FY 2011 Proposed Full Salary and Benefits Savings Change Summary Assumes 3 mo. Salary useage for tranisition period Proposed Amendment Salary Benefits Total Salary Benefits Total Salary Benefits Total Arts and Sciences Elimination of 1.0 FTE Program Assistant I $47,018 $34,468 $81,486 $62,691 $35,420 $98,111 $15,673 $953 $16,625 Elimination of 1.0 FTE Producer, Arts and Science 56,987 41,776 98,762 75,982 42,930 118,912 18,996 1,154 20,150 104,005 76,243 180,248 138,673 78,350 217,023 34,668 2,107 36,775 Cubberley and Human Services Elimination of 1.0 FTE Cubberley Center and Human Services Division Manager 128,940 68,711 197,651 128,940 68,983 197,923 0 272 272 Elimination of 1.0 FTE Child Care Coordinator 90,501 48,233 138,734 90,501 48,418 138,919 0 185 185 Elimination of 2.0 FTE Building Service Person 98,800 54,320 153,120 98,800 55,822 154,622 0 1,502 1,502 Elimination of 0.5 FTE Coordinator, Recreation Programs (Family Resources Program)32,802 18,035 50,836 32,802 18,533 51,334 0 498 498 351,043 189,299 540,341 351,043 191,756 542,798 0 2,457 2,457 Open Space and Parks Elimination of 5.0 FTE Park Maintenance Person 264,978 147,159 412,137 294,420 166,347 460,767 29,442 19,188 48,630 Recreation and Golf Elimination of 4.0 FTE Golf Maintenance Person 176,655 97,245 273,900 235,540 133,080 368,620 58,885 35,835 94,720 Elimination of 1.0 FTE Golf Course Equipment Mechanic 63,794 35,172 98,966 63,794 36,044 99,838 0 872 872 Elimination of 1.0 FTE Sprinkler System Repairer 59,883 33,021 92,904 59,883 33,834 93,717 0 813 813 Elimination of 1.0 FTE Parks Crew Lead 64,064 35,318 99,382 64,064 36,196 100,260 0 878 878 Elimination of 2.0 FTE Administrative Associate I 85,301 4,000 89,300 113,734 64,260 177,994 28,434 60,260 88,694 449,697 204,756 654,452 537,015 303,413 840,428 87,319 98,658 185,976 Total Salary and Benefits Changes $1,169,722 $617,456 $1,787,178 $1,321,151 $739,867 $2,061,017 $151,429 $122,411 $273,839 Additional Salary and Benefits Savings 5/11/2010 4:17 PM 171 172 173 174 175 176 177 178 179 180 181 ATTACHMENT 5Human Resources Department (HR) 2011 Proposed Budget Budget Balancing Summary Ongoing One-time Total Expenditures: HR1. Freeze HR Director position beginning midyear Salary and benefits savings 122,566 122,566 WOC pay for Asst HR Director (8,863) (8,863) 113,703 113,703 Service Level Reduction HR2. Eliminate non-mandatory training Program and project expense 28,050 28,050 28,050 28,050 HR3. Various non-salary reductions Defer purchase of equipment upgrades 13,000 13,000 Travel and meeting expense 6,585 6,585 Administrative expense Office supplies 5,250 5,250 Books, films, and publications 500 500 Telephone and non-city utilities 1,300 1,300 Advertising and publishing 3,000 3,000 Recruitment expense 1,000 1,000 Relocation expense 4,000 4,000 Service Level Reductions: Compensation study resources 8,114 8,114 Allocation for potential employee investigations 7,000 7,000 Defer Employee Recognition Picnic 4,500 4,500 46,135 8,114 54,249 Budget Balancing Expenditures 74,185 121,817 196,002 Budget Balancing Summary 196,002 Total FTE Reductions: Regular none Hourly none 5/11/2010 4:25 PM 182 ATTACHMENT 6 Planning and Community Environment (PCE) 2011 Proposed Budget Budget Balancing Summary Ongoing One-time Total Revenues: Increase in Service Fees/Licensing 55,000 - 55,000 55,000 - Decrease Permits (48,500) - (48,500) (48,500) - Expenditures: Service Level Reduction PCE1. Eliminate Shuttle Services Noon Shuttle (30,300) - (30,300) Marguerite Shuttle (20,000) - (20,000) Crosstown Shuttle (145,782) - (145,782) (196,082) - PCE2. Eliminate Vacant Positions 1.0 FTE Building Inspector Specialist (135,742) - (135,742) 1.0 FTE Administrative Associate I (88,997) - (88,997) 1.0 FTE Senior Planner (158,886) - (158,886) (383,625) - PCE3. Eliminate Filled Positions 1.0 FTE Building/Planning Technician (104,329) - (104,329) 1.0 FTE Code Enforcement Officer (122,135) - (122,135) (226,464) - PCE4. Reallocations 0.30 FTE Planner to Utilities (41,260) - (41,260) 0.05 FTE Assistant to CM Sustainability (41,260) - PCE5. Increase in change from Transportation Manager to Chief Transportation Official 30,077 - 30,077 30,077 - 5/11/2010 4:22 PM 183 ATTACHMENT 6 Planning and Community Environment (PCE) 2011 Proposed Budget Budget Balancing Summary Ongoing One-time Total PCE6. Decrease Temporary Salaries (9,000) - (9,000) (9,000) - PCE7. Decrease GIS Planning (21,753) - (21,753) (21,753) - PCE8. Decrease various Non-salary expenses (36,460) - (36,460) (36,460) - Budget Balancing Expenditures (884,567) - (884,567) Budget Balancing Summary (884,567) Total FTE Reductions: Regular 5.25 FTE (3 vacant, 2 filled, net .25 reallocation) Hourly 0.71 FTE (increase) 5/11/2010 4:22 PM 184 ATTACHMENT 7 City Attorney's Office (ATT) 2011 Proposed Budget Budget Balancing Summary Ongoing One-time Total Revenues: No changes Expenditures: Service Level Reduction ATT1. Reallocate Sr Deputy City Attorney 116,356 - 116,356 116,356 - ATT2. Decrease Temporary Salaries 21,200 - 21,200 21,200 - ATT3. Decrease Arbitration 20,000 - 20,000 20,000 - ATT4. Decrease various Non-Salary 24,400 - 24,400 24,400 - ATT5. Decrease Legal Contingency 145,000 - 145,000 145,000 - Budget Balancing Expenditures 326,956 - 326,956 Budget Balancing Summary 326,956 Total FTE Reductions: Regular 1.0 FTE (1 position, filled - reallocation) Hourly 0.41 FTE (1 position, temporary summer clerk) 5/11/2010 4:22 PM 185 Operating Budget FY 2011 City of Palo Alto City Attorney 33 • Provide legal support on green purchasing initiatives • Provide legal advice on compost options • Draft recycling ordinance • Provide legal advice related to green building ordinance and implementation of new California Green Building code Emergency Preparedness • Assist in workplace violence prevention training • Provide legal advice, review and support for emergency preparedness teams and related disaster/emergency preparedness projects • Community Collaborative for Youth Health and Wellbeing • Work with the District Attorney to develop policies for Police Department interaction with juvenile crime victims and suspects • Assist with negotiation of management services agreement with Comcast for I-Net benefits on behalf of Palo Alto Unified School District DEPARTMENT SUMMARY FY 2009 Actuals FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted-in- Concept Budget FY 2011 Proposed Budget FY 2011 Budget Change % Chg Administration 98,448 202,501 203,757 204,942 209,110 5,353 3% Consultation and Advisory 1,822,147 1,766,540 1,766,540 1,802,893 1,554,614 (211,926) (12%) Litigation and Dispute Resolution 413,693 466,250 419,692 470,647 476,897 57,205 14% Official and Administration Duties 139,408 133,269 133,269 135,636 128,075 (5,194) (4%) TOTAL EXPENDITURES $2,473,696 $2,568,560 $2,523,258 $2,614,118 $2,353,536 $(154,562) (6%) TOTAL REVENUES $1,287,154 $1,159,170 $1,159,170 $1,175,622 $1,389,877 $230,707 21% INTERNAL REVENUES 1,196,693 1,088,170 1,088,170 1,104,622 1,318,877 230,707 21% EXTERNAL REVENUES 90,461 71,000 71,000 71,000 71,000 0 (0%) 186 City Attorney City of Palo Alto Operating Budget FY 201134 INPUTS FY 2009 Actuals FY 2010 Adopted Budget FY 2010 Adjusted Budget FY 2011 Adopted-in- Concept Budget FY 2011 Proposed Budget Salaries and Benefits 1,945,040 2,009,921 2,009,921 2,055,479 1,847,343 Contract Services 463,904 391,359 344,801 391,359 364,759 Supplies and Materials 22,802 38,000 38,000 38,000 26,500 Facilities and Equipment Purchases 760 2,000 2,000 2,000 1,000 General Expense 24,265 30,480 30,480 30,480 28,680 Rents and Leases 5,994 5,500 5,500 5,500 2,000 Allocated Charges 10,931 91,300 92,556 91,300 98,414 TOTAL EXPENDITURES $2,473,696 $2,568,560 $2,523,258 $2,614,118 $2,368,696 TOTAL REVENUES $1,287,154 $1,159,170 $1,159,170 $1,140,622 $1,389,877 Total Full Time Positions 10.60 10.60 10.60 10.60 9.60 Total Temporary Positions 0.95 0.95 0.95 0.95 0.54 0 500 1000 1500 2000 2500 3000 3500 FY04-05 FY05-06 FY06-07 FY07-08 FY08-09 Annual Number of Assignments 187 Operating Budget FY 2011 City of Palo Alto City Attorney 35 BENCHMARKING MEASURES FY 2009 Actuals FY 2010 Adjusted Budget FY 2011 Proposed Budget Workload Outputs: 1. Number of work requests processed (SEA)2957 2750 2970 2. Number of claims opened and handled (SEA)135 135 150 3. Number of code enforcement matters referred to City Attorney 777 Efficiency: 1. Ratio of work requests per attorney 496 496 496 2. Percent of claims investigations commenced within 7 days of receipt of claim by department 96% 96%96% 3. Percent of requests for code enforcement legal support responded to within 10 working days 100% 100%100% Effectiveness: 1. Percent of work requests completed within established time frames - time frame varies based on type of work request 97% 97%97% 2. Percent of claims resolved within 9 months 97% 97%97% RESOURCE LEVEL CHANGES FY 2011 Ongoing FY 2011 One-Time FY 2011 Total REVENUE CHANGES Increase allocated revenue-internal (230,707)(230,707) TOTAL REVENUE CHANGES $(230,707)$0 $(230,707) EXPENDITURE CHANGES Salary and Benefits Transfer 1.0 FTE Senior Deputy City Attorney to Utilities (116,356)(116,356) Reduce Temporary Salaries (21,200)(21,200) Personnel Benefit Costs Decrease (Note 2) (25,026)(25,026) Total Salary and Benefits Increase $(162,582) $0 $(177,742) Non-Salary Decrease Arbitration (20,000)(20,000) Decrease Instruction and Training (3,600)(3,600) Decrease Programming, Computer, Equipment Maintenance, Software (4,500)(4,500) Decrease Books, Films, Publication (10,000)(10,000) Decrease various Telephone, Facilities, Office Machine and Furniture (6,300)(6,300) Increase Allocated Charges (Note 3) 5,862 5,862 188 Operating Budget FY 2011 City of Palo Alto City Attorney 36 RESOURCE LEVEL NOTES Note 1: Adjustments include one-time revenues and appropriation changes from the prior year that did not carry forward from the FY2010 budget. Note 2: Personnel benefit costs have decreased mainly due to a change in methodology of estimating benefit costs. Note 3: Allocated charges have increased due to the loan repayment to the Technology Fund. SERVICE LEVEL CHANGES A City Attorney contingency account, totaling $270,000, was created in FY2010 for unforseen legal services. In FY2011, this contingency account was decreased by $145,000 to realign with the actual trending. The Office of the City Attorney completed its restructuring effort during Fiscal Year 2007. The restructuring effort resulted in a 21 percent reduction in staffing from the Fiscal Year 2003 staffing level. This represents a substantial contribution from the City Attorney's Office to reducing general fund expenditures. The reduction in outside councel budget may result in a reduction in service to City departments. In order to maintain a high level of accurate legal services in a timely fashion, additional service level changes are not recommended. Total Non-Salary Changes $(38,538) $0 $(38,538) TOTAL EXPENDITURE CHANGES $(201,120)$0 $(216,280) Adjustments (Note 1) 46,558 46,558 NET EXPENDITURE CHANGES $(201,120) $46,558 $(154,562) RESOURCE LEVEL CHANGES FY 2011 Ongoing FY 2011 One-Time FY 2011 Total 189 30 City of Palo Alto Operating Budget FY 2011 1.0-CITY ATTORNEY Gary Baum Fiscal Year 2011 Position Totals - All Funds:10.60 Full-time 0.54 Hourly City Attorney’s Office Organizational Chart 2.0-Senior Asst City Attorney 1.0-Assistant City Attorney 2.0-Senior Deputy City Attorney 1.0-Legal Administrator 1.0-Secretary to City Attorney 2.0-Senior Legal Secretary 0.6-Claims Investigator 190 33 Proposed Budget FY 2011 Citywide Changes Information Technology – Update and Change to Allocated Charges Allocated charges deferred in FY2009, Year 2 of GF Loan Repayment Updated all maintenance and replacement schedules, including Application Maintenance and Replacement, Infrastructure Maintenance and Replacement, Desktop Maintenance and Replacement, Telecommunication, and Support Reclassified various line item categories Changed cost allocation methodology, where necessary FY2010 Budget 8,867,674 FY2011 Proposed 9,194,993 Operating Increase 327,319 2nd year Loan Repay from GF 1,220,693 Total IT Fund Operating Revenue 10,415,686 191 ATTACHMENT 9CHANGE IN TECHNOLOGY ALLOCATED CHARGES BETWEEN FY2010 ADJUSTED BUDGET AND FY2011 PROPOSED BUDGET COMMUNITY IT Allocated Charges FY2010 Adj FY2011 Prop Diff Chg % SERVICES 39370 Desktop Replacement 32,267 23,889 (8,378) -26% 39380 Desktop Maintenance 19,969 28,667 8,698 44% 39420 IT-Infrastructure Replacement 28,300 19,620 (8,680) -31% 39430 IT-Infrastructure Maintenance 15,070 14,244 (826) -5% 39440 IT Support 578,257 429,537 (148,720) -26% * 39450 Telecommunications - 53,237 53,237 #DIV/0! ** 39510 Application Replacement 25,796 - (25,796) -100% 39520 Application Maintenance 41,289 17,287 (24,002) -58% 740,948 586,481 (154,467) -21%decrease HUMAN IT Allocated Charges FY2010 Adj FY2011 Prop Diff Chg % RESOURCE 39370 Desktop Replacement 4,286 9,936 5,650 132% 39380 Desktop Maintenance 2,651 10,667 8,016 302% 39420 IT-Infrastructure Replacement 3,643 3,832 189 5% 39430 IT-Infrastructure Maintenance 2,457 2,963 506 21% 39440 IT Support 98,814 93,860 (4,954) -5% * 39450 Telecommunications - 11,075 11,075 #DIV/0! ** 39510 Application Replacement 631 - (631) -100% 39520 Application Maintenance 1,010 3,597 2,587 256% 113,492 135,930 22,438 20%increase PLANNING &IT Allocated Charges FY2010 Adj FY2011 Prop Diff Chg % COMMUNITY 39370 Desktop Replacement 15,681 17,874 2,193 14% DEVELOPMENT 39380 Desktop Maintenance 9,683 23,000 13,317 138% 39420 IT-Infrastructure Replacement 13,646 11,879 (1,767) -13% 39430 IT-Infrastructure Maintenance 8,868 8,412 (456) -5% 39440 IT Support 304,981 274,884 (30,097) -10% * 39450 Telecommunications - 31,441 31,441 #DIV/0! ** 39510 Application Replacement 2,346 - (2,346) -100% 39520 Application Maintenance 3,756 23,604 19,848 528% 358,961 391,094 32,133 9%increase ATTORNEY IT Allocated Charges FY2010 Adj FY2011 Prop Diff Chg % 39370 Desktop Replacement 4,264 7,882 3,618 85% 39380 Desktop Maintenance 2,624 3,667 1,043 40% 39420 IT-Infrastructure Replacement 3,701 2,372 (1,329) -36% 39430 IT-Infrastructure Maintenance 3,130 1,835 (1,295) -41% 39440 IT Support 65,484 58,989 (6,495) -10% * 39450 Telecommunications - 6,858 6,858 #DIV/0! ** 39510 Application Replacement 496 - (496) -100% 39520 Application Maintenance 795 2,229 1,434 180% 80,494 83,832 3,338 4%increase * In FY2011, 39510 Telecommunications is separated from 39440 IT Support to provided increased transparency. ** Application Replacement charge to the General Fund departments is deferred by one year in FY2011. ATT changes primarily due to the net of 2nd year loan payment $25,579 and decrease due to FTE reductions. CSD changes primarily due to the net of 2nd year loan payment $218,479 and decrease due to FTE reductions and midyear loan payment. HRD changes primarily due to the net of 2nd year loan payment $37,283. PCE changes primarily due to the net of 2nd year loan payment $118,603 and decrease due to FTE reductions and midyear loan payment. 5/11/2010 4:57 PM 192 ATTACHMENT 9CHANGE IN TECHNOLOGY ALLOCATED CHARGES BETWEEN FY2010 ADJUSTED BUDGET AND FY2011 PROPOSED BUDGET LIBRARY IT Allocated Charges FY2010 Adj FY2011 Prop Diff Chg % 39370 Desktop Replacement 10,356 56,825 46,469 449% 39380 Desktop Maintenance 6,373 52,000 45,627 716% 39420 IT-Infrastructure Replacement 8,732 18,646 9,914 114% 39430 IT-Infrastructure Maintenance 5,340 8,078 2,738 51% 39440 IT Support 261,248 448,586 187,338 72% * 39450 Telecommunications - 30,191 30,191 #DIV/0! ** 39510 Application Replacement 17,261 - (17,261) -100% 39520 Application Maintenance 27,628 79,594 51,966 188% 336,938 693,920 356,982 106%increase AUDITOR IT Allocated Charges FY2010 Adj FY2011 Prop Diff Chg % 39370 Desktop Replacement 1,367 2,429 1,062 78% 39380 Desktop Maintenance 842 1,667 825 98% 39420 IT-Infrastructure Replacement 1,195 989 (206) -17% 39430 IT-Infrastructure Maintenance 835 765 (70) -8% 39440 IT Support 24,718 21,995 (2,723) -11% * 39450 Telecommunications - 2,857 2,857 #DIV/0! ** 39510 Application Replacement 169 - (169) -100% 39520 Application Maintenance 271 928 657 242% 29,397 31,630 2,233 8%increase CLERK IT Allocated Charges FY2010 Adj FY2011 Prop Diff Chg % 39370 Desktop Replacement 2,225 3,167 942 42% 39380 Desktop Maintenance 1,377 3,333 1,956 142% 39420 IT-Infrastructure Replacement 1,934 1,669 (265) -14% 39430 IT-Infrastructure Maintenance 1,130 1,291 161 14% 39440 IT Support 41,711 36,483 (5,228) -13% * 39450 Telecommunications - 4,823 4,823 #DIV/0! ** 39510 Application Replacement 304 - (304) -100% 39520 Application Maintenance 487 1,566 1,079 222% 49,168 52,332 3,164 6%increase MANAGER IT Allocated Charges FY2010 Adj FY2011 Prop Diff Chg % 39370 Desktop Replacement 3,120 3,921 801 26% 39380 Desktop Maintenance 1,924 5,333 3,409 177% 39420 IT-Infrastructure Replacement 2,696 2,658 (38) -1% 39430 IT-Infrastructure Maintenance 1,889 2,055 166 9% 39440 IT Support 64,799 54,909 (9,890) -15% * 39450 Telecommunications - 7,681 7,681 #DIV/0! ** 39510 Application Replacement 474 - (474) -100% 39520 Application Maintenance 759 2,494 1,735 229% 75,661 79,051 3,390 4%increase * In FY2011, 39510 Telecommunications is separated from 39440 IT Support to provided increased transparency. ** Application Replacement charge to the General Fund departments is deferred by one year in FY2011. LIB changes primarily due to the net of 2nd year loan payment $118,660, and net of FTE reductions and change in methodology for desktop replacement and maintenance. AUD changes primarily due to the 2nd year loan payment $9,036. Prior methodology used was FTE and % of prior year budget, which did not factor the use of public desktops and understated the allocated charges. Also, Library's application and infrastructure costs increased as a result of direct department allocation rather than cost averaging citywide. MGR changes primarily due to the 2nd year loan payment $22,440. CLK changes primarily due to the 2nd year loan payment $15,169. 5/11/2010 4:57 PM 193 194 City of Palo Alto Salary and Benefit Totals General Fund Departments ATTACHMENT 1 2010 2010 Total 2011 2011 Total Change Change Total Dept Salary Benefits Salary Benefits Salary Benefits $% Administrative Services 3,709,092 2,067,704 5,776,796 3,417,888 1,678,429 5,096,317 (291,204) (389,274) (680,478) -11.8% City Attorney's Office 1,373,843 636,075 2,009,919 1,216,652 615,524 1,832,177 (157,191) (20,551) (177,742) -8.8% City Auditor's Office 487,098 225,820 712,918 482,435 208,790 691,225 (4,663) (17,030) (21,693) -3.0% City Clerk's Office 592,745 372,821 965,567 592,746 287,244 879,989 0 (85,578) (85,577) -8.9% City Manager's Office 1,301,881 649,517 1,951,398 1,156,335 625,054 1,781,388 (145,547) (24,463) (170,010) -8.7% Community Services Department 8,702,597 3,524,383 12,226,980 7,074,829 2,991,939 10,066,768 (1,627,768) (532,444) (2,160,212) -17.7% Council 64,800 127,864 192,664 64,800 6,345 71,145 0 (121,519) (121,519) -63.1% Fire Department 14,067,025 7,512,487 21,579,512 15,257,960 8,036,370 23,294,329 1,190,934 523,883 1,714,818 7.9% Human Resources Department 1,544,085 797,049 2,341,134 1,553,893 812,993 2,366,886 9,808 15,944 25,752 1.1% Library Department 3,372,630 1,526,986 4,899,616 3,207,876 1,469,926 4,677,801 (164,755) (57,060) (221,815) -4.5% Non-departmental (3,016,932)1,900,000 (1,116,932) (1,168,640) (1,168,640)1,848,292 (1,900,000) (51,708) 4.6% Planning and Community Development 4,528,793 2,215,805 6,744,597 4,433,499 2,022,859 6,456,358 (95,294) (192,946) (288,239) -4.3% Police Department 16,771,269 8,468,718 25,239,987 16,216,603 8,054,417 24,271,020 (554,666) (414,301) (968,967) -3.8% Public Works Department 4,814,023 2,751,372 7,565,395 4,639,856 2,247,549 6,887,404 (174,167) (503,823) (677,991) -9.0% Grand Total 58,312,951 32,776,600 91,089,552 58,146,731 29,057,439 87,204,169 (166,221) (3,719,162) (3,885,382) -4.3% 5/18/2010 3:14 PM 195 ATTACHMENT 2 Page 1 of 2Police Department (POL) 2011 Proposed Budget Budget Balancing Summary Ongoing One-time Total REVENUES New Revenues and Increased Cost Recovery: POL1 Reimbursement from PAUSD for School Resource Officer 83,570 83,570 POL2 Alarm services provided to Utilities (additional services)90,000 90,000 POL3 Increase Parking Violation Citation municipal fee 150,000 150,000 POL4 Increase in Animal Service municipal fees 47,200 47,200 370,770 - 370,770 Service Level Reductions: Loss of revenue from eliminating the Traffic Team (100,000) (100,000) Leaf blower (20,000) (20,000) (120,000) - (120,000) Other Items Included in Proposed Budget: Parking violation revenue decline (125,000) (125,000) Communications reimbursement from Stanford (67,316) (67,316) (192,316) - (192,316) Budget Balancing Revenue Summary 58,454 58,454 EXPENDITURES Service Level Reductions: POL5 Code Enforcement POL5.1 0.5 FTE Code Enforcement Officer 61,068 61,068 POL6 Crime Analyst Program POL6.1 1 FTE Crime Analyst 116,178 116,178 POL7 Traffic Team (see revenue impact) POL7.1 1 FTE Police Sergeant 205,886 205,886 POL7.2 1 FTE Police Agent 183,139 183,139 POL7.3 3 FTE Police Officer 497,601 497,601 886,626 - 886,626 POL8 Investigations POL8.1 2 FTE Police Officer 331,734 331,734 POL9 Technical Services POL9.1 1 FTE Records Specialist II 86,360 86,360 POL10 Crime Prevention & Public Outreach POL10.1 1 FTE Program Coordinator 102,669 102,669 POL11 Reduction in overtime budget 32,000 32,000 POL12 Reduction in leaf blower enforcement (see revenue impact) POL12.1 0.46 FTE temp Project Specialist 41,587 41,587 5/18/2010 2:38 PM 196 ATTACHMENT 2 Page 2 of 2Police Department (POL) 2011 Proposed Budget Budget Balancing Summary Ongoing One-time Total POL13 School Crossing Guard Program 345,000 345,000 2,003,222 - 2,003,222 Other Items Included in Proposed Budget: POL14 Train Track Watch Program (30,000) (30,000) PAPOA salary increase (808,429) (808,429) Booking fees decrease 130,000 130,000 (708,429) - (708,429) Citywide Changes Personnel benefit and allocated (421,321) (421,321) Budget Balancing Expenditures 873,472 - 873,472 Budget Balancing Summary (931,926) Alternatives to Proposed Budget Balancing Actions POL15 Parking Enforcement Program POL15.1 1 FTE Community Service Officer 89,258 89,258 Total FTE Reductions: Regular 10.5 FTE (11 positions, 8 filled) Hourly 0.81 FTE (2 positions, 2 vacant) 5/18/2010 2:38 PM 197 ATTACHMENT 3 Page 1 of 2Fire Department (F) 2011 Proposed Budget Budget Balancing Summary Ongoing One-time Total REVENUES New Revenues and Increased Cost Recovery: F1 Increase Hazardous Materials Inspection Fees 200,000 200,000 F2 Increase Stanford Fire Services Revenue 38,000 38,000 F3 Increase Paramedic Services Fees by 10% 50,000 50,000 F4 Increase Code Enforcement Fees 120,000 120,000 Sub-total New Revenues 408,000 - 408,000 Other Items Included in Proposed Budget: Decrease Plan Checking Fee (270,000) (270,000) Fire Services Reimbursement from Stanford 136,969 136,969 Sub-total Other Items (133,031) - (133,031) Budget Balancing Revenue Summary 274,969 274,969 EXPENDITURES Service Level Reductions: F5 Administration 1.0 FTE Administrative Assistant 116,507 116,507 F6 HazMat Code Enforcement 0.95 FTE Hazardous Materials Specialist (GF portion)186,953 186,953 0.48 FTE Add Management Specialist (80,000) (80,000) 106,953 - 106,953 F7 Administration (Backfill Fire Chief vacancy) 0.25 Management Specialist (52,000) (52,000) F8 Reduction in non-salary expenses (i.e. Contract Svcs., Supplies, Equip., etc.)85,952 85,952 309,412 (52,000) 257,412 Other Items Included in Proposed Budget: Salary and Benefit Increase (1/2 Year)(652,158) (652,158) Decrease in Temporary Salaries 31,131 31,131 Incentive Pay Increase (EMT Certification)(9,069) (9,069) (630,096) - (630,096) Citywide Changes Increase in Workers' Compensation Charges (479,668) (479,668) Increase in Medicare (Employer) Contribution (12,965) (12,965) Increase in Retiree Health Insurance Premiums (393,311) (393,311) Increase in Benefit Allocation (390,237) (390,237) Decrease in Information Technology Charges 95,076 95,076 Increase in Vehicle Maintenance and Replacement (254,272) (254,272) 5/18/2010 4:58 PM 198 ATTACHMENT 3 Page 2 of 2Fire Department (F) 2011 Proposed Budget Budget Balancing Summary Ongoing One-time Total Increase in Liab. Insurance & Printing/Mailing Services (33,015) (33,015) (1,468,392) - (1,468,392) Budget Balancing Expenditures (1,789,076) (52,000) (1,841,076) Net Budget Impact Summary (Increase)(1,566,107) Total FTE Reductions/Increase: Regular 1.95 FTE (1 - Retiring, 1 filled) Hourly 0.46 FTE Increase 5/18/2010 4:58 PM 199 Administrative Services Department (ASD) 2011 Proposed Budget Budget Balancing Summary Ongoing One-time Total Expenditures: Service Level Reduction ASD1-2. Eliminate Vacant Positions 0.96 FTE Administrative Associate (99,500) - (190,027) 1.00 FTE Accounting Specialist (90,527) - (190,027) - ASD3. Reallocations 0.50 FTE Warehouse Supervisor to Utls (52,857) - (347,272) 0.50 FTE Sr Financial Analyst to Utls (74,807) 0.60 FTE Contract Administrator to CIP (89,769) 0.60 FTE Sr Financial Analyst to CIP (89,769) 0.10 FTE Business Analyst to IT (12,240) 0.20 FTE Sr Business Analyst to IT (27,830) (347,272) - ASD4. Decrease Temporary Salaries (24,572) - (24,572) (24,572) - ASD5. Decrease Overtime (10,000) - (10,000) (10,000) - ASD6-8. Decrease various non-salary (25,292) - (25,292) (25,292) - Budget Balancing Expenditures (597,163) - (597,163) Budget Balancing Summary (597,163) Total FTE Reductions: Regular 4.46 FTE (1.96 vacant 2.5 reallocation) Hourly 0.42 FTE (increase) 200 Information Technology - ISF (IT) 2011 Proposed Budget Budget Balancing Summary Ongoing One-time Total Revenues: IT1-3. Decrease in various revenues Decrease in Investment Income (236,500) - (283,100) Decrease in Stanford Revenue (37,000) - Decrease in Miscellaneous Revenue (9,600) - (283,100) - IT4. Increase in allocated revenue - Loan repay 1,220,693 - 1,220,693 1,220,693 - IT5. Increase in allocated revenue - Operating 303,391 - 303,391 303,391 - IT6. Increase in Operating Tfrs In - CIP projects 970,594 - 970,594 970,594 - Expenditures: Service Level Reduction IT7-8. Eliminate Vacant Positions 0.04 FTE Administrative Assoc III (4,146) - (164,562) 1.0 FTE Technologist (160,416) - (164,562) - IT9. Add 0.50 FTE Administrator (CM office)58,273 - 58,273 58,273 - IT10. Reallocations 0.10 FTE Business Analyst from ASD 12,240 - 12,240 0.20 FTE Sr Business Analyst from ASD 27,830 40,070 - 201 Information Technology - ISF (IT) 2011 Proposed Budget Budget Balancing Summary Ongoing One-time Total IT11-18. Redistrubutions Increase Application Maintenance 506,425 - 303,392 Decrease Application Replacement (190,150) Decrease Infrastructure Maintenance (90,287) Decrease Infratstructure Replacement (888) Increase Desktop Maintenance 130,000 Increase Desktop Replacement 99,575 Increase Telecommunication 682,500 Decrease IT Support (833,783) 303,392 - IT19. Increase CIP project costs 2,295,859 - 2,295,859 2,295,859 - Budget Balancing Expenditures 2,533,032 - 2,533,032 Budget Balancing Summary 2,533,032 Total FTE Reductions: Regular .24 FTE net (1.04 vacant, 0.50 add, net 0.30 realloc) Hourly 1.22 FTE (increase) 202 ATTACHMENT 6CHANGE IN TECHNOLOGY ALLOCATED CHARGES BETWEEN FY2010 ADJUSTED BUDGET AND FY2011 PROPOSED BUDGET POLICE IT Allocated Charges FY2010 Adj FY2011 Prop Diff Chg % 39370 Desktop Replacement 43,215 73,758 30,543 71% 39380 Desktop Maintenance 26,434 44,000 17,566 66% 39420 IT-Infrastructure Replacement 37,693 47,744 10,051 27% 39430 IT-Infrastructure Maintenance 24,156 28,200 4,044 17% 39440 IT Support 998,178 1,255,882 257,704 26% * 39450 Telecommunications - 105,402 105,402 #DIV/0! ** 39510 Application Replacement 122,514 - (122,514) -100% 39520 Application Maintenance 196,098 293,104 97,006 49% 1,448,288 1,848,090 399,802 28%increase FIR IT Allocated Charges FY2010 Adj FY2011 Prop Diff Chg % 39370 Desktop Replacement 60,101 47,072 (13,029) -22% 39380 Desktop Maintenance 37,122 26,668 (10,454) -28% 39420 IT-Infrastructure Replacement 52,744 32,969 (19,775) -37% 39430 IT-Infrastructure Maintenance 44,503 22,788 (21,715) -49% 39440 IT Support 1,436,388 586,788 (849,600) -59% * 39450 Telecommunications - 85,172 85,172 #DIV/0! 39510 Application Replacement 292,612 81,300 (211,312) -72% 39520 Application Maintenance 411,934 200,858 (211,076) -51% 2,335,404 1,083,615 (1,251,789) -54%decrease ADMINISTRATIVE IT Allocated Charges FY2010 Adj FY2011 Prop Diff Chg % SERVICES 39370 Desktop Replacement 12,267 46,651 34,384 280% DEPARTMENT 39380 Desktop Maintenance 7,464 44,667 37,203 498% 39420 IT-Infrastructure Replacement 9,933 10,626 693 7% 39430 IT-Infrastructure Maintenance 7,752 7,734 (18) 0% 39440 IT Support 266,056 334,109 68,053 26% * 39450 Telecommunications - 28,905 28,905 #DIV/0! ** 39510 Application Replacement 3,879 - (3,879) -100% 39520 Application Maintenance 6,209 9,386 3,177 51% 313,560 482,078 168,518 54%increase PUBLIC IT Allocated Charges FY2010 Adj FY2011 Prop Diff Chg % WORKS 39370 Desktop Replacement 20,133 17,861 (2,272) -11% 39380 Desktop Maintenance 12,409 13,883 1,474 12% 39420 IT-Infrastructure Replacement 17,820 26,000 8,180 46% 39430 IT-Infrastructure Maintenance 9,534 10,974 1,440 15% 39440 IT Support 398,247 307,669 (90,578) -23% * 39450 Telecommunications - 41,017 41,017 #DIV/0! ** 39510 Application Replacement 3,879 - (3,879) -100% 39520 Application Maintenance 6,209 13,319 7,110 115% 468,231 430,723 (37,508) -8%decrease * In FY2011, 39510 Telecommunications is separated from 39440 IT Support to provided increased transparency. ** Application Replacement charge to the General Fund departments is deferred by one year in FY2011. ASD changes primarily due to the net of 2nd year loan payment $135,121 and methodology change. POL changes primarily due to the net of 2nd year loan payment $459,482. FIR changes primarily due to a net of 1st year loan repayment at midyear FY2010 of $1,156,713 and a 2nd year loan payment credit of $81,344. PWD changes primarily due to the net of 2nd year loan payment $142,185 and methodology change. 5/18/2010 3:55 PM 203 ATTACHMENT 6CHANGE IN TECHNOLOGY ALLOCATED CHARGES BETWEEN FY2010 ADJUSTED BUDGET AND FY2011 PROPOSED BUDGET COMMUNITY IT Allocated Charges FY2010 Adj FY2011 Prop Diff Chg % SERVICES 39370 Desktop Replacement 32,267 23,889 (8,378) -26% 39380 Desktop Maintenance 19,969 28,667 8,698 44% 39420 IT-Infrastructure Replacement 28,300 19,620 (8,680) -31% 39430 IT-Infrastructure Maintenance 15,070 14,244 (826) -5% 39440 IT Support 578,257 429,537 (148,720) -26% * 39450 Telecommunications - 53,237 53,237 #DIV/0! ** 39510 Application Replacement 25,796 - (25,796) -100% 39520 Application Maintenance 41,289 17,287 (24,002) -58% 740,948 586,481 (154,467) -21%decrease HUMAN IT Allocated Charges FY2010 Adj FY2011 Prop Diff Chg % RESOURCE 39370 Desktop Replacement 4,286 9,936 5,650 132% 39380 Desktop Maintenance 2,651 10,667 8,016 302% 39420 IT-Infrastructure Replacement 3,643 3,832 189 5% 39430 IT-Infrastructure Maintenance 2,457 2,963 506 21% 39440 IT Support 98,814 93,860 (4,954) -5% * 39450 Telecommunications - 11,075 11,075 #DIV/0! ** 39510 Application Replacement 631 - (631) -100% 39520 Application Maintenance 1,010 3,597 2,587 256% 113,492 135,930 22,438 20%increase PLANNING &IT Allocated Charges FY2010 Adj FY2011 Prop Diff Chg % COMMUNITY 39370 Desktop Replacement 15,681 17,874 2,193 14% DEVELOPMENT 39380 Desktop Maintenance 9,683 23,000 13,317 138% 39420 IT-Infrastructure Replacement 13,646 11,879 (1,767) -13% 39430 IT-Infrastructure Maintenance 8,868 8,412 (456) -5% 39440 IT Support 304,981 274,884 (30,097) -10% * 39450 Telecommunications - 31,441 31,441 #DIV/0! ** 39510 Application Replacement 2,346 - (2,346) -100% 39520 Application Maintenance 3,756 23,604 19,848 528% 358,961 391,094 32,133 9%increase ATTORNEY IT Allocated Charges FY2010 Adj FY2011 Prop Diff Chg % 39370 Desktop Replacement 4,264 7,882 3,618 85% 39380 Desktop Maintenance 2,624 3,667 1,043 40% 39420 IT-Infrastructure Replacement 3,701 2,372 (1,329) -36% 39430 IT-Infrastructure Maintenance 3,130 1,835 (1,295) -41% 39440 IT Support 65,484 58,989 (6,495) -10% * 39450 Telecommunications - 6,858 6,858 #DIV/0! ** 39510 Application Replacement 496 - (496) -100% 39520 Application Maintenance 795 2,229 1,434 180% 80,494 83,832 3,338 4%increase * In FY2011, 39510 Telecommunications is separated from 39440 IT Support to provided increased transparency. ** Application Replacement charge to the General Fund departments is deferred by one year in FY2011. ATT changes primarily due to the net of 2nd year loan payment $25,579 and decrease due to FTE reductions. CSD changes primarily due to the net of 2nd year loan payment $218,479 and decrease due to FTE reductions and midyear loan payment. HRD changes primarily due to the net of 2nd year loan payment $37,283. PCE changes primarily due to the net of 2nd year loan payment $118,603 and decrease due to FTE reductions and midyear loan payment. 5/18/2010 3:55 PM 204 ATTACHMENT 6CHANGE IN TECHNOLOGY ALLOCATED CHARGES BETWEEN FY2010 ADJUSTED BUDGET AND FY2011 PROPOSED BUDGET LIBRARY IT Allocated Charges FY2010 Adj FY2011 Prop Diff Chg % 39370 Desktop Replacement 10,356 56,825 46,469 449% 39380 Desktop Maintenance 6,373 52,000 45,627 716% 39420 IT-Infrastructure Replacement 8,732 18,646 9,914 114% 39430 IT-Infrastructure Maintenance 5,340 8,078 2,738 51% 39440 IT Support 261,248 448,586 187,338 72% * 39450 Telecommunications - 30,191 30,191 #DIV/0! ** 39510 Application Replacement 17,261 - (17,261) -100% 39520 Application Maintenance 27,628 79,594 51,966 188% 336,938 693,920 356,982 106%increase AUDITOR IT Allocated Charges FY2010 Adj FY2011 Prop Diff Chg % 39370 Desktop Replacement 1,367 2,429 1,062 78% 39380 Desktop Maintenance 842 1,667 825 98% 39420 IT-Infrastructure Replacement 1,195 989 (206) -17% 39430 IT-Infrastructure Maintenance 835 765 (70) -8% 39440 IT Support 24,718 21,995 (2,723) -11% * 39450 Telecommunications - 2,857 2,857 #DIV/0! ** 39510 Application Replacement 169 - (169) -100% 39520 Application Maintenance 271 928 657 242% 29,397 31,630 2,233 8%increase CLERK IT Allocated Charges FY2010 Adj FY2011 Prop Diff Chg % 39370 Desktop Replacement 2,225 3,167 942 42% 39380 Desktop Maintenance 1,377 3,333 1,956 142% 39420 IT-Infrastructure Replacement 1,934 1,669 (265) -14% 39430 IT-Infrastructure Maintenance 1,130 1,291 161 14% 39440 IT Support 41,711 36,483 (5,228) -13% * 39450 Telecommunications - 4,823 4,823 #DIV/0! ** 39510 Application Replacement 304 - (304) -100% 39520 Application Maintenance 487 1,566 1,079 222% 49,168 52,332 3,164 6%increase MANAGER IT Allocated Charges FY2010 Adj FY2011 Prop Diff Chg % 39370 Desktop Replacement 3,120 3,921 801 26% 39380 Desktop Maintenance 1,924 5,333 3,409 177% 39420 IT-Infrastructure Replacement 2,696 2,658 (38) -1% 39430 IT-Infrastructure Maintenance 1,889 2,055 166 9% 39440 IT Support 64,799 54,909 (9,890) -15% * 39450 Telecommunications - 7,681 7,681 #DIV/0! ** 39510 Application Replacement 474 - (474) -100% 39520 Application Maintenance 759 2,494 1,735 229% 75,661 79,051 3,390 4%increase * In FY2011, 39510 Telecommunications is separated from 39440 IT Support to provided increased transparency. ** Application Replacement charge to the General Fund departments is deferred by one year in FY2011. LIB changes primarily due to the net of 2nd year loan payment $118,660, and net of FTE reductions and change in methodology for desktop replacement and maintenance. AUD changes primarily due to the 2nd year loan payment $9,036. Prior methodology used was FTE and % of prior year budget, which did not factor the use of public desktops and understated the allocated charges. Also, Library's application and infrastructure costs increased as a result of direct department allocation rather than cost averaging citywide. MGR changes primarily due to the 2nd year loan payment $22,440. CLK changes primarily due to the 2nd year loan payment $15,169. 5/18/2010 3:55 PM 205 Printing and Mailing - ISF (IT) 2011 Proposed Budget Budget Balancing Summary Ongoing One-time Total Revenues: PM1. Decrease Mailing Allocated Revenue 91,778 - 91,778 91,778 - PM2. Decrease Printing Allocated Revenue 106,835 - 106,835 106,835 - Expenditures: Service Level Reduction PM3-5. Eliminate Filled Positions 1.0 FTE Supervisor Repro and Mail (110,440) - (221,984) 1.0 FTE Offset Equip Op Lead (91,894) 0.48 FTE Print Shop Assistant (19,650) (221,984) - PM6. Reallocate 0.48 FTE Offset Equip Op (45,031) - (45,031) (45,031) - Budget Balancing Expenditures (267,015) - (267,015) Budget Balancing Summary (267,015) Total FTE Reductions: Regular 2.96 FTE (2.48 filled and 0.48 reallocation) Hourly none 206 207 208 Children’s Theatre-Fee Setting Discussion The policy of requiring participants to pay a fee to appear in productions is often referred to as "pay to play". This policy has the potential to raise revenue; however, it relies on large numbers to raise significant funds. The chart below describes the participation fee and ticket price of other Bay Area Children’s Theaters: Organization Participation Fee Ticket Price Remarks Peninsula Youth Theatre $265 per production $16 - $18 Multiple casts; Volunteer hours required San Carlos Children’s Theatre $175 per production $10 - $12 Does not include costumes; Volunteer hours required CMT San Jose $150 per production $15 - $30 Volunteer hours required Rainbow Theatre (Milpitas) $65 - $85 per production $6 - $8 Tickets cost $6 - $8; Volunteer hours required Below are participation fees for Palo Alto youth activities: Organization Participation Fee Ages Palo Alto AYSO Camp $167 per week Ages 5 - 18 Palo Alto AYSO Competitive Athletics $350 per season Ages 5 - 18 Palo Alto Little League $195 per season Ages 9 - 12 Jr. Museum & Zoo Summer Camp $335 per week Ages 6 - 13 Listed below is the revenue stream that is possible at different fee levels for participants. An alternate scheme would be to develop a fee menu for each production that would price individual performing parts based on the amount of stage time. This scheme could be structured to raise similar revenue; however, this plan would likely suppress the number and diversity of children participating in the program while essentially guaranteeing that the same children, from families that could afford the higher fees, would lead every production. The level of this suppression would logically be tied to the fee amount. The participation fee would be charged to performers and could also be charged to stage crew members and technicians operating the production. This may reduce volunteerism and require the use of paid staff to operate the productions. This added cost cannot be accurately forecast. All gross revenue amounts must be reduced by the administration cost of collection, record keeping, cash handling, etc. Fee Range Children’s Theatre Potential Revenue $50-$300 $35,000 209 Childrenʼs Theatre Production Participation and AudienceChildrenʼs Theatre Production Participation and AudienceChildrenʼs Theatre Production Participation and AudienceChildrenʼs Theatre Production Participation and AudienceChildrenʼs Theatre Production Participation and AudienceChildrenʼs Theatre Production Participation and AudienceChildrenʼs Theatre Production Participation and AudienceChildrenʼs Theatre Production Participation and AudienceChildrenʼs Theatre Production Participation and AudienceChildrenʼs Theatre Production Participation and AudienceChildrenʼs Theatre Production Participation and Audience Revenue % Δ from prev year Audience % Δ from prev year Participants % Δ from prev year Unique Participants # of Productions # of Performances 2009 - 2010 Season (YTD) 2009 - 2010 Season (YTD) 2009 - 2010 Season (YTD) 2009 - 2010 Season (YTD) 2009 - 2010 Season (YTD) 2009 - 2010 Season (YTD) 2009 - 2010 Season (YTD) 2008 - 2009 Season 2008 - 2009 Season 2008 - 2009 Season 2008 - 2009 Season 2008 - 2009 Season 2008 - 2009 Season 2008 - 2009 Season 2007 - 2008 Season 2007 - 2008 Season 2007 - 2008 Season 2007 - 2008 Season 2007 - 2008 Season 2007 - 2008 Season 2007 - 2008 Season 2006 - 2007 Season 2006 - 2007 Season 2006 - 2007 Season 2006 - 2007 Season 2006 - 2007 Season 2006 - 2007 Season 2006 - 2007 Season Total Box Office $142,555 46%20,770 41%495 20%401 20 118 Hotdog / Summer $52,670 63%8,190 48%141 18%126 3 26 Wingspread $21,690 87%2,972 54%47 -23%39 2 17 Mainstage $36,280 46%4,853 45%100 22%87 3 30 Outreach $12,930 -4%2,141 15%98 1%98 3 12 Saturday Playhouse $11,055 -18%1,480 -18%37 28%23 6 11 Teen Shows $7,930 361%1,134 387%72 200%51 3 22 Total Box Office $97,419 -14%14,705 -28%413 -26%300 23 99 Hotdog / Summer $32,396 -27%5,522 -29%120 8%92 4 22 Wingspread $11,588 -12%1,928 -16%61 -46%30 3 14 Mainstage $24,785 -4%3,345 -29%82 -23%57 3 21 Outreach $13,400 -33%1,865 -47%97 -48%97 6 24 Saturday Playhouse $13,530 47%1,812 -17%29 -28%16 6 12 Teen Shows $1,720 n/a 233 n/a 24 n/a 24 1 6 Total Box Office $112,883 -4%20,469 2%556 -4%408 29 132 Hotdog / Summer $44,656 -9%7,748 -8%111 -11%79 4 35 Wingspread $13,208 13%2,297 14%113 45%49 5 23 Mainstage $25,722 22%4,689 18%107 -20%85 4 26 Outreach $20,111 1%3,546 45%185 9%185 8 32 Saturday Playhouse $9,186 17%2,189 27%40 -7%10 8 16 Teen Shows $0 n/a 0 n/a 0 -100%0 0 0 Total Box Office $117,135 19,986 581 422 26 131 Hotdog / Summer $48,920 no data 8,386 no data 125 no data 85 4 34 Wingspread $11,657 no data 2,019 no data 78 no data 42 5 24 Mainstage $21,076 no data 3,966 no data 133 no data 83 4 27 Outreach $19,976 no data 2,451 no data 170 no data 169 6 24 Saturday Playhouse $7,836 no data 1,725 no data 43 no data 11 6 15 Teen Shows $7,670 no data 1,439 no data 32 no data 32 1 7210 Childrenʼs Theatre Production Demographics Demographics Age/Residency FY 2010 Demographics Age/Residency FY 2010 Demographics Age/Residency FY 2010 Demographics Age/Residency FY 2010 Demographics Age/Residency FY 2010 Demographics Age/Residency FY 2010 Demographics Age/Residency FY 2010 Demographics Age/Residency FY 2010 Production Type ParticipantsParticipants AudienceAudience Production Type Grade Residency Age Residency Hotdog / Summer 2 - 6 86% Resident 14% Non-Resident All 57% Resident 43% Non-Resident Wingspread 11 - College 15% Resident 85% Non-Resident All 71% Resident 29% Non-Resident Mainstage 2 - 6 84% Resident 16% Non-Resident All 68% Resident 32% Non-Resident Outreach 3 - 5 98% Resident 2% Non-Resident 8 - 11; Parents 83% Resident 17% Non-Resident Saturday Playhouse 9 - 12 91% Resident 9% Non-Resident 3 - 6 55% Resident 45% Non-Resident Teen Shows 9 - 12 95% Resident 5% Non-Resident All 73% Resident 27% Non-Resident 211 Note: FY 2010 Year-End values are projections as of 5/21/2010. Childrenʼs Theatre: Change in Revenue, Attendance, and Participation Program Area FY 2007 FY 2008 FY 2009 FY 2010 FY 2010 Projected FY 2011 Projected Childrenʼs Theatre Class Revenue $50,265 $60,206 $70,014 $81,686 $91,442 $120,000 Childrenʼs Theatre # of Classes 27 73 73 85 Childrenʼs Theatre Class Registration 472 407 492 616 680 750 Childrenʼs Theatre Class Residency (NR: Nonresident; R Resident) 368 R 104 NR 305 R 102 NR 407 R 85 NR 525 R 91 NR Arts Education In-school Outreach 1,415 1,550 1,700 Arts Education Residency 1,399 R 16 NR 1,450 R 100 NR 1,550 R 150 NR $0K $25K $50K $75K $100K Q1 Mid-Year Q3 Year-End 1099 1465 20298 50265 4311 10824 23379 58528 7612 15315 43943 70014 16901 26924 79637 91442 Class Revenue by Fiscal Year FY 2010 FY 2009 FY 2008 FY 2007 212 City of Palo Alto Community Services Department Cost Recovery Data FY 2011 Proposed Budget Program Direct Cost Recovery Full Cost Recovery Income (subsidy) based on full cost Number of Participants Arts and Science Children's Music and Dance 159%130%$16,958 Adult Music and Dance 105%92%($5,739) Visual Arts /Studio Classes 95%75%($67,357)12,065 Visual Arts /Exhibitions 13%9%($248,325)15,830 JMZ classes/outreaches 78%54%($245,178) JMZ camps 121%93%($19,903) Baylands Interpretation 59%43%($127,060)2,615 JMZ exhibits 14%10%($223,638) JMZ animal care 17%13%($166,581) Children's Performing Arts Education 73%33% 53%($284,979) ($85,217) 1,442 participants Wingspread 58%27% 49% ($49,175) ($24,633) 34 participants; 2,972 audience Outreach 21%9% 15%($192,620) ($114,677) 139 participants; 1,853 audience Teen Programs 0%0%($82,713) ($52,392) 188 participants; 1,690 audience Core Productions 24%11% 17% ($771,228) ($453,465) 440 participants; 19,743 audience Administration 15%11%0 ($556,185)0 Recreation Sports-Aquatics 295%158% 94% $42,385 ($6,897) 44,360 Sports - Sports League 91%61% 34% ($ 53,558) (158,340) 1,128 Adult Program - Special Interest Classes 113%74% 42% ($44,712) ($178,120) 693 Sports-Individual Sports 0%0%($95,021) ($165,085) 3,000 Youth Teen Programs- Aquatics 97%78% 81% ($77,760) ($67,722) 19,186 Youth Teen Programs- Special Interest Classes 136%108% 111%$33,347 $44,940 2,877 Youth Teen Programs- Middle School 61%45% 47% ($168,253) ($160,298) 1,393 Youth Teen Programs- Teen Center Programs and Youth Outreach 40%27% 28% ($288,119) ($278,890) 6,540 Youth Teen Programs- Sports Camps 122%106% 109% $11,049 $16,881 1,138 Youth Teen Programs- Day Camp 119%89% 91% ($24,686) ($19,019) 694 Special Needs Program - Senior 53%33% 20% ($7,121) ($14,480) 7,650 Special Needs Program - Therapeutics Recreation 84%53% 31% ($4,902) ($12,075)165 Special Events 7%5%($150,164)5,000 + Notes: 1. Direct costs equal direct salaries and non-salary costs. 2. Full costs equal direct costs plus CSD administration allocation and city-wide cost plan allocation charges. 4. Corrections are being made due to error in the formula in the original computations. Strike-out numbers are being replaced by the correct numbers. 964 5,354 125,000 3. CSD administration costs and city-wide cost plan allocation charges were allocated to individual program based on regular FTE. In cases where programs have no regular FTE allocated, the direct costs become the basis of the allocation. 213 GOLF COURSE FINANCIAL SUMMARY 1 2 3 4 5 6 7 8 9 10 11 12 13 15 16 17 20 21 25 26 27 28 29 30 31 32 33 34 35 37 38 39 40 41 42 43 44 45 48 49 51 52 BSWXY ACTUAL Adopted Budget Adjusted Budget Proposed Budget FY 2009 FY 2010 FY 2010 FY 2011 Revenues Tournament fees 2,651 3,600 2,518 3,600 Green fees 2,073,809 2,194,250 1,981,442 1,994,250 Monthly play cards 161,544 170,000 160,000 170,000 Driving range 365,908 415,000 415,000 390,000 Cart/club rentals 313,224 370,000 360,207 370,000 Proshop lease 29,482 32,000 29,482 32,000 Restaurant lease 43,811 67,200 43,811 67,200 Coffee Shop utilities 19,440 25,920 19,440 25,920 Interest Income - Debt Service 32,855 32,200 32,200 32,200 TOTAL REVENUE 3,042,724 3,310,170 3,044,100 3,085,170 Expenditures Debt Expenses Net Debt Service--New 555,686 560,674 560,674 559,539 Loan payment to General Fund for CIP Projects PG-08001 and PG-07700 94,849 94,849 47,684 94,849 Subtotal 650,535 655,523 608,358 654,388 Operating Expenses Salaries 518,627 493,493 493,493 86,840 Benefits 410,728 394,422 394,422 41,003 Miscellaneous - - Supplies and Materials 144,037 181,853 140,000 131,853 - General Expense 1,618 1,988 1,988 1,988 - Rents and Leases 0 300 300 300 - Facilities and Equipment Purchases 1,117 5,000 5,000 5,000 Allocated Charges 580,458 479,719 516,608 612,025 Cost Plan Charges 318,969 312,500 332,155 41,455 Subtotal 1,975,554 1,869,275 1,883,966 920,464 Contract Services Golf Maintenance 0 0 0 420,000 Miscellaneous 45,879 72,930 45,000 72,930 Range fees 152,745 157,700 157,700 157,700 Cart rentals 127,835 148,000 144,083 148,000 Club rentals 6,197 6,800 5,951 6,800 Fixed Incentives and Miscellaneous Management Fees 376,989 353,333 353,333 353,333 Credit Card Fees 33,000 38,000 38,000 38,000 Subtotal 742,645 776,763 744,067 1,196,763 TOTAL EXPENSES 3,368,734 3,301,561 3,236,391 2,771,615 Change from Prior Year 5.4%-2.0%-4%-14% ANNUAL NET ($326,010)$8,609 ($192,291) $313,555 GOLF ROUNDS 72,170 76,000 72,000 72,000 214 ATTACHMENT 4 Public Works Department (PW) 2011 Proposed Budget Budget Balancing Summary Ongoing One-time Total Expenditures: Service Level Reduction PW1. Contracting out custodial services Regular staff reduction 3.0 FTE (one vacant) 231,933 231,933 Increase custodial contract services (155,700) (155,700) 76,233 76,233 PW2. Contracting out tree trimming Regular staff reduction 4.0 FTE 390,104 390,104 Increase contract services for tree trimming (73,900) (73,900) 316,204 316,204 PW3.1 Decrease construction materials- asphalt supply 10,000 10,000 PW3.2 Decrease planting materials- trees 10,000 10,000 PW3.3 Decrease contract services- cleaning 8,000 8,000 PW3.4 Decrease contract services- facilities maintenance for non-essential requests 8,000 8,000 PW3.5 Decrease various contract services 100,000 100,000 PW4. Elimination of 1.0 FTE Project Manager - CIP Parks Infrastructure (vacant)142,271 142,271 PW5. Elimination of 1.0 FTE Admin. Associate III - CIP Engineering (retirement)103,645 103,645 215 ATTACHMENT 4 Public Works Department (PW) 2011 Proposed Budget Budget Balancing Summary Ongoing One-time Total PW6. Decrease CIP sidewalk repair and replacement Regular staff reduction 1.0 FTE 97,940 97,940 Decrease contract services for sidewalk repair 500,000 500,000 597,940 597,940 Budget Balancing Expenditures 1,372,293 - 1,372,293 Budget Balancing Summary 1,372,293 Total FTE Reductions: Regular 10.0 FTE (10 positions, 7 filled) 216 ATTACHMENT 4 Public Works Department (PW) 2011 Proposed Budget Alternatives to Proposed Budget Balancing Actions Ongoing One-time Total Expenditures: Service Level Reduction PW7. Decrease facilities rehabilitation program Regular staff reduction 1.0 FTE (0.5 General Fund, 0.5 Capital Fund)142,271 142,271 Decrease non-salary expense 154,000 154,000 296,271 296,271 PW8. Elimination of 1.0 FTE Supervising Project Engineer - Private Development 161,525 161,525 PW9. Elimination of 1.0 FTE Traffic Control Maintainer II 89,421 89,421 PW10. Elimination of half-time hourly Maintenance Assistant- graffiti removal 15,795 15,795 Budget Balancing Expenditures 563,012 - 563,012 Alternatives to Proposed Budget Balancing Actions 563,012 Total FTE Reductions: Regular 3.0 FTE (3 positions filled) Hourly 0.48 FTE (1 position, filled) 217 May 20, 2010 Table 2 Review of Other Cities' Sidewalk Replacement Programs ATTACHMENT 5 CITY Homeowner responsible for sidewalk repair?Comments Albany YES http://www.albanyca.org/index.aspx?page=525#24 Berkeley YES 16.04.170 Construction costs a lien against property when-- Procedures.: ....lien shall attach at the time of the failure to make payment as agreed, and the amount due shall be billed and shall be payable with the next ensuing tax bills against said property. (Ord. 4109 NS § 9, 1965) Burlingame YES http://www.burlingame.org/Index.aspx?page=970 Campbell NO East Palo Alto YES El Cerrito YES, except for tree damage http://www.el-cerrito.org/maintenance/streetsandlights.html Damage from street trees is repaired by the City. Foster City YES Foster City is updating an existing policy for private sidewalks that coincides with the California Streets and Highways Code where property owners have the responsibility for maintaining the sidewalks adjacent to their property in a safe condition. Fremont NO, not for Single-Family Residential property As a service, the City provides the sidewalk repair project as a way to relieve the burden of maintenance from single family homeowners. All other property owners (e.g., owners of apartments, commercial properties, condominium complexes, churches, etc.) are responsible for any necessary repairs to the sidewalk adjoining their property. Hayward Shared http://user.govoutreach.com/hayward/faq.php?cid=11144 Los Altos NO Sidewalk repairs are prioritized in busy pedestrian areas, such as downtown. Menlo Park YES Milbrae YES City administers the contract and pays for ADA ramps and curb & gutter repairs Milpitas NO Program is only funded for $150,000 per year Page 1 of 2 218 May 20, 2010 Table 2 Review of Other Cities' Sidewalk Replacement Programs ATTACHMENT 5 CITY Homeowner responsible for sidewalk repair?Comments Mountain View NO For sidewalks not on the prioritized replacement list, a voluntary cost- sharing program is in place at a block-by-block level whereby property owners pay 50% of the replacement costs and the City covers the other half. Newark YES g The maintenance of curb and gutter and sidewalk shall be the responsibility of the property owner. The city may participate with the maintenance of the curb and gutter and sidewalk under the [certain] conditions. (Ord. 226 § 5, 1987: Ord. 177 § 9, 1982) Oakland YES, except for tree damage Maintenance and repair of sidewalks is the property owner’s responsibility, except when damage is caused by an official City street tree. Pacifica YES http://www.cityofpacifica.org/depts/pw/streets/sidewalks.asp Redwood City NO For sidewalks not on the program’s boundaries, a 50-50 voluntary cost- sharing program with the City is available to individual property owners. Rohnert Park NO San Carlos NO San Francisco YES http://www.sfgov.org/site/sfdpw_page.asp?id=89724 San Jose YES Liens are used to recover City costs for sidewalk repairs. San Leandro YES, except for tree damage http://www.sanleandro.org/civica/filebank/blobdload.asp?BlobID=4742 Cost for damage from street trees is shared 50/50 by the City San Mateo NO Redevelopment Agency Funds about half the annual program at ~$125,000 Santa Clara NO Santa Cruz YES South San Francisco YES, except for tree damage http://www.ssf.net/index.aspx?NID=501 Sunnyvale NO Town of Ross YES As a matter of practice, sidewalk damage from street trees is repaired by the City. Page 2 of 2 219 220 221 Public Transportation Commission Meeting Minutes These documents were originally distributed in Council Packets. To see these pages on the City Website, follow the links below: Special Meeting of Wednesday, November 4, 2009 http://www.cityofpaloalto.org/civica/filebank/blobdload.asp?BlobID=18897 Special Meeting of Wednesday, February 24, 2010 www.cityofpaloalto.org/civica/filebank/blobdload.asp?BlobID=18860 Special Meeting of Wednesday, May 12, 2010 www.cityofpaloalto.org/civica/filebank/blobdload.asp?BlobID=21237 Attachment 7 222 Draft Revision: 233 User: ajaveloTimestamp: May 24, 2010 10:25 am Capital Budget FY 2011 City of Palo Alto 98 CC-11000Cubberley Gym Activity Room NEW CUBBERLEY GYM ACTIVITY ROOM (CC-11000) CIP FACTS: • New • Project Status: Pre-Design • Timeline: FY 2011-2011 • Overall Project Completion: 0% • Percent Spent: 0.00% • Managing Department: Community Services • Comprehensive Plan: Goal C-4, Policy C-22, Policy C-24 IMPACT ANALYSIS: • Environmental: This project is categorically exempt from CEQA under 15301. • Design Elements: This project is interior and does not require ARB nor PTC review. • Operating: Annual maintenance for this project will be covered by an existing maintenance bud- get for the Cubberley complex. • Telecommunications: None Description: This project renovates a large, but old locker room at Cubberley Gym into an activity room. Tiled half wall partitions, showers, locker furniture, a urinal, and uneven flooring will be removed and replaced with new wall surfaces, flooring, and carpet. In addition, new doors will be added for accessibility. Justification: With the Cubberley Auditorium housing a temporary library, tenants and renters are being displaced. The renovation of the old locker room into an activity room allows for placement of tenants and renters while providing rental revenue. The locker room is unsafe due to the poor condition of the uneven floors and tiles falling off as some are no longer secured to the walls. Renovation into an activity room and adding doors will make this a usable space with accessibility. FUTURE FINANCIAL REQUIREMENTS FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Total Funding Pre-Design Costs Design Costs Construction Costs $65,000 $65,000 Other Total Budget Request $65,000 $65,000 Revenues: Source of Funds:General Fund 223 ATTACHMENT 9 Utilities (UTL) 2011 Proposed Budget Department Highlights Ongoing One-time Total Expenditures: UTL1. Add 1.0 FTE Compliance Manager 192,698 192,698 UTL2. Add 2.0 FTE Installer/Repairer 218,032 218,032 UTL3. Add 1.0 FTE Senior Business Analyst 169,921 169,921 UTL4. Add 1.0 FTE Manager, Compliance 153,383 153,383 Expenditures for Total Position Requests 734,034 - 734,034 Budget Balancing Summary 734,034 Total FTE Addtions: Regular 5.0 FTE 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 Enterprise Fund Reserves Operating Budget FY 2011 City of Palo Alto 7 Draft Revision: 506 User: dwong Timestamp: May 11, 2010 2:21 pm Enterprise Fund Reserves RESERVES ($000) FY 2011 Projected Beginning Balance FY 2011 Changes FY 2011 Projected Ending Balance FY 2011 Reserve Guideline Range Electric Fund Emergency Plant Replacement 1,000 0 1,000 1,000 (min.) Distribution Rate Stabilization 9,073 (17)9,056 6,355 - 12,710 Supply Rate Stabilization 36,268 (2,881)33,387 32,016 - 64,031 Calaveras 59,865 (4,108)55,757 0 Public Benefit 2,309 0 2,309 Central Valley O&M 153 0 153 Underground Loan 717 0 717 Subtotal $109,385 $(7,006)$102,379 Gas Fund Emergency Plant Replacement 1,000 0 1,000 1,000 (min.) Distribution Rate Stabilization 6,072 (2,169)3,903 3,230 - 6,461 Supply Rate Stabilization 7,901 (3,138)4,763 6,149 - 12,298 Debt Service Reserve 952 0 952 Subtotal $15,925 $(5,307)$10,618 Wastewater Collection Fund Emergency Plant Replacement 1,000 0 1,000 1,000 (min.) Rate Stabilization 5,554 (968)4,586 2,156 - 4,311 Subtotal $6,554 $(968)$5,586 Water Fund Emergency Plant Replacement 1,000 0 1,000 1,000 (min.) Rate Stabilization 14,191 (1,877)12,314 4,300 -8,600 Bond Proceeds (Restricted)5,874 (3,500)2,374 Debt Service Reserve 780 0 780 Subtotal $21,845 $(5,377)$16,468 Refuse Fund Rate Stabilization (3,561) (6,519)(10,080) 2,614 - 5,228 Landfill Closure and Postclosure Care Liability 11,289 (475)10,814 Landfill Corrective Action Reserve 650 0 650 Subtotal $8,378 $(6,994)$1,384 246 Enterprise Fund Reserves City of Palo Alto Operating Budget FY 20118 Draft Revision: 506 User: dwong Timestamp: May 11, 2010 2:21 pm Storm Drainage Fund Rate Stabilization 300 122 422 Subtotal $300 $122 $422 Wastewater Treatment Fund Emergency Plant Replacement 2,160 (413)1,747 1,747 (max.) Rate Stabilization (14,163) (330)(14,493) 2,990 - 5,980 Bond Proceeds (Restricted)000 Subtotal $(12,003) $(743)$(12,746) Fiber Optics Fund Emergency Plant Replacement 1,000 0 1,000 1,000 (min.) Rate Stabilization 7,831 1,149 8,980 609 - 1,522 Subtotal $8,831 $1,149 $9,980 TOTAL RESERVES $159,215 $(25,124)$134,091 Emergency Plant Replacement 7,160 (413)6,747 Rate Stabilization 69,466 (16,628)52,838 Bond Proceeds (Restricted)5,874 (3,500)2,374 Debt Service Reserve 1,732 0 1,732 Calaveras 59,865 (4,108)55,757 Public Benefit 2,309 0 2,309 Central Valley O&M 153 0 153 Underground Loan 717 0 717 Shasta Rewind Loan 000 Conservation Loan 000 Landfill Corrective Action Reserve 650 0 650 Landfill Closure and Postclosure Care Liability 11,289 (475)10,814 TOTAL RESERVES $159,215 $(25,124)$134,091 RESERVES ($000) FY 2011 Projected Beginning Balance FY 2011 Changes FY 2011 Projected Ending Balance FY 2011 Reserve Guideline Range 247 248 City of Palo Alto Capital Budget FY 201189 Draft Revision: 208 User: ajaveloTimestamp: May 27, 2010 10:27 am VR-11002Installation of RFID Reader at MSC and Civic Center NEW INSTALLATION OF RFID READER AT MSC AND CIVIC CENTER (VR-11002) CIP FACTS: • New • Project Status: Other • Timeline: FY 11-12 • Overall Project Completion: 0% • Managing Department: Public Works • Comprehensive Plan: Program C-12 • Potential Board/Commission Review: N/A IMPACT ANALYSIS: • Environmental: This project is categorically exempt from CEQA. • Design Elements: None • Operating: Periodic hardware and software upgrades • Telecommunications: None Description: This project will replace the current radio frequency identification (RFID) system installed at Municipal Service Center and install a new RFID reader at the Civic Center, and will allow for the installation of RFID tags on all equipment and rolling stock. Justification: One of the recommendations noted in the recently concluded Audit of Fleet Utilization and Replacement is to improve vehicle and equipment utilization. The installation of RFID readers at the MSC and the Civic Center will allow the monitoring of the movements of all rolling stock and equipment, including trailers. Vehicles and equipment that pass the RFID readers will record a transaction, therefore providing an efficient way to track and document the number of days each vehicle is used. Supplemental Information: RFID is an inexpensive way to monitor the movements of vehicles and equipment without the need for more sophisticated (and expensive) systems such as GPS. The RFID system will provide data on usage of vehicles and equipment that enter and exit the MSC and the Civic Center garage. This will automatically create a record of daily usage. The information collected from the RFID system will be utilized by Equipment Management and the Fleet Review Committee to help assess vehicle and equipment utilization, and determine the appropriate size for the City fleet. An additional advantage of the RFID system is that it will allow vehicle access into the MSC without requiring employees to use their city identification badge. This will reduce delays at the entrance gate of the MSC. Funding of this project will be provided by a transfer of appropriation from an existing CIP Project VR-06801 (Replace City-wide Fuel Transaction and Inventory Management System). FUTURE FINANCIAL REQUIREMENTS FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Total Funding Pre-Design Costs Design Costs Construction Costs $50,000 $50,000 Other Total Budget Request $50,000 $50,000 Revenues: Source of Funds:Vehicle Replacement Fund 249 ATTACHMENT 2 Utilities (UTL) 2011 Proposed Budget Department Highlights Ongoing One-time Total Expenditures: UTL1. Add 1.0 FTE Compliance Manager 192,698 192,698 UTL2. Add 2.0 FTE Installer/Repairer 218,032 218,032 UTL3. Add 1.0 FTE Senior Business Analyst 169,921 169,921 UTL4. Add 1.0 FTE Manager, Compliance 153,383 153,383 Expenditures for Total Position Requests 734,034 - 734,034 Budget Balancing Summary 734,034 Total FTE Addtions: Regular 5.0 FTE 250 251 Patron Facility Use Fee for Community Theatre Children's Theatre Adults Children's Theatre Children Special Workshops and Presentations (including Children’s Theatre workshop fees) FEE Non-Resident Fee FEE Non-Resident Fee Junior Museum Science Outreach Program $1,000.00- $50,000.00 per program Fee plus 15% $1,000.00- $50,000.00 per program Fee plus up to 50% Junior Museum Science Outreach Unit $50.00 - $1,000.00 per unit Fee plus 15% (if more than 51% of participants are non-residents) $50.00 - $1,000.00 per unit Fee plus up to 50% (if majority of participants are non- residents) Junior Museum and Zoo Group Admission (for organized groups of 15 or more 15 to 25, larger groups shall be subdivided with additional group admission fee) $50.00 - $100.00 Fee plus 15% $50.00 - $100.00 Fee plus up to 50% Junior Museum & Zoo birthday parties $275.00-$500.00 Fee plus 15% $275.00-$500.00 Fee plus up to 50% Children's Theatre birthday parties none none $275.00-$500.00 Fee plus up to 50% Children's Theatre show production participation fee (SUSPENDED ****) none none $50.00-$300.00 Fee plus up to 50% Administrative fee per registration, additional Children's Theatre Enrichment $50.00- $250.00/day $100.00- $500.00/day $50.00- $250.00/day $100.00-$500.00/day Project LOOK! Tours Palo Alto & Ravenswood School Districts, $2.00/student $55.00/group Palo Alto & Ravenswood School Districts, $3.00/student $75.00/group Instructional Classes and camps (see notes*&**) $2.00-$800.00 Fee plus up to 50% $5.00-$800.00 Fee plus up to 50% Drop-in Activities (see notes** & ***) Workshop Supplies Cancellation Charge Locker Rental Up to 100% of fees paid Up to 100% of fees paid $1.00 - $25.00 $1.00-$17.50 $1.00 - $25.00 Arts and Sciences Activities $.50-$50.00$.50-$50.00 Permits Permit to perform in Arts and Sciences sponsored concert series. (Interested parties must apply and be selected by Program Coordinator.) Registrations $5.00-$10.00 $1.00-$1,000.00 $5.00-$2,000.00 Visual and Performing Arts COMMUNITY SERVICES DEPARTMENT Arts and Sciences 2010 FEE 2011 FEE $1.00-$5.00 Admissions $2.00 $3.00-$10.00 $10.00-$20.00 Performing Arts $3.00-$35.00 $1.00 $15.00 - $20.00 per season City of Palo Alto 2011 Proposed Municipal Fee Schedule 4-1252 COMMUNITY SERVICES DEPARTMENT Arts and Sciences 2010 FEE 2011 FEE Notes **** Pending in-lieu funding agreement with Friends of Palo Alto Children's Theatre. * Art Center Foundation members are eligible for a 20% discount on one (1) Studio class per Foundation membership year ($100.00 and above) to be reimbursed to the City from the Art Center Foundation. ** Effective December 27, 2005, a 25%, 50%, or 75% * A 25% or 50% fee discount through the Fee Reduction Program is may be provided for low-income youth, seniors, and/or disabled adult residents. Income eligibility is determined using the Community Development Block Grant (CDBG) Low-Income Guidelines. The Low-Income Guidelines are established at 80% of the Santa Clara County median income level. The income level for disabled residents is established as 100% of the Santa Clara County Median Income. Each family or individual accepted into the program can access a maximum annual subsidy of $300 for an individual or $300 times each individual family member for a family. (Example: A family of 4 would have a total of $1,200 usable subsidy. 4 Family Members X $300 = $1,200) Each youth, senior, and/or disabled adult accepted into the program may recieve an annual subsidy up to $300. Discount percentage will be based on income level. Discount may not be applied in conjunction with any other discount program. *** For every 10 hours of time purchased in a Visual Arts Studio drop-in program, one hour is given free. The Director of Community Services is authorized to offer promotional fee discounts of up to 25% for purposes of promotion and marketing of programs. Such discounts are intended to maximize revenue and/or participation. City of Palo Alto 2011 Proposed Municipal Fee Schedule 4-2253 Golf Course-Special Fees * League Reservation Fee Tournament Reservation Fee Back 9 Holes (9-hole rate applies only 1.5 hours after daylight) Daily Fee Senior (non-resident 60 and over) Senior (resident 60 and over) Student (21 and under 18-21) Junior (17 and under) NCGA Jr. Fee (Northern California Golf Association Jr.) Must also be a member of NCGA after 3:00 p.m. (Sept. 1 through Oct. 31) after 1:30 p.m. (Nov. 1 through March 31) after 12:30 p.m. (April 1 through Aug. 31) after 3:00 p.m. (Sept. 1 through Oct. 31) 6:00 p.m. to dark (Nov. 1 through March 31) 3:00 p.m. to dark (April 1 through Aug. 31) 6:00 p.m. to dark Back 9 Holes (rate applies only 1.5 hours after Daylight) Daily Fee Student (21 and under 18-21) Junior (17 and under) NCGA Jr. Fee (Northern California Golf Association Jr.) Must also be a member of NCGA after 4:00 p.m. (Sept. 1 through Oct. 31) after 1:30 p.m. (Nov. 1 through March 31) after 12:30 p.m. (April 1 through Aug. 31) after 3:00 p.m. (Sept. 1 through Oct. 31) 6:00 p.m. to dark (Nov. 1 through March 31) 3:00 p.m. to dark (April 1 through Aug. 31) 6:00 p.m. to dark Resident: $46.00 - $51.00 Non-Res: $48.00 - $53.00 $48.00 - $53.00 Super Twilight $29.00 - $32.00 $29.00 - $32.00 Twilight $32.00 - $35.00 $33.00 - $37.00 Super Twilight $24.00 - $27.00 Twilight $28.00 - $31.00 $28.00 - $31.00 $24.00 - $27.00 $10.00 WEEKEND/PRIME TIME RATES (Daily fees unless otherwise noted): New Years Day, Martin Luther King Jr. Day, President’s Day, Memorial Day, Independence Day, Labor Day, Veteran's Day, Thanksgiving and the day after Thanksgiving, Christmas $26.00 - $29.00 $26.00 - $29.00 $23.00 - $25.00 $26.00 - $29.00 $32.00 - $35.00 $23.00 - $25.00 $37.00 - $39.00 $32.00 - $35.00 Resident: $36.00 - $40.00 Non-Res: $38.00 - $42.00 $26.00 - $29.00 $27.00 - $30.00 $27.00 - $30.00 January 1- December 31, 2010 January 1- December 31, 2011 $250.00-$450.00 per team $250.00 - $450.00 per team $1.00 - $5.00 per player$1.00 - $5.00 per player Green Fee - Admissions WEEKDAYS – (Daily fees unless otherwise noted) COMMUNITY SERVICES DEPARTMENT Golf Services 2010 FEE 2011 FEE $26.00 - $30.00$25.00 - $28.00 $18.00 - $22.00 $10.00 $16.00 - $20.00 City of Palo Alto 2011 Proposed Municipal Fee Schedule 5-1254 Dance parties* Group rate* Individual entry rate* Special Events* Card replacement fee Resident Admission Daily Non-Resident Admission Daily Resident Admission Daily Non-Resident Admission Daily Youth (17 and under)$2.00-$5.00 $3.00-$6.00 $3.00-$6.00 $4.00-$7.00 Adult (18 and over)$3.00-$5.00 $4.00-$7.00 $4.00-$6.00 $5.00-$8.00 Senior (60 and over) and Senior Lap $2.00-$4.00 $2.00-$4.00 $3.00-$5.00 $3.00-$5.00 Lap Swimming $3.00-$5.00 $3.00-$5.00 $4.00-$6.00 $4.00-$6.00 Youth (17 and under) $20.00-$27.00 Not Applicable Adult (18 and over)$30.00-$40.00 Not Applicable Senior (60 and over)$20.00-$30.00 Not Applicable Non-Resident Non-Resident Fee Fee Youth (17 and under)$2.50 - $5.00 per admission $2.50 - $6.00 per admission Adult (18 and over) $3.00 - $6.00 per admission $3.00 - $7.00 per admission Senior (60 and over)$2.00 - $4.00 per admission $2.00 - $5.00 per admission Youth (17 and under)$10.00-$500.00 $10.00-$500.00 Adult (18 and over) $10.00-$500.00 $10.00-$500.00 Senior (60 and over)$10.00-$500.00 $10.00-$500.00 Youth (17 and under) $10.00-$500.00 $10.00-$500.00 Adult (18 and over) $10.00-$750.00 $10.00-$750.00 Senior (60 and over)$10.00-$750.00 $10.00-$750.00 Family $10.00-$750.00 $10.00-$750.00 Resident Admission Daily Non-Resident Admission Daily Resident Admission Daily Non-Resident Admission Daily Youth (17 and under)$2.00-$5.00 $3.00-$6.00 Adult (18 and over) $3.00-$5.00 $4.00-$7.00 Senior (60 and over) and Senior Lap $2.00-$4.00 $2.00-$4.00 Lap Swimming (18 and over)$3.00-$5.00 $3.00-$5.00 $25.00-$35.00 $18.00-$25.00 Facility Admissions COMMUNITY SERVICES DEPARTMENT Recreation Activities 2010 FEE $5.00-$25.00 2011 FEE Resident Coupon Book-10 tickets (available to Palo Alto Residents only)* January 1 - December 31, 2010 January 1 - December 31, 2011 $.50-$10.00 General Recreation $.50-$10.00 $15.00-$75.00 $15.00-$25.00 See "Swimming Pools" fee above $15.00-$75.00 $5.00-$25.00 $.50-$20.00 $1.00-$5.00 Swimming $1.00-$5.00 $.50-$20.00 Swimming Pools – PAUSD Pool Facilities (Ages 2 and under -- Free) Fee Fee Recreation Activities (Junior Museum related-activity items previously listed below relating to Science program were moved to Arts & Sciences activity fees due to department restructure.) Lap Swim Pass* Rinconada Pool Only Swimming Pools – Rinconada Complex and PAUSD pools when operated by the City – Ages 2 & under -- Free Membership Card / Swim Pass* Rinconada Pool Only Fee replaced by "Membership Card" above Fee replaced by "Membership Card" above Recreation Swim Pass* Rinconada Pool Only City of Palo Alto 2011 Proposed Municipal Fee Schedule 6-1255 Open Space and Parks Special Use Permit Individual entry rate* Special Events (asterisk removed) Playground Inspection Fee Field Inspector Hourly Fee Vehicle Entry Fee ** Annual Resident Vehicle Entry Pass ** Organic Garden Plots* Senior rate Garden Plot Clean-up/Security Deposit Fee Non-Resident Fee Fee Non-Resident Fee Cancellation Charge Drop-in Activities* Excursion Fee*$2.00-$700.00 $2.00-$750.00 $2.00-$700.00 $2.00-$750.00 Instructional Classes* and Camps*$2.00-$800.00 Fee plus up to 50% $2.00-$800.00 Fee plus up to 50% Interpretive Tours (asterisk removed)$30.00-$100.00/hour $30.00-$120.00/hour $30.00-$100.00/hour $30.00-$120.00/hour Birthday Parties at Foothills Park $106.00-$318.00 Not Available $106.00-$318.00 Not Available ** Fee does not apply to vehicles with valid disabled placard or license plate, vehicles of registered volunteers, City service vehicles, and vehicles of City staff when performing city business. Registrations none $5.00 $40.00 Community Garden $100.00 per garden plot $.36/square foot/year $.40/square foot/year 25% discount 25% discount $.50-$100.00 $.50-$100.00 $150.00/inspection $150.00/inspection $77.00/hour $77.00/hour none $5.00-$25.00 $5.00-$25.00 $300.00-$2,000.00 $300.00-$2,000.00 * Effective December 27, 2005, a 25%, 50%, or 75% * A 25% or 50% fee discount through the Fee Reduction Program is may be provided for low-income youth (17 and under), senior (60 and over), and/or disabled adult residents. Income eligibility is determined using the Community Development Block Grant (CDBG) Low-Income Guidelines. The Low-Income Guidelines are established at 80% of the Santa Clara County median income level. The income level for disabled residents is established as 100% of the Santa Clara County Median Income. Each family or individual accepted into the program can access a maximum annual subsidy of $300 for an individual or $300 times each individual family member for a family. (Example: A family of 4 would have a total of $1,200 usable subsidy. 4 Family Members X $300 = $1,200) Each youth (17 and under), senior (60 and over), and/or disabled adult accepted into the program may recieve an annual subsidy up to $300. Discount percentage will be based on income level. Discount may not be applied in conjunction with any other discount program. Open Space Activities Up to 100% of fees paidUp to 100% of fees paid $.50-$100.00$.50-$100.00 $100.00 per garden plot COMMUNITY SERVICES DEPARTMENT Open Space and Parks 2010 FEE 2011 FEE Facility Admissions General Recreation City of Palo Alto 2011 Proposed Municipal Fee Schedule 7-1256 257 Patron Facility Use Fee for Community Theatre Children's Theatre Adults Children's Theatre Children Special Workshops and Presentations (including Children’s Theatre workshop fees) FEE Non-Resident Fee FEE Non-Resident Fee Junior Museum Science Outreach Program $1,000.00- $50,000.00 per program Fee plus 15% $1,000.00- $50,000.00 per program Fee plus up to 50% Junior Museum Science Outreach Unit $50.00 - $1,000.00 per unit Fee plus 15% (if more than 51% of participants are non-residents) $50.00 - $1,000.00 per unit Fee plus up to 50% (if majority of participants are non- residents) Junior Museum and Zoo Group Admission (for organized groups of 15 or more 15 to 25, larger groups shall be subdivided with additional group admission fee) $50.00 - $100.00 Fee plus 15% $50.00 - $100.00 Fee plus up to 50% Junior Museum & Zoo birthday parties $275.00-$500.00 Fee plus 15% $275.00-$500.00 Fee plus up to 50% Children's Theatre birthday parties none none $275.00-$500.00 Fee plus up to 50% Children's Theatre show production participation fee (SUSPENDED ****) none none $50.00-$300.00 Fee plus up to 50% Administrative fee per registration, additional Children's Theatre Enrichment $50.00- $250.00/day $100.00- $500.00/day $50.00- $250.00/day $100.00-$500.00/day Project LOOK! Tours Palo Alto & Ravenswood School Districts, $2.00/student $55.00/group Palo Alto & Ravenswood School Districts, $3.00/student $75.00/group Instructional Classes and camps (see notes*&**) $2.00-$800.00 Fee plus up to 50% $5.00-$800.00 Fee plus up to 50% Drop-in Activities (see notes** & ***) Workshop Supplies Cancellation Charge Locker Rental Up to 100% of fees paid Up to 100% of fees paid $1.00 - $25.00 $1.00-$17.50 $1.00 - $25.00 Arts and Sciences Activities $.50-$50.00$.50-$50.00 Permits Permit to perform in Arts and Sciences sponsored concert series. (Interested parties must apply and be selected by Program Coordinator.) Registrations $5.00-$10.00 $1.00-$1,000.00 $5.00-$2,000.00 Visual and Performing Arts COMMUNITY SERVICES DEPARTMENT Arts and Sciences 2010 FEE 2011 FEE $1.00-$5.00 Admissions $2.00 $3.00-$10.00 $10.00-$20.00 Performing Arts $3.00-$35.00 $1.00 $15.00 - $20.00 per season City of Palo Alto 2011 Proposed Municipal Fee Schedule 4-1258 COMMUNITY SERVICES DEPARTMENT Arts and Sciences 2010 FEE 2011 FEE Notes **** Pending in-lieu funding agreement with Friends of Palo Alto Children's Theatre. * Art Center Foundation members are eligible for a 20% discount on one (1) Studio class per Foundation membership year ($100.00 and above) to be reimbursed to the City from the Art Center Foundation. ** Effective December 27, 2005, a 25%, 50%, or 75% * A 25% or 50% fee discount through the Fee Reduction Program is may be provided for low-income youth, seniors, and/or disabled adult residents. Income eligibility is determined using the Community Development Block Grant (CDBG) Low-Income Guidelines. The Low-Income Guidelines are established at 80% of the Santa Clara County median income level. The income level for disabled residents is established as 100% of the Santa Clara County Median Income. Each family or individual accepted into the program can access a maximum annual subsidy of $300 for an individual or $300 times each individual family member for a family. (Example: A family of 4 would have a total of $1,200 usable subsidy. 4 Family Members X $300 = $1,200) Each youth, senior, and/or disabled adult accepted into the program may recieve an annual subsidy up to $300. Discount percentage will be based on income level. Discount may not be applied in conjunction with any other discount program. *** For every 10 hours of time purchased in a Visual Arts Studio drop-in program, one hour is given free. The Director of Community Services is authorized to offer promotional fee discounts of up to 25% for purposes of promotion and marketing of programs. Such discounts are intended to maximize revenue and/or participation. City of Palo Alto 2011 Proposed Municipal Fee Schedule 4-2259 Golf Course-Special Fees * League Reservation Fee Tournament Reservation Fee Back 9 Holes (9-hole rate applies only 1.5 hours after daylight) Daily Fee Senior (non-resident 60 and over) Senior (resident 60 and over) Student (21 and under 18-21) Junior (17 and under) NCGA Jr. Fee (Northern California Golf Association Jr.) Must also be a member of NCGA after 3:00 p.m. (Sept. 1 through Oct. 31) after 1:30 p.m. (Nov. 1 through March 31) after 12:30 p.m. (April 1 through Aug. 31) after 3:00 p.m. (Sept. 1 through Oct. 31) 6:00 p.m. to dark (Nov. 1 through March 31) 3:00 p.m. to dark (April 1 through Aug. 31) 6:00 p.m. to dark Back 9 Holes (rate applies only 1.5 hours after Daylight) Daily Fee Student (21 and under 18-21) Junior (17 and under) NCGA Jr. Fee (Northern California Golf Association Jr.) Must also be a member of NCGA after 4:00 p.m. (Sept. 1 through Oct. 31) after 1:30 p.m. (Nov. 1 through March 31) after 12:30 p.m. (April 1 through Aug. 31) after 3:00 p.m. (Sept. 1 through Oct. 31) 6:00 p.m. to dark (Nov. 1 through March 31) 3:00 p.m. to dark (April 1 through Aug. 31) 6:00 p.m. to dark Resident: $46.00 - $51.00 Non-Res: $48.00 - $53.00 $48.00 - $53.00 Super Twilight $29.00 - $32.00 $29.00 - $32.00 Twilight $32.00 - $35.00 $33.00 - $37.00 Super Twilight $24.00 - $27.00 Twilight $28.00 - $31.00 $28.00 - $31.00 $24.00 - $27.00 $10.00 WEEKEND/PRIME TIME RATES (Daily fees unless otherwise noted): New Years Day, Martin Luther King Jr. Day, President’s Day, Memorial Day, Independence Day, Labor Day, Veteran's Day, Thanksgiving and the day after Thanksgiving, Christmas $26.00 - $29.00 $26.00 - $29.00 $23.00 - $25.00 $26.00 - $29.00 $32.00 - $35.00 $23.00 - $25.00 $37.00 - $39.00 $32.00 - $35.00 Resident: $36.00 - $40.00 Non-Res: $38.00 - $42.00 $26.00 - $29.00 $27.00 - $30.00 $27.00 - $30.00 January 1- December 31, 2010 January 1- December 31, 2011 $250.00-$450.00 per team $250.00 - $450.00 per team $1.00 - $5.00 per player$1.00 - $5.00 per player Green Fee - Admissions WEEKDAYS – (Daily fees unless otherwise noted) COMMUNITY SERVICES DEPARTMENT Golf Services 2010 FEE 2011 FEE $26.00 - $30.00$25.00 - $28.00 $18.00 - $22.00 $10.00 $16.00 - $20.00 City of Palo Alto 2011 Proposed Municipal Fee Schedule 5-1260 Dance parties* Group rate* Individual entry rate* Special Events* Card replacement fee Resident Admission Daily Non-Resident Admission Daily Resident Admission Daily Non-Resident Admission Daily Youth (17 and under)$2.00-$5.00 $3.00-$6.00 $3.00-$6.00 $4.00-$7.00 Adult (18 and over)$3.00-$5.00 $4.00-$7.00 $4.00-$6.00 $5.00-$8.00 Senior (60 and over) and Senior Lap $2.00-$4.00 $2.00-$4.00 $3.00-$5.00 $3.00-$5.00 Lap Swimming $3.00-$5.00 $3.00-$5.00 $4.00-$6.00 $4.00-$6.00 Youth (17 and under) $20.00-$27.00 Not Applicable Adult (18 and over)$30.00-$40.00 Not Applicable Senior (60 and over)$20.00-$30.00 Not Applicable Non-Resident Non-Resident Fee Fee Youth (17 and under)$2.50 - $5.00 per admission $2.50 - $6.00 per admission Adult (18 and over) $3.00 - $6.00 per admission $3.00 - $7.00 per admission Senior (60 and over)$2.00 - $4.00 per admission $2.00 - $5.00 per admission Youth (17 and under)$10.00-$500.00 $10.00-$500.00 Adult (18 and over) $10.00-$500.00 $10.00-$500.00 Senior (60 and over)$10.00-$500.00 $10.00-$500.00 Youth (17 and under) $10.00-$500.00 $10.00-$500.00 Adult (18 and over) $10.00-$750.00 $10.00-$750.00 Senior (60 and over)$10.00-$750.00 $10.00-$750.00 Family $10.00-$750.00 $10.00-$750.00 Resident Admission Daily Non-Resident Admission Daily Resident Admission Daily Non-Resident Admission Daily Youth (17 and under)$2.00-$5.00 $3.00-$6.00 Adult (18 and over) $3.00-$5.00 $4.00-$7.00 Senior (60 and over) and Senior Lap $2.00-$4.00 $2.00-$4.00 Lap Swimming (18 and over)$3.00-$5.00 $3.00-$5.00 $25.00-$35.00 $18.00-$25.00 Facility Admissions COMMUNITY SERVICES DEPARTMENT Recreation Activities 2010 FEE $5.00-$25.00 2011 FEE Resident Coupon Book-10 tickets (available to Palo Alto Residents only)* January 1 - December 31, 2010 January 1 - December 31, 2011 $.50-$10.00 General Recreation $.50-$10.00 $15.00-$75.00 $15.00-$25.00 See "Swimming Pools" fee above $15.00-$75.00 $5.00-$25.00 $.50-$20.00 $1.00-$5.00 Swimming $1.00-$5.00 $.50-$20.00 Swimming Pools – PAUSD Pool Facilities (Ages 2 and under -- Free) Fee Fee Recreation Activities (Junior Museum related-activity items previously listed below relating to Science program were moved to Arts & Sciences activity fees due to department restructure.) Lap Swim Pass* Rinconada Pool Only Swimming Pools – Rinconada Complex and PAUSD pools when operated by the City – Ages 2 & under -- Free Membership Card / Swim Pass* Rinconada Pool Only Fee replaced by "Membership Card" above Fee replaced by "Membership Card" above Recreation Swim Pass* Rinconada Pool Only City of Palo Alto 2011 Proposed Municipal Fee Schedule 6-1261 Open Space and Parks Special Use Permit Individual entry rate* Special Events (asterisk removed) Playground Inspection Fee Field Inspector Hourly Fee Vehicle Entry Fee ** Annual Resident Vehicle Entry Pass ** Organic Garden Plots* Senior rate Garden Plot Clean-up/Security Deposit Fee Non-Resident Fee Fee Non-Resident Fee Cancellation Charge Drop-in Activities* Excursion Fee*$2.00-$700.00 $2.00-$750.00 $2.00-$700.00 $2.00-$750.00 Instructional Classes* and Camps*$2.00-$800.00 Fee plus up to 50% $2.00-$800.00 Fee plus up to 50% Interpretive Tours (asterisk removed)$30.00-$100.00/hour $30.00-$120.00/hour $30.00-$100.00/hour $30.00-$120.00/hour Birthday Parties at Foothills Park $106.00-$318.00 Not Available $106.00-$318.00 Not Available ** Fee does not apply to vehicles with valid disabled placard or license plate, vehicles of registered volunteers, City service vehicles, and vehicles of City staff when performing city business. Registrations none $5.00 $40.00 Community Garden $100.00 per garden plot $.36/square foot/year $.40/square foot/year 25% discount 25% discount $.50-$100.00 $.50-$100.00 $150.00/inspection $150.00/inspection $77.00/hour $77.00/hour none $5.00-$25.00 $5.00-$25.00 $300.00-$2,000.00 $300.00-$2,000.00 * Effective December 27, 2005, a 25%, 50%, or 75% * A 25% or 50% fee discount through the Fee Reduction Program is may be provided for low-income youth (17 and under), senior (60 and over), and/or disabled adult residents. Income eligibility is determined using the Community Development Block Grant (CDBG) Low-Income Guidelines. The Low-Income Guidelines are established at 80% of the Santa Clara County median income level. The income level for disabled residents is established as 100% of the Santa Clara County Median Income. Each family or individual accepted into the program can access a maximum annual subsidy of $300 for an individual or $300 times each individual family member for a family. (Example: A family of 4 would have a total of $1,200 usable subsidy. 4 Family Members X $300 = $1,200) Each youth (17 and under), senior (60 and over), and/or disabled adult accepted into the program may recieve an annual subsidy up to $300. Discount percentage will be based on income level. Discount may not be applied in conjunction with any other discount program. Open Space Activities Up to 100% of fees paidUp to 100% of fees paid $.50-$100.00$.50-$100.00 $100.00 per garden plot COMMUNITY SERVICES DEPARTMENT Open Space and Parks 2010 FEE 2011 FEE Facility Admissions General Recreation City of Palo Alto 2011 Proposed Municipal Fee Schedule 7-1262 City of Palo Alto Capital Budget FY 2011275 TE-11005Implementation of New Utility Rates NEW IMPLEMENTATION OF NEW UTILITY RATES RESTRUCTURED TIERED RATES ON BILLS (TE-11005) CIP FACTS: • New • Project Status: Design • Timeline: FY 2011-2013 • Overall Project Completion: 0% • Percent Spent: 0.00% • Managing Department: Utilities • Comprehensive Plan: Supports Goal N-4 and N-9 IMPACT ANALYSIS: • Environmental: Not a project under CEQA. • Design Elements: None • Operating: None • Telecommunications: None Description: This is a software modification project for the SAP-ISU customer information and billing system. The project will require significant programming to upgrade the SAP billing system and Pitney Bowes bill print software allowing for new rate structures and time differentiated pricing. This will also require a new system module, Energy Data Management, to store time specific data. It will also provide the lowest possible transaction fees for the City’s credit card processing of Utilities payments. See Supplemental Information for more information. Justification: In support of the City's Climate Protection Goals the utility will be proposing new rate structures that provide price incentives for customers to conserve resources. Current rate structures for electric, gas, and water utilities have a limited or no tier pricing structure with relatively small differentials in pricing. New rate structures will be evaluated to determine if additional tiering and increased price differentials between the tiers will incent the reduction of usage. Supplemental Information: The City’s current Utilities payment process allows for individual credit card transactions each month. Standard credit card transactions fees, without the recurring payment option, are based on a percentage of the transaction amount plus a per transaction fee. Customers are currently unable to have their bills automatically paid on a monthly, recurring, basis. If the recurring payment option is added, the fee is standardized at $0.75 per transaction. Based on assuming 20% of the Utilities customers electing to pay their Utilities bill by credit card on a recurring (automatically- charged) basis, the recurring credit card option can save approximately $500,000 per year in credit card transaction fees. $100,000 has been budgeted in FY 2011 for project scope. $1,000,000 has been budgeted in FY 2012 in anticipation of project implementation which will include software enhancements, new hardware, and consulting costs. This funding will be reevaluated upon completion of the project scope 263 276 City of Palo Alto Capital Budget FY 2011 IMPLEMENTATION OF NEW UTILITY RATES RESTRUCTURED TIERED RATES ON BILLS FUTURE FINANCIAL REQUIREMENTS FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Total Funding Pre-Design Costs Design Costs Construction Costs $100,000 $1,000,000 $1,100,000 Other Total Budget Request $100,000 $1,000,000 $1,100,000 Revenues: $100,000 $1,000,000 $1,100,000 Source of Funds: Technology Fund with the following reimbursements: Electric Fund($516,040); Fiber Optics Fund($108); Gas Fund($232,656); Refuse Fund($125,833); Storm Drainage Fund($26,897); Wastewater Collection Fund($67,725); Water Fund($130,741) 264 APPENDIX 8 265 This page is intentionally left blank. 266 1 City Manager’s Proposed Budget for Fiscal Year 2011 City of Palo Alto Finance Committee May 6, 2010 2 Budget Schedule DATE DESCRIPTION TIME/LOCATION DEPARTMENTS ATTENDING Monday, May 3 City CouncilCity Manager Proposed Budget 7pm Council Chambers Presentation and Transmittal of FY2011 Proposed Budget - Referral to Finance Committee Tuesday, May 4 Budget Outreach Boards/Commissions MeetingCity Manager 6 – 7:30pmCouncil Chambers Discussion and input on the Proposed Budget by Boards, Commissions and Friends groups Thursday,May 6 Finance CommitteeSpecial Meeting Budget ReviewKick-Off 7pmCouncil Chambers Transmittal of 2011 General Fund budget – Council Appointed Officers (except City Attorney), Council, Human Resources, Library Tuesday, May 11 Finance Committee Special Meeting 7pm Council Chambers Community Services, City Attorney, Planning Saturday, May 15 Budget Outreach Communitywide MeetingCity Manager 9:30 – 11amLucie Stern Ballroom Discussion and public input by all community members Tuesday,May 18 Finance Committee 7pmCouncil Chambers Police, Fire, ASD, ASD Internal Service Funds 2 3 Budget Schedule DATE DESCRIPTION TIME/LOCATION DEPARTMENTS ATTENDING Tuesday, May 25 Finance CommitteeSpecial Meeting 7pm Council Chambers Utilities and Utilities CIP, Public Works General Fund Operating, General Fund CIP Thursday,May 27 Finance CommitteeSpecial Meeting 7pmCouncil Chambers Public Works - Enterprise Funds (Storm Drain, Refuse, Wastewater Treatment), Internal Service Fund and related CIP Tuesday,June 8 Finance Committee 7pmCouncil Chambers Municipal Fee ScheduleContracts Greater than $85k, Wrap-Up Monday, June 21 City Council 7pm Council Chambers Budget Review and Public Hearing Monday, June 28 City CouncilSpecial Meeting –Budget Adoption 7pmCouncil Chambers BUDGET ADOPTION Tuesday, June 29 City CouncilSpecial Meeting –Budget Adoption 7pm Council Chambers BUDGET ADOPTION –if needed Wednesday June 30 City CouncilSpecial Meeting – Budget Adoption 7pmCouncil Chambers BUDGET ADOPTION –if needed 3 4 BUDGET SUMMARY – All Funds Operating Capital Total FY 11 Est. Rev. $ 414.0 $ 44.5 $458.5 Util. of F.B. 28.3 20.0 48.3 Total Resources $ 442.3 $ 64.5 $506.8 FY 11 App. $ 442.3* $ 64.5* $506.8* * Net of Interfund Transfers and Cost Allocations 5 TOTAL OPERATING BUDGET SUMMARY –General Fund FY 11 Estimated Revenues $ 139,200,000 FY 10-11 Appropriations $ 137,093,000* Temporary Surplus $ 2,107,000 *Includes $1.1 million in one-time expenses 6 TOTAL OPERATING BUDGET General Fund ($000) Proposed FY 11 $ 137,093 $137,093 Adjusted FY 10 145,602 Adopted-in-concept $146,711 Amount of Decrease $ (8,509) $ (9,618) Percent Decrease ( 5.8%) ( 6.5%) 267 2 7 Proposed Budget FY 2011 Source of Funds (in 000's)2010 2011 2011 2011Summary Level Detail Adjusted Proposed Changes % ChangeSales Taxes Sales Taxes 17,313 18,218 905 5.23% Property Taxes Property Taxes 25,778 25,907 129 0.50% Utility Users Tax City Utilities 7,966 7,943 (23) -0.29%Telephone 3,451 3,486 35 1.01% Transient Occupancy Tax Transient Occupancy Tax 6,639 7,021 382 5.75% Other Taxes and Fines Vehicle In-Lieu 200 205 5 2.50%Documentary Transfer 3,250 3,613 363 11.17% Parking Violations 1,520 1,545 25 1.64%Other Taxes & Fines 614 505 (109) -17.74% Charges for Services Stanford 7,632 7,902 270 3.53%(Reimbursements)Golf Related Fee 2,919 2,928 9 0.30%Class Program 2,727 2,419 (308) -11.30%Paramedic 1,754 1,954 200 11.43%Plan Checking 1,460 1,218 (243) -16.61%Cable Franchise 600 600 - 0.00%Other Fees 1,925 2,930 1,005 52.19% Permits and Licenses Street Cut Fee 703 638 (65) -9.27%Permits 3,736 3,777 41 1.10%Licenses 73 77 4 5.21% 8 Proposed Budget FY 2011 Source of Funds (Continued) (in 000's)2010 2011 2011 2011Summary Level Detail Adjusted Proposed Changes % ChangeCharges to Other Funds Cost Plan 8,233 7,959 (274) -3.33%Police to Utl Communication 497 602 105 21.13%Pwd to Parking Dist PW Admin 563 634 71 12.61%Other Reimbursements 1,252 1,427 175 13.94% Rental Income Utilities 10,311 10,238 (73) -0.70%Cubberley Tenants Property Rental 1,774 1,866 92 5.18%Use of City Facilites Facilities 1,440 1,288 (152) -10.59%Other 81 324 243 300.42% From Other Agencies Other Agencies 323 156 (167) -51.70% Return on Investments Interest Income 1,662 1,646 (16) -0.97% Other Revenue Other Revenue 1,739 1,491 (248) -14.26% Total Revenues 120,145 122,527 2,382 1.98% Operating Transfers-In Equity Transfer 16,420 16,534 114 0.69%Parking Districts 1,044 1,069 25 2.40%Other 5,445 1,081 (4,364) -80.15% Total Source of Funds 143,054 141,211 (1,843) -1.29% 9 Proposed Budget FY 2011 Use of Funds (Continued) 2010 2011 2011 2011 (in 000's)Department Adjusted Proposed Changes % ChangeATT2,523 2,354 (169) -6.70%AUD 987 982 (5) -0.51%CLK 1,596 1,093 (503) -31.52%COU 298 159 (139) -46.64% MGR 2,436 2,154 (282) -11.58%ASD 6,713 6,359 (354) -5.27%HRD 2,795 2,749 (46) -1.65%Total Admin 17,348 15,850 (1,498) -8.64% CSD 21,694 20,142 (1,552) -7.15%FIR 26,254 27,007 753 2.87%LIB 6,370 6,421 51 0.80%PCE 9,863 9,078 (785) -7.96%POL 30,010 29,181 (829) -2.76%PWD 13,426 13,000 (426) -3.17%NON 6,071 6,088 17 0.28%Total Non-Admin 113,688 110,917 (2,771) -2.44% Operating Transfers-Out CIP 9,900 9,204 (696) -7.03%Debt Service 988 1,080 92 9.32%Other 42 42 (0) -0.69% Total Use of Funds 141,966 137,093 (4,873) -3.43% Net Surplus (Deficit) 1,088 4,118 3,030 278.51% 10 FY 2011General Fund Revenues by Type Total $120,516,000 11 SALES TAX -General Fund FY 2011 Estimated Revenue $ 18,218,000 FY 2010 Estimated Revenue 17,313,368* Amount Increase $ 904,632 Percent Increase 5.23 % * As revised at Mid Year 12 SALES TAX HISTORY General Fund 268 3 13 SALES TAX COLLECTIONSBy Business CategoryCalendar Year 2009 12.4% 14 PROPERTY TAX General Fund FY 2011 Estimated Revenue $ 25,884,000 FY 2010 Estimated Revenue 25,755,000* Amount Increase $ 129,000 Percent Increase 0.50 % * As revised at Mid Year 15 PROPERTY TAX HISTORY General Fund 16 DOCUMENTARY TRANSFER TAX General Fund FY 2011 Estimated Revenue $ 3,613,000 FY 2010 Estimated Revenue 3,250,000* Amount Increase $ 363,000 Percent Increase 11.17 % * As revised at Mid Year 17 DOCUMENTARY TRANSFER TAX HISTORY -General Fund 18 TRANSIENT OCCUPANCY TAX HISTORY -General Fund 269 4 19 UTILITY USERS TAX HISTORY -General Fund 20 General Fund Expenditures by Department – Fiscal Year 2011 Proposed Budget Total $137,100,000 21 Summary of Appropriations by Expenditures Category – Fiscal Year 2011 Proposed Budget Total $137,100,000 22 Balancing the Budget Proposed Budget Budget gap (revised) $(7.3 million) Proposed reductions $ 8.5 million New revenues, revenue increases $ 0.9 million Total recommendations $ 9.4 million Temporary “surplus”$ 2.1 million* *Flexibility for decision making process ($1.1 million one-time) 22 23 Four-Year View ($millions)FY 2009 FY 2010(adopted)FY 2010(mid-year)FY 2011(proposed)FY 2012(projected) Gap $8.0 $10.0 $6.2 $7.3 $1.1?(additional gap) One-time adjustments $8.8 $3.0 $6.2 Structural adjustments $7.0 $7.3recommended $1.1?(recommended) Final 09 CAFR adjustmentsBottom line $0.8 $0.8 $0 $0 $0 $0 24 Balancing the Budget Structural Deficits and Ongoing Changes City is facing a long-term structural funding gap FY 2010 $7 million in structural cost savings New two tier pension SEIU and Management/Professional Ongoing pay and benefits reduction of approximately 4% Non-safety employees contributing towards medical premiums 24 270 5 25 Balancing the Budget Outside the Proposed Budget/On Top of the $9.4 Million Proposal Budget balancing alternatives $0.9 million Potential budget savings $1 million? Regionalized services Consolidated services Transition services to non-profits via public/private partnerships Increase rents for City facilities to be closer to market 25 26 Balancing the Budget Criteria Areas where costs could be reduced and the level of service would stay the same Areas where costs could be reduced and the service would be performed at a reduced level Areas where the cost of providing the service could be shifted to residents or participants 26 27 PROPOSED STRATEGY ESTIMATED NET SAVINGS Elimination of contract funding for the annual Sidewalk Replacement Program with shift of responsibility for sidewalk repair to residents ($500,000) Contracting out of some tree trimming/line clearing and elimination of four full-time positions (386,000) The elimination of the Traffic Team will cut five full-time Police Officer positions (887,000) Elimination of one Program Coordinator position serving the centralized community outreach program, including Neighborhood Watch, Citizen and Student Academies, Community Newsletter, Community Events and Fairs, Community Education Programs, Coordination of the Officer Request for Services Programs, coordinating public education efforts in Emergency Preparedness with Block Coordinators, Neighborhood Watch Captains and PANDA (103,000) Funding for school crossing guards eliminated (345,000) Reduction of HSRAP funding (50,000) Library hours shortened and the closure of the Library on Mondays at Main, Mitchell and the Children's Library will eliminate two full-time and one part-time position (215,000) The re-opening of the College Terrace Library delayed an additional eight months to June 30, 2011 (74,000) Book collection funds for the Libraries reduced (117,000)Partial cost recovery increases are proposed through increased participation and/or admission fees for many programs including Junior Museum and Zoo, Art Center Gallery, Children's Theatre productions, recreation classes, art classes, nature interpretive program, and the science outreach program, Animal Services, HazMat inspection fees and Planning fees. City of Palo AltoProposed Budget Balancing Recommendations for Fiscal Year 2011 General Fund 28 PROPOSED STRATEGY ESTIMATED NET SAVINGSShuttle services will be reduced to hourly stops at limited locations eliminating the service for the Noon shuttle and Marguerite shuttle and reducing the Cross-town shuttle to one bus (196,000) Elimination of the twilight concert and brown-bag summer concert series (27,000) Elimination of one full-time Child care position and reduction of one Family Resources Coordinator position to a half-time position in the Community Services Department (139,000)The proposed contracting out of Lawn Bowling Maintenance eliminates one full-time position (45,000) Day use fees at Foothills, Arastradero and Baylands parks are proposed (100,000) The proposed contracting out of park maintenance at Mitchell Park and Rinconada will eliminate four full-time positions (147,000) Vehicle replacement funding for the City's fleet/equipment purchases was reduced by $483,000. A review of the size of City's fleet has been undertaken to further reduce future fleet/equipment expenditures.($483,000) Employee training and education reduced Citywide across all departments (92,000)Elimination of funding for building maintenance services resulting in the reduction of three full-time building maintenance positions (230,000) Contracting out custodial services will eliminate five positions (387,000) The City will be seeking 50 percent cost sharing from the PAUSD for the School Resource Officer position (83,000) Elimination of two full-time positions in Police investigative services that investigate cases of financial loss, and fraud (332,000) Elimination of a Fire Hazmat Position with future plan checking services provided by hourly employees (117,000)The proposed contracting out of golf course maintenance includes the elimination of seven full-time maintenance positions (236,000) Proposed Budget Balancing Recommendations, continued 29 PROPOSED STRATEGY ESTIMATED NET SAVINGS The proposed reorganization of the Community Services department eliminates one Division Manager position (185,000) Elimination of a building inspector and senior planner eliminates two positions in Planning (295,000)The reorganization and contracting out of the Print and Mail shop includes the elimination of two full-time positions and one temporary position in the Administrative Services Department (222,000) Elimination of administrative support organization-wide resulting in the elimination of seven positions (462,000) Reductions in the City Attorney's outside legal funds (145,000) Reduction of one full-time position in information technology (159,000) Reduction of one full-time position responsible for customer service and revenue collection (90,000) Reduction in Overtime- Citywide (42,000) Reduction in Office Machines and Equipment – Citywide (20,000) Reduction in Office supplies, Books and Publications - Citywide (36,000) Reduction in Advertising and Publishing - Citywide (27,000) General Fund Cost Plan and Allocated Charges Reduction (1,016,000) General Fund Position Reallocations to Utilities (4.35 FTE’s)(511,000) Total Budget Balancing Recommendations ($8,501,000) Proposed Budget Balancing Recommendations, continued 30 Position Reduction Summary 30 Full Time Equivalent (FTE) Reductions Position Reduction Salary/Benefits Cost Reduction General Fund 50.41 $5,640,766 Enterprise Funds 0.15 $20,722 Other Funds/Internal Service Funds 5.94 $710,752Total56.50 $6,372,240 Temporary Position Reductions Position Reduction Cost Reduction General Fund 8.71 $518,150Other Funds 9.81 $561,227 Total 18.52 $1,079,377 271 6 31 Proposed Budget FY 2011 Citywide Changes Changes to Health Benefits and Pension Cost Allocation Methodology Health Benefits allocation based upon census of existing employees’ current benefit plans versus incremental increase in total budgeted base benefits for all employees Pension benefit cost allocations based upon current contribution rates for existing employees rather than budgeted salaries at control point for employees at full strength 32 Proposed Budget FY 2011 Citywide Changes Effects of Cost Allocation on Budget Balancing Strategies Decreases due to corresponding decrease in administrative expense in all General Fund departments If proposed budget balancing strategies not approved, there are cost allocation plan impacts in addition to programmatic costs 33 Proposed Budget FY 2011 Citywide Changes Information Technology – Update and Change to Allocated Charges Allocated charges deferred in FY2009, Year 2 of GF Loan Repayment Updated all maintenance and replacement schedules, including Application Maintenance and Replacement, Infrastructure Maintenance and Replacement, Desktop Maintenance and Replacement, Telecommunication, and Support Reclassified various line item categories Changed cost allocation methodology, where necessary FY2010 Budget 8,867,674 FY2011 Proposed 9,194,993 Operating Increase 327,319 2nd year Loan Repay from GF 1,220,693 Total IT Fund Operating Revenue 10,415,686 34 Proposed Budget FY 2011 Reserves Budget Stabilization Reserve Reserve is for one-time unexpected needs, not meant to fund ongoing operating expense Range 15-20% of GF expenditures; 18.5% is the target FY 11 proposed reserve level 17.4 % Infrastructure Reserve $2.6 million projected ending balance in FY 11 35 Proposed Budget FY 2011 General Fund CIP Overview Total CIP: $ 20.4 million in FY 2011 General Fund Contribution to CIP FY 2011 $9.2 million GF CIP program discussed on May 25 Citywide CIP: $64.5 million in FY 2011 City Council Top 5 Priorities – CIPs City Finances Land Use and Transportation Planning Environmental Sustainability Emergency Preparedness Community Collaboration for Youth and Well-Being 36 Proposed Budget FY 2011 Enterprise Funds CIP program Electric: $10.1 million Gas: $8.3 million Water: $8.8 million Fiber Optics: $0.4 million Wastewater Collection: $4.1 million Refuse: $1.7 million Wastewater Treatment: $2.5 million Storm Drainage: $1.5 million Total: $37.4 million in FY 2011 Enterprise CIP discussed May 25 – Utilities May 27 – Public Works 272 7 37 Proposed Budget FY 2011 Enterprise FundsIn Fiscal Year 2011 the average residential utility bill is increasing by $0.28 or 0.1 percent No Rate Increase Included in Proposed Budget for: Gas serviceElectric service Water service Wastewater collection serviceRefuse service– Rates are not currently covering fund’s operating costs. Fund has had an operating deficit for the last four years and may have negative cash at the fund level in FY 2011 unless a rate increase is approved. Rate Increase Included in Proposed Budget for: Storm Drainage ratesare based on CPI as prescribed in the voter-approved fee increase. CPI showed growth of 2.6% so there is a proposed rate change of 2.6% for FY 2011 38 Proposed Budget FY 2011 Average Residential Utility Bill Average Projected Residential Monthly Utility Bills Current Proposed Utility FY 2010 Bill FY 2011 Bill $ Difference % Difference Electric (650KWH) $76.33 $76.33 $0.00 0.0% Water (14CCF) 72.01 72.01 $0.00 0.0% Gas (100/30TH) 99.42 99.42 $0.00 0.0% Wastewater 24.65 24.65 $0.00 0.0% Refuse 31.00 31.00 $0.00 0.0% Storm Drain 10.95 11.23 $0.28 2.6% User Tax 12.39 12.39 $0.00 0.0% Total Monthly Bill 326.75$ 327.03$ 0.28$ 0.1% FY2011 Storm drain will increase by CPI at 2.6% 39 Proposed Budget FY 2011 Questions? 40 Proposed Budget FY 2011 Department Changes Library Department: Revenue Increase in revenues generated by a collection agency (one-time)$14,878 Increase in revenues to reflect historical trend $ 4,170Decrease in revenues from State ($42,840) Decrease local agency funding ($67,000) Total Decrease ($ 90,792) 41 Proposed 2011 Changes Department Changes Library Department Citywide Changes Allocated charges increase – due to change in methodologyin allocating IT expenses $369,800 ExpenseElimination of 2.5 FTEs 1.0 FTE Sr. Librarian (filled) ($110,440)1.0 FTE Library Associate (filled) ($ 89,971)0.5 FTE Library Assistant (filled) ($ 38,990) Elimination of 3.57 FTE hourly positions (equivalent to 15 positions; 3 vacant) ($186,506) Increase in hourly salary to reflect current pay rate $ 69,203 Reduction in collection purchases ($117,343) 42 Proposed Budget FY 2011 Department Changes Library Department Service Level Reductions Elimination of 2.5 FTEs (regular) and 3.57 FTEs Hourly College Terrace Library will remain closed in FY 2011 past the anticipated opening in November 2010 Downtown Library will be closed in FY 2011 due to renovationMitchell Park, Main and Children’s will be closed on MondaysMain and Mitchell will close at 8 pm on Tuesdays, Wednesdays and ThursdaysReduced programming for all ages Reduce library collection The number of items added to the library collection will decrease by 3,500 books Reduced electronic resources 273 8 43 Proposed Budget FY 2011 Department Changes City Auditor Citywide Changes Cost Plan Revenue increasing $160,200 Personnel Benefits Costs decreasing $25,125 Allocated Charge Costs increasing $4,328 Revenue Increase in Operating Transfer $35,000 Expense Decrease in revenue auditing expense $5,400 Increase in office supplies $500 44 Proposed Budget FY 2011 Department Changes City Clerk Citywide Changes Cost Plan Revenue decreasing $100,010 Personnel Benefits Costs decreasing $85,577 Allocated Charge Costs increasing $12,913 Expense Decrease various non-salary expense $42,200 Service Level Impact Propose reduction of Board and Commission recruitment ads to one, requiring Municipal Code change Proposed eliminating the publishing of the agenda in the newspaper, requiring Municipal Code change 45 Proposed Budget FY 2011 Department Changes City Council Citywide Changes Personnel Benefits Costs decreasing $121,519 Allocated Charge Costs increasing $56,769 Expense Contract Service budget for FY2011 does not include funding for the CAO Evaluator. Prior years increase of $16,250 was a one-time increase. 46 Proposed Budget FY 2011 Department Changes City Manager Citywide Changes Cost Plan Revenue decreasing $64,559 Personnel Benefits Costs increasing $33,270 Expense Decrease in salary expense $164,140 Decrease in various non-salary expense $72,427FTE Reduction/Changes Reduction of 1.0 FTE Administrative Associate II Reallocation of 0.50 FTE Assistant to City Manager – Sustainability Addition of 0.50 FTE Administrator Service Level Impact Reduction of hours at City Hall lobby customer service desk 47 Proposed Budget FY 2011 Department Changes Human Resources Department Citywide Changes Cost Plan Revenue increase $176,000 Personnel Benefits Costs increase $139,000 Allocated Charges increase $ 35,000Expense Freeze 1 FTE Human Resources Director position beginning midyear ($114,000) Suspend non-mandatory employee training ($ 28,000) Various non-salary reductions ($ 55,000) 48 Proposed Budget FY 2011 Questions 274 1 City Manager’s Proposed Budget for Fiscal Year 2011 City of Palo Alto Finance Committee May 11, 2010 2 Balancing the Budget Proposed Budget Budget gap (revised) $(7.3 million) Proposed reductions ($ 8.5 million) Salary & Benefits $ 5.6 million Non-Salary 2.9 million New revenues, revenue increases $ 0.9 million Total recommendations $ 9.4 million Temporary “surplus”$ 2.1 million 2 3 Balancing the Budget New Revenues/ Revenue IncreasesNew Revenues: $200,000- Day Use Fees at Foothills,Arastradero, and Baylands 100,000- Entrance fees JMZ, Art Gallery 50,000- Fundraising from Friends 50,000 Increased Revenues: $712,270- Alarm monitoring services provided to Utilities 90,000- Increased Cost Recovery for various CSD programs. 446,000- Increase Animal Service Fees 38,200- School Resource Officer (SRO) reimbursement from PAUSD 83,570- Decline in Parking Violation Revenues (125,000)- $3 Increase in Parking Violation Citations 150,000 4 Balancing the Budget Increased Revenues (Continued) - Increase Advance Life Support (ALS) /Basic Life Support (BLS) ambulance transport fees by 10% $200,000 - Increase Hazmat fees 10% 38,000- Increase Use & Occupancy permit fees for facilities with fire protection systems 120,000 - Charge Hazmat fees to PAUSD ($18k) and and City Enterprise Funds ($30k) 48,000 - Decrease in Fire Plan Checking Fees (270,000) - Decrease in PCE and PW Plan Check Fees (106,500) Total $912,270 5 General Fund BSR Total Sources $ 139,200 $139,200 Total Uses 137,093 137,093 Temporary Surplus $ 2,107 $ 2,107 +Programs/Services $ - 0 -$ (2,107) Budget Surplus $ 2,107 $ - 0 - BSR Est. 06/30/10 23,874 23,874 BSR Proj. 06/30/11 $ 25,981 $ 23,874 BSR 18.95% 17.41% 6 Non-Departmental Expenses (000) PAUSD lease- Cubberley $ 6,878 Attrition Savings ($ 1,500) Mgt. Comp, $310 & VMC, $21K $ 331 Contingency Accounts (CM $250, CC $250,$125) $ 625 Annual park lease of El Camino Real $ 156 Fleet Review offset to Vehicle Replacement Allocation ($ 483) Special Assessment – Univ. Ave. Parking Assess. Dist. $ 81 Total Budgeted Expenses $ 6,088 275 2 7 Proposed Budget FY 2011 Department Changes Community Services Department: Budget Balancing Summary Revenues CS1. New revenues $200,000 1.1 Admission donation – JMZ $ 25,0001.2 Admission donation – Art Center Gallery 25,0001.3 Open Space days use fees, Foothills,Baylands and Arastradero ($5 to $10 or $40 annual) 100,0001.4 Fund Raising from Friends and Support Groups 50,000 CS2. Increased Cost recovery $446,000 2.1 Children’s Theatre productions ($5-$20) $100,0002.2 JMZ education class ($5 - $800) 75,0002.3 Art classes ($5 - $800) 50,000 8 Proposed 2011 Changes Department Changes Community Services DepartmentRevenue (continued) CS2. Increased Cost Recovery2.4 Science Outreach Program ($1,000 - $50,000) $79,0002.5 Community Theatre ($2 per attendee) 42,0002.6 Nature Interpretive Program ($5 - $800) 50,0002.7 Various recreation classes ($2 - $800) 50,000 Total New and Increased Cost Recovery Revenues $646,000 Service Level Reductions CS3. Family Resources Foundation reduction Supports only 0.5 FTE instead of 1.0 FTE FamilyResources Coordinator position. ($50,836) 9 Proposed 2011 Changes Department Changes Expenses (continued) Service Level Reductions CS4. Golf Course maintenance •Increase Contract services - $420,000•Reduce planting materials – ($50,000)•Eliminates 7 FTEs ($565,152)Total Cost Decrease ( 9 mos.) ($195,152) Full Year cost decrease ($292,435) CS5. Lawn Bowling Green maintenance•Increase contract services -net $ 20,000•Eliminates 1.0 FTE ($92,153)Total Cost Decrease ($72,153) 10 Proposed 2011 Changes Department Changes Expenses (continued) Service Level Reductions CS6. Cubberley: contract out maintenance •Increase Contract services - $100,000•Eliminates 2.0 FTEs ($153,120)Total Cost Decrease ($ 53,120) CS7. Mitchell and Rinconada maintenance•Increase contract services $127,000•Eliminates 4.0 FTE ($368,614)Total Cost Decrease ($241,614) 11 Proposed 2011 Changes Department Changes Expenses (continued) Service Level Reductions CS8. Human Resources •Reduce HSRAP funding - ($50,000) CS9. Arts and Sciences •Eliminate Summer Concert series ($27,000) CS10. Recreation and Art Center proposed reorganization to a more centralized customer service model -eliminates 3.0 FTEs Total Cost Decrease ($276,105) 12 Proposed Budget FY 2011 Department Changes Expenses (continued) Service Level Reductions CS11. Transfer management of Community Theatre to Children’s Theatre staff •eliminates 1.0 FTE•Total Cost Decrease ($118,912) CS12. Reorganize management of Cubberley Community Center and Human Services•Eliminates 2.0 FTE ($336,385) 276 3 13 Proposed Budget FY 2011 Department Changes Expenses (continued) Service Level Reductions CS13. Revise “Fee Reduction Program” to limit eligibility to youth, seniors and disabled; reduce the discount from a range of 50% and 75% to 25% or 50% based on income ($60,000) Total Proposed Budget Balancing Actions•Revenues ($ 646,000)•Expenses ($1,421,277)•Fee Reduction Program $ 60,000 ($2,007,277) Total of 20.5 FTEs Eliminated ($2,061,017)Reduction -0.5 FTE ($ 50,836)Vacant/Retirement - 8.0 FTE ($863,699)Filled/Layoff – 12.0 FTE ($1,146,482) 14 Proposed Budget FY 2011 Cost Recovery Data Community Services Department *Direct costs equal direct salaries and benefits and non-salary costs.Full cost equals direct cost plus CSD admin. allocation and city-wide costplan allocation charges. ($19,903)93%121%JMZ camps 5,354 ($245,178)54%78%JMZ classes/outreaches 9% 75% 92% 130% Full Cost Recovery ($248,325) ($67,357) ($5,739) $16,958 Income (subsidy) based on full cost 12,06595%Visual Arts/Studio/Classes 15,83013%Visual Arts/Exhibitions 105%Adult Music and Dance 964 159%Children’s Music and Dance Number of Participants ( 2009) Direct Costs Recovery Program Arts and Science 15 Proposed Budget FY 2011 Cost Recovery Data More details to follow($1,286,569)19%26%Children’s Performing Arts 125,000($223,638)10%14%JMZ exhibits ($166,581)13%17%JMZ animal care 1,128($158,340)34%91%Sports – Sports Leagues Recreation 44,360($6,897)94%295%Sports - Aquatics 2,615($127,060)43%59%Baylands Interpretation Number of Participants ( 2009) Income (subsidy) based on full cost Full Cost RecoveryDirect Cost Recovery Program Arts and Science Community Services Department 16 Proposed Budget FY 2011 Cost Recovery Data Community Services DepartmentChildren’s Performing Arts 188 participants 1,690 audience($52,392)0%0%Teen Programs 139 participants; 1,853 audience($114,677)15%21%Outreach 440 participants; 19,743 audience($453,465)17%24%Core Productions 34 participants; 2,972 audience($24,633)49%58%Wingspread 11% 53% Full Cost Recovery ($556,185) ($85,217) Income (subsidy) based on full cost 015%Administration 1,442 participants73%Education Number of Participants ( 2009) Direct Costs Recovery Program Children’s Performing Arts 17 Proposed Budget FY 2011 Cost Recovery Data Community Services Department 3,000($165,085)0%0%Sports – Individual Sports 19,186($67,722)81%97%Youth/Teen Program -Aquatics 1,393($160,298)47%61%Youth/Teen Program –Middle School 2,877$44,940111%136%Youth/Teen Program –Special Interest Classes 693($178,120)42%113%Adult Program–Special Interest Classes Number of Participants ( 2009) Income (subsidy) based on full cost Full Cost RecoveryDirect Cost Recovery Program Recreation 18 Proposed Budget FY 2011 Cost Recovery Data Community Services Department 694($19,019)91%119%Youth/Teen Program – Day Camps 7,650($14,480)20%53%Special Needs Program – Senior 5,000+($150,164)5%7%Special Events 165($12,075)31%84%Special Needs Program –Therapeutics Recreation 1,138$16,881109%122%Youth/Teen Program – Sports Camps 6,540($278,890)28%40%Youth/Teen Program – Teen Center Programs and Youth Outreach Number of Participants ( 2009) Income (subsidy) based on full cost Full Cost RecoveryDirect Cost Recovery Program Recreation 277 4 19 Proposed Budget FY 2011 Department Changes Human Resources Department Budget Balancing Summary Service Level ReductionsHR1. Freeze 1 FTE Human Resources Director position for six months ($114,000) HR2. Suspend non-mandatory employeetraining ($ 28,000) HR3. Various non-salary reductions ($ 54,000) Total Proposed Budget Balancing Actions ($196,000) Citywide Changes Cost Plan Revenue increase $176,000Personnel Benefits Costs increase $139,000Allocated Charges increase $ 35,000 20 Proposed Budget FY 2011 Department Changes Planning & Community Environment Revenues Increase Service Fees/Licensing $ 55,000 Zoning Plan Check Fee (-$10,000) Architectural Review Board Fee (+$40,000) Plan Checking Fee (+$25,000)Decrease Permits ($48,500) Valet Parking Fee (-$3,500) Parking Permit-construction/maintenance Vehicles fee (-$20,000) Building Permit-new construction permit fee(-$25,000) Net Revenue Increase $6,500 21 Proposed Budget FY 2011 Department Changes Planning & Community Environment -Budget Balancing Summary Service Level Reductions PCE1 Eliminate Shuttle Services ($196,082) Noon Shuttle ($30,300) Marguerite Shuttle ($20,000) Crosstown Shuttle ($145,782) PCE2 Eliminate Vacant Positions ($384,625) 1.0 FTE Building Inspector Specialist ($136,742) 1.0 FTE Administrative Associate I ($88,997) 1.0 FTE Senior Planner ($158,886) PCE3 Eliminate Filled Positions ($226,464) 1.0 FTE Building/Planning Technician ($104,329) 1.0 FTE Code Enforcement Officer ($122,135)PCE4 Reallocate 0.30 FTE Planner ($ 41,260) 22 Proposed Budget FY 2011 Department Changes Planning & Community Environment –(cont.) Service Level Reductions PCE5 Increase in change from Transportation Manager to Chief Transportation Official $30,077 PCE6 Decrease Temporary Salaries ($ 9,000) PCE7 Decrease GIS Planning ($21,753) PCE8 Decrease various Non-salary expenses (ie. Supplies, Printing, Travel and Training) ($36,460) Total Proposed Budget Balancing Actions ($884,567) Total of 5.0 FTE Regular (2 filled, 3 vacant) positions eliminated and 0.30 FTE Regular (filled) position reallocated 23 Proposed Budget FY 2011 Department Changes Planning & Community Environment –(cont.) Citywide changes Increase Personnel Benefit Costs $342,033 Increase Allocated Charges $ 3,951 Total Net Departmental Reductions Proposed: ($538,583) 24 Proposed Budget FY 2011 Cost Recovery Data Planning & Community Environment (Based on FY 2010 data) *Direct costs equal direct salaries and benefits and non-salary costs. Full cost equals direct cost plus PCE admin. allocation and city-wide cost plan allocation charges. 6.64($1,936,354)10%13%Transportation 74% 106% 30% 9% 89% 0% Full Cost ($106,263) $19,706 ($904,900) ($211,412) ($438,925) ($1,652,513) Income (subsidy) based on full cost 1.65109%Current Planning – IndivReview 5.3845%Current Planning – General 2.40243%Current Planning – Zone Checks 0.8013%Code Enforcement 15.15116%Building 4.030%Advance Planning – General Program FTEDirect Costs Program 278 5 25 Proposed Budget FY 2011 Department Changes City Attorney’s Office -Budget Balancing Summary RevenuesNo revenue changes Service Level ReductionsATT1 Reallocate Sr. Deputy City Attorney to Enterprise Funds ($116,356)ATT2 Decrease Temporary Salaries (0.41 FTEs) ($ 21,200)ATT3 Decrease Arbitration ($ 20,000)ATT4 Decrease various Non-salary expenses(i.e. Supplies, Printing, Travel and Training) ($ 24,400)ATT5 Decrease Legal Contingency ($145,000) Total Proposed Budget Balancing Actions ($326,956) Total of 1.0 FTE Regular (filled) reallocated to Utilities 26 Proposed Budget FY 2011 Department Changes City Attorney’s Office –(cont.) Citywide changes Increase Allocated Revenue $230,707 Decrease Personnel Benefit Costs ($ 25,026) Increase Allocated Charges $ 5,862 Total Net Departmental Reductions Proposed: $346,120 27 Proposed Budget FY 2011 Questions 279 1 City Manager’s Proposed Budget for Fiscal Years 2011 City of Palo Alto Finance Committee May 18, 2010 2 Balancing the Budget Proposed Budget Budget gap (revised) $(7.3 million) Proposed reductions ($ 8.5 million) Salary & Benefits $ 5.6 million Non-Salary 2.9 million New revenues, revenue increases $ 0.9 million Total recommendations $ 9.4 million Temporary “surplus”$ 2.1 million 2 City Manager’s Proposed Budget for Fiscal Years 2011 City of Palo Alto Finance Committee May 18, 2010 Police Department Fire Department Administrative Services Department 4 Proposed Budget FY 2011 Department Changes 150,000POL3. Increase Parking Violation Citations - $3 90,000POL2. Alarm monitoring services provided to Utilities 197,200Increased Cost Recovery 83,570POL1. Reimbursement from PAUSD for School Resource Officer $173,570New Revenues Revenues Budget Balancing Summary Police Department 5 Proposed Budget FY 2011 Department Changes $370,770Total New and Increased Cost Recovery Revenues $47,200POL4. Increase in Various Animal Services municipal fees POL4.1. Adoptions: $25 - $150 for dogs, cats, and rabbits POL4.2. Impoundment Fees: $25 - $55 POL4.3. License & Pet Identification Late Fee: $30 POL4.4. Bandages/Splints: $25 - $95 POL4.5. Various Permits: $50 - $300 POL4.6. Spay & Neuter: $55 - $215 POL4.7. Various Surgeries, Testing, Therapies, & Vaccines: $5 - $75 POL4.8. Trap Rental: $100 Increased Cost Recovery (continued) Revenues 6 Proposed Budget FY 2011 Department Changes 86,360POL9. Technical Services POL9.1. Eliminate 1 FTE Records Specialist II 331,734POL8. Investigations POL8.1. Eliminate 2 FTE Police Officer 786,626 205,886 183,139 497,607(100,000) POL7. Traffic Team POL7.1. Eliminate 1 FTE Police Sergeant POL7.2. Eliminate 1 FTE Police Agent POL7.3. Eliminate 3 FTE Police Officer Associated Revenue Reduction 116,178POL6. Crime Analyst Program POL6.1. Eliminate 1 FTE Crime Analyst $61,068POL5. Code Enforcement POL5.1. Eliminate 0.5 FTE Code Enforcement Officer Service Level Reductions 280 2 7 Proposed Budget FY 2011 Department Changes 345,000POL13. School Crossing Guard Program Consider program cost transfer to PAUSD $1,883,222Total Service Level Reductions 21,587 41,587 (20,000) POL12. Leaf Blower Enforcement POL12.1. Eliminate 0.46 temporary FTE Project Specialist Associated revenue reduction 32,000POL11. Reduction in Budgeted Overtime Police presence at various City sponsored events $102,669POL10. Crime Prevention & Outreach POL10.1. Eliminate 1 FTE Program Coordinator Service Level Reductions (continued) 8 Proposed Budget FY 2011 Department Changes Expense Revenues ($30,000)POL14. Train Track Watch Program (Exhibit B) 130,000Decrease in booking fees (67,316)Decrease in Communications reimbursement from Stanford (125,000)Parking violation revenue decline ($900,745)Other Items Included in Proposed Budget (808,429)PAPOA salary increase 9 Proposed Budget FY 2011 Department Changes $89,258Alternatives to Proposed Budget Balancing Actions $89,258 POL15. Parking Enforcement Program POL15.1. 1 FTE Community Service Officer ($421,321)Citywide Changes $55,813Personnel Benefit Cost Decrease (477,134)Allocated Charge Increase Technology Fund repayment: $459,482 10 Proposed Budget FY 2011 Department Changes (41,587)(250,100) (1,265,573) Temporary FTE: 0.46 FTE Vacancy or Retirement: 2.5 FTE Layoff: 8 FTE ($1,557,260)Total of 10.96 FTEs Eliminated ($931,926)Total Proposed Budget Balancing Actions 370,770 (1,883,222) 900,745 421,321 New and Increased Cost Recovery Revenues Service Level Reductions Other Items Included in Proposed Budget Citywide Changes 11 Proposed Budget FY 2011 Department Changes Regionalize Dispatch Services with Other Cities Red Light Cameras Budget Balancing Alternatives 12 Proposed Budget FY 2011 Cost Recovery Data (Fiscal Year 2011) Police Department *Direct costs equal direct salaries and benefits and non-salary costs. Full cost equals direct cost plus Police admin. allocation and city-wide cost plan allocation charges. 12.2(Regular) 1.22 (Temporary) 9.65(Full-time Regular) FTE Income (subsidy)%%Program Cost Recovery 66%** 123% Full (614,755) $298,795132%Parking Enforcement Program 71%**Animal Services Direct **Not included in cost recovery percentages is $100k/yr the City normally receives in SB90 funds for State mandated activities performed by Animal Services staff. 281 3 13 Proposed Budget FY 2011 Parking Citations Data 0 5 10 15 20 25 2007 2008 2009 2010 2011 Is s u e d C i t a t i o n s ( t h o u s a n d s ) $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 $2.00 Re v e n u e ( m i l l i o n s ) Cited Vehicles Actual Revenue Projected Revenue 9.65 FTE8.65 FTE9.15 FTE9.15 FTE8.9 FTE 14 Proposed Budget FY 2011 Overtime Data $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 $2.25 2007 2008* 2009 2010 2011 Bud g e t D o l l a r s ( m i l l i o n s ) 0 5 10 15 20 25 30 35 Hou r s ( t h o u s a n d s ) Actual Projected Budget Proposed Hours * One-time budget adjustment in response to increased citywide residential burglaries. 15 Proposed Budget FY 2011 Introduction 16 Proposed Budget FY 2011 Background/Staffing History 107 sworn officer positions in 1975 85 sworn officers positions in 2011 Eliminated since 2003: 12 sworn positions 14.5 civilian positions 17 Proposed Budget FY 2011 Background/Staffing History (cont) Previous cuts include: Community Relations Officer Crime Suppression Team Crime Prevention ProgramDowntown Health and Safety Detail Homeland Security Coordinator Police Volunteer ProgramPatrol Community Service OfficersStaff Support Positions School Resource Officer Police LieutenantCommunications Manager Health Resources Coordinator Master Social WorkerVictim Services Coordinator 18 Proposed Budget FY 2011 The Challenges and Uniqueness of Serving Palo Alto Resident population of 65,000 which increases to over 110,000 daytime Daytime officer to population ratio lowest in the County Third busiest Dispatch Center in the County Parking Enforcement program issues the second highest number of citations in Santa Clara and San Mateo counties One of a few departments in the State that offers a comprehensive Animal Services Division 282 4 19 Proposed Budget FY 2011 Regionalization of Services Current Regional Efforts Dispatching Stanford – contributes 16% of Dispatching costs and related CIPsAnimal Services Animal Control and Care services for Mt. View, Los Altos, and Los Altos Hills –contributes 45% of costs. Regional Mobile Command Vehicle – grants contributed $300kPRegional Computer Forensics Laboratory (RCFL) with the FBISanta Clara County Crime LabArson Task ForceTraining Crime Scene InvestigationTechnologyCOP LinkSilicon Valley Regional Interoperability Project (SVRIP)CAD and 9-1-1 systems Virtual consolidation with Mountain View and Los Altos Potential Future EffortsExpanded Regional Dispatch 20 Proposed Budget FY 2011 Questions 21 Proposed Budget FY 2011 Department Changes Fire Department: Budget Balancing Summary Revenues F1. Increase Transport (Ambulance) Fees by 10% $200,000 F2. Increase in Hazmat Fees by 10% 38,000 F3. Increase Permit Fees 50,000 (Proposed PAUSD - $20K and Enterprise Fund - $30K) F4. Increase Use & Occup. Permits and Tracking Fees 120,000 Proposed Revenue Increase $408,000 22 Proposed Budget FY 2011 Department Changes Fire Department (budget balancing summary cont.) Service Level Reductions F5. Elimination of Administrative AssistantSavings1.0 FTE Regular (Retiring)$116,507 F6. Elimination of Hazardous Materials Specialist (Filled)Add Hourly Management Specialist (contract) Savings 1.0 FTE Regular (0.95 FTE in General Fund) $186,953Additions 0.48 FTE Hourly Management Specialist ( 80,000) Net Savings $106,953 23 Proposed Budget FY 2011 Department Changes Fire Department (budget balancing summary cont.)Service Level Reductions F7. Add Resource to Facilitate Fire Chief Retirement Transition(6 month Fire Chief vacancy savings -$138,186) Additions 0.25 FTE Hourly (One-Time) ($ 52,000) F8. Reduction in non-salary expenses $ 85,952 (i.e. Contract Svcs., Supplies, Equip., etc.) Total Proposed Budget Balancing ActionsRevenues Increase $408,000Expense (Net) Reduction $257,412$665,412 24 Proposed 2011 Changes Department Changes Fire Department Other Revenue Changes Decrease Plan Checking Fee ($ 270,000) Increase in Stanford Fire Services Reimbursement 136,969Net Decrease in Other Revenues ($133,031) Other Salary Changes Contractual Salary and Benefit Increase (1/2 year) ($ 652,158)Decrease in temporary salaries 31,131Incentive Pay Increase (EMT Certification)(9,069) Increase Workers' Compensation Charges (479,668) Increase Medicare (Employer) Contribution (12,965)Increase Retiree Health Insurance Premiums (393,311)Increase Benefit Allocation (390,237)Other (Net) Salary Increase ($1,906,277) 283 5 25 Proposed 2011 Changes Department Changes Fire Department (cont.) Citywide Changes in Allocated Charges Decr. in Information Technology Charges $ 95,076 Incr. in Vehicle Maintenance and Replacement (254,272) Incr. in Liab. Insurance & Printing/Mailing Svcs. (33,015) Allocated Charges (Net) Increase (192,211) 26 Proposed 2011 Changes Department Changes Fire Department Summary of Total Net Departmental Proposed:Revenues: Proposed Revenue Increase $ 408,000 Net Decrease in Other Revenues (133,031) Net Revenue Increase $ 274,969 Expenditures: Expense Reduction (Net) $ 257,412 Other (Net) Salary Increase (1,906,277) Allocated Charges (Net) Increase (192,211) Net Expense Increase ($1,841,076) Palo Alto Fire Department Proposed Budget FY 2011 28 Background/Staffing History 117 line firefighter positions in 1976 at time of fire consolidation (83 Palo Alto firefighters and 34 firefighters from the Stanford Fire Department) 103 line positions in 2009 Call volume has more than doubled between 1976 (approximately 3000) and 2009 (7549) 29 Challenges and Uniqueness of Serving Palo Alto Resident population of 77,779 between the communities of Palo Alto (64,484) and Stanford (13,295) which increases to well over 125,000 with the influx of workers, employees, and Stanford student population on campus Responses for medical aid have increased 24 percent in the last 5 years 30 Revenue Generated/Revenue Costs Revenue generated by the department has increased 28 percent over the last 5 years* The department budget has increased 23 percent in the last 5 years* The department achieved 49 percent cost recovery for 2009*General Fund cost of $212 per capita for fire and emergency medical services* The City of Palo Alto has one of the lowest net fire and EMS expenditures per capita in Santa Clara County $190/per resident (FY 2007 from Cities Annual Report from the State Controller’s Office *Above information taken from 2009 SEA Report 284 6 31 Proposed Budget FY 2011 Questions 32 Proposed Budget FY 2011 Department Changes Administrative Services Department – Budget Balancing Summary Service Level Reductions ASD1 Eliminate 0.96 FTE Administrative Associateposition (vacant) ($ 99,500)ASD2 Eliminate 1.00 FTE Accounting Specialist position (filled) ($ 90,527)ASD3 Reallocate 2.50 FTEs to Other Funds ($347,272)0.50 Warehouse Supervisor to Utilities ($52,857)0.50 Sr Financial Analyst in Treasury to Utilities ($74,807) 0.60 Contract Administrator in Purchasing to CIP ($89,769) 0.60 Sr Financial Analyst in Budget to CIP ($89,769)0.10 Business Analyst to Technology ($12,240)0.20 Sr Business Analyst to Technology ($27,830)ASD4 Decrease Temporary Salaries ($ 24,572)ASD5 Decrease Overtime ($ 10,000) 33 Proposed Budget FY 2011 Department Changes Administrative Services Department –(cont.) Service Level Reductions ASD6 Decrease Instruction/Training and Travel/Meeting ($ 6,900) ASD7 Decrease Contract Services ($ 9,592) ASD8 Decrease various Non-Salary ($ 8,800) Total Proposed Budget Balancing Actions ($597,163) Total of 1.96 FTE Regular (1 filled, 0.96 vacant) positions eliminated and 1.50 FTE Regular (filled) positions reallocated 34 Proposed Budget FY 2011 Department Changes Administrative Services Department –(cont.) Other Budget changes Increase Other Contract Services for Banking Service Fees $ 50,000 Citywide changes Decrease Personnel Benefit Costs ($173,569) Increase Allocated Charges $246,501 Total Net Departmental Reductions Proposed: ($474,231) 35 Proposed Budget FY 2011 Questions 36 Proposed Budget FY 2011 Department Changes Information Technology –Internal Service Fund Revenue IT1 Decrease Investment Income ($ 236,500) IT2 Decrease Stanford Revenue ($ 37,000) IT3 Decrease Miscellaneous Revenue ($ 9,600) IT4 Increase Allocated Revenue – 2 nd Year Loan Repayment $ 1,220,693 IT5 Increase Allocated Revenue $ 303,391 IT6 Increase Operating Tfr. In - CIP projects $ 970,594 Total Proposed Revenue Increase $ 2,211,578 285 7 37 Proposed Budget FY 2011 Department Changes Information Technology –Internal Service Fund Service Level Reductions IT7 Eliminate 0.04 FTE Administrative Assoc III ($ 4,146) IT8 Eliminate 1.0 FTE Technologist ($ 160,416) IT9 Add 0.50 FTE Administrator (0.50 shared with City Manager’s Office) $ 58,273 IT10 Reallocate 0.30 FTE from Administrative Svcs $ 40,070 Business Analyst – 0.10 FTE ($12,240) Sr Business Analyst – 0.20 FTE ($27,830) Total of 1.04 FTE Regular (1.04 vacant) positions eliminated, 0.50 FTE Regular position added, and 0.30 FTE Regular (filled) positions reallocated 38 Proposed Budget FY 2011 Department Changes Information Technology –Internal Service Fund Service Level Reductions The following increases and decreases primarily result from redistributions: IT11 Increase Application Maintenance $ 506,425 IT12 Decrease Application Replacement ($ 190,150) IT13 Decrease Infrastructure Maintenance ($ 90,287) IT14 Decrease Infrastructure Replacement ($ 888) IT15 Increase Desktop Maintenance $ 130,000 IT16 Increase Desktop Replacement $ 99,575 IT17 Increase Telecommunication $ 682,500 IT18 Decrease IT Support ($ 833,783) IT19 Increase CIP Project costs $2,295,859 Total Proposed Expenditure Increase $2,533,032 39 Proposed Budget FY 2011 Department Changes Information Technology –(cont.) Citywide changes Decrease Personnel Benefit Costs ($482,829) Decrease Allocated Charges ($150,567) Total Net Proposed:$1,899,636 40 Proposed Budget FY 2011 Department Changes Printing and Mailing –Internal Service Fund RevenuePM1 Decrease Mailing Allocated Revenues ($ 91,778)PM2 Decrease Printing Allocated Revenues ($ 106,835) Total Proposed Revenue Decrease ($ 198,613) Service Level Reductions PM3 Eliminate 1.0 FTE Supervisor Repro and Mail ($110,440) PM4 Eliminate 1.0 FTE Offset Equip Operator Lead ($ 91,894) PM5 Eliminate 0.48 FTE Print Shop Assistant ($ 19,650) PM6 Reallocate 0.48 FTE Offset Equip Operator ($ 45,031) Total Proposed Expenditure Decrease ($267,015) Total of 2.48 FTE Regular (2.48 filled) positions eliminated and 0.48 FTE Regular (filled) positions reallocated 41 Proposed Budget FY 2011 Department Changes Printing and Mailing –(cont.) Citywide changes Increase Personnel Benefit Costs $12,564 Decrease Allocated Charges ($15,063) Total Net Proposed:$269,514 42 Proposed Budget FY 2011 Questions 286 8 43 Proposed Budget FY 2011 Citywide Changes-General Benefits/Insurance and Retiree Health Insurance Internal Service Funds Changes to Health Benefits and Pension Cost Allocation Methodology Pension benefit cost allocations based upon current contribution rates for existing employees rather than budgeted salaries at control point for employees at full strength FY 2011 pension expense - $19.3 million FY 2010 budget, $23.5 million $1.0 million - staff downsizing $3.2 million – budgeting at control point at full strength $800k increase from FY2010 projected of $18.5 million 44 Proposed Budget FY 2011 General Benefits and Insurance Fund Pension Contribution Percentages * SEIU employees pay 5.75%, Management, 2% Public Safety PlanMiscellaneous Plan 9.0024.695*8.0017.5552011 9.0023.9388.0017.0632010 9.0024.5128.0017.0052009 9.0023.6117.0011.4762008 9.0024.2087.0011.4362007 9.0027.7787.0012.4102006 EmployeeEmployerEmployeeEmployerFiscal Year 45 Proposed Budget FY 2011 Citywide Changes-General Benefits/Insurance and Retiree Health Insurance Internal Service Funds Changes to Health Benefits and Pension Cost Allocation Methodology Health Benefits allocation based upon census of existing employees’ current benefit plans versus incremental increase in total budgeted base benefits for all employees FY 2011 medical expense - $11.7 million FY 2010 budget, $13.2 million $325k – staff downsizing $1.2 million – budgeting at control point at full strength 46 Proposed Budget FY 2011 General Benefits and Insurance Fund Average Monthly/Annual Medical Cost Per Participant *Includes Mgt. and SEIU contribution of ½ of increased premium costs $13,570 $ 640 *Fiscal Year 2011 (860 Active Participants) $1,131 4.95% Increase $ 53 Annual $12,930 Monthly Fiscal Year 2010 $1,078 (projected year end – 916 Active Participants) 47 Proposed Budget FY 2011 Department Changes General Benefits/Insurance and RetireeHealth Insurance Internal Service Fund FY 2011 other benefits - $6.6 million$3.2 million in Claims payments ($2.6 million, W/C, $600k, General Liability)$1.6 million – Dental$380k – Life Insurance$200k – Unemployment Insurance $520k – Administrator Fees –$200k, Dental mgt. flex, Vision, $260k W/C TPA, $60k Alliance Risk Pool/George Hills, Inc. $400k – Workers Compensation Insurance$300k – Vision, EAP, Commute Program 48 Proposed Budget FY 2011 Department Changes General Benefits/Insurance and RetireeHealth Insurance Internal Service Fund $1.1 million - Umbrella Excess and Special Liability Incurred But Not Reported adjustment budgeted - $638k$335k – Workers Compensation$303k – General Liability Accounting Change for Fiscal Year 2011 General Benefits, Workers Compensation and General Liability Funds to be presented separately in financial reports such as the Comprehensive Annual Financial Report (CAFR) Increase in citywide retiree medical $600k from$9 million in FY 2010 to $9.6 million in FY 2011 287 9 49 Proposed Budget FY 2011 General Benefits and Insurance Fund Workers’ Compensation and General Liability Claims Paid No. of ClaimsPaidNo. of ClaimsPaidFiscal Year 136882,9841461,736,8965-year Avg 1301,352,9441561,815,4712004 144391,6921551,980,7632005 107646,2791511,746,0942006 1491,280,5791391,641,3282007 160934,4231391,418,2952008 126$691,986134$1,819,4242009 General LiabilityWorkers’ Comp 50 Proposed Budget FY 2011 Questions 51 Proposed Budget FY 2011 Next Meetings May 25 – Utilities and Utilities CIP, Public Works General Fund Operating, General Fund CIP May 27 – Public Works Enterprise Funds (Storm Drain, Refuse, Wastewater Treatment), Internal Service Fund, and related CIP June 14 – Municipal Fee Schedule, Contracts greater than $85k , Wrap-up June 21 – City Council Budget Review and Public Hearing June 28 – Budget Adoption 52 Proposed Budget FY 2011 Questions 53 Proposed Budget FY 2011 Department FTE Allocations Administrative Services Department – Direct Indirect by fund approx24% Utl & 10% PW direct & indirect allocation % of fund General Fund 37.49 (12.75) 24.74 29% Total General Fund 37.49 (12.75) 24.74 29% Technology Fund 30.41 30.41 35% Print & Mail Fund 1.57 1.57 2% Enterprise Fund 15.83 12.75 28.58 33% CIP 1.20 1.20 1% Total Other Funds 49.01 12.75 61.76 71% TOTAL 86.50 86.50 100% Total Allocation 288 1 City Manager’s Proposed Budget for Fiscal Year 2011 City of Palo Alto Finance Committee May 25, 2010 CSD Follow-Up Public Works Department/General Fund CIP Utilities Department/Utilities CIP 2 Proposed Budget FY 2011 Cost Recovery Data Community Services DepartmentChildren’s Performing Arts 188 participants 1,690 audience($52,392)0%0%Teen Programs 139 participants; 1,853 audience($114,677)15%21%Outreach 440 participants; 19,743 audience($453,465)17%24%Core Productions 34 participants; 2,972 audience($24,633)49%58%Wingspread 11% 53% Full Cost Recovery ($556,185) ($85,217) Income (subsidy) based on full cost 015%Administration 1,442 participants73%Education Number of Participants ( 2009) Direct Costs Recovery Program Children’s Performing Arts 3 Community Services -Children’s Theatre Cost Recovery Data for the Children’s Performing Arts (000) 29%26%22%15%13%18%Direct Cost Recovery $1,253$1,288$1,422$1,514$1,489$1,302Subsidy 437437513418465429Allocated Cost 1,1461,1461,1591,2931,1821,064Direct Costs $1,583$1,583$1,672$1,711$1,647$1,493Total Full Costs $330$295$250$197$158$191Revenues Full Cost Recovery Cost Recovery 21%19%15%12%10%13% FY 2011(Proposed with fees) FY 2011 (Proposed)FY 2010 (Estimated) FY 2009 (Actual) FY 2008 (Actual)FY 2007 (Actual) 4 Community Services -Children’s Theatre Pay to Play policy – requiring participants to pay a fee to appear in production Alternate scheme to develop a fee menu for each production – price individual performing parts based on the amount of stage time Pay to Play policy may likely suppress the number and diversity of theatre participants The level of suppression would be logically tied to the fee amount Pay to Play policy may result in the same children (from families that could afford the higher fees) leading every production $35,000$50 - $300 Children’s Theatre Potential RevenueFee Range 5 Community Services -Children’s Theatre Participation fee and ticket price of other Bay Area Children’s Theaters Volunteer hours required$6 - $8 $65 - $85 per production Rainbow Theatre (City operated - Milpitas) Volunteer hours required$15 - $30 $150 per production CMT San Jose (non-profit) Does not include costumes; Volunteer hours required $10 - $12 $175 per production San Carlos Children’s Theatre (non-profit) Multiple casts; Volunteer hours required $16 - $18 $265 per production Peninsula Youth Theatre (non-profit) Remarks Ticket Price Participation Fee Organization 6 Community Services –Children’s Theatre Participation Fees for Palo Alto Youth activities Ages 6 - 13$335 per weekJr. Museum & Zoo Summer Camp Ages 9 - 12$195 per seasonPalo Alto Little League Ages 5 - 18$350 per seasonPalo Alto AYSO Competitive Athletics Ages 5 - 18$167 per weekPalo Alto AYSO Camp AgesParticipant FeeOrganization 289 2 7 8 Children’s Theatre Production Demographics 9 CSD: Children’s Theatre Note: FY 2010 Year-end values are projections as of May 21, 2010 10 Proposed Budget FY 2011 Questions 11 Proposed Budget FY 2011 Department Changes Public Works Department Budget Balancing Summary ExpensesPW1. Contracting out custodial services- net impact ($76,233)Elimination of 3.0 FTE Building Servicepersons-one vacant ($231,933)Increase custodial contract services $155,700 PW2. Contracting out tree trimming- net impact ($316,204)Elimination of 4.0 FTE Tree Trimmer/Line Clearers ($390,104) Increase contract services for tree trimming $ 73,900 12 Proposed Budget FY 2011 Department Changes Public Works Department Budget Balancing Summary- Expenses (continued) PW3. Decrease non-salary expense ($136,000) PW3.1 Decrease construction materials- asphalt supply ($10,000) PW3.2 Decrease planting materials- trees ($10,000) PW3.3 Decrease contract services- cleaning ($ 8,000) PW3.4 Decrease contract services- facilities maintenance for non-essential requests ($ 8,000) PW3.5 Decrease various contract services- ($100,000) General Fund Reductions ($529,437) (7.0 FTEs eliminated, 1.0 vacant) 290 3 13 Proposed Budget FY 2011 Department Changes Public Works Department Budget Balancing Summary- Expenses (continued)The following CIP reductions assume that the transfer from the General Fund to Capital Fund will be reduced: PW4. Elimination of 1.0 FTE Project Manager ($142,271) Vacant position- CIP Parks Infrastructure PW5. Elimination of 1.0 FTE Admin. Associate III ($103,645) Retirement- CIP Engineering PW6. Decrease CIP sidewalk repair and replacement ($597,940) Elimination of 1.0 FTE Engineering Tech III ($ 97,940) Decrease contract services ($500,000) 100% responsibility to residents General Fund CIP Reductions ($843,856)(3.0 positions eliminated, 1.0 vacant, 1 pending retirement) 14 Public Works – PW6: Sidewalk Repair Program Proposed Changes CITY COSTSCENARIO (City to retain liability in all scenarios):SAVINGS Scenario 1 - Property Owner is 100% responsible for repair costs.Alternative A- City administers an annual construction contract forrepairs and bills the property owner including full cost recovery forCity administration costs.$597,940 Alternative B– Property owner responsible for repair and coordinationof work. City’s involvement would be limited to the property owner notification procedures outlined in California Streets and Highways Code. $500,000 Scenario 2 - City and Property Owner share costs 50/50. City administers an annual construction contract for repairs and billsthe property owner for 50% of the costs including full cost recovery for Cityadministration.$298,8701.0 FTE Engineering Tech would be added backContract funding for sidewalk repair would be reduced by $250,000 (instead of $500,000) 15 Proposed Budget FY 2011 Department Changes Public Works Department Budget Balancing Summary- Expenses (continued) Total Proposed Budget Balancing Actions: Expenditure reductions ($1,372,293) General Fund Reductions ($529,437) Reduction of General Fund transfer to Capital Fund ($843,856) Elimination of 10.0 FTE (2 vacant, 1 pending retirement, 7 filled) 16 Proposed Budget FY 2011 Department Changes Public Works Department Alternatives to Sidewalk Replacement Program PW7. Decrease facilities rehabilitation program ($296,271) Elimination of 1.0 FTE Project Manager ($142,271)0.5 FTE General Fund, 0.5 FTE Capital FundDecrease non-salary expense ($154,000)Funds are typically used for mechanical equipment replacement, electrical upgrades, some tenant improvement work, efficiency projects, etc. PW8. Elimination of 1.0 FTE Supervising Project Engineer ($161,525)Currently filled with incumbent working out of class in Supervising Project Manager position, which is vacant due toretirementWould impact plan review in Private Development section 17 Proposed Budget FY 2011 Department Changes Public Works Department Alternatives to Sidewalk Replacement Program PW9. Elimination of 1.0 FTE Traffic Control Maintainer II ($89,421) Would not be able to complete work requests from Planning Transportation Division Impacts include fabricating and placing new signs, painting new red curbs and any new legend painting along roads and assisting with placement of new traffic calming devices. PW10. Elimination of half-time hourly Maintenance Assistant- graffiti removal ($15,795) Graffiti removal would only be completed if it is offensive and as staff time becomes available Total Proposed Alternatives -($563,012) 18 Proposed Budget FY 2011 Department Changes Public Works Department General Overview ItemsRevenue - highlights Decrease Plan Check Fee ($100,000)Decrease Building/New Construction Permit Fee (35,000)Decrease Encroachment Permit Fee (50,000) Decrease Street Opening Permit Fee (70,000) Allocated Revenue Decrease (77,645) Increase Street Cut Fees 85,000($247,645) Citywide Changes Personnel Benefits Costs decrease ($ 55,954)Allocated charges increase 100,532$44,578 291 4 19 Proposed Budget FY 2011 Questions 20 Proposed GF CIP Budget FY 2011 Total General Fund Proposed Projects - $20.4 million 2 1 3 4 1.Land, Buildings & Facilities ($9.0 M) - 44% 2. Streets and Sidewalks ($6.9 M) - 34% 3. Parks and Open Space ($1.2 M)- 6% 4. Miscellaneous($3.3 M) - 16% (Salaries and Benefits) 21 Proposed GF CIP Budget FY 2011 Total General Fund Proposed Funding Sources - $20.4 million 3 4 5 6 2 1 1 - Infrastructure Reserve ($15.2 M) - 75% 2 - Street Improvement Fund/Development Impact Fees Fund ($1.0 M) - 4% 3 - General Obligation Bonds ($1.4 M) - 7% 4 - Other Agencies ($1.2 M) - 6% 5 - General Fund ($1.4 M) - 7% 6 - Transfers from Enterprise Funds ($0.2) - 1% General Fund transfer to IR - $9.2 million 22 Proposed GF CIP Budget FY 2011 Infrastructure Reserve FY 2011 General Fund contributions - $9.2 million $7.8 million for on-going replacement and rehabilitation $0.2 million designated for individual projects $1.2 for Salary and Benefits IR can support the current five-year plan Transfer from GF to IR is reduced by $0.7 million – $0.5 Million (shift cost to residents) for the Sidewalk Maintenance $0.2 million; elimination of 1.9 FTE Infrastructure Reserve is projected to be in the range of $2.0 to $5.0 million (FY 2011 through FY 2015) 23 Proposed CIP Budget FY 2011 Infrastructure Reserve (IR) Five year projection Infrastructure Reserve Projected Balance - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 2011 2012 2013 2014 2015Fiscal Year Ba l a n c e 24 Proposed GF CIP Budget FY 2011 General Fund Financial Summary *Includes $16.9 million in Library General Obligation Bond proceeds 8,9674,1982,8772,4172,6128,967IR balance, beginning $4,904$4,904$4,198$2,877$2,417$2,612IR balance, ending (4,063)7061,321460(195)(6,355)Sources Over (short) 85,91612,23611,67812,25529,33820,409CIP Projects Uses 81,85312,94212,99912,71529,14314,054Total Sources 24,6678509001,12017,982*3,815Reimbursements 3,6513458057437231,035Interest Income $53,535$11,747$11,294$10,852$10,438$9,204General Fund Annual transfer Sources TotalFY 2015FY 2014FY 2013FY 2012FY 2011Description ($000) 292 5 25 Proposed GF CIP Budget FY 2011 CIP Committee ProcessCIP Committee began meetings in October 2009 Identified existing projects in the current year that had remaining appropriations that could be returned to reserves•$2.8 million returned to Infrastructure Reserve•$3.2 million returned to Budget Stabilization Reserve (includes the $2.7 million from the Public Safety Building project)Reviewed prioritization criteria and prioritized projects Reviewed projected Infrastructure Reserve BalanceReviewed current capacity - staff’s ability to start and complete projects as budgetedMet twice in November and February with the Planning and Transportation Commission to get input on the CIP Plan as part of new process (minutes provided at places) Met with Planning and Transportation Commission May 12 for annual conformity with Comprehensive Plan review of proposed CIP (letter report and minutes provided at places) 26 Proposed GF CIP Budget FY 2011 CIP Prioritization Criteria Council direction Leveraged funding (Public/Private Partnership/Grants/Impact Fees) Health and safety requirements Code/legal requirements Operational needs and efficiency Sustainability Community Priorities Revenue generating potential 27 Proposed GF CIP Budget FY2011 Staffing Capacity to accomplish Projects Committee evaluates proposed program to ensure staff’s capacity to accomplish projects is not exceeded Current capacity is $10 to $14 million in capital projects each year (per Black and Veatch study) When new projects are added other projects are deferred or additional capacity can be added through professional service contracts for project design and construction management 28 Proposed GF CIP Budget FY2011 Highlights of Changes to CIP Projects Annual Street Maintenance Project - $2 million increase each year (total of $10 million increase for the five year plan) Annual Sidewalk Maintenance Project – $.5 million proposed elimination and shift cost to the City residents. 29 Proposed GF CIP Budget FY 2011 Projects Funded in FY 2011 Main Library Improvements-design (Measure N): $1.4 million Art Center Electrical & Mechanical Upgrade: $2.6 million Civic Center Improvements: $3.0 million Annual Street Maintenance (increase of $2 million): $3.8 million Annual Sidewalk Repairs (net of $0.5 million): $0.2 million Monroe Park: $0.3 million Cubberley Restroom Upgrades: $0.3 million El Camino Real/Stanford Avenue Streetscape and Intersection Improvements: $1.7 million Dinah SummerHill Pedestrian/Bicycle Path : $0.3 million San Antonio Medians: $0.6 million Lucie Stern Community Theatre - new sound system: $0.2 million Civic Center Level 1-master plan study: $0.3 million 30 Proposed GF CIP Budget FY 2011 Update on Backlog •Total Backlog (20 years)$ 301,669 •Infrastructure Future Needs 208,280 •Total Estimated Backlog 509,949 •2011-15 GF CIP appropriations (85,917) •Total Estimated Unfunded Backlog $424,032 293 6 31 Proposed GF CIP Budget FY 2011 Update on the Infrastructure Blue Ribbon Commission (IBRC) Citizens task force to evaluate infrastructure needs Will make recommendations on potential bond measure or other financing measures Timeframe Additional CIP Project – amendment to the proposed budget document (CSD – At places) Cubberley Gym Activity Room $65,000 Renovation of large locker room into activity room Will house tenants and renters displaced by CubberleyAuditorium housing a temporary library 32 Proposed Budget FY 2011 Questions 33 Proposed Budget FY 2011 Department Changes - Operating Utilities Department - HighlightsFY 2011 Changes No rate changes proposed(Adopted in concept budget included rate increases – 15%, Electric,15%, Gas, 7% Water, and 5%, Wastewater) Position Requests 1.0 Customer Service Representative and 1.0 Customer Service Specialist withdrawn ($201,985) 1.0 Senior Auditor (approved in City Auditor’s Office) $149,615 5.0 FTE additions requested (allocated across funds) $734,034Compliance and Reporting 1.0 Compliance Manager $192,6982.0 Utility Installer/Repairer $218,032 Customer Service and Support1.0 Senior Business Analyst $169,921Communication and Media Relations 1.0 Manager, Communications $153,383 Total Cost (6.0 positions) $883,649 34 Proposed Budget FY 2011 Department Changes - Operating Utilities Department – Compliance and ReportingFY 2011 ChangesNew positions 1.0 Compliance Manager (All Funds) 2.0 Utility Installer/Repairer (Gas, Wastewater Collection) Ensure compliance with increasing regulationsElectric – North American Reliability Corporation, Western Electricity Coordinating Council, California Public Utilities Commission Gas - US Department of Transportation Water - CA Department of Public Health Services (Cross Connection, Water Quality, Operations)Wastewater Collection - State and Regional Water Quality Control Boards (Sanitary Sewer Management Plan) Oversight of reporting, deadline tracking, and data compilation 35 Proposed Budget FY 2011 Department Changes - Operating Utilities Department – Customer Support Services FY 2011 Changes New positions1.0 Senior Business Analyst Support utility billing system (technical)Resolve complex system issuesDevelop new functionality and enhancements (mandated legislation) Configure and test systemProcess system exceptions (i.e. high or low reads/high or low invoices)Improves quality control Support more complex processes and new communication channels Continue to staff with full-time temporary FTE’sEnhance and evaluate system efficienciesRevisit new position requests in FY2012 after two full years of implementation 36 Proposed Budget FY 2011 Department Changes - Operating Utilities Department – Communication and Media RelationsFY 2011 Changes New position- 1.0 Manager, Communications(Restoration of 1 FTE that existed in department 1997-2007) Develop Departmental Communications Plan Conduct an effective & proactive communications strategy Cultivate effective relationships with, and timely response to, local and industry media Communicate Utilities Strategic Vision and Goals Centralize and manage coordinated utility-wide messaging Enhance coordination with other City departmentsAdvise senior managers/technical experts to effectively communicate to stakeholders 294 7 37 Proposed Budget FY 2011 Department Changes - Operating Utilities Department - Electric FundFY 2011 Changes Revenue decrease – ($4.8 million)No proposed rate change (15% increase in AIC)One-time adjustments from midyear ($3.4 million) Expense decrease – ($6.9 million) Decrease Electric Commodity Purchase ($3.6 million)Increase Joint Agency Debt Service 1.1 millionIncrease Capital Improvement Program 0.6 millionIncrease Operating Transfer to Technology Fund 0.4 million Decrease Solar Rebates (0.5 million)One-time adjustments from midyear (3.6 million) Citywide Changes $ 64,000 Personnel Benefits Costs decrease ($401,000)Allocated Charges increase 465,000 Total FY 2011 Rate Stabilization Reserves are projected to decrease ($7.0 million) or (14.1%) to $42.4 million 38 Proposed Budget FY 2011 Department Highlights - Capital Utilities Department - Electric Fund Capital Improvement Program FY 2011 Expenditures – $10.1 million EL-89028 Electric Customer Connections $1.9 million EL-98003 Electric System Improvements $2.1 million EL-10006 Rebuild Underground District 24 $ 750,000 EL-09000 Middlefield Underground Rebuild $ 550,000 Other New Multi-year CIPs $1.75 million EL-11014 Smart Grid Technology $500,000EL-11015 Re-conductor 60kV Overhead Line $450,000 EL-10009 Street Light System Conversion Project $800,000 39 Electric Supply Rate Stabilization Reserves - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 Fiscal Year $'0 0 0 FY Ending Reserve Balance Min & Max Guidelines 40 Electric Distribution Rate Stabilization Reserves - 2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 Fiscal Year $'0 0 0 FY Ending Reserve Balance Min & Max Guidelines 41 2011 Expected Average System Revenue Per KWh (in $/KWh) Last Update: May 11, 2010 (Draft) 0.1025 0.1151 0.1178 0.12350.1250 0.1277 0.1290 0.1298 0.13230.1340 0.1356 0.1367 0.1370 0.14210.1436 0.1450 0.1540 0.1541 0.15970.1740 0.1543 0.1570 0.1642 0.1182 Santa Clara Palo Alto Merced ID SMUD Turlock IDRedding Roseville LADWP Alameda Imperial IDRancho Cucam. Anaheim Modesto ID Azusa PasadenaRiverside Burbank Lompoc Lodi GlendaleBanning SCE** PGE SDG&E** Based on self reported databy members of California Municipal Rates Group (CMRG) 42 Proposed Budget FY 2011 Questions 295 8 43 Proposed Budget FY 2011 Department Changes - Operating Utilities Department – Fiber Optics Fund FY 2011 Changes Revenue increase – $0.3 million Increased marketing activity and customer projects2.6% CPI rate adjustment for rate schedules EDF-1 and EDF-2 Expense increase – $0.6 millionIncrease Salaries and Benefits $0.3 million, primarily due to the reallocation of personnel from other funds Citywide Changes $280,000 Personnel Benefits Costs increase $ 79,000Allocated Charges increase 201,000 Total FY 2011 Rate Stabilization Reserves are projected to increase $1.1 million or 13.9% to $9.0 million 44 Proposed Budget FY 2011 Department Highlights - Capital Utilities Department – Fiber Optics Fund Capital Improvement Program FY 2011 Expenditures - $0.4 million FO-10000 Fiber Optics Customer Connections $200,000 FO-10001 Fiber Optics Network System Improvements $200,000 Columbia Telecommunications Corp. currently assisting with engineering and system design of the business plan Contract amended $50k at mid year to $135k. remaining $59k balance of the contract will be carried forward to complete the initial cost assessment 45 Proposed Budget FY 2011 Questions 46 Utilities Department - Gas FundFY 2011 Changes Revenue decrease – ($1.3 million)No proposed rate change (15% increase included in Adopted In Concept) One-time adjustments from midyear ($1.0 million) Expense increase – $4.8 million Decrease Gas Commodity Purchase ($2.3 million) Increase Capital Improvement Program $6.0 millionCitywide Changes $684,000 Personnel Benefits Costs increase $ 66,000 Allocated Charges increase $618,000 FY 2010 Rate Stabilization Reserves are projected to decrease 37.9% or ($5.3 million) to $8.7 million Proposed Budget FY 2011 Department Changes - Operating 47 Proposed Budget FY 2011 Department Highlights - Capital Utilities Department - Gas Fund Capital Improvement Program FY 2011 Expenditures – $8.3 million GS-11001 Gas Station 4 Rebuild $ 337,000 GS-80017 Gas System Extensions 700,000 GS-09002 Gas Main Replacement- Project 19 5.8 million GS-11000 Gas Main Replacement- Project 21 457,000 48 Gas Supply Rate Stabilization Reserves - 2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000 22,500 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 Fiscal Year $'0 0 0 FY Ending Reserve Balance Min & Max Guidelines 296 9 49 Gas Distribution Rate Stabilization Reserves - 2,500 5,000 7,500 10,000 12,500 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 Fiscal Year $'0 0 0 FY Ending Reserve Balance Min & Max Guidelines 50 City of Palo Alto - Gas Bill Comparison with PG&E Average Residential Customer Annual Bill $- $200 $400 $600 $800 $1,000 $1,200 $1,400 FY 98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 PG&E Palo Alto 51 Proposed Budget FY 2011 Questions 52 Proposed Budget FY 2011 Department Changes - Operating Utilities Department – Wastewater Collection FundFY 2011 Changes Revenue decrease – ($0.1 million)No proposed rate change (5% increase included in AIC) Expense increase – $0.5 million Decrease Wastewater Treatment charges ($0.4 million) Increase Capital Improvement Program 0.2 millionIncrease Operating Transfer to Technology Fund 0.1 millionIncrease Operating Transfer to Refuse Fund 0.4 millionCitywide Changes $220,000 Personnel Benefits Costs increase $ 22,000 Allocated Charges increase 198,000 FY 2011 Rate Stabilization Reserves are projected to decrease 17.9% or ($1.0 million) to $4.6 million 53 Proposed Budget FY 2011 Department Highlights - Capital Utilities Department – Wastewater Collection Fund Capital Improvement Program FY 2011 Expenditures – $4.1 million WC-99013 Sewer Lateral/Manhole Rehab/Repl $560,000 WC-10002 WWC System Rehab/Aug. Project 23 $2.8 million WC-11000 WWC System Rehab/Aug. Project 24 $290,000 WC-80020 Sewer System Extensions $330,000 54 Wastewater Collection Rate Stabilization Reserves - 2,500 5,000 7,500 10,000 12,500 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 Fiscal Year $'0 0 0 FY Ending Reserve Balance Min & Max Guidelines 297 10 55 $‐$20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140 Alameda (City)Oro Loma SDLos AltosSanta ClaraCentral Marin Sanitation Agency (CMSA)West County WDCastro Valley SD (CVSD)OaklandCounty SDs 2‐3Union SDBerkeleyWest Valley SDHarbor Industrial SMD (San Carlos)Mountain ViewHaywardPalo AltoMill ValleyBelmontCupertino SDAlbanyFairfield‐Suisun Sewer DistConcordCentral Contra Costa SDBrisbaneBay PointSan LeandroAntiochSunnyvalePleasantonSan JosePittsburgSausalito, City ofMilpitasFair Oaks SMD (RWC)Napa SDNovato SDSan Francisco PUCAmerican CanyonVallejo SFCDSouth San Francisco/San Bruno POTWLas Gallinas Valley SDTiburon SDMt. View Sanitary District (MVSD)LivermoreMarin SD #2 (Corte Madera)Yountville, Town ofSanitary District No. 1 of Marin County (Ross Valley)CalistogaSan Carlos, City ofFoster City/Estero MIDDublin‐San Ramon SD (DSRSD)Airport‐Larkfield‐Wikiup Sanitary District No. 1 of Marin County (City of Larkspur)EBMUD, Special Dist No. 1Redwood CitySan Rafael SDCrockett Sanitary Dept.Scenic Heights CSD (San Carlos)West Bay Sanitary DistrictSonoma Valley Co San DistOak Knoll CSD (RWC)South Park San DistTamalpais Community Svcs Dist (TCSD)MillbraeDaly CityLos Altos HillsEmerald Lake ‐Zone 2 (RWC)Kensington Square SMD (RWC)GeyservilleSan Mateo, City ofDevonshire CSD (San Carlos)Sea Ranch San ZoneEdgewood SMD (RWC)BurlingameCrystal Springs CSDSan BrunoPenngrove San ZoneRussian River Co San DistEmerald Lake ‐Zone 1 (San Carlos)Burlingame Hills SMDHalf Moon BayOccidental County San DistHillsboroughPort Costa Sanitary Dept. 2010 Average Residential Monthly Wastewater Charges 56 Proposed Budget FY 2011 Questions 57 Proposed Budget FY 2011 Department Changes - Operating Utilities Department - Water FundFY 2011 Changes Revenue decrease – ($35.0 million) No proposed rate change (7% increase included in AIC)Prior year- Utility Revenue Bonds for Emergency Water Supply Project ($35 million)Expense decrease – ($15.0 million) Increase commodity costs $1.7 millionDecrease Capital Improvement Program ($19.0 million)Correction to increase CIP Expenditures by $67,000Increase Debt Service $2.2 million Citywide ChangesPersonnel Benefits Costs decrease ($229,000)Allocated Charges increase $346,000 Total FY 2011 reserves are projected to decrease 24.3% or ($5.3 million) to $16.5 million 58 Proposed Budget FY 2011 Department Highlights - Capital Utilities Department - Water FundCapital Improvement Program FY 2011 Expenditures – $8.8 million WS-08002 Emergency Water Supply Project $3.5 millionWS-10001 Water Main Replacement- Project 24 2.9 million WS-07001 Water Recycling Facilities 500,000 59 Water Rate Stabilization Reserves - 2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 Fiscal Year $'0 0 0 FY Ending Reserve Balance Min & Max Guidelines 60 298 11 61 Proposed Budget FY 2011 Average Residential Utility Bill Average Projected Residential Monthly Utility Bills Current Proposed Utility FY 2010 Bill FY 2011 Bill $ Difference % Difference Electric (650KWH) $76.33 $76.33 $0.00 0.0% Water (14CCF) 72.01 72.01 $0.00 0.0% Gas (100/30TH) 99.42 99.42 $0.00 0.0% Wastewater 24.65 24.65 $0.00 0.0% Refuse 31.00 31.00 $0.00 0.0% Storm Drain 10.95 11.23 $0.28 2.6% User Tax 12.39 12.39 $0.00 0.0% Total Monthly Bill 326.75$ 327.03$ 0.28$ 0.1% FY2011 Storm drain will increase by CPI at 2.6%62 Proposed Budget FY 2011 Questions 63 Proposed Budget FY 2011 Next Meetings May 27 – Benefits/General Liability ISFs, Public Works Enterprise Funds (Storm Drain, Refuse, Wastewater Treatment), Internal Service Fund, and related CIP June 14 – Municipal Fee Schedule, Contracts greater than $85k , Wrap-up June 21 – City Council Budget Review and Public Hearing June 28 – Budget Adoption 299 1 1 City Manager’s Proposed Budget for Fiscal Years 2011 City of Palo Alto Finance Committee May 27, 2010 2 Balancing the Budget Proposed Budget Budget gap (revised) $(7.3 million) Proposed reductions ($ 8.5 million) Salary & Benefits $ 5.6 million Non-Salary 2.9 million New revenues, revenue increases $ 0.9 million Total recommendations $ 9.4 million Temporary “surplus”$ 2.1 million 2 3 City Manager’s Proposed Budget for Fiscal Year 2011 City of Palo Alto Finance Committee May 27, 2010 Utilities Department/Utilities CIP ASD ISFs - Benefits/Liability/Workers Comp. Public Works Department – Enterprise Funds Public Works Department – Vehicle Fund 4 Proposed Budget FY 2011 Department Changes - Operating Utilities Department - HighlightsFY 2011 Changes No rate changes proposed(Adopted in concept budget included rate increases – 15%, Electric,15%, Gas, 7% Water, and 5%, Wastewater) Position Requests 1.0 Customer Service Representative and 1.0 Customer Service Specialist withdrawn (4 Temporary staff maintained) ($53,032) 1.0 Senior Auditor (approved in City Auditor’s Office) $149,615 5.0 FTE additions requested (allocated across funds) $734,034Compliance and Reporting 1.0 Compliance Manager $192,6982.0 Utility Installer/Repairer $218,032 Customer Service and Support1.0 Senior Business Analyst $169,921Communication and Media Relations 1.0 Manager, Communications $153,383 Total Cost (6.0 positions) $883,649 5 Proposed Budget FY 2011 Department Changes - Operating Utilities Department – Compliance and ReportingFY 2011 Changes New positions 1.0 Compliance Manager (All Funds)2.0 Utility Installer/Repairer (Gas, Wastewater Collection) Ensure compliance with increasing regulations Electric – North American Reliability Corporation, Western Electricity Coordinating Council, California Public Utilities CommissionGas - US Department of Transportation Water - CA Department of Public Health Services (Cross Connection, Water Quality, Operations) Wastewater Collection - State and Regional Water Quality Control Boards (Sanitary Sewer Management Plan) Oversight of reporting, deadline tracking, and data compilation 6 Proposed Budget FY 2011 Department Changes - Operating Utilities Department – Customer Support Services FY 2011 Changes New positions1.0 Senior Business Analyst Support utility billing system (technical)Resolve complex system issuesDevelop new functionality and enhancements (mandated legislation) Configure and test systemProcess system exceptions (i.e. high or low reads/high or low invoices)Improves quality control Support more complex processes and new communication channels Continue to staff with full-time temporary FTE’sEnhance and evaluate system efficienciesRevisit new position requests in FY2012 after two full years of implementation 300 2 7 Proposed Budget FY 2011 Department Changes - Operating Utilities Department – Communication and Media RelationsFY 2011 Changes New position- 1.0 Manager, Communications(Restoration of 1 FTE that existed in department 1997-2007) Develop Departmental Communications Plan Conduct an effective & proactive communications strategy Cultivate effective relationships with, and timely response to, local and industry media Communicate Utilities Strategic Vision and Goals Centralize and manage coordinated utility-wide messaging Enhance coordination with other City departmentsAdvise senior managers/technical experts to effectively communicate to stakeholders 8 Proposed Budget FY 2011 Department Changes - Operating Utilities Department - Electric FundFY 2011 Changes Revenue decrease – ($4.8 million)No proposed rate change (15% increase in AIC)One-time adjustments from midyear ($3.4 million) Expense decrease – ($6.9 million) Decrease Electric Commodity Purchase ($3.6 million)Increase Joint Agency Debt Service 1.1 millionIncrease Capital Improvement Program 0.6 millionIncrease Operating Transfer to Technology Fund 0.4 million Decrease Solar Rebates (0.5 million)One-time adjustments from midyear (3.6 million) Citywide Changes (net) $ 64,000 Personnel Benefits Costs decrease ($401,000)Allocated Charges increase 465,000 Total FY 2011 Rate Stabilization Reserves are projected to decrease ($7.0 million) or (14.1%) to $42.4 million 9 Proposed Budget FY 2011 Department Highlights - Capital Utilities Department - Electric FundCapital Improvement Program FY 2011 Expenditures – $10.1 million EL-89028 Electric Customer Connections $1.9 million EL-98003 Electric System Improvements $2.1 million EL-10006 Rebuild Underground District 24 $ 750,000 EL-09000 Middlefield Underground Rebuild $ 550,000 Other New Multi-year CIPs $1.75 million EL-11014 Smart Grid Technology $500,000 EL-11015 Re-conductor 60kV Overhead Line $450,000EL-10009 Street Light System Conversion Project $800,000 10 Proposed Budget FY 2011 Questions 11 Utilities Department - Gas FundFY 2011 Changes Revenue decrease – ($1.3 million) No proposed rate change (15% increase included in Adopted In Concept) One-time adjustments from midyear ($1.0 million) Expense increase – $4.8 million Decrease Gas Commodity Purchase ($2.3 million)Increase Capital Improvement Program $6.0 millionCitywide Changes $684,000 Personnel Benefits Costs increase $ 66,000Allocated Charges increase $618,000 FY 2010 Rate Stabilization Reserves are projected to decrease 37.9% or ($5.3 million) to $8.7 million Proposed Budget FY 2011 Department Changes - Operating 12 Proposed Budget FY 2011 Department Highlights - Capital Utilities Department - Gas Fund Capital Improvement Program FY 2011 Expenditures – $8.3 million GS-11001 Gas Station 4 Rebuild $ 337,000 GS-80017 Gas System Extensions 700,000 GS-09002 Gas Main Replacement- Project 19 5.8 million GS-11000 Gas Main Replacement- Project 21 457,000 301 3 13 Proposed Budget FY 2011 Questions 14 Proposed Budget FY 2011 Department Changes - Operating Utilities Department – Wastewater Collection FundFY 2011 Changes Revenue decrease – ($0.1 million)No proposed rate change (5% increase included in AIC)Expense increase – $0.5 million Decrease Wastewater Treatment charges ($0.4 million)Increase Capital Improvement Program 0.2 million Increase Operating Transfer to Technology Fund 0.1 millionIncrease Operating Transfer to Refuse Fund 0.4 millionCitywide Changes $220,000 Personnel Benefits Costs increase $ 22,000Allocated Charges increase 198,000 FY 2011 Rate Stabilization Reserves are projected to decrease 17.9% or ($1.0 million) to $4.6 million 15 Proposed Budget FY 2011 Department Highlights - Capital Utilities Department – Wastewater Collection Fund Capital Improvement Program FY 2011 Expenditures – $4.1 million WC-99013 Sewer Lateral/Manhole Rehab/Repl $560,000 WC-10002 WWC System Rehab/Aug. Project 23 $2.8 million WC-11000 WWC System Rehab/Aug. Project 24 $290,000 WC-80020 Sewer System Extensions $330,000 16 Proposed Budget FY 2011 Questions 17 Proposed Budget FY 2011 Department Changes - Operating Utilities Department - Water FundFY 2011 ChangesRevenue decrease – ($35.0 million) No proposed rate change (7% increase included in AIC)Prior year- Utility Revenue Bonds for Emergency Water Supply Project ($35 million) Expense decrease – ($15.0 million)Increase commodity costs $1.7 millionDecrease Capital Improvement Program ($19.0 million)Correction to increase CIP Expenditures by $67,000Increase Debt Service $2.2 million Citywide ChangesPersonnel Benefits Costs decrease ($229,000)Allocated Charges increase $346,000 Total FY 2011 reserves are projected to decrease 24.3% or ($5.3 million) to $16.5 million 18 Proposed Budget FY 2011 Department Highlights - Capital Utilities Department - Water FundCapital Improvement Program FY 2011 Expenditures – $8.8 million WS-08002 Emergency Water Supply Project $3.5 millionWS-10001 Water Main Replacement- Project 24 2.9 millionWS-07001 Water Recycling Facilities 500,000 302 4 19 Proposed Budget FY 2011 Questions 20 Proposed Budget FY 2011 Citywide Changes-General Benefits/Insurance and Retiree Health Insurance Internal Service Funds Changes to Health Benefits and Pension Cost Allocation Methodology Pension benefit cost allocations based upon current contribution rates for existing employees rather than budgeted salaries at control point for employees at full strength FY 2011 pension expense - $19.3 million FY 2010 budget, $23.5 million Staff downsizing - $1.0 million Budgeting at control point at full strength - $3.2 million$800k increase from FY2010 projected of $18.5 million 21 Proposed Budget FY 2011 General Benefits and Insurance Fund Pension Contribution Percentages * SEIU employees pay 5.75%, Management, 2% Public Safety PlanMiscellaneous Plan 9.0024.695*8.0017.5552011 9.0023.9388.0017.0632010 9.0024.5128.0017.0052009 9.0023.6117.0011.4762008 9.0024.2087.0011.4362007 9.0027.7787.0012.4102006 EmployeeEmployerEmployeeEmployerFiscal Year 22 Proposed Budget FY 2011 Citywide Changes-General Benefits/Insurance and Retiree Health Insurance Internal Service Funds Changes to Health Benefits and Pension Cost Allocation Methodology Health Benefits allocation based upon census of existing employees’ current benefit plans versus incremental increase in total budgeted base benefits for all employees FY 2011 medical expense - $11.7 million FY 2010 budget - $13.2 million $325k – staff downsizing $1.2 million – budgeting at control point at full strength 23 Proposed Budget FY 2011 General Benefits and Insurance Fund Average Monthly/Annual Medical Cost Per Participant *Includes Mgt. and SEIU contribution of ½ of increased premium costs $13,570 $ 640 *Fiscal Year 2011 (860 Active Participants) $1,131 4.95% Increase $ 53 Annual $12,930 Monthly Fiscal Year 2010 $1,078 (projected year end – 916 Active Participants) 24 Proposed Budget FY 2011 Department Changes General Benefits/Insurance and RetireeHealth Insurance Internal Service Fund FY 2011 other benefits -$6.6 million$3.2 million in Claims payments ($2.6 million, W/C, $600k, General Liability)$1.6 million – Dental$380k – Life Insurance$200k – Unemployment Insurance $520k – Administrator Fees –$200k, Dental mgt. flex, Vision, $260k W/C TPA, $60k Alliance Risk Pool/George Hills, Inc. $400k – Workers Compensation Insurance$300k – Vision, EAP, Commute Program 303 5 25 Proposed Budget FY 2011 Department Changes General Benefits/Insurance and RetireeHealth Insurance Internal Service Fund $1.1 million expenses - Umbrella Excess and Special Liability Incurred But Not Reported adjustment budgeted - $638k $335k – Workers Compensation $303k – General Liability Accounting Change for Fiscal Year 2011General Benefits, Workers Compensation and General Liability Funds to be presented separately in financial reports such as the Comprehensive Annual Financial Report (CAFR) Increase in citywide retiree medical $600k from$9 million in FY 2010 to $9.6 million in FY 2011 26 Proposed Budget FY 2011 General Benefits and Insurance Fund Workers’ Compensation and General Liability Claims Paid No. of ClaimsPaidNo. of ClaimsPaidFiscal Year 136882,9841461,736,8965-year Avg 1301,352,9441561,815,4712004 144391,6921551,980,7632005 107646,2791511,746,0942006 1491,280,5791391,641,3282007 160934,4231391,418,2952008 126$691,986134$1,819,4242009 General LiabilityWorkers’ Comp 27 Proposed Budget FY 2011 Questions 28 Proposed Budget FY 2011 Department Changes - Operating Public Works Department – Storm Drainage Fund FY 2011 Changes Revenue increase – $82,000 2.6 percent rate increase for local CPI changes $140,000 Decrease interest income (58,000) Expense increase – $38,000 Decrease Operating Transfer to General Fund ($99,000)Increase Capital Improvement Program 89,000 Increase Operating Transfer to Technology Fund 25,000Citywide Changes ($37,000) Personnel Benefits Costs decrease ($33,000)Allocated Charges decrease (4,000) Total FY 2011 reserves are projected to increase $122,000 or 40.7% to $422,000 29 Proposed Budget FY 2011 Department Highlights - Capital Public Works Department – Storm Drainage Fund Capital Improvement Program FY 2011 Expenditures – $1.5 million SD-11101 Channing Avenue/Lincoln Avenue Storm Drain Improvements $895,000 SD-06101 Storm Drain System Replacement and Rehabilitation 564,000 30 Proposed Budget FY 2011 Questions 304 6 31 Proposed Budget FY 2011 Public Works Department - Refuse Fund Statement of Net Assets as of June 30, 2009 – (000s) AssetsCash $9,499Capital Assets 3,975Other Assets 3,122Total Assets $16,596 LiabilitiesLandfill Closure/Postclosure $10,991Other Liabilities 803Total Liabilities $11,794 Invested in Capital Assets $3,975Rate Stabilization Reserve ($2,844)Committed CIP Reapprop. 3,671Unrestricted 827Total Net Assets $4,802 32 Proposed Budget FY 2011 Public Works Department - Refuse Fund Refuse Fund- Change in Net Assets (Revenues less Expenses) FY Budget Actual Variance 2004 (3,193,175.00)(3,005,051.00)188,124.00 2005 (3,762,753.00)(1,220,766.00)2,541,987.00 2006 (155,066.00)(2,669,003.00)(2,513,937.00) 2007 (295,250.00) 565,595.00 860,845.00 2008 (1,214,280.00)(171,093.00)1,043,187.00 2009 (1,348,648.00)(5,410,646.00)(4,061,998.00) 2010 588,286.00 (4,239,564.00)(4,827,850.00) Note: FY 2010 actual amounts are projected 33 Proposed Budget FY 2011 Public Works Department - Refuse Fund Refuse Fund- Rate Stabilization Reserve and Cash Year-end Balances FY RSR Cash 2004 6,135,000.00 13,103,000.002005 3,842,000.00 11,609,000.00 2006 3,099,000.00 9,189,000.00 2007 4,414,000.00 10,625,000.002008 3,832,000.00 11,825,000.00 2009 (2,844,000.00)9,499,000.00 2010 (7,084,000.00) 6,600,000.00 Cash balance of $7.0 million at 5/27/2010 Note: FY 2010 actual amounts are projected 34 Proposed Budget FY 2011 Department Changes - Operating Public Works Department - Refuse FundFY 2011 Changes Revenue decrease – ($7.2 million) Rate changes pending rate analysis Fall 2010Increase Operating Transfer from Wastewater Collection Fund $0.4 millionExpense decrease –Changed from Proposed ($0.5 million) Decrease Waste Hauling Contract- GreenWaste ($1.0 million) Increase Capital Improvement Program $1.7 millionIncrease Operating Transfer to Technology Fund $0.1 millionDecrease Operating Transfer to General Fund ($0.1 million)Decrease various non-salary expenses ($0.6 million) Citywide Changes ($303,000)Personnel Benefits Costs decrease ($160,000)Allocated Charges decrease ($143,000) Total FY 2011 Proposed expenses exceed revenues by $6.2 million 35 Proposed Budget FY 2011 Department Highlights - Capital Public Works Department - Refuse Fund Capital Improvement Program FY 2011 Expenditures – $1.65 million RF-11001 Landfill Closure $600,000 RF-10003 Drying Beds, Material Storage, and Transfer Area $750,000 RF-10002 Flare Relocation Project $300,000 36 Proposed Budget FY 2011 Department Changes - Operating Public Works Department - Refuse Fund Projected Cash as of June 30, 2010 $6.6 Million FY 2011 Proposed Budget (6.2 Million)(Excess of expenses over revenues) Projected Cash as of June 30, 2011 $ 400,000* Landfill Closure Liability – $6.1 Million *The State Government Code requires that the City provide financial assurance for the landfill closure/post-closure costs 305 7 37 2011 PROPOSED REFUSE FUND REVENUE 29,897,824TOTAL 0.20%60,000Royalty Payments 0.48%144,500Service Fees/Permits/Licenses 1.01%300,600Investment Income 1.30%390,000Landfill charges to City Depts 3.37%1,007,788Reimbursements/Transfers In 6.21%1,856,000Utility Fees (includes landfill revenues) 87.43%26,138,936Customer Sales (Greenwaste) % BUDGETPROPOSEDREVENUES 38 2011 PROPOSED REFUSE FUND EXPENSES 36,094,722TOTAL 1.52%547,751Permitting/Enforcement 1.86%671,606HHW 3.03%1,092,744Zero Waste 4.57%1,650,000Capital Projects 5.70%2,057,399Street Sweeping 8.40%3,033,431Admin/Allocated Charges 9.78%3,529,135Landfill Operations 11.88%4,288,747Landfill Rent 14.47%5,223,909SMaRT Station & Kirby Canyon Agreements 38.79%14,000,000GreenWaste Agreement % BUDGETPROPOSEDEXPENSES 39 FY 2010 PROJECTED REFUSE FUND REVENUE SHORTFALL 22.10%($8,194,994)Total Reduction in Projected Revenue 31.00%($402,488)Other Revenue 35.00%($524,956)PA Landfill (at gate) 42.86%($600,000)Debris Boxes 19.59%($169,296)City Facilities 47.64%($1,560,971)Industrial 23.91%($4,714,995)Commercial 3.04%($222,288)Residential % ReductionReduction in $Revenue Category 40 REASONS FOR SHORTFALL Economic downturn – commercial and industrial businesses closing or reducing service Economic downturn – less residential and commercial construction Commercial garbage ban at landfill Implementation of commercial organic collection services 41 GARBAGE TONNAGE REDUCTIONS 46.65%33,781 43,070 63,325 Total Tons 46.70%6,542 8,44312,275 Debris Box 44.74%14,097 18,681 25,509 Commercial/Industri al 0.04%9,059 9,543 9,063 Residential SMaRT Station 75.22%4,083 6,403 16,478 Landfill % Reduction 2008 to 2010 2010 (est.)20092008Calendar Year: 42 RATE INCREASE SCENARIO 1 $0 $6,100,000 $6,100,000 $6,100,000 $11,124,497 Landfill Closure/ Post-closure $8,087,457 $1,736,948 ($4,063,690)($6,069,453)($7,083,967)Rate Stabilization Reserve $6,181,855 $5,631,983 $1,880,763 ($4,134,983)($4,239,564)Change in Net Assets $31,185,375 $31,985,247 $34,666,640 $36,094,722 $33,127,693 Expenses $37,367,229 $37,617,229 $36,547,404 $31,959,739 $28,888,129 Revenue FY 2014FY 2013 FY 2012FY 2011 FY 2010 Projected 0%5%17%8%Rate Increase 306 8 43 RATE INCREASE SCENARIO 2 $0 $6,100,000 $6,100,000 $6,100,000 $11,124,497 LandfillClosure/ Post-closure $8,639,093 $2,276,337 ($3,536,547)($5,553,974)($7,083,967)RateStabilizationReserve $6,194,101 $5,644,229 $1,892,427 ($3,619,504)($4,239,564)Change in Net Assets $31,185,375 $31,985,247 $34,666,640 $36,094,722 $33,127,693 Expenses $37,379,476 $37,629,476 $36,559,067 $32,475,218 $28,888,129 Revenue FY 2014FY 2013 FY 2012FY 2011 FY 2010 Projected 0%5%15%10%Rate Increase 44 RATE INCREASE SCENARIO 3 $0 $6,100,000 $6,100,000 $6,100,000 $11,124,497 Landfill Closure/ Post-closure $7,395,088 $3,302,500 ($240,216)($1,687,884)($7,083,967) Rate stabilization Reserve $3,923,933 $3,374,061 $1,322,668 $246,586 ($4,239,564) Change in Net Assets $31,185,375 $31,985,247 $34,666,640 $36,094,722 $33,127,693 Expenses $35,109,308 $35,359,308 $35,989,308 $36,341,308 $28,888,129 Revenue FY 2014FY 2013 FY 2012FY 2011 FY 2010 Projected 0%0%0%25%Rate Increase 45 Proposed Budget FY 2011 Questions 46 Proposed Budget FY 2011 Department Changes - Operating Public Works Department – Wastewater Treatment FundFY 2011 Changes Revenue decrease – ($1.4 million) Decrease in Customer Revenues ($1.4 million) Expense increase – $0.8 million Increase Capital Improvement Program $0.8 millionIncrease in Plant Operations Costs $0.2 millionDecrease in Operating Transfer to General Fund ($0.1 million) Citywide Changes $64,000Personnel Benefits Costs decrease ($150,000)Allocated Charges increase $214,000 Total FY 2011 reserves are projected to decrease ($0.7 million) to $16.8 million 47 Proposed Budget FY 2011 Department Highlights - Capital Public Works Department – Wastewater Treatment Fund Capital Improvement Program FY 2011 Expenditures – $1.5 million WQ-04011 Facility Condition Assessment and Retrofit $1.0 million WQ-80021 Plant Equipment Replacement $1.2 million WQ-80022 System Flow Meter $250,000 48 Proposed Budget FY 2011 Questions 307 9 49 Proposed Budget FY 2011 Department Changes - Operating Public Works Department – Vehicle Replacement FundFY 2011 Changes Revenue increase – $0.4 million Increase in Reimbursements from Other Funds for Vehicle Maintenance and Replacement $0.6 million (net of $483k reduction pending fleet review)Decrease sale of salvage ($0.1 million)Decrease interest income ($0.1 million) Expense decrease – ($0.6 million) Decrease Capital Improvement Program ($0.7 million)Vehicle Replacement CIP has been removed as an amendment to the Proposed Budget (page 268) Citywide Changes - $46,000Personnel Benefits Costs decrease ($21,000)Allocated Charges increase $67,000 Total FY 2011 fund balance is projected to decrease ($0.2 million) to $19.5 million 50 Proposed Budget FY 2011 Department Highlights - Capital Public Works Department – Vehicle Replacement Fund Capital Improvement Program FY 2011 Expenditures –$70,000 VR-07001 Automated Motor Pool Reservation and Vehicle Key Management System $20,000 VR-11002 RFID Reader at MSC and Civic Center $50,000 Implemented in response to audit recommendation #4 from the recently completed Fleet Utilization and Replacement Audit Funding will be provided by a transfer from an existing project, VR-06801 Replacement of City-Wide Fuel Transaction and Inventory Management System VR-11000 Vehicle Replacement CIP, $3.2 million, has been removed as an amendment to the Proposed Budget pending further review of fleet utilization by Fleet Review Committee 51 Proposed Budget FY 2011 Questions 52 Proposed Budget FY 2011 Next Meetings June 14 – Municipal Fee Schedule, Contracts greater than $85k , Budget Wrap-up June 21 – City Council Budget Review and Public Hearing June 28 – Budget Adoption 308 City Manager’s Proposed Budget for Fiscal Years 2011 City of Palo Alto Finance Committee June 14, 2010 Budget Wrap-up 2 Balancing the Budget Proposed Budget Budget gap (revised) $(7.3 million) Proposed reductions ($ 8.5 million) Salary & Benefits $ 5.6 million Non-Salary 2.9 million New revenues, revenue increases $ 0.9 million Total recommendations $ 9.4 million Balance for Alternatives $ 2.1 million 2 3 Date Finance Committee Adjustments to Proposed Budget FY 2011($000)Department 6-May Reopen College Terrace Library in FY11 75 LIBRARY Reduce City Council general expense budget (This includes travelbudget)-17 COUNCIL 11-May Limit park fee increases (Entrance fees reduced, but staff projects same revenue)N/C COMMUNITY SERVICEDEPARTMENT Maintain Art Center support staff 61 COMMUNITY SERVICEDEPARTMENT Reinstate summer concert series 27 COMMUNITY SERVICEDEPARTMENT Reinstate HSRAP funding 50 COMMUNITY SERVICEDEPARTMENT Reinstate 1 FTE Code Enforcement Officer 122 PLANNING 18-May Reinstate school crossing guards 345 POLICE Reinstate traffic team (4 FTE, net rev)645 POLICE 25-May Children's Theatre new revenue (Show production participation fee $50-$300)-35 COMMUNITY SERVICEDEPARTMENT Restore 4 FTE tree trimmers 316 PUBLIC WORKS Restore trees planting materials 10 PUBLIC WORKS Reduce 1 FTE Supr. Project Engineer -162 PUBLIC WORKS Total of Finance Committee Adjustments $1,437 4 Date Staff Adjustments to Proposed Budget FY 2011($000)Department 6-May Labor negotiations contract services 68 HUMAN RESOURCESDEPARTMENT 11-May Full FTE elimination savings from positions being contracted out (Full year savings instead of 9 months)-273 COMMUNITYSERVICESDEPARTMENT Stanford revenue -35 ATTORNEY Temporary salaries 15 ATTORNEY 18-May IT rent lease agreement cost savings -51 ADMINISTRATIVESERVICESDEPARTMENT 25-May Correct Fiber Optic allocation expense -66 ADMINISTRATIVESERVICES DEPARTMENT Total of Staff Adjustments -342 5 Summary adjustments to the FY 2011 Proposed Budget Date Draft Adjustments to Budget FY 2011 Balance ($000) May 6 Beginning Balance $2,107 Table 1 Summary Finance Committee Adjustments -1,437 Table 2 Summary Staff Adjustments 342 June 14 Current Balance for Alternatives $1,012 6 FY 2011 Proposed Budget Date Parking Lot Items Amount ($000) Department 6-May Monday closure of library branches *Staff to review partialclosures, staffing, and calculate savings TBD LIBRARY 11-May Reduce City Attorney legal secretary (1FTE). (Attorney's Office to return with additional information on support)-117 ATTORNEY 18-May Add Police Investigators (2 FTEs)332 POLICE 25-May Sidewalk Replacement - Property owner pays 100% repaircosts 598 PUBLICWORKS Reduce Traffic Control Maintainer -89 PUBLIC WORKS 309 7 Position Changes to City Manager's Proposed Budget Reinstated (9.75 FTE) Program Assistant I (.75) Code Enforcement Officer Police Sergeant Police Agent Police Officers (2) Tree Trimming/Line Clearers (4) Additions (1 FTE) Sr. Auditor (Funded by Enterprise Funds) Elimination (1 FTE) Supervisor Project Engineer New positions withdrawn by Staff (2 FTE) Customer Service Specialist Customer Service Representative 8 Proposed Budget FY 2011 Department Changes – Parking Lot Items (General Fund) City Attorney’s Office – Proposal to reduce staff by 1.0 FTE Legal Secretary ($117,000) Attachment 10 from the City Attorney responds to proposal and recommends against the reduction in staffing City Council – (no action required) Proposal to reduce City Council salary by 10% or $720.00 per council member ($6,480) City Attorney researched matter and determined that Council may voluntarily reduce pay 9 Proposed Budget FY 2011 Questions 10 Proposed Budget FY 2011 Parking Lot Item - Monday Closure of Library Branches •Three options are provided to Monday closure of all library branches •These options assume that recommended hours approved by the Finance Committee on May 6 are in effect o College Terrace reopens in FY 2011 after completion of its renovation o Main and Mitchell Park close at 8pm instead of 9pm on Tuesday and Thursday o All libraries close on Sundays before Monday City holidays 11 Proposed Budget FY 2011 Library Department OPTION 1 Open Main, Mitchell Park, and Children’s Library at 12 pm instead of 10 am on Monday; close College Terrace on Monday Service Impacts: This option would maintain after school support at the three principal libraries. Customers who prefer to visit the library during the morning would be affected by the delayed opening. College Terrace would be open 4, instead of 5, days per week. Budget Impacts: $106,672 (restores 1.0 FTE Library Associate and 0.39 FTE hourly Clerk) 12 Proposed Budget FY 2011 Library Department OPTION 2 Open Main and Mitchell Park Libraries at 12 pm instead of 10 am on Monday; close Children’s and College Terrace Libraries on Monday Service Impacts: This would reduce service to children who use Children’s Library. Customers who prefer to visit the library during the morning would be affected by the delayed opening. College Terrace would be open 4, instead of 5, days per week. Budget Impacts: $93,063 (restores 1.0 FTE Library Associate and 0.12 FTE hourly Clerk) 310 13 Proposed Budget FY 2011 Library Department OPTION 3 Close Main and College Terrace Libraries on Monday; close Mitchell Park and Children’s Libraries on Friday Service Impacts: Has the greatest impact on users of all ages and needs. Some libraries are open every day, but the schedule could be confusing for some customers. Labor Impacts: May require a change to the SEIU MOA regarding standard work week as this schedule would not provide two days off in a row for all staff. Budget Impacts: $20,508 (restores 0.43 FTE hourly Clerk) 14 FY 2011 Library Department (Monday Schedule) Library Department (Monday Schedule) Description FY 2010 Current FY 2011 Proposed Option 1 Option 2 Option 3 Main 10am-9pm closed 12-8pm 12-8pm closed Mitchell Park 10am-9pm closed 12-8pm 12-8pm 10am - 8pm Friday (closed) Children’s 10am-6pm closed 12-6pm closed 10am-6pm Friday (closed) College Terrace Closed for renovation Reopens after completion of renovation Closed Closed Closed Total hours opened per week 211 hours 181 hours 190 hours 184 hours 171 hours % of hrs. reduced from FY 2010 N/A 14%10%13%19% Budget Impacts N/A N/A $106,672 (1.0 FTE Regular 0.39 FTE Hourly) $93,063 (1.0 FTE Reg.0.12 Hourly) $20,508 (0.43 Hourly) Estimated Savings versus FY2010 Adjusted N/A $185,055 $78,384 $91,993 $164,548 Positions Eliminated N/A 2.5 FTE Regular1.93 FTE Hourly 1.29 FTE Hourly 1.56 FTE Hourly 1.0 FTE Regular 1.93 FTE Hourly 15 Proposed Budget FY 2011 Questions 16 Proposed Budget FY 2011 Budget Wrap-Up Police Department Parking Lot Item Investigation Services Division - Elimination of 2 FTE Police Officer $331,734 Follow Up Items (page 9-10) Two Tier Parking Violation System Leaf Blower Enforcement Program –Administrative fine would increase from $100 to $210 for full cost recovery Overtime for CSD city sponsored events 17 Proposed Budget FY 2011 Questions 18 Proposed Budget FY 2011 Budget Wrap-Up Public Works Department Parking Lot Item PW9. Elimination of 1.0 FTE Traffic Control Maintainer II ($89,421) Would not be able to complete work requests from Planning Transportation Division Impacts include fabricating and placing new signs, painting new red curbs and any new legend painting along roads and assisting with placement of new traffic calming devices. 311 19 Proposed Budget FY 2011 Questions 20 Public Works – PW6: Sidewalk Repair Program Parking Lot Item CITY COSTSCENARIO (City to retain liability in all scenarios):SAVINGSScenario 1 - Property Owner is 100% responsible for repair costs.Alternative A- City administers an annual construction contract forrepairs and bills the property owner including full cost recovery forCity administration costs.$597,940 Alternative B– Property owner responsible for repair and coordinationof work. City’s involvement would be limited to the property owner notification procedures outlined in California Streets and Highways Code. $500,000 Scenario 2 - City and Property Owner share costs 50/50.City administers an annual construction contract for repairs and billsthe property owner for 50% of the costs including full cost recovery for Cityadministration.$298,8701.0 FTE Engineering Tech would be added backContract funding for sidewalk repair would be reduced by $250,000 (instead of $500,000) Will require addition of CIP project - $500,000Restoration of 1.0 FTE Engineering Tech 21 Proposed Budget FY 2011 Questions 22 Recap-Proposed 2011 Changes Follow-up Fire Department Summary of Total Net Departmental Proposed: Total Proposed Budget Balancing ActionsRevenues Increase $ 408,000Expense (Net) Reduction $ 257,412$ 665,412 Total Revenues Changes:Proposed Revenue Increase $ 408,000Net Decrease in Other Revenues (133,031)Net Revenue Increase $ 274,969 Total Expenditures Changes:Expense Reduction (Net)$ 257,412Other (Net) Salary & Benefit Increase (1,906,277)Allocated Charges (Net) Increase (192,211)Net Expense Increase ($1,841,076) 23 Proposed Budget FY 2011 Department Changes Fire Department: Budget Balancing Summary Revenues F1. Increase Transport (Ambulance) Fees by 10% $200,000 F2. Increase in Hazmat Fees by 10% 38,000 F3. Increase Permit Fees 50,000 (Proposed PAUSD - $20K and Enterprise Fund - $30K) F4. Increase Use & Occup. Permits and Tracking Fees 120,000 Proposed Revenue Increase $408,000 24 Proposed Budget FY 2011 Department Changes Fire Department (budget balancing summary cont.) Service Level Reductions F5. Elimination of Administrative AssistantSavings 1.0 FTE Regular (Retiring)$116,507 F6. Elimination of Hazardous Materials Specialist (Filled)Add Hourly Management Specialist (contract) Savings 1.0 FTE Regular (0.95 FTE in General Fund) $186,953Additions 0.48 FTE Hourly Management Specialist ( 80,000) Net Savings $106,953 312 25 Proposed Budget FY 2011 Department Changes Fire Department (budget balancing summary cont.)Service Level Reductions F7. Add Resource to Facilitate Fire Chief Retirement Transition(6 month Fire Chief vacancy savings -$138,186) Additions 0.25 FTE Hourly (One-Time) ($ 52,000) F8. Reduction in non-salary expenses $ 85,952 (i.e. Contract Svcs., Supplies, Equip., etc.) Total Proposed Budget Balancing ActionsRevenues Increase $408,000Expense (Net) Reduction $257,412$665,412 26 Proposed 2011 Changes Department Changes Fire Department Other Revenue Changes Decrease Plan Checking Fee ($ 270,000)Increase in Stanford Fire Services Reimbursement 136,969Net Decrease in Other Revenues ($133,031) Other Salary Changes Contractual Salary and Benefit Increase (1/2 year) ($ 652,158) Decrease in temporary salaries 31,131Incentive Pay Increase (EMT Certification)(9,069)Increase Workers' Compensation Charges (479,668)Increase Medicare (Employer) Contribution (12,965)Increase Retiree Health Insurance Premiums (393,311)Increase Benefit Allocation (390,237)Other (Net) Salary Increase ($1,906,277) 27 Proposed 2011 Changes Department Changes Fire Department (cont.) Citywide Changes in Allocated Charges Decr. in Information Technology Charges $ 95,076 Incr. in Vehicle Maintenance and Replacement (254,272) Incr. in Liab. Insurance & Printing/Mailing Svcs. (33,015) Allocated Charges (Net) Increase (192,211) 28 Finance Committee May 18th Direction to Staff Regarding Fire Department Proposed Budget 1) Identify departmental reductions of approximately 4% equivalent to the reductions already implemented for Management and Professional employees and the Service Employees International Union (SEIU) represented employees 2) Additional options that could be put into place if there were no minimum staffing requirements 29 1) Identify departmental reductions of approximately 4 percent FY 2011 Proposed Expense (Net) Reductions $257,412 Additional Reductions Proposed 489,772 Total Proposed Reductions $747,184 4% Departmental reduction $821,000 1a) Identify departmental reductions of approximately 4 percent Placeholder of $821,000 pending outcome of collective bargaining with International Association of Fire Fighters (IAFF) 30 313 31 2) Additional options that could be put into place if there were no minimum staffing requirements Overview of Minimum Staffing 1) State, Federal, various professional organizations (e.g. National Fire Protection Association, etc.) a. Recommend staffing levels - three Fire Fighters per unit & two per ambulance 2) City’s current contract with International Association of Fire Fighters Association (IAFF) a. Minimum of 29 fire suppression staff per shift (31 when Station # 8 is staffed) 3) Example of an alternatives model: Sunnyvale has 2 persons per unit but sent 2 two units per call 32 2) Additional options that could be put into place if there were no minimum staffing requirements Options if Minimum Staffing Requirement didn’t Exist: 1) Cross-staff specialized or dynamic deployment units 2) Placing a unit out of service on a day-to-day basis where appropriate and based on needs/demands 3) Selectively staff stations relative to low peak activity by actual call data from CAD system 4) Placing unit(s) out of service on a permanent basis and/or close fire station(s) based on demand/need where appropriate – would require a redeployment plan based on service areas/district 33 Long Term Cost Reduction Ideas (FY 2012 and Beyond) 1) Special assessment district to fund Station # 8 staffing 2) Cost-sharing of Station # 8 staffing from neighboring communities or in exchange for services 3) Shared or contract administrative functions with other fire agencies 4) Consolidations / mergers of fire agencies 5) Shared resources with other fire agencies or joint staffing 34 Proposed Budget FY 2011 Questions 35 Proposed Budget FY 2011 Department Changes Action Item 9: Internal Service Funds ASD Printing and Mailing –Staff Recommended The recommended changes will allow for proper coverage to meet required operational demands of the departments’ and Council’s operations. There is no financial impact as the funding is provided through the reduction of non-salary expenditures. Reinstate 0.48 FTE temporary hourly Print Shop Assistant position ($25,277) Reclass Mailing Services Specialist position to Offset Equipment Operator ($10,123) 36 Proposed Budget FY 2011 Budget Wrap-Up Table of Organization Proposed Staff Adjustments to Proposed Budget: 1) Management/Professional Title Changes Unknown budgetary impact 2) Correction to Management/Professional Compensation Plan Open Space and Parks Division Manager Omitted from 2008 salary resolution in error Salary and benefits impact - $6,700 (adjust FY 2010 midyear) 3) Public Works – eliminate 1 FTE Administrative Associate I instead of 1 FTE Administrative Associate III – title correction only, no financial impact 314 37 Proposed Budget FY 2011 Department Changes Water Fund –Staff Recommended The draw on the Water Fund reserves for CIP projects did not match the total proposed CIP program expenditures for the Water Fund in error. The draw on the Water Fund reserves should be increased from $8,781,000 to $8,848,000, as a correction to balance the Proposed Operating Budget to the CIP program expenditures No action Required Additional draw on reserves - $67,000 38 Proposed Budget FY 2011 Department Changes Internal Service Funds ASD: Technology Fund –Staff Recommended The draw on the Technology Fund reserves for CIP projects did not match the total proposed CIP program expenditures for the Technology Fund in error. The draw on the Technology Fund reserves should be increased from $ 3,433,000 to $3,517,000 as a correction to balance the Proposed Operating Budget to the CIP program expenditures No action Required Additional draw on reserves - $84,000 Change name of CIP project TE-11005 from “Implementation of New Utility Rates” to “Implementation of Restructure Tiered Rates on Bills (no financial impact) 39 Approval of FY 2011 Contract Scopes of Consultant Services Agreements Greater than $85,000 Purchasing Manual provides that as part of budget process, Finance Committee shall review and approve the scope of services for CIP consultants over $85,000 (excluding recurring, routine service-related agreements) Public Works/Facilities:Art Center Electrical and Mechanical Upgrades (PF-07000) Consultant cost: $200,000Project cost: $4,387,046 Public Works/Facilities:Art Center Electrical and Mechanical Upgrades (PF-07000) Consultant cost: $400,000 Project cost: $4,387,046 Planning/Transportation:El Camino Real/Stanford Avenue Streetscape and Intersection Improvements (PL 07002)Consultant cost: $150,000Project cost: $1,818,000 40 Proposed Budget FY 2011 Questions 41 Proposed Budget FY 2011 Municipal Fee Schedule Summary of all fees discussed during budget hearings Majority of changes provide for increased cost recovery Projected increases for new and existing fees - $868k New Fees - Community Services Children’s Theatre: Registration for birthday parties and show production participation, space and package rental and reservation Locker Rental Green Fee admission for Junior and NCGA Junior (restructured)Membership Card/Swim Pass (restructured)Facility Admission Vehicle entry fee/passCommunity Theatre rental and reservationAthletic Grass Fields rental and reservationCubberley Community Center Gym A facility rental (restructured), and Cubberley Banner Marquee 42 Proposed Budget FY 2011 Department Changes Municipal Fee Schedule New Fees Library Damaged and Lost Senior Care Kit CD-R (compact disc recordable) Planning & Community Environment Residential Inspection Guideline and other publications Application and Permit Reactivations Certified Access Specialist (CASp) Review/Consultation Environmental Impact Assessment (EIA) mitigated negative declaration CEQA Categorical Exemption Individual Review of Minor Revisions to approved projects Public Noticing 315 43 Proposed Budget FY 2011 Department Changes Municipal Fee Schedule New Fees Police Animal Adoption (restructured) Rat Spay City Veterinarian services Vaccinations Public Works - Refuse Demolitions (restructured) 44 Proposed Budget FY 2011 Questions 45 Proposed Budget FY 2011 Next Meetings June 21 – City Council Budget Review and Public Hearing June 28 – Budget Adoption 316 City Manager’s Proposed Budget for Fiscal Years 2011 City of Palo Alto Finance Committee June 15, 2010 Budget Wrap-up 2 Balancing the Budget Proposed Budget Budget gap (revised) $(7.3 million) Proposed reductions ($ 8.5 million) Salary & Benefits $ 5.6 million Non-Salary 2.9 million New revenues, revenue increases $ 0.9 million Total recommendations $ 9.4 million Balance for Alternatives $ 2.1 million 2 3PUBLIC WORKS-89Eliminate 1.0 FTE Traffic Control Maintainer PUBLIC WORKS299Implement 50/50 Sidewalk Replacement/Repair Program POLICE332Restore 2 FTE Police Officer Investigators LIBRARY107Library Closures – Option 1 (Open Mondays) 14-June CITY COUNCIL-2Voluntary Council Pay Reduction (reflects 3 Finance Committee members) Date Finance Committee Adjustments to Proposed Budget FY 2011($000)Department 6-May Reopen College Terrace Library in FY11 75 LIBRARY Reduce City Council general expense budget (This includes travel budget)-17 COUNCIL 11-May Limit park fee increases (Entrance fees reduced, but staff projects same revenue)N/C COMMUNITY SERVICEDEPARTMENT Maintain Art Center support staff 61 COMMUNITY SERVICEDEPARTMENT Reinstate summer concert series 27 COMMUNITY SERVICEDEPARTMENT Reinstate HSRAP funding 50 COMMUNITY SERVICEDEPARTMENT Reinstate 1 FTE Code Enforcement Officer 122 PLANNING 18-May Reinstate school crossing guards 345 POLICE Reinstate traffic team (4 FTE, net rev)645 POLICE 25-May Children's Theatre new revenue (Show production participation fee $50-$300)-35 COMMUNITY SERVICEDEPARTMENT Restore 4 FTE tree trimmers 316 PUBLIC WORKS Restore trees planting materials 10 PUBLIC WORKS Reduce 1 FTE Supr. Project Engineer -162 PUBLIC WORKS Total of Finance Committee Adjustments $2,084 4 14-June HUMAN RESOURCES49Severance Pay – Laid off employees Date Staff Adjustments to Proposed Budget FY 2011($000)Department 6-May Labor negotiations contract services 68 HUMAN RESOURCESDEPARTMENT 11-May Full FTE elimination savings from positions being contracted out(Full year savings instead of 9 months)-273 COMMUNITYSERVICESDEPARTMENT Stanford revenue -35 ATTORNEY Temporary salaries 15 ATTORNEY 18-May IT rent lease agreement cost savings -51 ADMINISTRATIVESERVICESDEPARTMENT 25-May Correct Fiber Optic allocation expense -66 ADMINISTRATIVESERVICESDEPARTMENT Planning Department – External Revenues -200 PLANNING AND COMMUNITY ENVIRONMENT Total of Staff Adjustments -493 5 Summary adjustments to the FY 2011 Proposed Budget Date Draft Adjustments to Budget FY 2011 Balance ($000) May 6 Beginning Balance $2,107 Table 1 Summary Finance Committee Adjustments -2,084 Table 2 Summary Staff Adjustments 493 June 15 Current Balance for Alternatives $516 6 Position Changes to City Manager's Proposed Budget Reinstated (13.75 FTE)Program Assistant I (.75) Code Enforcement Officer Police SergeantPolice Agent Police Officers (4) – 2 Traffic Team, 2 InvestigationsTree Trimming/Line Clearers (4)Library AssociateEngineering Tech Additions (1 FTE) Sr. Auditor (Funded by Enterprise Funds) Elimination (2 FTE) Supervisor Project EngineerTraffic Control MaintainerNew positions withdrawn by Staff (2 FTE)Customer Service Specialist (Enterprise Funds)Customer Service Representative (Enterprise Funds) 317 Proposed Budget FY 2011 Budget Wrap-Up Table of Organization Proposed Staff Adjustments to Proposed Budget: 1) Management/Professional Approve Title Changes Only Administrative Clean-up with no budget impact 2) Correction to Management/Professional Compensation Plan Administrative correction to incorporate 3.5% COLA increase previously approved by City Council but omitted from 2008 salaryresolution in error for the Open Space and Parks Division Manager position – No budget impact 3) Public Works – eliminate 1 FTE Administrative Associate I from Table of Org instead of 1 FTE Administrative Associate III – title correction only, no financial impact, budget is correct CIP – Implementation of Restructured Tiered Rates on Bills (TE-11005) Change in project description only (Attachment 5 of “At Places” memo) No budgetary impact due to change $1.1 million CIP Project (subject to UAC and Council approval) $100k – FY 2011 (to develop rate structures and scope of work) $1 million – FY 2012 In support of City’s Climate Protection Goals, new rate structures will be proposed to provide incentives for customers to conserve resources New rate structures will be evaluated to determine if additional tiers and price differentials will incentivize reduction of usage Funding source – Enterprise Funds (electric, fiber optic, gas, water, wastewater collection, storm drainage, refuse) Proposed Budget FY 2011 Budget Wrap-Up Debt Service FundsStaff Adjustment to Proposed Budget 2010 General Obligation Library Bonds - $55 millionSale of bonds closed on June 9 Debt Service Fund 370 – Library Projects createdCIP construction project already exists Budget Impact – Add Property Tax Assessment Revenue and Debt Service Payment FY 2011 Annual Debt Service (Interest expense only) $1,472,000 FY 2011 Property tax assessment revenue 3,491,539FY 2012 Annual Debt Service 3,267,719Semi-annual debt service payments due February 1 and August 1 Official Statement requires property tax assessmentto be collected in advance of debt service due dates 10 Proposed Budget FY 2011 Questions 11 Approval of FY 2011 Contract Scopes of Consultant Services Agreements Greater than $85,000 Purchasing Manual provides that as part of budget process, Finance Committee shall review and approve the scope of services for CIPconsultants over $85,000 (excluding recurring, routine service-related agreements) Public Works/Facilities:Art Center Electrical and Mechanical Upgrades (PF-07000 Scope: Architect to check compliance with design documents)Consultant cost: $200,000Project cost: $4,387,046 Public Works/Facilities:Art Center Electrical and Mechanical Upgrades (PF-07000 Scope: Construction oversight and management) Consultant cost: $400,000 Project cost: $4,387,046 Planning/Transportation:El Camino Real/Stanford Avenue Streetscape and Intersection Improvements (PL 07002 Scope: Construction oversight and management)Consultant cost: $150,000Project cost: $1,818,000 12 Proposed Budget FY 2011 Questions 318 13 Proposed Budget FY 2011 Municipal Fee Schedule Summary of all fees discussed during budget hearingsMajority of changes provide for increased cost recoveryProjected increases for new and existing fees - $668k + $200kNew Fees -Community Services Children’s Theatre: Registration for birthday parties and show production participation (recommended suspensionpending agreement with Friends of the Children’s Theatre), space and package rental and reservation Locker Rental Green Fee admission for Junior and NCGA Junior (restructured) Membership Card/Swim Pass (restructured) Vehicle entry fee/pass Community Theatre rental and reservationAthletic Grass Fields rental and reservation (restructured)Cubberley Community Center Gym A facility rental (restructured), and Cubberley Banner Marquee 14 Proposed Budget FY 2011 Department Changes Municipal Fee Schedule New Fees LibraryDamaged and Lost Senior Care KitCD-R (compact disc recordable) Planning & Community EnvironmentResidential Inspection Guideline and other publicationsApplication and Permit Reactivations Certified Access Specialist (CASp) Review/Consultation Environmental Impact Assessment (EIA) mitigated negative declarationCEQA Categorical ExemptionIndividual Review of Minor Revisions to approved projectsPublic Noticing PoliceAnimal Adoption (restructured) Rat Spay City Veterinarian servicesVaccinations 15 Proposed Budget FY 2011 Questions 16 Proposed Budget FY 2011 Next Meetings June 21 – City Council Budget Review and Public Hearing June 28 – Budget Adoption 319 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DATE: JUNE 21, 2010 REPORT TYPE: CONSENT ITEM DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT CMR: 277:10 SUBJECT: Adoption of a Mitigated Negative Declaration and approval of Site and Design Review and Record of Land Use Action for a new 11,857 square-foot single family home in the Open Space Zone District located at 805 Los Trancos Road. EXECUTIVE SUMMARY The proposal is to allow the construction of a new two-story residence on a vacant 3.5 acre creek side site in the Open Space zoning District, recommended by staff and the Planning and Transportation Commission (PTC) for approval. The development is consistent with City's Open Space development policies and regulations. RECOMMENDATION Staff and the Planning and Transportation Commission recommend that the City Council approve the following: 1. Mitigated Negative Declaration and Addendum, prepared for the proposed residential development of the property located at 805 Los Trancos Road, in accordance with the California Environmental Quality Act (Attachment B). 2. A Record of Land Use Action approving a Site and Design Review application to allow a new 11, 184-square foot two-story single family home and associated site improvements, subject to the findings and conditions of approval contained the Record of Land Use Action (Attachment A). BACKGROUND AND PROJECT DESCRIPTION The proposed two-story single-family home would have 11,184 square feet, including the garage and basement areas, and would be accessed by a private driveway from Los Trancos Road and a wood bridge over Buckeye Creek. Amenities woul~ include an 18 feet wide by 75 feet long swimming pool and landscaping improvements on the 3.5 acres undeveloped parcel of land. The driveway, to be located on the northeastern portion of the property, was originally used as to access a farm on the site. The proposed home site is a relatively flat and open area of the parcel located approximately 70 to 120 feet from the top of bank of the Los Trancos Creek and 190 feet from the top of bank of Buckeye Creek. All other elements of the development would be located at least 50 feet from the top of the Los Trancos Creek bank. Passive, landscaped open space and 1 from the top of bank of Buckeye Creek. All other elements of the development would be located at least 50 feet from the top of the Los Trancos Creek bank. Passive, landscaped open space and fencing would be installed at least 25 feet from Buckeye Creek. The applicant has worked with the City's Planning Arborist to refine the landscaping plans for several years. The application was submitted on May 7, 2004 and has been refined since then. The project has gone through several iterations and delay because of the requirement for additional technical studies and coordination with outside agencies. During the project's review process, there have been modifications and discussions in public hearings about the Open Space Zoning district development standards. However, the project is subject to the development standards in effect at the time the application was submitted. The project was reviewed by the PTC on March 24 and May 19,2010. DISCUSSION Visibility and Landscaping The primary concern raised by both the PTC and members of the public is the project's potential visibility from adjacent properties in both Palo Alto and Portola Valley. The subject site is located on a fairly level area within a valley in the hillside area adjacent to the Town of Portola Valley. Given the home's proposed location on a low point rather than on a hill and existing vegetation, visibility impacts would be minimal. To further reduce visibility, the applicant has increased landscape plantings, working closely with City staff, along with the Town of Portola Valley staff and their Planning Commission, and area residents to increase landscaping. A substantial number of trees, appropriate to the local environment, would be strategically installed around the residence, along with native trees at the project's perimeters along both Los Trancos Road and Los Trancos Creek (near Valley Oak Road) to better screen the development. Two native oak trees rather than palms, will be planted to mark the driveway entrance to the house. The grading plan reflects an increase in cuts and a reduction of fill, and has the home's finished floor located closer to the original grade of the site than what had originally been proposed. Creek Proximity The project is respectful of the site's riparian nature. The applicant, in response to PTC feedback, proposes to install a low profile wood bridge to span Buckeye Creek in lieu of the previously proposed culvert to accommodate the driveway. The bridge is designed to avoid impacting the creek while being consistent architecturally with the open space/rural nature of the site. The bridge will be approximately 4 feet 6 inches tall, 12 feet wide, and 15 feet long. The support structures for the bridge would be placed outside of the creek's banks. According to the Department of Fish and Game, no Fish and Game permits would be required because no work is being proposed within the creek banks. No activity is proposed along either the Los Trancos Creek or Buckeye Creek banks. BOARD/COMMISSION REVIEW AND RECOMMENDATIONS This project was first reviewed by the Planning and Transportation Commission (PTC) on March 24, 2010. The PTC recommended that the City Council adopt the Mitigated Negative Declaration and approve the Site and Design Review application, but required PTC consent calendar review of responses from other agencies on the Mitigated Negative Declaration and to project plan revisions proposed to address a few outstanding issues. The PTC directed the applicant to modify the grading by reducing the amount of fill and increasing the amount of cut, 2 to replace the two palm trees with more appropriate tree species, to reduce fencing, and to explore the use of a bridge instead of the originally proposed culvert for Buckeye Creek. The PTC also desired the MND public circulation to conclude so that all comments on the MND could be reviewed by the PTC and forwarded to the Council.. On May 19, 2010, the PTC approved the consent calendar item recommending the revised project as having addressed all of the PTC's requests. The changes included lowering the grade of the building pad (which resulted in a reduction in fill and an increase in cuts), replacing the two palm trees with Oak trees, and the proposal of a wooden bridge over Buckeye (;reek. Staff was also able to confirm that both the staff of both Department of Fish and Game and the Regional Water Quality Board.had no objections or comments on the MND. Both agencies agreed that the proposed project, as revised to include the. bridge would result in less than significant impacts to the environment and were supportive of the project. In addition, the Town of Portola Valley stated that they have no objections to the project because the palm trees were replaced with native oaks. The PTC reaffirmed their recommendation that the City Council adopt the Mitigated Negative Declaration and approve the Site and Design Review application. At the March 24th PTC meeting one member of the public, a resident of the adjacent Town of Portola Valley, spoke on the project. His primary concerns were about the visibility of the project and noise impacts. The applicant has consulted with the resident to increase screening and conditions of approval will require that onsite lighting will not extend beyond the property lines. POLICY IMPLICATIONS The project would comply with the Comprehensive Plan and applicable Zoning Ordinance regulations. The project is consistent with Comprehensive Plan Open Space policies and the land use designations of Streamside Open Space and Open Space/Controlled Development. The project has been designed to protect and enhance the riparian corridor and the open space character of the site, consistent with the Stream Side Open Space and Open Space land use designation policies. The Open Space/Controlled Development land use designation, which allows residential densities from 0.1 to 1 dwelling unit per acre. Although the application was also submitted prior to the adoption of P AMC Chapter 18.40.140, the. Stream Corridor Protection standards, the project was designed to meet those standards and to protect the riparian corridor. The proposed residence also meets the standards for development in the Open Space Zoning District that were applicable at the time the application was submitted in 2004. ENVIRONMENTAL REVIEW The project is subject to environmental review under provisions of the California Environmental Quality Act (CEQA). An environmental impact a~sessment was prepared for the project and staff determined that, with the implementation of mitigation measures, no potentially adverse impacts would result from the development, and therefore, the project would have a less than significant impact on the environment. The Mitigated Negative Declaration was initially made available for public review beginning February 19, 2010 through March 10, 2010 and again on March 5 to April 5, 2010. The project was subsequently revised to replace the proposed culvert with a wood bridge. Because the revised project did not result in new impacts or mitigation measures, recirculation of the document was not required even though the project description was modified. 3 ATTACHMENT A APPROVAL NO. 2010- DRAFT RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE APPROVAL FOR 805 LOS TRANCOS ROAD: SITE AND DESIGN 04IPT-2217 (Lanqenskiold Family Trust, OWNERS) 'At its meeting on June 21, 2010, the Council of the City of Palo Alto approved the Site and Design Review for modifications to residential property at 805 Los Trancos Road in the City's Open Space District ("the Property"), 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. Mark Conroe, on behalf of the Langenskiold Family Trust, property owners, has requested the City's approval for a new 11,184 square foot single family home and site improvements on the Property ("the Project.") B. Following staff review, the Planning and Transportation Commission reviewed the Project on March 24, 2010, and recommended approval on May 19, 2010. The Planning and Transportation Commissions recommendations are contained in CMR:xx:10 and the attachments to it. SECTION 2. Environmental Review The City as the lead agency for the Project has determined that the project is subject to environmental review under provisions of the California Environmental Quality Act (CEQA) under Guideline section 15070, Decision to Prepare a Negative or Mitigated Negative Declaration. An environmental impact assessment was prepared for the project and it was determined that, with the implementation of mitigation measures, no potentially adverse impacts would result from the development, therefore, the project would have a less than significant impact on the environment. The original Mi tigated Negative Declaration was made available for public review beginning February 19, 2010 through March 10, 2010. A revised Mitigated Negative Declaration was prepared, advertised and circulated for 30 days beginning March 5, 2010. The Environmental Impact Assessment and Mitigated Negative Declaration are attached in CMR: xx:10. SECTION 3. Open Space Development Criteria Section 18.28.070(0) of the Palo Alto Municipal Code (PAMC) 1 requires that the Open Space Development Criteria be used by the Planning and Transportation Commission and City Council to evaluate the proposed project. These criteria are set forth below, followed by analyses of the project's compliance with them: 1. The development should not be visually intrusi ve from public roadways and public parklands. As much as possible, development should be sited so it is hidden from view. The proposed construction would not be visible from any identified view sheds (map L-4 of the Palo Alto Comprehensive Plan). The project is located directly adjacent to Los Trancos Road, and is screeneq from Los Trancos Road by a dense canopy of existing trees and shrubs. Visibility from Los Trancos Road should be minimal. It is not expected that this project would be visible from any public parklands. 2. Development should be located away from hilltops and designed to not extend above the nearest ridge line. The proposed house would be located in a valley floor and not located near any ridges. 3. Si te and structure design should take into considera tion impacts on privacy and views of neighboring properties. Given the proposed house location at the bottom of a narrow valley, the privacy impacts from this development on neighboring residences would be minimal. Additionally, the dense perimeter screening would reduce visibility of the development from off~site to a less than significant impact. 4. Development should be clustered, or closely grouped, in relation to the area surrounding it to make it less conspicuous, minimize access roads, and reduce fragmentation of natural habitats. The proposed site improvements would all be located at one end of the existing flat meadow area to keep development at one part of the property and to maximize the distance of development from Los Trancos Road. 5. Buil t forms and landscape forms should mimic the na tural topography. Building lines should follow the lines of the terrain, and trees and bushes should appear natural from a distance. The landscape plan calls for maintaining the majority of existing natural landscaping and trees. The house would be built at existing grade, which is flat. 6. Existing trees wi th a circumference of 3? 5 inches, measured 4.5 feet above the ground level, should be preserved and integrated into the site design. Existing vegetation should be retained as much as possible. The majority of the trees on- site would be preserved. The project includes the removal of 2 three dead trees (a bay, willow, and olive tree) and remove one black walnut, two bays, and one olive tree due to location of proposed driveway location or poor condition, and re-locate eight other trees that are in or near proposed driveway or are in potential fill area. Tree #21, a coast live oak (58.5" in diameter), as listed in the Tree Survey & Appraisals prepared for the project, fell during the December 21, 2009 wind and rain storm. The fallen tree has been removed from the site. The applicant will be required to work wi th City staff, including the City Arborist, to ensure that existing trees and .landscaping are maintained and that new landscaping will be consistent with the existing and the project will be conditioned to protect existing trees that are proposed to be preserved. 7. Cut is encouraged when it is necessary for geotechnical stabili ty and to enable the development to blend into the natural topography. Fill is generally discouraged and should never be distributed within the driplines of existing trees. Locate development to minimize the need for grading. The project is located on a relatively flat meadow (with approximately 3% slope from Los Trancos Road towards Los Trancos Creek). Thus, little cut (2,050 cubic yards) or fill (880 cubic yards) would be required. No fill is proposed within the dripline of any trees. 8. To reduce the need for cut and fill and to reduce potential runoff, large, flat expanses of impervious surfaces should be avoided. There are no large expansive areas of impervious surface proposed with this project. Impervious surfaces would be mainly used for the building's concrete foundation. Permeable surfaces are proposed for the driveway. 9. Buildings should use natural materials and earth tone or subdued colors. Natural building materials in earth tones are proposed. All proposed building materials are natural with earth tone colors that would blend with the surroundings. Conditions of approval will require non-reflective roofing and window surfaces. 10. Landscaping should be native species that require little or no irrigation. Immediately adjacent to structures, fire retardant plants should be used as a fire prevention technique. The proposed landscaping incorporates a large number of native species plantings which would minimize the need for irrigation. The conditions of approval will ensure the use of fire retardant plants in the final landscape design. 3 11. Exterior lighting should be low-intensity and shielded from view so it is hot directly visible from off-site. Conditions of approval will require that lights be low-intensity and shielded from view to ensure that off-site lighting impacts are minimized. 12. Access roads should be of a rural rather than urban character. (Standard curb, gutter, and concrete sidewalk are usually inconsistent wi th the foothills environment.) The proposed driveway consists of decomposed granite and no curb, sidewalk or gutters. SECTION 4. Site and Design Review Findings 1. To ensure construction and operation of the use in a manner that will be orderly, harmonious, and compatible with existing or potential uses of adjoining or nearby sites. City standards and regulations will help to ensure that the use, or operation, of the site will be conducted in a manner that is compatible with the single-family uses located in the immediate area. During construction, it is expected that there will be temporary impacts to the area in terms of construction-related noise, dust/debris and traffic. These impacts will be offset by applicable City construction standards, such as restrictions on hours of construction, the City's noise ordinance, and the mitigation measures found in the Mitigated Negative Declaration. 2. To ensure the desirability of investment, or the conduct of business, research, or educational activities, or other authorized occupations, in the same or adjacent areas. As this site is located in, and surrounded by, single- family uses, the addition of a new single family home should not reduce the overall desirability of the immediate area. Single family homes and uses are expressly permitted in the Palo Alto Municipal Code, and can be found on other nearby open space (OS) properties, such as 810 Los Trancos Road. 3. To ensure that sound principles of environmental design and ecological balance shall be observed. This application was subj ect to an environmental impact assessment (EIA) , and it was determined that with appropriate mitigation measures, there will be no significant environmental impacts associated with the proposed development. 4. To ensure that the use will be in accord with the Palo Alto Comprehensive Plan. 4 This project will be in compliance with the intent of the Palo Alto Comprehensive Plan and applicable Open Space policies as they relate to development in the Open Space areas of the City. SECTION 5. Site and Design Approvals Granted Site and Design Approval is granted by the City Council under Palo Alto Municipal Code (PAMC) Section 18.30(G) .070 for application 04IPT-2217, subject to the conditions of approval in Section 6 of this Record. SECTION 6. Plan Approval The plans submitted for Building Permit shall be in substantial conformance with those plans prepared by Devon Construction Incorporated titled "Langenskiold Family Trust", consisting of 8 pages, submitted on January 12, 2010, and landscape plans prepared by Heacox Associates Landscape Architects titled "Langenskiold Family Trust", consisting of 2 pages, submitted on January 12, 2010, except as modified to incorporate these conditions of approval. A copy of these plans is on file in the Department of Planning and Community Development. These conditions of approval shall be printed on the cover sheet of the plan set submitted with the Building Permit application. Section 7. Indeminity To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the "indemnified parties") from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City its actual attorneys fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice. SECTION 8. Conditions of Approval Department of Planning and Community Environment Planning and Transportation Division 1. The plans submitted for Building Permit shall be in substantial conformance with plans received on April i8, 2010, except as modified to incorporate the following conditions of approval and any additional conditions placed on the project by the 5 Planning Commission or City Council. The following conditions of approval shall be printed on the cover sheet of the plan set submitted with the Building Permit application. 2. The approved building materials and color scheme shall be shown on the building permit drawings for all buildings, patios, fences, utilitarian enclosures and other landscape features. 3. Upon submittal of an application for a building permit, the applicant is required to comply with both the City's Construction & Demolition (C&D) Diversion Program (PAMC 5.24) and Green Building Program (PAMC 18.44 Tables A&B). More information and the application can be found at http://www.cityofpaloalto.org/depts/pln/green building/default.a sp and all questions concerning the City's Green Building Standards should be direct to Kristin Parineh at (650) 329-2189. 4. Any proposed exterior lighting shall be shown on the final construction drawings and shall be subject to the review and approval of the Palo Alto Planning Division. All lighting shall be minimal and shall direct light down and shield light away from the surrounding residences and open space lands. 5. All new windows and glass doors shall be of a non- reflective material. 6. If during grading and construction acti vi ties, any archaeological or human remains are encountered, construction shall cease and a qualified archaeologist shall visit the site to address the find. The Santa Clara County Medical Examiner's office shall be notified to provide proper direction on how to proceed. If any Native American resources are encountered during construction, construction shall cease immediately until a Native American descendant, appointed by the Native American Heritage Commission of the State of California, is able to evaluate the site and make further recommendations and be involved in mitigation planning. 6. Perimeter fencing shall be designed to not restrict wildlife movement through the project site. Planning Staff shall review and approve the proposed perimeter fence design prior to issuance of a building permit. ' 7. Construction of the project shall be in compliance with Chapter 9.10 (Noise) of the PAMC limiting construction between the hours of eight a.m. and six p.m. Monday -Friday, nine a.m. and six p.m. on Saturday, and construction hours prohibited Sundays and Holidays. 8. The applicant shall pay the Development Impact Fees for parks, libraries and community centers, totaling an estimated 6 $3,000, $780.00, and $269.00 respectively (at current rates, subject to annual increase) for this project. The final Development Impact Fee amount will be calculated at the time of building permit issuance. Prior to building permit submittal, the applicant shall submit a Soils Engineer report for review by the Planning Arborist and the Public Works Engineering Department describing the usefulness of the excavated bedrock as fill material and for the construction of stone landscape walls. Staff shall review this report for compliance with the Comprehensive Plan and the effect on the natural environment. 9. Prior to the submittal of Building Permit application, the applicants shall submit a proposal for semi- pervious terrace areas in detailed plans showing exactly which of the semi-pervious areas will be permeable and which of the semi- pervious areas will be impervious, such that 50% of the area will be permeable. No area represented as permeable paving in project plans dated February 23, 2010 shall be converted to impervious paving unless an equal are of impervious paving is converted to permeable paving, subj ect to the approval by the Director of Planning. 10. All native riparian vegetation within 100 feet from the top of bank shall be retained unless its removal is approved by the Director of Planning and Community Environment. Replacement planting shall be required when native riparian vegetation is approved for removal. The applicant shall work wi th the Director of Planning and Community Environment to replace invasive vegetation with native riparian species as appropriate. 11. Planting of non-native invasive plant species is not permitted. Prohibited plant material is listed in the Santa Clara Valley Water Resources Protection Collaborative User Manual Guidelines and Standards for Land Uses Near Streams. 12. Only native riparian vegetarian shall be planted between the top of the banks of a stream. 13. The fence shall be placed at least 25 feet from Buckeye Creek. The applicant shall submit revised plans prior to the submittal for a building permit. Only natural riparian vegetation shall be planted within 25 feet of the creek. 14. Nighttime lighting shall be directed away from the riparian corridor of a stream. 15. Irrigation systems shall be designed such that they do not cause soil erosion. 7 16. Tree Protection Compliance -The owner and contractor shall implement all protection and inspection schedule measures, design recommendations and construction scheduling as stated in the Tree Protection Report, and is subject to code compliance action pursuant to PAMC 8.10.080. The required protective fencing shall remain in place until final landscaping and inspection of the project. Project arborist approval must be obtained and documented in the monthly acti vi ty report sent to the Ci ty. A mandatory Monthly Tree Activity Report shall be sent monthly to the City beginning w~th the initial verification approval, using the template in the Tree Technical Manual, Addendum 11. 17. Sensitive Habitat Protection -The project site is within a rural area that generally supports iensitive habitat. As such, a mitigation measure has been incorporated into the 18. Conditions of approval which will ·ensure that sensitive lo~al species and migratory birds will not be subject to disruption by the construction of this project. Removal of any on- site trees shall be conducted between September 1 and February 1 to avoid roosting bats and nesting migratory birds. If tree removal must be conducted outside this period, a survey of the tree must be performed by a qualified biologist. Should any species be found, an exclusion zone with. a radius to be determined by proj ect biologist, but no less than 50 feet, should be established. (Mitigation Measure 0-1) 17. Prior to submittal for staff review, the plans submitted for building permit shall be reviewed by the project site arborist to verify that all the arborist's recommendations have been incorporated into the final plan set. The submittal set shall be accompanied by the project site arborist's certification letter that the plans have incorporated the following information: a. Final Tree Protection R~port (TPR) design changes and preservation measures. b. Palo Alto Tree Technical Manual Standards, Section 2.00 and PAMC 8.10.080. c. precautions. outstanding items. Itemized list of special d. Landscape and irrigation plans are consistent with CPA Tree Technical Manual, Section 5.45 and Appendix L, Landscaping under Native Oaks and PAMC 18.40.130. 18. Tree Appraisal & Security Deposit Agreement (Reference: CPA Tree Technical Manual, Section 6.25) -Four coast live oak trees are protected under the Palo Alto Municipal Code, Chapter 8.10. The four oaks are at risk from the property development project and have been appraised at the request of the 8 Community Forester. For the purposes of a security deposit agreement, the monetary market or replacement value was determined by using the most recent version of the "Guide for Plan Appraisal", in conj unction with the Species and Classification Guide for Northern California. The appraisal has been accepted by the Community Forester for inclusion in the Record of Land Use Action and Conditions of Approval for the project as follows: a. Securi ty Deposi t Agreement -Prior to grading or building permit issuance, as a condition of development approval, the applicant shall post a security deposit for the 150% of the appraised replacement value of the five (5) coast live oak trees: # 17, 18, 19, and 20, to be retained and protected.. The total amount for this project is: $46,100.00. The security may be a cash deposit, letter of credit, or surety bond and shall be filed with the Revenue Collections/Finance Department or in a form satisfactory to the City Attorney. b. Security Deposit Monitoring Program -The project sponsor shall provide to the City of Palo Al to an annual tree evaluation report prepared by the project arborist or other qualified certified arborist, assessing the condition and recommendations to correct potential tree decline for trees remain and trees planted as part of the mitigation program. The monitoring program shall end five years from date of final occupancy, unless extended due to tree mortality and replacement, in which case a new five year monitoring program and annual evaluation report for the replacement tree shall. begin. Prior to occupancy, a final report and assessment shall be submitted for City review and approval. The final report shall summarize the Tree Resources program, documenting tree or site changes to the approved plans, update status of tree health and recommend specific tree care maintenance practices for the property owner(s). The owner or project sponsor shall call for a final inspection by the Planning Division Arborist. c . Security Deposit Duration -The security deposit duration period shall be five years. Return of the security guarantee shall be subject to City approval of the final monitoring report. A tree shall be considered dead when the main leader has died back, 25% of the crown is dead or if major trunk or root damage is evident. A new tree of equal or greater appraised value shall be planted in the same area by the property owner. Landscape area and irrigation shall be readapted to provide optimum growing conditions for the replacement tree. The replacement tree that is planted shall be subj ect to a new five-year establishment and monitoring program. The project sponsor shall provide an annual tree evaluation repo~t as originally required. 9 19. Sudden Oak Death (Best Management Practices) Contractor Responsibility -To deter the potential spread of sudden oak death disease in Palo Alto, the City requires that all contractor activities and delivery vehicles perform the work according to the county and city quarantine restrictions in the attached Sudden Oak Death Best Management Practices. Violation is . subject to penalty and/or prosecution. The contractor in concert with the project site arborist shall be responsible for educational briefings of all subcontractor education of the required BMP's. contractor http://www.cityofpaloalto.org/environment/default.asp 20. Site Plan Requirements -The final Plans submitted for building permit shall include the following information and notes on the relevant plan sheets: a. Sheet T-1 Tree Protection-it's Part of the Plan (http://www.cityofpaloalt-o.org/environment/urbancanopy.asp)- Applicant shall complete the Tree Disclosure Statement. Inspections and monthly reporting by the proj ect arborist are mandatory. Applicant to check #2-7 .. b. The Tree Preservation Report (TPR) -All sheets of the TPR approved by the City, (McClenahan Consulting, LLC, dated October 19, 2009) shall be printed on numbered Sheet T-1 (T-2, T-3, etc) and added to the sheet index. c. Protective plans, irrigation plans, Tree Fencing Type -Delineate on grading site plans and utility plans, Type II fencing around Street around Protected/Designated the Tree Protection Zone Report) per instructions City Tree Technical Manual, Trees and Type I fencing trees as a bold dashed line enclosing (per . the approved Tree Preservation on Detail #605, Sheet T-1, and the Section 6.35-Site Plans. d. Site Plan Notes. Note #1 -Apply to the site plan stating, "All tree protection and inspection schedule measures, design recommendations, watering and construction scheduling shall be ·implemented in full by' owner and contractor, as stated in the Tree Protection Report on Sheet T-1 and the approved plans". Note #2. All civil plans, grading plans, irrigation plans, site plans and utility plans and relevant sheets shall include a note applying to the trees to be protected, including neighboring trees stating: "Regulated Tree--before working in this area contact the Project Site Arborist at (650-326- 8781"; Note #3. "Any work in a TPZ or around roots wi thin the Buckeye Creek Bypass Culvert/Bridge shall be conducted under the direct supervision of the project site arborist". Any variance from this procedure requires City Arborist approval, please call (650) 329-2441." Note #4. Utility plan sheets shall include the following 10 note: "Utility trenching shall not occur wi thin the TPZ of the protected tree. Contractor shall be responsible for ensuring that no trenching occurs wi thin the TPZ of the protected tree by contractors, City crews or final landscape workers. See sheet T-1 for instructions." e. Access Road Plan Submittal Details -The private driveway road connection to Los Trancos Road requiring fill and substantial elevation lift over existing tree roots to be preserved shall specify use of Biaxial Geogrid Tensar and ENGINEERED SOIL MIX (ESM). Engineered Soil Mix base material shall be utilized in specified areas to achieve normal shade tree rooting potential and maximum service life of the parking surface and curbs in parking and compacted areas. Plans and Civil Drawings shall use CPA Public Works Engineering Specifications, Section 30 and Detail #604, designate the areas of use with cross-hatch symbol. The installation of materials shall be the subject of project site arborist inspection and approval. 21. Provide the following on Landscape Plans - a. Project landscape shall be developed in substantial compliance with the Landscape Site Plan received dated 10/27/2009 with the following exceptions or additions. b. The Riparian Co~ridorfrom top of bank to the 100' mark and any disturbed area wi thin the proj ect limits to Los Trancos Road shall be applied with the Palo Alto Hydroseed Mix for Los Trancos Watershed available from planning staff. c. Provide a detailed landscape and irrigation plan with a Landscape Water Use statement, water use calculations and a statement of design intent shall be submitted for the proj~ct. A licensed landscape architect and qualified "irrigation consultant will prepare these plans, to include: i. All existing trees identified both "to be retained and removed including street trees. ii. Complete plant list indicating tree and plant species, quantity, size, and locations. iii. Irrigation schedule and plan. iv. Fence locations. v. Lighting plan with photometric data ( if applicable) . 11 vi. Trees to be retained shall be irrigated, aerated and maintained as necessary to ensure survival. vii. Automatic irrigation shall be provided to all trees. For trees, PW Detail #513 shall be included on the irrigation plans and show two bubbler heads mounted on flexible tubing placed at the edge of the root ball. Bubblers shall not be mounted inside an aeration tube. The tree irrigation system shall be connected to a separate valve from other shrubbery and ground cover, pursuant to the City's Landscape Water Efficiency Standards. viii. Landscape Plan shall ensure the backflow device is adequately obscured with the appropriate screening to minimize visibility (planted shrubbery is preferred, painted dark green, decorative boulder covering acceptable; wire cages are discouraged) . 22. Fenced enclosures shall be erected around trees to be protected to achieve three primary functions, 1) to keep the foliage canopy and branching structure clear from contact by equipment, materials and activities; 2) to preserve roots and soil conditions in an intact and non-compacted state and 3) to identify the Tree Protection Zone (TPZ) in which no soil disturbance is permitted and activities are restricted, unless otherwise approved. 23. Tree fencing shall be erected before demolition, grading or construction begins and remain in place until final inspection of the project, except for work specifically allowed in the TPZ. Work in the TPZ requires approval by the project arborist or City Arborist (in the case of work around Street Trees). The following tree preservation measures apply to all trees to be retained: • No storage of material, topsoil, vehicles or equipment shall be permitted within the tree enclosure area. • The ground under and around the tree canopy area shall not be altered. • Trees to be retained shall be irrigated, aerated and maintained as necessary to ensure survival. • Watering Schedule. All trees to be retained shall receive monthly watering as identified in the,Tree Protection Plan during all phases of construction per the City Tree Technical Manual, Section 5.45. A written log of each application of water shall be kept at the site. The City Planning Arborist shall be in receipt of this log before final inspection is requested. 24. Verification Mandatory Landscape Architect to the City. The LA of record 12 (LA) shall Inspection verify the performance measurements are achieved with a separate letter of verification to City Planning staff, in addition to owner's representative for each of the following: i. Percolation & drainage checks have been performed and are acceptable. ii. Fine grading inspection of all plantable areas has been personally inspected for tilling depth, rubble removal, soil test amendments are mixed and irrigation trenching will not cut through any tree roots. iii. Tree and Shrub Planting Specifications, including delivered stock, meets Standards in the CPA Tree Technical Manual, Section 3.30-3.50. Girdling roots and previously topped trees are subject to rejection. 23. Tree Protection Verification -Prior to demolition, grading or building permit issuance, a written verification from the contractor that the required protective fencing is in place shall be submitted to the Building Inspections Division. The fencing shall contain required warning sign and remain in place until final inspection of the project. 24. Excavation Restrictions Apply (TTM, Sec. 2.20 C & D) - Any approved grading, digging or trenching beneath a tree canopy shall be preformed using 'air-spade' method as a preference, with manual hand shovel as a backup. For utility trenching, including sewer line, roots exposed with diameter of 1.5 inches and greater shall remain intact and not be damaged. If directional boring method is used to tunnel beneath roots, then Table 2-1, Trenching and Tunneling Distance, shall be printed on the final plans. 25. Plan Changes -Revisions and/or changes to plans before or during construction shall be reviewed and responded to by the project site arborist, (McClenahan Consulting, LLC, 650-326-8781) with written letter of acceptance before submitting the revision to the city for review. 26. Conditions -All Planning Department .conditions of approvai for the project shall be printed on the second page of plans submitted for building permit. 27. Tree Protection Compliance -The owner and contractor shall implement all protection and inspection schedule measures, design recommendations and construction scheduling as stated in the TPR, and is subject to code compliance action pursuant to PAMC 8.10.080. The required protective fencing shall remain in place until final landscaping and inspection of the proj ect. Proj ect arborist approval must be obtained and documented in the monthly 13 acti vi ty report sent to the City. A mandatory Monthly Tree Activity Report shall be sent monthly to the City beginning with the initial verification approval, using the template in the Tree Technical Manual, Addendum 11. 28. Tree Damage Tree Damage, Injury Mitigation and Inspections apply to Contractor. Reporting, injury mitig~tion measures and arborist inspection schedule (1-5) apply pursuant to TTM, Section 2.20-2.30. Contractor shall be responsible, for the repair or replacement of any publicly owned or protected trees that are damaged during the course of construction, pursuant to Title 8 of the Palo Alto Municipal Code, and city Tree Technical Manual, Section 2.25. 29. General The following general tree preservation measures apply to all trees to be retained: No storage of material, topsoil, vehicles or equipment shall be permitted within the tree enclosure area. The ground under and around the tree canopy area shall not be altered. Trees to be retained shall be irrigated, aerated and maintained as necessary to ensure survival. 30. Landscape Inspection -Prior to occupancy, the Planning Department shall be in receipt of written verification that the Landscape Architect has inspected all trees, shrubs, planting and irrigation and that they are installed and functioning as specified in the approved plans. 31. Tree Inspection -Prior to occupancy, the contractor shall call for an inspection by the Proj ect Arborist. A final inspection and report by the project arborist shall evaluate all trees to be retained and protected, as indicated in the approved plans, the activity, health, welfare, mitigation remedies for injury, if any, and for the long term care of the trees for the new owner. The report shall provide written verification to the Planning Department that all trees, shrubs, planting and irrigation are installed and functioning as specified in the approved plans. The final arborist report shall be provided to the Planning Department prior to written request for temporary or final occupancy. The final report may be used to navigate the security guarantee return process, when applicable. 32. Planning Inspection Prior to final sign off, contractor or owner shall contact the city planner (650-329-2441) to inspect and verify Special Conditions relating to the conditions for structures, fixtures, colors and site plan accessories. 33. Maintenance -All landscape and trees shall be maintained, watered, fertilized, and pruned according to Best Management Practices-Pruning (ANSI A300-2001 or current 14 version) . Any vegetation that dies shall be replaced or failed automatic irrigation repaired by the current property owner within 30 days of discovery. 34. Plans submitted for building permit shall include a detailed landscape plan for both the disturbed areas of the site and the construction and access areas. The landscape plan shall specify all disturbed or compacted soil areas prepared and seeded using Palo Alto Hydroseeding Specification for the Los Trancos Watershed Area. 35. The staging, storage and parking area shall be crosshatched in a designated section in the open hill area and not in the dripline of any tree. 36. Prior to the issuance of a building permit, the applicant shall obtain and submit all required permits or letters that permits are not needed from outside agencies, including the Department of Fish and Game and the US Army Corps of Engineers, for the proposed bridge and creek work as appropriate. 37. Lighting to comply with Open Space District requirements. 38. No construction is allowed during weekends. Construction shall comply with the requirements of the PAMC. 39. During construction, the site shall be kept clear of debris on a daily basis. 40. All noise producing equipment shall be consistent with PAMC noise requirements. 41. The fire sprinkler system shall be fed through domestic water service or the swimming pool. 42. Prior to issuance of a building permit, planning staff shall review and approve of the amount of proposed lawn area. 43. The project would be subject to the City's standard conditions of approval regarding dust minimization during construction: • All active construction areas shall be watered at least twice daily. • All trucks hauling soil, sand, and loose materials shall be covered or shall retain at least two feet of freeboard. 15 • All paved access roads, parking areas, and staging areas at the construction site shall be swept and. watered daily. • Submit a plan for the recovery/recycling of demolition waste and debris before the issuance of a demolition permit. • Sweep streets daily if visible soil material is carried onto adjacent public streets. Department of Public Works Engineering Division 44. The applicant shall implement the construction techniques and erosion control measures required by the City of Palo Alto Public Works Department and requirements listed in the Geotechnical Investigation prepared by Murray Engineers, Inc. (dated September 2007) would reduce the geotechnical impacts to a less than significant level. (Mitigation Measure F-1): Such measure/s shall include: a. A grading permit will be required. Include a table on the site plan showing the quantities of cut and fill. b. The plan set must include a grading & drainage plan prepared by a licensed professional that includes existing and proposed spot elevations and drainage flow arrows to demonstrate proper drainage of the site for review and approval by the Public Works Department prior to issuance of a grading or building permit. The overland flow path of the expected periodic high-flow creek flooding should be shown on the building permit submittal drawings. Adjacent grades must slope away from the house a minimum of 2%. Downspouts and splashblocks should be shown on this plan, as well as any site drainage features such as swales, inlets and outlets. 45. The applicant shall submit construction management plan for review and approval by the Public Works Department (secured before building permit issuance) which includes the following: a. Traffic control measures during grading and construction activities, and delivery of construction materials, shall be detailed as part of the construction management plan. 46. The applicant has agreed to include the following construction management measures that will help reduce the Project's GHG emissions: a. The contractor will be required to reduce emissions through any of the following options or others that achieve 16 reduction in overall emissions: use late-model engines, low- emission diesel products or alternative fuels (e.g., Lubrizol, Puri NOx, biodisel fuel) in all heavy duty off-road equipment. b. The contractor will be required to minimize idling time for all heavy-duty equipment when not engaged in work activities, inbluding on-road haul trucks while being loaded or unloaded onsite. The contractor will also ensure proper maintenance of these construction vehicles and equipments, such as tuning up and filtering of the mufflers-of the vehicles. c. A City-approved Construction Waste program will be in place prior to start of proj ect construction. The Plan will demonstrate the diversion from landfills and recycling of all nonhazardous, salvageable and re-useable wood, metal, plastic and paper products during construction. 47. The applicant shall identify the Best Management Practices (BMP's) to be incorporated into a Storm Water Pollution Prevention Plan (SWPPP) for the project. The SWPPP shall include both temporary BMP's to be implemented during demolition and construction. 48. The City's full-sized "Pollution Prevention -It's Part of the Plan" sheet must be included in the plan set. Copies are available from Public Works at the Development Center or on our website. The following conditions shall be incorporated on this sheet:AII active construction areas shall be watered at least twice daily. a. All trucks hauling soil, sand, and loose materials shall be covered or shall retain at least two feet of freeboard. b. All paved access roads, parking areas, and staging areas at the construction site shall be swept and watered daily. c . Submit a plan for the recovery/recycling of demolition waste and debris before the issuance of a demolition permit. d. Sweep streets daily if visible soil material is carried onto adjacent public streets. 49. Prior to the issuance of a building permit, the proposed "stone wall" cited in Mr. Conroe's memo received on February 26, 2010 should be reviewed by Public Works Engineering staff to determine whether it reasonably protects the new house and swimming pool from potential flooding from the creek. 17 Fire Department 50. A fire sprinkler system shall be provided which meets the requirements of NFPA Standard No. 13, 2002 Edition. (PAMC 15.04.160) . 51. All mitigation Department to address fire incorporated into the design. measures hazards identified on this by site the must Fire be 52. Provide a 100 foot defensible space between the house and wildland interface and include a minimum 30 foot irrigated wet band around structures. 53. In areas with slopes in excess of ten percent, the driveway surface shall be engineered to provide adequate wet traction to emergency vehicles. Prior to building permit, an engineering study of the adequacy of the material chosen may be required by the Fire Department. Total impervious areas on the site shall be limited not to exceed 3.5%. Utilities Department Electrical Engineering 54. Applicant/Developer must notify Utilities Engineering (Electric) if the proposed renovation/change of use has any impact on the existing electrical service size, voltage, or location. If there are any changes, the Utilities will provide comments and/or conditions along with any applicable fees and cost estimate. Water, Gas, Wastewater Prior to Submittal for Building Permits 55. The applicant shall submit a completed Utilities Application/Load Sheet for each unit for City of Palo Alto Utilities. The applicant must provide all the information requested for utility service demands (water in g.p.m.). 56. The applicant shall submit improvement plans for utility construction. The plans must show the size and location of all underground utilities within the development and the public right of way including meters, and any other required utilities. Prior to Issuance of Building Permits 57. For contractor installed water mains or services, the applicant shall submit to the WGW engineering section of the Utilities Department two copies of the installation plans of water utilities The contractor shall also submit a complete schedule of 18 work, method of construction and the manufacture's literature on the materials to be used for approval by the utilities engineering section. The applicant's contractor will not be allowed to begin work until the improvement plan and other submittals have been approved by the water, gas and wastewater engineering section. 58. The applicant shall pay the capacity fees and connection fees associated with the installation of the new utility service/s to be installed by the City of Palo Alto Utilities. The approved relocation of services, meters, hydrants, or other facilities will be performed at the cost of the person/entity requesting the relocation. 59. Each unit, parcel or place of business shall have its own water meter shown on the plans. 60. the City of wastewater. All utility installations shall be in accordance with Palo Alto utility standards for water, gas & 61. The applicant shall submit calculations by a registered civil engineer to show that the on-site and off site water, sewer and fire systems are capable of serving the needs of the development and adjacent properties during peak flow demands. 62. The applicant shall provide temporary construction access on both sides of the creek to avoid having to impact Buckeye Creek during construction. SECTION 9. Term of Approval Site and Design Approval. In the event actual construction of the project is not commenced within two years of the date of City Council approval, the approvals shall expire and be of no further force or effect, pursuant to Palo Al to Municipal Code Section 18.30(G) .080. PASSED: AYES: NOES: ABSENT: ABSTENTIONS: 19 ATTEST: City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney PLANS AND DRAWINGS REFERENCED: APPROVED: Director of Planning and Community Environment 1. Those plans prepared by Devon Construction Incorporated titled "Langenskiold Family Trust", consisting of 8 pages, dated received on April 28, 2010, and landscape plans prepared by Heacox Associates Landscape Architects titled "Langenskiold Family Trust", dated received April 28, 2010. 20 ENVIRONMENTAL CHECKLIST FORM City of Palo Alto Department of Planning and Community Environment PROJECT DESCRIPTION 1. PROJECT TITLE 805 Los Trancos (Langenskiold Home) 805 Los Trancos Road Palo Alto, California 2. LEAD AGENCY NAME AND ADDRESS City of Palo Alto Department of Planning and Community Environment 250 Hamilton A venue Palo Alto, CA 94303 3. CONTACT PERSON AND PHONE NUMBER Elena Lee City of Palo Alto (65d) 617-3196 4. PROJECT SPONSOR'S NAME AND ADDRESS Langenskiold Family Trust Attn: Mark Conroe 1390 Market Street, #112 San Francisco, CA 94102 5. APPLICATION NUMBER 04IPT-2217 6. PROJECT LOCATION 805 Los Trancos Road Palo Alto, CA The project site is a vacant parcel of land (APN 182-36-022) located in the foothills of the Santa Cruz Mountains in the western portion of the City of Palo Alto, in the northern part of Santa Clara 805 Los Trancos Road Page 1 Mitigated Negative Declaration County, west of Interstate 280, as shown on Figure 1, Regional Map. The property is accessed via frontage onto Los Trancos Road, as shown on Figure 2, Vicinity Map. 7. GENERAL PLAN DESIGNATION: The majority of the site is designated as Streamside Open Space because of its proximity to Los Trancos Creek. A small portion of the southeastern comer of the lot is designated Open Space/Controlled Development per the Palo Alto 1998 -2010 Comprehensive Plan. 8. ZONING The 805 Los Trancos Road site is in the Open Space District (OS), regulated by the Palo Alto Municipal Code (PAMC) Chapter 18.28. The as district is intended to protect the public health, safety, and welfare; protect and preserve open space land as a limited and valuable resource; permit the reasonable use of open space lands, while at the same time preserving and protecting its inherent open space characteristics to assure its continued availability for the following: as agricultural land, scenic land, recreation land, conservation or natural resource land; for the containment of urban sprawl and the structuring of urban development; and for the retention of land in its natural or near-natural state, and to protect life and property in the community from the hazards of fire, flood, and seismic activity; and; coordinate with and carry out federal, state, regional, county, and city open space plans. Single-family uses are permitted in this zone district. 9. PROJECT DESCRIPTION The proposed project is the construction of a new two-story, 11,184 square foot single-family home (which includes the garage and basement areas) on the 154,479 square foot undeveloped site with minimal grading (2270 cubic yards of cut, 625 cubic yards of fill), an access drive from Los Trancos Road, amenities including a swimming pool, and relocation of four mature olive trees. The home is to be located on a relatively flat and open area of the site, approximately 70 to 120 feet from the Los Trancos Creek bank (top) and all other elements of the development would be located at least 50 feet from the top of bank. A natural earth berm would be constructed approximately 50 feet from the top of the Los Trancos Creek bank to protect the riparian corridor. The improvements also include construction of a 4-foot 6-inch tall by 15 feet wide dark wood bridge to allow for Buckeye Creek to continue to flow undisturbed through the site. The remainder of the creeks will be maintained undisturbed. 10. SURROUNDING LAND USES AND SETTING The 3.55 acre project site is located in the Palo Alto Foothills. The site is located in an area predominately characterized by publicly and privately owned open space. The property is bordered by Los Trancos Creek to the west and the Town of Portola Valley beyond, Los Trancos Road to the north and east, and a vacant parcel to the south. The existing site has no above grade improvements. Views from the portion of the site to be improved and constructed on are to the west towards Portola Valley. A small segment of Buckeye Creek traverses a narrow center portion of the site, which eventually connects to Los Trancos Creek offsite to the west. The creek originally ran along the southern boundary of the property to Los Trancos .Creek. However, approximately 50-80 years ago, a concrete culvert was constructed offsite southeast of the 805 Los Trancos Road Page 2 Mitigated Negative Declaration property to artificially redirect the creek, which is why the current path is considered a bypass. Buckeye Creek is both fairly shallow and narrow. It measures approximately three to five feet in width, measured to the top of bank. 11. OTHER PUBLIC AGENCIES • County of Santa Clara, Office of the County Clerk-Recorder • Santa Clara Valley Water District • Department of Fish and Game • California State Clearinghouse ENVIRONMENTAL CHECKLIST AND DISCUSSION OF IMPACTS EVALUATION OF ENVIRONMENTAL IMPACTS 1) A brief explanation is required for all answers except "No Impact" answers that are adequately supported by the information sources a lead agency cites in the parentheses following each question. [A "No Impact" answer is adequately supported if the referenced information sources show that the impact simply does not apply to projects like the one involved (e. g. the project falls outside a fault rupture zone). A "No Impact" answer should be explained where it is based on project-specific factors as well as general standards (e. g. the project will not expose sensitive receptors to pollutants, based on a project-specific screening analysis).] 2) All answers must take account of the whole action involved, including off-site as well as on-site, cumulative as well as project-level, indirect as well as direct, and construction as well as operational impacts. 3) Once the lead agency has determined that a particular physical impact may occur, then the checklist answers must indicate whether the impact is potentially significant, less than significant with mitigation, or less than significant. Potentially Significant Impact" is appropriate if there is'substantial evidence that an effect may be significant. If there are one or more "Potentially Significant Impact" entries when the determination is made, an EIR is required. 4) "(Mitigated) Negative Declaration: Less Than Significant With Mitigation Incorporated" applies where the incorporation of mitigation measures has reduced an effect from "Potentially Significant Impact" to a "Less than Significant Impact." The lead agency must describe the mitigation measures, and briefly explain how they reduce the effect to a less than significant level (mitigation measures from Section 17, "Earlier Analysis," may be cross-referenced). 5) Earlier analysis may be used where, pursuant to the tiering, program EIR, or other CEQA process, an effect has been adequately analyzed in an earlier EIR or negative declaration. Section 15063 (C)(3) (D). In this case, a brief discussion should identify the following: a) Earlier Analysis Used. Identify and state where they are available for review. b) Impacts Adequately Addressed. Identify which effects from the above checklist were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, 805 Los Trancos Road Page 3 Mitigated Negative Declaration and state whether such effects were addressed by mitigation measures based on the earlier analysis. c) Mitigation Measures. For effects that are "Less than Significant with Mitigation Measures Incorporated," describe the mitigation measures which were incorporated or refined from the earlier document and the extent to which they address site-specific conditions for the project. 6) Lead agencies are encouraged to incorporate into the checklist references to information sources for potential impacts (e.g. general plans, zoning ordinances). Reference to a previously prepared or outside document should, where appropriate, include a reference to the page or pages where the statement is substantiated. 7) Supporting Information Sources: A source list should be attached, and other sources used or individuals contacted should be cited in the discussion. 8) The explanation of each issue should identify: a) the significance criteria or threshold, if any, used to evaluate each question; and b) the mitigation measure identified, if any, to reduce the impact to less than significance. DISCUSSION OF IMPACTS The following Environmental Checklist was used to identify environmental impacts, which could occur if the proposed project is implemented. The left-hand column in the checklist lists the source(s) for the answer to each question. The sources cited are identified at the end of the checklist. Discussions of the basis for each answer and a discussion of mitigation measures that are proposed to reduce potential significant impacts are included. A. AESTHETICS Issues and Supporting Information Sources Potentially Potentially Less Than No Resources Significant Significant Significant Impact Issues Unless Impact Would the project: Mitigation Incorporated a) Substantially degrade the existing visual character or quality of the site and its surroundings? 1,5 X b) Have a substantial adverse effect on a 1,2- public view or view corridor? MapL4,5 X c) Substantially damage scenic resources, including, but not limited to, trees, rock 1,2- outcroppings, and historic buildings within MapL4 X a state scenic highway? d) Violate existing Comprehensive Plan policies regarding visual resources? 2,5 X e) Create a new source of substantial light or glare which would adversely affect day or nighttime views in the area? 1,5 X f) Substantially shadow public open space (other than public streets and adjacent sidewalks) between 9:00 a.m. and 3:00 1,5 X p.m. from September 21 to March 21? 805 Los Trancos Road Page 4 Mitigated Negative Declaration DISCUSSION: The project site is located in the northwest portion of Santa Clara County on the eastern slope of the Santa Cruz Mountains in the Palo Alto foothills. The topography of the site is relatively flat with a downward slope at roughly a 3% grade from Los Trancos Road to Los Trancos Creek. The perimeter of the site is heavily vegetated. The building would not obstruct a public view corridor and is not located within a state scenic highway. The proposal is consistent with the Comprehensive Plan relative to visual resources. The site is a single vacant parcel to be developed with a single-family home. The proposed structure will be intermittently visible through the existing foliage and trees from the adjacent Los Trancos Road. Site development will occur on the southern portion of the site, which will leave it potentially visible from the slopes located to the west of the site. Views from neighboring slopes to the east and south will be minimal, given the dense screening that will be directly adjacent to the home. The building materials have been chosen to blend with the natural surroundings. A light-colored natural stone will' be used for the base of many of the permeable areas that surround the home. Muted, natural colors have been chosen for both the siding and stucco that will constitute the majority of the wall areas that may be visible from both on and off-site. A treated and stained wood has been selected for all doors, window frames and railings that should, help reduce the reflectivity of these elements. A non-reflective roof material, Spanish style clay tiles, in keeping with the overall architectural theme of the home, has been chosen to mitigate any sun reflection that may naturally arise at given times during the daylight hours. The proposed bridge is a low scale structure that'is consistent with the rural character of the site. Other than the structure itself, very little impervious hardscape is proposed with this project. All driveway surfaces, as well as the majority of walkways and outdoor areas, are to remain either natural or will make use of permeable materials. Overall, the project will not exceed the maximum impervious area permitted in this zone district (see Section I, Land Use Planning). Substantial perimeter vegetation with trees surrounds the site and would help screen the development ,from off-site views. The majority of trees will be maintained onsite. The project also includes the planting of 26 additional trees, ground cover and shrubs that are consistent with the rural character of the area. The development of the site may result in light and glare generated from within the building and window glazing. City's standard conditions of approval will ensure the light and glare impacts of the project will be less than significant. The conditions <?f approval require the shielding of lighting such that the light does not extend beyond the site, the lighting will be directional, and the source of light is not directly visible. The project submittal includes full architectural and landscaping plans, site sections, color palette, material samples, and story poles erected on site. The project will be reviewed by the Planning and Transportation Commission and City Council to ensure that the potential aesthetic impacts will be reduced by the preservation of the natural screening features of the site. 805 Los Trancos Road Page 5 Mitigated Negative Declaration The project will be reviewed in public hearings by the Planning and Transportation Commission and by City Council to ensure that the potential aesthetic impacts will be mitigated. The project would be subject to the City's standard conditions of approval requiring new windows and glass doors to be of a non- reflective material, lighting to be minimal, directed down and shielded from the surrounding properties and open space lands and construction drawings to include any proposed exterior lighting for Planning staff review and approval prior to issuance of building permits. Mitigation Measure: None required. B. AGRICULTURAL RESOURCES In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997) prepared by the California Dept. of Conservation. as an optional model to use in assessing impacts on agriculture and farmland. Issues and Supporting Information Resources Sources Potentially Potentially Less Than No a) b) c) Significant Significant Significant Impact Would the project: Issues Unless Impact Mitigation Incorporated Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California 1,10 X Resources Agency, to non-agricultural use? Conflict with existing zoning for agricultural 1,2- use, or a Williamson Act contract? MapL9, 11 X Involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland, to non-agricultural use? 1,2 X DISCUSSION: The site is not located in a "Prime Farmland", "Unique Farmland", or "Farmland of Statewide Importance" area, as shown on the maps prepared for the Farmland Mapping and Monitoring Program of the California Resources Agency. Although the site was formerly used for agricultural uses, it is not zoned for agricultural use, and is not regulated by the Williamson Act. Mitigation Measures: None required. 805 Los Trancos Road Page 6 Mitigated Negative Declaration c. AIR QUALITY Issues and Supporting Information Resources Sources Potentially Potentially Less Than No Significant Significant Significant Impact Would the project: Issues Unless Impact Mitigation Incorporated a) Conflict with or obstruct with implementation of the applicable air quality plan (1982 Bay 1,2 X Area Air Quality Plan & 2000 Clean Air Plan)? b) Violate any air quality standard or contribute substantially to an existing or projected air 1,2 X quality violation indicated by the following: i. Direct and/or indirect operational X emissions that exceed the Bay Area Air Quality Management District (BAAQMD) criteria air pollutants of 80 pounds per day and/or 15 tons per year for nitrogen oxides (NO), reactive organic gases (ROG), and fine particulate matter of less than 10 microns in diameter (PM 10); ii. Contribute to carbon monoxide (CO) concentrations exceeding the State Ambient Air Quality Standard of nine parts per million (ppm) averaged over eight hours or 20 ppm for one hour( as demonstrated by CALlNE4 modeling, which would be performed when a) project CO emissions exceed 550 pounds per day or 100 tons per year; or b) project traffic would impact intersections or roadway links operating at Level of Service (LOS) D, E or F or would cause LOS to decline to . D, E or F; or c) project would increase traffic volumes on nearby roadways by X 10% or more)? c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non-attainment under an ....... applicable federal or state ambient air quality standard (includi,ng releasing emissions which exceed quantitative thresholds for ozone 1,2,5 X precursors) ? d) Expose sensitive receptors to substantial levels of toxic air contaminants? 1,2,12 X i. Probability of contracting cancer for the Maximally Exposed Individual (MEl) X exceeds lOin one million ii. Ground-level concentrations of non-X carcinogenic T ACs would result in a hazard index greater than one (1) for the MEl e) Create objectionable odors affecting a 805 Los Trancos Road Page 7 Mitigated Negative Declaration t) Issues and Supporting Information Resources Sources Potentially Potentially Less Than No Significant Significant Significant Impact Would the project: Issues Unless Impact Mitigation Incorporated substantial. number of people? 1 X Not implement all applicable construction emission control measures recommended in the . Bay Area Air Quality Management District 1,2,3,12 X CEQA Guidelines? DISCUSSION: The City of Palo Alto uses the Bay Area Air Quality Management District's (BAAQMD) thresholds of significance for air quality impacts, as follows: Construction Impacts: The project would involve grading, paving and landscaping which has the potential to cause localized dust related impacts resulting in increases in particulate matter (PMlO). Dust related impacts are considered potentially significant but would be minimized with the application of standard dust control· measures. Construction equipment would also emit NOx and ROC. However, in order for emissions from construction equipment to be considered significant, the project must involve the extensive use of construction equipment over a long period of time. Based on the size of the proposed project, emissions of NOx and ROC are anticipated to be less than significant. Long Term Impacts: Long-term and operational project emissions would primarily stem from motor . vehicles associated with the proposed project. The project is not expected to result in a large number of new vehicle trips as this is a single-family dwelling. Therefore, long-term air-quality impacts related to motor vehicles are expected to be less than significant. Sensitive receptors are defined as children, elderly, or ill people who can be adversely affected by air quality problems. The project is on 3.55 acres and is not immediately adjacent to dense housing or other sensitive receptors. The project is not expected to have a significant impact on air quality. The proposed project, a residential use, does not typically create objectionable odors affecting a substantial number of people. The project is not expected to create objectionable odors when the project is complete. The project would be subject to the City's standard conditions of approval regarding dust minimization during construction: • All active construction areas shall be watered at least twice daily. • All trucks hauling soil, sand, and loose materials shall be covered or shall retain at least two feet of freeboard. • All paved access roads, parking areas, and staging areas at the construction site shall be swept and watered daily. • Submit a plan for the recovery/recycling of demolition waste and debris before the issuance of a demolition permit. • Sweep streets daily if visible soil material is carried onto adjacent public streets. Mitigation Measures: None required. 805 Los Trancos Road Page 8 Mitigated Negative Declaration D. BIOLOGICAL RESOURCES Issues and Supporting Information Resources Sources Potentially Potentially Less Than No Significant Significant Significant Impact Would the project: Issues Unless Impact Mitigation Incorporated a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional 1,2-plans, policies, or regulations, or by the MapN-California Department of Fish and Game or u.s. Fish and Wildlife Service? 1,7 X b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations, including federally protected wetlands as defined by Section 404 1,2-of the Clean Water Act (including, but not MapN-limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological 1,7 X interruption, or other means? c) Interfere substantially with the movement of any native resident or migratory fish or wildlife 1,2- species or with established native resident or MapN- migratory wildlife corridors, or impede the use 1,7 X of native wildlife nursery sites? d) Conflict with any local policies or ordinances protecting biological resources, such as a tree 1,2,5,7,9 preservation policy or as defined by the City of 8,9, Palo Alto's Tree Preservation Ordinance 12,13 X (Municipal Code Section 8.10)? e) Conflict with any applicable Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, 1,2,7 X regional, or state habitat conservation plan? DISCUSSION: While no sensitive or protected species of plant or animal life have been directly observed on the site, the project site is within a rural area that generally supports sensitive habitat. As such, a mitigation measure has been included below that will ensure that sensitive local species and migratory birds will not be subject to disruption by the construction of this project. Since Los Trancos Creek is directly adjacent to and Buckeye Creek traverses the site, the project was designed to be consistent with the City of Palo Alto's Stream Corridor Protection regulations and the Comprehensive Plan Natural Environment policies. The project does not propose any development within the sensitive Los Trancos Creek riparian corridor. No changes are proposed within the banks of Buckeye Creek. 805 Los Trancos Road Page 9 Mitigated Negative Declaration There are 54 existing trees on the subject site of which fourteen are protected trees, Coast Live Oaks, pursuant to PAMC Section 8.10. None of these protected trees are proposed for removal or relocation. However, one protected oak tree, tree #21 listed in the Tree Survey & Appraisals prepared for the project, fell during the wind and rain storm the night of December 21, 2009. The tree has since been removed from the site. The project includes the removal of two dead trees (bay and willow) and seven other trees (three bay, one willow, one walnut and two olive) due to poor health and to accommodate the new driveway or other fill area. A standard condition of approval would ensure that the project meets the City's tree protection requirements. Additionally, 20 non-ornamental/non-invasive fruit trees and two Canary Island date trees will be planted near the home site in addition to some cherry, strawberry, hackberry, crepe myrtle, and fern pine trees. The following standard conditions of approval would be imposed on this project: 1. Perimeter fencing shall be designed to not restrict wildlife movement through the project site. Planning Staff shall review and approve the proposed perimeter fence design prior to issuance of a building permit. 2. New fences sh~ll be constructed a minimum of five feet landward from the top of bank. 3. All native riparian vegetation within 100 feet from the top of bank shall be retained unless its removal is approved by the Director of Planning and Community Environment. Replacement planting shall be required when native riparian vegetation is approved for removal. 4. Planting of non-native invasive plant species is not permitted. Prohibited plant material is listed in the Santa Clara Valley Water Resources Protection Collaborative's User Manual Guidelines and Standards for Land Uses Near Streams. 5. Only native riparian vegetarian shall be planted between the top of the banks of a stream. 6. Nighttime lighting shall be directed away from the riparian corridor of a stream. 7. Irrigation systems shall be designed such that they do not cause soil erosion. 8. Tree Protection Compliance -The owner and contractor shall implement all protection and inspection schedule measures, design recommendations and construction scheduling as stated in the Tree Protection Report, and is subject to code compliance action pursuant to PAMC 8.10.080. The required protective fencing shall remain in place until final landscaping and inspection of the project. Project arborist approval must be obtained and documented in the monthly activity report sent to the City. A mandatory Monthly Tree Activity Report shall be sent monthly to the City beginning with the initial verification approval, using the template in the Tree Technical Manual, Addendum 11. In addition to standard approval conditions, the following mitigation measure is proposed: Mitigation Measure D-l: Removal of anyon-site trees shall be conducted between September 1 and February 1 to avoid roosting bats and nesting migratory birds. If tree removal must be conducted outside this period, a survey of 4the tree must b~ performed by a qualified biologist. Should any species b'e found, 805 Los Trancos Road Page 10 Mitigated Negative Declaration an exclusion zone with a radius to be determined by project biologist, but no less than 50 feet, should be established. Significance after Mitigation: Less than significant. E. CULTURAL RESOURCES Issues and Supporting Information Resources Sources Potentially Potentially Less Than No a) b) c) d) e) f) Significant Significant Significant Impact Would the project: Issues Unless Impact Mitigation Incorporated Directly or indirectly destroy a local cultural resource that is recognized by City Council 1 X resolution? Cause a substantial adverse change in the significance of an archaeological resource 1,2- pursuant to 15064.5? MapL-8 X Directly or indirectly destroy a unique paleontological resource or site or unique 1,2- geologic feature? MapL-8 X Disturb any human remains, including those interred outside of formal cemeteries? 1, 2-X MapL-8 Adversely affect a historic resource listed or eligible for listing on the National and/or 1,2- California Register, or listed on the City's MapL-7 X Historic Inventory? Eliminate important examples of major periods of California history or prehistory? 1 X DISCUSSION: The Comprehensive Plan (map L-8) indicates that the site is in a moderate archaeological resource sensitivity zone. Although existing and historic development in the surrounding area nearby the site has altered the native landscape, the potential exists that now-buried Native American sites could be uncovered in future planning area construction. The City's standard condition of approval, designed to address archeological discoveries as detailed below, will redu~e this potential to less than significant. Standard Condition: If during grading and construction activities, any archaeological or human remains are encountered, construction shall cease and a qualified archaeologist shall visit the site to address the find. The Santa Clara County Medical Examiner's office shall be notified to provide proper direction on how to proceed. If any Native American Resources are encountered during construction, construction shall cease immediately until a Native American descendant, appointed by the Native American Heritage Commission of the State of California, is able to evaluate the site and make further recommendations and be involved in mitigation planning. Mitigation Measures: None required. 805 Los Trancos Road Page 11 Mitigated Negative Declaration F. GEOLOGY, SOILS AND SEISMICITY Issues and Supporting Information Resources Sources Potentially Potentially Less Than No Significant Significant Significant Impact Would the project: Issues Unless Impact Mitigation Incorporated a) Expose people or structures to potential substantial adverse effects, including the See risk of loss, injury, or death involving: below i) Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and 1,2,6,8 X Geology Special Publication 42. ii) Strong seismic ground shaking? 2- MapN-X 10,6 iii) Seismic-related ground failure, 2- including liquefaction? MapN-X 5,6 iv) Landslides? 2- MapN-X 5,6 b) Result in substantial soil erosion or the loss of topsoil? 5,12 X c) Result in substantial siltation? 5,12 X d) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on-or off-site landslide, lateral 2- spreading, subsidence, liquefaction or MapN-X collapse? 5,6 e) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building 2- Code (1994), creating substantial risks to MapN-X life or property? 5,6 f) Have soils incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers are not available for the 6,12 X disposal of waste water? g) Expose people or property to major geologic hazards that cannot be mitigated through the use of standard engineering 6,12 X design and seismic safety techniques? 805 Los Trancos Road Page 12 Mitigated Negative Declaration DISCUSSION: The site located at 805 Los Trancos Road is subject to a high potential for surface rupture (Palo Alto Comprehensive Plan, map N-5), and would be subject to violent ground shaking (map N-10). The geotechnical investigation prepared by Murray Engineers, Inc. in September 2007 details these and other hazards that have the potential to impact the development. Page 5 of the report concludes that so long as the recommendations provided in the report are incorporated, construction of the proposed single-family development should be possible. The entire state of California is in a seismically active area. According to the Comprehensive Plan the project site is not in an area that is subject to liquefaction or violent ground shaking in the event of an earthquake but is within an area subject to expansive soils and strong ground shaking. The City's required standard conditions of approval ensure that potential impacts on erosion and soil will not be significant. Project conditions of approval will require the applicant to submit a final grading and drainage plan subject to review by the Department of Public Works prior to issuance of any grading and building permits. The entire state of California is in a seismically active area and the site located in a strong seismic risk area, subject to very strong ground shaking in the event of an earthquake. Seismic ground failure, including liquefaction and subsidence or subsidence, of the land is possible, but not likely at the site. No known faults cross the project site, although a portion of the site located at the western edge of the property has shown historical occurrences of liquefaction and the potential for permanent earthquake- induced ground displacements to exist. Given these conditions, mitigation measures, detailed below, will be required to be implemented to ensure the safe construction and habitability of the site improvements. Mitigation Measures: Mitigation Measure F·l: Implementation of the construction techniques and erosion control measures required by the City of Palo Alto Public Works Department and requirements listed in the Geotechnical Investigation prepared by Murray Engineers, Inc. (dated September 2007) would reduce the geotechnical impacts to a less than significant level. Such measures include: • A grading permit will be required.' Include a table on the site plan showing the quantities of cut and fill. • The plan set must include a grading and drainage plan prepared by a licensed professional that includes existing and proposed spot elevations and drainage flow arrows to demonstrate proper drainage of the site. Adjacent grades must slope away from the house a minimum of 2%. Downspouts and splashblocks should be shown on this plan, as well as any site drainage features such as swales, inlets and outlets. Significance after Mitigation: Less than significant. 805 Los Trancos Road Page 13 Mitigated Negative Declaration G. HAZARDS AND HAZARDOUS MATERIALS Issues and Supporting Information Resources Sources Potentially Potentially Less Than No Significant Significant Significant Impact Would the project: Issues Unless Impact Mitigation Incorporated a) Create a significant hazard to the public or the environment through the routing transport, use, 5 X or disposal of hazardous materials? b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the 5 X environment? c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one-quarter mile of an existing or 1,2,5 X ~ proposed school? d) Construct a school on a property that is subject to hazards from hazardous materials 1,2 X contamination, emissions or accidental release? e) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a 1,2- result, would it create a significant hazard to MapN-9 X the public or the environment? f) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in 1,2 X the project area? g) For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working the " 1,2 X project area? h) Impair implementation of or physically interfere with an adopted emergency response 1,2- plan or emergency evacuation plan? MapN-7 X i) Expose people or structures to a significant risk of loss, injury, or death involving wildland fires, including where wildlands are adjacent to 2-urbanized areas or where residences are MapN-7 X intermixed with wildlands? j) Create a significant hazard to the public or the environment from existing hazardous materials contamination by exposing future occupants or users of the site to contamination in excess of soil and ground water cleanup goals developed 1,5,12 X for the site? 805 Los Trancos Road Page 14 Mitigated Negative Declaration DISCUSSION: The project is within a high fire danger area due to the dense vegetation in the area, and grasslands on- site. To help reduce the risk of exposure to wildland fires, standard open space conditions, detailed below, have been included requiring that the structure be sprinkled for fire protection. No known hazardous materials are currently being used, stored, or disposed of on or adjacent to the project site. In addition, the land has not been previously used for agriculture or any other operations that would require the use, storage, or disposal of hazardous materials on the site. Imposition of the City~ s standard .conditions of approval will ensure impacts are less than significant: • A fire sprinkler system shall be provided which meets the requirements of NFPA Standard No. 13,2002 Edition (PAMCI5.04.160). • Provide a 100 foot defensible space between the house and wildland interface and include a minimum 30 foot irrigated wet band around structures. • All measures identified by the Fire Department to address fire hazards on this site must be incorporated into the design. Mitigation Measures: None required. H. HYDROLOGY AND WATER QUALITY Issues and Supporting Information Resources Sources Potentially Potentially Less Than No Significant Significant Significant Impact Would the project: Issues Unless Impact Mitigation Incorporated a) Violate any water quality standards or waste discharge requirements? 5,12 X b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre-existing nearby wells would drop to 2,5-a level which would not support existing land uses or planned uses for which permits have MapN-2 X been granted)? c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial erosion or siltation on-or off-site? 1,5,6,12 X d) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of 5,6,12 X surface runoff in a manner which would result in flooding on-or off-site? e) Create or contribute runoff water which would 805 Los Trancos Road Page 15 Mitigated Negative Declaration t) g) .h) i) j) k) exceed the capacity of existing or planned storm water drainage systems or provide X substantial additional sources of polluted runoff? 5,12 Otherwise substantially degrade water quality? 5,6,12 X Place housing within a IOO-year flood hazard area as mapped on a federal Flood Hazard 1,2- Boundary or Flood Insurance Rate Map or MapN-6, other flood hazard delineation map? 12 X Place within a IOO-year flood hazard area 1,2- structures which would impede or redirect MapN-6, X flood flows? 12 Expose people or structures to a significant risk of loss, injury or death involve flooding, including flooding as a result of the failure of a 1, 2- levee or dam or being located within a IOO-year MapN-X flood hazard area? 6,8,12 Inundation by seiche, tsunami, or mudflow? 2- MapN-6, X 8 Result in stream bank instability? 5,12 X DISCUSSION: The site is predominately in Flood Zone X, which is designated as a moderate to low risk area and is not a special flood hazard zone. A small portion of the site is in Flood Zone A, a high risk area, due to the proximity of Los Trancos Creek. Areas within Flood Zone A have a 1 % annual chance of flooding. However, no structures are proposed near or within this area. Site coverage will be increased with the new home development and runoff would be higher than predevelopment runoff due to the increase in impervious surface area from an existing vacant lot. However, on-site runoff shall be surface water and downspout discharge will be directed away from the bUilding. During, grading and construction activities, storm water pollution could result. Runoff from the project site flows to the San Francisco Bat without treatment. Nonpoint source pollution is a serious problem for wildlife dependant on the waterways and for people who live near polluted streams or Baylands. Therefore, City's standard conditions of approval, incorporated as part of an approved construction management plan (secured before building permit issuance) would include the following: • Prior to submittal of plans for a building permit, the applicant shall submit a drainage plan which includes drainage patterns on site and from adjacent properties. • The applicant shall identify the Best Management Practices (BMP' s) to be incorporated into a Storm Water Pollution. Prevention Plan (SWPPP) for the project. The SWPPP shall include both temporary BMP's to be implemented during demolition and construction. Imposition of the City's standard conditions would ensure impacts will be less than significant. The project site is not located in an area of groundwater recharge, and will not deplete groundwater supplies. The project site is not in an area that is subject to seiche, tsunami, or mudflow. 805 Los Trancos Road Page 16 Mitigated Negative Declaration The project site is adjacent to Los Trancos Creek to the west and a small portion of Buckeye Creek traverses through the center of the site. No work is proposed within Los Trancos Creek or Buckeye Creek or their banks. The applicant is proposing a bridge to allow vehicles to cross over Buckeye Creek. The bridge will span across Buckeye Creek and no support structures will be placed within the creek. A condition of approval will require the applicant to obtain permits from outside agencies that regulate the watershed, including the Department of Fish and Game. The home is to be located on a relatively flat and open area of the site, approximately 70 to 120 feet from the top bank of the Los Trancos Creek and 180 feet from the top of bank of Buckeye Creek. All other elements of the development would be located at least 50 feet from the top of the Los Trancos Creek bank. Mitigation Measures: None required. I. LAND USE AND PLANNING Issues and Supporting Information Resources Sources Potentially Potentially Less Than No a) b) c) d) e) f) g) Significant Significant Significant Impact Would the project: Issues Unless Impact Mitigation Incorporated Physically divide an established community? 1,2,5 X Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal· program, or zoning ordinance) adopted 1,2,3,5 X for the purpose of avoiding or mitigating an environmental effect? Conflict with any applicable habitat conservation plan or natural community 1,2,5 X conservation plan? Substantially adversely change the type or intensity of existing or planned land use in the 1,2,5 X area? Be incompatible with adjacent land uses or with the general character of the surrounding 1,5 X area, including density and building height? Conflict with established residential, recreational, educational, religious, or scientific 1,2 X uses of an area? Convert prime' farmland, unique farmland, or farmland of statewide importance (farmland) to 1,5,10 X non-agricultural use? DISCUSSION: The Comprehe~sive Plan designation for site is designated Streamside Open Space because of its proximity to Los Trancos Creek. A very small portion of the southeast comer of the property is designated Open Space/Controlled Development. The intent of the Streamside Open Space designation is to protect the corridor of riparian vegetation along natural streams. The corridor can vary in width up to 200 feet on either side of the center line of the creek. The project has been designed to protect and enhance the riparian corridor and the project includes the construction of an earthen berm to clearly 805 Los Trancos Road Page 17 Mitigated Negative Declaration delineate and protect the riparian corridor along a 50-foot setback from the top of bank. No other work is proposed within the' riparian corridor. No buildings are proposed within the riparian corridor. The applicant has developed a planting plan that is non-invasive and compatible with the riparian and rural nature of the site. The applicant is maintaining most of the existing trees onsite. The proposed berm will help protect the corridor by defining a line between developable and undevelopable areas. Application of the maximum 200-foot open space buffer allowed under the Streamside Open Space designation would render the site undevelopable. The Comprehensive Plan provides for flexibility in the corridor width because it recognizes that conditions will vary site to site. Because the project was designed to protect and enhance the Los Trancos Creek riparian corridor, it has been deemed to be consistent with the designation. The Open Space/Controlled Development land use designation allows residential densities from 0.1 to 1 dwelling unit per acre. The site has a Zoning Designation is OS (Open Space District). Single family dwellings are a permitted use in the OS District. Adjacent surrounding land uses are residential uses on large parcels. Given the proposed design of the project, which minimizes potential effects to the surrounding uses (residential), it is compatible with all adjacent development. The project is considered consistent with Comprehensive Plan Open Space policies and the land use designation of Streamside Open Space. The proposed architectural and site changes comply with the Site and Design development regulations and conform to the Open Space zone district at the time in which the application was filed with the City. The design is consistent and compatible with applicable elements of the Palo Alto Comprehensive Plan in that the design promotes the following policies for development in the Open Space, including: Policy N- 6: Through implementation of the Site and Design process and the Open Space zone district regulations (PAMC 18.28), minimize impacts of any new development on views of the hillsides, on the open space character, and the natural ecology of the hillsides. The Comprehensive Plan Open Space Development Criteria, Policy N-7 will be used by the Planning and Transportation Commission and City Council, along with the story poles and other visual aids required in Section 18.28.070(n), to evaluate the proposed project. The project is consistent with the open space criteria as follows: • The development should not be visually intrusive from public roadways and public parklands. As much as possible, development ,should be sited so it is hidden from view. The proposed construction will not be visible from any identified view sheds (map L-4 of the Palo Alto Comprehensive Plan). The project is located directly adjacent to Los Trancos Road, and is screened from Los Trancos Road by a dense canopy of existing trees and shrubs. Visibility from Los Trancos Road should be minimal. It is not expected that this project will be visible from any public parklands. • Development should be located away from hilltops and designed to not extend above the nearest ridge line. The proposed house is located in a valley floor and is not located near any ridges. • Site and structure design should take into consideration impacts on privacy and views of neighboring properties. Given the proposed house location, at the bottom of a narrow valley, the privacy impacts from this development on neighboring residences will be minimal. Additionally, the dense perimeter screening will reduce visibility of the development from off-site to a less than significant impact. 805 Los Trancos Road Page 18 Mitigated Negative Declaration • Development should be clustered, or closely grouped, in relation to the area surrounding it to make it less conspicuous, minimize access roads, and reduce fragmentation of natural habitats. The proposed site improvements are all located at one end of the existing flat meadow area to both keep development at one part of the property and to maximize the distance of development from Los Trancos Road. • Built forms and landscape forms should mimic the natural topography. Building lines should follow the lines of the terrain, and trees and bushes should appear natural from a distance. The landscape plan calls for leaving the majority of existing natural landscaping and trees. The house will be built at existing grade, which is flat. • Existing trees with a circumference of 37.5 inches, measured 4.5 feet above the ground level, should be preserved and integrated into the site design. Existing vegetation should be retained as much as possible. The majority of the trees on-site would be preserved. The tree survey prepared for the site found 54 trees onsite, including fourteen protected trees. One protected oak tree (Tree #21) fell during a storm in December 21,2009 and was removed from the site. But no protected trees are proposed for removal. The applicant proposes to remove two dead trees (bay and willow) and seven other trees (three bay, one willow, one walnut and two olive) due to poor health and to accommodate the new driveway or other fill area. Eight other trees that are in or near proposed driveway or are in potential fill area are proposed to be relocated onsite. The fallen tree has been removed from the site. A standard condition of approval requires the applicant to work with City staff, including the City Arborist, to ensure that existing trees and landscaping are maintained and that new landscaping will be consistent with the existing and the project will be conditioned to protect existing trees that are proposed to be preserved. • Cut is encouraged when it is necessary for geotechnical stability and to enable the development to blend into the natural topography. Fill is generally discouraged and should never be distributed within the driplines of existing trees. Locate development to minimize the need for grading. The project is located on a relatively flat meadow (with approximately 3% slope from Los Trancos Road towards Los Trancos Creek). Thus, very little cut (5 cubic yards) or fill (625 cubic yards) will be required. No fill is proposed within the dripline of any trees. • To reduce the need for cut and fill and to reduce potential runoff, large, flat expanses of impervious surfaces should be avoided. There are no large expansive areas of impervious surface proposed with this project. Impervious surfaces will be mainly used for the building's concrete foundation. Permeable surfaces are proposed for the driveway. • Buildings should use natural materials and earth tone or subdued colors. Natural building materials in earth tones are proposed. All proposed building materials are natural with earth tone colors that will blend with the surroundings. Conditions of approval will require non~reflective roofing and window surfaces. 805 Los Trancos Road Page 19 Mitigated Negative Declaration • Landscaping should be native species that require little or no irrigation. Immediately adjacent to structures, fire retardant plants should be used as a fire prevention technique. The proposed landscaping incorporates a large number of nati ve species plantings which will minimize the need for irrigation. The conditions of approval will ensure the use of fire retardant plants in the final landscape design. • Exterior lighting should be low-intensity and shielded from view so it is not directly visible from off-site. The exterior lighting will be reviewed by staff, the Planning & Transportation Commission and City Council to ensure that off-site lighting impacts are minimized. • Access roads should be of a rural rather than urban character. (Standard curb, gutter, and concrete sidewalk are usually inconsistent with the foothills environment.) The proposed driveway consists of decomposed granite and no curb, sidewalk or gutters. Impervious Coverage: Section 18.28.050 of the Palo Alto Municipal Code (PAMC) limits impervious area and building coverage in the OS zone district to 3.5% of the project site. The project site is 154,479 square feet allowing for 5,407 square feet of impervious area. The impervious coverage of the existing residence including the driveway is as follows: Existing Coverage: Vacant Site o square feet The new project would add the following impervious area to the site: New Coverage: Footprint Hardscape Total 5,177 square feet 230 square feet 5,407 square feet The project as proposed meets all applicable zoning and comprehensive plan regulation, and will thus have no impact. Although the project has less than a 100 setback from Los Trancos Creek and Buckeye Creek, the project is providing measures to protect and enhance the creeks, consistent with the intent of the Comprehensive Plan program N7. The project proposes an earth berm to protect the riparian corridor along Los Trancos Creek, maintaining a minimum 50 feet of undisturbed riparian corridor. Standard conditions of approval would require the applicant to work with the City to replace invasive species with native plants and provide a 25 feet protective area adjacent to Buckeye Creek, to ensure that the creeks would be adequately protected. The applicant will also be required as a condition of approval to obtain all the required permits from all applicable agencies for any work proposed for the creek and/or riparian corridor. Mitigation Measures: None required. 805 Los Trancos Road Page 20 Mitigated Negative Declaration J. MINERAL RESOURCES Issues and Supporting Information Resources Sources Potentially Potentially Less Than No Impact Significant Significant Significant Would the project: Issues Unless Impact Mitigation Incorporated a) Result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the state? 1,2 X b) Result in the loss of availability of a locally- important mineral resource recovery site delineated on a local general plan, specific plan 1,2 X or other land use plan? DISCUSSION: The City of Palo Alto has been classified by the California Department of Conservation (DOC), Division of Mines and Geology (DMG) as a Mineral Resource Zone 1 (MRZ-1). This designation signifies that there are no aggregate resources in the area. The DMG has not classified the City for other resources. The 2010 Comprehensive Plan does not identify locally or regionally valuable mineral resources within the City of Palo Alto. Mitigation Measures: None required. K. NOISE Issues and Supporting Information Resources Sources Potentially Potentially Less Than No Impact Significant Significant Significant Would the project: Issues Unless Impact Mitigation Incorporated a) Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, or 1,2,5 X applicable standards of other agencies? b) Exposure of persons to or generation of excessive ground borne vibrations or ground 1,5 X borne noise levels? c) A substantial permanent increase in ambient noise levels in the project vicinity above levels 1,5 X existing without the proje~t? d) A substantial temporary or periodic increase in ambient noise levels in the project vicinity 1,3,5 X above levels existing without the project? e) For a project located within an airport land use plan or, where such a plan has not been adopted, would the project expose people residing or working in the project area to 1,2 X excessive noise levels? " f) For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excessive noise levels? 1,2 X 805 Los Trancos Road Page 21 Mitigated Negative Declaration Issues and Supporting Information Resources Sources Potentially Potentially Less Than No Impact g) h) i)- j) k) 1) Significant Significant Significant Would the project: Issues Unless Impact Mitigation Incorporated Cause the average 24 hour noise level (Ldn) to increase by 5.0 decibels (dB) or more in an existing residential area, even if the Ldn would 1,5 X remain below 60 dB? Cause the Ldn to increase by 3.0 dB or more in an existing residential area, thereby causing the 1,5 X Ldn in the area to exceed 60 dB? Cause an increase of 3.0 dB or more in an existing residential area where the Ldn 1,5 X currently exceeds 60 dB? Result in indoor noise levels for residential development to exceed an Ldn of 45 dB? 1,5 X Result in instantaneous noise levels of greater than 50 dB in bedrooms or 55 dB in other 1,2-Map rooms in areas with an exterior Ldn of 60 dB or N3,5 X greater? Generate construction noise exceeding the daytime background Leg at sensitive receptors 1,5 X by 10 dBA or more? DISCUSSION: The project site is located within a rural area and is not adjacent to any urban noise sources. The proposed project, once completed, would not increase existing noise levels over the established thresholds of the area. In addition, the area is not within any public or private airport zone. Construction of the project will result in temporary increases in local ambient noise levels. Typical noise sources would include mechanical equipment associated with excavation, grading and construction of the home, which will be short term in duration. Once completed, long term noise associated with the new residence would be within acceptable noise limits and no impacts are anticipated. Proper implementation of and compliance with Chapter 9.10 (Noise) of the PAMC (limiting construction between the hours of eight a.m. and six p.m. Monday - Friday, nine a.m. and six p.m. on Saturday, and construction hours prohibited Sundays and Holidays would reduce construction-related noise impacts to less than significant levels. The project would be subject to the City's standard conditions of approval regarding noise. The project site is not located within an airport land use plan or within the vicinity of a private airstrip. The location of the project within a rural area, set back from Los Trancos Creek and Los Trancos Road, should prevent construction noise from exceeding nuisance levels. Project related traffic would not cause a noticeable increase in noise on any public street over what is currently experienced, especially on Los Trancos Road or on nearby Alpine Drive which would be the most likely access road to Los Trancos Road from nearby Interstate 280. Mitigation Measure: None required. 805 Los Trancos Road Page 22 Mitigated Negative Declaration L. POPULATION AND HOUSING Issues and Supporting Information Resources Sources Potentially Potentially Less Than No Impact a) b) c) d) e) Significant Significant Significant Would the project: Issues Unless Impact Mitigation Incorporated Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other 1,2,5 X infrastructure) ? Displace substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere? 1,5 X Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere? 1,5 X Create a substantial imbalance between employed residents and jobs? 1,2 X Cumulatively exceed regional or local population projections? 1,2 X DISCUSSION: The project will add a single-family home to a vacant lot. State Housing Element law requires that localities provide their "fair share" of the region's housing needs. The Association of Bay Area Governments (ABAG) has determined that Palo Alto will need to add significant numbers of housing units to meet State Law and to help reduce the imbalance between jobs and housing. This project, which involves the addition of a single-family housing unit, will have a slightly positive effect on both the City's jobs and housing imbalance and on density. The proposed residence will be occupied by the applicant of record. This project is expected to have a less than significant impact, and is supported by the City of Palo Alto Comprehensive Plan, Policy H-2: . "Policy H-2: Identify and implement a variety of strategies to increase housing density and diversity in appropriate locations. Emphasize and encourage the development of affordable and attainable housing. " The expansion of infrastructure to this site will not induce substantial growth in the project area because it is limited by current zoning. Mitigation Measures: None required. 805 Los Trancos Road Page 23 Mitigated Negative Declaration M. PUBLIC SERVICES Issues and Supporting Information Resources Sources Potentially Potentially Less Than No Impact a) Significant Significant Significant Would the project: Issues Unless Impact Mitigation Incorporated Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: Fire protection? 1,2,12 X Police protection? 1,2 X Schools? Parks? 1,2 X Other public facilities? 1,2 X 1,2 X DISCUSSION: Adherence to codes will minimize the potential damage and risk from fire and other hazards. The proposed project would not impact fire service to the area as the police and fire departments have sufficient resources to accommodate moderate growth within the City. The conditions of approval for the project contain requirements to address all fire prevention measures. No significant demand for school services would result from the project, which is not expected to generate a substantial increase in Palo Alto's residential population due to the fact that only one single family residence is proposed. No significant direct demand for additional parks would result from the project, which is not expected to generate a substantial increase in Palo Alto's residential population. Mitigation Measures: None required. N. RECREATION Issues and Supporting Information Resources Sources Potentially Potentially Less Than No Impact Significant Significant Significant Would the project: Issues Unless Impact Mitigation Incor_porated a) Would the project increase the use of existing neighborhood and regional parks or 805 Los Trancos Road Page 24 Mitigated Negative Declaration Issues and Supporting Information Resources Sources Potentially Potentially Less Than No Impact b) Significant Significant Significant Would the project: Issues Unless Impact Mitigation Incorporated other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? 1,2,3,12 X Does the project include recreational facilities or require the construction or expansion of recreational facilities which might have an adverse physical effect on the 1,2,3 X environment? DISCUSSION: Adding a single family residence as proposed to a substantially open and flat Open Space lot should have a less than significant impact on existing parks, nor include or require the construction of recreational facilities. Furthermore, the undeveloped portions of the property would remain as private open space. To help ensure that the impacts of the additional residential unit to the City's housing stock will be less than significant, the City collects Development Impact Fees for parks, libraries and community centers, totaling an estimated $3,000, $780.00, and $269.00 respectively (at current rates, subject to annual increase). The final Development Impact Fee amount will be calculated at the time of building permit issuance. As these fees are standard with any increase in density, and will apply here, no project specific mitigation is required. Mitigation Measures: None required. o. TRANSPORTATION AND TRAFFIC Issues and Supporting Information Resources Sources Potentially Potentially Less Than No Impact Significant Significant Significant Would the project: Issues Unless Impact Mitigation Incorporated a) Cause an increase in traffic which is substantial in relation to the existing traffic load and capacity of the street system (i.e., result in a substantial increase in either the number of vehicle trips, the volume to capacity ratio on roads, or congestion at 1,5 X intersections) ? b) Exceed, either individually or cumulatively, a level of service standard established by the county congestion management agency for 1,5 X designated roads or highways? c) Result in change in air traffic patterns, including either an increase in traffic levels or a change in location that results in 1,5 X 805 Los Trancos Road Page 25 Mitigated Negative Declaration substantial safety risks? d) Substantially increase hazards due to a design feature (e.g., sharp curves or dangerous intersections) or incompatible 1,5,12 X uses (e.g., farm equipment)? e) Result in inadequate emergency access? 1,5,12 X t) Result in inadequate parking capacity? 1,5,12 X g) Conflict with adopted policies, plans, or programs supporting alternative transportation (e.g., pedestrian, transit & 1,2,12 X bicycle facilities)? h) Cause a local (City of Palo Alto) intersection to deteriorate below Level of Service (LOS) D and cause an increase in the average stopped delay for the critical movements by four seconds or more and the critical 1,5 X volume/capacity ratio (V /C) value to increase by 0.01 or more? i) Cause a local intersection already operating at LOS E or F to deteriorate in the average stopped delay for the critical movements by 5,12 X four seconds or more? j) Cause a regional intersection to deteriorate from an LOS E or better to LOS F or cause critical movement delay at such an intersection already operating at LOS F to increase by four seconds or more and the 5,12 X critical VIC value to increase by 0.01 or more? k) Cause a freeway segment to operate at LOS F or contribute traffic in excess of 1 % of segment capacity to a freeway segment 5,12 X already operating at LOS F? 1) Cause any change in traffic that would increase the Traffic Infusion on Residential 12 X Environment (TIRE) index by 0.1 or more? m) Cause queuing impacts based on a comparative analysis between the design queue length and the available queue storage capacity? Queuing impacts include, but are not limited to, spillback queues at project access locations; queues at turn lanes at intersections that block through traffic; queues at lane drops; queues at one 5,12 X intersection that extend back to impact other intersections, and spillback queues on ramps. n) Impede the development or function of 1,2,5 X planned pedestrian or bicycle facilities? 0) Impede the operation of a transit system as a 1,2,5 X result of congestion? p) Create an operational safety hazard? 5,12 X 805 Los Trancos Road Page 26 Mitigated Negative Declaration DISCUSSION: The project site is not located on a designated emergency route. Given the location of the site in a rural area, emergency access is limited. The proposed new single-family home will be accessed via a dedicated driveway from Los Trancos Road that will be built to accommodate emergency vehicles. While the new dedicated driveway will add to those already located on Los Trancos Road, it will have a less than significant impact on existing traffic conditions. The project will not generate air or significant new automobile traffic and will not cause or contribute to known traffic hazards. Construction of the proposed project will add truck trips to haul excavated materials off site, and construction crews and equipment will also increase the daily trips on Los Trancos Road and Alpine Road. Thus, construction of the project would result in localized congestion due to truck traffic associated with construction. The applicant has indicated that there would be an estimate total of 150 construction trips over the 18 month construction period. However, construction traffic impacts would be temporary and are anticipated to not substantially disrupt peak traffic hours which would result in a less than significant impact. Conditions of approval for standard traffic control measures, incorporated as part of an approved construction management plan (secured before building permit issuance) would include the following in order to minimize temporary traffic congestion during grading and construction activities: Mitigation Measures: None required. P. UTILITIES AND SERVICE SYSTEMS Issues and Supporting Information Resources Sources Potentially Potentially Less Than No Impact Significant Significant Significant Would the project: Issues Unless Impact Mitigation Incorporated a) Exceed wastewater treatment requirements of the applicable Regional Water Quality 5,12 X Control Board? b) Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant 5,12 X environmental effects? c) Require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental 5,12 X effects? d) Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or expanded 5,12 X entitlements needed? e) Result in a determination by the wastewater treatment provider which serves or may 805 Los Trancos Road Page 27 Mitigated Negative Declaration Issues and Supporting Information Resources Sources Potentially Potentially Less Than No Impact f) g) h) Significant Significant Significant Would the project: Issues Unless Impact Mitigation Incorporated serve the project that it has inadequate capacity to serve the project's projected demand in addition to the provider's existing 12 X commitments? Be served by a landfill with sufficient permitted capacity to accommodate the 12 X project's solid waste disposal needs? Comply with federal, state, and local statutes X and regulations related to solid waste? 12 Result in a substantial physical deterioration of a public facility due to increased use as a 12 X result of the project? DISCUSSION: The proposed residential project would not significantly increase the demand on existing utilities and service systems, or use resources in a wasteful or inefficient manner. Standard conditions of approval require the applicant to submit calculations by a registered civil engineer to show that the on-site and off site water, sewer and fire systems are capable of serving the needs of the development and adjacent properties during peak flow demands. Trash and recycling facilities that currently serve the existing single-family residences in the area will be used by the proposed dwelling, which would not be expected to cause a significant impact. Mitigation Measures: None required. Q. MANDATORY FINDINGS OF SIGNIFICANCE Issues and Supporting Information Resources Sources Potentially Potentially Less Than No Impact Significant Significant Significant Would the project: Issues Unless Impact Mitigation Incorporated a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal 1,2,5,11 X or eliminate important examples of the major periods of California history or prehistory? b) Does the project have impacts that are individually limited, but cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, 1,2,5 X 805 Los Trancos Road Page 28 Mitigated Negative Declaration Issues and Supporting Information Resources Sources Potentially Potentially Less Than No Impact Significant Significant Significant Would the project: Issues Unless Impact Mitigation Incorporated the effects of other current projects, and the effects of probable future projects)? c) Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or 1,5,12 X indirectly? DISCUSSION: The proposed new residence will not substantially degrade the surrounding environment, impact protected trees, impact wildlife species or their habitat, or eliminate important examples of cultural history or pre-history. The project would create less than significant impacts on the quality of the environment. When considered with other current projects and reasonably foreseeable future projects, the project is not anticipated to result in cumulatively significant impacts. Global Climate Change Impacts: The potential effect of greenhouse gas (GHG) emissions on global climate change is an emerging issue that warrants discussion under CEQA. Unlike the pollutants discussed previously that may have regional and local effects, greenhouse gases have the potential to cause global changes in the environment. In addition, greenhouse gas emissions do not directly produce a localized impact, but may cause an indirect impact if the local climate is adversely changed by its cumulative contribution to a change in global climate. Individual projects contribute relatively small amounts of greenhouse gases that when added to all other greenhouse gas producing activities around the world result in increases in these emissions that have led many to conclude is changing the global climate. However, no threshold has been established for what would constitute a cumulatively considerable increase in greenhouse gases for individual development projects. The State of California has taken several actions that help to address potential global climate change impacts. Although not originally intended to reduce greenhouse gas emissions, California Code of Regulations Title 2 re4 Part 6: California's Energy Efficiency Standards for Residential and Nonresidential Buildings, was first established in 1978 in response to a legislative mandate to reduce ·California's energy consumption. The standards are updated periodically to allow consideration and possible incorporation of new energy efficiency technologies and methods. In 2006, the California State Legislature adopted AB 32, the California Global Warming Solutions Act of 2006. AB 32 describes how global climate change will impact the environment in California. The impacts described in AB 32 include changing sea l~vels, changes in snow pack and availability of potable water, changes in storm flows and flood inundation zones, and other impacts. The list of impacts included in AB 32 may be considered substantial evidence of environmental impacts requiring analysis in CEQA documents. AB 32 focuses on reducing GHG in California. The GHG emissions reductions found in AB 32 and Executive Order S-3-05, signed in June 2005, are consistent with the climate stabilization models produced by the International Panel on Climate Change (IPCC). These climate stabilization models show that if GHG emissions are reduced to the levels shown in Executive Order S-3- OS, the climate will stabilize at approximately a 2 degree Celsius rise, averting the worst impacts associated with global climate change. GHG as defined under AB 32 include: carbon dioxide, methane, 805 Los Trancos Road Page 29 Mitigated Negative Declaration nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride. AB 32 requires the CARB, the State agency charged with regulating statewide air quality, to adopt rules and regulations that would achieve greenhouse gas emissions equivalent to statewide levels in 1990 by 2020. In June 2008, the California's Office of Planning and Research (OPR) issued an interim Technical Advisory on the role of CEQA in addressing climate change and OHOs. As part of the advisory, OPR asked the California Air Resources Board (ARB) staff to recommend a method for setting statewide thresholds of significance for OHG emissions, to encourage consistency and uniformity in the CEQ A analysis for OHG emissions throughout the state. ARB is currently developing recommended statewide interim thresholds of significance for GHGs that may be adopted by local agencies for their own use. On October 24, 2008, ARB released the Preliminary Draft Staff Proposal on the Recommended Approaches for Setting Interim Significance Thresholds for Greenhouse Gases under the California Environmental Quality Act. The proposal, which is currently undergoing public review, focuses on common project types that, collectively, are responsible for substantial GRG emissions -specifically, industrial, residential, and commercial projects. The report proposes a quantitative threshold of 7,000 metric tons of C02 equivalent per year (MTC02e/year) for operational emissions (excluding transportation) associated with industrial projects, and performance· standards for construction and transportation emissions. ARB staff intends to make its final recommendations on thresholds in 2009, but currently no quantitative, significant criterion has been adopted for determining impact significance. According to the OPR interim Technical Advisory, in the absence of clearly defined thresholds for GHO emissions, CEQ A requires that lead agencies disclose and mitigate such emissions to the extent feasible whenever the lead agency determines that the project contributes to a significant, cumulative climate change impact. The advisory recommends identifying and quantifying, to the extent possible, GHG emissions, assessing the significance of the impact, and identifying alternatives or mitigation measures to reduce impact significance, as appropriate. In the absence of adopted significance thresholds for GHG emissions, the following discussion is provided to disclose qualitatively the potential effects of the proposed project (from both construction and operation) on global climate change. The project would generate GHGs during construction and ongoing operations. During construction, the operation of heavy construction equipment would be the primary source of GHGs. However, these emissions would in effect be temporary, for approximately 18 months, and would cease upon completion of construction. For that reason and given the relatively small-scale of construction, the project is not expected to result in a net increase in GHG emissions that would significantly delay or hinder the State's ability to meet the reduction targets contained in California Governor's Executive Order S-3-05 and the impact is considered less than significant. The applicant has agreed to include the following construction management measures that will help reduce the Project's GHG emissions: a. The contractor will be required to reduce emissions through any of the following options or others that achieve reduction in overall emissions: use late-model engines, low-emission diesel products or alternative fuels (e.g., Lubrizol, Puri NOx, biodisel fuel) in all heavy duty off-road equipment. b. The contractor will be required to minimize idling time for all heavy-duty equipment when not engaged in work activities, including on-road haul trucks while being loaded or unloaded onsite. The contractor will also ensure proper maintenance of these construction vehicles and equipments, such as tuning up and filtering of the mufflers of the vehicles. c. A City-approved Construction Waste program will be in place prior to start of project construction. The Plan will demonstrate the diversion from landfills and recycling of all 805 Los Trancos Road Page 30 Mitigated Negative Declaration nonhazardous, salvageable and re-useable wood, metal, plastic and paper products during construction. The project will be constructed of all new products, many of which will have high-recycled-material content. Construction materials and products will be delivered to the site by trucks via designated truck routes. Following construction the use of the new building is expected to generate minor quantities of GHG emissions over the long-term. The primary sources of ORG emissions would be associated with vehicle trips of occupants of the new home and their guests. Given the overwhelming scope of global climate change, it is not anticipated that a single development project would have an individually discernable effect on global climate change (e.g., that any increase in global temperature or rise in sea level could be attributed to the emissions resulting from one single development project). Rather, it is more appropriate to conclude that the greenhouse gas emissions generated by the proposed project would combine with emissions across the state, nation, and globe to cumulatively contribute to global climate change. In an effort to make a good faith effort at disclosing environmental impacts and to conform with the CEQ A Guidelines [§16064(b)], it is the City's position that, based on the nature and size of this project, and the proposed measures to reduce ORO emissions, the proposed project would not impede the state's ability to reach the emission reduction limits/standards set forth by the State of California by Executive Order S-3-05 and AB 32. For these reasons, this project would not make a cumulatively considerable contribution to global climate change associated with greenhouse gas emissions. As such, impacts are considered less than significant. SOURCE REFERENCES 1. Project Planner's knowledge of the site and the proposed project 2. Palo Alto Comprehensive Plan, 1998-2010 3. Palo Alto Municipal Code, Title 18 -Zoning Ordinance 4. Uniform Building Code (UBC) Standards 5. Project Plans, Devcon Construction Inc., submitted on October 9, 2007 6. Geotechnical Investigation for Langenskiold Residence, 805 Los Trancos Road, prepared by Murray Engineers, Inc., September 2007 7. Biotic Study, prepared by WRA Environmental Consultants, May 27, 2008 8. Alquist-Priolo Earthquake Fault Zone Map 9. Palo Alto Tree Technical Manual, Municipal Code Chapter 8.10.030, June 2001 10. Important Farmland in California Map, California Department of Conservation, Division of Land Resource Protection, Farmland Mapping and Monitoring Program, 2004 11. Agricultural Preserves Map, California Department of Conservation, Division of Land Resources 12. City of Palo Alto Departmental Review. 13. Tree Survey & Appraisals, prepared by McClenahan Consulting, LLC, September 8, 2008 and as amended, October 19,2009 805 Los Trancos Road Page 31 Mitigated Negative Declaration ATTACHMENT D Page 10f2 Lee, Elena From: Mark Conroe [mark@presidiodp.com] Tuesday, May 11,2010 11 :21 AM Lee, Elena Sent: To: Subject: 805 Los Trancos Road: Follow up to March 24 Planning Commission meeting Importance: High Dear Elena, On March 24th the Planning Commission unanimously approved our proposed project at 805 Los Trancos Road subject to having us address a few issues/questions and then return on their Consent Calendar. As you know, we have been working continuously over the past six weeks to a~dress all issues/questions raised during that meeting. We believe that the current plans reflect all changes requested by the Planning Commission, City Staff and others (such as the Town of Portola Valley). For the sake of completeness, I have summarized each of the questions/issues raised and specify how we have addressed them. Before addressing the detailed issues, let me say that our approach over the past six weeks (as well as before) has been to listen carefully to the issue raised and to modify the project to address the issue; we believe that this results in the best possible project. For example, we were very pleased to get an email yesterday from George Mader (the Town of Portola Valley's principal planner) who expressed his appreciation regarding our cooperative attitude towards the Town regarding issues they raised (his exact words: "You have been extremely cooperative"). Here are the issues which we identified during the March 24 Planning Commission meeting and how we have addressed them (with such changes being reflected in the updated plans provided to you): 1. Bridge over Buckeye Creek: The Planning Commission asked that we work with City Staff and the Department of Fish & Game to determine whether the proposed culvert was the best solution for the driveway crossing over Buckeye Creek. In coordination with you, I contacted the Dept of Fish & Game (Dave Johnston) both by phone and email to get their feedback regarding the proposed culvert. The Dept of Fish & Game r/F&G") said that while there would not be any problem obtaining a permit from them to install a culvert in Buckeye Creek, the least disruptive approach, which would not require a permit from them, would be to bridge Buckeye Creek (we provided F&G with the proposed bridge design, as found in the updated plans, as part of their review). Based on F&G's feedback, we revised the plans to show the culvert being replaced with a bridge. I understand that you also had direct contact with F&G and verified the foregoing. 2. Tree screening: We received feedback from the Town of Portola Valley asking us to add trees between Los Trancos Road and the proposed home. We worked with you and Dave Dockter to approve the type and location of trees to plant in this area and then sent this info to the Town of Portola Valley for their feedback, which they approved. We also received feedback from one neighbor who lives along Valley Oak (in Portola Valley) across Los Trancos Creek (he spoke at the March 24th Planning Commission meeting). "In response to his request for additional tree screening, we worked with you and Dave Dockter to add additional trees between the proposed home and Valley Oak; we contacted this person to solicit his feedback and never heard back from him. 3. Palm trees: We received feedback from the Town of Portola Valley that the palm trees were not ideal in their view; this was in contrast to Dave Dockter's approval of several varieties of palms which would not grow too large and which were acceptable to him. We then discussed with Dave Dockter substituting Italian Cypress for the two subject palm trees, which he approved. However, when we sent this plan to the Town of Portola Valley, they objected. After reviewing a number of alternative trees with Dave Dockter and the Town of Portola Valley, both of them whole-heartedly approved replacing the palms/cypress with Valley Oaks. Hence, Valley Oaks are shown on the updated plans. 4. Grading: Based on feedback from the Planning Commission regarding having us revisit the grading plan to see if there was a way of having the home fit better with the existing site contours as well as reducing the amount of fill (thereby increasing the amount of cut), we went back to our civil engineer and went through several iterations of revising the grading plan to accomplish this. The end result is that we dropped both the garage and home by 3 Yz to 4 feet to better align the home" improvements with the existing grade (more specifically, the garage slab dropped 3 Yz I [from 516.50 to 513.00] and the finished floor of the home dropped approximately 4' [from 518.70 to 514.75]). Furthermore, we are now exporting soil instead of importing soil. 5/1112010 Page 2of2 ·5. Fencing: Based on feedback from the Planning Commission regarding reducing the amount of fencing, we have significantly reduced the amount of fencing by removing all Type II fencing (which resulted in all fencing around the driveway being removed) as well as removing a portion of the Type I fence on the side of the home facing Los Trancos Cree~ '. 6. Miscellaneous: There were several other more minor issues raised at the Planning Commission meeting which we either clarified (such as reviewing the pool requirements with the Palo Alto Fire Department) or which will be handled with a condition of approval (such as for site lighting or noise mitigation). I believe the above items address all items requested by the Planning Commission as follow up. The revised plans reflect the above changes. Once again, we truly appreciate the cooperative and professional approach of you and the others on the Planning Staff (as well as the other departments who have weighed in). Please do not hesitate to let us know if you have any questions or require any additional information. Sincerely, Mark Mark Conroe 5/1112010 -----Original Message----- From: George Mader [mailto:mader@spangleassociates.com] Sent: Monday, May 10, 2010 2:58 PM To: Mark@PresidioDP.com Cc: Alex von feldt;denisegilb Subject: Re: Langenskiold Project Mark- Fantastic! I will forward you comments to Alex and Denise. I will also inform the rest of the planning commission at its next meeting on the 19th. You have been' extremely cooperative. Best wishes, George On 5/10/10 2:36 PM, "Mark Conroe" <mark@presidiodp.com> wrote: > George, > > After much consideration, and to demonstrate my family·s continuing efforts > to be a good neighbor to Portola Valley (and show respect for what it says) , > we will follow Alex· recommendation and change the two Cypress trees > that flank the driveway (which were formerly Palm trees) to Valley Oaks. > > I trust will be pleasing to everyone. > > Sincerely, > > Mark > > Mark Conroe > 1. Distribute Domestic Hot Water Efficiently (Max. 5 pOints, G1 a. is a Prerequisite for G1 b-e) a. Insulate All Hot Water Pipes [*This credit is a requirement associated with J4: EPA lAP] b. Use Engineered Parallel Plumbing c. Use Engineered Parallel Plumbing with Demand Controlled Circulation Loop(s) d. Use Traditional Trunk, Branch and Twig Plumbing with Demand Controlled Circulation Loop(s) e. Use.Central Core PI © Build It Green Single Family Checklist New Home Version 4.0 Page 4 of 11 ) ) ITEM NO.1 805 LOS TRANCOS ROAD CORRESPONDENCE AND ATTACHMENTS ) Betten, Zariah From: Sent: To: Lee, Elena Monday, March 22, 2010 6:53 PM Betten, Zariah Subject: FW: Fencing Plan ) Attachments: L-3,3.19.10.pdf; Portola Valley comment letter.pdf; ViewFence_706LosTrancos.jpg Please forward to the Commissioners Page 1 of1 Please find attached a comment letter from the Town of Portola Valley Planning Commission, a revised fence plan and a photo of the proposed fence. Fence: In response to concerns from staff and the Midpeninsula Open Space District, the applicant has revised the fence plan to enhance animal passage on site. In consultation with the other agencies, the applicant has removed most of the fence along Los Trancos Road. Fencing remains only along the driveway and around the residence. The applicant is proposing fencing that has been approved by Dave Dockter as appropriate in the OS district and for wildlife safety. A copy of the revised fence plan is attached. The applicant will revised the plan set to incorporate the new proposal prior to review by the City Council should the Commission recommend the project move forward. Landscaping: In response to a concern raised by the Portola Valley, the applicant is working with the Planning arborist to replace to the two proposed canary island palm trees with an alternative palm tree species. As requested by the Portola Valley Planning Commission, the new tree will be limited to a lower growing drought resistant variety. The applicant will specify a tree subject to the approval of the Planning arborist and Planning Director prior to the submittal of a building permit. However, it is likely that one will be chosen prior to the City Council hearing should the Commission forward the application. With these changes, staff believes that all of the issues raised by the other agencies have been resolved. From: Mark Conroe [mailto:mark@presidiodp.com] Sent: Monday, March 22, 20107:40 AM To: Lee, Elena Subject: Fencing Plan Elena, Here is the fencing plan you requested which eliminates essentially all (97%) of the fencing along Los Trancos. Please call my cell at 415/309-1958 if you have any questions. Thanks, Mark 3/23/2010 ) t;OW'l1 of 'Pj~C}'}®LA VALLE~ \ \/:4'f:~-"-< "7·./ Town Hall: 765 Portola Road, Portola ~\(~1:rn ,::4:028 Tel: (650) 851-1700 Fax: (650) 851-4677 ~ .. ~ ~::lJ~~: ... !~.:~~ ,~f? Mr. Dan Garber, Chair Planning Commission City of Palo Alto" 250 Hamilton Avenue Palo Alto, CA 94301 Subject: Langenskiod Family Trust Project, File Number 041PT -2217 Dear Mr. Garber, March 18, 2010 Thank you for referring the above project to the Town of Portola Valley for review and comment. Our planning commission reviewed the project at its meeting last night. Our town planner, George Mader reported on his March 16 discussions with Elena Lee of your planning department and March 18 discussions with Mark Conroe, the applicant. Both were very helpful in helping us to understand the project. I would like to offer a few comments. The project, both in terms of size and overall design, is not one that we believe fits in with the natural surroundings of Portola Valley. However, given this project falls under the purview of Palo Alto we understand Portola Valley has limited ability to influence the design. Should Palo Alto go ahead with the project as designed, we believe there are certain steps that can be taken to minimize the visual impact the project will have on Portola Valley residents: 1. The plans include two Canary, isiand Date.'· p~i'l1l trees. The~e tr~es' ~a~. re,~ch. up to 60 feet in height in time rising considerably abqve the surrounding oak canopy. 'While the intent is for the project to b~ compatible with the natural qualities. of the site, palm trees are not compatible. External views of such mature trees would be highly out of place given the. oak and grassland setting., Mr. Conroe informed us that he would be willing to consider this matter. While a different type of tree would be preferable, if he really wants palm trees, we recommend that a different variety be used. There are varieties, for instance, that would not exceed 20 to 30 feet. We would urge that the palm trees, if permitted, be limited to ~ height not to exceed 30 feet. 2. Portola Valley residents traveling on Los T.rancos Road to t~e Portola Glen Estates or the Blue Oak.s sub¢visio'ns drive by the. "Site daily. Most of the ,site . is well screened by vegetation from passersby. There is, however, 'a str~tch oflOO to 200' feet where the site is highly visible. This strip of. land between Mr. Conroe's property and the road is owned by Mr. Neely whose property extends across the road from the other side. Mr. Conroe informed us that he would be willing to provide some screen planting between his property and the road provided Mr. Neely would give permission for planting on his property. We would urge that as part of the project screen planting be installed along this stretch of land, provided permission from Mr. Neely can be obtained .. 3. The curr~nt plans call for a numbe~ of native '-shr~bs to be' pia'nte~" .aI6~g. the riparian corridor at th~':back of: the·prop~rty .. We fully. support this a,nd-..appredate,.the effo.rts to screen :the project· from' the~ 'residence~ on'. Valley ·Oak in :Port.ola' Valley _Ranch, for without this planting part of the proposed residence, and in particular, much of the hardscape and grounds would be visible from Valley Oak. We thank Palo Alto for providing the opportunity to review the plans and the cooperation of your staff. We hope you will stipulate revisions to the plan consistent with our concerns. Sincerely, D~~[:t Portpla Valley Planning Co.mmission cc. Mr. Mark Conroe Ms. Elena Lee Betten, Zariah Subject: FW: Comments for the Planning Commission hearing March 24: 805 Los Trancos Road -.;.. - --Original Message----- From: Len Lehmann [mailto:len@vitelus.com] Sent: Tuesday, March 16, 2010 8:02 AM To: Williams, Curtis Subject: Comments for the Planning Commission hearing March 24: 805 Los Trancos Road Curtis Williams Director of Planning and Community Environment City of Palo Alto Re: The Langenskiold Family Trust residence development at 805 Los Trancos Road Mr. Williams: I am unable to attend the public hearing of the Planning and Transportation Commission scheduled for March 24th, and request that these comments be forwarded to the Commissioners and included in the public record. I reside at 850 Los Trancos Road, in Palo Alto, adjacent to the subject property at 805 Los Trancos. Mr. Conroe, the applicant, has shared with me his development plan drawings. I have also observed the story poles on the subject property. I am familiar with the City' s development guidelines as they apply within the OS District. Mr. Conroe's planned residence appears to be well-conceived and will have minimal impact on surrounding waterways and riparian habitat, eXisting trees, and public views. He has connected to the local sanitary sewer system. He has been planning this project for an unusual amount of time and has been very thoughtful in considering the many issues. I support the project and look forward to having his family as neighbors. Respectfully, Leonard Lehmann 1 ) Betten, Zariah From: Sent: To: Lee, Elena Tuesday, March 23, 20105:15 PM Betten, Zariah Subject: FW: fencing for Conroe project at 805 Los Trancos Road ) Attachments: MROSD comments.pdf; DOC1 00323.pdf; story poles, 2.21.1 O.JPG; view of story poles from Los Trancos.JPG; 805 Los Trancos Colored Elevations 3.23.1 O.pdf Page 1 of 1 Please find attached a comment letter from the Midpeninsula Regional Open Space District. The District does not have objections after the redesign of the proposed fence, as shown in the revised fence plan that was forwarded to the Commissioners earlier today. Also attached is a labeled context location map. The map now identifies property lines, Foothills Park and Arastradero Preserve. The photos of the story poles originally 'provided in your packet are attached in color to this email to provide more information. Staff will provide detailed response to the Commissioners' questions on Wednesday. Please note that grading and drainage plans were provided in the packet as sheet C-1. A color elevation was also recently provided by the applicant. Hard copies will be available on Wednesday night. From: Julie Andersen [mailto:jandersen@openspace.org] Sent: Tuesday, March 23, 2010 12:53 PM To: Lee, Elena Cc: mark@presidiodp.com; Ana Ruiz Subject: RE: fencing for Conroe project at 805 Los Trancos Road Hi Elena, Please see our attached comment letter. The District has no additional project related concerns pertaining to wildlife fencing. Please note that Los Trancos Creek is utilized by steelhead rainbow trout, a federally threatened species. California Department of Fish and Game is the desi'gnated regulatory authority for threatened and endangered species in California. Please adhere to any comments they may have pertaining to project design and its impact to steelhead usage of the stream (if any). Thank you very much for the opportunity to comment. Sincerely, Julie Andersen 3/23/2010 Julie K. Andersen Resource Planner Midpeninsula Regional Open Space District 330 Distel Circle, Los Altos, CA 94022 P: (650) 691-1200 -F: (650) 691-0485 Email: jandersen @openspace.org Web: WWW~.R~.!J.§Q'§.Q~J>19.1 twitter: @mrosd Regional OpenSpace f.,.1idpeninsu!a Re.gional Open Space. District March 19, 2010 Elena Lee, Senior Planner City of Palo Alto Ms. Lee~ The Midpeninsula Regional Open Space District (District) has reviewed the Mitigated Negative Declaration and Site plan for the proposed development located at 805 Los Trancos Road. Upon initial review, the District had concerns regarding the type and anlount of fencing proposed for the property along Los Trancos Road, as well as along the drive way and sUlTounding the home. As initially designed the type; height, length, and placement of fencing would act as a banier in a sensitive riparian area that is cUlTently used by wildlife. These issues were discussed by telephone with the project proponent Mr. Mark Conroe on Iv1arch 17, 2010. A pUblication that discusses w.ildlife friendly fencing design was provided to Mr. Conroe by email on March 17,2010. After reviewing the information, Mr. Conroe presented a proposed revision to his original fence design (see attached); In reviewing the revised design, it appears that Mr. Conroe will insta]] fencing " " sUlTounding the housing cOlnpound and a gated entryway, but will no longer add fenCing along the majority of Los Trancos Road, or sUlTounding that portion of the driveway that crosses Buckeye Creek Including these proposed revisions in. the project design will allow Mr. Conroe to install desired fencing while providing an imp0l1ant wildlife canidor albng Buckeye Creek, as well as allow for wildlife crossing of Los Trancos Creek and continuing eastward across the property. As revised, the project plans will reduce the overall anlount of fencing installed and will be more favorable to continued movement of wild lite tlrrough the project area. Habitat for steelhead rainbow trout (Oncorhynchus mykiss), a federally listed threatened species within the Central California Coast Evo.lutionalY Significant Unit occurs in the project area within Los Trancos Creek. Ongoing coordination with the California Depaltment of Fish and Game should occur to ensure that project design does not impact use of Los Trancos Creek by steelhead trout. Although the project will add a built feature, the size, location, and design of the project is in keeping with the surrounding rural residential area. Views into the project area are undisturbed, the stluctu.re is visible in areas where the viewshed is ah-eady iInpacted. by surrounding stluctures, and is not visible in areas where no structures are visible. No other project concerns were identified. The District appreciates the efforts of the project proponent and the City to reduce the project footprint and to provide continued public and agency revie"\v of the project. Sincerely, -~~ Ana Ruiz Planning Manager t'''q::\j tU1L/ _____ ~t_'4·\,;'t"'''~'''' .. " .. '" .. i;.<';·,0:}y __ < ___ _ NATURAL RESOURC E ASSESSMENT AND RESTORATION SERVIC ES March 22, 2010 To: City of Palo Alto Planning Commission Members RE: COMMENTS FOR 805 LOS TRANCOS RD. ENVIRONMENTAL ASSESSMENT FOR CONROE PROPERTY Dear Planning Commissioners, I was born and raised in Portola Valley near Los Trancos Creek and I have been working as a professional biological consultant and volunteer with the San Francisquito . Watershed Council, within the San Francisquito Creek watershed, for the past 13 years. I started the Watershed Council's Steelhead Task Force in 2000 and have been deeply involved with assessing and restoring the Federally Threatened steelhead trout to our creek throughout this time. I have also served as the Central California Coast Society for Conservation Biology co-President and currently serve on the Conservation Committee for the California-Nevada Chapter of the American Fisheries Society. The property being proposed for development of an over 11,000 square foot house occurs is a critical area for the Federally Threatened steelhead trout (Oncorhynchus mykiss). Both Los Trancos Creek and Buckeye Creek (sometimes called the East Fork of Los Trancos Creek) currently contains listed steelhead trout and both creeks are federally listed as "Critical Habitat" for steelhead. See the underwater photo at the end of this letter of wild juvenile stee1head and native California roach taken while surveying fish populations in Los Trancos Creek not far downstream from this proposed development. Members of the San Francisquito Watershed Council have identified steelhead in Los Trancos Creek along this area, as well as within Buckeye Creek up to the Los Trancos Road culvert crossing, over the past decade. Buckeye Creek is a critically important tributary stream that provides all surface flows to Los Trancos Creek during summer and fall of drier years. The Mitigated Negative Declaration fails to acknowledge the ecological significance of these creeks for steelhead. It is my professional opinion that the following changes should be made: Riparian Corridor (pg. 3) The document states "The applicant proposes to construct a natural earth berm, two to three feet in height, along the 50 feet top of back setback area to clearly define and protect what would be the undisturbed riparian corridor." Why would an applicant propose to build a 2- 3 foot high berm adjacent to the riparian setback of a creek to "protect" the riparian cooridor? It sounds like a proposal to build an earthen levee to prevent possible high flows 1 from entering the property. The document states "Other than the culvert used to allow Buckeye Creek to continue flow undisturbed under the new driveway, no changes are proposed to Buckeye Creek." If a new driveway is proposed over a creek that has listed steeij1.ead and is Critical Habitat, then NOAA and DFG should be consulted and the culvert mentioned should be removed and the stream channel restored with no instream culvert that may be a partial fish passage barrier during certain flows. Stream flow through a culvert cannot be classified as "undisturbed". Grading (pg. 3) The document states "A majority of the grading work will be done for the building pad, swimming pool, culvert for Buckeye Creek ... " The document continues to state "A condition of approval will require the applicant to obtain and submit all required pennits or letters stating permits are not required from outside agencies, including the Department of Fish and Game and the US Army Corps of Engineers, for the proposed culvert and creek work as appropriate." Any grading at a culvert, within or adjacent to a stream channel will require permits from DFG and Us. Army Corps with NOAA consultation. Page 9 Table D. Biological Resources a) I believe this row should be listed as a "Potentially Significant Issues" check box due to the fact that this proposed development will occur at the confluence of two critically important streams with federally listed steelhead occurring in both. b) I believe this row should be listed as a "Potentially Significant Issues" check box due to the fact that both adjacent streams are listed as Critical Habitat by NOAA- National Marine Fisheries Service and riparian corridors occur adjacent to and across the proposed development site. c) Depending on the proposed creek channel impacts adjacent to Buckeye Creek this row may need to be listed as a "Potentially Significant Issues" check box due to the fact any modifications to any of the stream channels or grading at culvert could impede the highly migratory steelhead trout. The meadow is also a well- known deer rutting area in the Fall and fawning location in the Spring that should qualify as "native wildlife nursery site". d) and e) I believe both of these rows should be listed as a "Potentially Significant Issues" check box due to the listing of both streams as Critical Habitat by NOAA. State Department of Fish and Game conservation plans may also apply here as the San Francisquito Creek steelhead population is a high priority steelhead recovery stream for DFG. Discussion (pg. 9) The document states "no sensitive or protected species of plant or animal life have been directly observed on the site". Buckeye Creek traverses the site and contains steelhead trout as noted by a 2002 San Francisquito Watershed Council Table San Francisquito Creek Watershed SteelheadlRainbow Trout (0. mykiss Observations and Distribution 1999-2001 (File attached in email). 2 Mandatory Findings or Significance -Table Q (pg. 28-29) a) It is my opinion that this row should be listed as "Potentially Significant Issues" due to the already stated concerns above about impacts to threatened steelhead, Critical Habitat, in stream work at culvert, and impacts to these two riparian corridors. I strongly urge the Planning Commission to not recommend that the City Council adopt this Mitigated Negative Declaration nor approve the Site and Design Review application as they stand. The documents submitted need to be updated and corrected with the above information and both NOAA Fisheries and California Department ofFish and Game personnel should be asked for input on this critically important land use discussion and document preparation. Please include this letter in the public record for this property, Planning Commissioner packets, and records for the March 24, 2010 Planning and Transportation Commission Meeting. Thank you for your time and consideration and please contact me with any questions you may have. Matt Stoecker Owner and Principle Biologist Stoecker Ecological 3130 Alpine Rd. #288-411 Portola Valley Ca. 94028 matt@stoeckerecological.com www.stoeckerecological.com (650) 380-2965 mobile cc: NOAA-National Marine Fisheries Service California Department of Fish and Game Members of San Francisquito Watershed Project-Acterra 3 RESPONSES TO COMMISSION'S REQUESTS 805 Los Trancos Road Responses to Commissioner Martinez's Questions 1. Can you ask the Applicant to provide a Grading and Drainage plan? Sheet L-2 shows substantial grading but nowhere can lfind how run off is managed. Staff Response: A grading and drainage plan was included in the packet plan set. Please refer to sheet C-2 and ER-1 for the information. The project was designed to direct runoff to swales and landscaping to maximize filtration. 2. The house is being raised 8' above natural grade. Why? Staff Response: The house is being raised because the natural grade slopes up from 510 to 516 towards the south of the site. Fill is being added to make the house level at a pad level of 516.50 and a finish floor level of 518.70. Applicant Response: The home pad is at 516' and the garage pad is at 513.58'. The existing grade in the area of the garage and home varies from 511' to 514'. Therefore for the home and garage to be on the same level, the site needs to be leveled, which means that there is minor cut and fill that takes place; more specifically the area round the garage is cut around l' and the home pad is filled around 4' on avereage. Refer to Civil Plan C-2 for more detail. 3. Are the heights of the story poles 25' or are they measuredfrom the proposedfinishfloor (518') + 5' which equals 33' ? Staff Response: The height of the story poles is 33 to show the maximum height of the proposed structure. 4. Discounting the basement excavation, there is substantial grading and fill leading up to the house (L- 2). Yet, the Report says there is less than 1 cubic yard offill. Please clarify. The projectproposes 625 cubic yards of fill to accommodate the development, as shown in the both the plans and staff report. 5. Please provide a map that shows ownership of surrounding lands. Are the hills visible to the west in public ownership? Staff Response: An annotated map is attached. The hills to the west are within the Town of Portola Valley. The hill is part of the Portola Valley Ranch Planned Development. There are no public parks within that development. 6. The plans call for a joint trench. I don't believe that electricity (lnd gas can be run in the same trench. Please confirm. Staff Response: Staff will work with utilities to ensure that there are adequate trenches for utilities. Applicant Response: If required, we will run 2 trenches side by side in the same area as shown on the plan for trenching. Impervious Propo,sed square surface* footage that would count as impervious surface j House footprint 3,705 3,705 sq. ft. Garage and 1,472 breezeway 1,472 sg. ft. Pool coping 230 230 sq. ft. Driveway apron 0 1,440 sq. ft. (75 % permeable) Rear patio 0 250 sq. ft. (75% l!ermeable) Swimming Pool 0 1,350 sq. ft. Total 5402 sq. ft. 805 Los Trancos Road Impervious and Pervious Coverage Tables March 24, 2010 Maximum Conformance Maximum allowed in the to 2007 allowed under ordinance (2007) Ordinance 2009.0rdinance the project is (5%) subject to (3.5% ) 5402 sq. ft. Yes 7,724 sq. ft. Proposed square Conformance footage that to 2009 would count as Ordinance impervious surface in 2009 Ordinance 3,705 1,472 230 360 63 1,350 7,145 sq. ft. Yes *Under the 2007 ordinance, any type of permeable paver is considered fully permeable. Per the 2009 ordinance, partially permeable pavers would be granted credit for only the percentage of permeability. Additionally, the approximately 1350 sq. ft. swimming pool would also be considered an impervious surface under today's regulation. 805 Los Trancos Road Stream Conidor Protection Ordinance Compliance March 24, 2010 The project was submitted prior to the adoption of the Stream Conidor Protection Ordinance. Although it was not subject to the ordinance, it was designed to meet the requirements, as demonstrated in the table below. The Ordinance was adopted by the City in 2007 in response a cooperative effort with the Santa Clara Valley Water District (SCVWD). Prior to 2007, the SCVWD reviewed any work proposed within 50 feet of any recognized water ways per their ordinance. The SCVWD ordinance requires only that a permit is obtained for work within 50 feet and did not identify any regulations. To provide more detailed and consistent review and implementation, the City adopted the specific regulations in the Stream Conidor Protection ordinance to regulate construction near recognized water ways. The City's ordinance incorporates specific provisions that would meet the SCVWD standards and the goals of the Comprehensive Plan. Stream Corridor Protection Compliance Regulation Slope Stability Protection Area: All development shall be located outside the slope stability protection area or 20 feet landwardfrom the top of bank or to a point measured at a ratio of 2:1. Given the shallow nature of the stream, 20 feet would be considered the farthest point. New fences shall be at least 5 feet landward from the top of bank Native riparian vegetation within 100 feet of top of bank shall be retained or removed only upon approval of the Planning and Community Environment Planting of non-native species is not permitted Accessory uses, such as trash enclosures, shall be located at least 50 feet from the top of bank Proposal The residence is more than 50 feet away from either Los Trancos Creek or Buckeye Creek top of bank. All acti vi ty is proposed to be placed at least 50 feet from the top of the Los Trancos Creek Bank. Fences are proposed at least 50 feet from the top of the Los Trancos Creek top of bank and 25 feet from Buckeye Creek. Applicant is working with Planning arborist to maintain riparian vegetation and to plant additional as required. Non- riparian vegetation is only approved beyond the 100 foot area. Only native riparian species is proposed along the riparian conidor. No structures are proposed within 50 feet of the top of bank. Conformance Yes Yes Yes Yes Yes Nighttime lighting shall be All lighting is directed away from Yes directed away from the riparian Los Trancos Creek and Buckeye corridor Creek. Only low level down lighting is proposed. Irrigation systems shall be Primarily drought resistant species Yes designed to avoid soil erosion are proposed and the irrigation system has been designed to avoid soil erosion. Distance between nighttime No lights are proposed within the Yes lighting and riparian corridor protected riparian corridor of Los shall be maximized Trancos Creek and the smaller Buckeye Creek. Bright color and glossy or -glare-No bright colors or glare Yes producing finishes on buildings producing elements are proposed. shall not face riparian areas. Non-reflective building materials are incorporated into the project. Regulation Minimum Site Area Impervious Area Floor Area Ratio Front Setback Interior Side Yard Street Side Yard Rear Setback Crediting of permeable surfaces REVISED ATTACHMENT F ZONING COMPLIANCE TABLE 805 Los Trancos Road / 04IPT-2217 March 24, 2010 Proposed Required/ Conformance Permitted in to 2007 2007* requirements 3.55 acres (154, 10 acres Existing 479 sq. ft.) condition 5,407 square 3.5% or 5,407 Conforms feet sq. feet 0.058: 1 or 8,904 No restrictions Conforms sq. ft. > 30 feet 30 feet Conforms > 30 feet 30 feet Conforms 30 feet 30 feet Conforms 30 feet 30 feet Conforms At least 75% No restrictions Conforms permeable on type of permeable surface that can be deducted from total impervious surface Current Code Requirement as adopted in 2009 10 acres 5% 0.05:1 30 feet 30 feet 30 feet 30 feet All paved surfaces shall be classified as 100%, 750/0, 50%, or 25% impervious and credited accordingly * Chapter 18.28 (OS District) Regulations at time application was submitted in 2004 & revised in 2007. The project is not subject to the current code requirements. However, the data is being provided for comparison -only. rage 1 or 1 Betten, Zariah From: Lee, Elena Sent: Wednesday, March 24, 2010 12:47 PM To: Betten, Zariah Subject: 805 Los Trancos photos Importance: High Attachments: Vista Point.JPG; Shotgun Fire Rd, view 1.JPG; Shotgun Fire Rd, view 2.JPG; Trappers Fire Rd Photo.JPG -----Original Message----- From: Mark Conroe [mailto:mark@presidiodp.com] Sent: Wednesday, March 24, 2010 12:36 PM To: Lee I Elena Subject: RE: photo request Importance: High Elena, As requested, I took photos this morning from both Vista Point in.Foothills Park and on the Los Trancos Trail both at the peak of Shotgun Fire Rd and Trappers Fire Rd looking towards 805 Los Trancos to see if there were any views of the subject site. At no time was 805 Los Trancos Rd sighted; since the site is in a valley with 200-300' high hills sULrounding it (Portola Valley Ranch homes to the west and the McNealy/Hewlett/Arrillaga properties to the east), I was unable to find any angle where the site could be seen. I have attached 4 photos: #1: Taken from Vista Point in Foothills Park looking towards the subject (805 Los Trancos Rd). As noted thereon, Blue Oaks development in Portola Valley is very visible. The subject cannot be seen since it is in the valley below. #2: Taken from the high vista point on Trappers Fire Rd; as noted thereon, Portola Valley Ranch homes along the ridge are easily seen. The subject cannot be seen since it is in the valley several hundred feet below. #3 and #4 (which form a panoramic·view when put side by side): Both taken from Shotgun Fire Rd at the vista point which provides the best view of the area towards the subject; as noted thereon, Blue Oaks development and Portola Valley Ranch homes are easily seen. The subject cannot be seen since it is in the valley below. In conclusion, in my exploration from both of these parks, I was unable to see the subject property; the surrounding hills are easily seen but the valley floor (where the subject home is located) below was not seen. Mark 3/24/2010