HomeMy WebLinkAbout2010-10-18 City Council Agenda PacketThis Agenda/Notice is Posted in
Accordance with Government Code
Section 549.2(A) or Section 54956
10/18/10
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 Thursday preceding the meeting.
Special Meeting
Council Chambers
October 18, 2010
5:15 PM
ROLL CALL
CLOSED SESSION
Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker.
1. PUBLIC EMPLOYEE APPOINTMENT
Title: Acting City Auditor
Authority: Government Code Section 54957
COUNCIL CONFERENCE ROOM
6:00 PM to 7:30 PM
STUDY SESSION
2. Joint Meeting With the Utilities Advisory Commission Regarding
Utilities Issues
ATTACHMENT
COUNCIL CHAMBERS
7:30 PM
STUDY SESSION
3. Status Report on the East Meadow Circle/Fabian Way and California
Avenue/Fry’s Area Concept Plans (Continued from October 04, 2010)
8:30 PM or as near as possible thereafter
SPECIAL ORDERS OF THE DAY
4. Adoption of a Resolution of Appreciation to Karen Smith Upon Her
Retirement
ATTACHMENT
2
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.
5. Appointments for the Library Advisory Commission for Two Unexpired
Terms, One Ending on January 31,2011 and One Ending on January
31, 2013
ATTACHMENT
6. Appointments for the Public Art Commission for Two Unexpired Terms
Ending on April 30, 2011
ATTACHMENT
7. Proclamation for the United Nations Association Film Festival
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
September 13, 2010
CONSENT CALENDAR
Items will be voted on in one motion unless removed from the calendar by two Council Members.
8. Update on City's Cross Connection Control Program Compliance Efforts
and Adoption of a Resolution Amending City of Palo Alto Utilities Rule
and Regulation 21, Governing Installation of Certain Backflow
Prevention Devices in the Public Right-of-Way
CMR 378:10 and ATTACHMENT
9. 2nd READING Adoption of an Ordinance Amending Section
2.08.210 of Chapter 2.08 of Title 2 [Officers and Departments],
and Section 22.04.035 of Chapter 22.04 of Title 22 [Park and
Recreation Building Use and Regulations] of the Palo Alto
Municipal Code to Amend Employee Titles and Names of
Divisions and Reflect the Titles of Employees Who Are
Authorized to Issue Citations, Respectively (First reading September 27,
2010 – Passed 8-0 Yeh Absent)
3
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER
DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY
CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS.
10. Approval of Three- Year Maintenance Contract With Accela, Inc. in the
Amount of $339,158 for Accela Automation and Accela Citizen Access
for Web-Based Permits
CMR 372:10 and ATTACHMENT
11. Approval of Amendment No. One to Agreement and a Regulatory
Agreement With Tree House Apartments , L.P. to Provide an Additional
Development Loan in the Amount of $2.5 Million in Residential Housing
Fund for a 35-Unit Affordable Rental Housing Project at 488 Charleston
Road
CMR 366:10 and ATTACHMENT
12. Cancellation of Monday, November 15 Regular Council Meeting and
Setting of Special Council Meeting on Monday, November 22
ATTACHMENT
13. Recommendation From the Council Appointed Officer Committee for
Appointment of Interim City Attorney
CMR 384:10
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
14. Recommendation of the Council Ad-Hoc Committee to Adopt an
Ordinance Amending Section 2.23.050 of Chapter 2.23 of Title 2
the Palo Alto Municipal Code to Add the Subjects of Wastewater
Collection and Fiber Optics to the Purposes and Duties of the
Utilities Advisory Commission
CMR 380:10 and ATTACHMENT
15. Public Hearing: Adoption of Amended Community Development Block
Grant (CDBG) Citizen Participation Plan
CMR 375:10 and ATTACHMENT
4
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.
16. Approval of a General Services Agreement With ValleyCrest Golf
Course Maintenance, Inc. in the Amount of $1,875,000 for
Maintenance Services and Sale of Used City Golf Course Maintenance
Equipment for $125,000; and Referral of Golf Course Financial
Planning Issues to the Finance Committee
CMR 382:10 and ATTACHMENT
COUNCIL MEMBER QUESTIONS, COMMENTS, AND ANNOUNCEMENTS
Members of the public may not speak to the item(s).
CLOSED SESSION
Public Comments: Members of the public may speak to the Closed Session item(s);
three minutes per speaker.
17. CONFERENCE WITH CITY ATTORNEY—ANTICIPATED/POTENTIAL LITIGATION
Significant exposure to litigation pursuant to Government Code section
54956.9(b)(1): G. Roberts
Authority: Government Code section 54956.9(b)(1)
ADJOURNMENT
Persons with disabilities who require auxiliary aids or services in using City facilities, services, or programs or who
would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact 650-329-2550 (Voice) 24 hours in advance.
City of Palo Alto
Memorandum
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER
DATE: OCTOBER 18, 2010
2
DEPARTMENT: UTILITIES
SUBJECT: Potential Topics of Discussion for the Joint Study Session Meeting
with the Utilities Advisory Commission
Transmittal from Mayor Burt, UAC Chair Waldfogel and Vice Chair Foster of the
potential topics of discussion for the joint study session with the Utilities Advisory
Commission at 6:00 P.M. on October 18,2010.
1) Would the City Council like the UAC to, in the year ahead, evaluate how best to
balance the competing priorities of (i) keeping ratepayer costs as low as possible,
and (ii) achieving environmental objectives?
Subtopic la: Would the City Council like the UAC, as part of this effort, to
evaluate the right mix between taking leadership position on achieving
environmental objectives and simply following what others are doing?
Subtopic 2b: Would the City Council like the UAC, as part of this effort, to
evaluate the cost/benefit trade off of investing in greater levels of energy
efficiency?
2) UAC and City Council interactions -what are the communication goals and the
best way to achieve them?
3) Would the City Council like the UAC, in the year ahead, to study local generation
and determine whether Palo Alto should encourage it and, if so, at what cost and
using what measures?
--+-~_a~~_--+-· 'JIf'VOF
ERIE O. FONG (/
RESOLUTION OF THE COUNCIL OF THE
CITY OF PALO ALTO EXPRESSING APPRECIATION
TO KAREN SMITH UPON HER RETIREMENT
WHEREAS, Karen Smith has served the City of Palo Alto from March 29, 1976 to October
15, 2010 as Manager - Facilities Maintenance & Projects, Supervisor – Facilities Projects,
Maintenance Lead, Facilities Mechanic, Building Equipment Maintenance Trainee, and Painter’s
& Carpenter’s Assistant; and
WHEREAS, Karen Smith in her 34 years of service with the Public Works Department, has
managed the maintenance, repair, rehabilitation, and capital improvement of 1.6 million square
feet of City facilities (130 structures); and
WHEREAS, Karen Smith served on the Infrastructure Management Plan and Capital
Improvement Projects Committees to prioritize, develop, and implement a plan to maintain City
facilities; and
WHEREAS, Karen Smith has coordinated and managed the safe, secure, and environmentally
sound operations and maintenance of the City’s most valuable capital assets in a cost effective
manner aimed at long-term preservation of the asset value; and
WHEREAS, Karen Smith has coordinated and implemented “green” building practices in the
maintenance and construction of City facilities; and
WHEREAS, Karen Smith has provided her expertise, leadership, guidance, and support to
fellow employees in the Public Works Department; and
WHEREAS, the City of Palo Alto desires to recognize the commendable service of Karen
Smith.
NOW, THEREFORE, LET IT BE RESOLVED, that the Council of the City of Palo Alto
hereby commends the outstanding years of public service of Karen Smith and records its
appreciation as well as the appreciation of the citizens of this community for the service,
commitment, and contribution rendered during her 34 years of employment with the City.
INTRODUCED AND PASSED: October 18, 2010
ATTEST: APPROVED:
___________________ ____________________
City Clerk Mayor
APPROVED AS TO FORM:
___________________ ___________________
City Attorney City Manager
HONORABLE CITY COUNCIL
City of Palo Alto
City.QfJ~~QAltQ
Office of the City Clerk
October 18, 2010
SUBJECT: Appointments for the Library Advisory Commission for Two
Unexpired Terms, One Ending on January 31,2011 and One ending
on January 31, 2013.
Dear Council Members:
On Monday, October 18, 2010 the City Council should vote to appoint two
unexpired terms, one ending on January 31,2011 and one ending on January
31, 2013. The Candidates are as follows:
Ramaroa Digumnarthi
Mark Hoose
Tolulope Akinola
Diane Morin
Noel Bakhtian
Ambarish Malpani
Michael Gonzalez
Voting will be by paper ballot. Five votes are required to be appointed. The
first two candidates that receive at least five votes will be appointed.
cc: Donna Grider, City Clerk
Diane Jennings, Staff Liaison
Respectfully submitted, // ~~ .... rjttty/ ~~·b
Beth D. Minor
Assistant City Clerk
P.O. Box 10250
Palo Alto, CA 94303
650.329.2571
650.328.3631 fax
HONORABLE CITY COUNCIL
City of Palo Alto
CttyQfP9.l.9AltQ
Office of the City Clerk
October 18, 2010
SUBJECT: Appointments for the Public Art Commission for Two Unexpired
Terms Ending on April 30, 2011
Dear Council Members:
On Monday, October 18, 2010 the City Council should vote to appoint two
unexpired terms ending on April 30, 2011. The Candidates are as follows:
Douglass C. Brown
R. Dean Bunderson
TrishColli ns
Jane Peterman
Arlene Stevens
Morgann Trumbull
Voting will be by paper ballot. Five votes are required to be appointed. The
first two candidates that receive at least five votes will be appointed.'
cc: Donna Grider, City Clerk
Elise DeMarzo, Staff Liaison
Respectfully submitted,
',' / .... . -.---.. -:u --+-() '\.t\..~u(t "~~.{.,:,,-, ):i
Beth D. Minor
Assistant City Clerk
P,O. Box 10250
Palo Alto, CA 94303
650.329.2571
650.328.3631 fax
CITY OF PALO ALTO
PROCLAMATION
UNITED NATIONS ASSOCIATION FILM FESTIVAL
WHEREAS, October 22, 2010, marks the 13th anniversary of the United Nations Association Film Festival
(UNAFF), which was originally created to celebrate the 50th anniversary of the signing of the Universal
Declaration of Human Rights; and
WHEREAS, UNAFF was initiated with the help of members of the Stanford Film Society and United Nations
Association, Midpeninsula Chapter, a grassroots, community-based, nonprofit organization in Palo Alto; and
WHEREAS, UNAFF gives five awards—UNAFF Grand Jury Award for the Best Documentary, UNAFF Grand
Jury Award for the Best Short Documentary, UNAFF/Stanford Video Award for Cinematography,
UNAFF/Stanford Video Award for Editing and the UNAFF Youth Vision Award; and.
WHEREAS, UNAFF has previously screened some of the most honored and talked about documentaries
including five that went on to win Academy Awards and seventeen that were nominated; and
WHEREAS, UNAFF celebrates the power of films dealing with human rights, environment, women’s issues,
homelessness, racism, disease control, universal education, war and peace with the theme this year of
“Population, Migration & Globalization”; and
WHEREAS, the UNAFF jury selected 60 films for this year’s festival dealing with topics from 60 countries
around the world; and
WHEREAS, UNAFF will be held on October 22 - 31, 2010, at the Aquarius Theatre in Palo Alto, in East Palo
Alto and San Francisco and at Stanford University; and
WHEREAS, UNAFF hosts academics and international filmmakers to discuss the topics in the films with
members of the audience, who are often separated by geography, ethnicity and economic status.
NOW, THEREFORE, I, Patrick Burt, Mayor of the City of Palo Alto, on behalf of the City Council do
hereby proclaim October 22 - 31, 2010, as United Nations Association Film Festival Days, and encourage the
citizens of our community to attend the UNAFF Opening Night at the Aquarius Theatre and the UNAFF
screenings from October 22 to October 31, 2010.
Presented: October 2010
__________________________
Patrick Burt
Mayor
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: UTILITIES
DATE: OCTOBER 18, 2010 CMR: 378:10
REPORT TYPE: CONSENT
SUBJECT:
BACKGROUND
Update on City's Cross Connection Control Program Compliance
Efforts and Adoption of a Resolution Amending City of Palo Alto
Utilities Rules and Regulation 21, Governing Installation of Certain
Backflow Prevention Assemblies in the Public Right-of-Way
On October 15,2008, the California Department of Public Health (CDPH), Division of Drinking
Water and Environmental Management, performed a cross connection sanitary survey of the
City's water distribution system. CDPH found the City's water system facilities to be in
satisfactory condition, and noted several actions for the City to complete over the next two years
to ensure continued water system safety. One of CDPH's requirements was that the City ensure
that all customers install Backflow Prevention Assemblies (BP As) where needed.
The purpose of the City's Cross Connection Control (also known as the "backflow prevention")
Program is to prevent contaminated water from entering the City's water distribution system and
contaminating the water supply. The Program is mainly focused on commercial or industrial
customers who conduct certain processes on their premises, or have connections to the water
system that have the potential of allowing harmful agents to enter the system. Some examples of
businesses ~d properties that require BP As are: restaurants, dry cleaners, metal plating
companies, hospitals, medical offices, dental offices/services, golf courses and the City'S
landscaping strips. Customers who have pressurized water systems or alternate water sources
such as wells on their property are also subject to this Program. These may include residential
customers.
CDPH has mandated that all water systems in the City be in compliance with all cross
connection regulations, including Title 17 of the California Code of Regulations and Utility Rule
and Regulation 2I(E), by December 15,2010. The City reports on its progress towards this goal
by submitting quarterly Program progress reports to CDPH.
In order to ensure compliance with these regulations, the City has assessed the customers'
properties, identified BP A sites, and informed customers when BP A installation is required.
(BP As are owned, operated, and tested by the customer.)
CMR: 378:10 Page 1 of4
Since April 7, 2009 the City has sent customers a series of letters explaining the program and its
requirements. Most customers have achieved compliance. However, for some business owners
in the California A venue and University Avenue Business Districts where the buildings abut the
Public Right-of-Way (PROW) installation of a BPA on private property can be inconvenient. In
some cases the only practical location for the BPA is in the PROW. Other areas of the City
where buildings do not abut the PROW have been less problematic because adequate space is
available for the installation of these assemblies.
The current practice has been to avoid the installation of BPAs in the PROW; however, in some
cases this may not be possible given the December 15, 2010 compliance deadline. If customers
are unable to meet the deadline, existing regulations require the termination of water service to
the non-compliant customer until the backflow assembly is installed.
DISCUSSION
In general the City does not allow installation of private facilities within the PROW. Private
installations in the PROW are discouraged in order to maximize available PROW space and
access, avoid future maintenance complications, (sidewalk replacement, paving activities, utility
system maintenance, etc.) and any impediment to future improvement in the PROW requiring
relocat\on of private facilities.
In an effort to alleviate the problems customers are experiencing with meeting the backflow
prevention requirement prior to the deadline, staff is revising current practice to allow the
installation of BPAs in the PROW in the California Ave and University Ave Business Districts
only. This change is an interim solution that will allow customers to meet the deadline for
installing BPAs. Building owners will be required to move the BPA from the PROW back to the
individual property when improvements are made to the property.
The installations in the PROW will be placed in most cases at the face of the building. BPAs
extend about 4 inches from the face of the building, are approximately 12 inches in length and
must be located 12 inches above ground. These assemblies must be placed in a location where
they can be tested annually to comply with state regulations.
A contractor for the City is surveying California Avenue and the University Avenue Business
Districts to determine the properties where the BPA may need to encroach in the PROW. The
c()ntractor will meet with building owners to discuss options for the installation of the BP A.
BP As will be placed in non-obtrusive locations. Staff met with the Downtown Business
Improvement District and contacted the Chamber of Commerce to discuss the issue of backflow
assemblies in the PROW. All BPA locations will be subject to a Planning Department review
and approval prior to installation. Staff has presented this issue to the ARB and explained the
need for this temporary encroachment. ARB guidance will be utilized during the review of
pending encroachment permits for the installation of BP As. The attached redlined Utilities Rule
and Regulation 21 reflects the revisions required to allow for the temporary installation of BP As
in the PROW.
Staff will be using the following criteria in the application review of the required encroachment
permit for BPAs located in the PROW, subject to the restriction that the encroachment permit is
temporary and may be revoked by the City at any time. Additional review by Planning will be
required when the application for encroachment in the PROW is associated with designated
historic buildings.
CMR: 378:10 Page 2 of4
1. Only applies to customers with zero lot lines in California or University A venue business
districts where no feasible placement alternative exists outside of the PROW.
2. Only applies where building structure is vertical at the edge of the PROW/sidewalk.
3. The customer shall provide a minimum liability coverage of $1 ,000,000 each for personal
injury and property damage and shall indemnify and hold the City harmless via a
contractual Iiability endorsement.
4. Location of BPAs in the PROW are only allowed for 2 inches and smaller BPAs.
5. BPAs located in the PROW shall encroach the minimum distance necessary for
compliance. In no event shall right-of-way sidewalk access be restricted to less than five
(5) feet of clearance.
6. Any BPA proposed in the PROW may, at the discretion of the Director of Planning and
Community Environment, require mitigation to-paint the equipment to match the
building, provide for a screening cage, or other techniques to minimize visual impacts
along the streetscape.
7. Any BP A proposed in the PROW to be located on the exterior of a designated historic
building requires review and approval by the Department of Planning and Community
Environment, in addition to other approvals.
8. In the event of a future building improvement, the encroachment permit will be revoked
as a component of the development approval, and the applicant will be required to
allocate space in the design of the improvements to accommodate the BP As (within City
guidelines/rules).
Staff will return to Council in the Fall with an update on the Plan outlining current progress and
issues.
RESOURCE IMPACT
Existing staffing will be diverted to review proposed BPA locations in the PROW.
POLICY IMPLICATIONS
This report is consistent with the Council's policy and program direction provided to staff
regarding cross connection control and Strategy No.7, "Implement programs that improve the
quality of the environment". The review process outlined further assures that these regulations
will provide consistency with the City's Downtown Urban Design Guide policies to "Review all
utility installations in order to reduce clutter and limit safety hazards" and to "Where feasible,
provide for screening and landscaping of utility installations, etc."
ENVIRONMENTAL REVIEW
The actions summarized in this report do not meet the definition of a "project" pursuant to
California Public Resources Code section 21065, thus no California Environmental Quality Act
(CEQA) review is required.
CMR: 378:10 Page 3 of4
ATTACHMENT
A. Rule and Regulation 21 .
. B. Redline Versjon of Rule and Regulation 21 .
C. Resolution Amending'The City Of Palo Alto Utility Rule: And Regulation 21 (Special Water
. Utility Regulation) Governing ·Cross-Connection Control .
PREPARED BY:
APPROVED 'BY: VtJr
CITY MANAGER APPROVAL:
CMR:378:10 Page4of4
ATTACHMENT A
SPECIAL WATER UTILITY REGULATION
RULE AND REGULATION 21
A. GENERAL
In addition to the general requirements outlined in Rule and Regulation 18 for Utility Service
Connections and Facilities on Customers' Premises, the following is required:
B. SERVICE CONFIGURATIONS
1. NUMBER OF SERVICES PER BUILDING
Only one Water Service line is allowed for a building or other Customer Premises, except
additional water services may be provided for commercial properties at CPAU's
discretion, if the following conditions apply:
a. Space is not available in the Public Right-of-Way at anyone location for the
number of Water Meters required to serve the property.
h. Additional Water Services are needed for irrigation and fire Water Services.
C. AUTOMATIC FIRE SERVICE
1. PURPOSE
An automatic fire Service connection iri 2-inch to 10-inch size will be furnished only if
adequate Provisions are made to prevent the use of Water for purposes other than fire
extinguishing.
2. APPLICATION AND AGREEMENT
The Applicant will be required to sign ail Application for CPAU connection and agree to
operate the fire service in accordance with these Rules and Regulations. The Applicant,
at the Applicant's expense, will be required to install an approved backflow protection
assembly in accordance with Title 17 of the California Administrative Code, Section E of
this Rule and Regulation, and City standards.
3. INSTALLATION CHARGES
The Applicant will be required to make payment in advance of construction in
accordance with CPAU's applicable Connection Fee Rate Schedule.
CITY OF PALO ALTO
UTILITIES RULES AND REGULATr()N~
Issued by the City Council
Effective 10-18-2010
. Sheet No.1
SPECIAL WATER UTILITY REGULATION
RULE AND REGULATION 21
4. QUANTITATIVE CHARGES
a. Water for fires: no Charges will be made for Water used to extinguish accidental
fires.
b. Other: Water used for any purpose other than extinguishing fires or testing or
repairing fire extinguishing facilities, shall be paid for under Water Rate Schedule
W-3. Unauthorized Water used shall be subject to criminal prosecution as set
forth in Water Rate Schedule W-3.
5. VIOLATION OF AGREEMENT
If Water is used from a fire service in violation of the agreement or of this Rule and
Regulation, CP AU may, at its option, levy a fine, discontinue and remove a Service in
. addition to charging for the Water illegally used, and prosecute pursuant to Palo Alto
Municipal Code Section 1.08. If Service is removed, Customer will be responsible for
the expense of removal and installation of new Service before the new Service is re-
installed and activated.
6. PRESSURE AND SUPPLY
CPAU assumes no responsibility for loss or damage because of lack of Water or pressure
and merely agrees to furnish such quantities and pressures as are available in its general
Distribution System. The Service is subject to shutdowns and variations required by the
operation of the Water system and system Demands.
D. FIRE HYDRANTS
1. USE AND DAMAGE OF FIRE HYDRANTS
No Person or Persons, other than those designated and authorized by the proper authority,
or by CPAU, shall open any fire hydrant, attempt to draw Water from it, or in any manner
damage or tamper with it. Any violation of this section will be prosecuted pursuant to
Palo Alto Municipal Code Section 1.08.
a. The following conditions must be met for a Person(s) to draw Water from a public
fire hydrant:
i. Prior to use at a construction site or for any other purpose, a Person must
first apply to CPAU for a Fire Hydrant Meter Permit.
CITY OF PALO ALTO
UTILITIES RULES AND REGULATroNS!
Issued by the City Council
Effective 10-18-2010
Sheet No.2
SPECIAL WATER UTILITY REGULATION
RULE AND REGULATION 21
ii. A deposit will be required on the Hydrant Meter supplied by CP AU per
applicable Water Service Rate Schedule for Fire Hydrants (W-2).
iii. Monthly Meter reading cards must be submitted by the permittee to CPAU
on a timely basis.
iv. Charges to be billed and paid according to CPAU's applicable Water
Service Rate Schedule for Fire Hydrants (W-2).
v. All Water taken from the fire hydrant must be registered on the hydrant
Meter. It is illegal to draw Water from a hydrant without the hydrant
Meter attached to :t;ecord the volumes.
h. FINES AND PENALTIES
i. Any Person(s) drawing Water from a public fire hydrant who does not
meet either of the conditions described in Rule 21 D.1.a.i. or Rule 21
D.1.a.v shall be subject to criminal prosecution.
ii. Failure to submit timely Meter reading cards may result in forfeiture of all
or part of the Customer deposit.
iii. Failure to return the hydrant Meter at the end of the appropriate period
may result in additional Charges per Water Service Rate Schedule for Fire
Hydrants (W-2).
iv. Individual or companies who are found in violation of Rule 21 D.1.a.i or
Rule 21 D.1.a.von more than one occasion in a three year period may be
denied any use of fire hydrant Water Service. Such Customer may use
reclaimed Water if available.
2. MOVING OF FIRE HYDRANTS
When a fire hydrant has been installed in the location specified by the proper authority,
CPAU has fulfilled its obligation. If a property owner or other party desires a change in
the size, type, or location of the hydrant, the owner shall bear all the cost of such changes,
without refund. Any change in the location of a fire hydrant must be approved by the
City of Palo· Alto Fire Department and the Utilities Department. The cost of relocation
shall be as estimated by the Engineering Manager for Water-Gas-Wastewater. This cost
estimate must be paid before CP AU will begin relocation.
CITY OF PALO ALTO
UTILITIES RULES AND REGULATroNS:
Issued by the City Council
Effective 10-18-2010
Sheet No.3
SPECIAL WATER UTILITY REGULATION
RULE AND REGULATION 21
E. WATER SYSTEM PROTECTION
1. CROSS CONNECTION CONTROL PROGRAM
The purpose of the Cross Connection Control Program is to protect the City's potable
Water from contamination. The connection of unprotected actual or potential connections
between the potable Water system and any source or system containing unapproved
Water, or any substance that presents a potential danger is prohibited. This program is
operated in accordance with the current State Department of Public Health Regulations
contained in Title 17 of the California Administrative Code, Chapter 5, Subchapter 1,
Group 4, Sections 7583 through 7604 (hereafter "State Regulations"). This Cross
Connection Control Program document drafted in accordance with State Regulations, is
available on the City's website and on file with the City Clerk.
The Director of Utilities is authorized to terminate water service to any Customer who
fails to comply with this Rule and any other City Cross Connection Program
requirements after notice is given.
2. BACKFLOW PROTECTION
a. GENERAL REQUREMENTS
1. Backflow protection assemblies must be approved by the University of
Southern California's (USC) Foundation for Cross Connection Control. A
list of approved assemblies and other background information can. be
found at the Foundation's website:
http://www .usc.edul deptlfccchr/list.html.
11. The Customer must install the required Water backflow prevention
assemblies in accordance with CPAU and State of California
requirements.
111. The backflow prevention assemblies are owned and maintained by the
Customer.
IV. The Customer is responsible for annual testing of the backflow prevention
assemblies and any required repair or replacement. Additional information
about annual testing requirements is provided in section E(2)( e) of this
Rule.
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-18-2010
Sheet No 4
SPECIAL WATER UTILITY REGULATION
RULE AND REGULA nON 21
v. As a protection to the Customer's plumbing system, the Customer must
install a suitable pressure relief valve and pressure expansion tank between
a backflow assembly and any natural gas, electric or solar water heater on
the Customer's Water system.
VI. The backflow prevention assembly must be installed in a Utility-approved
location on private property at a location within 5 feet of the Point. of
Service (property line/Meter) unless a different location is specified
elsewhere in this Rule or an exception has been granted by the Water, Gas,
and Wastewater Engineering Manager.
b. EXISTING SERVICES
Existing Water connections (commercial, industrial or domestic) will be required
to install Reduced Pressure Principle Assembly (RPPA) backflow prevention
assembly at the Customers expense within 90 days of notification by CPAU
when:
1. Salt Water, or Water otherwise polluted, is available for industrial or fire
protection purposes, or where fresh Water hydrants are or may be installed
on piers or docks;
11. The Premises are now or may be engaged in processes which produce
industrial wastes, or where the Premises are or may be engaged in
handling Wastewater or any other dangerous substances;
111. Gray Water, stored rain Water, well Water, reclaimed Water or other
unapproved source of Water is present on the premise for irrigation or
other uses.
IV. An approved Water supply line terminates at a pier head outlet which is
used to supply vessels at piers or Water fronts. These installations shall be
located where they will prevent the return of any Water from a vessel or
any other source into the approved Water supply line.
v. The Customer is· engaged in the handling of dangerous or corrosive
liquids, or industrial or process Water.
VI. Circumstances are such that there is danger of backflow of Wastewater or
OF PALO ALTO
other contaminated liquids through plumbing fixtures of Water-using or
treating equipment, or storage tanks and reservoirs. Such circumstances
. include, but are not limited to, dangers present at the following types of
facilities or caused by the following types of activities:
a) . Non-single family home swimming pools;
b) Sewage ejector pumps;
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-18-2010
Sheet No 5
SPECIAL WATER UTILITY REGULATION
RULE AND REGULATION 21
c) Boilers, hydronic or solar heating systems;
d) Animal veterinary or grooming facility;
e) Automotive maintenance, washing, painting or fueling facility;
f) Oil, gas, radioactive material or chemical storage, transmission
or production facilities;
g) Barber / beauty shop or nail salon;
h) Restaurant, bar, or brewery;
i) Printer copy/repro graphic serVice or film processing/developing;
j) Dental, medical facility, nursing home, sanitarium or hospital;
k) Manufacturing or processing plant;
1) Dry cleaning or laundry facility;
m) Portable cleaning/spray equipment;
n) Steam cleaning facilities;
0) Swamp cooler, cooling tower or water chillers;
p) Water booster pump;
q) Tanker truck yards or Water storage tanks;
r) Florist or plant nursery;
s) Non-single family home fountain or lagoon;
t) Grocery store;
u) Gym, hot tub or spa facility;
v) Concrete, Asphalt, sand or gravel plant;
w) Laboratory, school or college;
x) Metal Manufacturing, processing, plating, cleaning or
fabrication;
y) Morgue, mortuary, graveyard, crematorium or funeral home;
z) The Water Gas Wastewater Operations has determined that the
service connection poses a contamination risk to the Water
Distribution System.
c. SPECIAL CONDITIONS -EXISTING SERVICES
When a Customer is required to install a backflow prevention assembly in the
University A venue or California Avenue Business Districts, the Customer may, at
the discretion of the Director of Utilities and the Chief Building Official be
allowed to install backflow prevention assemblies in the Public Right-of-Way
(PROW) where no feasible placement alternative exists outside of the PROW.
The customer must obtain an Encroachment Permit from the City of Palo Alto
prior to the installation of the backflow prevention assembly. Installations in the
PROW are subject to the following conditions:
OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-18-2010
Sheet No 6
SPECIAL WATER UTILITY REGULATION
RULE AND REGULATION 21
1. Existing building structure must contain a vertical wall at the edge of the
PROW
11. The Customer must obtain insurance with minimum liability coverage of
$1,000,000 each for personal injury and property damage, and shall
indemnify and hold the City harmless via a contractual liability
endorsement.
111. The backflow prevention assemblies are limited to sizes rated as 2 inches
or smaller.
IV. BP As located in the PROW shall encroach the minimum distance
necessary for compliance. In no event shall right-of-way sidewalk access
be restricted to less than five (5) feet of clearance.
v. Any BPA proposed in the PROW may, at the discretion of the Director of
Planning and Community Environment, require mitigation to paint the
equipment to match the building, provide for a screening cage, or other
techniques to minimize visual impacts along the streetscape.
vi. Any BPA proposed in the PROW to be located on the exterior of a
designated historic building requires review and approval by the
Department of Planning and Community Environment, in addition to other
approvals.
vii. In the event of a future building improvement, the Encroachment Permit
will be revoked as a component of development approval, and the
Applicant will be required to move the backflow prevention assembly off
of the Public ROWand onto the Applicant or building owner's property.
d. NEW OR UPGRADED SERVICES
The installation of a backflow prevention assembly is required before the
connection of a new or upgraded Service under any of the following conditions:
1. For single family Residential Customers, an approved Reduced Pressure
Principle Assembly (RPP A) backflow prevention assembly is required
when an unapproved fresh Water supply is available from a well, spring,
reservoir, or other source. This condition applies even if the unapproved
source is not connected to the Utilities Water System. If the Customer
agrees to abandon this other supply, agrees to remove all pumps and
piping necessary for the utilization of this supply, and properly abandons
this supply source, the installation of backflow protective assembly may
not be required.
CITY OF P A.LO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-18-2010
Sheet No 7
SPECIAL WATER UTILITY REGULATION
RULE AND REGULATION 21
11. For commercial or industrial fire services, a RPPA backflow prevention
assembly must be installed for any existing or new Water connections.
Alternative backflow prevention assemblies may be substituted after
approval by the The Water Gas Wastewater Engineering Manager.
111. Single and multi-family residences that have fire sprinklers that are
connected to the domestic Water Service shall have an approved Double
Check Valve backflow prevention assembly installed on the main Water
Service connection.
IV. Commercial, industrial, retail, and multi-unit housing (more than 4 units in
building) Water Service Applicants shall install a (RPPA) backflow
prevention assembly for all Water Services.
v. Whenever the Water Gas Wastewater Operations Manager has determined
that the connection poses a contamination risk to the Water Distribution
System.
e. INSPECTION AND TESTING OF BACKFLOW PREVENTION
ASSEMBLIES
1. The owner of any Premises with required backflow prevention assemblies
must have them inspected by a Backflow Protection Assembly Tester
certified by the California-Nevada Section of the American Water Works
. Association at least once annually.
11. Backflow prevention assemblies ,must be inspected and tested before a
service is connected.
111. Customer must provide proof that the backflow prevention assembly that
they have installed is on USC's Foundation for Cross Connection Control
approved list.
IV. Backflow prevention assemblies must be serviced annually, and over-
hauled or replaced whenever they are defective.
v. The annual testing Certificates shall be sent to the Water Transmission
Supervisor/Cross Connection Control Officer,City of Palo Alto, P.O. Box
10250, Palo Alto, CA 94301 each year on the anniversary of the device's
initial testing. If the backflow testing Certificate is not received within 90
days of notification by the City of the need for one, the City may contract
for the testing and charge the Customer for the expense, or terminate
Water Service.
VI. All expenses for repair and maintenance of backflow prevention
assemblies shall be borne by the Customer.
OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-18-2010
Sheet No 8
SPECIAL WATER UTILITY REGULATION
RULE AND REGULATION 21
Vll. The City reserves the right to perform additional inspection or testing of
any required backflow prevention assembly as it deems necessary to
protect the Water Distribution System.
f. PLUMBING CHANGES REQUIRED IN SPECIAL CIRCUMSTANCES
In special circumstances, where the Customer is engaged in the handling of
dangerous or corrosive liquids, or industrial or process Water, the Utility may
require the Customer to eliminate certain plumbing or piping connections as an
additional precaution and as a protection t6 the backflow preventive assemblies.
In making plumbing connections beyond the backflow prevention assembly to the
Service, the Customer must comply with Local or State Plumbing Ordinances and
State Re~ulations.
g. BACKFLOWPROTECTION ON ADDITIONAL WATER SUPPLY LINES
Whenever CPAU or State regulations require backflow protection on a Water
supply line entering a Customer's Premises, any and all water supply lines from
the Utility's mains entering such Premises, buildings, or structures shall be
protected by a City approved backflow prevention assembly in conformance with
State Regulations, regardless of the use of the additional Water supply lines.
h. PROTECTION AGAINST FLOWS BETWEEN DIFFERENT MAINS
Two or more Services supplying Water from different mains to the same building
structure or Premises through which water may flow between mains must have an
approved backflow prevention assembly on each Water Service installed at
locations defined in this Rule.
i. DISCONTINUANCE OF SERVICE
Water Service to any Premises may be immediately discontinued by the Utility if
the backflow prevention assemblies have not met the conditions outlined in this
Rule or the Water Gas Wastewater Operations Manager has determined that
situation could cause contamination of the Water Distribution System. Service
will not be restored· until Water Gas Wastewater Operations Manager has
determined that any conditions that compromise the safety of the Water system
have been corrected.
G. IRRIGATION METERS
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-18-2010
Sheet No 9
SPECIAL WATER UTILITY REGULATION
RULE AND REGULATION 21
Water Service for all new and rehabilitated industrial, commercial, and institutional landscaping
and new and rehabilitated multi-family common areas requiring a permit or review by the City
shall be provided by a separate irrigation Meter. This Meter shall be designated as an irrigation
Account and no other utilities will be billed on such Accounts. The Customer shall pay for the
additional Service according to Rate Schedule W-5.
H. WASTE OF WATER
In the event that waste of Water shall be found, due to leaking, defective, or wasteful equipment,
the City will notify the Customer.· If the Customer does not take reasonable steps to curb this
waste, the City shall have the right, after giving due notice, to discontinue Service to the
Customer until the repairs have been completed on the Customer's equipment.
I. MAINTENANCE OF THE WATER DISTRIBUTION SYSTEM
1. CPAU RESPONSIBILITY
CPAU will be responsible for the maintenance of the Water Service from, and including,
the Water Meter located near the street curb to, and including, the Water main and the
remainder of the system, except that the expense of Water maintenance resulting from
violation of the Municipal Code or these Rules and Regulations may be assigned to the
responsible party, or CPAU may refuse to perform such maintenance. In easements,
CPAU's responsibility is limited to the Water mains and Water Meters.
2. CUSTOMER RESPONSIBILITY
a. The· Customer will be responsible for replacing Services that are not current standard
size or a current standard material when building a new structure or constructing
additions/remodels that have a value greater than 50% of the current value of the existing
structures on the lot based on Federal Emergency Management Agency flood plain
methodology. Reconnection to the City Water Services will only be allowed on current
standard Services. All other Services must be replaced, per the WGW Utility Standards,
from the main up to and including the Water Meter box at the fees listed in the Utility fee
schedule.
b. The Customer will be responsible for maintenance of the on-site Water Distribution
System downstream of the Water Meter in accordance with the Municipal Code,
including the Water Meter vaults and boxes.
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-18-2010
Sheet No 10
(END)
SPECIAL WATER UTILITY REGULATION
RULE AND REGULATION 21
c. It shall be the responsibility of the Customer to keep the top of the Water Meter, vault
or box at ground level and clear of vegetation or any other obstruction. If after a 30 day
notice from the Utility, the Customer has not caused the Meter, vault, or box to be at
ground level and clear of vegetation or obstructions, the Utility will perform the work at
the Customer's expense. The Customer will be invoiced for the actual cost to the Utility
for the work.
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 10-18-2010
Sheet No 11
'ATTACHl\1ENT B
SPECIAL WATER UTILITY REGULATION
RULE AND REGULATION 21
A. GENERAL
In addition to the general requirements outlined in Rule and Regulation 18 for Utility Service
Connections and Facilities on Customers' Premises, the following is required: "
B. WATER SERVICE CONNECTION REQUIREMENTS
1.FACILITIES ON CUSTOMER PREMISES
ft. The Customer shall install the required Water backflmv prevention ,assemblies 011
the Customer's property in aecordance .. vith CPIW and State of California
requirements. The baekflm;v preventer assemblies shall be ovt'Red and maintained
by the Customer. The Customer shall be responsible for the annual testing of the
backf10w preventer assemblies and any required repair or replacement.
b. The Customer must have the required Water backf10w preventers certified
by a licensed backflow prevente!: tester and provide the City '<"lith original signed
Certificates for each baokf1o'N preventsI' on the Customer's Premises.
e. As a protection to the Customer's plumbing system, a suitable pressure relief
valve must be installed and maintained by the Customer' at the Customer's
expense, and at the expense of the Customer, \vhen backflow prevention devices
are used. The relief valve shall be installed beh'v'een the bac1dlO'tv device and the
Water heater.
C. SERVICE CONFIGURATIONS
1. NUMBER OF SERVICES PER BUILDING
Only one Water Service line is allowed for a building or other Customer Premises, except
additional water services may be provided for commercial properties at CP AU's
discretion, if the following conditions apply:
a. Space is not available in the Public Right-of-Way at anyone location for the
number of Water Meters required to serve the property.
b. Additional Water Services are needed for irrigation and fire Water Services.
CITY OF PALO ALTO
UTILITIES RULES AND REGULATT()N~
Issued by the City Council
Effective 6 01 201010-18-2010
Sheet No.1
SPECIAL WATER UTILITY REGULATION
RULE AND REGULATION 21
DC. AUTOMATIC FIRE SERVICE
1. PURPOSE
An automatic fire Service connection in 2-inch to 10-inch size will be furnished only if .
adequate Provisions are made to prevent the use of Water for purposes other than fire
extinguishing.
2. APPLICATION AND AGREEMENT
The Applicant will be required to sign an Application for CPAU connection and agree to
operate the fire service in accordance with these Rules and Regulations. The Applicant,
at the Applicant's expense, will be required to install an approved backflow protection
assembly in accordance with Title 17 of the California Administrative Code, Section FE
of this Rule and Regulation, and City standards.
3. INSTALLATION CHARGES
The Applicant will be required to make payment in advance of construction in
accordance with CPAU's applicable Connection Fee Rate Schedule.
4. QUANTITATIVE CHARGES
a. Water for fires: no Charges will be made for Water used to extinguish accidental
fires.
b. Other: Water used for any purpose other than extinguishing fires or testing or
repairing fire extinguishing facilities, shall be paid for under Water Rate Schedule
W-3. Unauthorized Water used shall be subject to criminal prosecution as set
forth in Water Rate Schedule W-3.
5. VIOLATION OF AGREEMENT
If Water is used from a fire service in violation of the agreement or of these
Regulatiensthis Rule and Regulation, CP AU may, at its option, levy a fine and -'.
discontinue and remove a Service in addition to charging for the Water illegally used, and
prosecute pursuant to Palo Alto Municipal Code Section 1.08. If Service is removed,
Customer will be responsible for the expense of removal and installation of new Service
before the new Service is re-installed and activated.
CITY OF PALO ALTO
UTILITIES RULES AND REGULATr(lN~
Issued by the City Council
Effective 6 01 201010-18-2010
Sheet No. 2
SPECIAL WATER UTILITY REGULATION
RULE AND REGULATION 21
6. PRESSURE AND SUPPLY
CPAU assumes no responsibility for loss or damage because of lack of Water or pressure
and merely agrees to furnish such quantities and pressures as are available in its general
Distribution System. The Service is subject to shutdowns and variations required by the
operation of the Water system and system Demands.
ED. FIRE HYDRANTS
1. USE AND DAMAGE OF FIRE HYDRANTS
No Person or Persons, other than those designated and authorized by the proper authority,
or by CPAU, shall open any fire hydrant, attempt to draw Water from it~ or in any manner
damage or tamper with it. Any violation of this regulationsection will be prosecuted
accordingpursuant to baw;Palo Alto Municipal Code Section l.08.
a. The following conditions must be met for a Person(s) to draw Water from a public
fire hydrant:
-1:1. Prior to use at a construction site or for any other purpose, a Person must
first apply to CP AU for a Fire Hydrant Meter Permit.
2-ii. A deposit will be required on the Hydrant Meter supplied by CP AU per
applicable Water Service Rate Schedule for Fire Hydrants (W-2).
d-iii. Monthly Meter reading cards must be submitted by the permittee to CP AU
on a timely basis.
4iv. Charges to be billed and paid according to CPAU's applicable Water
Service Rate Schedule for Fire Hydrants (W-2).
~v. All Water taken from the fire hydrant must be registered on the hydrant
Meter. It is illegal to draw Water from a hydrant without the hydrant
Meter attached to record the volumes.
b. FINES AND PENALTIES
-1:1. Any Person(s) drawing Water from a public fire hydrant who does not
meet either of the conditions described in Rule 21 ED.l.a.hi. or Rule 21
ED.1.a . .§.;.y shall be subject to criminal prosecution.
--.. -------------~---------------------
CITY OF PALO ALTO
UTILITIES RULES AND REGULATroN~
Issued by the City Council
Effective 6 01 201010-18-2010
Sheet No.3
SPECIAL WATER UTILITY REGULATION
RULE AND REGULATION 21
2-ll. . Failure to submit timely Meter reading cards may result in forfeiture of all
or part of the Customer deposit.
~iii. Failure to return the hydrant Meter at the end of the appropriate period
may result in additional Charges per Water Service Rate Schedule for Fire
Hydrants (W -2).
4iv. Individual or companies who are found in violation of Rule 21 ED.l.a.hi
or Rule 21 ED.l.a.S.yon more than one occasion in a three year period
may be denied any use of fire hydrant Water Service. Such Customer may
use reclaimed Water if available.
2. MOVING OF FIRE HYDRANTS
When a fire hydrant has been installed in the location specified by the proper authority,
CP AU has fulfilled its obligation. If a property owner or other party desires a change in
the size, type, or location of the hydrant, the owner shall bear all the cost of such changes,
without refund. Any ch~ge in the location of a fire hydrant must be approved by the
City of Palo Alto Fire Department and the Utilities Department. The cost of relocation
shall be as estimated by the Engineering Manager for Water-Gas-Wastewater. This cost
estimate must be paid before CP AU will begin relocation.
F. CROSS CONNECTIONS
E. WATER SYSTEM PROTECTION
1. CROSS CONNECTION CONTROL PROGRAM
No physieal CORRection between the potable Water supply of the Utility and that of any
Water supply source will be permitted per the eurrent regulations of the The purpose of the
Connection Control Program is to protect the City's potable Water from contamination. The conn
of unprotected actual or potential connections between the potable Water system and any sou
system containing unapproved Water, or any substance that presents a potential danger is proh
This program is operated in accordance with the current State Department of Public Health Regul
contained in Title 17 of the California Administrative Code, Chapter 5, Subchapter 1, Group 4, Se
7583 through 7604 (hereafter "State Regulations"). The Director of Utilities shall prepare i
Cross Connection Control Program document drafted in accordance with State Regulations, whiel
Beis available on the City's website and on file with the City Clerk.
The Director of Utilities is authorized to terminate water service to any Customer
CITY OF PALO ALTO
UTILITIES RULES AND REGULATT{)N~
Issued by the City Council
Effective 6 01 201010-18-2010
Sheet No. 4
SPECIAL WATER UTILITY REGULATION
RULE AND REGULATION 21
who fails to comply with this Rule and any other City Cross Connection Program
requirements after notice is given.
2. BACKFLOW PROTECTION DEVICES REQUIRED
To comply 'lAth State Department of Public Health Services regulations, the Utility requires insta
ef..a. GENERAL REQUREMENTS
i. Backt10w protection assemblies must be approved by the University of So
California's (USC) Foundation for Cross Connection Control approved bac
protection devices when specified herein. A list of approved devicesassem blies anc
background information can be found at the Foundation's WI
http://www.usc.eduideptlfccchrllist.htmi.
1. The opprovedCustomer must install the required Water backflow devieeprev
assemblies in accordance with CPAU and State of California requirements.
i. The backflow prevention assemblies are owned and maintained bv the Customer.
1. The Customer is responsible for ammal testing of the backflow,prevention assembli
any required repair or replacement. AdditiQlJQ,l infOlTI1ation about annual 1
requirements is provided in section E(2)(e) of this Rule.
1. As a protection to the Customer's plumbing system, the Customer must install a Sl
pressure relief valve and pressure expansion tank between a backflow assembly aT
natural gas, electric or solar water heater on the Customer's Water system.
The backflow prevention assembly must be installed in a Utility-approved location on
private property at a location within 5 feet of the Point of Service (property line/Meter)
and approved by the Utility. Suchunless a different location is specified elsewhere in this
~=-::~ an installation shall be completed by, and at the expense oftlle Customer, before
Service \-'{ill beexception has been granted or upgraded under any of the follov/ing
conditions:
o. For single family Residential Customers, an approved reduced pressure principle
assembly (RPPA) backflow device is required, =r.vhen an tmappro'ted fresh Water
supply is available (not connected to the domestic water supply) from a '.veIl,
spring, reservoir, or other source. If the Customer agrees to abandon this other
supply and agrees to remove all pumps and piping necessary for ~the utilization
of this supply, the installation of backflow protective <:wAces v!ill not be required.
b. For commercial or industrial fire Services, an RPPl\: detector backflow device
shall be installed for the existing or nevI Water connections for the fIre system.
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6 1 201010-18-2010
Sheet No 5
SPECIAL WATER UTILITY REGULATION
RULE AND REGULATION 21
Alternative baekfloJ.v devices may be installed only at the direction of the Utilities
WOW Senior Project Engineer for Customer Service. RPPl\ detector backflo'tv
devices shall be installed on the o"Nnerts property adjacent to the Point of Service
within 5 feet of the propeliy line.
vl.e. Single and multi family residences that are fire sprinklered off the domestic "Vater
Service shall have an approved double check assembly installed on the main Water Service connection.
Double check assemblies shall be installed on the ownerts property adj acent to the Point of Service
\-,,[thin 5 feet of the property line. , Gas, and Wastewater Engineering Manager.
d. Commercial, industrial, retail, and multi unit heusing (more than 4 units in
building) Water Service Applicants shall install RPPA backflO'tv protection for all
Water Services inoluding irrigation. The RPPA backflO'tv preventer shall be
installed on the OVl''llertS property adjacent to the Point of Service within 5 feet of
the property line.b. .EXISTING SERVICES
e. Existing Water connections (commercial, industrial or domestic) will be required to
install Reduced Pressure Principle Assembly (RPP A} backflow
proteetionprevention assenibly at the Customers expense within 90 days of
notification by CP AU when:
i. Salt Water, or Wafer otherwise polluted, is available for
industrial or fire protection purposes, or where fresh Water
hydrants are or may be installed on piers or docks;
11. The Premises are now or may be engaged in processes
which produce industrial wastes, or where the Premises are
or may be engaged in handling Wastewater or any other
dangerous substances;
iii,\Vhere the circumstances are such that there is special danger of backflow of
Wastev{ater or other contaminated liquids through plumbing fixtures of
'NateI' using or treating equipment, or storage tanks and reservoirs;
CITY OF PALO ALTO
Ht-:lV. Where grayGray Water, stored raimvater, rain Water. well
Water, reclaimed Water or other unapproved source of
Water is tlSCdpresent on the premise for irrigation or toilet
flushingother uses.
fv.:.v. Where anAn approved Water supply line terminates at a
pier head outlet which is used to supply vessels at piers or
Water fronts. These installations shall be located where
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6 1 201010-18-2010
Sheet No 6
SPECIAL WATER UTILITY REGULATION
RULE AND REGULATION 21
they will prevent the return of any Water from a vessel or
any other source into the approved Water supply line.
v.vi. ',\There the The Customer is engaged in the handling of
dangerous or corrosive liquids, or industrial or process
Water.
The Director of Utilities is authorized to terminate v.'ater service to any customer
:v,rho fails to comply \vith this rule and any other City Cross Connection Program
requirements after notice is given.
f. Any Water connection '>'1ill be immediately shut off if found to be cross connected
anywhere on" the property 'Nith an unapproved source of Water or other
contaminant.
g. Where backflovi pre\'ention is required, the Customer shaH provide the City with
the USC's Foundation for Cross Connection Control approval for the device and
have the device certified by a State licensed backflow device tester before the
Water Service is activated.
3. PLUMBING CHANGES REQUIRED IN SPECIf .. L CIRCUMSTANCES
In special circumstances, where the Customer is engaged in the handling of especially
dangerous or corrosive liquids, or industrial or process Water, the Utility may require the
Customer to eliminate certain plumbing or piping connections an an additional precaution
and as a protection to the baekfl0'N preventive devices. In making plumbing comlcctions
beyond the backflO\v pre'/tmtion device to the Service, the Customer shall be guided
entirely by local or state plumbing ordinances and the state regulations.
4. BACKFLO'¥ PROTECTION ON ADDITIONAL '\lATER SUPPLY LINES
Whenever CPAD or State regulations require backflow protection on a Water supply line
entering a Customerts Premises, then any and all water supply lines from the Utili:ty!s
mains ent~ring such Premises, buildings, or structures shall be protected by a City
approved backtlmv device in conformance with state regulations, regardless of the use of
the additional ',Vater supply lines.
5. PROTECTION AGAINST INTERSTREET MAIN FLO¥/
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6 1 201010-18-2010
Sheet No 7
SPECIAL WATER UTILITY REGULATION
RULE AND REGULATION 21
'1\"0 or more Services supplying '.Vater from different street mains to the same building
stnlCture or Premises through which an inter street main flow may occur shall have an
approved back-flow device on each Water Service to be located adjacent to and on the
private property side of the respective Meter or Service Lines.
6. INSPECTION OF BACKFLO'V PROTECTIVE DEVICES
1. ft. The owner of any Premises on which requin~d back flow preventers or
protective devices are installed shall have the device inspected by a certified bac
device tester reeognized by the State of California and on file with the City of Pal,
for Water tightness and reliability at least once every year in conformance v.i
regulations of the State Department of Public Health. The devices shallCircums
are such that there is danger of backflow of Wastewater or other contaminated 1
through plumbing fixtures of Water-using or treating equipment, or storage tanl
reservoirs. Such circumstances include. but are not limited to, dangers present
following types of facilities or caused by the following types of activities:
a) Non-single family home switmning pools:
a) Sewage ejector pumps:
a) Boilers, hydronic or solar heating systems;
a) Animal veterinary or grooming facility:
a) Automotive maintenance, washing, painting or fueling facility:
a) Oil, gas. radioactive material or chemical storage, transmission or production faci
a) Barber / beauty shop or nail salon;
a) Restaurant, bar, or brewery;
. a) Printer copy/reprographic service or film processing/developing;
a) Dental. medical facility, nursing home, sanitarium or hospital;
a) Manufacturing or processing plant;
a) Dry cleaning or laundry facility;
a) Portable cleaning/spray equipment;
a) Steam cleaning facilities;
a) Swamp cooler, cooling tower or water chillers:
a) Water booster pum.n.;.
a) Tanker truck yards or Water storage tanks;
a) Florist or plant nursery;
a) Non-single family home fountain or lagoon;
a) Grocery store;
a) Gym. hot tub or spa facility;
a) Concrete. Asphalt. sand or gravel plant;
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6 1 201010-18-2010
Sheet No 8
SPECIAL WATER UTILITY REGULATION
RULE AND REGULATION 21
a) Laboratory. school or college;
a) Metal Manufacturing, processing, plating, cleaning or fabrication;
1. Morgue. mortuary. graveyard. crematorium or funeral home;
1. The Water Gas Wastewater Operations has determined that the service connection
. a contamination risk to the Water Distribution System.
c. SPECIAL CONDITIONS -EXISTING SERVICES
When a Customer is required to install a backf10w prevention assembly in the University A
or California Avenue Business Districts, the Customer may, at the discretion of the Dire(
Utilities and the Chief Building Official be allowed to install backflow prevention assemb
the Public Right-of-Way (PROW) where no feasible placement alternative exists outside
PROW. The customer must obtain an Encroachment Permit from the City of Palo Alto p
the instaUf!tion of the backflow prevention assembly. Installations in the PROW are suh
the following conditions:
1. Existing building stLUcture must contain a vertical wall at the edge of the PROW
1. The Customer must obtain insurance with minimum liability coverage of $1,0(
each for personal injury and property damage, and shall indemnify and hold thl
harmless via a contractual liability endorsement.
1. The backflow prevention assemJ:>Iies are limited to sizes rated as 2 inches or smaller
W:1. BPAs located in the PROW shall encroach the minimum distance necessru
complirulce. In no event shall right-of-way sidewalk access be restri9ted to less the
(5) feet of clearance.
1. Any BP A proposed in the PROW may, at the discretion of the Director of Plannir
Community Environment. require mitigation to paint the equipment to mate
building, provide for a screening cage, or other techniques to minimize visual it
along the streetscape.
1. Any BPA proposed in the PROW to be located on the exterior of a designated h
building req LIires review and approval by the Department of Plmming and Comr
Environment, in addition to other approvals.
roll. In the event of a future building improvement, the Encroachment Pemlit will be re
as a component of development approval, and the Applicant will be required to mo
backflow prevention assembly off of the Public ROWand onto the Applicant or bt
owner's property_
d. NEW OR UPGRADED SERVICES
The installation of a backflow prevention assembly is required before the connection of a I
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6 1 201010-18-2010
Sheet No 9
SPECIAL WATER UTILITY REGULATION
RULE AND REGULATION 21
upgraded Service under any oBhe following conditions:
1. For single family Residential Customers, an approved Reduced Pressure Pri
Assembly (RPPA) backflow prevention assembly is required when an unapprovec
Water supply is availC!ple from a well, spring, reservoir, or other source. This cor
applies even if the unapproved source is not comlected to the Utilities Water Syst
the Customer agrees to abandon this other supply; agrees to remove all pumps and.
necessary for the utilization of this supply. and properly abandons this supply soure
installation of back flow protective assembly mar not be required.
1. For commercial or industrial fire servic(;!~, a RPP A backflow prevention assembl)
be installed for any existing or new Water connections. Altemative back flow prev
assemblies may be substituted after approval by the The Water Gas Wast(
Engineering Manager.
1. Single and multi-family residences that have fire sprinklers that are cOlmected
domestic Water Service shall have an approved Double Check Valve bac
prevention assembly installed on the main Water Service comlection.
1. Commercial, industriaL retail, and multi-unit housing (more than 4 units in bui
Water Service Applicants shall install a (RPPA) backflow prevention assemblv .
Water Services.
i. Whenever the Water Gas Wastewater Operations Manager has determined tll
connection poses a contamination risk to the Water Distribution System.
c. INSPECTION AND TESTING OF BACKFLOW PREVENTION ASSEMBLIES
i. The owner of any Premises with required backflow prevention assemblies mus
them inspected by aBackflow Protection Assembly Tester certified by the CaW
Nevada Section of the American Water Works Association at least once annually.
1. Backflow prevention assemblies must be inspected and tested before a serv
connected.
1. Customer must provide proof that the backflow prevention assembly that they have
installed is on USC's Foundation for Cross Connection Control approved list.
1. Backt10w prevention assemblies must be serviced ammally, and overhauled or rel
whenever they are fOll11d defective and all expense and responsibility fur repa
maintenance shall be borne by the Customer. .:.
:v.The annual testing Certificates shall be sent to the Water Transmission Supervisor/Cross Connection
Control SpecialistOfficer, City of Palo Alto, P.O. Box 10250, Palo Alto, CA 94301 each year on the
anniversary of the device's initial testing. If the backflow testing Certificate is not received within 90
days of notification by the City of the need for one, the City will-may contract for the testing and charge
the customerCustomer for the expense~, or terminate Water Service.
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6 1 201010-18-2010
Sheet No 10
SPECIAL WATER UTILITY REGULATION
RULE AND REGULATION 21
1. b.--All expenses for repair and maintenance of backflow prevention assemblies sl
borne by the Customer.
¥if... The City reserves the right to perform additional inspection or testing of any required backflow
protection devicesprevention assembly as it deems necessary to protect the Water Distribution System.
f. PLUMBING CHANGES REQUIRED IN SPECIAL CIRCUMSTANCES
-11n special circumstances; where the Customer is engaged in the handling of danger<'
corrosive liquids, or industrial or process Water, the Utility may require the Custor'
eliminate certain plumbing oi piping connections as an additional precaution and as a prot
to the bac1d1ow preventive assemblies. In making plumbing connections beyond the bac
prevention assembly to the Service, the Customer must comply with Local or State PIn'
Ordinances and State Regulations.
g. BACKFLOW PROTECTION ON ADDITIONAL WATER SUPPLY LINES
Whenever CPAU or State regulations require backflow protection on a Water suppl
entering a Customer's Premises, any and all water supply lines from the Utility's mains er
such Premises, buildings, or structures shall be protected by a City approved bac
prevention assembly in conformance with State Regulations, regardless of the use I
additional Water supply lines.
h. PROTECTION AGAINST FLOWS BETWEEN DIFFERENT MAINS
Two or more Services supplying Water from different mains to the same building stmct
Premises through which water may flow between mains must have an approved bac
prevention assembly on each Water Service installed at locations defined in this Rule.
i. DISCONTINUANCE OF SERVICE FOR DEFECTIVE APPARATUS
Water Service to any Premises may be immediately discontinued by the Utility if B:RY
defect is found in the backflow device installationsprevention assemblies have not met
the conditions outlined in this Rule or other protective devices, or if it is foundthe Water
Gas Wastewater Operations Manager has determined that unprotected cross connections
~situation could cause contamination of the Water Distribution System. Service will
not be restored until such defects are Water Gas Wastewater Operations Manager has
determined that any conditions that compromise the safety ofthe Water system have been
corrected by and at the expense of the Customer.
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6 1 201010-18-2010
Sheet No 11
JEND)
SPECIAL WATER UTILITY REGULATION
I RULE AND REGULATION 21
downstream of the Water Meter in accordance with the Municipal Code, including the Water
vaults and boxes.
c. It shall be the responsibility of the Customer to keep the top of the Water Meter, vault
or box at ground level· and clear of vegetation or any other obstruction. If after a 30 day
notice from the Utility, the Customer has not caused the Meter, vault, or box to be at
ground level and clear of vegetation or obstructions, the Utility will perform the work at
the Customer's expense. The Customer will be invoiced for the actual cost to the Utility
for the work.
CITY OF PALO ALTO
UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 6 1 201010-18-2010
Sheet No 13
NOT YET APPROVED
Resolution No. ---Resolution of the Council of the City of Palo Alto
Amending City of Palo Alto Utilities Rule and
Regulation 21 (Special Water Utility Regulation)
Governing the Temporary Installation of Certain
Backflow Prevention Devices in the Public Right-of-Way
ATTACHMENT C I
WHEREAS, pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code,
the Council of the City of Palo Alto may by resolution amend Rule and Regulation 21
(Special Water Utility Regulation) governing the temporary installation of certain
backflow prevention devices in the Public Right-of-Way;
WHEREAS, California Department of Health regulations governing backflow
prevention devices require the completion of all components of the City's Cross
Connection Control Program, including device testing and certification, by December 12,
2010;
WHEREAS, permitting the temporary installation of backflow prevention
devices within the Public-Right-Of-Way at certain locations within the California and
University Avenue Business Districts is needed to ensure compliance with California
Department of Health regulations and the protection of the City's potable water supply;
and
WHEREAS, clarification and reorganization of the City's Cross-Connection
Control Program requirements as outlined in Rule and Regulation 21 will further ensure
compliance with California Department of Health regulations and the protection of the
City's potable water supply.
NOW, THEREFORE, the Council of the City of Palo Alto does hereby
RESOL VE as follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code,
Utility Rule and Regulation 21 (Special Water Utility Regulation) is hereby amended to
read as set forth in the amended Rule and Regulation 21 attached hereto as Exhibit "A"
and incorporated herein by reference. The foregoing Rule and Regulation, as amended,
shall become effective on , 2010. Except as specifically amended by this
resolution, all existing rules and regulations shall remain in full force and effect.
II
II
II
II
1
100930 sh 6051282
NOT YET APPROVED
SECTION 2. The Council finds that the adoption of this resolution does meet
the California Environmental Quality Act's (CEQA) definition of a project, pursuant to
California Public Resources Code Sec. 21065, therefore no environmental assessment is
required.
INTRODUCED AND PASSED: .
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Sr. Deputy City Attorney
100930 sh 6051282
APPROVED:
Mayor
City Manager .
Director of Administrative
Services
Director of Utilities
Director of Public Works
2
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER
DATE: OCTOBER 18,2010
REPORT TYPE: CONSENT
DEPARTMENT:ADMINISTRATlVE
SERVICES
CMR:372:10
SUBJECT: Approval of Three-Year Maintenance Contract with Aeeelll, Inc. in the
Amount of $339,158 for Accela Automation and Aecela Citizen Access for
Web-Based Permits
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or his designee to
execute the attached contract with Accela, Inc, in the amount of $339,158 (112,386 year 1,
113,386 years 2 & 3) for Accela Automation and Acccia Citizen Access (formally known as,
V c1ocityHall), The contract will provide web-based permitting, maintenance, and support of the.
application,
DISCUSSION
Project Description
The work to be performed by Aecela, Inc, is to provide maintenance and support to the City for
Accela Automation (City aecess) and Accela Citizen Access (public access) which are web-
based applications that will allow the City of Palo Alto, contractors, and citizens to apply for,
view, and receive pel'lTlits.
Accela is an important Plllt of its Blueplint Initiative, announced in July 2010, to improve the
Development Center process through teclmology,
This contract is a renewal of the current Accela contract for the permitting activities of Planning,
Building, Building Code Enforcement, Public Works Engineering, Fire (both Fire permits and
inspections, IllId annual permits using the License module), Utilities Engineering (both Water-
Gas-Wastewater and Electric). In addition, Accela allows citizens and contractors to apply for,
check the status of, and receive permits via the Internet on a 24-hour, 7 days per week basis,
regardless of the City's normal business hours,
The modules included in this contract Ill'e as follows:
• Planning entitlements
• Building pelmits and inspections
CMR:372:1O Page I of!
• Building Code Enforcement cases
• Fire permits and inspections
• Public Works permits
• Miscellaneous services permits -Utility permits
• Gov-XM1"
• Accela Classic
• Accela V360
• Accela Citizen Access -ACA
• VelocityHall
The annual maintenance fee is $112,386, year 1, and 113,386, years 2 & 3. This fee is to cover
the processing cost of both the City and public sides of the application and also covers the
maintenance of existing modules installed on the application.
Selection Process
The current permit tracking system is provided by Accela, Inc" there are no other vendors
available or licensed to support the existing system. Aecordingly a sole source justification exists
for this contract.
RESOURCE IMPACT
Flmds for this contract are included in the Technology Fund Fiscal Year 2010/11 budget under
Application Maintenance.
POLICY IMPLICATIONS
This recommendation does not represent any change to existing City policies.
ENVIRONMENTAL REVIEW
These services do not constitute a project under the California Environmental Quality Act
(CEQA).
ATTACHMENTS
Attachment A: Contract ~
PREPARED BY, ~.~
KBPAI
Senior Te nolo 1St
DEPARTMENT HEAD APPROVAL:
Director, Administrative Services
~oiIft ." It: /~-
CITY MANAGER APPROVAL:
JAMES
City Manager
CMR:372:1O Page!.f2
CITY OF PALO ALTO CONTRACT NO. Cl1137911
AGREEMENT BETWEEN THE CITY OF PALO ALTO AND
ACCELA, INC.
FOR PROFESSIONAL SERVICES
Thls Agreement is entered into on this 1 ST day of October, 2010, ("Agreement") by and
between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and
and ACCELA, INC., a California Corporation, located at 2633 Camino Ramon, Suite 120, San
Ramon, CA 94583 (PH)925-659-3200 ("CONSULTANT").
RECITALS
The following recitals are a substantive portion of this Agreement.
A. CITY intends to continue receiving maintenance services for the ACCELA Automation
VelocityHall, now referred to as ACCELA AUTOMATIONTM/AND ACCELA CITIZEN
ACCESSTM, GovXML, IVR, and AA Clasic Web-Based permitting applications, and desires to
engage "CONSULTANT" to provide these maintenance services ("Services").
B. CONSULTANT has represented that it and any subconsultants have the necessary
professional expertise, qualifications, and capability, and all required licenses and/or certifications to
provide the Services.
C. CITY in reliance on these representations desires to engage CONSULTANT to provide the
Services as more fully described in Exhlbit "A", Scope of Services, attached to and made a part of
thls Agreement.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, this
Agreement, the parties agree:
AGREEMENT
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in '
Exhlbit "A" in accordance with the terms and conditions contained in thls Agreement. The
performance of all Services shall be to the reasonable satisfaction of CITY.
SECTION 2. TERM.
The term ofthls Agreement shall be from October 1,2010 through September 30, 2013, unless
terminated earlier pursuant to Section 19 of thls Agreement.
SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of
Services under this Agreement. CONSULTANT shall complete the Services withln the term of this
Agreement and in accordance with the schedule set forth in Exhlbit "A", attached to and made a part
of thls Agreement. Any Services for which times for performance are not specified in this Agreement
Professional Services
Rev. June 2, 2010
shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner
based upon the circumstances and direction communicated to the CONSULTANT. CITY's
agreement to extend the term or the schedule for performance shall not preclude recovery of damages
for delay if the extension is required due to the fault of CONSULTANT.
SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSULTANT for performance of the Services described in Exhibit "A", including both
payment for professional services and reimbursable expenses, shall not exceed Three Hundred
Thirty Nine Thousand One Hundred Fifty Eight Doliars ($339,158.00), at the rate of $112,386
Dollars for Year I and $113,386.00 Dollars per year for year 2 and year 3, payable in quarterly
increments of $28,346.50 Dollars, not inclusive of applicable sales and use taxes, if any. The
applicable compensation and schedule of payment are set out in Exhibit "B", Compensation. In
the event Additional Services are authorized, the total compensation for services and
reimbursable expenses shall not exceed Three Hundred Thirty Nine Thousand Dollars One
Hundred Fifty Eight dollars($339,158.00).
Additional Services, if any, shall be authorized in accordance with and subject to the provisions of
Exhibit "C", Schedule of Rates. CONSULTANT shall not receive any compensation for Additional
Services performed without the prior written authorization of CITY. Additional Services shall mean
any work that is determined by CITY to be necessary for the proper completion of the Project, but
which is not included within the Scope of Services described in Exhibit "A".
CITY may elect to continue its maintenance coverage for additional annual terms by paying to
CONSULT ANT the fees associated with such terms when these are due. Should CITY fail to renew
its maintenance coverage or pay the applicable fees, CONSULTANT reserves the right to withhold
all support. If CITY resume maintenance coverage after one or more periods without such coverage,
CITY will pay an amount equivalent to one hundred ten percent (110%) of all maintenance fees
attributable to the period(s) without coverage, as such fees are calculated based upon pricing in effect
at the time of resumption of maintenance coverage.
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit quarterly
invoices to the CITY due on the payment schedule set forth in Exhibit "B". The information in
CONSULTANT's payment requests shall be subject to verification by CITY. CONSULT ANT shall
send all invoices to the City'S project manager at the address specified in Section 13 below. The
payment terms of all invoices are Net 30 days from the dates of the invoices. CONSULTANT may,
at its sole discretion, suspend its obligations hereunder without penalty until payments for all past-
due billings have been paid in full by CITY.
SECTION 6. OUALIFICATIONS/STANDARD OF CARE. All of the Services shall be
performed by CONSULTANT or under CONSULTANT's supervision. CONSULTANT represents
that it possesses the professional and technical personnel necessary to perform the Services required
by this Agreement and that the personnel have sufficient skill and experience to perform the Services
assigned to them. CONSULT ANT represents that it, its employees and subconsultants, if pennitted,
have and shall maintain during the term of this Agreement all licenses, permits, qualifications,
insurance and approvals of whatever nature that are legally required to perform the Services.
Professional Serviees
Rev. June 2, 2010
All of the services to be furnished by CONSULTANT under this agreement shall meet the
professional standard and quality that prevail among professionals in the same discipline and of
similar knowledge and skill engaged in related work throughout California under the same or similar
circumstances.
SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and
in compliance with all federal, state and local laws, ordinances, regulations, and orders that may
affect in any manner the Project or the performance of the Services or those engaged to perform
Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all
charges and fees, and give all notices required by law in the performance ofthe Services.
SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to CITY, any and
all material errors, omissions, or ambiguities in the work product submitted to CITY, provided CITY
gives notice to CONSULTANT.
SECTION 9. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing
the Services under this Agreement CONSULT ANT, and any person employed by or contracted with
CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an
independent contractor and not an agent or employee of the CITY.
SECTION 10. ASSIGNMENT. The parties agree that the expertise and experience of
CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or
transfer any interest in this Agreement nor the performance of any of CONSULTANT's obligations
hereunder without the prior written consent of the city manager. Consent to one assignment will not
be deemed to be consent to any subsequent assignment. Any assignment made without the approval
of the city manager will be void. Notwithstanding, CONSULTANT may assign its rights and
obligations hereunder for purposes of financing or pursuant to corporate transactions involving the
sale of all or substantially all of its stock or assets.
SECTION 11. SUBCONTRACTING.
CONSULTANT shall not subcontract any portion of the work to be performed under this
Agreement without the prior written authorization ofthe city manager or designee.
CONSULTANT shall be responsible for directing the work of any subconsultants and for any
compensation due to sub consultants. CITY assumes no responsibility whatsoever concerning
compensation. CONSULT ANT shall be fully responsible to CITY for all acts and omissions of a
subconsultant. CONSULTANT shall change or add sub consultants only with the prior approval of
the city manager or his designee.
Professional Services
Rev. June 2,2010
SECTION 12. PROJECT MANAGEMENT. CONSULTANT will assign a designated point
of contact person as the Project Manager to have supervisory responsibility for the performance,
progress, and execution ofthe Services and to represent CONSULTANT during the day-to-day work
on the Project. If circumstances cause the substitution of the project manager, or any other key
personnel for any reason, the appointment of a substitute project manager and the assignment of any
key new or replacement personnel will be subject to the prior written approval of the CITY's project
manager. CONSULTANT, at CITY's request, shall promptly remove personnel who CITY finds do
not perform the Services in an acceptable manner, are uncooperative, or present a threat to the
adequate or timely completion of the Project or a threat to the safety of persons or property.
The City's Project Manager is KB Paige, Administrative Services Department, Information
Technology Division, 250 Hamilton Avenue, Palo Alto, CA 94301, Telephone: 650-329-2384.
The Project Manager will be CONSULTANT's point of contact with respect to performance,
progress and execution of the Services. The CITY may designate an alternate project manager from
time to time.
SECTION 13. DUTIES OF CITY. To assist CONSULTANT in the performance of the
Services, CITY will furnish or cause to be furnished such other available information as maybe
reasonably request by CONSULTANT.
SECTION 14. OWNERSHIP OF MATERIALS. The remedial methods, software updates, and
product information provided to CITY pursuant to this agreement are protected under the laws of the
United States and the individual states and by international treaty provisions. CONSULTANT
retains full ownership in such items and grants to CITY a limited, nonexclusive, nontransferable
license to use the items, subject to the terms and conditions of this agreement and other agreements
between CONSULTANT and CITY.
SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during
the term of this Agreement and for three (3) years thereafter, CONSULTANT's records pertaining to
matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such
records for at least three (3) years after the expiration or earlier termination of this Agreement.
SECTION 16. INDEMNITY.
16.1. To the fullest extent pelmitted by law, CONSULTANT shall
Professional Serviees
Rev. June 2, 2010
protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and
agents (cach an "Indemnified Party") from and against any and all demands, claims, or liability of
any nature, including death or injury to any person, property damage or any other loss, including all
costs and expenses of whatever nature including attorneys fees, experts fees, court costs and
disbursements ("Claims") resulting from, arising out of or in any manner related to performance or
nonperformance by CONSULTANT, its officers, employecs, agents or contractors under this
Agreement, regardless of whether or not it is caused in part by an Indemnified Party.
16.2. Notwithstanding the above, nothing in this Seetion 16 shall be construed to
require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active
negligence, sole negligence or willful misconduct of an Indemnified Party.
16.3. The acceptance of CONSULTANT's services and duties by CITY shall not
operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive
the expiration or early termination of this Agreement.
SECTION 17 . WAIVERS. The waiver by either party of any breach or vio lation of any covenant,
term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not
be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of
any subsequent breach or violation of the same or of any other term, covenant, condition, provision,
ordinance or law.
SECTION 18. INSURANCE.
18.1. CONSULTANT, at its sale cost and expense, shall obtain and maintain, in full
force and effect during the term ofthis Agreement, the insurance coverage described in Exhibit "D",
Insurance Requirements. CONSULTANT and its contractors, if any, shall obtain a policy
endorsement narhing CITY as an additional insured under any general liability policy or policies.
18.2. All insurance coverage required hereunder shall be provided through carriers
with AM Best's Key Rating Guide ratings of A-: VII or higher which are licensed or authorized to
transact insurance business in the State of California. Any and all contractors of CONSULTANT
retained to perform Services under this Agreement will obtain and maintain, in full force and effect
during the term of this Agreement, identical insurance coverage, naming CITY as an additional
insured under such policies as required above.
18.3. Certificates evidencing such insurance shall be filed with CITY concurrently
',;vith the execution of this Agreement. The certificates will be subjeetto the approval ofCITY'g Risk
Manager and will contain an endorsement stating that the insurance is primary coverage and will not
be canceled, or materially redueed in eoverage or limits, by the insurer except after filing with the
Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification, with ten
(10) days' notice for non-payment of premium, CONSULT ANT shall be responsible for ensuring
that current certificates evideneing the insurance are provided to CITY's Purchasing Manager during
the entire term of this Agreement.
18.4. The procuring of such required policy or policies of insurance will not he
construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions
of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be
obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as
a result of the Services performed under this Agreement, including such damage, injury, or loss
arising after the Agreement is terminated or the term has expired.
SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1. The City Manager may suspend the performance ofthe Services, in whole or
in part, or terminate this Agreement, with or without cause, by giving thirty (30) days prior written
notice thereof to CONSULTANT. Upon receipt of such notice, CONSULT ANT will immediately
discontinue its performance of the Services.
19.2. CONSULTANT may terminate this Agreement or suspend its performance of
the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a
substantial failure of performance by CITY.
19 .3. Upon such suspension or tennination, all rights granted to CITY are cancelled
and revert to CONSULTANT.
19.4. No payment, partial payment, acceptance, or partial acceptance by CITY
will operate as a waiver on the part of CITY of any of its rights under this Agreement.
19.5 Severability and Amendment If any particular provision of this MA is
determined to be invalid or unenforceable, that determination will not affect the other provisions of
this MA, which will be construed in all respects as if the invalid or unenforceable provision were
omitted. No extension, modification, or amendment of this MA will be effective unless it is
described in writing and signed by the Parties.
SECTION 20. NOTICES.
All notices hereunder will be given in writing and mailed, postage prepaid, by
certified mail, addressed as follows:
To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
With a copy to the Purchasing Manager
To CONSULTANT: Attention of the Contracts Administrator
at the address of CONSULTANT recited above
SECTION 21. CONFLICT OF INTEREST.
21.1, In accepting this Agreement, CONSULTANT covenants thatit presently has
no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would
conflict in any manner or degree with the performance of the Services.
21.2. CONSULTANT further covenants that, in the performance of this Agreement,
it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT
certifies that no person who has or will have any financial interest under this Agreement is an officcr
or employee of CITY; this provision will be interpreted in accordance with the applicable provisions
of the Palo Alto Municipal Code and the Government Code of the State ofCaliforuia.
21.3. If the Project Manager determines that CONSULTANT is a "Consultant" as
that term is defined by the Regulations ofthe Fair Political Practices Commission, CONSULTANT
shall be required and agrees to file the appropriate financial disclosUre documents required by the
Palo Alto Muuicipal Code and the Political Reform Act.
SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section
2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not
discriminate in the employment of any person because of the race, skin color, gender, age, religion,
disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status,
weight or height of such person, CONSULTANT acknowledges that it has read and understands the
provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination
Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section
2,30,510 pertaining to nondiscrimination in employment.
SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE
REQUIREMENTS. CONSULTANT shall comply with the City's Environmentally Preferred
Purchasing policies which are available at the City's Purchasing Department, incorporated by
reference and may be amended from time to time. CONSULTANT 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, Consultant shall comply with the following zero waste
requirements:
• All printed materials provided by Consultant to City generated from a personal
computer and printer including but not limited to, proposals, quotes, invoices,
reports, andpubJic education materials, shall be double-sided and printed on a
minirmun of30% or greater post-consumer content paper, unless otherwise appmved
by the City's Project Manager. Any submitted materials printed by a professional
printing company shall be a minimum of30% or greater post-consmnermaterial and
printed with vegetable based inks,
• Goods purchased by Consultant 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 Consultant, at no additional
cost to the City, for reuse or recycling. Consultant shall provide documentation from
the facility accepting the pallets to verify that pallets are not being disposed.
SECTION 24. NON.APPROPRIATION
24.1. 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 ofthe
fiscal year and funds for this Agreement 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 25. MISCELLANEOUS PROVISIONS.
25.1. This Agreement will be governed by the laws of the State of California.
25.2. In the event that an action is brought, the parties agree that trial of such action
will be vested exclusively in the state courts of California in the County of Santa Clara, State of
California.
25.3. The prevailing party in any action brought to enforce the provisions of this
Agreement may recover its reasonable costs and attorneys' fees expended in connection with that
action. The prevailing party shall be entitled to recover an amount equal to the fair market value of
legal services provided by attorneys employed by it as well as any attorneys' fees paid to third
parties.
25.4. This document represents the entire and integrated agreement between the
parties and supersedes all prior negotiations, representations, and contracts, either written or oral.
This'document may be amended only by a written instrunient, which is signed by the parties.
25.5. The covenants, terms, conditions and provisions ofthis Agreement will apply
to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the
parties.
25.6. If a court of competent jurisdiction finds or rules that any provision of this
Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this
Agreement and any amendments thereto will remain in full force and effect.
25.7. All exhibits referred to in this Agreement and any addenda, appendices,
attachments, and schedules to this Agreement which, from time to time, may be referred to in any
du1y executed amendment hereto are by such reference incorporated in this Agreement and will be
deemed to be a part of this Agreement.
25.8 If, pursuant to this contract with CONSULTANT, City shares with
CONSULTANT personal information as defmed in California Civil Code section 1798.81.5(d) about
a California resident ("Personal Information"), CONSULTANT shall maintain reasonable and
appropriate security procedures to protect that Personal Information, and shall inform City
immediately upon learning that there has been a breach in tbe secnrity ortbe system or in tbe security
ofthc Personal Information. CONSULTANT shall not nse Personal Information for direct marketing
purposes without City's express written consent.
25.9 All unchecked boxes do 110t apply to this agrccment.
25.10 Thc individl1als execllting this Agreement represent and wammt that they have
the legal capacity and authority to do so on behalf of their respective legal entities.
IN WITNESS WHEREOF, the parties hereto have by their duly authorized
repl'esentatives executed this Agreement on the date fil'st above, written.
CITY OF PALO ALTO
Manager (Required on contracts over
$85,000)
Purchasing Manager (Required on contracts
over $25,000)
Contraets Administrator (Required on
contracts under $25,000)
APPROVED AS TO FORM:
Seniol' Ass!, City AttorneY ,
(Required on Contracts over $25,000)
Attachments:
EXHIBIT "A": SCOPE OF WORK
ACCELA, INC.
By:U'0 .~
Name: (.clAN ,t" <;4t'1WI?1,,f
Title:A~s". edt· Sr:z:I!eatMiJ
EXHlBIT "A-I"
EXHIBIT "B":
HOSTED APPLICATIONS
COMPENSATION
EXHIBIT "C"
EXHIBIT "D":
SCHEDULE OF RATES
INSURANCE REQUIREMENTS
EXHIBIT "A"
SCOPE OF SERVICES
SCOPE OF SERVICE FOR HOSTING AND MAINTENANCE SERVICES
1 Background This Scope of Services defines the details of the Hosting and Maintenance services
("MA") Scope and is intended for the excusive benefit of the Parties; nothing herein will be construed to
create any benefits, rights, or responsibilities in any other parties.
2 Scope of Maintenance
2.1 Maintenance Services
2.1.1 Telephone SUDDort Accela will provide CITY with a telephone number to contact the
Customer Resource Center (CRC), Accela's live technical support facility, which is
available from 4:00 a.m. until 6:00 p.m. Pacific time Monday through Friday, excluding
Accela's observed holidays, which include: New Year's Day, Martin Luther King Day,
Ih Presidents Day, Memorial Day, 4 of July, Labor Day, Veterans Day, Thanksgiving Day
and the Friday after, Y, day on Christmas Eve, Christmas, and Y, day on New Year's Eve.
The CRC shall provide CITY with maintenance and technical support.
2.1.2 E-Mail Support Accela will provide CITY with one or more electronic mail addresses to
which CITY may submit routine or non-critical support requests, which Accela will
address during its regular business hours.
2.1.3 Online Support Accela will provide CITY with access to archived software updates and
other technical information in Accela's online support databases, which are continuously
available.
. 2.1.4 Remote'Support When required to properly resolve a maintenance request, Accela will
provide remote assistance to CITY via the WebExTM Meeting CenterTM environment or
another mutually-acceptable remote communications method.
2.1.5 On-Site Support If CITY does not wish for Accela to resolve its maintenance requests
remotely, Accela will provide on-site assistance to CITY at Accela's then-current time-
and materials rates. In addition to these charges, CITY will compensate Accela for
associated airfare, lodging, rental transportation, meals, and other incidental expenses
as such expenses accrue.
2.1.6 Software Updates Accela will provide revisions of and enhancements to maintained
software products to CITY as such updates are generally-released by Accela. Software
updates will be delivered or made available to CITY for electronic download from
Accela's File Transfer Protocol ("FTP") site.
2.2 Maintenance Limitations
2.2.1 Additional Maintenance Services (Optional) The following are not covered by this MA, but
may be separately available at rates and on terms which may vary from those described
herein and may be added to this Agreement with a mutually agreed upon amendment:
a) Services required due to misuse of the Accela-maintained software
products;
b) Services required due to software corrections, customizations, or
modifications not developed or authorized by Accela;
c) Services required by CITY to be performed by Accela outside of Accela's
usual working hours as referenced in Section 2.1.1 above;
d) Services required due to external factors including, but not necessarily limited
to, CITY's use of software or hardware not authorized by Accela;
e) Services which relate to tasks other than maintenance of CITY's existing
implementation and configuration of the Accela-maintained software products
including, but not necessarily limited to, enhancing or adapting such products for
specific operating environments;
f) Services requested by CITY to implement software updates provided by Accela
pursuant to this MA;
g) New or additional applications, modules or functionality to support or enhance
the Accela-maintained software products; and
h) Services required to resolve or work-around conditions which cannot be
reproduced in Accela's support environment.
2.2.2 Legacy Releases Accela will provide maintenance support for the current release of
each of its maintained software applications and for the release immediately
preceding such current release. All other releases are deemed to be "Legacy
Releases". Accela will respond to maintenance requests concerning Legacy
Releases only using currently-available information. Services requiring additional
research, engineering-level support, or coding or programming by Accela will not be
provided pursuant to this MA, but may be separately available at rates and on terms
which may vary from those described herein.
)
2.3 Security Accela will provide physical security for the equipment utilized by the CITY for the purposes
of this Agreement and will provide network security.
2.4 Warranty Accela will commence and complete the maintenance obligations described in this MA in a
good and workmanlike manner, consistent with the praclices aod standards of care generally-accepted._
within and expected of Accela's industry, to ensure that the operation of the maintained software products
does not materially differ from documented specifications. Accela may make repeated efforts within a
reasonable time period to resolve maintenance requests. When a maintenance request cannot be
resolved, City's exclusive remedy will be damages in an amount equal to the total of maintenance fees paid
to Accela for the defective or non-conforming software products for the twelve (12) calendar months
immediately preceding City's maintenance request.
Accela provides no warranty whatsoever for any third-party hardware or software products. Third-party
applications which utilize or rely upon the Application Services may be adversely affected by remedial
or other actions performed pursuant to this MA; Accela bears no liability for and has no obligation to
remedy such effects. Except as set forth herein, Accela provides all Maintenance Services "as is"
without express or implied warranty of any kind regarding the character, function, capabilities, or
appropriateness of such services or deliverables. To the extent not offset by its insurance coverage
and to the maximum extent permitted by applicable laws, in no event will Accela's cumulative liability for
any general, incidental, special, compensatory, or punitive damages whatsoever suffered by CITY or
any other person or entity exceed the fees paid to Accela by CITY during the twelve (12) calendar
months immediately preceding the circumstances which give rise to such claim(s) of liability, even if
Accela or its agents have been advised of the possibility of such damages.
3. Hosting Services Accela will provide the following hosting services for the maintained software products
listed in Exhibit A-1 ("Hosted Applications"):
3.1 System Administration and Security The Hosted Applications will be hosted by Accela on Accela
owned equipment at a physically-secure commercial third-party hosting facility. Accela will
perform system administration duties as required to maintain the service levels described below
and to facilitate timely restoration of CITY's data and operations, if necessary, following
unanticipated interruptions of the Hosted Applications. Aceela will implement suitable network
security measures to minimize the likelihood of unanticipated interruptions of the Hosted
Applications.
3.2 Infrastructure Availability Aceela will provide CITY with no less than twenty-four (24) hours' notice
prior to Hosted Applications unavailability due to planned maintenance and will provide five (5)
business days' notice prior to any planned network, server hardware, operating environment,
or database modifications of a material nature. Excluding the foregoing planned events,
Accela warrants that the Hosted Applications will be generally-available no less than ninety-
eight percent (98%) of each calendar day. For each calendar day during which the availability
of the Hosted Applications does not achieve the established standard, Accela will credit two
hundred dollars ($200.00) to CITY's aceount as liquidated damages, provided that the
substandard availability is identified by CITY in writing or by e-mail to Acceta and can be
objectively verified. Credits accumulated pursuant to this Section may be applied to additional
Accela products and/or services, but will not be refunded to CITY.
3.3 CITY Property CITY warrants that that it exclusively owns its data and that it has both the right
and the authority to provide such data to Aceela. CITY retains full ownership of its data and
grants to Accela a limited, nonexclusive, nontransferable license to use said data only Ie
perform Accela's obligations in aceordance with the terms and conditions of this Service
Agree Agreement Within thirty (30) calendar days following termination or expiration of this
Service Agreement, CITY may request that Aceela provide a complete copy of CITY's data,
as sueh may be updated or modified by CITY's use of the Hosted Applications, to CITY In a
_ ... ""'. ,machioE'··readable formal. Accela will comply in a timely mannerwith such,request,.provided
that CITY a) pays all costs of and aSSOCiated with such copying, as calculated at Accela's
then-current tlme-and"materials rates; and b) pays all unpaid amounts due to Aceela.
4. Other Terms and Conditions
4.1 CITY Obligations As required, CITY will provide Aceela with appropriate access to CITY's
facilities, data systems and other resources. If Security restrictions impair such access, CITY
acknowledges that some maintenance services hereunder may not be provided to CITY. It is
CITY's sale responsibility to maintain current backup copies of its data and of its
implementation of Aceela's software products. If CITY's failure to create proper backups
substantially increases the difficulties of any remedial actions by Accela hereunder, Accela
reserves the right to charge CITY for any extra work reasonably attributable to such increased
difficulty, as calculated at Accela's then-current time-and-materials rates.
EXHIBIT A·1
HOSTED APPLICATIONS
(Modules City is Currently Licensed)
Accela AutomationIV elocity Hall Modules
AA Classic:
Building Inspection
Planning Entitlements
Code Enforcement
Fire Permits
Public Works
Business License
Accela Citizen Access
GovXML
Selectron IVR
Automation,
Third-Term Annual
EXHIBITB
COMPENSATION
1. 1 Includes: AA Classic (Building Iuspection, Planning Entitlements, Code
Enforcement, Public Works, Fire Permits, Business License), Accela Citizen Access.
2 Includes: AA Classic (Building Inspection, Planning Entitlements, Code Euforcement,
Public Works, Fire Permits, Business License), Accela Citizen Access, GovXML.
3 Total of Fees does not include applicable sales and use taxes, if any.
4 Represents one-time pro-rated fee to co-term Gov XML payment to other modules. This
agreement and payment supercedes the Software Maintenance Agreement No. S08126531
dated July 1, 2008, between the parties.
EXHIBIT "D"
INSURANCE REQUIREMENTS
CONTRACTORS TO TIlB CITY OF PALO ALTO (CITY). ATTHElRSOLBEXPENSB,SHALlFORTHETERMOFTHEQ)NTRA CTOBTAIN
AND MAlNTAlN INSURANCE INTHEAMDUNTS FOR THECOVERAGESPEClFlED llEWW.AFFORDED BY COMPANIES WlTIlAM
BEST'S KEY RATING OF A-:VlI, OR HIGHER, UC~'NSED OR AUTIlORIZED TO TRANSACT INSURANCE BUSINESS IN TIlE
STATE OF CAUFORNIA,
AWARD IS CONTINGENT ON COMPUANCE WITH CITY'S INSURANCE REOUIREMENTS, AS SPECIFIED, BELOW:
MINIMUM LIMITS
REQUIRED TYFE or COVERAGE HEQUJREMENT EACH
YES
: YES
I YES
i
YES
NO
YES
-
OCCURRENCE AGGREGATE
WORKER'S COMPENSA TlON STATUTORY
EMPLOYER'S LIABILITY STATUTORY
BODILY INJURY $1.000,000 $1,000.0<10
GENERAL LIABIUTY, INCLUDING
PERSONAL INJURY. BROAD FORM PROPERTY DAMAGE $1.000,000 $1,000,000
PROPERTY DAMAGE BLANKET
CONTRACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY DAMAGE $1.000,000 $1,000,000
LIABILITY COMBINED.
BODILY INJURY $1,000,000 $1,000.000 . EACH PERSON $1.000,000 $1,000,000 . EACH OCCURRENCE $1.000.000 $1,000.000
AUTOMOBILE UABILITY, INCLUDING
ALL HIRED, NON-OWNED PROPERTY DAMAGE $1.000,000 $1,000,000
BODILY INJURY AND PROPERTY $1.000,000 $1,000.000
....... __ ._._._._-----j)AMAGE. CQMBINED
PROFESSIONAL UABILITY,INCLUDlNG,
ERRORS AND OMISSIONS.
MALPRACflCE (WHEN APPLICABLE).
AND NEGLIGENT PERFORMANCE ALL DAMAGES $l,QiliJ,QOO
TIlE CITY OF I' ALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACroR. AT ITS SOLE COST AND EXPENSB,
SHALLOBTAlN AND MAlNTAlN, IN FULLFORCEAND EFFECT UffiOUGHOUTTllE ENTIRE TERM OF ANY RESULTANT AGREEMENT,
nlE INSURANCE COVERAGEHERElN DESCRlBED. INSURING NOT ONLY CONTRACI'ORAND ITS SUBCONSULTANTS. IF ANY, BUT
ALSO. WITH THE EXCEl'flON OF WORKERS' COMPENSAnON. AUTOMOBILE. EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCF~ NAMING AS ADDITIONAL INSUREDS CITY. ITS COUNCIL MEMBERs. OFIIICERS;AGENIS, ANDEMPWYEES,
L INSURANCE COVERAGE MUST INCLUDE:
A. A PROVISION FOR A WRlITEN lHIRTY DAY ADVANCE NOTICE TO crrv OF CHANGE IN
COVERAGE OR OF COVERAGE CANCELLATION; AND
B. A CONTRACTUAL LIABILiTY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR
CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY,
II CONTACTOR MU~'T SUBMIT CERTIFICATES{S) OF INSURANCE EViDENCING REQUIRED COVERAGE.
IlL ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL
INSUREDS"
A. PRIMARY COVFJtA.GE
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED. INSURANCE AS
AFFORDED BY lHIS POLiCY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER
INSURANCE CARRIED BY OR FOR THE BENEFIT OF lHE ADDITIONAL INSUREDS.
B. !;;ROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON. FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL
NOT, FOR TIlAT REASON ALONI~ EXTINGUISH ANY RlGHTS OF THE INSURFJ) 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
I. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER
THAN THE NON·PA YMENT OF PREMIUM, THE ISSUING COMPANY SHALL ENDEAVOR
TO PROVIDE CITY AT LEAST A THIRTY (30) DAY WRlTI'EN NOTICE BEFORE THE
EFFEC11VE DATE OF CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE rrs EXPIRATION DATE FOR THE NON·PA YMENT
OF PREMIUM, THE ISSUING COMPANY SHALL ENDEAVOR TO PROVIDE CITY AT LEAST
A TEN (10) DAY WRlTl'EN NOTICE BEFORE THE EFFECfIVE DATE OF CANCELLATION.
NOTICES SHALL B~; MAILED TO:
PURCHASING AND CONTRACt ADMINISTRATION
CITY OF PALO ALTO
P.O. BOX 102S0
. PALOALTO,CA 94303
4. Authorize the City Manager or designee to execute all other documents required to implement
the Agreements, including escrow instructions and to approve all necessary subordination
agreements and direct the City Manager or designee to administer the provisions of the
." Agreements.
.BAbKGROUND
On March 8, 2010, Council adopted Resolution No. 9402 committing $2.5 million in-lieu fees from
SummerHill Homes to Tree House Apartments L.P. for the construction and development of the 35-
unit affordable housing Tree House Apartments Project at 488 W. Charleston Road. The primary
reason for committing $2.5 million to the project is to enable Tree House Apartments, L.P. to fill the
project's existing funding gap and submit a competitive application for the Low Income Housing
Tax Credit Allocation. Subsequently, Tree House Apartments, L.P. submitted a competitive
application for tax credit allocation and received an award of approximately $4.8 million in June
2010.
On March 18,2009, the City of Palo and Tree House Apartments, L.P. entered into an agreement for
the provision of$2,838,577 from the Residential Housing Fund and Community Development Block
Grant (CDBG) to Tree House Apartments, L.P. for the acquisition and development of the property
located at 488 West Charleston Road as multifamily rental housing affordable to extremely-low and
very-low income households.
On April 3, 2009, Council approved a Planned Community (PC) zone application for the
development of the 35-unit affordable housing project. The project site, located between Alma
Street and EI Camino Real on West Charleston Road, is approximately 0.7 acres and contains a
single-family home that was previously occupied by Recording for the Blind and Dyslexic. Tree
House Apartments, L.P. proposes to construct 35 new affordable housing units consisting of 33
studios and two one-bedroom units, which will be affordable to extremely-low and very-low income
households earning between 20% and 50% of the area median income.
DISCUSSION
Amendment No. One to the Agreement
The City of Palo and Tree House Apartments, L.P. entered into an agreement for the City's financial
contribution of $2,838,577 to Tree House Apartments,L.P. for the acquisition and development of
the property located at 488 West Charleston Road as multifamily rental housing affordable to
extremely-low and very-low income households. The amendment will formalize the City's
additional financial contribution in the amount of $2.5 million for construction and development
costs of the project, making the City's total contribution $5,338,577. The additional funding will be
in the form of a loan secured by appropriate legal documents against the entire property. These funds
were budgeted as part of the 2010-11 FY Council-adopted budget.
The City loan will be structured as a three percent (3%) simple interest note with payments due
annually based on the amount of surplus cash flow from the project's operations. The City will share
in the project's cash flow, based upon the proportionate percentage ofthe City's loan to the other
permanent lenders; therefore, other than rather minimal payments of interest, regular repayment of
the City loan is not anticipated, which is standard practice in local financing of this type of deeply
CMR: 366:10 Page 2 of5
affordable rental housing. In addition, tax credit program IRS rules limit the accrual of substantial
amounts of unpaid interest over time. As a result, the City loan terms specify that the 3% simple
interest will only be paid each year or at refinancing or sale, to the extent that there is sufficient cash
flow; howev~r, to the extent any year's cash flow is insufficient to pay 3% interest, the unpaid
interest will effectively be forgiven and, thus, will not increase the total amount due on the City loan.
Due to the deep affordability of the rents, it is not expected that residual receipts will pay the annual
interest in full. In return for less annual interest payments, the proposed project will be affordable to
extremely low and very low income households, and the affordability restrictions will be in place for
a minimum of 55 years after the issuance of a certificate of occupancy. The loan terms are typical to
this type of development and similar to other affordable housing properties and developments funded
with City funds. Some ofthe City's standard loan terms described here may need to be modified to
meet the requirements of other lenders or funding programs for construction or permanent sources of
funds.
In addition, the proposed amendment contains a provision reducing the amount of the deferred
developer's fee required in the original Agreement from at least $660,000 to $481. With the
additional funding from the City and other projected savings in construction costs, City of Palo Alto
and Palo Alto Housing Corporation (PAHC) staffhave determined that there is no need to defer at
least $660,000 in developer's fee. Palo Alto Housing Corporation plans to use the required deferred
developer's fee for future affordable housing projects in the City of Palo Alto.
The financing package assembled by Palo Alto Housing Corporation for development of the
apartments is described below.
Permanent Sources of Funds for DeveloI1ment
• Low Income Housing Tax Credits $ 4,762,000
• City of Palo Alto (Acquisition) $ 2,838,577
• City of Palo Alto In-Lieu Fees (Construction) $ 2,500,000
• County of Santa Clara -Stanford Affordable Housing Fund $ 960,000
• CountyCDBG $ 400,000
• County of Santa Clara -Housing Trust Fund $ 350,000
• Fee Waivers $ 308,403
• Deferred Developer Fee $ 39,093
• General Partner Equity $ 481
TOTAL PROJECT FUNDING $ 12,158,554
Total CostlFunding per Unit (35 units) 347,387
The above budget is lower than the previously estimated budget presented to the City Council on
March 8, 2010 by approximately $780,000 due to projected savings in construction costs. The total
cost/funding per unit decreased by about $22,000. As a result, Tree House Apartments, L.P. received
smaller tax credit allocation from previously estimated tax credit allocation of $5,582,432 to
$4,762,000.
Regulatory Agreement
Once the project is fully operational, the use and occupancy of the apartments will be controlled by
CMR: 366:10 Page 3 of5
multiple regulatory agreements from the various funding sources, including the City's Regulatory
Agreement. The City's Regulatory Agreement will be recorded with the Amendment and Deed of
Trust securing the City's Promissory Note as soon as possible after Council approval. As the other
funding entities provide their financing to the proj ect, the City will need to subordinate its loans and
Regulatory Agreement to the loans and regulatory agreements of those entities. Staffis requesting
that the City Manager or designee be authorized by Council to review and approve each of these
subordination agreements in consultation with the City Attorney's office, at the appropriate time, in
order to avoid any delay in the progress of construction or the closing of the permanent funding after
completion.
Rents and Occupancy of the Apartments
In order to succeed in the competition for the tax credit allocation, Palo Alto Housing Corporation
(P AHC) needs to emphasize housing for extremely low-income and very-low income households.
The project's proposed rent categories and income limits are shown below; actual rents may change
somewhat by the time the project is constructed and ready for occupancy due to changes in the
County median income.
T H ree ouse H pOt D OUSlD~ rO.1ec -Of eSCrIp110n 0 fP ropose dU °t Dl san d R t 1St t en a ruc ure
Rent As A Percent of Median Studios I-Bedroom Total Units Income
Extremely Low Income (30% of AMI) .12 units at $543 1 unit at $582 13 37%
Very Low Income (50% of AMI) 21 units at $906 0 21 60%
Manager's Unit 0 1 unit (rent free) 1 3%
Total Units 33 2 35 1000/0
Note: AMI means the Area Median Income for Santa Clara County, which equals $103,500 for a
household of four persons as published on June 17, 2010.
RESOURCE IMPACT
The funds for the City's additional $2.5 million loan are budgeted in the Residential Housing Fund in
the FY 2010-11 City Budget approved by Council on June 21,2010. On March 18,2009, the City
·provided $2,838,577 to Tree House Apartments, L.P. for the acquisition of 488 West Charleston
Road, of which $1,838,577 came from Community Development Block Grant (CDBG) Fund and
$1,000,000 from the Residential Housing Fund. The additional funds will make the City's total
contribution to the project in the amount of$5,338,577. No General Fund monies are being used for
this housing project.
The Residential Housing Fund has a current available balance of approximately $3.1 million, of
which $1,991,985 came from SummerHill's payment of in-lieu fees on twenty (20) Redwood Gate
homes sold. Additional in-lieu fees in the amount of approximately $373,000 for four (4) recently
sold units are anticipated to be paid to the City this month. City staff estimates $4,387,500 in total
revenues will be generated from SummerHill in-lieu fees based on an estimated average per unit
sales price of$l.3 million for the market rate homes and an in-lieu fee rate of7.5% applicable to all
45 units. Revenues from SummerHill in-lieu fees are Residential Housing Fund.
POLICY IMPLICATIONS
The actions recommended in this report implement the City's adopted Housing Element policies and
CMR: 366:10 Page 4 of5
WHEREAS, THA has received sufficient binding commitments for construction
financing, including an annual federal Low Income Housing Tax Credit Allocation in the amount
of $472,754 awarded on June 9, 2010 that will fund the expenditure of funds for site construction
and development costs; and
WHEREAS, THA will commence construction and development of the 35-unit
affordable housing project in November 2010; and
WHEREAS, pursuant to the provisions of Section 12 of Article III of the Chapter of the
City Palo Alto, the Council on June 21, 2010 did adopt a budget for Fiscal Year 2010-11; and
WHEREAS, the City Council allocated $2.5 million in Residential Housing Fund for the
City of Palo Alto's additional fmancial contribution to THA for fiscal year 2010-11; and
WHEREAS, the parties wish to amend the Agreement.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and
provisions of this Amendment, the parties agree:
SECTION 1. Sections 3.5 to 3.8 are hereby added to Article 3 of the Agreement,
entitled "Loan of Funds", to read as follows:
3.5 Loan of Funds for Project Construction and Development Costs
3.5.1 CITY shall also loan to THA the sum of Two Million Five Hundred
Thousand Dollars ($2,500,000)(the "Additional Loan Amount"), to be used in
accordance with the terms, covenants, provisions and conditions of this Agreement, the
CDBG Program, and CITY'S Affordable Housing Fund Guidelines. THA shall execute
and deliver a promissory note in favor of CITY (the "Note"), as set forth in Exhibit "B"
of this Amendment, in the amount of Two Million Five Hundred Thousand Dollars
($2,500,000), to secure the performance of all terms, covenants, provisions and
conditions of this Agreement. Execution thereof shall occur prior to any disbursement of
funds under this Agreement.
3.5.2 The Note shall accrue simple interest at the rate of three percent
(3%) per annum, as described in the Note. Provided THA is not in default of this
Agreement, no principal payments shall be due and interest shall not begin to accrue until
the closing of the Project's permanent funding. If acceptable to the other entities
providing the final permanent sources of funds, the CITY Note will require annual
payments of interest and principal based on the CITY'S proportionate share of the
Project's residual receipts from net operating income as provided in the Note. The Note
shall be secured by a deed of trust ("Deed of Trust") recorded against the Property for the
benefit of CITY, as set forth in Exhibit "C" of this Amendment.
101013 dm 0120464 2
schedule of performance similar in form to Exhibits D and E. The development budget may
provide for a developer's fee or a similar fee or fees (the "Developer Fee") so long as the
aggregate fees do not exceed $1,400,000, with at least $481 of such fees in the form of a deferred
developer fee.;"
SECTION 3. Section 4.4.2 shall be deleted and the following inserted in its place:
"The Note shall be due and payable in full on December 3 1,,;,2067."
SECTION 4. All references in the Agreement to the MHP Loan shall be deleted.
SECTION 5. Article 5 shall be modified to provide that the term of the Agreement shall
continue for 55 years from the date of this Amendment.
SECTION 6. The following shall be added at the end of Section 8.7: "This Section 8.7
shall not apply to the transfer of any partnership interests in the Partnership or to the transfer of
the Project to Palo Alto Housing Corporation or a wholly-controlled affiliate thereof."
SECTION 7. The following shall be added at the end of Article 8:
"CITY shall accept cures of the default( s) by Borrower's limited partner within the cure
periods, if any, provided in this Article 8 and California Civil Code Section 2924c( e). Limited
Partner shall be deemed to be diligently proceeding with the cure of defaults if it has coIIllIienced
and is diligently proceeding to remove the general partner as general partner of the Borrower
pursuant to the Partnership Agreement, subject to any delays imposed by bankruptcy, i~unction or
similar proceeding which prevents limited partner from proceeding with such removal.
This Loan is a nonrecourse obligation of the Borrower. Neither the Borrower or any of
its general or limited partners, nor any other party, shall have personal liability for repayment of
the Loan or the performance of the covenants of the Borrower under this Agreement."
SECTION 8. The notice address to THA in Article 9 shall be amended to add at the end
thereof the following notice to THA's limited partner as follows:
And a copy to:
The Banc of America Housing Fund VIII Limited Partnership,
and its successors and assigns
10227 Wincopin Circle, Suite 810
Columbia, Maryland 21044
Tel: (410) 964-0552; Fax: (410) 772-2630
Email: brothschild@enterprisecommunity.com
Attention: General Counsel
SECTION 9. The Amended Estimated Project Costs and Sources of Funds attached to
this Amendment as Amended Exhibit D shall supersede and replace Exhibit D to the Agreement.
101013 dm 0120464 4
CERTIFICATE OF ACKNOWLEDGMENT
(Civil Code § 1189)
STATE OF CALIFORNIA )
. . 0
COUNTY OF ~/n . .\--'" a~~,-)
On f3 f) 0\ 20 \1) ,before ~~tJ~ lv' \ i)()e--,a notary public in and for said
County, personally appeared -r--,f \ (L-.~ j _" \. who proved to me on the basis
of satisfactory evidence to be the persori~) whose na:me~' s e subscribed to the within instrument
and acknowledged to me that he/~ey executed the same in his~/their authorized
capaci~, and that by his@Ieir signatur~'on the instrument the perso~, or the entity
upon behalf of which the personM' acted, executed the instrument.
I certify under penalty of peIjury under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
~;cvl~ ~~C
Notary Public
101013 dm 0120464 6
:. BETH D. MINOR ( COMI.!. # 1792766 . NOTARY PUIiLlC·CALIFOIlHIA (J)
. . SANTA ClARA COUHTY -. MY Cow. ExP.'IAR.3. 2012 ..
EXHIBIT "B"
AMENDMENT NO. ONE TO PROMISSORY NOTE
(COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS/
RESIDENTIAL HOUSING FUNDS)
SECURED BY
DEED OF TRUST AND ASSIGNMENT OF RENTS
This Amendment No. One to Promissory Note is entered into as of ,
2010, by and between the CITY OF PALO ALTO, a California municipal corporation (the
"CITY") and TREE HOUSE APARTMENTS, L.P., a California limited partnership (the
"BORROWER") and amends the Promissory Note. dated as of March 18, 2009 (the
"PROMISSORY NOTE").
WHEREAS, the parties entered into Agreement No. S09131257 dated as of March 18,
2009 and recorded in the official records of Santa Clara County on November 28, 2009 as
Instrument No. 20186266 ("Agreement") which provided for the CITY's financial contribution
of $2,838,577, of which $1,838,577 is from CDBG funds and $1,000,000 from the Residential
Housing Fund, in the form of a loan to the Borrower for the acquisition of the real property
located at 488 W. Charleston Road, Palo Alto, for the development of Tree House (the "Project),
a 35-unit rental housing project affordable to extremely-and very-low income households; and
WHEREAS, the City Council allocated $2.5 million in Residential Housing Fund for the
City of Palo Alto's additional financial contribution to the Borrower for fiscal year 2010-11; and
WHEREAS,the CITY and the BORROWER, now desire to revise the Promissory Note
to provide for an increase in the loan amount of Two· Million .Five Hundred Thousand and
No/IOO Dollars ($2,500,000).
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged,· the parties hereby agree as follows:
1. The first paragraph of the Promissory Note is amended and restated with the following:
"FOR VALUE RECEIVED, TREE HOUSE APARTMENTS, L.P., a California limited
partnership ("BORROWER") promises to pay to the City of Palo Alto, a California
municipal corporation ("CITY"), or order, the principal sum of Five Million Three
Hundred Thirty-Eight Thousand Five Hundred Seventy-Seven Dollars ($5,338, 577) at
the Revenue Colh~ction Office of the City of Palo Alto, First Floor, 250 Hamilton
Avenue, P.O. Box 10250, Palo Alto, CA 94303, or at such other place as CITY may
from time to time designate, with interest from the date of this PROMISSORY NOTE
SECURED BY DEED OF TRUST AND ASSIGNMENT OF RENTS ("Note"), until
paid, at the rate of three percent (3%) simple interest per year on the unpaid principal
balance."
2. The Promissory Note as amended by this Amendment No. One is secured by that certain
deed of trust in favor of the City dated March 26, 2009, and recorded March 26, 2009, as
Document Number 21086267 in the Official Records of Santa Clara County, as amended
concurrently herewith.
101012 dm 0120465 1
3. All references to "MBP Loan" in the Promissory Note shall be deleted.
4. Residual receipts shall be the excess· of gross revenues over operating expenses. In
addition to Project operating expenses, the following shall be deducted from gross revenue:
deferred developer fee not to exceed $39,093, an investor asset management fee of $5,000
increasing by 3% annually, a partnership management fee of $24,244 increasing by 2% annually
and tenant services of up to $13,200 increasing by 2% annually, and funding of an operating
reserve to a maximum amount of one year's operating expenses equal to $220,000. Payments of
residual receipts shall commence on May 1,2013 and shall be due annually thereafter on May 1.
The City's proportionate share of residual receipts shall be 80%. .~ .
5. A new paragraph is added at the end of the Promissory Note as follows:
"This Loan is a nonrecourse obligation of the Borrower. Neither the Borrower or any of
its general or limited Partners,nor any other party, shall have personal liability for
repayment of the Loan or the performance of the covenants of the Borrower under the
Deed of Trust. The sole recourse of the holder with respect to the principal of, or interest
on the Note and default by Borrower on the performance of its covenants under the Deed
of Trust shall be to the property described in the Deed of Trust."
6. Except as amended by this Amendment No. One in all other respects the Promissory
Note shall remain unchanged.
Executed as of the date first written above.
APPROVED AS TO FORM:
Assistant City Attqrney
APPROVED:
Director of Administrative Services
Director of Planning
and Community Environment
Insurance Review
101012 dm 0120465 2
CITY OF PALO ALTO
City Manager
TREE HOUSE APARTMENTS, L.P.,
a California limited partnership
By: P ABC California Park Corporation,
a California nonprofit public
benefit corporation, its general partner
By: __________ _
Name: ---------------------Title: ____________________ _
1. The Section entitled "For the Purpose of Security", on Page 1 of the Deed of Trust
is hereby deleted in its entirety and replaced with the following new Section:
"For the Purpose of Securing:
(1) Performance of each agreement of Trustor herein contained. (2) ,Payment
of the indebtedness evidenced by one promissory note ("Note") dated
March 18, 2009, as amended by Amendment No. One of even date
herewith, and any extension or renewal thereof, in the total principal sum
of $5,338,577 executed by Trustor in favor of Beneficiary. (3) Payment of
such further sums as the then record owner of said property hereafter
may borrow from Beneficiary, when evidenced by another note (or notes)
reciting it' or so secured. (4) Performance by Trustor of its obligations
arising under that certain, contract entitled "Acquisition and
Development Agreement between the City of Palo Alto and Tree House
Apartments, L.P. for the Real Property located at 488 West Charleston,
Palo Alto, California," dated March 18, 2009 (" Agreement") and
recorded March 26, 2009, as Instrument No. 20186266 in the Official
Records of Santa Clara County, California, as amended by that certain
Amendment No. One to Agreement of even date herewith and recorded
concurrently herewith in the Official Records of Santa Clara County."
2. Section 15 shall be amended by adding at the end thereof the following:
"This paragraph 15 shall not apply to the transfer of partnership interests in the
Trustor."
3. 'No Other Change. Except as specifically modified or amended by this
Amendment No. One to Deed of Trust, all other terms and conditions of the Deed of
Trust remain the same.
DATED: _______ ~, 2010
TRUSTOR:
TREE HOUSE APARTMENTS, L.P.,
a California limited partnership
By: By: P AHC California Park Corporation,
a California nonprofit public benefit corporation,
its general partner
By: ____________________ _
Nrune: __________________ __
Title: ____________ -'--___ _
101012 elm 0120467 2
WHEREAS, Tree House LP has applied to the City for funds for site acquisition to allow
the development of thirty-five (35) affordable rental housing units consisting ofthirty-thIee (33)
studios and two (2) one-bedroom units known as the Tree House (the "Project") located at 488
West Charleston Road, Palo Alto, California; and
WHEREAS, on June 9, 2008, the City Council approved the allocation in the budget for
fiscal year 2008-09 of $2,538,577 to Tree House LP for the acquisition of the Property of which
$1,538,577 is from CDBG funds and $1,000,000 from the Residential Fund and on March 2,
2009, the City Council approved additional funding in the amount of $300,000 in fiscal year
2009-10 CDBG funds; and
WHEREAS, on March 18, 2009, the Agreement was entered into between the parties
regarding the City's financial contribution of $2,838,577, of which $1,838,577 is from CDBG
funds and $1,300,000 from the Residential Fund, in the form of a loan to Tree House LP for the
acquisition of the real property located at 488 W. Charleston Road, Palo Alto for the
development of Tree House (the "Project), a 35-unit rental housing project affordable to
extremely-and very-low income households; and
WHEREAS, on April 3, 2009, the City Council adopted Ordinance No. 5034 approving a
Planned Community (PC) zone application for the development of the 35-unit affordable housing
project, consisting of 33 studios and two one-bedroom units, which will be affordable to
extremely-low and very-low income households earning between 20% and 50% of the area
median income; and
WHEREAS, on March 8, 2010, the City Council adopted Resolution No. 9402
committing $2.5 million in-lieu fees from SummerHill Homes to Tree House LP to enable Tree
House LP to fill the Project's existing funding gap and submit a competitive application for the
Low Income Housing Tax Credit Allocation for the construction and developmentofthe Project;
and
WHEREAS, Tree Hou~e LP has received sufficient binding commitments for
construction financing, including an annual federal Low Income Housing Tax Credit Allocation
in the amount of $472,754 awarded on June 9, 2010 that will fund the expenditure of funds for
site construction and development costs; and
WHEREAS, on October 4,2010, the City Council approved Amendment No. One to the
Agreement to provide additional funding in the amount of $2.5 million from the Residential
Housing Fund for construction and development costs of the Project; and
WHEREAS, there is a severe shortage of rental housing affordable for persons with
extremely-low and very-low incomes in Palo Alto and nearby areas. The Project will result in
the creation of thirty-five (35) housing units, to be made available at affordable rents to those
with extremely-low and very-low incomes as defmed by the Department of Housing and Urban
Development ("HUD"); and
101012 dm 0120468 2
"Affordable Housing Trust Loan" means the permanent loan in the amount of $350,000
provided by the Housing Trust of Santa Clara County for the construction and development of
the Project.
"Affordable Housing Trust Regulatory Agreement· -Stanford" means a regulatory
agreement executed between Tree House LP and Santa·Clara Count)' for the provision of Santa
Clara County's Stanford Affordable Housing Fund Loan, which will be recorded against the
Project at the construction loan closing and continue for a term of 5~~-years.
"City" means the City of Palo Alto, California.
"Community Development Block Grant Program and Regulations" means the federal
Community Development Block Grant Program, of which the City is an entitlement grantee,
under Title I of the Housing and Community Development Act of 1974, as amended, and the
implementing federal regulations at 24 CFR Part 570.
"Extremely Low-Income Household" means a household with gross income that does
not exceed 35% of the Median Income and which is otherwise a qualified Tenant under the
Section 8 or HUD Program Regulations.
"Extremely Low-Income Units" means the Units that are occupied by Extremely Low-
Income Households.
"HAP Contract" means a Housing Assistance Payment contract with HUD or the
Housing Authority for project-based Section 8 rental assistance.
"Housing Authority" means the Housing Authority of the County of Santa Clara,
California.
"HUD" means the United States Department of Housing and Urban Development.
"Improvements" means the buildings, structures and other improvements substantially as
shown in the Site Plans to be constructed on the Land comprising the 35-unit rental apartment
complex to be known as Tree House Apartments as approved, subject to conditions, by the
City's Director of Planning and Community Environment.
"Initial Term" means a term of approximately 55 years, commencing on the date this
Regulatory Agreement is recorded in the Official Records of Santa Clara County and expiring
concurrently with the expiration of the later to expire of Opportunity Fund Regulatory
Agreement, Affordable Housing Fund Regulatory Agreement -Stanford, and the TCAC
Regulatory Agreement.
"Land" means the real property commonly known as 488 West Charleston Road, Palo
Alto, California, and legally described in Exhibit A, attached hereto and incorporated by
reference herein.
"LP Investor" means Wincopin Circle LLLP or The Banc of America Housing Fund VIII
Limited Partnership, LLLP, and its successors and assigns.
101012 dOl 0120468 4
"Median Income" means the median income for households in Santa Clara County, State
of California, as determined from time to time by BUD in a manner consistent With the
determination of median gross income under the Section 8 program and published by BUD In
the. event that such income determinations are no longer determined and published by HUD or
State HCD, or are not updated for a period of at least 24 months from the date of the previous
publication, the City shall provide Tree House LP with other income determinations that are
reasonably similar with respect to methods .of calculation contained in that previous HUD
publication. ~ ..
"Mortgagee" means a mortgagee of a mortgage; beneficiary of a deed of trust, or the
secured party under any other financing device encumbering the Project.
"County of Santa Clara -Stanford" means the loan in the amount of $960,000 provided
by the County of Santa Clara from the Stanford Affordable Housing Fund for the construction
and development of the Project.
"Tree House LP" means Tree House Apartments, L.P. and any successor owner of the
Property during the term of this Regulatory Agreement.
"Partnership Loans" means the acquisition loan in the principal amount of $2,838,557
and the loan in the amount of $2,500,000 made to Tree House LP by the City for housing
construction and development costs.
"Partnership Note" means the promissory note in the amount of $2,838,557 and the
Amendment No. One thereto increasing the principal amount by $2,500,000 executed by Tree
House LP evidencing the Partnership Loans.
"Party" means any party to this Agreement. The "Parties" shall be all parties to this
Agreement.
"Project" or "Property" means the improvements constructed on the land for the purpose
of providing 34 rental housing· units (plus a manager's unit) which shall be offered for rent and
occupied as provided in this Regulatory Agreement.
"Regulatory Agreement" means this "Regulatory Agreement and Declaration of
Restrictive Covenants for Tree House Apartments".
"Rent" means the sum total of all monthly payments to be made by the Tenant of a Unit
for the following privileges: use and occupancy of the Unit and associated facilities, including
parking; any separately charged fees or service charges assessed by Tree House LP which are
required of all Tenants, other than security deposits; and the cost of an adequate level of service
for utilities paid by the Tenant, as determined by the applicable utility allowance for the Units as
set by the Housing Authority under the Section 8 program regulations.
"Restricted Unit(s)" means any or all of the 34-apartment Units that are subject to the
use, occupancy and rent restrictions of this Agreement.
101012 QDl 0120468 5
"Section 8" means Section 8 of the United States Housing Act of 1937 ("Act"), as
amended.
"Section 8 Assistance" means rental assistance on behalf of households living at the
Property provided pursuant to Section 8, whether indirectly pursuant to a Section 8 Housing
Assistance Program contract, or directly pursuant to tenant-based Section 8 vouchers or
certificates.
<' ':II"
"Section 8 Assistance Program" means a program funded by HUD that provides rental
assistance on behalf of Very Low and Low-Income Households, or a successor federal or State
rental assistance program providing similar assistance.
"Section 8 Assisted Household" means a household that holds a valid voucher or
certificate under a Section 8 Assistance Program.
"Site Plans" means the final site plans for the Project and conditions of approval for
Architectural Review (application file number 08-PLN-00227), as approved by Resolution No.
5034 of the City Council on March 30,2009, as may be subsequently modified, with approval of
the City's Director of Planning and Community Development.
"State HCD" means the California Department of Housing and Community
Development.
"Tax Credit Regulations" means the laws, statutes, rules, regulations, notices and
memoranda issued pursuant to the United States low-income housing credit (Section 42 of the
Internal Revenue Code).
"TCAC" means the California Tax Credit Allocation Committee, or such other body or
entity that allocates Federal Low Income Housing Tax Credits in the State of California.
"TCAC Regulatory Agreement" means the fifty-five (55) year regulatory agreement that
will be recorded by the TCAC against the Project to secure compliance by Tree House LP with
the Tax Credit Regulations. .
"Term" means the term commencing on the date of recordation of this Agreement and
expiring on the 55th year anniversary of its commencement.
"Unit or Units" means one of the 35-apartment units in the Project.
"Tenants" (individually, "Tenant") means the occupants of the Units.
"Very Low-Income Household" means a household with gross income that does not
exceed 50% of Median Income and which is otherwise a qualified Tenant under the Section 8 or
HUD Program Regulations.
"Very Low-Income Units" means the Units that are required to be occupied by Very
Low-Income Households.
101012 drn 0120468 6
the designated Very Low-Income Units from time to time, as vacancies occur and Tenant
incomes and household composition change, provided that the same proportions of each unit
type are maintained.
2.1.3 Manager's Unit:
The remaining one (1) Unit is not required to comply with the rent and occupancy
restrictions of this Section 2.1 if it is occupied by a residentlllanager as a condition of
employment.
2.2 Units Occupied by Section 8 Assisted Households
Units occupied by Section 8 Assisted Households shall be considered to be qualified
Extremely-Low Income or Very-Low Income Units based on each household's annual income as
certified pursuant to regulations and procedures of the Section 8 Assistance Program.
Notwithstanding anything to the contrary contained herein, the Rent for Units occupied by
Section 8 Assisted Households shall be set pursuant to Section 8 regulations and procedures.
2.3 Noncompliance
A failure by Tree House LP to maintain the rent affordability and occupancy restrictions
required by this Regulatory Agreement will constitute a default of this Regulatory Agreement
subject to the notice and cure provisions of Section 6.10. The Project will be deemed to be in
compliance with the affordability covenants, notwithstanding a temporary noncompliance with
the provisions of this Article, if the noncompliance arises as a result of an increase in the income
of any Tenant, and if the next vacancy is filled in accordance with this Regulatory Agreement.
2.4 Lease Provisions
Tree House LP shall include in the leases or rental agreements for all Units occupied by
Extremely Low-Income or Very Low-Income Households a provision which authorizes the
lessor to immediately terminate the tenancy of any Tenant, after the lessor determines that one or
more members of such Tenant's household has misrepresented any fact material to the Tenant's
qualification for occupancy. Each lease or rental agreement shall provide that the Tenant is
subject to the requirement for the execution of an annual income certification in accordance with
Section 4.1 below, and that, if the Tenant's income increases above the applicable income limits,
such Tenant's Rent may be increased.
2.5 Applicability of TCAC Regulations and TCAC Regulatory Agreement
During the term that the TCAC Regulatory Agreement is in effect, all definitions,
procedures and calculations related to the use and occupancy of the Units and the qualification of
Tenants including, without limitation, determination of Rent, Rent increases, household income
limits, income certification procedures, tenant selection procedures and the designation of
particular Units for each of the income categories as required by the TCAC Regulatory
Agreement shall be deemed to be in compliance with this Regulatory Agreement, for purposes of
this Article 2.
101012 dm 0120468 8
3.5 Costs of Operation and Maintenance
. The Tree House LP will be responsible for all costs of operating and maintaining the
Project, including but not limited to taxes, insurance and utilities. Tree House LP shall maintain
the Project in good repair and working order, and in a manner consistent with the housing quality
standards set forth in Section 882.109 (24 CFR Part 882 of the federal Section 8 Assistance
Program regulations), and all applicable City ordinances.
3.6 Property Inspections
Th~ City, or its authorized representatives, shall have the right to make periodic on-site
inspections of the Project and the Units during working hours upon reasonable notice to Tree
HouseLP. .
3.7 Budgets
The Tree House LP shall submit a copy of the Project's annual operating budget within
30 days of its adoption or, concurrently with its submittal of the annual operating budget
prepared for TCAC, whichev.er is earlier. The Tree House LP shall be required to obtain the
City's approval, not to be unreasonably withheld, of the annual operating budget for the Project
prior to its adoption, so long as the City notifies Tree House LP at least 60 days prior to the
commencement of a Fiscal Year that this requirement will apply for that Fiscal Year;
3.8 Reserves
Commencing 60 days after the City notifies Tree House LP that the City has elected to
invoke this provision, the Tree House LP will be required to maintain operating and replacement
Reserves satisfactory to the City and will not be permitted to withdraw funds from the Reserves
without the City's approval, not to be unreasonably withheld.
3.9 Management
Commencing 60 days after the City notifies' Tree House LP that the City has elected to
invoke this provision, the Tree House LP will be required to obtain the ,approval of the City, not
to be unreasonably withheld, to the operating management of the Project.
3.10 Nondiscrimination
With the exception of Units that are subject to an HAP Contract, all of the Units shall be
available for occupancy on a continuous basis to members of the general public in accordance
with the affordability covenants of Article 2. There shall be no discrimination against or
segregation of any person or group of persons on account of race, color, creed, religion, age,
familial status, sex, sexual orientation, marital status, national origin, ancestry, handicap, source
of income or any other arbitrary discrimination based on personal characteristics, in the leasing,
subleasing, transferring, use, occupancy, tenure, or enjoyment of any Unit, nor shall rree House
LP or any· person claiming under or through Tree House LP, establish or permit any such
practice or practices of discrimination or segregation with reference to the selection, location,
number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees of any Unit or
101012 dm 0120468 10
ARTICLE 4 -INCOME CERTIFICATION AND REPORTING
4.1 Income Certification
Tree House LP will obtain, complete and maintain on file, immediately prior to initial
occupancy and annually thereafter, an income certification from each Tenant renting any of the
Extremely Low-Income, and Very Low-Income Units. Tree House LP shall make a good faith
effort to verify that the income provided by an applicant, or o.ccupy.!ng household, in an income
certification is accurate in accordance with Section 8 Regulations. Copies of tenant income
certifications shall be made available to the City, including its designated representatives upon
request.
4.2 Reporting and Provision of Information
Tree House LP will submit reports in a format and at a time specified by the City. The
reports will contain such information as the City may then require to document compliance with
the use and occupancy restrictions and other requirements of this Regulatory Agreement. The
City, including its designated representatives, shall have the right to examine and make copies of
all books, records or other documents of Tree House LP which pertain to the Property or any
Unit and Tree House LP shall provide any information reasonably requested. Tree House LP
shall deliver to the City copies of all reports submitted to TCAC as may be requested by the City.
4.3 Records
Tree House LP shall maintain complete, accurate and current records pertaining to the
Property and the Units, and shall permit any duly authorized representative of the City to inspect
records, including records pertaining to incomes and household sizes of Tenants' households,
and the rents and other charges for occupancy of the Units during business hours upon
reasonable notice. All Tenants lists, applications and waiting lists relating to the Property shall
at all times be kept separate and identifiable from any other business of Tree House LP and shall
be maintained as required by the City,' in a reasonab~e condition for proper audit and subject to
examination by representatives ofthe City.
4.4 Financial Audits
Tree House LP shall provide City, during the term of this Regulatory Agreement, with
copies of audited financial statements of Tree House LP, including any management letter
comments on the adequacy of internal or operational controls, within one hundred fifty (150)
days of the close of each fiscal year of Tree House LP. City reserves the right, during the term of
_ this Regulatory Agreement, to audit the records, including the financial records supporting the
aforementioned financial statements, and other records and documents pertaining to the
operations of the Property.
4.5 Assignment or Transfer or Encumbrance
. Except for leases with the Tenants in "the ordinary course of business, Tree House LP
shall not cause or permit any voluntary transfer, assignment or encumbrance of its interest in the
Property or lease or permit a sublease of all or any part of the Property without first obtaining the
101012 dm 0120468 12
constitute a breach of this Regulatory Agreement. No consent to any assignment, encumbrance
or lease shall constitute consent to any subsequent assignment, encumbrance or lease, or a waiver
of any of the City's rights under this Regulatory Agreement. This Section 5.7 shall not apply to
the transfer of partnership interests in Tree House LP or to the transfer of the Project to Palo Alto
Housing Corporation or a wholly-controlled affiliate thereof.
ARTICLE 5 ~ NOTICES
.j(
All notices, consents, communications or transmittals required by this Regulatory
Agreement shall be made, in writing, and shall be communicated by the United States mail,
certified, return receipt requested or by express delivery with a delivery receipt, and shall be
deemed given as of the date shown on the delivery receipt as the date of delivery or the date on
which delivery was refused, and shall be addressed to the following addresses, or such other
address as either party may designate, from time to time, by written notice sent to the other party
in like manner:
To City:
Copy to:
To Tree House LP:
Copy to:
101012 dm 0120468
City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
Attn.: City Clerk
Director of Planning & Community
Environment
City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
Tree House Apartments, L.P.
c/o P AHC California Park Corporation.
725 Alma Street
Palo Alto, CA 94301
Attn: General Partner
The Banc of America Housing Fund VIII Limited
Partnership, LLLP
Wincopin Circle LLLP, and its successors and assigns
10227 Wincopin Circle, Suite 810
Columbia, Maryland 21044
Tel: (410) 964-0552; Fax: (410) 772-2630
Email: brothschild@enterprisecommunity.com
Attention: General Counsel"
14
time, be referred to in any duly executed amendment hereto are by such reference incorporated in
this Regulatory Agreement and shall be deemed to be part hereof. This Regulatory Agreement
may be executed in any number of counterparts, each of which shall be an original, but all of
which together shall constitute one and the same instrument. The paragraph headings are not a
part of this Regulatory Agreement and shall have no effect upon the construction or
interpretation of any part of this Regulatory Agreement. .
6.7 In the event that suit is brought by either party, the parties agree that trial of such
action shall be vested exclusively in the state court of California in the City of San Jose, County
of Santa Clara, or in the United States District Court for the Northern District of California in the
City of San Jose. The prevailing party in any action brought to enforce the terms of this
Regulatory Agreement or arising out of this Regulatory Agreement may recover its reasonable
costs and attorneys' fees expended in connection with such an action from the other party.
6.8 The provisions of this Regulatory Agreement shall apply to the Project for the
entire term hereof. This Regulatory Agreement shall bind any successor, heir or assign of Tree
House LP, whether a change in interest occurs voluntarily or involuntarily, by operation of law
or otherwise, except as expressly released by the City by a written amendment, signed by the
City, and recorded inthe Official Records of Santa Clara County. Tree House LP acknowledges
that the City has made the Partnership Loans on the condition that the provisions of this
Regulatory Agreement shall apply to the Property for its entire term, and in consideration of this
provision, and would not have done so otherwise.
6.9 The City and Tree House LP hereby declare their express intent that the covenants
and restrictions set forth ih this Regulatory Agreement shall run with the land and shall bind all
successors in interest to the Property, provided, however, that on the expiration of the term of
this Regulatory Agreement, the covenants and restrictions shall expire. Each and every contract,
deed or other instrument hereafter executed covering or conveying the Property or any portion
thereof shall be held conclusively to have been executed, delivered and accepted subject to such
covenants and restrictions, regardless of whether such covenants or restrictions are set forth in
such contract, deed or other instrument, unless the City expressly releases such conveyed portion
of the Property from the requirements of this Regulatory Agreement.
6.10 If Tree House LP fails to perform any obligation under this Regulatory
Agreement, and fails to cure the default within 30 days after the City has notified Tree House LP
in writing of the default or, if the default cannot be cured within 30 days, fails to commence to
cure promptly and thereafter diligently pursue such cure, the City shall have the right to enforce
this Regulatory Agreement by any remedy provided by law or equity, including, but not limited
to an action for specific performance to enforce the covenants and restrictions herein.
6.11 The rights of City under this Regulatory Agreement may be made subject to one
or more subordination agreements between lenders with security interests in the Project and City;
provided, however, neither Tree House LP nor any of its respective affiliates is an intended
beneficiary of, or has the right to enforce, any such subordination agreement, which may be
terminated and/or the terms of which may be modified from time to time by any such lender and
City, without the consent of, or notice to, Developer.
101012 dIll 0120468 16
written detennination ofthe Fair Market Value within forty-five (45) days after their selection.
If the two appraisals differ by less than fifteen percent (15%) of the lower of the two, the average
of the tW9 appraisals shall be the Fair Market Value, and shall be final and binding on the
Parties. If the appraisals differ by fifteen percent (15%) or more of the lower of the two, the
Parties shall deliver copies of both appraisals to the Referee, the Referee shall select, within
thirty (30) days after receipt, the appraisal which he or she believes more accurately represents
the Fair Market value. The Fair Market Value set forth in the appraisal selected by the Referee
shall be the Fair Market Value, and shall be final and binding en'Parties. The cost of each
appraisal shall be paid by the Party for whom it is performed, and the cost of the Referee shall be
shared equally. .
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101012 dm, 0120468 18
CERTIFICATE OF ACKNOWLEDGMENT
(Civil Code § 1189)
STATE OF CALIFORNIA )
f )
COUNTY OF::;c"'+t"~ ~'-) ,
On r~ lJG\. 2D \0 ,before ~t,<~\',"'D Jv\\f)cf-,a notary public in and
for said County, personally appeared C ~(1 ~L. bot)3?)Jf ~ who proved
to me on the basis of satisfactory evidence to be the perso~ ""?those nam¢ffi') diare
subscribed to the within instrument and acknowledged to me that h~/they executed
the same in his@ltheir a~thorized capacit~), and that by hi~heir signatur~ on
the instrument the persodkt), or the entity upon behalf of which the perso~' acted,
executed the instrument. .
I certify under penalty of perjury under the laws of the State of California that the
foregoing paragraph is true and correct.
la' , " BETH D. MiNoR ( -.COMM. # f19276~ VI NOTARY PiJaUC·CAUFOIlNIA rn ~ SANTA CLARA COUNTY :
, MY Cou:" E~.MAR. 3; 20!2 I
WITNESS my hand and official seal.
'---:tSazt~ (}~
Notary Public
101012 dIll 0120468 20
EXHIBIT A
LEGAL DESCRIPTION
Order Number: NCS-262686-SC
Page Number: 7
Real property in the City of Palo Alto, County of Santa Clara, State of California, described as
follows:
BEGINNING AT A POINT IN THE NORTHWESTERLY LINE OF CHARLESTON ROAD, AS SAID
ROAD EXISTED PRIOR TO WIDENING AT THE INTERSECTION THEREOF WITH THE
NORTHEASTERLY LINE OF THAT CERTAIN 0.014 ACRE PARCEL OF LAND CONVEYED BY DEED
FROM MABEL T. SISSON TO THE UNO G. ABRAHANSON, ET UX, DATED AUGUST 20,1947 AND
RECORDED SEPTEMBER 5, 1947 IN BOOK 1502 OF OFFICIAL RECORDS, PAGE 172, SANTA
CLARA COUNTY RECORDS; THENCE FROM SAID POINT OF BEGINNING RUNNING THENCE
NORTHEASTERLY ALONG THE SAID NORTHWESTERLY LINE OF CHARLESTON ROAD 182.70
FEET TO THE MOST SOUTHERLY CORNER OF THAT CERTAIN PARCEL OF LAND DESCRIBED AS
PARCEL NO.1 IN THE DEED FROM BORACE H. SISSON, AT UX TO PHILLIP DE ROSA, EF UX
DATED JUNE 19, 1956 AND RECORDED JULY 2, 1956 IN BOOK 3539 OF OFFICIAL RECORDS,
PAGE 23, SANTA CLARA COUNTY RECORDS; THENCE LEAVING SAID LINE OF CHARLESTON
ROAD AND RUNNING NORTH 45°17' WEST ALONG THE SOUTHWESTERLY LINE OF SAID
PARCEL NO.1 HEREINABOVE REFFERED TO A DISTANCE OF 180.17 FEET TO THE MOST
WESTERLY CORNER THEREOF IS THE NORTHWESTERLY LINE OF THE PARCEL OF LAND
DESIGNATED PARCEL NO.2 IN THE DEED FROM SAN JOGE ABSTRACT AND TITLE INSURANCE
CO., A CORPORATION, TO MABEL T. SISSION, DATED JANUARY 23, 1951 AND RECORDED
JANUARY 24, 19511 BOOK 2139 OF OFFICIAL RECORDS, PAGE 361, SANTA CLARA COUNTY
RECORDS; THENCE SOUTH 42°12'17" WEST ALONG SAID LAST MENTIONED NORTHWESTERLY
LINE A DISTANCE OF 170.01 FEET TO THE MOST WESTERLY CORNER OF THE PARCEL SO
DESIGNATED PARCEL NO.2 IN THE SAID DEED TO SISSON; SAID CORNER BEING IN THE
NORTH-WESTERLY PROLONGATION OF THE NORTHEASTERLY LINE OF THE 0.01 ACRE PARCEL
OF LAND HEREINABOVE REFERRED TO; THENCE SOUTH 41°16'14" EAST ALONG SAID
PROLONGED LINE AND ALONG THE SAID NORTHEASTERLY LINE OF THE 0.014 ACRE PARCEL
ABOVE REFERRED TO 181.17 FEET TO THE POINT OF BEGINNING, AND BEING A PART OF THE
RANCHO RINCON DE SAN FRANCISQUITO.
EXCEPTING THEREFROM ALL THAT PORTION CONTAINED IN THE FINAL JUDGMENT.oF
CONDEMATION IN THE MAnER OF THE CITY OF PALO ALTO, ETC., PLAINTIFF, VA. HERBERT
O'NEAL, ET AL, DEFEDANTS, CASE NO. 120429 IN THE SUPERIOR COURT OF THE STATE OF
CALIFORNIA IN AND FOR THE COUNTY OF SANTA CLARA, A CERTIFIED COPY OF WHICH WAS·
RECORDED SEPTEMBER 13, 1960, IN BOOK 4914, PAGE 503, OF OFFICIAL RECORDS,
DESCRIBED AS FOLLOWS;
BEGINNING AT A POINT ON THE NORTHWESTERLY LINE OF WEST CHARLESTON ROAD (40'
WIDE, DISTANT THEREON NORTH 42°12'07" EAST 230.13' FROM THE POINT OF
INTERSECTION THEREOF WITH THE PROLONGED NORTHEASTERLY LINE OF EL CANINO REAL;
THENCE NORTH 42°12'07" EAST ALONG SAID NORTHWESTERLY LINE OF 182.70'; THENCE
NORTH 45°17'23" WEST 8.01'; THENCE SOUTH 42°12'07" WEST 181.53'; THENCE SOUTH
37°01'23" EAST 8.14' TO THE POINT OF BEGINNING BEING A PORTION OF THE RANCHO
RINCON DE SAN FRANCISQUITO. And Further Excepting and together with the above described
Exception an Easement for public utilities and tree planting purposes, five feet in width, lying
adjacent to and NWly from the NWly line of the hereinabove described parcel.
APN: 132-46-072
First American Title Insurance Company
EXHIBITB
INSURANCE REQUIREMENTS
1. BUILDER'S RISK insurance, to cover the Project's construction, with coverage limits in the
total amount of all construction contracts covering the Project in connection with this Agreement.
Such coverage shall remain in effect until the completion of the Project.
2. FIRE AND EXTENDED COVERAGE insurance~ to cover not less than One Hundred
Percent (100%) of the replacement cost of all insurable improvements within or upon the Property, at
all times following completion of the Project. Such policies shall include water damage and debris
cleanup provisions.
POLICY MINIMUM LIMITS OF LIABILITY
3. WORKERS COMPENSATION Statutory
4. COMPREHENSIVE AUTOMOBILE Bodily Injury
LIABILITY; including owned hired, and
nonowned automobiles Property Damage
5. COMMERCIAL GEN;ERAL Bodily Injury
LIABILITY, including products and
completed operations, broad form
cOI1-tractual, and personal injury. Property Damage
$2,000,000 ea person
$2,000,000 ea occurrence
$2,000,000 ea person
$2,000,000 ea. occUrrence
$2,000,000 aggregate
$2,000,000 ea occurrence
Each insurance policy required by this 'Agreement shall contain the following clauses: 1.
This insurance shall not be canceled, limited in scope of coverage or nonrenewed until after
thirty (30) days written notice has been given to the: City of Palo AltolPlanning and Community
Environment Department, P.O. Box 10250, Palo Alto, CA 94303.
2. All rights of subrogation are hereby waived against the City of Palo Alto and the
members of the City Council and elective or appointive officers or employees, when acting within
the scope of their employment or appointment.
3. The City of Palo Alto is added as an additional insured as respects operations of the
named insured, but only as to work performed under this Agreement.
4. It is agreed that any insurance maintained by the City of Palo Alto will apply in excess
of, and not contribute to, insurance provided by this policy.
All insurance coverage required shall be provided through carriers with a BEST KEY
RATING GUIDE rating of A:VII or higher that are ~dmitted or approved to do business in the State
of California. The certificate(s) of insurance evidencing such coverage shall be completed and
executed by an authorized representative of the company providi,ng insurance, and shall be filed with
and approved by City's risk manager.
13
TO: HONORABLE CITY COUNCIL
FROM:
DATE:
CITY MAt"'JAGER
OCTOBER 18, 2010
DEPARTMENT: HUMAt"'J RESOURCES
CMR: 384:10
REPORT TYPE: CONSENT
SUBJECT: Appointment oflnterim City Attorney
RECOMMENDATION
Approve Council Appointed Officers (CAO) Committee recommendation to appoint
Assistant City Attorney Don Larkin as Interim City Attorney and authorize the City Manager
to coordinate with the CAO Chair to finalize the appropriate level of compensation.
DISCUSSION
City Attorney Gary Baum will be retiring on October 30, 20 I 0 and an Interim City Attorney
must be appointed until a new City Attorney is hired. The executive search firm of Bob
Murray and Associates has been retained to conduct the recruitment for the new City
Attorney and this process will take several months.
The CAO Committee met on October 12,2010 to discuss various interim options and as a
result recommends that Assistant City Attorney Don Larkin be appointed as Interim City
Attorney during the transition period, Don Larkin has worked closely and effectively with all
the City departments during the past five and a half years and will provide the necessary
continuity and stability needed until the new City Attorney is appointed,
DEPARTMENT HEAD:. ___ D..::;;· .=.-"--:.:(:;;:,,. . ...::c-::::: =C=,--_'_, ____ _
Russell Carlsen
CITY MANAGER APPROVAL:_----;>1T-~-'-'-___L...,...,:__-'¥=-----
J
CMR:384:10 Page 10fl
TO: HONORABLE CITY COlJNCIL
FROM: CITY MANAGER DEPARTMENT: CITY MANAGER'S OFFICE
DATE: OCTOBER 18, 2010 CMR: 380:10
REPORT TYPE: ACTION
SUBJECT: Recommendation of the Council Ad-Hoc Committee to Adopt an
Ordinance Amending Section 2.23.050 of Chapter 2.23 of Title 2 the
Palo Alto Municipal Code to Add the Subjects of Wastewater
Collection and Fiber Optics to the Duties of the Utilities Advisory
Commission
RECOMMENDATION
The Council Ad Hoc Committee to review the purpose and duties of the Utilities Advisory
Commission (UAC) recommends that the City Council adopt an ordinance amending Section
2.23.050 of the Palo Alto Municipal Code to reflect certain changes in the UAC's purpose and
duties.
BACKGOUND
On July 6, 2009, the Council moved "for the Mayor [then Mayor Drekmeier] to appoint a
Council subcommittee to review the role of the UAC and return with a report before the second
reading of the Ordinance." The mayor appointed the then Chair of the Policies and Services
Committee (Vice Mayor Espinosa), the then Chair of the Finance Committee (Mayor Burt) and
the Council liaison to the UAC (Council Memher Yeh) to the Ad Hoc Subcommittee.
The Ad Hoc Committee met four times from August 11, 2009 to September 8, 2010. The
committee schedule and agendas are provided in AttacIunent B. In the process, the committee
condueted research to assist in its discussions. Staff prepared and the committee reviewed the
responses to a survey of the organizational structure of other utility boards and commissions in
the state, provided in AttacIunent C. In November 2009, the committee also conducted a survey
of previous UAC commissioners to get their insights into what worked or didn't work in terms of
the UAC's interactions with staff and the Council and what changes would be recommended in
the purpose and duties of the UAC.
DISCUSSION
One of the major topics of discussion by the committee was whether to add the Wastewater
Collection and Fiber Optics Funds to be under the purview of the UAC. While there was debate
about whether this should be expanded even further to include all services shown on customers'
CMR: 380:10 Page I of3
utility bills, the Ad Hoc Committee decided to move forward with the recommendation on
adding the Wastewater Collection and Fiber Optics Funds and defer discussion on other utilities
services provided by the Public Works Department to a later time, after further meetings and
discussion with thc City Manager.
Two other issues extensively discussed were the UAC's ability to raise issues with the Council
and suggest revisions to existing policies, and allowing the UAC to facilitate engagement with
the general public. The Ad Hoc Committee members stated that they wanted it to be clear that
the UAC was empowered to raise issues with the Council and suggest new policies direction or
amendments to existing policy. Some modifieations to the Municipal Code were agrecd upon to
make this role/ability clearer. The Ad Hoc Committee members also stated that they would like
the UAC to have the ability to foster and facilitate engagement with the general public, including
representatives of commerce and industry, in regard to the Utilities Department's matters.
However, the language was crafted so that this was an ability, not a mandate, and would be at the
discretion of the City Council.
Finally, the Ad Hoc Committee members stated their expectation that the UAC would dcvelop
its own bylaws.
Additional meetings of the Ad Hoc Committee and the City Manager would be required for any
potential further expallSion of the' UAC's purview of certain services provided by the Public
Works Department.
AD-HOC COMMITTEE REVIEW AND RECOMMENDATIONS
1. Expand the UAC's purpose and duties to advise the City Council on present and
prospective long-range planning and policy and major program and project matters
relating to the Wastewater Collection and the Fiber Optics Funds.
2. Expand the UAC's role, subject to thc discrction of the City Council, to foster and
facilitate cngagement with thc general public, including representatives of commerce and
industry, in regard to utility matters.
3. ClarifY the UAC's ability to raise issues with the City Council and suggest revisions to
existing policies.
RESOURCE IMPACT
Any resource impacts to implement these changes to the UAC's roles and responsibilities are
expected to be an incremental increase in staff time to bring wastewater eollcction and fiber
optics fund matters to the UAC and additional staff time as might be needed to facilitate
engagement with the general public.
POLICY IMPLICATIONS
The proposed modifications to the Municipal Code expand the UAC's pnrpose to advise the City
Council on present and prospective long-range planning and. policy and major program and
projeet matters relating to the Wastewater Colleetion and the Fiber Optics Funds.
CMR: 380:10 Page 2 of3
The proposed modifications would also expand the UAC's role, subject to the discretion of the
City Council, to foster and facilitate engagement with the general public, including
representatives of commerce and industry, in regard to the utility matters.
ENVIRONMENTAL REVIEW
Adoption of this Ordinance does not meet the California Environmental Quality Act's definition
of a project pursuant to Public Resources Code Section 21065, and therefore, no environmental
review is required.
ATTACHMENTS
Attachment A: Ordinance of the Council of the City of Palo Alto Amending Section 2.23.050 of
Chapter 2.23 of Title 2 of the Palo Alto Municipal Code
Attachment B: City Council UAC Ad Hoc Committee Meeting Schedule and Agendas
Attachment C: Survey of the Organizational Structure of Other Utility Boards and Commissions
in the State
PREPARED BY:
CITY MANAGER APPROVAL:
CMR: 380:10
DEBRA LLOYD .r; L-
Acting Assistant Director, Utilities Resource
Management
~_/h-..~ SKEENE/J
Manager U
Page 3 of3
follows:
Not Yet Approved
Ordinance No. -,--_~_
Ordinance of the Council of the City of Palo Alto
Amending Section 2.23.050 of Chapter 2.23 of Title 2
of the Palo Alto Municipal Code to Add the Subjects
of Wastewater Collection and Fiber Optics to the
Purposes and Duties of the Utilities Advisory
Commission
ATTACHMENT A
NOW, UIEREFORE, the Council of the City ofPaIo Alto does ORDAIN as
SECTION 1. Section 2.23.050 of Chapter 2.23 of Title 2 of the Palo Alto
Municipal Code is hereby amended to read, as follows:
2.23.050 Purposes and duties.
(a) The purpose of the utilities advisory commission shall be to advise the city
council on present and prospective long-range planning and policy and major program
and project matters relating to the electric utility, gas utility, water utility, wastewater
coIlection utility, aa4-fiber optics utilitv and the suBjeet'fJl'-recycled water.lIllltters,
excluding daily operations.
(b) The utilities advisory commission shall have the following duties:
(1) Advise the city council on long-range planning and policy matters
pertaining to:
(A) ~isition and dDevelopment of the electric utility, gas
utility, water utility, wastewater collection lJlility. fiber optics utility. and the recycled
water resources,;
(B) Joint action projects with other public or private entities
which involve, affect or impact the electric utility, gas utility, water utility, wastewater
collection utilitv, fib~Loptics utility, and the recycled water resources,;
(C) Environmental ilfljliieati1;lHSaspects and attributes of the
electric utility, gas utility, water utility, wastewll.1eJ collection u,tility, fiber optics utility.
and the recycled water projeetsreSoUrcll,;
(D) Water and energy G£onservation, energy efficiency. and
demand side management,; and
lOI008 jb 0073411
(E) Recycled water matters not otherwise addressed in the
preceding subparagraphs (A) through (Dh
(2) Review and make recommendations to the city council on the
consistency with adopted and approved plans, aOO-policics, and programs of any major
electric utility, gas utility, water utility, wastewater collection utility, fiber optics utility,
or the recycled water p~'esource;
(3) Fonnulatc and review legislative proposals regarding the electric
utility, gas utility, water utility, wastewater collection utilitv, fiber optics utility and
aHYthe recycled water ojleFaHomesource, to which the city is a party, ol'-in which the city
has an interest, or by whi()h the city may be affected;
(4) Review the electric utility, gas utility, aOO-water utility, wastewater
collection utility, and fiber optics utility capital improvement programs, operating
budgets and related reserves, and rates, and the recycled water program, budget, and rate,
and thereafter forward any comments and recommendations to the finance committee or
its successor;
(5) Provide advice upon such other matters as the city council may
from time to time assign.
The utilities advisory commission shall not have the powcr or authority to cause
the expenditure of city funds or to bind the city to any written, oral or implied contract.
__ --\C.:o:.c) The utilities ad"is()ry commission may, subject to the discretion of the city
£Quncil, foster and facilitate engagement with the general pupUc, including
representatives of commerce and industry, in regard to the utility matters referred to in
subsections Cb)(J)(A) through (E)
SECTION 2. The Council fmds that the addition of duties and purposes of
the Utilities Advisory Commission to Chapter 2.23 of the Palo Alto Municipal Code does
not meet the definition of a project under the California Environmental Quality Act
pursuant to California Public Resources Code Section 21065, and therefore no
environment impact assessment is necessary.
/I
/I
/I
II
II
101008 jb 007J411
SECTION 3. This ordinance shall become effective upon the commencement
of the thirty-first day after the date of its adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST: APPROVED:
City Clerk Mayor
APPROVED AS TO FORM: City Manager
Senior Asst. City Attorney Director of Utilities
Director of Adffiinistrative Services
101008 jb 0073411
1
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:
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City Council UAC Ad Hoc Committee
Meeting Schedule
August 11, 2009
8:30am
Council Conf Room
September 21, 2009
5:00pm
Council Conf Room
August 2, 2010
8:00am
City Manager's Conf
I Room
September 8, 2010
6:00pm
Council Conf Room
Ad Hoc Committee Workplan
Purpose of UAC Ad Hoc Committee
Deliverables of the UAC Ad Hoc Committee
Workplan Discussion (information needs)
Timeframe for Deliverables
Next Meeting Dates
UAC Programs and Policies
Fiber Optic Utility Oversight
Wastewater Collection Oversight
Environmental Policy Oversight
O.5¢/kwH Renewable Purchase Policy
Off-Bill Financing
UAC Orientation/Bylaws
Community Outreach
SpeCialists/Stakeholders Forum
UAC Organization, Roles, and
Responsibilities
Utilities Staff, UAC, and City Council
Municipal Code Roles/Responsibilities Matrix
Ad Hoc Committee Wrap-up
Review CounCil deliverable
Results of What Works Well and What
Doesn't? (Survey of former Council Liaisons
and UAC Commissioners)
Results of Review of Other Jurisdictions ... Oversight of Pubhc Ulilities (Survey of
California Municipal Utilities Association)
ATTACHMENT B
City Council, City
Manager, City Attorney,
Utilities Department
Staff
City CounCil, City
Manager, City Attorney,
Past and Present UAC
Commissioners, Utilities
Department Staff
I
City Council, City I
Manager, City Attorney,
Past and Present UAC
Commissioners, Utilities
Department Staff
City Council, City
Manager, City Attorney,
Past and Present UAC
Commissioners, Utilities
Department Staff
!
a b"dget
I
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gas, ESMIUO provides waI.erI StoCaJGas providss gasj ~~~afGiiIS PI'I.lYkfe.s;
am! clslifJe$ tIroir ad'llsl!fy role
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PG&L pro\lJde$ watel',
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participation portion of its Consolidated Planning process, and 2) shift the CDBG advisory role
from a separate Citizens Advisory Committee (CAC) to the established HRC
The amended Citizen Participation Plan has been available for public review and comment for a
30-day period from September 17, 2010 to October 18,2010. In a letter dated September 15,
2010, the Citizen Advisory Committee members were informed of the proposed changes and
given the opportunity to comment on the draft CPP. Staff has not received any comments on the
proposed CPP from any member of the CAC. The HRC also received a copy of the draft CPP
and discussed the proposed changes at their regularly scheduled meeting on September 28,2010.
Consolidated Annual Performance and Evaluation Report (CAPER)
Staff has also provided for the City Council a copy of the Consolidated Annual Performance and
Evaluation Report (CAPER), a requirement of the U.S. Department of Housing and Urban
Development for the receipt of Federal CDBG funds. (Attachment B) The CAPER provides a
summary of the funding resources available and the programmatic accomplishments in
affordable housing and community development activities during the 2009/10 fiscal year. It
evaluates the actions taken by the City to implement the strategies and objectives described in
the Consolidated Plan for the period July 1, 2005 to June 30, 2010, and the progress made in
addressing identified priority needs. The CAPER was submitted to HUD on September 30,
2010, following the required 15-day public review period. The document is being provided to
the City Council for informational purposes, and no Council action is required.
DISCUSSION
New HUD Regulations
New HUD regulations and directives require the updating of Citizen Participation Plans to
include information on the accommodations available to persons with disabilities and persons
with limited English proficiency, and how they can be requested or accessed in the Consolidated
Planning process. The. Consolidated Plan is a five-year strategic plan that identifies priority
housing and non-housing community development needs and sets forth a strategy to address
those needs. The provision of affordable rental units continues to be the most significant need in
Palo Alto. Also, a critical need is the alleviation of the high cost of housing for lower income
renter households especially for the elderly. Another continuing high priority need is to provide
housing opportunities for low income homeless persons or persons at risk of homelessness,
especially families with children and persons with special needs.
Citizens Advisory Committee and Human Relations Commission
The City has historically appointed a Citizen Advisory Committee to provide for and encourage
citizen participation in the planning, implementation and assessment of the CDBG process. A
member of the HRC has traditionally filled one of the CAC slots in order to provide a
collaborative link between the CDBG funding process and the Human Service Resource
Allocation Process (HSRAP). Over the years, the CAC membership has been reduced from
fifteen to nine to seven members as a result of recruitment difficulties. For a variety of reasons, it
has become increasingly difficult to recruit, train and retain CAC members. The last
recruitment process yielded only five members for the seven member committee. The
Committee's infrequent meetings and limited scope of responsibility are not conducive to
effectively engaging citizens in the process. The change in the CDBG process several years ago
CMR: 375:10 Page 2 of5
to a two-year funding cycle to streamline the process has added to the difficulty in recruiting and
retaining CAC members. With the two-year cycle, the CAC meets approximately eight times
during January and February every other year and two to three times a year during the
intervening years.
Following a comprehensive regulatory review of the CDBG program, and a survey of other
cities, staff proposes to have the established HRC, rather than a separate CAC, provide the
citizen participation component of the plan. Most other cities utilize established committees or
commissions with a wider range of responsibilities to review and assess the CDBG program.
Staff believes using the HRC as the forum for public participation would provide administrative
efficiencies that would considerably reduce staff resources for the program as well as provide a
more coordinated and effective approach to address the City's human service needs. In May,
during its review of the CDBG funding allocations, the City Council directed staff to identify
ways to reduce the administrative costs of the CDBG program; eliminating the CAC is one way
of reducing the overall costs of the program. The funding application processes for fiscal years
2011112 and 2012/13 for both HSRAP and CDBG begin this fall. If Council adopts the amended
Citizen Participation Plan, both processes could be coordinated from the beginning of this two-
year cycle.
The HRC is charged with "the discretion to act with respect to any human relations matter when
the Commission finds that any person or group does not benefit fully from public or private
opportunities or resources in the community, or is unfairly or differently treated due to factors of
concern to the Commission." The_HRC already meets on an on-going basis and currently has the
task of annually reviewing applications for the Human Service Resource Allocation Process
(HSRAP) funding and making recommendations to the City CounciL There is a great deal of
overlap in the issues before the HRC and the CDBG goals and objectives detailed in the strategic
Consolidated Plan for the period 2010-2015, such as addressing affordable housing issues,
homelessness, the needs of seniors and persons with disabilities, impediments to fair housing
choice, nutrition, mental health, health care, domestic violence prevention, etc. It is anticipated
that a more coordinated, synchronized approach to the City's two human service funding sources
will promote internal efficiencies and further reduce staff costs, produce a more colla,borative
process, and provide greater benefit to program beneficiaries.
HRC Comments
At its regularly scheduled meeting on September 28, 2010, the HRC met to discuss the proposed
amendment to the Citizen Participation Plan. Planning staff explained that the proposed changes
to the citizen participation plan process are intended to provide more efficient and effective
review of the CDBG applications and allocation of funding. This would be accomplished by
providing a more visible public forum (HRC meetings) for review of the applications, by
facilitating more collaboration between the HSRAP and CDBG processes and by reducing
administrative costs for a separate advisory committee. The HRC supported the proposal
unanimously, citing benefits that would be derived if one group was responsible for identifying
the most effective use of the combined CDBG/HSRAP funds.
CMR: 375:10 Page 3 of5
ALTERNATIVE TO STAFF RECOMMENDATION
The City Council may decide to continue with the existing Citizen Advisory Committee to meet
the citizen participation requirements of the CDBG program and not to transfer this
responsibility to the Human Relations Commission. If this is the case, staff will advertise and
recruit for new Citizen Advisory Committee members to fill the vacant positions. A member of
the HRC will be asked to participate in this capacity. The changes to the Citizen Participation
Plan will only include the HUD directives relating to accessibility in the Consolidated Planning
process.
RESOURCE IMPACT
Having the HRC review the CDBG funding recommendations will eliminate the time needed to
recruit, train and staff a separate Citizen Advisory Committee. The increased coordination and
collaboration of the two funding processes through the HRC should also lead to increased
effectiveness by linking locally determined needs and priorities with all the available resources.
While the City's cost to administer the CDBG program has increased over the years, the amount
of CnBG funds available to cover program administrative and planning expenses has actually
decreased. Hun regulations limit the amount of the money that can be allocated to program
administrative expenses to 20% of the grant. In fiscal year 1994/95 the CDBG grant allocation
was $766,000 (20% = $153,200), and in fiscal year 2010/11, the CnBG grant allocation is
$731,566 (20% = $146,313). In order to avoid subsidizing the administrative expenses with
General Funds as directed by Council, the CnBG program administration costs would need to be
reduced. The proposed C(hange to the Citizen Participation Plan will reduce redundancy and
utilize staff time more efficiently, potentially saving General Fund expenditures but not at the
expense of meeting the goals of the overall CnBG program. Staff estimates that program
administrative costs would be reduced by approximately 10% annually in this way. Staff is also
exploring additional ways of reducing the administrative overhead for the program.
POLICY IMPLICATIONS
The proposed amendment to the Citizen Participation Plan is consistent with existing policy that
encourages streamlining and the reduction of inefficiencies. It also encourages coordination and
collaboration between the Human Service Resource Allocation Process and the CDBG funding
process, resulting in a more consistent, effective and leveraged response to the human service
needs in the community.
ENVIRONMENTAL REVIEW .
Adoption of the Amended Citizen Participation Plan is exempt from the California
Environmental Quality Act (CEQA) and the National Environmental Policy Act (NEPA).
CMR: 375:10 Page 4 of5
Introduction
Community Development Block Grant (CDBG) Program
The City of Palo Alto receives an annual allocation of Community Development Block Grant
(CDBG) funds directly from the u.s. Department of Housing and Urban Development (HUD).
The CDBG program addresses the creation of viable urban communities by providing decent
housing, a suitable living environment and the ability to expand economic opportunities,
·principally for persons of low and moderate income.
Consolidated Plan, Action Plan and Performance Report
In order to receive CDBG funding, Title I of the National Affordable Housing Act mandates the
preparation of a strategic five-year Consolidated Plan that identifies priority housing and
community development needs, and sets forth a strategy to address those needs. An Action Plan
is prepared, annually to identify specific projects to be funded to implement the goals and
objectives identified in the Consolidated Plan. A Comprehensive Annual Performance and
Evaluation Report (CAPER) is prepared at the end of each program year to evaluate and report
on the goals and objectives achieved with the annual grant allocations.
Citizen Participation Objectives
A primary objective of the Housing and Community Development Ad of 1987 is the provision
of adequate opportunities for citizens, non-profit organizations and other interested parties to
review and comment on the planning, implementation and assessment of the CDBG program.
It is the intention of the City of Palo Alto to adopt and follow a detailed Citizen Participation
Plan in order to encourage meaningful citizen involvement, public examination and appraisal of
the process, as well as to enhance program accountability. The Citizen Participation Plan will
include the following objectives:
1. To adhere to and comply with the proyisions of the Community Development Act of
1987, as amended, and all other federal regulations.
2. To encourage the participation of citizens in the planning, implementation and
assessment of the CDBG program, especially those of low and very low income,
members of minority groups, residents of areas where funds will be expended,
persons with limited English proficiency, the elderly, individuals with disabilities,
and other neighborhood, non-profit or civic groups.
3. To make information about the CDBG program and process available to the public
through reasonable and timely access to information including publications in local
newspapers, public hearings, public meetings, the City's website, and the provision of
technical assistance.
1
City of Palo Alto
Citizen Participation Plan
Part I. The City Council
1. The City Council sets policy, priorities, and approves the overall Community
Development Block Grant allocations.
2. The City Council will hold a minimum of two public hearings per year for the purpose of
obtaining citizens' views and formulating or responding to proposals and questions. The
public hearings will be held at different stages of the program year so that together they
address community development and housing needs, development of proposed activities
and program performance.
3. At least one public hearing will be held before a draft Consolidated Plan is published for
comment.
4. All public hearings will be held at times and locations convenient to potential and actual
program beneficiaries, with reasonable accommodations for persons with disabilities.
Generally, public hearings will be held at City Hall in the evenings because the facility is
centrally located, accessible by public transportation, and has disabled access.
5. Translation services will be provided when a significant number of non-English speaking
residents can be reasonably expected to participate, or when a reasonable request for such
an accommodation is made.
6. Actions of the City Council will direct the implementation ofCDBG funded projects.
Part II. The General Public
1. The general public is encouraged to participate in the various stages of the CDBG
program by attending and commenting at the noticed public hearings. They are also
encouraged to express their views and comments directly to the CDBG Coordinator in
the Planning Division, or receive program information from the Planning Staff, on the 5th
floor of City Hall, 250 Hamilton Avenue, Palo Alto, CA 94301.
2. At any time, citizens may submit views concerning Palo Alto's performance in the
CDBG program to the HUD Area Office at 600 Harrison Street, San Francisco, CA
94107-1300.
3. The City's website (cityofpaloalto.org) contains the adopted Consolidated Plan, and
either the approved or draft versions of the Annual Action Plans and Performance
Reports, the CDBG annual program timeline, and other pertinent program records,
documents and information. Interested citizens are encouraged to review the material on
2
line, download files, and provide comments or suggestions via letter, or e-mail to the
CDBa Coordinator.
4. Upon request, materials and information will be made available in a format accessible to
persons with disabilities. 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 Larry
Perlin, ADA Director, City of Palo Alto, 250 Hamilton Avenue, Palo Alto, CA 94301;
(650) 329-2550 (Voice) or (650) 329-1199 (TDD); or larry.perlin@cityofpaloalto.org.
Public hearings will be held in the. Council Chambers or other accessible locations. Sign
language interpreters will be provided upon request with 72 hours advance notice.
Part III. City Planning Staff
1. The Department of Planning and Community Environment has the primary responsibility
for the administration and coordination of the CDBa program.
2. The planning process for the CDBa program is conducted on a two-year cycle, and is
coordinated with the City's Human Service Resource Allocation Process. At the
beginning of each fiscal year, staff will provide the general public, public agencies,
interested citizens, and the Human Relations Commission (HRC) with the following
information:
a) The amount of grant funds and program income expected to be made available
during the next fiscal/program year for proposed community development and
housing activities;
b) The range of activities that may be undertaken, including the estimated amount
proposed to be used for activities that will benefit persons of low and moderate
. mcome;
c) The proposed CDBa activities which will likely result in relocation, and the
City's intent to minimize the necessity for relocation of persons as a result of
assisted activities;
d)· , The types and levels of assistance the City will make available (or require others
to make available) to persons who are eligible for relocation assistance as a result
of CDBa assisted activities.
3. Planning staff will publish a summary of the proposed Consolidated Plan! Annual Action
Plan in the Palo Alto Weekly or other newspaper of local circulation. The summary will
describe the contents and purpose of the Consolidated Plan and include a list of the
locations where copies of the draft Consolidated Plan may be examined, and where it is
available on the City's website.
3
4. A reasonable number of free copies of the Draft Consolidated Plan! Annual Action Plan
will be provided to citizens and groups that request it. Draft copies will be available at
the Downtown Library, City Hall Department of Planning and Community Environment
and the City's Development Center located at 285 Hamilton Ave, Palo Alto. The draft
documents will also be available on the City's website. Citizens may submit comments
on the Consolidated Plan! Annual Action Plan during a public review period of not less
than 30 days.
5. Planning staff will maintain a mailing list of interested parties, who will be mailed or e-
mailed information regarding public hearings or meetings, the availability of draft plans,
substantial amendments, public comment periods, and other announcements.. Members
of the City's Human Relations Commission will also receive this information.
6. To encourage a wider range of citizen participation during the development of the
Consolidated Plan, the list of interested parties will be extended to include local and
regional institutions and other organizations such as businesses, developers, community
and faith-based organizations, residents of public and assisted housing developments,
persons receiving tenant-based rental assistance, the Housing Authority of Santa Clara
County, and neighboring jurisdictions.
7. Staff will provide adequate, timely notification of hearings and meetings so that citizens
and other interested parties may attend and comment. Where feasible, a minimum of 14
days notice will be provided for all public meetings regarding the CDBG Program.
When possible, an ad will be placed in the Palo Alto Weekly, or other local newspaper.
All meetings and hearings will be noticed on the electronic City Hall Meeting Calendar.
8. Upon completion of the draft Consolidated Annual Performance Reports (CAPER),
Planning staff will publish a notice in the Palo Alto Weekly, or another newspaper of
general circulation, announcing the availability of the draft performance report, the
locations where it may be reviewed, and a 15 day period for submitting public comments
prior to its submission to HUD. Any comments or views of citizens received in writing
or at public meetings in preparing the performance report shall be considered,
summarized and attached to the performance report.
9. The Consolidated Plan!Action Plans as adopted, any substantial amendments, the
performance reports and the Citizen Participation Plan will be available to the public on
the City's website, and upon request. Reasonable accommodations will be provided for
requests for materials or information by persons with disabilities.
10. Planning staff will arrange for reasonable and timely access to public records related to
the Citizens' Participation Plan, the Consolidated Plan, the Action Plans, Consolidated
Annual Performance and Evaluation Report (CAPER), any amendments thereto, and the
City's use of CDBG funds during the preceding five years. Access to public records will
be provided to citizens, public agencies, and other interested parties upon written or
verbal request. An appointment may be required to view records, and a fee may be
charged for copies to recover costs. Documents are available for public review in the
4
Planning Division, 5th floor, Civic Center, 250 Hamilton Avenue, Palo Alto, CA 94301,
during advertised working hours.
11. Upon request, staff will provide technical assistance to community groups and groups
representing individuals of low-and moderate-income in developing funding proposals
for assistance under the Consolidated Plan. Staff will endeavor to provide assistance in
the form of general information, relevant demographic or socio-economic data,
interpretation of HUD rules and regulations, explanation of City policies and procedures
affecting the CDBG program, or advice regarding funding proposals or alternative
funding sources for projects which are ineligible under the CDBG program.
12. Planning staffwill arrange for information to be presented in a bilingual fashion at public
hearings whenever a significant number of non-English speaking residents can be
expected to participate, or when a reasonable request is made for such a service.
13. Where practicable, planning staff will provide a timely, substantive written response to
all written complaints and grievances regarding the CDBG program within 15 working
days of receipt of such complaint or grievance.
14. Planning staff will schedule and notice all required public hearings. Notice of the date,
time, place and agenda of the public hearings will be advertised at least 14 days prior to,
the hearing in the Palo Alto Weekly, or another newspaper oflocal circulation.
Part IV. The Human Relations Commission
1. The City's 7-member Human Relations Commission (HRC) is charged with the
discretion to act with respect to any human relations matter when the Commission finds
that any person or group does not benefit fully from public or private opportunities or
resources in the community, or is unfairly or differently treated due to factors of concern
to the Commission.
2. In order to coordinate the City's Human Service Resource Allocation Process (HSRAP)
with the CDBG allocation process, the HRC will hold at least one public hearing
annually to review and comment on the proposed CDBG funding allocations.
Part V. Substantial Amendments
1. Prior to the submission of any substantial change in the Consolidated Plan or proposed
'use of funds, interested citizens will be notified and provided a minimum of 30 days to
comment on the proposed changes before the amendment is implemented. The City
Council will hold noticed public hearings on substantial changes where interested persons
may comment. All views and comments submitted in writing, or orally at public hearings
will be considered in preparing the substantial amendment. A summary of these
comments, and a summary of any comments or views not accepted and the reasons
therefore, will be attached to the substantial amendment.
5
2. Substantial amendments are defined as:
a) changes in the use of CDBG funds from one eligible activity to another
b) The implementation of an activity not previously identified in sufficient detail to
provide affected citizens an opportunity to submit comments, or
c) A change in an activity'S program budget which exceeds ten percent of the City's
latest annual entitlement grant.
Part VI. Anti-Displacement Policy
1. The City of Palo Alto will comply with all federal regulations governing residential anti-
displacement and relocation assistance as they pertain to the CDBG program.
2. It is the City's policy to avoid, to the greatest extend feasible, the involuntary
. displacement of any persons, property or businesses as a result of a federally funded
CDBG activity such as acquisition, demolition or rehabilitation.
3. The City will take all reasonable steps to minimize involuntary displacement by
approving and designing activities in such a way that displacement is avoided whenever
possible. In extraordinary circumstances where no feasible alternatives to displacement
are available if the City's community development objectives are to be met, the City will
(or will require others to ) properly notice and inform residents or tenants of their rights
and potential eligibility for relocation benefits.
4. When there is no alternative to displacement, relocation benefits will be provided to all
eligible persons in accordance with the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, as amended (URA) and the requirements of 24 CFR
570.606(b) and 24 CFR 570.606(c) governing the Residential Anti-displacement and
Relocation Assistance Plan under Section 104(d) of the HUD Act.
6
TABLE OF CONTENTS
EXECUTIVE SUMMARY ...................................................................................................•....... 1
PART I. INTRODUCTION .................................................................................................•....... 5
A. Description of Report .............. ' ................................................................................................... 6
B. Description of Public Review Process ....................................................................................... 6
C. Overview ofIdentified Needs and Priorities .............................................................................. 6
D. Summary of Major Accomplishments 2005-2010 ..................................................................... 7
E. Summary ofCDBG Accomplishments 2009110 ........................................................................ 8
PART II. AFFORDABLE HOUSING .......................... ; ............................................................ 9
A. Resources ............................................................................................................................... 10
1. Resources Available within the City of Palo Alto ....................................................... .1 0
a. Community Development Block Grant (CDBG) Funds .................................... 1 0
b. Local Housing Funds ........................................................................................ 11
c. HOME Investment Partnership Act Funds ........................................................ 11 '
d. Redevelopment Funds ........................................................................................ 11
e. Public Housing ................................................................................................... 11
f. The American Recovery and Reinvestment Act of 2009 .................................. .11
2. Other Resources Obtained by Nonprofits and Others .................................................. 11
a. Multi-family Housing Program (MHP) Funds .................................................. .11
b. HUD Section 8 -Moderate Rehabilitation Program ........................................ .11
c HUD Section 8 -Shelter Plus Care ................................................................... 11
d. HUD Project -Based Section 8 ......................................................................... 11
e. HUD Housing Choice Section 8 Rental Assistance .......................................... .12
The Housing Authority of the County of Santa Clara Section 8
Housing Choice Certificates Issued (Table) ............................................. 12
B. Accomplishments .................................................................................................................... 13
1. Programmatic Accomplishments .................................................................................. 13
a. New Housing Development ............................................................ 13
Palo Alto Housing·Corporation -Tree House Project
Bridge Housing Corporation -Alta Torre
b. Rehabilitation of Existing Rental Housing ......................................... 14
c. Below Market Rate (BMR) Ownership & Rental Programs ...................... 15
2. Persons and Households Assisted with Housing .................................................. '" ..... 15
Summary of Housing Accomplishments (HUD Table lA) ................................ 16
C. Assessment of Performance ................................................................................................... 17
1. Evaluation of Progress in Meeting 200911 0 Goals ....................................................... 17
2. Barriers to Fulfilling Housing Strategies ...................................................................... 18
a. Federal or State Barriers .................................................................................... 19
b. Barriers Related to Local Housing Market Conditions .................................... .20
3. Actions to Address Obstacles to Maintain Affordable Housing ................................... 20
a. Housing Trust Fund ........................................................................................... 20
4. Adjustments or Improvements to Affordable Housing Strategies ............................... .21
a. Public Policies ................................................................................................... 21
b. Development Impact Fees for Housing .......................................................... ).22
PART III: COMMUNITY DEVELOPMENT .................................................................••...... 23
-,J"
A. Resources Available ............................................................................................................... 24
1. City of Palo Alto Non-Housing Community Development Resources ........................ .24
a. Federal Funds .................................................................................................... 24
b. Local Funds ......................................................................................... .' ............. 24
c. Leveraging .......................................... '" ............................................................. 24
B. Accomplishments .................................................................................................................... 24
1. Summary of Accomplishments with CDBG Funds ..................................................... 25
2. Summary of Community Development Accomplishments (HUD Table 3-1) '" ........ 25
3. Summary of Accomplishments, Palo Alto General Fund Money ............................... 27
4. Actions Taken to Affirmatively Further Fair Housing ................................................. 28
5. Actions Taken to Address Needs of Homeless Persons ............................................... 30
a. Shelter Plus Care (SPC) ...................................................................................... 30
b. Opportunity Center -Community Facility ........................................................ 30
c. Shelter ................................................................................................................ 31
d. Food ................................................................ : .................................................. 31
e. Employment Opportunities ............................................................................... .31
f. Homeless Services .............................................................................................. 31
6. Antipoverty Strategy ..................................................................................................... 32
7. Other Actions ................................................................................................................ 32
a. Lead Based Paint Hazard Reduction ..................................................... , ............ 32
b. Intergovernmental Cooperation ......................................................................... 33
c. Actions to Ensure CDBG Compliance ............................................................... 33
8. Changes to Annual Action Plan .................................................................................. ,.33
C. Assessment of Performance ................................................................................................... 33
1. Evaluation of Progress in Meeting Annual Community Development Goals ............ .3 3
2. Barriers to Fulfilling Strategies ..................................................................................... 37
PART IV: APPENDIX
A. Copy of Public Review Notice for CAPER
B. Summary of Funding Priorities
C. Grantee Performance Financial Report for Fiscal Year 200911 0
D. Public Comments
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
THE City of Palo Alto is the recipient of federal Community Development Block Grant
(CDBG) funding from the U.S. Department of Housing and Urban Development (HUD). The
CDBG program provides formula based grant funding annually to entitlement cities to develop
viable urban communities by providing decent housing, a suitable living environment and by
expanding economic opportunities, principally for persons of low-and moderate income.
HUD has created a grants management and reporting system to implement the concept of
consolidated planning. The consolidated planning system is intended to relate and link identified
needs within a community to the-federal and local resources available to meet those needs, and to·
strengthen partnerships among allleveis of government and the private sector.
As a recipient of CDBG funds, the City is required to prepare a five year strategic plan called a
Consolidated Plan. The Consolidated Plan addresses the housing and non-housing community
development needs of lower income persons and establishes annual goals and objectives to meet
those needs. On an annual basis, the City prepares an Action Plan, that lists the activities that the
City intends to undertake with CDBG funds to address the needs and implement the strategies
identified in the five year Consolidated Plan. At the close of the fiscal year, a Consolidated
Annual Performance and Evaluation Report (CAPER) is prepared that documents the City's
progress in carrying out the activities identified in the Action Plan and in meeting the goals arid
objectives within the larger framework of the Consolidated Plan.
2009110 Accomplishments
On May 4,2009 the City Council approved the 2009/10 Action Plan, allocating $832,138 in
CDBG funds to activities that addressed the needs identified in the Consolidated Plan. The
amount of the City's 2009110 entitlement grant from HUD was $685,879 with program income of
$145,300, and reallocated funds of $959
The City's major accomplishments for the 2009/10 Fiscal Year are listed as follows:
• Construction was completed on Bridge Housing Corporation's $18.6 million Alta Torre
Senior Housing Project located at 3895 Fabian Way in Palo Alto. The 43,604 square foot
building provides 56 new rental units affordable to low-income seniors with annual
incomes between $10,632 and $37,280. There are 55 one-bedroom units ranging in size
from 538 to 580 square feet, and a two-bedroom manager's unit of 777 square feet.
Rents will initially range from $443 to $742 per month depending on the resident's
income and .household size.
• The Palo Alto Housing Corporation began demolition and site clearance for the Tree
House Project located at488 West Charleston Road in Palo Alto. The 32,000 square foot
site will provide 35 units of new affordable rental housing for extremely low and very
low-income households earning between 20% and 50% ofthe area median income. The
project will consist of33 studio apartments and two one-bedroom units.
• Public review was initiated on a new rental housing project sponsored by Eden Housing.
The project, Alma Street Affordable Housing, will consist of 50 affordable rental units
2
for low-income families. The site is located on City-owned property at 801 Alma Street
in Palo Alto.
• Completed the bathtub accessibility project at Lytton Gardens and the rehabilitation of
the radiant heating system at Stevenson House. Both facilities provide rental housing for
low-income seniors, thereby preserving the condition of existing 'units of affordable rental
housing in the City.
• The City continued the Below Market Rate (BMR) Program. As of June 30, 2010 there
were 237 units in the ownership inventory. An additional 20 units are either in building
permit approval process or under construction. There are also 189 BMR rental units in
multi-family rental developments in Palo Alto serving households with incomes between
40% and 70% of the County Median Income.
• Continued funding and support for emergency shelter, food, outreach and assistance
programs that served homeless families and individuals and those at risk of becoming
homeless
• Low-income seniors were provided with counseling, food, legal services, home repairs
and other assistance in order to continue living independently and on limited incomes
• Provided shelter and supportive services for victims of domestic violence
• Subsidized child care was provided to 62 children from income-eligible households
• . Counseling and outreach services were provided to more than 460 Palo Alto teens
• Provided 125 low-income and uninsured residents with health care services
• Provided community based services to physically andlor developmentally disabled
individuals
• Through Project Sentinel, alocal fair housing organization, the City sponsored fair
housing investigation services, education and outreach activities and mediation services
for local residents.
• The City Utilities Department continued the free Residential Energy Assistance Program
(REAP), providing 80 low-income residents the opportunity to permanently reduce their
energy and water costs by improving their home's energy efficiency. They also
continued the Rate Assistance Program that offers a reduction in utility rates for income-
eligible residents based on medical or financial needs.
·2005 -2010 Accomplishments
June 30, 2010 marks the end of the 2009110 fiscal year as well as the final year ofthe City's
adopted Consolidated Plan for the period July 1, 2005 through June 30, 2010. This report has
3
been prepared to meet HUD's requirement for annual performance evaluation, and also to report
on the accumulated accomplishments during the five year Consolidated Planning period.
The primary goal for the 2005-2010 Consolidated Planning period was to increase the City's
affordable housing stock by 125 units. This goal was not only reached, but was exceeded. In
total, 154 units of affordable rental housing were added to the City's inventory during this
period. This is truly a major accomplishment given the difficulties inherent in creating
affordable housing in high-income areas.
A major milestone during this time was the completion of the Community Working Group's
Opportunity Center. The OC is a new community facility for the provision of supportive
services for homeless and very low-income persons.
4
PART I
INTRODUCTION
5
City of Palo Alto
Citizen Participation Plan
Part I. The City Council
1. The City Council sets policy, priorities, and approves the overall Community
Development Block Grant allocations.
2. The City Council will hold a minimum of two public hearings per year for ,the purpose of
obtaining citizens' views and fonnulating or responding to proposals and questions. The
public hearings will be held at different stages of the program year so that together they
address community development 'and housing needs, development of proposed activities
and program performance.
3. At least one public hearing will be held before a dr~ Consolidated Plan is published for
comment.
4. All public hearings will be held at times and locations convenient to potential and actual
program beneficiaries, with reasonable accommodations for persons with disabilities.
Generally, public hearings will be held at City Hall in the evenings because the facility is
centrally located, accessible by public transportation, and has disabled access.
5. Translation services will be provided when a significant number of non-English speaking
residents can be reasonably expected to participate, or when a reasonable request for such
an accommodation is made.
6. Actions of the City Council will direct the implementation ofCDBG funded projects.
Part II. The General Public
1. The general public is encouraged to participate in the various stages of the CDBG
program by attending and commenting at the noticed public hearings. They are, also
encouraged to express their views ~d comments directly to the CDBG Coordinator in
the Planning Division, or receive program infonnation from the Planning Staff, on the 5th
floor of City Hall, 250 Hamilton Avenue, Palo Alto, CA 94301.
2. At any time, citizens may submit views concerning Palo Alto's perfonnance in the
CDBGprogram to the HUD Area Office at 600 Harrison Street, San Francisco, CA
94107-1300.
3. The City's website (cityofpaloalto.org) contains the, adopted Consolidated, Plan, and
either the approved or draft versions of the Annual Action Plans and Perfonnance
Reports, the CDBG annual program timeline, and other pertinent program records,
documents and infonnation. Interested citizens are encouraged to review the material on
2
PART I.
INTRODUCTION
A. Description of Report
As indicated in the Executi,:e Summary, the Consolidated Annual Performance and Evaluation
Report (CAPER) is a requirement of the U.S. Department of Housing and Urban Development's
(HUD) Community Development Block Grant (CDBG) program. The CAPER's purpose is to
provide information on the entitlement community's progress towards meeting its goals and
objectives to develop a viable urban community by providing decent housing, a suitable living
environment, and expanding economic opportunities, principally for persons of low-and
moderate-income.
The CAPER specifically identifies the resources available and the City's accomplishments in
affordable housing and community development activities during the 200911 0 fiscal year. The
CAPER incorporates public comments received during the public review period for the report
from September 3,2010 through September 17, 2010, and reports generated by HUD's
Integrated Disbursement and Information System (lDIS). IDIS reports also present the City's
actions and accomplishments in the CDBG program in a national database.
B. Description of Public Review Process
A notice regarding the availability of the draft CAPER was mailed to interested organizations
and persons. A notice informing the public of the availability of the CAPER was published in
the Palo Alto Weekly on Friday, September 3, 2010. The notice was also displayed on the City's
website during the public review period. A copy of the notice is appended to this report
(Appendix A).
The draft CAPER was available for public review and comment for a IS-day period, beginning
Friday, September 3,2010 and concluding on Friday, September 17,2010. Copies of the draft
report were available at the City's Planning Department reception desk, the Development Center,
and on the CDBG website.
No comments were received during the public review period.
C. Overview of Identified Needs and Funding Priorities
Palo Alto's housing and community development needs were identified in the Consolidated Plan
for the period July 1, 2005 to June 30, 2010. The provision of affordable rental housing units
was identified as the most critical need in Palo Alto. While all types of housing are needed in the
City, the Consolidated Plan objectives focus on the creation and preservation of rental housing.
Permanent housing for families with children, homeless individuals and those "at risk" of
becoming homeless, persons with special needs, and elderly persons are the highest priorities
identified in the Consolidated Plan. While the creation of additional new units of affordable
housing is the most desirable option, the preservation of existing subsidized units that are at-risk
6
of converting to market rate units is also a high priority need. Another high priority need is to
conserve the condition of existing affordable rental housing units.
Non-housing community development needs in Palo Alto include public services and public
facilities and improvements. Public service needs include supportive services and employment
opportunities for lower income, at-risk, homeless or disabled populations. There is also a need to
expand, modernize, rehabilitate and make accessibility improvements to existing public facilities
serving the same populations.
D. Summary of Major Accomplishments 2005 -2010
The primary affordable housing goal in the 2005-2010 Consolidated Plan is to assist in the
addition of an average of 25 units per year .over the five-year period, or a total of 125 units.
Housing activities are multi-year in nature and there are a number of new projects in the
development stage. The City's greatest need is affordable housing, and the majority of CDBG and
local housing funds have been targeted and expended to preserve or increase the affordable rental
housing stock. All of the CDBG funds have been used to carry out activities that benefit low-
income persons. The City's goal of increasing the supply ~f affordable rental housing units by
125 was not only met but was exceeded. Over the five-year period, 154 units of new affordable
rental housing were completed and added to the City's stock of affordable housing:
Year Name Type Targeted Resident # of Units
2006 Alma Gardens Acquisition Homeless/at-risklspecial needs 10
2006 Opportunity Center New Construction Homeless/at-risk/special needs 89
2010 Alta Torre New Construction Elderly/special needs 55
Total New Units of Affordable Housing Achieved: 154
In addition to the new housing created between 2005 and 2010, a number of existing affordable
rental housing developments were assisted in rehabilitation and maintenance projects to meet the
goal of preserving the existing affordable housing stock.
In 2006 a local non-profit coalition, The Community Working Group, completed a new public
facility located at 33 Encina Way in Palo Alto. The Opportunity Center (OC) provides a decent,
safe community gathering place for those who are extremely low-income andlor homeless. It is
operated and managed by InnVision the Way Horne and is open weekdays during nonnal
business hours. The OC provides supportive services to approximately 100 homeless or at-risk
persons each weekday including information and referral, maille-mail access, transit passes,
snacks, showers and hygiene supplies, case management, counseling, used clothing, shelter and
housing referrals, mental and physical health clinics, classes, job referrals, and other services.
The OC provides a supportive, safe environment for those without resources, and assists those
who are ready to access the services and infonnation available to help them move forward.
During the five-year period numerous public service agencies were assisted in order to provide
supportive services to vulnerable, lower-income populations. These activities included
emergency and transitional shelters for families and individuals, food programs, employment
~. counseling, case management, fair housing education and investigation, infonnation and referral,
7
ombudsmen for the frail elderly, minor home repair and accessibility improvements, and
domestic violence prevention services.
E. Summary of CnBG Accomplishments 2009/10
Priority Need Category Expended Number of Beneficiaries Served
Proposed Accomplished
Public Services
Catholic Charities -5,000 220 640
Long Term Care Ombudsman Program
InnVision -Clara-Mateo Alliance 36,361 80 75
Shelter and supportive services for unhoused
and low-income persons
InnVision -Opportunity Center 31,160 800 1,292
Supportive services for unhoused and low-
income persons
Palo Alto Housing Corporation -31,160 131 146
Supportive services for residents of single
room occupancy (SRO) housing
Support Network for Battered Women-8,570 50 47
. Domestic violence services
Sub-total $112,251
AdministrationlFair Housing
Project Sentinel 30,725 25 25
Fair housing services
City of Palo Alto 118,943 N/A N/A
CDBG Program Administration
Sub-total $149,668
Housing
Lytton Gardens 110,000 220 220
Bathtub accessibility conversions
Stevenson House 83,200 59 59
Radiant heating repair
Avenidas 6Q,000 120 28
Senior Home Repair & Accessibility
Palo Alto Housing Corporation 300,000 N/A N/A
Tree House Housing Project
Housing Development Fund 17,019 N/A N/A
Sub-total $570,219
~~Ul:=~ ~-::~~:Z~~=~~~~~~~r::~=~::~~~==l~m~~:::L~~~:::~=:~2~~:~~~=~:~:~~~::::~~
8
PART II.
AFFORDABLE HOUSING
9
PART II
AFFORDABLE HOUSING
A. Resources
1. Resources Available within the City of Palo Alto
a. Community Development Block Grant (CDBG) Funds
Infiscalyear 2009/10, the City of Palo Alto allocated a total of$832,138 in CDBG funding to
local activities. This amount represents a 2009/10 CDBG entitlement grant allocation of
$685,879; $145,300 in CDBG program income; and $959 in reallocated funding from other
projects. Of the total CDBG allocation, $567,684, or 68% was allocated to housing-related
activities. The U.S. Department of Housing and Urban Development (HUD) increased the City'S
entitlement grant amount by $2,535 (from $683,344 to $685,879) after the 200911 0 Action Plan
had been submitted.
b. Local Housing Funds
The City of Palo Alto maintains a local housing trust fund thathas two sub-funds: the
"Commercial Housing Fund" and the "Residential Housing Fund". These are the only local
sources of funding and subsidies for affordable housing within the City. They are used to provide
matching funds, to pay for expenses which exceed HUD cost limits, to fund the cost of features
and amenities ineligible under federal housing programs, for pre-development expenses, feasibility
studies, site acquisition and similar purposes .
./ Commercial Housing Fund: Palo Alto requires commercial and industrial development
projects to pay a housing mitigation fee under Chapter 16.47 of the Municipal Code.
The fees are deposited in the Commercial Housing Fund, and the accumulated fees and .
interest earned on the fund are made available only for the creation of new low and
moderate-income housing units under the "Affordable Housing Fund Guidelines"
adopted by the City Council. The Commercial Fund has an available balance of
approximately $1,632,766 as of June 30, 2010 .
./ Residential Housing Fund: Pursuant to Program H-36 (the Below Market Rate
Program) of the City'S adopted Housing Element, Palo Alto collects housing in-lieu
fees from residential developments when it is infeasible to provide below market rate
units on-site. These fees, along with interest earnings of the Fund and other
miscellaneous revenues related to housing, are placed in a special fund -the Residential
Housing Fund. This fund, per adopted City policy, is used mainly to provide funding
for acquisition or rehabilitation oflow and moderate-income housing, but may also be
used for assistance to new housing construction projects. The Residential Fund has an
available balance of approximately $2,739,671 as of June 30, 2010.
10
c. Home Investment Partnership Act (HOME) Funds
The City of Palo Alto is not an entitlement jurisdiction for the federal HOME program. The City
is only eligible to apply for HOME funds through the State of California HOME program.
No applications were submitted in fiscal year 200911 o.
d. Redevelopment Funds
The City Council approved an ordinance on July 9, 2001 to establish a redevelopment agency for
the City of Palo Alto. To date, the City has not established a Redevelopment Project Area and no
redevelopment funds have been created.
e. Public Housing
There are no units of public housing in Palo Alto.
f. The American Recovery and Reinvestment Act of 2009
The American Recovery and Reinvestment Act (ARRA) of2009 was signed into law by President
Obama on February 17, 2009. The Act included $1 billion in one-time stimulus CDBG funding.
The City of Palo Alto received an additional $183,477 in CDBG stimulus money in fiscal year
200911 o. These funds were allocated to both capital housing rehabilitation projects and public
service projects. They are indicated throughout this report as (ARRA) funds.
2. Other Resources Obtained by Nonprofits and Others
a. Multifamily Housing Program (MHP) Funds
The Multifamily Housing Program (MHP) was created in 2002 as a result of the passage of
Proposition 46. Additional funding has been provided by Proposition 1 C which passed in 2005.
MHP provides low interest loans to developers of affordable housing as well as funding for new
and existing local housing trust funds.
b. HUD Section 8 -Moderate Rehabilitation Program -37 Units
Palo Alto Housing Corporation (P AH C) owns and manages a number of apartment buildings
where a portion of the units have rents subsidized under the old Section 8 Moderate Rehabilitation
program. The Section 8 -Moderate Rehabilitation Program currently provides rental assistance
for 37 P AHC units. The Moderate Rehabilitation units are distributed as follows: Curtner
Apartments, 9 units; Emerson South Apartments, 5 units; and Oak Manor Townhouses, 23 units.
c. HUD Section 8 -Shelter Plus Care - 5 Units
During fiscal year 2008/09, the Housing Authority of the County of Santa Clara provided 5 units
of Shelter Plus Care rental assistance vouchers for previously homeless persons participating in
the County's Shelter Plus Care (SPC) program. Units are available at the single room occupancy,
Barker Hotel, 10 units are available at Alma Place Apartments, and one unit is available at the
Waldo Apartments. During the period July 1, 2007 to June 30, 2008, seven previously homeless
individuals were provided with housing through the program. All seven of the program
beneficiaries were very low or extremely low income.
d. HUD Project-Based Section 8 -52 Units
The Housing Authority of the County of Santa Clara administers the Section 8 Rental Assistance
Program for the City of Palo Alto. There are currently 52 units of project based Section 8 rental
11
assistance available in Palo Alto. The Palo Alto Housing Corporation has eight units (Feme, 1;
Ventura, 2; Waldo, 5), Stevenson House has 25 units, and the Opportunity Center has 22 Section 8
Project-based Section 8 units. All project based vouchers are renewed annually by HUD.
e. HUD Housing Choice Section 8 Rental Assistance -201 Units
There were 201 Palo Alto households who received "Housing Choice" tenant-based Section 8
rental assistance vouchers in fiscal year 2009/10. These vouchers are provided to qualified
persons who may use the vouchers at any rental site in the County that has been approved by the
Housing Authority. .
There are currently 787 households with Palo Alto addresses on the Housing Authority's waiting
list for Section 8 Housing Choice vouchers. Of the 787 households, 187 are disabled, 176 are
elderly, 59 are both disabled and elderly, and 365 are non-disabled/non-'elderly.
In total, 295 households were assisted with Section 8 rental assistance vouchers in Palo Alto in
fiscal year 2009110.201 were tenant-based Housing Choice vouchers, 37 were moderate
rehabilitation program vouchers, 5 vouchers were provided through the Shelter Plus Care
program, and 52 vouchers were project-based Section 8.
The following statistics'describe the participant characteristics for all of the Section 8 programs in
Palo Alto:
The Housing Authority of the County of Santa,Clara
Section 8 Housing Certificates Issued in Palo Alto FY 2009/10
IS rI U Ion ,y aCJa DO t °b f b R ° I G roup
White Black American Asian Hawaiian!
Indian/Alaskan Native Pacific Islander
195 38 0 62 0
Distribution by Ethnicity
Hispanic N on-Hispanic Total
34 261 295
DO t °b fbI IS rI U Ion ,y nco me
Low Income (51 ~ 80% Very Low Extremely Low (Less
of Median) (31-50% of Median) than 30% of Median)
8 31 256
12
Total
295
Total
295
IS rI U Ion ,y a US n° t °b f b St t
Elderly Disabled Elderly Non-Elderlyl Total
(Non-Elderly) and Disabled Non-Disabled
149 40 35 71 295 .
Head of Household
Male Female TOTAL
103 192 295
B. Accomplishments
1. Programmatic Accomplishments
The City of Palo Alto, by itself, and in conjunction with nonprofit housing developers, undertook
the following activities to meet its priorities for affordable housing development and assistance as
stated in the FY 200911 0 Annual Action Plan of the Consolidated Plano
a. New Housing Development
• Palo Alto Housing Corporation -Tree House Project -$300,000
Location: 488 West Charleston Road, Palo Alto
In fiscal year 2008/09, the City allocated $1,538,577 in CDBG funding to Palo Alto Housing
Corporation for a new 35-unit affordable housing project known as the Tree House. The City's
CDBG funding was used for land acquisition expenses, which totaled $2,865,000. In addition to
the $1,538,577 from 2008/09 CDBG funds, $300,000 was pre-awarded from the 2009110 CDBG
funding allocation. In 2009110 the $300,000 loan from the City's Housing Reserve fund was
repaid.
The development will provide 21,903 square feet of new rental housing on a 30,000 square foot
site. The rental apartments will be affordable to extremely-low and very-low income households
earning between 20% and 50% ofthe area median income. Rents will not exceed 30% of the
resident's income. The project will consist of 33 studio apartments and two one-bedroom
apartments. The studio units will be approximately 500 square feet and the one-bedroom units
will be approximately 600 square feet in size. The project will be four-stories high and include
parking and community space on the ground floor. The residential units will be located on the
second through fourth floors. The overall development cost is estimated to be $13.2 million with
multiple funding sources.
13
Sources and Uses of Funds:
Sources of Funds
City of Palo Alto
Residential Housing Fund
CDBG 2008/09 Allocation
CDBG 2009/10 (Pre-Award)
Palo Alto Housing Corp. (Deposit)
Total
Uses of Funds
Acquisition Price
Closing Costs
Total
• Bridge Housing Corporation -Alta Torre
Location: 3895 Fabian Way, Palo Alto
$1,000,000
$1,538,577
$ 300,000
$ 26,473
$2,865,000
$2,850,000
$ 15,000
$2,865,000
Housing construction was completed on Bridge Housing Corporation'S $22.9 million Alta Torre
Senior Housing Project. The 43,604 square foot building provides 56 new affordable rental units
for low-income seniors with annual incomes between $10,632 and $37,280. There are 55 one-
bedroom units ranging in size from 538 square feet, and a two-bedroom manager's unit of777
square feet. Rents will initially range from $443 to $742 per month depending on the resident's
income and household size. The City of Palo Alto provided $600,000 for this 55 unit senior
housing project from its Residential Housing Fund. The project will utilize MHP funds and tax
credits in addition to other funding sources. The final cost certification is being preparec;land will
be reported in next year's report.
b. Rehabilitation of Existing Rental Housing
• Stevenson House, 455 E. Charleston Road, Palo Alto
Palo Alto Senior Housing, Inc. owns and operates Stevenson House, a 120-unit residential
facility for low-income seniors. The facility was constructed in the 1950's and is in need of
continual maintenance and upgrades to keep it viable and safe. CDBG funding in the amount of
$83,200 was used to complete the final phase of a radiant heating system repair and upgrade.
The project not only replaced and upgraded mechanical components of the overall heating
system but also thermostats were installed in 59 units allowing individual residents the ability to
regulate their own apartment's temperature levels. The financial savings in lowered utility bills
are already being recognized.
• Lytton Gardens, 656 Lytton Avenue, Palo Alto
Community Housing, Inc. owns and operates Lytton Gardens, an affordable housingJacility for
seniors. CDBG funds in the amount of$110,000 were used to create a more suitable living
environment for low-income senior residents. Bathtubs in 125 units were converted to floor-
level step in showers by cutting down the fiberglass tubs to increase the accessibility and ease of
entry for frail seniors.
14
c. Below Market Rate (BMR) Ownership & Rental Programs
The oldest BMR units were built in 1975 and the typical development includes from one to four
BMR units. Fifty percent of the inventory was built in the 1980' sand thirty-four percent were
built between 1975 and 1979. The City and Palo Alto Housing Corporation initially became
aware of the problems facing BMR owners in condominium projects relative to large special
assessments for capital repairs in February 2001. On September 9,2002, the City Council
established a BMR program emergency fund as an ongoing permanent program to prevent the
loss of BMR units and provide emergency loans for BMR unit owners for substantial mandatory
assessments. The program is also aimed to preserve BMR unit housing stock by preventing loss
through foreclosure or through the resale process. The Council approved loan program criteria
and loan terms, and a loan program was developed to address these issues and is available on an
as-needed basis. The current balance of the BMR Emergency Fund is approximately $362,442.
There are two types of BMR units, home ownership and rental units. The status of each of the
types of units is described below.
• BMR Home Ownership Units. The Below Market Rate Program is now a City
Ordinance which requires developers of market rate housing to provide a certaih number
of units within each residential project at affordable prices to moderate income bUyers
(usually 15% ofthe total units). The BMR units are sold to households on a waiting list
with 59-year deed restrictions on use, occupancy and the resale price. As of June 30,
2010, there were 237 units in the ownership program inventory. An additional 20 units
are either in the building permit approval process or under construction.
• BMR Rental Units. This is the rental-housing component of the City's BMR
inclusionary housing program. There are 189 BMR rental units in multi-family rental
developments in Palo Alto. These units are rented at below market rents to very low and
low-income eligible households. The specific income eligibility varies from project to
project; however, the City's current guidelines target the rental program to households
between 40% and 70% of the County Median Income.
2. Persons and Households Assisted with Housing
The following table shows 184 households assisted with rental housing during the period covered
by this report. This represents the units upgraded at Stevenson House and Lytton Gardens.
Housing projects are multi-year in nature, and although the construction portion of the 56-unit
Alta Torre project was completed by year-end, the rent-up had only just begun. The Project
beneficiaries will be included in next year's report. In addition to the units at Alta Torre, two
other affordable housing projects in the early stages of development are expected to increase the
number of afford able housing units by 85 units within the next few years: Palo Alto Housing
Corporation's tree House project (35 units), and Eden Housing's Alma Street Affordable Housing
project (50 units). Not included are units assisted with Shelter Plus Care, counseling services, or
homeless persons or households who receive overnight shelter. These activities are discussed in
Part III of this report.
15
Summary of Housing Accomplishments
(HUn Table lA)
Name of Grantee: City of Palo Alto State: CA Program Year: 2009110
Priority Need Cate~ory Actual Units
Renters 184
0-30% of Median Family Income (MFI) * 68
31 -50% ofMFI 115
51 -80% ofMFI 1
Total 184
Owners
0-30% ofMFI
31 -50% ofMFI
51 -80%ofMFI
Total
Homeless
Individuals (units)
Families
Total
Noh-Homeless Special Needs
Total 184
Total Housing 0
Total 215 Housing 0
TOTAL HOUSING
White 98
Black! African American 2
Asian 83
American Indian! Alaska
Native
Native Hawaiian/Other 1
Pacific Islander
Black! African American
and White
Asian and White
16
TOTAL HOUSING
American Indian! Alaska
Native and -White
American Indian! Alaska
Native and Black/African
American
Balance/Other
Total Race 184
TOTAL HOUSING
Hispanic 2
Total Ethnicity 2
* As annually adjusted by HUD
C. Assessment of Performance
1. Evaluation of Progress in Meeting Annual (2009/10) Goals
The following housing goals were identified in the 2005-2010 Consolidated Plan.
Accomplishments in meeting the goals for the 200911 0 fiscal year are also listed.
Goal # 1: Increase the Supply of Affordable Rental Housing by 125 units
2009 Goal: 25 new housing units
2009 Accomplishments:
Palo Alto Housing Corporation -Tree Hou,se Project
488 W, Charleston Road, Palo Alto, CA 94306
Demolition and site clearance activities were initiated on 35 new housing units.
Bridge Housing Corporation -Alta Torre Project
3895 Fabian Way, Palo Alto, CA 94301
Construction completed, rent-up was started on 56 new housing units
Eden Housing -Alma Street Affordable Housing Project
801,841,853 and 875 Alma Street
Palo Alto, CA 94301
City entitlements received for 50 new housing units on City owned land. Eden Housing is in the
process of putting together the financing plan and funding applications.
Goal #2: Preserve the Supply of 72 units of Affordable Rental Housing and Immediate Risk
of Conversion to Market-Rate Housing
2009 Activity: There were no units at immediate risk of conversion to market-rate housing during
this fiscal year.
17
Goal #3: Conserve the Condition of Existing Affordable Rental Housing
2009 Activities:
Palo Alto Senior Housing Stevenson House -Radiant Heating Repair
455 E. Charleston Road
Palo Alto, CA 94306
Community Housing, Inc.-Lytton Gardens -Bathtub accessibility project.
656 Lytton Avenue
Palo Alto,'CA 94301
Goal #4: Continue the Below Market Rate (BMR) Program
2009 Activity: The City of Palo Alto continued the BMR Homeownership Program
Units are located citywide
2009 Goal: 25 units
2009 Accomplishment: Construction was underway during FY 2009110 for Classics (10 BMR
units) and 899 Charleston (24 BMR units) housing projects.
Goal #5: Continue to Participate in the Mortgage Credit Certificate Program
2009 Activity: The City of Palo Alto continued to participate in the mortgage credit certificate
program.
2009 Goal: 3 households
2009 Accomplishment: 0 households
Goal #6: Provide for Rehabilitation Loans to Low-and Moderate-Income Single Family
Homeowners in Emergency or Crisis Situations Only
2009 Activity: This program was available on an as-needed basis and only if CDBG funding is
available. There were no applications submitted for this program during the fiscal year.
Goal #7: Provide for Minor Home Repairs and Accessibility Upgrades to Low-and
Moderate-Income Homeowners
2009 Activity: A venidas Senior Home Repair Program provided 28 low-income households with
home repair services
2. Barriers to Fulfilling Housing Strategies
There are many barriers that Palo Alto faces in meeting its affordable housing strategies. Housing
development is affected by economic forces of the private market as well as regulations and
policies imposed by public agencies. Even in the climate of a current economic downturn and
slumped housing market, almost all for-sale and most rental properties in Palo Alto are still out of
reach for all but households with above moderate incomes. In addition, there continues to be a
low vacancy rate for rental housing. As of March 2010, the rental vacancy rate in the City was
.88%.
18
Some of the barriers to building more housing are the result of decisions and priorities set by
federal or State governments that must decide how to distribute very limited funding. The policies
and priorities set by these agencies often do not favor high cost areas, and most federal housing
resources are not readily available to the City of Palo Alto. Some of these barriers include: the
lack of congressional appropriations for certain programs; limitations in federal regulations that
make some programs very difficult to use in Palo Alto; the lack of appropriate and available
housing sites; and a lack of interest or capability on the part of for-profit and non-profit developers
in pursuing some federal programs. The following discussion analyzes both governmental and
non-governmental ("market") constraints that can affect affordable housing strategies.
a. Federal or State Barriers:
Changes by the State's Tax Credit Allocation Committee in the method of determining awards for
the competitive federal and State housing tax credits has made it more difficult to obtain tax credit
awards for low-income rental housing. There are also very restrictive caps that limit the total
amount of tax credit awards within certain counties including Santa Clara County. There is far
greater demand in Santa Clara County for the competitive tax credits than the amount allowed
under the allocation cap.
Housing advocates are seeking funding support from Congress for the Low Income Housing Tax
Credit (LIHTC) in light of the economic crisis and its impact on affordable housing development.
The American Recovery and Reinvestment Act (ARRA) included a one-time-only assistance
LIHTC program. California's share of those stimulus funds for LIHTC housing was over $600
million. Applications for the funds are exceeding the LITHC funding ability. Under normal
circumstances investors in LIHTC vary but typically have been Fannie Mae, Freddie Mac and
banks. The impact of the banking crisis this past year was illustrated by the fall of LIHTC
investments in the nation from $9 billion in 2007 to less than $5 billion.
Additionally, there are problems of utilizing federal housing programs, such as Section 202 and
811, in areas with high construction and land costs. HUD places limitations on the amount of
HUD subsidies, which then result in the need for large local funding contributions to make
projects financially feasible.
The amount offederal CDBG funds that the City receives on an entitlement basis from HUD has
not kept pace with inflation over the last 15 years. The added barrier of not being qualified for
HOME funds on an entitlement basis has significantly affected the City's capability to encourage
and fund affordable housing. The City does not qualify as an entitlement jurisdiction for HOME
funds. The HOME Investment Partnership Act is the principal federal housing program directly
available to local governments. The City can only obtain funding on a competitive basis through
the State of California's statewide allocation. The State holds only one competition round each
year. Palo Alto is at a disadvantage in the State's process because ofthe percentage of ranking
points assigned to rural applicants and those from jurisdictions with high poverty rates and a lack
of a qualified Community Housing Development Organization operating within the Palo Alto
area. The City has not been involved with a successful major acquisition or rehabilitation project
utilizing HOME funds since 1992. Other barriers are:
./ The lack of State or federal funding for the preservation of older, HUD-subsidized
19
and Section 8 assisted rental housing by acquisition by nonprofit housing
organizations
./ Reduction in the term of project-based Section 8 contract renewals from the 20-
year contracts of the 1970's to the one-year renewals presently authorized by
Congress
./ Limited funding in HUD's budget for the Section 8 tenant-based assistance
program (Section 8 certificates and vouchers administered by local housing
authorities)
b. Barriers Related to Local Housing Market Conditions:
./ Limited vacant land suitable for housing construction and strong competition from
developers of market-rate housing, commercial projects and other uses such as
private schools for any available site
./ Extremely high prices for sites suitable for new housing and for existing residential
properties suitable for acquisition and rehabilitation
./ Limited local funding sources for affordable housing
./ An extremely low vacancy rate and high housing demand means that even modest
rental units are occupied by households with incomes above the HUD low-income
limit. This means that acquisition and/or rehabilitation programs must relocate
existing tenants in order to utilize federal funds .
./ Low vacancy rates and high rental rates have made it difficult for persons to find
housing in Palo Alto using tenant-based Section 8 Certificates and Vouchers.
3. Actions to Address Obstacles to Maintain Affordable Housing or Eliminate Barriers
a. Housing Trust Fund
When the Santa Clara County Board of Supervisors, Silicon Valley Manufacturing Group, Santa
Clara County Collaborative on Housing and Homeless Issues, and the Community Foundation of
Silicon Valley founded Santa Clara County Housing Trust Fund, the City of Palo Alto was among
the contributors.
The Housing Trust of Santa Clara County (HTSCC) was created to provide additional financial
resources to address the County's affordable housing deficit. The HTSCC's initial funding
endowment of $20 million was met in two years and included contributions from public
jurisdictions in the County, major employers and private foundations. On October 23,2000, the
City Council approved a contribution of$500,000 from the City's Residential Housing fund with
the provision that the City's fund be used exclusively for qualifying affordable housing projects
located within the City of Palo Alto. The City provided additional funding in the amount of
$150,000 and $100,000 in 2004 and 2009, respectively. On February 8, 2010, the City contributed
an additional $100,000 to the Trust Fund. The City Council allocated another $100,000 from the
City's Residential Housing fund for a FY 2010111 contribution to the HTSCC. The Trust's three
emphases are: creating more affordable rental housing, first-time homebuyer opportunities and
housing for the homeless.
20
The City's participation in the Housing Trust has increased the available housing funding for a
number of Palo Alto projects. Since the execution of the Agreement with the City, the HTSCC
has loaned approximately $2.24 million to non-profit housing developers, leveraging close to $69
million from other sources for various projects in Palo Alto as shown below:
Project Name Number of Units HTSCC Leveraged Amount
Loan Amount
Opportunity Center 89 $650,000 $20,050,000
Oak Court Apartments 53 $400,000 $19,700,000
Alta Torre 56 $689,439 $18,110,561*
Tree House 35 $500,000 $11,016,525*
Total 233 $2,239,439 $68,877,986
*Estlmated amount
In addition, the HTSCC invested over $100,000 assisting 15 households to purchase homes in
Palo Alto through its first-time homebuyer program. Assisted households had an average
income of $58,466 and the average home purchase price was $239,443.
4. Adjustments or Improvements to Affordable Housing Strategies
a. Public Policies
• Housing Element
The Housing Element of the Comprehensive Plan is the chief policy document describing the
City's housing needs and the policies and programs the City will use to meet those needs. The
current Housing Element was adopted by the City Council on December 2, 2002, and contains
strategies to meet the City's fair share of the region's market rate and very low, low and
moderate income housing needs as defined by the Association of Bay Area Governments
(ABAG). On May 15,2008, ABAG's Executive Board adopted the final Regi0nal Housing
Needs Allocations for all the jurisdictions in the San Francisco Bay Area for the period 2007-
2014. Palo Alto's total allocation is 2,860 units, to include 690 very low, 543 low, 641
moderate, and 986 above moderate income units. The City's allocation has increased by
approximately 204% over the past period of 1999 to 2006. The increase is based on a new
methodology that weights local housing, employment and transit factors as follows: Housing
45%, Employment 45% and Transit 10%.
Main policies and programs included in the Housing Element adopted on December 2, 2002,
address:
• Increasing the Supply of Land Suitable for Housing
• Using Existing and Planned Residential Lands More Efficiently and Intensively
• Modifying and Strengthening Existing Policies to Increase the Supply of Affordable
Housing
• Using Legislative Powers to Promote Affordable Housing
• Reserving 16 sites identified on the Housing Sites Inventory for higher density
housing
• Zoning Ordinance Update
21
In July 2007, the City Council adopted the last of numerous revisions to the City's Zoning
Ordinance bringing to completion the Zoning Ordinance Update, which had been underway for the
previous seven years. The updated Zoning Ordinance implemented approximately 100 policies
and programs from the Comprehensive Plan designed to facilitate a wide variety of housing types
and to encourage residential mixed use development of commercial lands. Three new land uses
permitted by the new codes are: Village Residential, Mixed Use, andPedestrianlTransit Oriented
Development as well as key policies addressing housing, parking, and urban design were included
in the zoning ordinance format.
h. Development Impact Fees for Housing
The City of Palo Alto's impact fees collected for residential and commercial development
projects were modified within the past fiscal year. The Impact Fees are now comprised of four
categories: Housing, Traffic, Community Facilities and Parkland Dedications fees. The housing
fee on commercial projects increased from $17.59 per square foot to $17.72 per square foot. The
fee rate applies to all net new commercial square footage on a site. Full payment is required at
building permit issuance with some exemptions, such as hazardous material storage, churches,
colleges and universities, commercial recreation, hospitals and convalescent facilities, private
education facilities, public facilities and private clubs, lodges and fraternal organizations.
22
PART III.
COMMUNITY DEVELOPMENT
23
PART III
COMMUNITY DEVELOPMENT
A. Resources Available
1. City of Palo Alto Non-Housing Community Development Resources
a. Federal Funds
The primary federal resource in the City of Palo Alto for non-housing community development
activity is the Community Development Block Grant (CDBG)Program. The City of Palo Alto is
an entitlement jurisdiction under the CDBG regulations and receives annual funding on a
formula basis. The City receives no other direct federal funding for community development
projects.
In fiscal year 2009/10, the City allocated a total of $112,251 in CDBG funding to public service
activities, and $149,668 to fair housing activities and CDBG program administration.
Additionally, $27,500 of the City's American Recovery and Reinvestment Act CDBG funding
allocation was targeted to Haven Family House, a public service activity.
b. Local Funds -Human Service Resource Allocation Process (HSRAP) . .
The City of Palo Alto provided $977,292 in General Funds in 2009/10 to address priority human
service needs in the community. The funds were allocated through the Human Service Resource
Allocation Process (HSRAP), and administered by the Office of Human Services in the
Community Service Department. The projects funded addressed the Human Relations
Commission's priority needs in the following categories: nutrition, childcare, youth/teens,
seniors, homeless/low income, disability, information and referral, mediation, domestic violence,
and health care.
c. Leveraging
All of the local non-profit agencies leverage CDBG, HSRAP; and other funding with money
from local organizations such as the United Way, corporations, foundations, and individual
donors.
B. Accomplishments
The City of Palo Alto, by itself, and in conjunction with nonprofit organizations, undertook the
following activities with CDBG funds to meet its priorities for non-housing community
development activities as stated in the FY 200911 0 Annual Action Plan of the Consolidated Plan.
24
N
1. Summary of Public Service and Fair Housing Accomplishments
• $31,160 to the Palo Alto Housing Corporation. Provided counseling sessions,
supportive services and referrals for very-low income residents of Single Room
Occupancy (SRO) residences, many of whom were previously homeless.
• $30,725 to Project Sentinel. Investigated cases involving allegations of housing
discrimination in Palo Alto, and provided fair housing outreach and education
servIces.
• $36,361 to InnVision theWay Home. The Clara Mateo Alliance Homeless
Shelter program provided shelter and supportive services to homeless families and
individuals at the Veterans Administration facility in Menlo Park. .
• $31,160 to Inn Vision the Way Home. The Opportunity Center in Palo Alto
provides essential supportive services at the homeless drop-in center and also
manages the Hotel de Zink nightly rotating church shelter program in Palo Alto.
• $5,000 to Catholic Charities. The Long-term Care Ombudsman program
investigates allegations of elder-abuse and provides advocacy and informational
services for the frail elderly residents of long-term care facilities within the City.
• $8,570 to Support Network for Battered Women. Agency provides multiple
services to victims of domestic violence and their children, including counseling
and emergency shelter.
• $27,500 to Shelter Network. Haven Family House in Menlo Park provided
transitional housing and supportive services for previously homeless families with
children. (ARRA funding)
2. Summary of Community Development Accomplishments
for Public Facilities and Improvements
(HUD Table 3-1)
ameo fG rantee: P I AI ao to S CA tate: P rogram y ear: 20091 10
Priority Need Category Actual Number of Actual Number of
Projects Assisted Projects Completed
Public Facilities
Senior Centers
Handicapped Centers
Homeless Centers
Youth Centers
Neighborhood Facilities
25
Priority Need Category Actual Number of Actual Number of
Projects Assisted Projects Completed
Child Care Centers
Parks and/or Recreation
Facilities
Health Facilities
Parking Facilities
AbusedlNeglect Facilities
AIDS Facilities
Other Public Facilities
Public Improvements
J
Solid Waste Improvements
Flood Drain Improvements
Water Improvements
Street Improvements
Sidewalk Improvements
Sewer Improvements
Other
Other
Priority Need Category Actual Number of Persons Served
Public Services
Senior Services Elder abuse and advocacy services at
long-term care facilities -640 persons
Handicapped Services Senior Home Repair Accessibility
Improvements
Youth Services
Transportation Services*
Substance Abuse Services*
Employment Training*
26
Priority Need Category ActualNumber of Persons Served
Crime Awareness
Fair Housing Counseling 25 cases investigated, 11 consultations
provided, 15 rental sites monitored
Tenant/Landlord Counseling Same as above
Child Care Services
Support Services for SRO low-income 146 SRO residents
residents
Other Public Services (homeless assistance) Adult emergency shelter (other than
Opportunity. Center) -19
Families in transitional housing -31 (56
individuals)
Opportunity Center -1,292
Accessibility Needs
Other Community Development
Energy Efficiency Improvements
Lead Based Paint/Hazards
Code Enforcement
Other
3. Summary of Accomplishments with Palo Alto General Fund Money
The City of Palo Alto Human Service Resource Allocation Process (HSRAP) provided
$1,110,452 in General Fund dollars to the following agencies for services to lower income
elderly, disabled or special needs residents of Palo Alto during the 200911 0 fiscal year.
• Abilities United -$40,045. Services for children with disabilities and their
families
• Adolescent Counseling Services -$88,445. On-campus counseling programs
• A venidas -$406,287. Senior services
• Community Health Awareness -$9,500. Outlet program
• Community Technology Alliance -$12,065. Shared technical infrastructure
• Downtown Streets Team -$35,815. Downtown Streets Team
• La Comida de California -$32,300. Senior nutrition program
• MayView Community Health Center - $ 17,100. Health care for low income,
homeless, and uninsured residents
• Momentum for Mental Health -$25,650. Homeless outreach program
27
• Palo Alto Community Child Care -$411,607. Child care subsidies and outreach
• Second Harvest Food Bank -$7,128. Groceries for low-income seniors
• Senior Adult Legal Assistance -$8,550. Legal assistance for seniors
• Youth Community Services (YCS) -$15,960. Community Service Program and
Summer Service Program
4. Actions Taken to Affirmatively Further Fair Housing
The City continues to support the purpose and goal of fair housing and contracted with Project
Sentinel to promote equal opportunity in housing in fiscal year 200911 O. The contract with
Project Sentinel is a collaborative effort with the cities of Gilroy, Mountain View and Sunnyvale.
Services included information and referral, community outreach and education, discrimination·
complaint checking and investigation, legal referrals and assistance in resolving complaints. The
City also contracted with Project Sentinel to provide tenant/landlord information, referral and
mediation services. Senior Adult Legal Assistance (SALA) also receives City of Palo Alto
General Funds to provide legal assistance to seniors. This service could include housing related
assistance to elderly residents. In addition to the services provided under these contracts, the
following steps were taken in the 200911 0 fiscal year to affirmatively further fair housing.
• The City provided 154 affordable housing units during the last Consolidated Planning
period, well in excess of its 125 unit goal. There are an additional 85 units in the
development stage.
• The City is in the process of updating its Housing Element to comply with the provision
of additional housing units required by ABAG.
• City Planning staff participated with other Santa Clara County CDBG entitlement
jurisdictions and service providers in the Countywide Fair Housing Task Force. The task
force includes representatives from entitlement jurisdictions, fair housing providers, legal
service providers, and other community service providers.
• The City of Palo Alto along with other Santa Clara County CDBG entitlement
jurisdictions, contracted with BAE to provide a county-wide look at impediments to fair
housing choice. A draft report was issued and is being reviewed.
• The Office of Human Services met regularly with the Off the Streets Team responding to
the homeless in the community with the principal goal of finding permanent housing.
• The Office of Human Services has met regularly and worked with the Santa Clara County
Housing Authority to place homeless individuals with Section 8 vouchers.
• The City's Office of Human Services provided affordable housing information and
referral services.
• The City targeted the majority of its CDBG and local housing funds to increasing!
preserving the supply of housing affordable to persons with lower incomes and/or special
needs.
28
• The City continues to support police officials and community groups in the development
of policies and actions to deal with hate crimes.
Project Sentinel responded to and investigated 25 cases of housing discrimination in Palo Alto
during the fiscal year. The cases and their dispositions are as follows:
Cases
Handicap/Disability 11
Familial Status/Children 9
National Origin 3
Source of Income .1
Total 25
Disposition
Pending 8
Counseled 8
HUD referral 4
Conciliated 3
Educated 2
Total 25
Under its fiscal year 200911 0 contract with the City, Project Sentinel conducted, and collaborated
on a number of education, community forums and outreach activities relating to discrimination
issues, including:
• Conducted 7 fair housing workshops in Palo Alto for owners, landlords/property
managers and staff of rental housing and real estate and lending professionals.
• Conducted 12 fair housing presentations to community groups, church groups, service
agencies, businesses, schools, tenants, etc. in Palo Alto.
• Participated in Tri-County Division's Trade Show.
• Staffed informational table/booth and made presentation at fair housing events.
• Submitted 31 articles of "Rent Watch" for publication in various area newspapers, such
as the Palo Alto Daily.
• Advertised quarterly in the Palo Alto Weekly.
• Coordinated activities and organized an event to celebrate Fair Housing Month in the
City.
• Prepared 861 news releases and public service ads in both print and radio/TV media.
Distributed the information to obtain the broadest possible coverage.
• Provided 1 0 consultations regarding rental property rules and regulations related to fair
housing in the City.
29
• Updated and distributed 926 fair housing informational brochures in public areas
throughout the City, including City Hall, libraries, offices of non-profit service providers;
Chamber of Commerce, area real estate offices and pediatrician offices.
• Conducted 4 tester trainings.
• Conducted monitoring of 15 rental sites for compliance with fair housing practices and/or
additional cases.
5. Actions taken to address the needs of homeless persons
a. Shelter Plus Care (SPC)
The Shelter Plus Care Program, administered by the Housing Authority of Santa Clara County,
provides project based Section 8 rental assistance for previously homeless individuals with
disabilities. To qualify for the SPC program, applicants must have a history of homeless ness and
currently be homeless or living in a Transitional Housing Unit; and have one ormore of the
following disabilities: serious mental illness, recovering from alcohol and/or drug addiction, or
have HIV/AIDS. They must have a qualified case manager; have a monthly income; and have
been a resident of Santa Clara County for at least one year. Supportive services are provided to
program participants to allow them to maintain their housing, address and resolve ongoing issues
with their particular disability, and achieve a greater level of self-determination
There are currently five Shelter Plus Care clients housed in Palo Alto. All five participants are
very low income. Overall, the SPC program has been successful at housing people with special
needs who might not otherwise be eligible for housing or be able to maintain their housing.
b. Opportunity Center -Community Facility
The Community Working Group (CWG) is the sponsor ofa comprehensive homeless service
center, The Opportunity Center. It is managed by InnVision, the Way Home and provides refuge
and a range of professionally run services for those who are homeless or in need of a safety net
of social services. The Opportunity Center service area is located on the ground floor of a 4-story
building that also has 88 units of affordable transitional and permanent housing for singles,
couples and families with children. It held its grand opening on September 17, 2006 and the
initial rent-up of the facility was completed on December 27, 2006.
The Opportunity Center, located at 33 Encina Way in Palo Alto, provides many basic personal
services for those in need -mail delivery, access to a telephone, showers and personal hygiene
supplies, health care, laundry facilities, help finding food and shelter, clothing, computer access,
and a supportive environment. Case managers and counseling services are available to assist
people in obtaining appropriate job skills, housing, and appropriate medical and mental health
assistance.
30
c. Shelter
Inn Vision the Way Home operates the Clara-Mateo Alliance Shelter on the grounds of the
Veterans Administration facility in Menlo Park. Emergency shelter and transitional housing is
available for homeless individuals, couples and families with children. Supportive services and a
meal program are also provided. Hotel de Zink is a rotating church shelter program providing
overnight shelter and meals to a maximum of 15 individuals per night. It is managed by Inn Vision
and clients are screened for admittance at the Opportunity Center.
d. Food
Inn Vision the Way Home operates the Breaking Bread Meal Program that provides a prepared
meal once per day at a church or other community facility in the immediate vicinity of Palo Alto.
Additionally, Inn Vision operates the brown bag food distribution program for eligible, low-
income persons.
e. Employment Opportunities
\
The Palo Alto Downtown Business and Professional Association founded the Downtown Streets
Team in May 2005. The Team enlists homeless citizens to clean up Palo Alto streets in exchange
for shelter and food vouchers. It also is the first step in a previously jobless person's re-entry into
the working world building current job history, references and credibility .. The team currently has
24 members and a long waiting list. A majority of the clients who complete the program have
achieved pennanentjobsand stable housing. The Downtown Streets Team has been recently
named one of the nation's "Top 50 Government Innovations" by the Ash institute at Harvard
University's John F. Kennedy School of Government. It is also used as a model for similar
programs in Menlo Park, Gilroy, Reno, Nv., Virginia Beach, Va. and Daytona Beach, Fla.
The Opportunity Center provides clients with computer access, resume writing classes, job
listings, and employment counseling. It is open Monday through Friday from 8:30 a.m. to 4:30
p.m. and is located at 33 Encina Way in Palo Alto.
f. Homeless Services
In total, the City provided $261,239 in direct funding forthe following services targeted to
benefit persons who are very low income or homeless:
• Opportunity Center -$31,160 in CDBG funds for a drop-in center and emergency shelter.
• Palo Alto Housing CorPoration -Downtown SRO Hotel Counseling -$31,160 in CDBG
funds for casework/counseling sessions for the low-income tenants of the Single Room
Occupancy Barker Hotel and Alma Place. Many of the tenants were previously
homeless, and the counseling sessions help them maintain their housing stability.
• Shelter Network -$27,500 in CDBG/ ARRA funds for transitional housing and
supportive services (including childcare) for homeless families with children and single
individuals.
• Clara-Mateo Alliance -Family/Singles Shelter and Transitional Housing-$36,361 in
CDBG funds for emergency shelter and transitional housing for homeless individuals and
families with children
31
• Catholic Charities -$5,000 inCDBG funds to provide advocacy services for low income
seniors-at long-term care facilities
• May View Community Clinic -$17,100 in City General Funds were provided to the
Clinic to provide health care for low-income, homeless, and uninsured residents.
• Momentum for Mental Health -$25,650 in City General Funds for a homeless outreach
program targeted to those with mental health issues.
• Community Technology Alliance -$12,065 in City General Funds were used to provide
voice mail boxes for the homeless as well as to support a Countywide subsidized housing
website.
• La Comida de California -$32,300 in City General Funds were used to provide meals for
low-income seniors at various facilities
• Downtown Streets Team, Inc. -$35,815 in General Funds were used to provide shelter
and food vouchers for program participants in the work program.
• Second Harvest Food Bank -$7,128 in City General Funds were used to provide
groceries to low-income individuals
6. Antipoverty Strategy
The City of Palo Alto provided either CDBG or HSRAP funding to several services for persons
in the Palo Alto community who are very low-income, homeless, or at-risk of becoming
homeless. The goal of all of the services listed in the section above is to prevent homelessness,
help people move out of homelessness and to reduce the number of persons below the poverty
line.
7. Other Actions
a. Lead-Based Paint Hazard Reduction
Lead poisoning can cause permanent damage to the brain and many other organs, and can result
in reduced intelligence and behavioral problems in young children. More than 800,000 children
younger than 6 years old living in the United States have lead in their blood that is above the
level of concern set by the Centers for Disease Control and Prevention (CDC). A significant
number of these children are in families of low income and are living in old homes with heavy
concentrations of lead-based paint. The most common sources of childhood exposure to lead are
deteriorated lead-based paint and lead-contaminated dust and soil in the environment.
The City housing and CDBG staff provide information and referral to property owners,
developers and non-profits rehabilitating older housing about lead-based paint hazards. There is
no information that indicates lower income households are more likely to be exposed to lead
paint hazards in Palo Alto than are families in the general popUlation. The City's 2005-2010
Consolidated Plan has a more detailed discussion of lead based paint in the City.
32
The City currently requires that any housing to be rehabilitated with City financial assistance to
be inspected for the existence of lead paint and lead paint hazards. The City will provide
financial assistance for the abatement of such hazards in units rehabilitated with City funding.
b. Intergovernmental Cooperation
The City of Palo Alto has joined with the cities of Gilroy, Mountain View and Sunnyvale to
contract for fair housing services. A single fair housing provider was selected for all four cities,
resulting in more cost-effective services. City staff has also participated in County sponsored
Task Forces and other efforts to increase affordable housing on a regional basis.
City staff participates in the following:
./ The Housing Trust Fund of Santa Clara County
./ The CDBG and HOME Program coordinators of entitlement jurisdictions from
throughout Santa Clara County that address multi-jurisdictional funding, regional
approaches to fair housing and predatory lending and other issues of common
interest. .
./ Countywide Fair Housing Task Force
c. Actions to Ensure CDBG Program Compliance
The City follows the monitoring requirements for the use of federal funds as directed by HUD.
The City's Department of Planning and Community Environment monitors its housing
production goals and all the activities carried out to further the goals of the Consolidated Plan.
Subrecipients of CDBG funds are required to submit semi-annual and annual performance reports
outlining the extent to which program goals have been achieved, and the beneficiaries who have
been served. Program performance is measured against the specific program objectives outlined in
the contract scope of services. City staff monitors each subrecipient, as necessary; to insure
compliance with regulations governing their administrative, financial and programmatic
operations, and t<;> make sure the subrecipients achieve their performance objectives within the
prescribed schedule and budget.
8. Changes to Annual Action Plan
The Department of Housing and Urban Development sent notification to the City of Palo Alto on
June 15,2009 that its 2009110 Community Development Black Grant award had been increased.
The CDBG award was increased from $683,344 to $685,879 a difference of$2,535.Sincethe
funding allocations had already been made for the 2009110 fiscal year, the $2,535 was
reallocated to other projects in fiscal year 2010111.
c. Assessment of Performance
1. Evaluation of Progress in Meeting Annual Community Development Goals
The City has made steady progress in meeting its community development goals in the past year
and over the five-year consolidated plan period. The local safety net of services for lower
33
income persons is in place, providing a continuum of care for those most in need. All of the
public service agencies funded with CDBG funds address the identified need of providing a
variety of human services to low-income, at risk populations. The economic downturn, however,
continues to stress the capacity of public service agencies to provide services to an ever
increasing client base with decreasing resources.
The following goals are those that were identified in the 2005-2010 Consolidated Plan. The
fiscal year 200911 0 accomplishments for each goal are also listed.
Goal #8: Provide Assistance and Supportive Services to Low and Very Low-Income Palo
Alto Residents to keep them from Becoming Homeless
200911 0 Activities:
. Palo Alto Community Childcare -Childcare Subsidies
·3990 Ventura Court
Palo Alto, CA
2009 Accomplishment: 62 children were provided with subsidized childcare
Second Harvest Food Bank
750 Curtner Avenue
San Jose, CA 95125
2009 Accomplishment: 300+ seniors received supplemental groceries
, La Comida -Senior Nutrition Program
450 Bryant Street
Palo Alto, CA 94301
2009 Accomplishment: 440 low-income seniors received hot meals
Palo Alto Housing Corporation -Barker Hotel and Alma Place Counseling Program
725 Alma Street
Palo Alto, CA 94301
2009 Accomplishment: 146 SRO residents received supportive services to maintain their housing
May View Community Clinic -Health Care Services .
270 Grant Avenue
. Palo Alto, CA 94306
2009 Accomplishment: 125 individuals received health care
Community Technology Alliance
San Jose, CA
2009 Accomplishment: Voice main and HMIS provided to homeless clients
Downtown Streets Team
Palo Alto, CA
2009 Accomplishment: Participants trained in job skills & job search skills
34
Support Network for Battered Women
Palo Alto, CA
2009 Accomplishment: 47 persons from Palo Alto provided with domestic violence prevention
counseling and services
Goal #9: Continue to Support the Opportunity Center for the Provision of Supportive
Services with a Housing Component
200911 0 Activity:
InnVision
33 Encina Way
Palo Alto, CA 94301
2009 Accomplishment: 1,292 individuals accessed services at the Opportunity Center
Goal #10: Continue to Support the Operating (and/or rehabilitation) Costs of Shelters and
Transitional Housing Programs that Serve the Palo Alto Area
200911 0 Activities:
InnVision
Clara-Mateo Alliance -Adult Program and Family Program
795 Willow Rd., Bldg 323-D
Menlo Park, CA 94025
2009 Accomplishment: 75 individuals and family members from Palo Alto were provided with
shelter and supportive services
Shelter Network -Haven House
260 Van Buren Rd.
Menlo Park, CA 94025
2009 Accomplishment:
InnVision
Hotel de Zink
Various Church locations in Palo Alto and Menlo Park
2009 Accomplishment 15 persons per night were provided with shelter and a meal
Goal #11: Continue to Support Mental Health Outreach and Other Supportive Services for
the Homeless
200911 0 Activity: Momentum for Mental Health
Palo Alto, CA
2009 Accomplishment: 700 contacts were made with homeless individuals
Goal #12: Continue to Cooperate on Countywide Approaches to the Issues of Homelessness
200911 0 Activity:
The City continued to cooperate on countywide approaches to the issues of homeless by serving
on task forces, attending meetings, and cooperatively participating in a Countywide homeless
count.
35
Goal #13: Support the Activities of Area Non-Profit Organizations that Provide Transitional
Housing and Supportive Services to the Homeless
200911 0 Activities:
Clara-Mateo Alliance -Adult Transitional Housing
795 Willow Rd., Bldg 323-D
Menlo Park, CA 94025
2009 Accomplishment: 19 persons from Palo Alto were provided with housing
Clara-Mateo Alliance -Family Transitional Housing
795 Willow Rd., Bldg 323-D
Menlo Park, CA 94025
2009 Accomplishment: 31 households from Palo Alto were provided with housing
Shelter Network -Haven Family Transitional Housing
260 Van Buren Road
Menlo Park, CA 94025
2009 Accomplishment:
Goal #14: Continue to Support the Shelter Plus Care Program in Palo Alto and Increase the
Units Available in the Program to Include Families with Children
200911 0 Activity:
Santa Clara County Housing Authority
Shelter Plus Care Program
San Jose, CA
2009 Accomplishment: Five Shelter Plus Care clients were provided with housing and supportive
servIces.
Goal #15: Assist Seniors in Long-Term Care Facilities
200911 0 Activity:
Catholic Charities -Long-Term Care Ombudsman Program
2625 Zanker Road, Suite 200
San Jose, CA 95134-2107
2009 Accomplishment: 640 contacts were made with seniors in long-term care facilities
Senior Adults Legal Assistance
San Jose, CA
2009 Accomplishment: 68 low-income senior clients provided with legal services
Goal #16: Provide Support to Accessible Transportation Services
200911 0 Activity:
City of Palo Alto -Continued to support accessible transportation services, including the free Palo
Alto Shuttle.
36
Goal #17: Continue to Provide Services to Prevent Homelessness (Also see Goal #8)
200911 0 Activities:
Clara-Mateo Alliance -Adult/Couples Program
795 Willow Rd., Bldg 323-D
Menlo Park, CA 94025
Shelter Network -Haven House
260 Van Buren Rd.
Menlo Park, CA 94025
Inn Vision -Opportunity Center
33 Encina Ave.
Palo Alto, CA 94301
Downtown Streets Team
Palo Alto, CA
MayView Health Center
Palo Alto, CA
Goal #18: Continue to Support Food and Meal Programs
200911 0 Activity:
Second Harvest Food Bank
750 Curtner Avenue
San Jose, CA 95125
2009 Accomplishment: Supplemental groceries to 300 Palo Alto seniors
La Comida -Senior Nutrition Program
450 Bryant Street
Palo Alto, CA 94301
2009 Accomplishment: 440 low income seniors received hot lunches
Inn Vision -Breaking Bread Meal Program
Various locations in Palo Alto
2009 Accomplishment: Free hot meals provided once daily (either lunch or dinner) in various
locations in Palo Alto
Goal #19: Promote a Vital System of Community-Based Human Services through Facilities
to House those Services
200911 0 Activity:
No new facilities were provided in 200911 O.
2. Barriers to Fulfilling Strategies
Area non-profit agencies struggle to maintain services in these difficult economic times. In most
cases they have experienced decreases in funding and donations resulting in staffing and service
cuts. At the same time, the number of clients needing services has increased due to high
unemployment rates and high housing costs. Although BUD is marketing a "housing first"
37
priority, the need remains for emergency shelters as there are simply not enough subsidized
housing units to meet the need.
The City's CDBG program works diligently with other purveyors of funding to provide the most
value per dollar. This is actualized by partnering with other City resources such as HSRAP and
leveraging dollars invested in site acquisition for low-income housing with a multitude of other
funding sources. It clearly is not enough as evidenced by the levels of need. The current most
significant barrier to fulfilling strategies is the depressed state of national and global economies.
38
PART IV.
APPENDIX
39
A. COPY OF PUBLIC REVIEW NOTICE
40
B. SUMMARY OF FUNDING PRIORITIES
41
SUMMARY OF CDBG FUNDING PRIORITIES
Expended
FISCAL YEAR 2009/2010
I. AFFORDABLE HOUSING (Goal: 84.140/0 of Budget)
A. ACTIVITIES IN SUPPORT OF NEW CONSTRUCTION, CONVERSION &
ADDITION OF NEW UNITS
1. Permanent housing for families with children
2. Other permanent housing including group homes, seniors, the disabled,
shared housing, etc.
3. Transitional housing with supportive services
4. Permanent housing for the homeless or at-risk of homeless ness.
B. PRESERVATION OF EXISTING, LOWER INCOME RENTAL HOUSING
1. Preservation of existing, federally subsidized multi-family housing owned by
profit motivated investors.
2. Acquisition and/or rehabilitation of existing multi-family rental housing,
including improvements to common areas.
3. Acquisition and/or rehabilitation of existing buildings for special needs
populations including shared housing and group homes.
II. PUBLIC FACILITIES AND IMPROVEMENTS (Goal: 0% of Budget)
1. Rehabilitation of existing facilities for use as shelters for the homeless or
other special needs groups
III. PUBLIC SERVICES (Goal: 12.16% of Budget)
1. Services directly related to the housing needs oflow-income persons.
2. Homeless shelter operating costs and the provision of auxiliary or related
servIces.
3. Services which address other needs oflow income, elderly or special needs
persons.
IV. ADMINISTRATION (Goal: 16.38% of Budget)
1. Fair housing education, information, referral, advocacy, and counseling and
complaint resolution.
2. CDBG program administration and planning costs.
3. Planning studies
C. GRANTEE PERFORMANCE FINANCIAL REPORT
42
Department of Housing & Urban Development
Office of Community Planning
COVER PAGE
Grantee Performance Report
Community Development Block Grant Program
3. NAME & ADDRESS OF GRANTEE
City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
5. NAME & TELEPHONE NUMBER OF
PERSON MOST FAMILIAR WITH
INFORMATION IN THIS REPORT
Suzanne Bayley
(650) 329-2428
OMB Approval No. 2502-0006 (exp. 3/31/93)
1. Program Year End 12. GrantNumber
6/30/10 B09MC060020
4. NAME & ADDRESS OF C.D. DIRECTOR
Curtis Williams
Dept. of Planning & Community Environment
250 Hamilton Avenue
Palo Alto, CA 94301
6. NAME & TELEPHONE NUMBER OF PERSON
TO CONTACT ABOUT DISCLOSURES
" REQUIRED BY THE HUD REFORM ACTOF
1989
Suzanne Bayley
(650) 329-2428
7. Have these Community Development Block Grant (CDBG) funds been used:
a. to meet the community development program objectives in the final statement for this
program year? If no, explain, in narrative attachment, how: (1) the uses did not relate to
program objectives; and (2) future activities or program objectives might change as a result
of this year's experiences.
Yes.
b. exclusively to either benefit low-and-moderate (low/mod) income persons, aid in the
prevention or elimination of slums or blight, or meet community development needs having
a particular urgency? If no, explain in a narrative attachment.
Yes
c. such that the grantee hascompHed with, orwi~L comply with, its certification to expend not
less than 70% of its CDBG funds, during the specified period, on activities which benefit
low/mod income persons? If no, explain in a narrative attachment.
Yes
8. Were citizen comments about this report and/or the CDBG program received? If yes, attach a
summary. No comments received
This form may be reproduced on office
Copiers. Previous editions are obsolete.
Retain this record for 3 years.
Page 1 of 2
Form HUD-4949.1 (11/20/92)
Ref Handbook 6510.2
FINANCIAL SUMMARY
HUD 4949.3 FORM
2009/10
43
Financial Summary
Grantee Performance Report
Community Development Block Pro9ram
u.s: Department of Housing and Urban Development
Office of Community Planning & Development
OMB Approval No. 2506-0006(Exp. 3/31/93)
----------------------------------------------------------------------------------------------
1. Name of Grantee
City of Palo Alto
2. Grant Number
B09MC060020
3. Reporting Period
From 07/01/09 To 06/30/10
----------------------------------------------------------------------------------------------
Part I: Summary of CDBG Resources
1. Unexpended CDBG funds at end of previous period
2. Entitlement Grant from form HUD-70B2
3. Surplus Urban Renewal Funds
4. Section lOB Guaranteed Loan Funds (Principal Amount)
5. Program income received by:
a. Revolving Funds
Grantee
(Column A)
Subrecipient
(Column B)
b. Other (identify below) 227,696.39
Loan Repayments/Rental Income/Interest
Total Program Income (sum of columns a and b)
6. Prior Period Adjustments (if negative, enclose in brackets)
7. Total CDBG Funds available for use during this report period
180,591.95
685,879.00
227,696.39
1,094,167.34
--------------------------------------------------------~-------------------------------------
Part II: Summary of CDBG Expenditures
B. Total expenditures reported on Activity Summary
9. Total expended for Planning & Administration (cdbg/project sentinel)
10. Amount subject to Low/Mod Benefit Calculation
11. CDBG funds used for Section 108 principal & interest payments
12. Total expenditures (line 8 plus line 11)
13. Unexpended balance (line 7 minus line 12)
149,668.00
614,450.35
764,118.35
0.00
764,118.35
330,048.99
----------------------------------------------------------------------------------------------
Part III:Low/Mod credit This Reporting Period
14. Total Low/Mod credit for multi-unit housing expenditures
15. Total from all other activities qualifying as low/mod
expenditures
16. Total (line 14 plus line 15)
17. Percent benefit to low/mod persons
(line 16 divided by line 10 this reporting period)
491,160.00
123,290.35
614,450.35
100%
--------------------------------------------------------------------------------------'--------
Part IV: Low/Mod Benefit for Multi-Year Certifications (Complete
only if certification period includes prior years)
Program years (PY) covered in certification PY 2007, 2008, 2009
18. Cumulative net expenditures subject to program benefit
calculation
19. Cumulative expenditures benefiting low/mod persons
20. Percent benefit to low/mod persons
(line 19 divided by line 18)
This form may be reproduced
on local office copiers
1
0.00
0.00
0.00%
form HUD-4949.3(11/24/92)
ref Handbook 6510.2
Previous editions are obsolete
Retain this record for 3 years.
Financial Summary
Grantee Performance Report
community Development Block Program
U. S. Depar·tment of Housing and Urban Development
Office of Community Planning & Development
OMB Approval No. 2506-0006(Exp. 3/31/93)
Part V: For Public Service (PS) Activities Only:
Public Service CAP Calculation
Total PS expenditures from column h, form HUD4949.2a 21.
22.
23.
Total PS unliquidated obligations from column r, from HUD 4949~2a
. Sum of line 21 and line 22
24. Total PS unliquidated obligations reported at the end of the
previous reporting period.
25.
26.
27.
28.
29.
Net obligations for public services (line 23 minus line 24)
Amount of Program Income received in the preceding program year
Entitlement Grant Amount (from line 2)
Sum of lines 26 and 27
tercent funds obligated for Public Service Activities
(line 25 divided by line 28)
Part VI: Planning and Program Administration Cap Calculation
30. Amount subject to planning and administrative cap
(grant amount from line 2 plus line 5)
31.
32.
Amount expended for Planning & Administration (from line 9 above)
Percent funds expended (line 31 divided by line 30)
:NE 5a: PROGRAM INCOME NARRATIVE
Mid-Peninsula Housing Corporation -Palo Alto Garden Apts
Palo Alto Housing Corp. Rental property income
Palo Alto Housing Corp. -Sheridan Apartments
85,166.92
76,363.12
66,166.35
1227,696.391
112,251.00
0.00
112,251.00
0.00
112,251.00
237,365.72
685,879.00
923,244.72
1~2.16%1
913,575.39
149,668.00
[16.39%1
===========================================================================================
Other Program Income
===========================================================================================
Activity No. Description Grantee Subrecipient
0.00 0.00
-----------------------------------------~------.-------------------------------------------
Total 0.00 0.00
===========================================================================================
2
This form may be reproduced
on local office copiers
. Previous editions are obsolete
Retain this record for 3 years.
form HUD-4949.3(11/24/92)
ref Handbook 6510.2
Financial Summary
Grantee Performance Report
Community Development Block Program
U.S. Department of Housing and Urban Development
Office of Community Planning & Development
OMB Approval No. 2506-0006(Exp. 3/31/93)
GPR HANDBOOK APPENDIX 3: ITEM E CALCULATION OF BALANCE OF UNPROGRAMMED FUNDS
D. RECONCILIATION OF LINE (S) OF CREDIT (LaC) AND CASH BALANCES
TO UNEXPENDED BALANCE OF CDBG FUNDS SHOWN ON GPR
Complete the following worksheet and submit with the attachment:
UNEXPENDED BALANCE SHOWN ON GPR
(line 13 of HTJD 4949.3)
ADD:
LOC balance(s) as of GPR Date
Cash on Hand:
Grantee Program Account
Subrecipients Program Accounts
Revolving Fund Cash Balances
Section 108 Accounts
(in contract) J
SUBTRACT:
Grantee CDBG Program Liabilities
(include any reimbursements due to
the Grantee from program funds) .
Subrecipient CDBG Program Liabilities
(same instructions as above)
TOTAL RECONCILING BALANCE:
UNRECONCILED DIFFERENCE:
330,048.99
-0-
-0-
-0-
-0-
-0-
-0-
~o-
When grantees or subrecipients operate their programs on a
reimbursement basis, any amounts due to the grantees or
subrecipients should be included in the Program Liabilities.
This form may be reproduced
on local office copiers
Previous editions are obsolete
Retain this record for 3 years.·
3
330,048.99
330,048.99
form HUD-4949.3 (11/24/92)
ref Handbook 6510.2
U.S. Department of Housing & Urban Development Office of
Community Planning and Development
REHABILITATION ACTIVITIES
Grantee Performance Report
Community Development Block Grant Program
OMB Approval No. 2506-0006(exp. 3/31/93)
Name of Grantee
City of Palo Alto
Grant Number
B09MC060020
Program Year
From 07/01/09 To 06/30/10
All grantees must submit this form,
whether or not they have CDBG funded
rehabilitation programs.
Single-unit
Activities
(1 Unit)
1 Multi-unit
I· Activities I (2+ Units)
1. Check box only if grantee has no CDBG
rehabilitation activities:
2. Staffing: number of Staff-Years
(FTE staff years to tenths)
3. Current Program Year Expenditures:
Activity delivery costs from CDBG funds
a. Staff costs: Amount expended in 2 above
b. Other direct costs (not included in 4)
4. Current Program Year Expenditures:
For all projects (a+b+c below)
a. CDBG funds expended
b. Other public (Federal, State, local) funds exp'd.
c. Private funds expended
5. Project/Units Rehabilitated/Committed
a. Number of projects committed (multi-unit only)
b. Number of units committed
6. Obligations: Amount obligated for
projects/units committed in 5aand 5b
a. CDBG funds obligated
b. Other public(Fed.,State,local) funds obligated
c. Private funds· obligated
7. Projects/Units Rehabilitated/Completed
a. Number of projects completed (multi-unit only)
b. Number of units completed
8. Cumulative Expenditures:
a. CDBG funds expended
b. Other public(Federal,State, local) funds exp'd.
c. Private funds expended
4
$191,160.00
Proj ects
Units Units
2 Proj ects
184 Units
$191,160.00
I,
CnBG Financial Summary Report Program Year 2009/10
Explanation of Errors in the PR 26 Report
There appears to be a problem with the IDIS PR 26 which summarizes the income and
expenditures for fiscal year 200911 O. Although the IDIS back-up reports are reporting the
correct numbers, they are not being accumulated dorrectly into the PR 26. The PR 26
from IDS is attached along with a version of the same report that ha~ been manually
formulated with the correct numbers~ The differences are summarized below:
Line PR26 Report Amount Correct Amount IDIS Back up
01 Previous Balance -0-$180,591.95
05 Program Income $201,429.47 $227,696.39 PROI
08 Total Available $887,308.47 $1,094,167.34 Sum
09 Disbursements $654,771.99 $654,771.99 PR02
11 LowlMod Benefit $654,771.99 $614,450.35 PR02
12 Planning! Admin $184,006.00 $149,668.00 PR02
15 Total Expenditures $838,777.99 $764,118.35 PR02
16 Balance $48,530.48 $330,048.99 PROI
18 Low/Mod Housing -0-$491,160.00 Line 18 Detail
19 Other Activities $423,290.35 $123,290.35 Line -19 Detail
22 Percent Low/Mod 64.65% 100%
33 Prior Year PI $670,338.36 $237,365.72 PROI
35 Total $1,356,267.36 $923,244.72 Sum
36 Public Service % 8.28% 12.16%
37 Planning/Admin $184,006.00 $149,668.00 PR02
41 Total $184,006.00 $149,668.00 Sum
43 Current Year PI $201,429.47 $227,696.39 PRO 1
45 Total $887,308.4 7 $913,575.39 Sum
46 Planning/ Adinin % 20.74% 16.38%
IDIS u.s. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT
PR 26 -CDBG Financial Summary Report
Grantee
Program Year
PART 1: SUMMARY OF CDBG RESOURCES
9/14/2010
Palo Alto, CA
2009
1 UNEXPENDED CDBG FUNDS AT END OF PREVIOUS PROGRAM
YEAR
2 ENTITLEMENT GRANT
3 SURPLUS URBAN RENEWAL
4 SECTION 108 GURANTEED LOAN FUNDS
5 CURRENT YEAR PROGRAM INCOME
6 RETURNS
7 ADJUSTMENT TO COMPUTE TOTAL AVAILABLE
8 TOTAL AVAILABLE (SUM, LINES 01-07)
PART 2: SUMMARY OF CDBG EXPENDITURES .
9 DISBURSEMENTS OTHER THAN SECTION 108 REPAYMENTS
AND PLANNING/ADMINISTRATION
10 ADJUSTMENT TO COMPUTE TOTAL AMOUNT SUBJECT TO
. LOW/MOD BENEFIT
11 AMOUNT SUBJECT TO LOW/MOD BENEFIT (LINE 09 + LINE 10)
12 DISBURSED IN lOIS FOR PLANNING/ADMINISTRATION
13 DISBURSED IN lOIS FOR SECTION 108 REPAYMENTS
14 ADJUSTMENT TO COMPUTE TOTAL EXPENDITURES
15 TOTAL EXPENDITURES (SUM, LINES 11 -14)
16 UNEXPENDED BALANCE (LINE 08 -LINE 15)
PART 3: LOW/MOD BENEFIT THIS REPORTING PERIOD
17 EXPENDED FOR LOW/MOD HOUSING IN SPECIAL AREAS
18 EXPENDED FOR LOW/MOD MULTI-UNIT HOUSING
19 D1SBURSED FOR OTHER LOW/MOD ACTIVITIES
20 ADJUSTMENT TO COMPUTE TOTAL LOW/MOD CREDIT
21 TOTAL LOW/MOD CREDIT (SUM, LINES 17 -20)
22 PERCENT LOW/MOD CREDIT (LlNE21/LlNE11)
LOW/l\IIOD BENEFIT FOR MULTI-YEAR CERTIFICATIONS
180,591.95
685,879.00
0.00
0,00
227,696.39
0.00
0.00
1,094,167.34
614,450.35
0.00
614,450.35
149,668.00
0.00
0.00
764,118.35
330,048.99
0.00
491,160.00
123,290.35
0.00
614,450.35
100.00%
23 PROGRAM YEARS (PY) COVERED IN CERTIFICATION PY: 2007 PY: 2008 PY: 2009
24 CUMULATIVE NET EXPENDITURES SUBJECT TO LOW/MOD
BENEFIT CALCULATION
25 CUMULATIVE EXPENDITURES BENEFITTING LOW/MOD PERSONS
26 PERCENT BENEFIT TO LOW/MOD PERSONS (LINE 25/LiNE 24)
PART IV: PUBLIC SERVICE (PS) CAP CALCULATIONS
27 DISBURSED IN IDIS FOR PUBLIC SERVICES
28 PS UNLIQUIDATED OBLIGATIONS AT END OF CURRENT
PROGRAM YEAR
29 PS UNLIQUIDATED OBLIGATIONS AT END OF PREVIOUS
PROGRAM YEAR . ,
30 ADJUSTMENT TO COMPUTE TOTAL PS OBLIGATIONS
31 TOTAL PS OBLIGATIONS (LINE 27 + LINE 28 -LINE 29 + LINE 30)
0.00
0.00
0.00%
112,251.00
0.00
0.00
0.00
112,251.00
32 ENTITLEMENT GRANT
33 PRIOR YEAR PROGRAM INCOME
34 ADJUSTMENT TO COMPUTE TOTAL SUBJECT TO PS CAP
35 TOTAL SUBJECT TO PS CAP (SUM, LINES 32 -34)
36 PERCENT FUNDS OBLIGATED FOR PS ACTIVITIES (LINE 31/
LINE 35)
PART V: PLANNING AND ADMINISTRATION (PA) CAP
37 DISBURSED IN IDIS FOR PLANNING/ADMINISTRATION
38 PA UNLIQUIDATED OBLIGATIONS AT END OF CURRENT
PROGRAM YEAR
39 PA UNLIQUIDATED OBLIGATIONS AT END OF PREVIOUS
PROGRAM YEAR
40 ADJUSTMENT TO COMPUTE TOTAL PA OBLIGATIONS
41 TOTAL PA OBLIGATIONS (LINE 37 + LINE 38 -LINE 39 + LINE 40)
42 ENTITLEMENT GRANT
43 CURRENT YEAR PROGRAM INCOME
44 ADJUSTMENT TO COMPUTE TOTAL SUBJECT TO PA CAP
45 TOTAL SUBJECT TO PA CAP (SUM, LINES 42 -44)
46 PERCENT FUNDS OBLIGATED FOR PA ACTIVITIES (LINE 41/
LINE 45
685,879.00
237,365.72
0.00
923,244.72
12.16%
149,668.00
0.00
0.00
0.00
149,668.00
685,879.00
227,696.39
0.00
913,575.39
16.38%
lOIS
Grantee
Program Year
PART I: SUMMARY OF COBG RESOURCES
01 UNEXPENDED CDBG FUNDS AT END OF PREVIOUS PROGRAM
YEAR
02 ENTITLEMENT GRANT
03 SURPLUS URBAN RENEWAL
04 SECTION 108 GUARANTEED LOAN FUNDS
05 CURRENT YEAR PROGRAM INCOME
06 RETURNS
07 ADJUSTMENT TO COMPUTE TOTAL AVAILABLE
08 TOTAL AVAILABLE (SUM, LINES 01-07)
PART II: SUMMARY OF COBG EXPENDITURES
09 DISBURSEMENTS OTHER THAN SECTION 108 REPAYMENTS
AND PLANNING/ADMINISTRATION
10 ADJUSTMENT TO COMPUTE TOTAL AMOUNT SUBJECT TO
LOW/MOD BENEFIT
11 AMOUNT SUBJECT TO LOW/MOD BENEFIT (LINE 09 + LINE 10)
12 DISBURSED IN IDIS FOR PLANNING/ADMINISTRATION
13 DISBURSED IN IDIS FOR SECTION 108 REPAYMENTS
14 ADJUSTMENT TO COMPUTE TOTAL EXPENDITURES
15 TOTAL EXPENDITURES (SUM, LINES 11-14)
16 UNEXPENDED BALANCE (LINE 08 -LINE 15)
PART III: LOWMOO BENEFIT THIS REPORTING PERIOD
17 EXPENDED FOR LOW/MOD HOUSING IN SPECIAL AREAS
18 EXPENDED FOR LOW/MOD MULTI-UNIT HOUSING
19 DISBURSED FOR OTHER LOW/MOD ACTIVITIES
20 ADJUSTMENT TO COMPUTE TOTAL LOW/MOD CREDIT
21 TOTAL LOW/MOD CREDIT (SUM, LINES 17-20)
22 PERCENT lOW/MOD CREDIT (LINE 21/L1NE 11)
LOW/MOD BENEFIT FOR MUL TI·YEAR CERTIFICATIONS
23 PROGRAM YEARS(PY) COVERED IN CERTIFICATION
24 CUMULATIVE NET EXPENDITURES SUBJECT TO LOW/MOD
BENEFIT CALCULATION
25 CUMULATIVE EXPENDITURES BENEFITING LOW/MOD PERSONS
26 PERCENT BENEFIT TO LOW/M~)[i PERSONS (LINE 25/L1NE 24)
PART IV: PUBLIC SERVICE (PSI CAP CALCULATIONS
27 DISBURSED IN IDIS FOR PUBLIC SERVICES
U,S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
OFFICE OF' COMMUNITY PLANNING AND DEVELOPMENT
PR 26 -CDBG Financial Summary Report
PALO ALTO, CA
2009
180,591,95
685,879,00
0.00
0.00
201,429.47
0.00
0.00
1,067,900.42
654,771.99
0.00
654,771.99
184,006.00
0.00
0.00
838,777.99
229,122.43
0.00
491,160.00
423,290.35
0.00
914,450.35
139.66%
PY: 2007 PY: 2008 PY: 2009
0.00
0.00
0.00%
112,251.00
1/2
DATE: 9/22/2010
TIME: 2:42:24 pm
PAGE: 1/2
lOIS
28 PS UNLIQUIDATED OBLIGATIONS AT END OF CURRENT
PROGRAM YEAR
29 PS UNLIQUIDATED OBLIGATIONS AT END OF PREVIOUS
PROGRAM YEAR
30 ADJUSTMENT TO COMPUTE TOTAL PS OBLIGATIONS
31 .TOTAL PS OBLIGATIONS (LINE 27 + LINE 28 -LINE 29 + LINE 30)
32 ENTITLEMENT GRANT
33 PRIOR YEAR PROGRAM INCOME
34 ADJUSTMENT TO COMPUTE TOTAL SUBJECT TO PS CAP
35 TOTAL SUBJECT TO PS CAP (SUM. LINES 32-34)
36 PERCENT FUNDS OBLIGATED FOR PS ACTIVITIES (LINE 311L1NE
35)
PART V: PLANNING AND ADMINISTRA TlON (PA) CAP'
37D1SBURSED IN IDIS FORPLANNINGIADMINISTRATION
38 PA UNLIQUIDATED OBLIGATIONS AT END OF CURRENT
PROGRAM YEAR
39 PA UNLIQUIDATED OBLIGATIONS AT END OF PREVIOUS
PROGRAM YEAR
40 ADJUSTMENT TO COMPUTE TOTAL PA OBLIGATIONS
41 TOTAL PA OBLIGATIONS (LINE 37 + LINE 38 -LINE 39 +LlNE 40)
42 ENTITLEMENT GRANT
43 CURRENT YEAR PROGRAM INCOME
44 ADJUSTMENT TO COMPUTE TOTAL SUBJECT TO PA CAP
45 TOTAL SUBJECT TO PA CAP (SUM, LINES 42-44)
46 PERCENT FUNDS OBLIGATED FOR PA ACTIVITIES (LINE 411L1NE
45)
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT
PR 26 -CDBG Financial Summary Report
0.00
0.00
0.00
112.251.00
685.879.00
670.388.36
0.00
1.356,267.36
8.28%
184.006.00
0.00
0.00
0.00
184.006.00
685,879.00
201.429.47
0.00
887,308.47
20.74%
2/2
DATE: 912212010
TIME: 2:42:24 pm
PAGE: 212
IDIS U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT DATE: 9/2112010
OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT TIME: 2:38:15 pm
PR01 -HUD Grants and Program Income PAGE: 1/2
Amount
Program Fund Type Grant Number Authorized Suballocated Committed to Net Drawn Available to Available to
Amount Amount Activities Amount Commit Draw
CDBG EN B88MC060020 $528,000.00 $0.00 $528,000.00 $528,000.00 $0.00 $0.00
B89MC060020 $550,000.00 $0.00 $550,000.00 $550,000.00 $0.00 $0.00
890MC060020 $533,000.00 $0.00 $533,000.00 $533,000.00 $0.00 $0.00
891 MC060020 $598,000.00 $0.00 $598,000.00 S598,OOO.00 $0.00 $0.00
892MC060020 $640,000.00 SO.OO $640,000.00 $640,000.00 $0.00 $0.00
893MC060020 $700,000,00 $0.00 $700,000.00 $700,000.00 $0.00 $0.00
B94MC060020 $766,000.00 $0.00 $766,000.00 $766,000.00 $0.00 $0.00
895MC060020 $822,000.00 $0.00 $822,000.00 $822,000.00 $0.00 $0.00
B96MC060020 $792,000.00 $0.00 $792,000.00 $792,000.00 $0.00 $0.00
B97MC060020 $782,000.00 $0.00 $782,000.00 $782,000.00 $0.00 $0.00
898MC060020 $733,000.00 $0.00 $733,000.00 $733,000.00 $0.00 $0.00
899MC060020 $738,000.00 $0.00 $738,000.00 $738,000.00 $0.00 $0.00
800MC060020 $732,000.00 $0.00 $732,000.00 $732,000.00 $0.00 $0.00
BO 1 MC060020 $771,000.00 $0.00 $771,000.00 $771,000.00 $0.00 $0.00
B02MC060020 $808,000.00 $0.00 $808,000.00 $808,000.00 $0.00 $0.00
B03MC060020 $791,000.00 $0.00 $791,000.00 $791,000.00 $0.00 $0.00
B04MC060020 $816,000.00 $0.00 $816,000.00 $816,000.00 SO.OO SO.OO
Bp5MC060020 $779,281.00 '$0.00 $779,281.00 $779,281.00 $0.00 $0.00
B06MC060020 $711,680.00 $0.00 S711,680.00 S711,680.00 SO.OO $0.00
807MC060020 S712,032.00 $0.00 $712,032.00 $712,032.00 $0.00 $0.00
B08MC060020 $676,148.00 $0.00 $676,148.00 $676,148.00 SO.OO $0.00
B09MC060020 $685,879.00 $0.00 $402,564.46 $355,830.01 $283,314.54 $330,048.99
B 1 OMC060020 $731,566.00 $0.00 $0.00 $0.00 $731,566.00 $731,566.00
$16,396,586.00 $0.00 $15,381,705.46 $15,334,971,01 $1,014,880;54 $1,061,614,99
PI B97MC060020 $61,883.22 $0.00 $61,883.22 $61,883.22 $0.00 $0.00
898MC060020 $118,184.07 $0.00 $118,184.07 $118,184.07 $0.00 SO.OO
B99MC060020 S97,565.07 $0.00 $97,565.07 $97,565.07 SO.OO $0.00
BOOMC060020 $202,098.00 $0.00 $202,098.00 $202,098.00 $0.00 $0.00
BOl MC060020 $106,53,s.22 $0.00 $106,535.22 $106,535.22 $0.00 $0.00
B02MC060020 $87,912.06 $0.00 $87,912.06 $87,912.06 $0.00 $0.00
B03MC060020 $72,788.17 $0.00 $72,788.17 $72,788.17 $0.00 $0.00
B04MC060020 $122,319.04 $0.00 $122,319.04 $122,319.04 $0.00 $0.00
B05MC060020 $87,617.33 $0.00 $87,617.33 $87,617.33 $0.00 $0.00
806MC060020 $118,365.31 $0.00 $118,365.31 $118,365.31 $0.00 $0.00
B07MC060020 $699,447.73 $0.00 $699,447.73 $699,447.73 $0.00 $0.00
B08MC060020 $237,365.72 $0.00 $237,365.72 $237,365.72 SO.OO SO.OO
1/2
lOIS U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT DATE: 9/21/2010
OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT TIME: 2:38:15 pm
PROl • HUD Grants and Program tncome PAGE: 2/2
Amount
Program Fund Type Grant Number Authorized Suballocated Commilledto Net Drawn Available to Available to
Amount Amount Activities Amount Commit Draw
CDBG PI B09MC060020 $227.696.39 $0.00 $218,906.72 $218.906.72 $8,789.67 $8,789.67
$2,239,777.33 $0.00 $2,230,987.66 $2,230,987.66 $8,789.67 $8,789.67
CDBG·R EN B09MY060020 $183,477 .00 $0.00 $183,477.00 $84,542.67 $0.00 $98,934.33
$183,477.00 $0.00 $183,477.00 $84,542.67 '$0.00 $98;934.33
GRANTEE TOTALS $18,819,840.33 $0.00 $17,796,170.12 $17,650,501.34 $1,023,670.21 $1,169,338.99
2/2
lOIS
Activity Group Activity Category
Acquisition Acquisition of Real Property (01)
Housing Rehab; Single-Unit Residential (14A)
Rehab; Multi-Unit Residential (14B)
Public Services Public Services (General) (05)
General Administration and Planning General Program Administration (21A)
Fair Housing Activities (subject to
20% Admin Cap) (210)
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELDPMENT
OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT
PR23 (1 of 7) -Count of CDBG Activities with Disbursements by Activity Group &
Matrix Code
Underway Completed Program Total
Underway Activities Completed Activities Vear Activities
Count Disbursed Count Disbursed Count Disbursed
2 $300,000.00 0 $0.00 2 $300,000.00
2 $300,000,00 0 $0,00 2 $300,000,00
0 $0.00 1 $11,039.35 $11,039,35
2 $40,321.64 2 $191,160.00 4 $231,481.64
2 $40,321.64 3 $202,199.35 5 $242,520.99
0 $0.00 5 $112,251.00 5 5112.251.00
0 $0,00 5 $112,251.00 5 $112,251.00
0 50.00 2 $153,281.00 2 $153,281.00
0 SO.OO S30,725.00 $30,725.00
0 $0.00 3 $184,006.00 3 $184,006,00
4 $340,321.64 11 $498,456.35 15 $838,777.99
1/1
DATE: 912212010
TIME: 2:22:47 pm
PAGE: 1/1
IDIS
Activity Group
Acquisition
Housing
Public Services
Matrix Code Accomplishment Type
Acquisilion of Real Property Housing Unils
(01)
Rehab; Single-Unit Residential Housing Units
(14A)
.Rehab; Multi-Unit Residential Housing Units (14B) .
Public Services (General) (05) Persons
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT
PR23 (2 of 7) -CDBG Sum of Actual Accomplishments by Activity Group and
Accomplishment Type
Open Count Completed Count
0
0'
0 28
139 184
139 212
0 2.171
0 2,171
140 2,383
1/1
Program Year
Totals
28
323
351
2.171
2,171
2,523
DATE: 9/22/2010
TIME: 2:24:53 pm
PAGE: 1/1
lOIS u.s. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT DATE: 9/22/2010
OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT TIME: 2:33:52 pm
PR23 (3 of 7) -CDBG Beneficiaries by Racial/ Ethnic Category PAGE: 1/1
Housing-Non Race Total Total
Total Hispanic Total Hispanic Housing Persons Persons Households Households
Housing White 0 0 330 6
Black/African American 0 0 10 0
Asian 0 0 147 0
Native Hawaiian/Other Pacific Islander 0 0 1 0
Other multi-racial 0 0 2 0
Total 0 0 490 6
Non Housing White 1,122 18 0
Biack/African American 365 0 0 0
Asian 140 0 0 0
American Indian/Alaskan Native 111 0 0 0
Native Hawaiian/Other Pacific Islander 35 0 0 0
American Indian/Alaskan Native & White 16 0 0 0
Asian & White 7 0 0 0
Black/African American & White 25 0 0 0
Amer. Indian/Alaskan Native & Black/African Amer. 3 0 0 0
Other multi-racial 347 346 0 0
Total 2,171 364 0
Tolal White 1,122 18 331 6
Black/African American 365 0 10 0
Asian 140_ 0 147 0
American Indian/Alaskan Native 111 0 0 0
Native Hawaiian/Other Pacific Islander 35 0 1 0
American Indian/Alaskan Native & White 16 0 0 0
Asian & White 7 0 0 0
Black/African American & White 25 0 0 0
Amer. Indian/Alaskan Nalive & Black/African Amer. 3 0 0 0
Other multi-racial" 347 346 2 0
Tolal 2,171 364 491 6
1/1
lOIS
Housing
Income Levels
Extremely Low «=30%)
Low (>30% and <=50%)
Mod (>50% and .<=80%)
Total Low-Mod
Non Low-Mod (>80%)
Total Beneficiaries
Non Housing Extremely Low «=30%)
Low (>30% and <=50%)
Mod (>50% and <=80%)
Total Low-Mod
Non Low-Mod (>80%)
Total Beneficiaries
Owner Renter
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT
PR23 (4 of 7) -CDBG Beneficiaries by Income Category
Occupied Occupied Persons
20 207 0
5 254 0
3 0
28 462 0
0 0 0
28 462 0
0 0 1,600
0 0 41
0 0 260
0 0 1,901
0 0 270
0 0 2,171
1/1
~
DATE: 9/22/2010
TIME: 2:39:26 pm
PAGE: 1/1
lOIS -PR09
Report for Program:CDBG
Voucher Dates: 09-21-2010
Fiscal Associated Fund
Year Program Grant Number Type
2009 CDBG B09MC060020 PI
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Integrated Disbursement and Information System
Program Income Details by Fiscal Year and Program
PALO ALTO,CA
Estimated Voucher
Income for Year Transaction Voucher # Created
145,300.00
RECEIPTS
5007746 -001 01-07-10
5012676 -001 03-17-10
5025495 -001 08-27-10
DRAWS
5053550 -002 01-12-10
5053550 -003 01-12-10
5053550 -004 01-12-10
5080940 -001 03-17-10
5080940 -002 03-17-10
5156731 -001 08-27-10
5156731 -002 08-27-10
Voucher
Type
PY
PY
PY
PY
PY
PY
PY
lOIS
Activity 10
60
206
207
210
206
208
204
209
Date:
Time~
Page:
Matrix
Code
01
21A
21D
14B
21A
01
05
14B
Receipts
Draws
Balance
09-21-10
14:26
1
Receipted/Drawn
Amount
60,669.92
81,859.55
85,166.92
22,550.07
9,050.18
20,280.00
8,737.89
73,121.66
916.92
84,250.00
227,696.39
218,906.72
8,789.67
Page: 1 of 1
D. PUBLIC COMMENTS
44
No public comments were received during the public review and comment period.
• Consideration of the establishment of an infrastructure reserve for the Golf Course to pay
for capital improvements from positive Golf Course cash flow to reduce the need for
future capital improvement-related debt.
Staff requests that these two items be referred to the Finance Committee for further discussion.
Finally, the report also discusses the intent to make coterminous both the Golf Professional
contract with Brad Lozares and the Pro-Shop lease agreement with Brad Lozares, so the
agreements will terminate concurrently in the month of April 2013. Staff will make a
recommendation to the Council before the end of calendar year 2010.
RECOMMENDATION
Staff recommends that the Council:
1. Authorize the City Manager or his designee to execute the General Services Agreement
(Attachment B) in the amount of $1,850,000 with ValleyCrest for a term of 30 months
beginning November 1, 2010 ending April 30, 2013, and the sale of used golf course
maintenance equipment (Attachment C) to ValleyCrest for $125,000; and
2. Authorize the City Manager or his designee to negotiate and execute one or more change
orders to the contract with ValleyCrest Golf, Inc., for related, additional but unforeseen
work that may develop during the project, the total value of which shall not exceed
$185,000 (1 0% Contingency); and
3. Refer to the Finance Committee the question of how staff should propose fair and
reasonable mitigation for anticipated lost revenues at the Golf Course during the San
Francisquito Creek Joint Powers Authority's (JPA) flood control project.
4. Refer to the Finance Committee the question of whether staff should develop for the
Council's approval a proposal to establish a new infrastructure reserve fund in the
amount of the annual savings above the fully loaded operating costs of the Golf Course
for the eventual replacement of anticipated infrastructure needs at the Palo Alto
Municipal Golf Course.
BACKGROUND
The Golf Course was constructed in the mid-1950's on 184 acres of flat former salt-marsh and
bay fill. The course was designed by noted golf course architect William R. Bell of Pasadena,
California. The Golf Course was designed as an 18-hole facility with a par of 72. The Golf
Course is a classic 18-hole championship course that measures over 6,800 yards from the back
tees. The facility includes a large practice putting green, a three-building Eichler-designed-
clubhouse/golf shop complex and parking lot. In the mid 1970's, improvements were made to
replace the clubhouse buildings. At that time, holes 3, 10, 11, & 18 were renovated under the
direction of golf architect Robert Trent Jones, Jr.
The Golf Course is a City of Palo Alto General Fund operation. All excess revenues or shortages
are returned to the City'S General Fund. The Golf Course currently generates sufficient revenues
to support debt service, direct and indirect expenses, and City cost plan charges. There is no
reserve or replacement fund for the Golf Course, consequently; additional debt service is taken
on by the Golf Course when new capital improvement needs arise. The debt service for the
Certificates of Participation, which represents approximately $570,000 annually, will be fully
retired in June 30, 2018.
CMR 382:10 20f8
Presently, the City has entered into both a Golf Professional management agreement and a Pro
Shop lease agreement with Brad Lozares (Lozares) for golf operations. As a result of Internal
Revenue Services (IRS) debt issuance limitations, the management agreement and the lease for
the building are separate contracts. The management agreement includes the following
responsibilities: reservations; green fees collection; starting; and marshalling services. The lease
agreement for the building includes: responsibility for managing golf cart rentals; the driving
range; merchandise sales; and instruction services. The Lozares management agreement with the
City for operating the Golf Course expires December 31, 2010. The lease agreement with
Lozares for lease of the building expires in April 2013. The building lease also includes an
. option to extend the term of the concession 10 additional years, if the option is exercised at the
City's sole discretion.
There is also a separate lease agreement with R&T Restaurant Corporation (R&T) for food and
beverage services at the Golf Course. The R&T lease agreement for food and beverage
operations expires April 20, 2018.
Currently Golf Course turf and irrigation maintenance services are provided by CSD's Parks,
Open Space and Golf Division. CSD oversees daily turf and ground maintenance operations that
include coordination of services between the tenants and City maintenance staff in order to
provide a seamless experience for visitors to the Golf Course. The Real Estate Division of the
Administrative Services Department oversees tenant leases. The Club House and Pro Shop
building maintenance (exterior) and janitorial services are provided by the City'S Public Works
Department, Facilities Management Division.
In 2007, the City Council authorized staff to proceed with an operational analysis of the Golf
Course. The operational analysis was conducted by Economics Research Associates (ERA)
(Attachment A), and provided information on the Bay Area golf market and conditions of the
Golf Course facility; and the current and alternative operating models available for the Golf
Course.
The ERA study was presented to the City Council on November 17, 2008 (CMR: 446:08;
Attachment D). The study concluded that, despite a Bay Area wide decline in golf play, the Golf
Course performance has been relatively strong when compared with similar municipal facilities
in the market area. The recommendations to sustain the long-term viability of the golf course
program from the staff report are summarized below:
1. Retain a golf course design consultant to work with the JPA and the City's staffs to
design an environmentally friendly flood control project that will balance flood control
and recreational use solutions and also benefit the Golf Course.
2. Recalculate the Cost Plan allocation for the Golf Course to a more traditional golf
course operation allocation. This would allow for excess funds to be set aside to
establish a replacement reserve to fund ongoing minor capital improvement andlor
more intensive maintenance.
3. Align the two tenant leases and management contract so they expire concurrently. This
would allow consideration of other, potentially more effective and efficient, operating
options and a smoother transition of operation, should that be deemed advantageous in
the future.
CMR 382:10 30[8
4. Commit to a plan of cost-neutral capital improvements to ensure the Golf Course
remains competitive. That is, proceed with improvements that are economically
justified by increased net operating income stemming from the improvements.
5. Direct Community Services and other relevant City staff to work in cooperation with
the labor union to further evaluate the advantages and disadvantages of private versus
public maintenance.
Since the 2008 Golf Course study was presented to Council, the Golf Course has continued to
experience a decline in annual rounds of play from 74,000 in 2008, to· 72,000 in 2009, and to
68,500 in 2010. In order to keep the Golf Course financially viable budget cuts were made in
2009 and 2010 that continued to erode the resources available for the City-operated maintenance
program. Although the Golf Course managed to end FY 2010 with net revenues of $77,000, this
was achieved with a 40% reduction in staff, which is less than the level of staff needed to
provide comprehensive quality Golf Course maintenance.
As the FY 2011 budget process began, it became clear the City needed to make significant
structural budget reductions to the General Fund with an anticipated deficit of $7.3 million. As
CSD considered alternatives for budget reductions, . the "contracting out" of Golf Course
maintenance services was recommended, not only for the potential cost savings, but also to
return maintenance levels to a standard that allows the Golf Course to remain competitive with
the objective of increasing golf rounds, which has been compromised through numerous years of
program budget cuts.
Staff recommends the approval of a Golf Course maintenance services agreement with
ValleyCrest and replacing in-house maintenance staff with contract personnel. Below, staff will
provide information on the process that was used to arrive at this recommendation and will
discuss the progress and current thinking on the other recommendations listed above, stemming
from the ERA Golf Course study.
DISCUSSION
The process for exploring "contract out" Golf Course maintenance services began in spring 2010
by notifying SEIU of the City's intent to explore contract maintenance services for the Golf
Course. The City and SEIU engaged ina discussion about the City'S financial challenges and
rationale for the need to consider an alternative service delivery for Golf Course maintenance.
Although some ideas were discussed to mitigate the need for contracting out Golf Course
maintenance, such as a regional golf course maintenance agreement between several neighboring
cities, this suggestion was deemed by the City to be financially infeasible.
CSD staff prepared a detailed scope of service, with input from several other City departments
including Public Works, Utilities and Administrative Services (ASD). The Request for Proposal
(RFP) was released in June. A mandatory pre-solicitation meeting was held at the Golf Course
which included a tour of the Golf Course that allow all interested parties to walk the Golf Course
and ask specific questions during the hole-by-hole walk. Five potential bidders attended the pre-
bid meeting. Four proposals were received in August when the responses to the RFP were due.
CSD assembled an evaluation panel to evaluate the proposals. The eight member panel included
members of the Golf Advisory Committee, CSD Director, Palo Alto's Golf Course
CMR382:10 40f8
Superintendent, Recreation Division Manager and the Parks, Open Space and Golf Division
Manager. The stated RFP criteria used to evaluate the proposals were:
A. Quality and completeness of proposal;
B. Qualifications & experience of proposer in providing Golf Course Maintenance
Services as stated in this RFP; including experience and qualifications of project
manager & key staff to be assigned to project;
C. Similar experience and expertise in the type of work required, with the City, or with
other municipal golf courses or private golf courses;
D. Demonstrated understanding of the scope of services requested, timeframes,
scheduling ability, ability to provide back up or follow up services, if needed;
E. References/Financial stability of Firm; and
F. The Cost to the City.
Of the four proposals, based on the RFP criteria above, two were determined by the evaluation
panel as more responsive to the RFP. The proposals were submitted by Lozares and ValleyCrest.
Both companies were invited to interview with the panel; the interviews occurred in September.
At the conclusion of the interviews each company was asked to provide a Best and Final
proposal with an emphasis on reducing overall costs with minimal or no impact to the scope of
services defined in the RFP. The "Best and Final" offers were received in mid September.
Concurrently, reference checks were made and, where feasible, site visits were conducted to
evaluate maintenance levels at other golf courses maintained by the firms.
At the conclusion of the RFP process ValleyCrest was unanimously determined by the
evaluation panel to have provided the most complete responsive proposal and thereby it
recommended ValleyCrest as the party to provide private Golf Course maintenance services to
the City. The factors that weighed most heavily on the ValleyCrest recommendation was the
depth of experience exhibited by ValleyCrest and the proposed overall cost savings, which is
approximately $300,000 below the Lozares' "Best and Final" proposal, and" approximately
$500,000 below what it would cost the City to continue Golf Course maintenance services in-
house over the 30-month term of the proposed contract. Furthermore, the ValleyCrest
management team displayed a commitment to customer service and high quality maintenance
that the City desires for the Golf Course. ValleyCrest is very interested in working closely with
the City'S water quality control program, environmental goals and the IMP program. ValleyCrest
brings a wealth of knowledge and expertise in horticulture and agronomy that staff believe will
serve the City well as we continue push the boundaries toward excellence in Golf Course
maintenance, sustainability and environmental conservation.
ValleyCrest Golf Course Maintenance is one of five operating divisions of the ValleyCrest
Holding Co. and Subsidiaries. It is the country's largest horticulture maintenance, golf course
maintenance and construction company. ValleyCrest currently maintains over fifty golf
CMR 382:10 50f8
properties located in California, Texas, Florida, Georgia, North Carolina, South Carolina,
Pennsylvania, New Jersey, Massachusetts and Michigan.
Furthermore, ValleyCrest is open and enthusiastic to providing displaced City Golf Course
maintenance staff with an opportunity to join the ValleyCrest Company. Staff was very
encouraged to hear this and will work with ValleyCrest to connect displaced employees with
ValleyCrest. Of the seven regular staff affected by contracting out Golf Course maintenance four
have already made the decision to retire, one has found other employment, and one has bumping
rights per the SEIU labor agreement with the City and will move to the Parks, Open Space and
Golf division of CSD, The remaining staff member will be laid-off as of November 1, 2010;
however, staff is hopeful that a vacancy may emerge in the Parks Open Space and Golf division
over the next month that will provide an opportunity for a transition.
As CSD staff will need to maintain the Golf Course until the effective date of the transition to
ValleyCrest, the proposed negotiated sale of City-owned Golf Course maintenance equipment to
ValleyCrest is preferred for the effective and efficient transition from public to private
maintenance. The City'S Public Works fleet management staff valued the existing Golf Course
equipment, staff then negotiated a fair and reasonable price with ValleyCrest, which has agreed
to pay $125,000 for all major equipment.
As described in the contract (Attachment B), ValleyCrest will occupy the Golf Course
maintenance yard and facilities therein to deliver the Golf Course maintenance services. The City
Attorney's office, ASD Budget and Purchasing Divisions together with Risk Management
provided support in drafting the contract, including review and approval of the occupancy terms
and insurance requirements for use·ofthe City facilities and property.
A third party furniture, nxtures and equipment consultant will be retained by the City to
determine the fair market value (FMV) of all other minor items (tools, supplies and materials)
that remain at the Golf Course maintenance yard. ValleyCrest has agreed to pay for the
remaining items based on this FMV independent furniture, fixtures and equipment consultant's
valuation. This will be completed on or before November 1,2010.
Discussion of Related Golf Course Issues
The topics below relate to the staff recommendations from the 2008 ERA Golf Course study,
summarized on page 3 of this staff report and in CMR: 446:08 Operational Analysis of the City
of Palo Alto Municipal Golf Course (Attachment D) The action items before Council at this time
is the recommendation refer items 1 and 2 below to the Finance Committee for further
discussion.
1. San Francisquito Creek Joint Powers Authority -Flood Control
The Council has requested that the JP A retain a golf course design consultant to work with the
Joint Powers Authority and City staff to design an environmentally friendly flood control project
that will balance flood control and recreational use solutions and that will also benefit the Golf
Course. The JPA has been very supportive of the City's need for fair and reasonable mitigation
measures to the Golf Course for levee improvements; the impact to the Golf Course will include
the need to re-design 4 to 6 holes due to levee realignment and encroachment onto the Golf
Course. The JP A hopes to begin work in summer 2011, but the likelihood of this occurring is
CMR 382:10 60f8
unknown at this time. The impact and related mitigation to the physical impacts to the Golf
Course is moving in a positive direction and staff is confident that a workable win/win design
will be developed. However, the loss of City revenue during the levee reconstruction is difficult
to quantify. Staff does not have a specific recommendation to mitigate expected lost revenues at
this time but does want to bring this issue to the Council's attention and ask that this issue be
referred to the Finance Committee. A possible mitigation to consider is to seek additional and
more comprehensive Golf Course design and planning beyond mitigating for the golf holes
impacted by levee realignment. For a point of reference, during the major capital improvements
at the Golf Course in 1998-99 the City experienced a 25% reduction in annual play; such a
reduction today would translate to $500,000 annually in lost revenues. Staff is working with the
JP A to explore appropriate mitigations as the timeline and levee design work progresses and look
forward to discussing options with the Finance Committee.
2. Golf Course Infrastructure Reserve
Regarding the revision of the Cost Plan allocation for the Golf Course to a more traditional golf
course operation allocation will occur with the reduction of 7 Full Time Equivalent (FTE) to .45
FTE staff previously dedicated to the in-house Golf Course maintenance operation, as city Cost
Plan is allocated based on FTE. The result of the Cost Plan revision, coupled with the lower
overall cost of private Golf Course maintenance, will be a positive cash flow for the Golf Course,
if annual rounds played hold steady at 68,000 or more. It is recommended that revenues above
and beyond the cost of operating the Golf Course be considered for a infrastructure reserve for
ongoing capital improvement needs for the Golf Course. This recommendation aims to reduce
the need for debt when the 1998 bond debt of $570,000 annually expires in 2018. The Golf
Course Advisory Committee believes creating an infrastructure reserve, paid for by the golfing
community, as a very important step for the long-term financial health of the Golf Course. Staff
recommends that this item also be referred to the Finance Committee for further discussion
Other related items for that staff would like Council to be aware of are:
3. Aligning Golf Course Contracts -Food and Beverage, Professional Services, Golf Course
Maintenance and Pro Shop
The recommendation to align the two tenant leases and management contract at the Golf Course,
so they will expire concurrently, remains a staff recommendation. Specifically alignment of
contracts would allow consideration of other, potentially more effective and efficient, operating
options and a smoother transition of operation, should that be deemed advantageous in the future.
The ValleyCrest maintenance contract is strategically aligned with the existing lease agreement
with Brad Lozares for operating the Pro-Shop. Moreover, staff intends to bring an extension of
the existing management agreement with Lozares to the Council before the end of 2010 to align
the management agreement with the Pro-Shop Lease and the proposed ValleyCrest maintenance
agreement expiration date. This would result in 3 of the 4 Golf Course contracts to expire at the
same time, April 2013. The lease' with R&T Restaurant Corporation, who operates the Bay Cafe,
has a term that expires in 2018; options for re-aligning this lease with the other three Golf Course
contracts is also being considered.
4. Capital Improvement
Lastly regarding the recommendation to commit to a plan of cost neutral capital improvements,
to ensure the Golf Course remains competitive, the only CIP improvements recommended at this
CMR 382:10 70f8
B, The City has set aside the sum of ()ri¢~fhind£et'tEighiYFiVe:Th~ousfujah)61i~s($i8510Dd.nn) 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 reimburs<tble
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
B 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: Joseph
Vallaire, Golf Course Superintendent, Community Services Dept., Parks and Golf Division, Telephone:
650-329-2175. 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.
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 6 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.
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
2 Rev. January JI, 2010
C:\Documents and Settings\esolhei\Local Settings\Temporary Internet Files\OLK34\C 11136681 Contract Draft Document (2).doc
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. T AXES 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, including the storage facility
located on site, made available to Cdntractor by CITY for use during Tertnof Agreemeht at no Cost.
CONTRACTOR shall maintain the building to a minimum of the same condition as when CONTRACTOR
took occupancy. 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 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
3 Rev. January 11,2010
C:\DoclIments and Settings\esolhei\Local Settings\Temporary Internet Files\OLK34\CI I 136681 Contract Draft Document (2).doc
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 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
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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 financial
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-APPROPRIA TION. 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.
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.
IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement
on the date first above written.
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CITY OF PALO ALTO
City Manager or Designee
(Required on contracts $85,000 and over)
Approved as to form:
Senior Assistant City Attorney
V ALLEY CREST GOLF COURSE
MAINTENANCE, INC.
By ____________________________ ___
Name --------------------------------
Title ----------------------------------
Telephone: ______ ..,..-__ ---, ______________ _
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NOTE: Any and all references to the role or duties of the Golf Services Manager
(GSM) do not relieve the Contractor of any obligation to maintain the golf courses
in conformance to the specifications outlined.
1.1 SAFETY
1.1.1 The Contractor agrees to perform all work outlined in these specifications
in such a manner as to meet all accepted standards for safe practices
during the maintenance and operation and to safely maintain 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 local, County, State or other legal requirements,
including but not limited to full compliance with the terms of the applicable
OSHA and CAL OSHA Safety Orders, and at all times protecting all
persons, including operator's employees, vendors, members of the public
or others from foreseeable injury or damage to their property. The
Contractor shall identify and inspect all potential hazards at said areas
under maintenance and keep a log indicating date inspected and action
taken.
1.1.2 The Contractor shall ensure all required certifications and training
methods are adhered to and current.
1.1.3 For the safety of the public and contracted employees, the Contractor
shall adhere to all handling and use requirements for pesticides,
chemicals and fungicides used within the scope of these services. The
use of hazardous pesticides or chemicals will require proper certification of
applicators. Notices will be prominently posted in public areas for the use
of hazardous chemicals or pesticides.
1.1.4 When performing work, the Contractor shall make every effort to keep
sidewalks, vehicle travel lanes and driveways open at all times, and honor
golf etiquette by performing maintenance tasks within acceptable golf play
conditions.
1.1.5 It shall be the Contractor's responsibility to inspect and identify any
condition(s) that renders any portion of the areas under maintenance
unsafe, as well as any unsafe practices occurring thereon. The GSM shall
be notified immediately of any unsafe condition that requires correction.
The Contractor shall be responsible for making corrections, including but
not limited to filling holes and replacing valve box covers so as to protect
golfers and other members of the public from injury. The Contractor shall
cooperate fully with the City in the investigation of any accidental injury or
death by the public, the Contractor, or its employees, agents and
representatives, or any other entity occurring in the contracted areas,
including a complete written report thereof to the GSM within twenty-four
(24) hours following the occurrence.
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1.2 PROTECTION OF PROPERTY
1.2.1 During Periods of Inclement Weather:
The Contractor will provide supervisory inspection of the golf course
during regular hours to prevent or minimize possible damage. The
Contractor shall submit a report identifying any storm damage to the GSM
attached to a site map identifying location of damage. The Contractor's
workforce shall continue to accomplish work not affected by such weather
(i.e. clean-up and facility maintenance, as well as work caused by the
inclement weather).
1.2.2 The Contractor shall exercise due care during the performance of work in
protecting from damage all existing facilities, structures and utilities both
above surface and underground the City's property. Any damage to City
property deemed to be caused by the Contractor's neglect shall be
corrected and paid for by the Contractor at no cost to the City.
1.2.3 If the City requests or directs the Contractor to perform work in a given
area, it will be the Contractor's responsibility to verify and locate any
underground utility systems and for taking reasonable precaution when
working in these areas. Any damage or problems shall be reported
immediately to the GSM.
1.3 INTEGRATED PEST MANAGEMENT.
The City of Palo Alto is a charter signatory to the Bay Friendly Landscape
Declaration and has an award-winning Integrated Pest Management (IPM)
Program (2003 Department of Pesticide Regulation IPM Innovator). The IPM has
been successful in large part to efforts of both the Parks and Golf Divisions to
reduce pesticide use (see 2009 Annual Pest Management Report Attachment 1).
Proposals will be evaluated in part by the Contractor's ability to collaborate with
City staff to proactively and effectively reduce the amount and toxicity of
pesticides in favor of non-chemical controls and least-toxic products when
chemical control must be used.
The goal of the City of Palo Alto's IPM Program is to reduce the amount and
toxicity of pesticides used on City property in order to protect water quality and
human health and to avoid ecotoxicity; ecotoxicity is defined as toxicity to birds,
fish, bees, and aquatic indicator species, and potential secondary or non-target
poisoning from consumption of rodent baits based on product Material Safety
Data Sheets (MSDS) and other resources. 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 and optimizing
habitat to reduce pest development, selecting pesticides with the least toxicity to
humans and non-target organisms and applying pesticides only as a last resort.
Toxicity levels are based on criteria used in the City's Pesticide Tier Review
Methodology Attachment 2);
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The followl!la IPM provisions must be met:
.The Contractor must work closely with the GSM and the City's IPM
Coordinator (IPMC) to achieve annuallPM goals which strive to
reduce the amount and toxicity of pesticides that are used while
maintainin the health and aesthetics of the
b. Within 30 days of the contract award and annually on the
anniversary of this Agreement, the Contractor shall submit to the
GSM and the City's IPMC, an Integrated Management Plan that
complies with the City of Palo Alto's IPM Policy. The plan shall be
reviewed annually for updates and modifications. Frequent and
thorough site inspections on foot will be needed to ensure no major
fungal or insect infestations occur.
c. Fungicides, insecticides and herbicides will be approved prior to
use by the GSM with the IPMC consultation. New pesticides may
not be used without prior authorization. Pesticides will be selected
in accordance with the City's goal to minimize the use of ecotoxic,
"Tier 1 JJ pesticides and the total amount of pesticides (active
ingredient) as defined in the City's annual pest report.
d. The Contractor must maintain any pre-existing IPM strategies used
at the golf course unless otherwise determined by the GSA in
consultation with the IPMC.
e. Reduction of Tier 1 fungicides has been a key component of the
Golf Course reducing its pesticide toxicity. When use of fungicides
is necessary, Tier 2 fungicide use must be maximized prior to the
use of Tier 1 fungicides. If Tier 1 fungicides must be used, then Tier
. 1 fungicides that are not ecotoxic (a subset of Tier 1 pesticides)
must be used first. See Attachment 3 for a list of current fungicides
that are used including the preferred Tier 2 products. The City's
Environmental Compliance Program will provide technical
assistance in determining product toxicity and Tier rankings.
f. The City reserves the right to disallow any pest control measure
that it determines may jeopardize the health and safety of people or
the environment or which conflicts with the intention of the City's
IPM policy.
g. Rodent control will be performed by trapping. Baiting or fumigant
use is prohibited unless authorized by the GSM in consultation with
the IPMC. Trapping will be performed using devices that are .
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The Contractor is responsible for obtaining all required permits and maintaining
the required usage documentation and to comply with all requests from the Santa
Clara County Agricultural Department to inspect records, licenses, training
certificates, equipment and storage facilities. All applicable regulations shall be
strictly adhered to, and all required reporting shall be the responsibility of the
Contractor.
1.3.1 Pesticide Application Timing: Pesticides shall be applied at times that
limit the possibility of contamination from weather, irrigation or other
factors. Early morning or evening application shall be used when possible
to avoid contamination from drift. If applicable, drift control skirted booms
must be used when golfers are present if applicable. Small backpack
applications may be performed based on weather protection and with
provisions made for the safety of golfers. Applicator shall monitor forecast
weather conditions to avoid making application prior to inclement weather
to eliminate potential runoff of treated areas. Irrigation water applied after
treatment shall be reduced to eliminate runoff. When water is required to
increase pesticide efficiency, it shall be applied only in quantities per the
label requirements and of which each area is capable of receiving without
excessive runoff.
1.3.2 Handling of P~sticides: Care shall be taken in transferring and mixing
pesticides to prevent contaminating areas outside the target area.
Application methods shall be used which ensure that materials are
confined to the target area. Spray tanks containing leftover materials shall
not be drained on the site to prevent contamination. Disposal of
pesticides and tank rinsing materials shall be within the guidelines
established in the California Department of Food and Agricultural Code or
EPA regulations.
1.3.3 Equipment and Methods: Spray equipment shall be in good operating
condition, quality, and design to efficiently apply material to the target
area. Avoiding high pressure applications and using water soluble drift
agents will minimize drift.
1.3.4 Recommendations: All pesticide applications shall be in accordance with
written recommendations provided by a licensed Pest Control Advisor
(PCA) with copies of the written recommendations sent to the GSM. A
licensed Qualified Applicator (Qualified Applicator Certificate) shall be kept
on site during application.
1.3.5 Selection of Materials: Pesticides shall be selected from those approved
for golf course use by California Department of Food and Agriculture and
in compliance with Section 1.3 listing prohibited pesticides.
1.4 SOUND CONTROL REQUIREMENTS
1.4.1 The Contractor shall comply with all local sound control and noise level
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provided to. the City's centract manager.
1.6.2 Whenever immediate actien is required to. prevent impending injury, death
er property damage to. the facilities being maintained, the City may after
reasenable attempt to. netify the Centracter, cause such acticn to. be taken
by the City werk force and shall charge the full cest thereef to. the the
Centracter.
1.6.3 All cemplaints shall be abated as scen as pessible after netificatien to. the
satisfactien ef the City. If any cemplaintis net abated within a reasenable
time, the City shall be netified immediately ef the reascn fer net abating
the cemplaint, fellewed by a written repert to. the GSM within three (3)
days.
1.6.4 Menthly gclfer surveys will be cenducted, gelfer satisfactien efgelf ceurse
cenditiens indicating geed cr excellent is expected frem 80% er mere ef
respenses.
1.7 MAINTENANCE EMPLOYEES/UNIFORMSNEHICLES
1.7.1 Empleyees: A designated full-time Class "A" Gelf Superintendent and
Mechanic must be assigned full time at the gelf ceurse. Also. an English-
speaking superviscr, who. is fully trained in all maintenance
respensibilities, must be en-site at all times while werk is being perfermed
at the Pale Alto. Gclf Ceurse. The Centractor shall provide to. the City,
upen cemmencement ef agreement, all Jeb Classificatiens and Jeb
Descriptiens for duties, respensibilities and services to. be perfermed at
gclf ceurse as described in the agreement.
The Centracter may use temperary empleyees in case ef absences or
emergencies if these emplcyees are trained in gelf ceurse maintenance,
etiquette, and are in uniform so. that we maintain set standards.
All maintenance empleyees shall present a neat, well-greemed
appearance at all times.
Empleyees shall act in a ceurteeus, professienal manner at all times.
Every effert shall be made to. perferm the werk while creating minimum
disturbance to. the gelfers. Any empleyee who. is determined by the G8M
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1.8 THE CITY'S RIGHT TO DO WORK I
The City reserves the right to do work as required within the contract area.
The work referenced herein may include but is not limited to capital
improvements and/or alterations intended to improve golf course facilities
and infrastructure. If such projects materially affect the cost to meet the
requirements of the agreement, the Contractor will be asked to submit
justification to support the additional costs. The Contractor and the City
will review the justification in order to consider modifications to the
Financial Conditions of the agreement.
2.0 / SPECIFIC MAINTENANCE REQUIREMENTS
2.0.1 The Contractor shall notify the City prior to use of a sub Contractor on the
golf course. All sub Contractors shall have appropriate insurance and
safety requirements and shall be trained in golf course etiquette
procedures prior to any work being performed.
2.0.3 All golf course related pJans are property of the City and use is restricted
to premises. The Contractor shall make copies as required to ensure the
original s~t of plans remains in good condition.
2.0.4 The Contractor shall perform any required maintenance activities, such as
but not limited to ropes, stakes, traffic control, turf aerification, and
overseeding as a result of golf cart use on the course.
2.0.5 The Contractor shall meet weekly with the golf professional to coordinate
golf events and maintenance activities.
2.1 MAINTENANCE RECORDS
The Contractor shall provide the GSM with a written schedule of the work
to be performed during the following month which includes but is not
limited to: general golf course maintenance, aerification, tree trimming,
pond maintenance, herbicide/insecticide application, fertilization and
replacement of color plants. The report shall be provided in a format
developed by The Contractor and City and approved by the GSM. If the
Contractor finds that it is not possible to maintain the submitted schedule,
the GSM shall be advised and a revised schedule submitted.
2.1.1 The Contractor shall maintain and keep current a log that records all on-
going, seasonal and additional work, and maintenance functions
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performed on a daily basis by the Contractor's personnel. Said report shall
be in a form and content acceptable to the GSM and shall be submitted to
the City concurrent with the monthly invoicing. The monthly payment will
not be made until such report is received by the City.
2.2 TREES
2.2.1 Trees trimmed as needed. All tree trimming shall be performed on a
schedule approved by the GSM and in accordance with the tree, shrub
and other wood plan maintenance pruning practices outlined by the
American National Standards Institute, Inc. (ANSI) and International
Society of Arboriculture (ISA) BMP standards. However, such trimming
and pruning is a minimum level and shall not relieve the Contractor of
other responsibilities set forth herein. The Contractor shall consult with the
City's Managing Arborist on issues concerning the removal or treatment of
trees at the Golf Course.
2.2.2 Trees shall be kept in healthy condition and pruned as required to remove
broken or diseased branches. The Contractor shall develop a pruning
program, which will promote proper tree scaffolding, strength, and
appearance consistent with its intended use. The Contractor shall prune
trees to allow wind to pass thro,ugh the tree, reducing and preventing a
"sail" effect when needed.
2.2.3 Trees located adjacent to vehicular and/or pedestrian traffic ways shall be
maintained so as not to obstruct vehicle and/or pedestrian visibility and
clearance. Trees interfering with airport tower vision must be trimmed and
lowered as needed.
2.2.4 Fertilization shall be scheduled as often as required to keep trees in a
healthy and desirable condition per soil analysis and identification of
nutrient deficiencies as outlined in the pruning specifications. Avoid
applying fertilizer to root ball or base of main stem; instead spread evenly
in area of drip zone.
2.2.5 Tree stakes, ties, and guys shall be checked and corrected as needed.
Ties will be adjusted to prevent girdling. Remove unneeded stakes, ties,
and guys as required. Re-stake trees as required using lodge pole stakes.
2.2.6 Prune trees along sidewalks and cart paths to-allow a ten (10) foot
clearance for pedestrians and golf carts and fifteen (15) feet above curb
and gutters for vehicular traffic.
2.2.7 Ailing or stunted trees which fail to meet expected growth will receive
additional nutrient treatments to correct any deficiencies. Terminally
diseased trees are to be removed per the City's removal policy and
procedures.
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2.2.8 Surface roots, which become maintenance or appearance problems, will
be removed or additional soil and sod cover shall be placed as required to
prevent damage to adjacent areas, mowers and golf carts. No weed whip
marks or herbicides around exposed roots or trunks.
2.2.9 Any trees that are blown over shall either be removed and replaced or
topped and righted at the Contractor's expense.
2.2.10 The Contractor shall develop a Tree Management Plan within six (6)
months of commencement of the Agreement, approved by the GSM, for
maintenance of existing trees, removal of dead or diseased trees, and
replacement of aging trees. The Plan will be reviewed by the City's
Managing Arborist for comments and amendments before being accepted
by the City.
2.2.11 Any dead tree at no fault to" the Contractor shall be removed (with the
City's prior approval), including stump grinding and repair of such area at
the Contractor's expense.
2.2.12 Any dead tree at fault of the Contractor shall be removed (with the City's
prior approval) and replaced per the City Tree Ordinance at the
Contractor's expense.
2.2.13 The Contractor shall plant and care for up to 50 new trees each year of
the contract. Trees will be provided by the Contractor. Salt tolerant trees,
recycled water tolerant, wind breaks, maximum height requirements
(airport) will be considered when selecting trees.
2.3 SHRUBS
2.3.1 Prune shrubs to retain as much of the natural informal appearance as
possible.
2.3.2 Shrubs used as formal hedges or screens shall be pruned as required to
present a neat, uniform appearance.
2.3.3 Remove any spent blossoms or dead flower stocks as required to present
a neat, clean appearance.
2.3.4 Plants growing over curbing and/or sidewalks shall be trimmed on a
natural taper rather than vertical so as not to appear to be hedged.
2.3.5 Schedule the application of a commercial fertilizer as often as required to
promote optimum growth and healthy appearanceto all shrubs.
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2.3.6 Any plant requiring removal shall be replaced by the Contractor.
2.4 GROUND COVER -NATIVE GRASSES
2.4.1 Apply all chemical control (e.g. pesticides) as required and in
conformance with the Golf Course Integrated Pest Management Plan that
will be approved each year (page 6; section 1.3) to control or prevent pest
infestations to protect ornamental plantings.
2.4.2 Trim ground cover adjacent to walks, walls and/or fences as required for
general containment to present a neat, clean appearance.
2.4.3 Cultivate and/or spray herbicide to remove broad-leafed and grass weeds
as required (and in conformance with the Golf Course Integrated Pest
Management Plan that will be approved each year (page 6; section 1.3).
Shrub beds shall be maintained in a weed free condition.
2.4.4 Keep ground cover trimmed back from all controller units, valve boxes,
quick couplers, or other appurtenances or fixtures. Do not allow ground
covers to grow up trees, into curbs, or on structures or walls. Keep
trimmed back approximately 4 inches from structure or walls.
2.4.5 Fertilization: Schedule fertilization of all ground cover areas with a
commercial fertilizer as often as required to promote healthy appearance.
Any fertilizer or chemicals must be applied is strict adherence with
manufacturer's directions to avoid contamination of waterways or
disturbance of natural resources. Fertilizers that contain pesticides must
be reported to the IPMC on the Contractor's Pesticide Application Form.
2.4.6 Ground cover plants shall be added as needed to ensure a solid mass
planting in conformance with the original intent.
2.5 PEST CONTROL ON PLANTS
2.5.1 The Contractor shall provide complete and continuous control and/or
eradication of all plant pests or diseases in conformance with the Golf
Course Integrated Pest Management Plan (page 6; section 1.3).
2.5.2 The Contractor shall supply the proper chemical designated for the pests
to be controlled. Any pesticides or chemicals must be applied in strict
adherence with manufacturer's directions to avoid contamination of
waterways or disturbance of natural resources and be in conformance with
the Golf Course IPM Plan that will be approved each year.
2.5.3 The Contractor shall obtain all necessary regulatory permits and assume
responsibility for the use of all chemical controls.
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2.6 IRRIGATION SYSTEM:
The Contractor will assume all responsibilities for maintenance and repair
of all 2 inch and smaller pipe and all components of the irrigation system
such as sprinkler heads, valves, valve boxes, restraints, gaskets, swing
joints, quick couplers, saddles, electrical, controller satellites, and
hardware of the Palo Alto Golf Course irrigation system. All expenses for
parts and labor will be paid for by the Contractor. When replacing steel
nuts and bolts the Contractor will use only highest grade stainless steel.
All components will be replaced with same manufacture and models as
components being replaced unless otherwise approved by GSM.
2.6.1 EFFICIENT USE OF WATER:
2.6.1.1 Considerations must be given to soil texture, structure, porosity,
water holding capacity, drainage, compaction, precipitation rate, run off,
infiltration rate, percolation rate, evapotranspiration, seasonal
temperatures, prevailing wind condition, time of day or night, type of grass,
plant and root structure. This may include syringing during the day and
watering during periods of windy weather.
2.6.1.2 The Contractor shall be responsible for daily monitoring all systems
within premises and correcting for coverage, adjustment, clogging of lines
and sprinkler heads, removal of obstacles, including plant materials which
obstruct the spray.
2.6.1.3 The soil moisture content on greens, tees and fairways shall be
checked regularly and appropriate adjustments made. Adequate soil
moisture shall be determined by visual observation, plant resiliency, and
turgidity, examining cores removed by soil probe, moisture sensing
devices and programming irrigation controllers accordingly.
2.6.1.4 The Contractor shall observe and note deficiencies occurring from
the original design of facilities and review these findings with the GSM so
necessary improvements can be considered.
2.6.1.5 All leaking or defective valves, lines, sprinkler heads, and quick
couplers shall be repaired within twenty-four (24) hours at the expense of
the Contractor. A report of such repairs shall be given to the GSM weekly.
2.6.1.6 The Contractor shall turn off all controllers when it is not necessary
to irrigate due to adequate rainfall.
2.6.1.7 The Contractor shall monitor reclaimed water and potable water.
Reclaimed water shall not exceed 65% and potable water costs shall not
exceed $250,000. The Contractor shall notify GSM if these costs exceed
$225,000. As conditions dictate GSM may approve additional potable
water use.
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2.6.2 SYSTEM MAINTENANCE
The Contractor is aware of the current state of the golf course irrigation
system and accepts full responsibility for the repair and maintenance of
the system as is. Any required replacements, repairs, and maintenance to
existing components of the system to ensure the system remains in
operation are the sole responsibility of the Contractor. Appropriate
personnel shall be trained in the use of the master irrigation computer.
2.6.2.1 All controllers are to be kept pest-free, clean and visible. All parts and
repairs necessary to maintain the operation are the responsibility of the
Contractor.
2.6.2.2 The computer and software (including annual service agreements)
necessary to operate and maintain the irrigation control systemshall be
maintained by the Contractor. The Rainbird Support Agreement shall be
kept current at all times. Computer and Controller information will be
properly kept.
2.6.2.3 Any repairs made by the operator shall be made in accordance with the
industry standards and conforming to all related codes and regulations.
2.6.2.4 The Contractor shall be responsible for adjusting the height of sprinkler
risers necessary to compensate for growth of plant materials.
2.6.2.5 Automatic controllers and/or enclosures shall be locked while
unattended.
2.6.2.6 All controller enclosures must be painted or replaced as needed to
maintain a good appearance.
2.6.2.7 Sprinkler heads and valve boxes shall be kept clear of overgrowth which
may obstruct maximum operation. Missing or broken valve boxes will be
replaced by The Contractor.
2.6.2.8 Repairs and/or upgrades made to the irrigation system must be made in
accordance with the system's original design with products equal to or
higher quality than currently provided.
2.6.2.9 The GSM should be notified regarding any interruption of water service
to the golf course.
2.6.2.10 All irrigation repairs and maintenance including, but not limited to,
sprinkler heads, piping, fittings, valves, controller boxes, controller
supplies, and controller face plates must be performed utilizing the same
manufacturer and type of product as existing materials. Any change to
existing materials must have prior approval by the GSM.
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prior approval of the GSM. All grass clippings must be collected and
removed from the site during each mowing operation, including dispersed
in a method to prevent unplayable conditions. Greens must be mowed,
and rolled if performed, prior to first golfer of day reaching each respective
green, including the putting green. Care will be given on clean-up lap
mowing to reduce turf loss and playability.
2.11.2 Ball cups are to be relocated daily to USGA Standards to enable worn
turf spots to recover. Putting green cups to be changed every other day.
Hole positions will be rotated using front, middle, and back locations for
each three hole sequence. Pin placement shall be in healthy turf area
according to rotation plan. Hole plugs set at proper grade.
2.11.3 Verticutting of greens shall be scheduled bi-weekly or more including
double verticutting during periods of active turf growth. Each verticutting
shall be at 90 degrees to the previous cut. Verticutting activities should
match the agronomic requirements of plant growth. This function shall
be coordinated to compliment the aerification and topdressing schedules.
Combing or brushing may also be done. Verticut depth should be
appropriate to playing conditions and agronomic needs. If play
conditions are such that greens are not smooth for ball roll (bumpy), the
Contractor shall utilize verticutting and other agronomic methods to
improve golf ball roll.
2.11.4 Aerify greens at least two (2) times per year in spring, either March or
April, and fall, either September or October, or more frequently if needed.
Plugs will be removed the same day. Aerification shall be carried out
with a minimum of interference to play. Aerification shall be scheduled at
least 6 months in advance with the GSM and golf professional. All
aerification hole sizes with a minimum of 5/8 inch hollow tine utilized, and
spoil locations shall be pre-approved by the GSM. Aerification holes shall
penetrate to a depth of three inches. Care should be taken to have as
minimal disturbance to green surface from manual and equipment
applications during aerification process. Aerification of greens for
agronomic purposes, other than annual regularly scheduled aerifications,
shall be reviewed and scheduled with the golf professional and GSM to
reduce golfer impact.
2.11.5 Following all annual regularly scheduled aerifications, a topdressing sand
material approved by the GSM shall be applied and brushed into the turf
with follow applications performed as needed. Application shall be done
with an approved topdressing spreader or blown in with walking blowers.
Spot topdressing may be applied to repair damage from ball marks or
any other damage. Light topdressing will be done every two weeks
during the active growth season to maintain turf playability and
agronomic conditions. Turf irrigation requirements shall be adjusted
during process to ensure proper agronomic conditions are met.
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2.11.6 The Contractor shall have the soil analyzed after the start of the term of
the contract and once every year thereafter on dates preapproved by the
GSM. Apply fertilizer and nutrients in the quantity and type
recommended by soil analysis and growing conditions at the time of
treatment and in a manner to provide uniform growth of turf. Under
normal conditions, 0.5 to 1.2 pounds of actual nitrogen per thousand
square feet shall be applied per growing month. Typically, a variety of
granular slow release types of material or liquid sprayable fertilizer may
be utilized. Use of materials to control salt damage and water infiltration
shall be applied to meet the requirements of the turf and playable
conditions. Fertilizer shall be applied every 3-4 weeks during the active
growing season and every five (5) weeks for the remainder of the year.
2.11.7 Treat greens with proper chemicals to control insects, disease, weeds
and other pests in conformance with the City's IPM Plan.
2.11.8 Greens shall be kept free of non-native and/or invasive grasses and/or
broad leaf weeds that tend to creep in from the edges. A threshold level of
0-2% has been set for weeds and disease: Insect threshold has been set
at 0-5%. No foreign grass encroachment from collars.
2.11.9 EC readings should be taken during spring and fall to determine salts
levels and if they are above normal, corrective action taken to reduce to
appropriate levels to promote optimum health of the turf.
2.11.10 Green speed should be consistent daily on all greens with the difference
between the lowest green speed and the highest green speed no more
than one (1) foot in variance on the stimp meter through out golf course.
Green speeds should be no lower than 8 feet in average daily during the
months of May, June, July, August, September, and October, and no
lower than 8 feet 6 inches daily for the other months. Green speeds
should be maintained as high as agronomic conditions and play
conditions allow.
2.11.11 Debris from trees shall be cleared prior to mowing and during day as
needed, no standing water or severe turf loss areas, pest and vandal
damage to be repaired, and bare and stressed areas sodded or plugged
to ensure quality playing conditions.
2.11.12 Ball marks shall be repaired daily.
2.12 COLLARS, APPROACH, BANKS AND GREEN SURROUNDS
Maintain all turf in accordance with playability and industry wide
standards as determined by the GSM observing the following minimum
requirements:
2.12.1 Collars shall be mowed a minimum of two (2) times each week to
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maintain a height of % inch, mowing with a triplex mower.
2.12.2 Green surrounds shall be mowed a minimum of (1) time each week to
maintain a height of 1" to 1-1/4" inch or a height as recommended by the
superintendent and approved by the GSM. If a rotary mower is used, it
shall be specifically designed to prevent scalping of the turf.
2.12.3 Fertilization frequency, types of material, and analysis shall be
determined from results of annual soil nutrient level testing and growing
conditions at the time of treatment. Under normal conditions, 0.50 to 0.75
pounds of actual nitrogen per thousand square feet shall be applied every
6-S weeks during the active growth season and every S-1 0 weeks for the
remainder of the year. Typically combinations of granular slow release
type of materials may be utilized.
2.12.4 Mowing directions should be changed to prevent turf depressions and turf
loss.
2.12.5 Approach shall be mowed a minimum of two (2) to three (3) times each
week to maintain a height of % inch or a height as recommended by the
superintendent and approved by the GSM, cut with a greens-type triplex
mower.
2.12.6 Grass clippings shall be removed and dispersed properly Jo avoid
affecting golf play.
2.12.7 Bunker banks shall be mowed to ensure no rutting occurs and proper turf
heights are maintained. If rutting occurs, areas shall be sodded for repair.
2.12.S Verticutting shall be performed at least two (2) times per year. All other
provisions of section 2.11.3 shall be followed.
2.12.9 Aerify at least two (2) times per year in spring and fall, or more frequently
if needed, and remove plugs the same day~ Aerification shall be carried
out with a minimum of interference to play. Aerification shall be scheduled
each year for the following year in conjunction with the GSM and golf
professional. All aerification hole sizes, with a minimum of 5/S inch hollow
tine utilized, and spoil locations shall be pre-approved by the GSM.
Aerification holes shall penetrate to a depth of three inches. Care should
be taken to have as minimal disturbance to the turf surface from manual
and equipment applications during aerification process. Aerification for
agronomic purposes other than annual regularly scheduled aerifications
shall be reviewed and scheduled with the golf professional to reduce
golfer impact.
2.12.10 Following all annual regularly scheduled aerifications, a topdressing sand
material approved by the GSM shall be applied as needed. Application
shalLbe done with an approved topdressing spreader. Turf irrigation
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requirements shall be adjusted during process to ensure proper
agronomic conditions are met.
2.13 TEE MAINTENANCE
Maintain all turf in accordance with playability and industry-wide standards
as determined by the GSM observing the following minimum
requirements:
2.13.1 Service tees daily by moving tee markers, removing trash and checking
benches and ball washers. Change tee towels and water weekly and
keep ball washers filled to proper level with water and appropriate
cleaning agent. Tee markers shall be moved daily to healthy turf areas,
placed at appropriate direction to play. Tee markers placed in healthy
areas with tee markers set flat to ground and direction of play.
2.13.2 Mow tees two (2) times weekly with reel type mower, with baskets, at
height of 1/2 inch or a height as recommended by the superintendent and
approved by the G8M. All grass clippings will be collected and dispersed
. properly for playable conditions.
2.13.3 Aerify and topdress tees, with sand and mulch pre-approved by the GSM,
at least two (2) times per year, or more frequently if needed, using the
appropriate equipment with the minimum of interference to play.
Aerification shall be carried out with a minimum of interference to play and
plugs removed the same day. Aerification shall be in conjunction with the
golf professional and the G8M. All aerification hole sizes, with a minimum
of 5/8 inch utilized, and spoil locations shall be pre-approved by the GSM.
Care should be taken to have as minimal disturbance to tee surface from
manual and equipment applications during aerification process. Bare
areas sodded and leveled.
2.13.4 Fertilization frequency, materials and analysis shall be determined from
results of annual soil nutrient level testing and growing conditions at the
time of treatment. Under normal conditions, 0.50 to 0.75 pounds of actual
nitrogen per thousand square feet shall be applied every 6-8 weeks during
the active growth season and every 8-10 weeks during the remainder of
the year. Typically combinations of granular slow release type of
materials may be utilized.
2.13.5 Repair worn and damaged turf areas as they occur by topdressing,
overseeding or resodding to ensure playability at all times. No standing
water or mud holes and pest and vandal damage repaired.
2.13.6 Tees shall be overseeded, with approved perennial rye seed by the GSM,
following aerification and before topdressing at a rate of 9 Ibs. per
thousand square feet of tee area.
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2.13.7 Treat tees for control of insects, disease, weeds and other pests as
necessary to maintain healthy turf. All treatments shall be in compliance
with the City's IPM Plan. A threshold level of 25% has been set for weeds
and disease. Insect threshold is 33%. Spot spraying by location basis
only when thresholds are exceeded.
2.13.8 Trash receptacles are to be emptied daily.
2.13.9 A sand and seed container, approved by the GSM, must be available on
all Par 3 holes, for use in repairing divots. A container must be set at each
respective set of tee markers for each hole. Tee divots shall be filled with
sand and seed at a minimum of once per week on all holes and twice per
week on Par 3 holes.
2.13.10 Sufficient scorecard and pencil supplies shall be kept in stock at the
scorecard station between the No.1 green and the No.2 tee.
2.13.11 Tee yardage plaques, stations and signs shall be maintained and edged
at all times.
2.13.12 Tee station items, such as markers, signs, trash cans, ball washers, etc.
shall be in good condition and repaired or replaced as needed. All tee
station equipment cleaned and painted and ball washers operational.
2.13.13 Recycle trash containers shall be utilized and all recyclable glass, paper,
plastic, aluminum and other recyclable material shall be collected and
turned into appropriate recycle centers.
2.14 FAIRWAY MAINTENANCE
Maintain all fairways in accordance with playability and industry wide
standards as determined by the GSM, observing the following minimum
requirements:
2.14.1 Mow fairway two (2) times weekly at height of 5/8 inch or at a height as
recommended by the superintendent and approved by GSM.
2.14.2 Aerify all fairways at least one (1) time a year. The equipment used to
aerify the fairways shall be Power Take-Off (PTa) or self engine powered
to enable a three (3) to five (5) inch coring depth (John Deere2000
Aercore Aerator or equivalent) utilizing hollow coring, with a minimum of
3/4 inch hollow tine, as recommended by the superintendent and
approved by the GSM and cores shall be removed from the fairways.
Aerification shall'be scheduled in conjunction with the golf professional
and the GSM. All aerification hole sizes and spoil locations shall be
preapproved by the GSM. Care should be taken to have as minimal
disturbance to turf surface from manual and equipment applications during
aerification process. Slicing of the fairways at various intervals is
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recommended to promote turf growth, improve water infiltration, and
improve salt damage.
2.14.3 Overseed all fairways once per year, in fall and at a preapproved date with
the GSM and golf professional, with perenial rye grass, pre-approved by
the GSM, at a minimum rate of 400 Ibs. per acre. All seed shall be slit
seeded into the soil to ensure adequate soil and seed contact. A post
seed application of fertilizer (15-15-15 or equivalent) shall be applied with
four (4) weeks of the overseed process at a rate of one (1) Ib per thousand
of nitrogen. Overseed and topdress (or re-sod) of worn or bare areas of
fairways as necessary.
2.14.4 Treat turf to control weeds, invasive grasses (i.e. Kikuyu), diseases,
insects, and other pests as necessary to maintain fairway threshold level.
A threshold level of 35% for weeds, 50% for disease and 40% for insects
has been set. Spot spraying by location basis as needed when thresholds
are exceeded. All treatments shall be in compliance with the IPM Plan.
2.14.5 A proper fertilizing and nutrient program shall be performed per soil testing
recommendations each calendar year. Fertilization shall be performed a
minimum of every 8-10 weeks during the active growth season and every
10-12 week during the remainder of the year.
2.14.6 Policing to control litter shall be done on a regular basis for the removal of
all paper, leaves, cans, bottles, tree branches, etc.
2.14.7 Excessive turf clippings shall be dispersed by a method of dragging,
baskets, vacuumed or blown to ensure proper playable conditions are
provided. Grounds under repair painted with appropriate white turf paint
and roped off neatly and consistently throughout the golf course. Grounds
under repair include those under repair by the The Contractor and those
areas where turf is at a level that is not consistent with other associated
turf areas. Yardage markers and sprinkler head yardage markers in place
and maintained. Cart traffic management devices in place; bare or
stressed areas properly addressed. No standing water or mud holes.
Pest and vandal damage repaired.
2.14.8 Excessive turf clippings shall be dispersed by a method of dragging,
baskets, vacuumed or blown to ensure proper playable conditions are
provided. Grounds under repair painted with appropriate white turf paint
and roped off neatly and consistently throughout the golf course. Grounds
under repair include those under repair by the The Contractor and those
areas where turf is at a level that is not consistent with other associated
turf areas. Yardage markers and sprinkler head yardage markers in place
and maintained. Cart traffic management devices in place; bare or
stressed areas properly addressed. No standing water or mud holes.
Pest and vandal damage repaired.
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2.15 ROUGHS MAINTENANCE
Maintain all turf in accordance with playability and industry wide standards
as determined by the G8M, observing the following minimum standards:
2.15.1 Mow one (1) time per week at a height of 1-1/2 inches or a height as
recommended by the superintendent and approved by the G8M.
2.15.2 Rodent control and repair as needed. All rodent control shall be in
compliance with the IPM Plan. Pest and vandal damage repaired.
2.15.3 Overseed and topdress (or resod) worn or bare turf areas as necessary.
2.15.4 Fertilization frequency, materials and analysis shall be determined from
results of biannual soil nutrient level testing and growing conditions at the
time of treatment. Fertilization shall be performed a minimum of every 8-
10 weeks during the active growth season and every 10-12 week during
the remainder of the year.
2.15.5 Treat turf to control weeds, disease, insects and other pests as necessary
to maintain rough threshold. All treatments shall be in compliance with the
IPM Plan. A threshold level of 100% for insects and disease. Weed
threshold has been set at 50%. 8pot treatment by location basis only
when thresholds are exceeded.
2.15.6 Grounds under repair painted with appropriate white turf paint and roped
off neatly and consistently throughout the golf course. Grounds under
repair include those under repair by the The Contractor and those areas
where turf is at a level that is not consistent with other associated turf
areas. No standing water or mud holes, hazards properly marked, and
free of debris that affects play.
2.16 OTHER TURF AND MAINTENANCE AREAS
These areas consist of areas not detailed above.
2.16.1 All debris such as litter and branches shall be removed from the course
daily.
2.16.2 All yardage, course markers, ropes and stakes, and signage shall be
straight and damage free, and repaired and replaced as needed.
2.16.3 Any item that is a safety hazard shall be repaired or replaced immediately,
2.16.4 The Contractor shall submit annually to the G8M a written report for the
preceding 12 months detailing annual fertilizer, pesticide, fungicide and
other related applications for the golf course. The report will conform to
the requirements of the IPM Plan (Appendix A).
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2.16.5 The Contractor shall flush drainage inlets once a year.
2.16.6 The Contractor shall utilize wood chipping machinery to produce wood
chips from tree pruning and care. Wood chips may be spread throughout
golf course in preapproved areas by the GSM. No permanent dumping of
course debris such as branches, wood stumps, etc. is approved on the
property. The Contractor is responsible for costs associated with any
removal of debris. Any other course-generated debris such as earthen
spoils shall be dispersed at locations and with methods preapproved by
the GSM.
2.16.7 Turf areas surrounding the clubhouse shall be mowed one (1) time per
week at a height of 1-1/4 inches.
2.16.8 The Contractor shall provide, at The Contractor's sole expense and
liability, an effective goose control program to eliminate goose activities,
including use of control dog, motorized hand controlled boats, noise
makers, and other methods.
2.17 SAND BUNKERS
2.17.1 Sand bunkers shall be cleaned and raked by mechanical method or by
hand a minimum of three (3) times per week with Fridays being one of the
three days. No excess sand buildup on high side.
2.17.2 Sand depth shall be randomly checked monthly for depth of sand and
shall be maintained no less than four inches (4") deep. Additional sand
will be added at the The Contractor's expense.
2.17.3 Turf shall be mechanically edged along sand bunker edges monthly, or
more frequently if required, to ensure a neat appearance. Care shall be
taken to maintain the design outline of the bunkers to insure the integrity
of the bunker shape. Bunkers should have 1" lip on lower side. Chemical
control of sand edges through use of a non-selective herbicide or growth
.regulator around sand bunkers shall be allowed with preapproval of GSM.
2.17.4 Excess sand in the turf surrounding the trap shall be removed on a regular
basis.
2.17.5 A minimum of two (2) to five (5) rakes are to be available, depending on
bunker size, at all sand bunkers at all times. Rakes properly maintained.
(Color and style are subjectto GSM approval.)
2.17.6 Bunker sand shall be cultivated as needed, or at a minimum of once per
month, to ensure sand is not compacted. Methods should be used to not
disturb existing soil below the sand.
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2.17.7 All debris such as pine needles and cones, branches and other debris
shall be removed as needed to ensure playable conditions and reduce
sand contamination. No animal boroughs.
2.17.8 Excessive water ponding and silt accumulated by rain falls and irrigation
applications shall be removed prior to bunker raking.
2.18 CLUBHOUSE AREAS
2.18.1 SHRUB BEDS
2.18.1.1 Clean-up shall occur on a regular basis to ensure that beds are kept
free of trash and debris such as paper, cans and bottles, fallen
branches, excessive leaves and weeds. Mulch in proper areas, beds
to be weed free, properly trimmed, and watered properly; not overly dry
or wet.
2.18.1.2 A fertilizer program shall be a minimum of three (3) applications per
year or as needed for health and color.
2.18.1.3 Spent flowers, leaves, dead or diseased plants, and other landscape
debris shall be removed from plant areas daily, or as required.
Flowers changed by schedule or as needed.
2.18.2 SEASONAL COLOR BEDS
2.18.2.1 Annual flowers in place and healthy and missing plants replaced in
kind and number. All color beds shall be regularly cleared of paper,
bottles and cans, fallen branches, excessive leaves and weeds.
2.18.2.2 Weed control shall be accomplished by hand weeding, mulching, by
the use of mechanical equipment or by the selective use of herbicides.
A prescribed pest control spray program may be done as often as
necessary for pest control in accordance with the IPM Plan.
2.18.2.3 Beds shall be cultivated by mechanical means on a regular basis or as
required, or as directed by the GSM.
2.18.2.4 Color plants shall be replaced a minimum of twice annually and shall
be performed on a schedule submitted to and approved by the GSM.
The replacement plants shall be 4-inch potted size spaced per industry
standards and planted with the appropriate soil amendments.
2.18.3 PERIPHERY AREAS (Including the Planted Traffic Island on
Embarcadero Way)
2.18.3.1 All periphery areas shall be maintained in a manner consistent to
industry standards to ensure a healthy and aesthetically pleasing
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appearance at all times.
2.18.3.2 Areas shall be mowed, weeded, cleared of litter and other debris on a
regular basis (a minimum of once per week). Watering should occur if
the area is covered by the irrigation system.
2.18.3.3 Special attention shall be given to periphery areas adjacent to public
roadways since these areas are highly visible to the general public and
constitute a "first impression" of the overall service level of the course.
2.18,.3.4 All areas are to be inspected for erosion problems and repaired as needed.
2.19 PARKING LOTS
2.19.1 Parking lots shall be maintained in a safe condition for use by both
vehicles and pedestrians, and cleaned each day to ensure a clean, crisp
appearance free from litter, debris, and weeds including all landscaped
planters on or adjacent to the lots (including the traffic island on
Embarcadero Way near the primary entrance to the Golf Course).
2.19.2 All parking lot lighting shall be inspected daily and repaired as needed or
reported to the City's PW Facilities Maintenance Division.
2.19.3 "Disabled Parking" signage and other signage shall be maintained in
accordance with all City, County, and State regulations.
2.19.4 All parking lot signage shall remain in place, maintained and readable.
2.19~5 Parking lot asphalt shall be inspected daily by The Contractor. The City's
PW Facility Maintenance Division shall be called for repairs. Free of
debris, litter, leaves, and trimmings. The Contractor shall inspect and
clean daily.
2.20 GRAFFITI
2.20.1 Golf course shall be inspected dailyfor evidence of graffiti. Special
attention shall be given to restrooms, signs, markers, block walls, curbing,
paving, tees, utility poles/boxes and/or any other structures or fixtures.
2.20.2 All graffiti shall be removed within twenty-four (24) hours of detection.
2.20.3 Graffiti requiring paint over shall be painted over with a color consistent
with that of the original surface.
2.20.4 Graffiti on non-painted surfaces shall be removed by sand or water
blasting and area returned to the preexisting condition.
2.21 CART PATH/STEPS/RAMPSIWALKWAYSI BREEZEWAY
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2.21.1 Cart paths to be swept or blown clear of debris every Friday or more often
as needed. No standing water.
2.21.2 Concrete paths to be edged and scraped c1ean,a minimum of one (1) time
per month or as needed. Cart paths weed free. See IPM Plan.
2.21.3 The Contractor shall identify all potholes and/or other surface damage or
defects on concrete cart paths and report to the City for repair. If damage
is the fault of the Contractor the repair cost will be the responsibility of the
Contractor. Base Rock utility roads on holes #9, #12, and #13 will be
graded smooth weekly. Additional base rock added as needed at the
expense of the Contractor.
2.22 RESTROOMS AT HOLE #5
2.22.1 Inspected daily by the Contractor, clean and stocked daily by the City's
PW Facility Maintenance Division.
2.22.2 Inspected daily by the Contractor, sinks, toilets, walls, screens, and floors
shall be sanitized daily by the City's PW Facility Maintenance Division.
2.22.3 Paper supplies shall be checked and restocked daily or as needed.
2.22.4 Inspected daily by the Contractor for odor and operation. PW will be
contacted for corrections and repairs.
2.22.5 Leaking or malfunctioning fixtures shall be reported to the City's PW
Facility Maintenance Division immediately upon detection.
2.22.6 Lighting fixtures are to be checked daily with repairs of faulty fixtures
provided as needed at time of detection. The City's PW Facility
Maintenance Division will be contacted for repairs.
2.22.7Restroom floors which are wet for any reason, including mopping, shall be
so indicated with proper temporary signage.
2.22.8 No graffiti. The Contractor will inspect daily and contact the City's PW
Facility Maintenance Division for graffiti removal.
2.22.9 No worn spots in concrete, wood walls, or corrugated fiberglass barriers.
The City's PW Facility Maintenance Division will be contacted for repairs.
2.23 MAINTENANCE FACILITIES
2.23.1 The City shall make available for use by the Contractor, at no charge to
the Contractor, a maintenance facility at the golf course for the storage of
golf course-related equipment, materials and/or supplies. The facility will
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be available to the Contractor on an "as is" basis. The Contractor will
conform its use of the maintenance facility to all applicable laws, rules and
regulations regarding the storage of materials on the City's premises,
including, but not limited to, the storage of hazardous, toxic or
flammable materials. The City assumes no responsibility for any theft,
destruction or damage to the Contractor's personal property that is stored
in this facility. The Contractor will return the facility to the City in its
original condition as of the date of commencement of the contract
between the City and the Contractor, normal wear and tear excepted.
2.23.1..1 Permitted Usag~: The Contractor may usethePremises forthe
following uses: Storage, Files, Office area or other similar uses,
premises may not be used for any other purposes without City's
prior written consent, which consent may be withheld in the sale
and absolute discretion of the City.
2.23.1.2 RrohibitedOses. The Contractor shall notu$e Premisesfor
anypurpo$~not expresslypermitted hereunder.. The Contractor
shall nqt create, cause, maintainorpermitanynuisanceor
\fI/aste.,in,qn,·· oraboutth.eRremises, .•. orpermi.tor allow.the
Premises to be u$edforany LIn lavvru I or immoral purpose. The
CQntractorshallnot dopr permit to be done anything in . any
mannerwhichunreasonably.disturbs·the usersofthe·City
Pr8perty or the occup~ntspf neighboringpr8perty. Specifically,
a9dwithoutlirnitin~.theabove,.TheContrastor~greesnotJo
cause(lnyunreason(lplE1\odo(,inois~,vibration,·poWE1[emission,
orotheritem toeman(lteJromthe Premises. No·· materials or
artiql~$qf(l nyn~tu rerh(lllbE1storedoutside .. uppn·~nyportionof
the.Premises .. The ·Cpntractorwillnotuse Property in a·· manner
th~tincreas~rthe risk9f fir~icost of fireinsural"1.ce or
improvel11.ents.Jhe~eqp'···N9.~nreason~blesignorpl~~ardshall
bepaiptecJ.jiinscribed·brplace~ .. inqr9I1isaid.Prope~yr~9d nO
tree orshrub thereon shallbedestroyedorTemov~cJ9rother
wastecommittedofsaidPr9perty,. No bicycles, .motorcycI7s,
automobiles.orother mechanical means of transportation shall
be placed or stored anywhere on the Property. exceptforthe
g(lrageqr driv~\Vay. N9rep~ir, overhaulorm8~ifi.cmion of any motor"e~iclE1/shal.lt~kE1pl~ceonthE1prppe~yorthe~tr77t·in
front of said Property; TheContractor,athis/herexp~nse, shall
~eept.h~Propertyin~sgood·con~itio~.asit.~cl!5atth~
9~gi9nin~.8f·th7termsh7re9f,exc7pt.pa(ll.C3g78sc~~i()nedby
ordinarywear(lnd.tear,anqexcE1ptdal11(lgefQtgE3>rgpf,
side\V~I.k~.andunderground plumbing,which is nottli~faultof
theContractoL
2.23.1.3 Conditi0I1,UseofPremises. CitYimakesno~?~r~l1tyor
rE1pre~entationof.an¥kind. c08g~rn.ingtresondition()tthe
Premises, orthefitnessof the Premises for the use intended by
34 Rev. January 11,2010
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replaced as needed by the City's PW Facility Maintenance Division.
2.24.1 Walkways, breezeway, surroundings, ramps, driving range walkway and
tees cleaned of litter, dirt, and landscape debris daily. All garbage
containers at clubhouse and surrounding area must be emptied daily.
2.24.2 Exterior lighting working and scheduled properly. Report needed repairs
to the City's PW Facility Maintenance Division.
2.24.3 All signage accurate and readable.
2.24.4 A threshold of 50% has been set for disease and weeds 60% for insects.
Spot spraying by location basis only when thresholds are exceeded. Any
use of pesticides must conform to the IPM policies and procedures.
2.25 NETS/FENCES/GATES
2.25.1 The Contractor will be responsible for net repair and material costs on
holes 3,6,10, and Driving Range.
2.25.2 All fences and gates shall be inspected regularly with repairs made as
needed to ensure a safe, secure and aesthetically pleasing condition at all
times, no holes in fences. Repairs and materials are the responsibility of
the Contractor.
2.26 POND MAINTENANCE
2.26.1 Algae and cattail control program shall be maintained as approved by the
GSM.
2.26.2 Pond shall be inspected daily with all visible litter/trash removed upon
detection.
2.26.3 Pond water levels shall be maintained to ensure bank stability and
aesthetic.
2.26.4 Properly marked as water hazard.
2.26.5 A threshold of 25% on Aquatic weeds.
2.27 CONSTRUCTION AND/OR REMODELING OF GOLF COURSE
Any and all changes in the physical characteristics of any portion of the
course or structures such as addition or removal of sand traps, trees,
water hazards, native vegetation or other features shall require prior
approval by the GSM.
The Contractor will be paid for time and materials for any golf course
36 Rev. January 11,2010
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renovation or construction work not listed in this scope of work. Quotes will
be submitted to the GSM for approval with itemized list of individual job
classifications, their time and hourly rate expense. (Complete Table 3,
Attachment C-1). Material will also be added along with any other
expenses to complete the Project.
Time and Material rates to be included within bid proposal. (Include on
Attachment C-1; Table 3, Schedule of Rates)
2.28 PRACTICE AREA I DRIVING RANGE MAINTENANCE
2.28.1 Turf shall be mowed weekly or as required at agreed-upon height by the
GSM.
2.28.2 General turf maintenance shall conform to procedures outlined in
Sections 2.11/Greens (page 17), 2.13/Tee Maintenance (page 19), and
2.15/Roughs Maintenance (page 20.
2.28.3 All Artificial Turf will be inspected weekly and repaired at the designated
Range closure time which is 5:00am -8:30 am every Thursday or at a time
which is approved by the Pro Shop Manager.
2.28.4 Light topdressing will be done once annually followed by brushing to
maintain integrity of Artificial Turf. Supplemental brushing required every 6
months.
2.28.5 Practice Bunker will have at least 4 inches of sand and kept trimmed and
edged. Bunker edges that are raised due to excessive sand build up will
be lowered by the Contractor when they reach one and a half feet over
original grade. Practice Bunker will be raked daily.
2.29 EXTERIOR OF THE CLUBHOUSE, RESTROOM BUILDINGS,
STRUCTURES AND GROUNDS
The City will be responsible for the repairs and maintenance of the building
exteriors and interiors.
GOLF COURSE WETLAND AREAS
Wetland areas must remain undisturbed to traffic, fertilizers, pesticides
and equipment. Litter and debris must be removed daily. Wetland signage
must be clean, readable and placed along both sides of Wetlands.
Replacements of all signage will the responsibility of the Contractor.
V. GENERAL CONDITIONS
A. Permits/Parking
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The 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 the Contractor
of any unsatisfactory work. Unsatisfactory work shall be corrected within
24 hours. The Contractor or the 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.
The Contractor will bill the City by the 5th of the month following service.
The City will pay the Contractor on a monthly basis for labor, equipment
and materials provided during the monthly billing period.
C. 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. The
Contractor shall pay all dump fees. The 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 The Contractor shall at
is sole expense load, haul and deposit all rubbish, debris and green waste'
to a transfer station located at the City of Sunnyvale.
D. Spare the Air Days
The 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 The Contractor when a "Spare the Air" alert has been
designated. The Contractor must coordinate work schedules to
accommodate "Spare the Air" recommendations.
38 Rev. January 11,2010
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EXHIBITB
SCHEDULE OF PERFORMANCE
CONTRACTOR shall perform the Services so as to complete each task within the time
period specified in the Scope of Services, attached to this Agreement as Exhibit A.
CONTRACTOR shall provide the specified services according to the frequency and
schedule specified in Exhibit A.
CONTRACTOR shall execute 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. 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.
Upon request CONTRACTOR shall provide a detailed schedule of work consistent with
completing the required Services as needed.
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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
NO
YES
OCCURRENCE AGGREGATE
WORKER'S COMPENSATION STATUTORY
EMPLOYER'S LIABILITY STATUTORY
BODIL Y 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 SUB CONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS'
COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS
ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE:
A. A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE
IN COVERAGE OR OF COVERAGE CANCELLATION; AND
B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE
FOR CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY.
C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR APPROVAL.
II. CONT ACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED
COVERAGE.
III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO
"ADDITIONAL INSUREDS"
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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
11 Rev. January 11,2010
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EXHIBITE
BONDS
[ATTACH BOND FORMS IF BONDS ARE REQUIRED]
12 Rev. January 11,2010
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EXHIBITF
LIQUIDATED DAMAGES
It is mutually agreed by Contractor and City that if completion of the Services to
be provided by the Contractor under this Agreement is delayed beyond the time
specified in the Schedule of Performance, plus any authorized extensions of time,
City will suffer damages and will incur other costs and expenses of a nature and
amount which is difficult or impractical to determine. Accordingly, City and
Contractor, agree, as a method to fix the damages and not as a penalty, that in the
event of any such failure to perform, the amount of damage which shall be
sustained by City will be the sum of $ for each and every calendar day
during which the Services remain uncompleted beyond the time specified for
completion, plus any authorized extension of time. Should Contractor fail to pay
the liquidated damages to City, Contractor agrees that City may deduct and
withhold the amount of the unpaid damages from any amounts due or that may
become due to Contractor under this Agreement.
BY PLACING THEIR INITIALS BELOW, CITY AND CONTRACTOR·
ACKNOWLEDGE THAT THE AMOUNT SET FORTH ABOVE HAS BEEN
AGREED UPON AS THE PARTIES' REASONABLE ESTIMATE OF CITY'S
DAMAGES.
CITY CONTRACTOR
13 Rev. January 11,2010
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Unit Year Manufacturer Model
22;03 1997 JOHN DEERE 5200
2206 2000 FORD RANGER
2209 1997 JOHN DEERE 5310
2210 1986 CASE 480LL
2213 1997 TY-CROP TD460 TOP DRESS
2215 1997 JOHN DEERE 5300
2216 2008 TORO GREENSMASTER
2217 2008 TORO GREENSMASTER
2221 1992 TORO HYDROJECT 3000
2241 2005 TORO WORKMAN 2110
2242 2005 TORO WORKMAN 2110
2243 2005 TORO 3280-0
2248 2006 TORO PROCORE648
2250 1996 CHEVROLET C3500
2252 2001 JOHN DEERE TURF GATOR
2253 2001 JOHN DEERE TURF GATOR
2254 2001 JOHN DEERE PROGATOR 2020
2255 2000 JOHN DEERE PROGATOR 2020
2256 2000 JOHN DEERE PROGATOR 2020
2257 2001 JOHN DEERE 1200A
2258 2003 TORO GREENSMASTER
2259 2000 TORO GREENSMASTER
2262 2000 TORO GREENSMASTER
2263 2003 LASTEC 721XR
2264 2003 JOHN DEERE 3235
2265 2002 JOHN DEERE 3235
2266 2007 TORO REELMASTER
2267 2008 LASTEC 721XR
2275 1965 FMC (BEAN) FG1010
2276 1980 GANDY N/A
2280 1999 TURFCO SP-1530
2281 1988 TORO GROUNDMASTER 62
2282 1990 TURFCO METERMATIC II
2283 1987 FORD 786A
2295 2001 JOHN DEERE AERCORE 2000 ----------
Attachment 1
City Equipment List
Description
UTILITY TRACTOR -FOUR WHEEL DRIVE
XCAB
TURF TRACTOR
TRACTOR LOADER
TD-460 TOP DRESSER
UTILITY TRACTOR -TWO WHEEL DRIVE
3100 GREENS MOWER W/8 BLADE CUTTING
3100 GREENS MOWER W/8 BLADE CUTTING
WALK-BEHIND TURF AERIFIER
UTILITY VEHICLE. (TURF)
UTILITY VEHICLE (TURF)
ROTARY TURF MOWER
WALKING GREENS AERATOR
TWO YARD DUMP TRUCK
UTILITY VEHICLE
UTILITY VEHICLE
UTILITY VEHICLE
W/2WD CARGO BOX
UTILITY TRUCK W/HD200 SPRAYER
BUNKER RAKE
3100 GREENS MOWER W/11 BLADE CUTTING
3100 GREENS MOWERW/8 BLADE CUTTING
3100 GREENS MOWER W/11 BLADE CUTTING
TRACTOR-MOUNTED ROUGH MOWER
FAIRWAY MOWER
FAIRWAY MOWER
TRIPLEX TRIM MOWER (3100-0)
TRACTOR-MOUNTED ROUGH MOWER
SPRAY RIGyTRAILER MOUNTED (200 GALLON)
SPREADER BOX
TOWABLE TOP DRESSER
TURF MOWER
TOWABLE TOP DRESSER
THREE-POINT FLAIL MOWER ATTACHMENT
FAIRWAY AERIFIER -------
Current Mtr
5,456
32,597
5,595
2,993
0
5,796
852
637
590
1,747
1,558
523
58
15,220
24,560
20,602
3,927
3,435
446
4,577
3,141
3,911
3,433
0
2,685
3,992
1,134
0
out of service
out of service
0
0
out of service
out of service
0
Orig Cost
18,935
17,717
23,748
52,317
18,048
24,520
0
0
25,000
8,725
8,725
18,654
18,426
32,391
6,917
6,917
23,196
17,215
20,582
11,929
18,895
20,297
20;297
17,861
39,817
40,602
26,659
0
0
5,000
0
0
5,500
0
27,014 I
>-.-;-.-;-
Sll n ::r"
8 ('[)
~ .-;-
n
Attachment D
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: COMMUNITY SERVICES
DATE: NOVEMBER 17,2008 CMR: 446:08
REPORT TYPE: STUDY SESSION
SUBJECT: Operational Analysis of the City Palo Alto Municipal Golf Course
EXECUTIVE SUMMARY
In 2007 the City Council authorized staff to proceed with an operational analysis of the Palo Alto
Municipal Golf Course ("Golf Course"). The operational analysis (Attachment A), was
conducted by Economics Research Associates (ERA), and provides information on the Bay Area
golf market and conditions of the Golf Course facility; and the current and alternative operating
models available for the Golf Course. The study found that, despite a Bay Area wide decline in
golf play, the Golf Course performance has been relatively strong when compared with similar
municipal facilities in the market area.
The ERA study and staff report recommends several actions for future success of the Golf
Course, which includes: making relatively minor but strategic investments in the Golf Course
infrastructure and operating structure along with actively participating in the planning of flood
control alternatives for San Francisquito Creek to find a balanced flood control/recreational use
solution that would benefit the Golf Course. Additional recommendations include aligning tenant
contracts to expire concurrently and to evaluate options to enhance Golf Course maintenance,
including the advantages and disadvantages of private versus public maintenance. Various Golf
Course operating models are described in the ERA report, each with advantages and
disadvantages. In the short term, no recommendation is proposed to alter the current operating
model until the flood control plans for San Francisquito Creek, which may impact the Golf
Course, are clearly defined.
Staff is presenting this report to Council for information and preliminary feedback. This item
will be placed on the Finance Committee agenda in the future for further discussion and
recommendations to Council.
BACKGROUND
The Golf Course was constructed in the mid 1950's on 184 acres of flat former salt-marsh and
bay fill. The course was designed by noted golf course architect William R. Bell of Pasadena,
California. The Golf Course was designed as an I8-hole facility with a par of 72. The Golf
Course is a classic 18-hole championship course that measures over 6,800 yards from the back
CMR: 448:08 Page 10f8
tees. The facility includes a large practice putting green, a three-building Eichler-designed-
clubhouse/golf shop complex and parking lot. In the mid 1970's, improvements were made to
replace the clubhouse buildings. At that time, holes 3, 10, 11, & 18 were renovated under the
direction of golf architect Robert Trent Jones, Jr.
In 1992, the City Council initiated a Master Improvement Plan process (CMR 453:92) for the
Golf Course that would incorporate the findings of all prior studies, as well as look to the future
for necessary improvements to the aging facility. The firm of Halsey Daray Golf was selected to
prepare the Master Plan. Subsequently, in 1998, Certificates of Participation (COP's) were
issued in the amount of $7,750,000 (CMR 357:98) to fund the master plan improvements, and
work commenced on the driving range, fairways, greens and tees in 1999. Due to escalating
project costs and funding limitations to make the annual debt service payment the COP issuance
only addressed 40 percent ofthe proposed master plan improvements.
The Golf Course is a City of Palo Alto General Fund operation. All excess revenues or shortages
are returned to the City's General Fund. The Golf Course currently generates sufficient revenues
to support debt service, direct and indirect expenses, and City cost plan charges. There is no
reserve or replacement fund for the Golf Course, consequently; additional debt service is taken
on by the Golf Course wh~n new capital improvement needs arise. The debt service for the
COP's, which represents approximately $570,000 annually, will be fully retired in 2018.
Presently, the City has a management agreement and a lease agreement with Brad Lozares for
golf operations. As a result of Internal Revenue Services (IRS) debt issuance limitatipns, the
management agreement and the lease for the building are separate contracts. The management
agreement includes the following responsibilities: reservations; green fees collection; starting;
and marshalling services. The lease agreement for the building includes responsibility for:
managing golf cart rentals; the driving range; merchandise sales; and instruction services. Mr.
Lozares's management agreement with the City for operating the Golf Course expires December
31,2009. The lease agreement with Mr. Lozares for lease of the building expires in April 2013;
. the building lease also includes an option to extend the term of the concession 10 additional
years, if the option is exercised at the City'S sole discretion.
There is also a lease agreement with R&T Restaurant Corporation (R&T) for food and beverage
services at the Golf Course. The R&T lease agreement for food and beverage operations expires
April 20, 2018.
Golf Course turf and irrigation maintenance is provided by the City's Community Services
Department, Recreation and Golf Division. The Club House and Pro Shop building maintenance
(exterior) and janitorial services are provided by the City's Public Works Department, Facilities
Management Division.
The Recreation and Golf Division Manager of the Community Services Department oversees
daily operations that include coordination of services between the tenants and City maintenance
staff in order to provide a seamless experience for visitors to the Golf Course. The Real Estate
Division of the Administrative Services Department oversees tenant leases.
CMR:448:08 Page 2 of8
Faced with increased competition in the regional golf market, challenges in the golf facility
physical product, and increased pressure on City finances, a study was conducted at the request
of former City Manager Frank Benest, and funding was approved as part of the 2007 budget
process, with the following two key objectives:
a) provide analysis on the Bay Area Golf market and conditions of the Golf Course
facility; and
b) provide analysis of the current and alternative operating models available for the Golf
Course.
In 2007, a scope of services was developed and an RFP process followed to retain a·consultant to
conduct the analysis. Economics Research Associates (ERA) was selected for their reputation in
the industry, experience conducting comparable studies for similar golf courses, excellent
references and reasonable fee proposal that met the City's budget for the project.
DISCUSSION
The ERA report (Attachment A) provides detailed information regarding the Golf Course that
will help put into context how the Golf Course has performed in recent years in comparison to
nearby courses, along with recommendations and options for future success of the· Golf Course.
Extensive public outreach was undertaken to capture the views and interests of stakeholders.
Among them were the Golf Advisory Committee, members of the Parks and Recreation
Commission, golfers who frequent the Golf Course, interested residents, and Baylands
enthusiasts, among others. A Golf Course survey was available at the course for six weeks and
2,500 surveys were mailed to golfers who frequent the Golf Course; 454 responses were received
and are summarized in the ERA report (Section V).
The study concludes that the Golf Course, as with others in the region, has been negatively
impacted by market forces over the last decade. With the entry of many new public and private
golf courses in the region, the market has become significantly more competitive. Due to this
extraordinary golf course inventory expansion, along with a downturn in the regional/national
economy, comparable Bay Area golf courses, on average, report a 17% decline in annual rounds
played from 2000 to 2007. The Palo Alto Golf Course has experienced a 16% decline in annual
play during this period. Sound management decisions, cooperation among the tenants, loans
from the General Fund, strategic maintenance choices and enhanced marketing have enabled the
Golf Course to continue to recover the costs of operations, fund related debt service, and to cover
City and Community Services Department (CSD) allocated overhead charges (Cost Plan). The
study points out that, despite the decline in play at the Golf Course, the operating performance
has been relatively strong compared to similar municipal facilities.
There are several options for the future of the Golf Course, each with its own set of challenges
and opportunities. The long term Golf Course operating models that the City may want to
consider include: Facility Lease; Management Agreement; City Self Operation; or a Hybrid
Model such as the City has currently. The advantages and disadvantages of these options are
described in Section VI of the ERA Report.
CMR: 448:08 Page 3 of8
In the near term, the choices for Golf Course improvements andlor changes to the operating
model, which the City may wish to consider, will likely be influenced by the results of the
pending flood control plans for San Francisquito Creek, being conducted by the Joint Powers
_ Authority and the Army Corps of Engineers.
Consequently, below are three alternatives to help spur discussion on the future of the Golf
Course, with a focus on the possible impacts and opportunities the flood control plans for San
Francisquito Creek may present.
A brief summary of three possible alternatives for moving forward are discussed below:
I. Make no changes, and work with the Joint Powers Authority (JP A) for San
Francisquito Creek flood control to minimize Golf Course impacts
The flood control plans for San Francisquito Creek, being conducted by the Joint Powers
Authority and the Army Corps of Engineers, has begun with the key objective of identifying
potential options to reduce flooding along the creek. A list of short-term projects will be
complete as early as 2010, with the possibility of breaking ground on an actual project by
summer of 2011. The flood control plans for San Francisquito Creek remain an important factor
in planning for changes and improvements at the Golf Course because the creek is adjacent to the
Golf Course and, at one time, traversed the land occupied by the course. Some of the
recommendations that come out of the flood· control study may necessitate modification of
portions of the Golf Course. One course of action may be for the City to work with the Joint
Powers Authority to find flood control solutions that have minimal to no impact on the Golf
Course.
The ERA report states that the Golf Course operating performance is satisfactory, particularly in
light of a very soft Bay Area golf market. Within the short term, two to three years, the operating
performance will likely remain stable with no significant change to the operating structure or
major investment in capital improvement to the Golf Course. The study does not identify any
urgent capital improvement needs or operational problems that need to be addressed in the short
term. On the contrary the Golf Course, as compared to the key competition, is performing better
than average. Given this fact, it is not unreasonable to, at least for the short term, make no
significant changes.
II. Actively participate in the planning of flood .control alternatives for San Francisquito
Creek, to explore possible balanced flood control I recreational use solutions that
would benefit the Golf Course; and pursue strategic operational modifications and
Golf Course improvements as outlined in the ERA Report
This alternative is most consistent with the ERA report and is also the alternative that staff
believes to be the most prudent at this time. The goal would be to optimize financial performance
through some strategic investments while working closely with the Joint Powers Authority on a
flood control project for San Francisquito Creek that will enhance the golf course. The specific
actions under this option would include the following:
o Retain a golf course design consultant to work with the Joint Powers Authority
and City staff to design an environmentally friendly flood control project that will
CMR: 448:08 Page 4 of8
balance flood control and recreational use solutions and also benefit the Golf
Course.
o Align the two tenant leases and management contract so they expire concurrently.
This would allow consideration of other, potentially more effective and efficient,
operating options and a smoother transition of operation, should that be deemed
advantageous in the future.
o Commit to a plan of cost neutral capital improvements, as outlined in the study
(summarized on page 1-12), to ensure the Golf Course remains competitive. That
is, proceed with improvements that are economically justified by increased net
operating income stemming from the improvements.
o Recalculate the Cost Plan allocation for the Golf Course to a more traditional golf
course operation allocation. This would allow for excess :fu.rids to be set aside to
establish a replacement reserve to fund ongoing minor capital improvement
andlor more intensive maintenance.
o Direct Community Services and other relevant City staff to further evaluate the
advantages and disadvantages of private versus public maintenance. The City
will meet and confer with the union on any labor issues which arise.
TIl. Embark on a sigttificant redesign of the Golf Course with or without a concurrent
. restructuring of the Golf Course operation that takes advantage of possible flood
control funds that may become available
The ERA report finds that the Golf Course is presently operating at a satisfactory level with
respect to cost recovery and annual rounds of play as compared to other comparable golfcourses
in the region, and can be maintained a~ such with minimal additional investment. However, if the
City aspires to build or move toward developing a true destination or signature golf course, a
new vision would need to be formulated. This could take several forms. For example, significant
design changes to the c.ourse could reflect more of a links-style course with wide-ranging natural
wetland grasses and round contours that provide undulations and slopes for a' more unique
golfing experience. Another concept could be to extend the lake on hole 11 through the fairways
on holes 3 and 18 to create two or more signature holes. These would be unique, challenging
holes that would bring golfers back to play again. Moreover, this concept may include partnerin~
with an entrepreneur to build and operate a destination restaurant, one that overlooks the 18t
hole and vistas of the airport; a restaurant with appealing ambiance and character for residents to
take out of town visitors to dine.
Several members of the community share this vision in one form or another. They believe that
with the right people and private investment, it is possible to create a better Golf Course that has a unique design, providing a long term competitive advantage in the market place. A
significantly enhanced Golf Course, coupled with a destination restaurant, could be a successful
strategy. Although this is a compelling vision, funding a comprehensive re-development project
at the Golf Course, even with possible flood control funds, would be very challenging,
particularly in the current economic environment.
CMR: 448:08 Page 5 of8
Related to the idea of a comprehensive Golf Course redesign, at Council's direction, staff has
investigated the possibility of re-designing the Golf Course in order to create room for playing
fields (CMR 168:06). This concept was extensively studied by the Planning staff and also
explored by the Parks and· Recreation Commission. In 2006, City staff and the Parks and
Recreation Commission concluded that the concept of playing fields at the Golf Course should
be deferred until the flood control options become more certain. Creating new playing fields
could be re-investigated as part of a comprehensive re-design but again this would add additional
expense which would be particularly challenging in the current economic environment.
Staff Preferred Alternative
At this time, staff recommends pursuing Alternative II. This alternative entails making relatively
minor but strategic investments in the Golf Course infrastructure and operating structure as
outlined in the ERA report along with actively participating in the planning of flood control
alternatives for San Francisquito Creek.
The goal would be to find a balanced flood control and recreational use solution that would both
improve creek flood control and benefit the golf course. Joint Powers Authority flood control
concepts include the Golf Course and provide a unique opportunity for possible Golf Course
enhancement if the City actively participates in the design and development of the project.
With regard to strategic investments in the Golf Course infrastructure and operating structure,
prior to the most recent economic downturn the golf market was. expected to remain relatively
stable for the next three years, the current economic conditions will likely present new
challenges in maintaining a stable level of play. Although the Golf Course is performing
reasonably well today, staff believes maintaining the status quo (Alternative I) is too passive a
strategy in a market that is increasingly competitive and dependent on discretionary income.
Given the current economic climate, it is imperative to commit to strategic investment in course
improvements and maintenance practices to ensure the City is providing the best possible golfer
experience. This will maintain or improve the City's place in the market and enable the City to
reach cost recovery targets.
Moreover, minimal cost neutral capital improvement, enhanced marketing such as the
implementation of online reservations and better course maintenance are all needed to ensure
long term success. Alternative III, which paints a more dramatic picture of chang~ and redesign
of the Golf Course is a compelling option and remains possible. This option can be preserved by
addressing the issues of aligning contracts and lease expiration terms and addressing the
advantages and disadvantages of private versus public maintenance as outlined in Alternative II.
lt also keeps open the potential for a more comprehensive re-design project that may have
additional recreational benefits such as adding playing fields.
RESOURCE IMPACT
Working with the JPA on a ·flood control/enhanced Golf Course design project will require
Community Service staff input, golf course design expertise, and public input. Golf course
design expertise may require consultant costs.
CMR: 448:08 Page 6 of8
In 'an attempt to maintain the standard cost allocation plan across City departments staff
recommends that, after further analysis by the Administrative Services Department, any
reduction in City Cost Plan charges to the Golf Course be reallocated within the Community
Services Department so as to not unfairly impact other General Fund activities. The ERA report
indicates potential savings of $250,000 to $300,000 to the City should the City pursue private
Golf Course maintenance. Staff will continue to monitor the increasing expenses to employee
benefits currently at 50 percent of salary and determine if maintaining in-house operations is
more economically or operationally efficient versus contracting out services. Staff will work
with the labor union to ensure that, ultimately, the best services are provided to the community.
Staff will continue to monitor ongoing revenue and expenditures to ensure that the Golf Course
operation is a viable operation for the c~mmunity.
The ERA report also points out the need for strategic capital investment in the Golf Course that
includes rebuilding of selective greens and bunkers and improved· golf cart storage to increase
the number of carts in order to attract more and larger tournament play. The actual resource
impact is to be determined with further analysis; however, the goal will be cost neutral capital
improvement, as outlined in the study. That is, improvements which are economically justified
by increased net operating income stemming from the improvements.
As mentioned above staff recommends that the Golf Course study be forwarded to the Finance
Committee to work through the alternatives available to ensure ongoing success of the Golf
Course operation and to return to Council with a feasible plan on how to proceed.
ENVIRONMENTAL REVIEW
No environmental review is needed at this time. However, should a Golf Course capital
improvement project be considered at a future date all appropriate environmental review and
consideration will take place prior to approval.
ATTACHMENTS
Attachment A:
Attachment B:
CMR: 448:08
Economics Research Associates -Operational Analysis of the City of Palo
Alto Golf Course
Executive Summary (Bullet Point Version)
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