Loading...
HomeMy WebLinkAbout2010-12-06 City Council Agenda PacketThis Agenda/Notice is Posted in Accordance with Government Code Section 549.2(A) or Section 54956 12/06/10 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. REVISED 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 December 06, 2010 6:00 PM ROLL CALL CLOSED SESSION Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker. 1. CONFERENCE WITH CITY ATTORNEY -- EXISTING LITIGATION Subject: Janet Pierce v. City of Palo Alto, et al.; Santa Clara County Superior Court, Case No. 1-09-CV-145764 Subject Authority: Government Code section 54956.9(a) STUDY SESSION 2. Presentation on Housing Activities by the Housing Trust of Santa Clara County 3. Fire Resources, Services and Utilization Study 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 2 12/06/10 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. October 25, 2010 November 01, 2010 CONSENT CALENDAR Items will be voted on in one motion unless removed from the calendar by two Council Members. 4. Approval of Amendment Number 5 to the Management Agre ement with Brad Lozares for Gol f Professional Services at 1875 Embarcadero Road, Extending the Term for 28 Months to April 30, 2013 CMR 440:10 and ATTACHMENT 5. Annual Public Review of Complia nce of Developmen t Agreement With Stanford University for the Sand Hill Road Corridor Projects CMR 424:10 and ATTACHMENT 6. Adoption of a Resolu tion Authorizing the Filin g of an Application for Federal Surface Transportation Program (STP) Funding and Committing t he Necessary Non-Fe deral Match and Stating the Assurance to Complete the Project for S treet Rehabilitatio n on Channing Avenue, Lytton Avenue, and Homer Avenue CMR 416:10 and ATTACHMENT 7. Adoption of a Resolution Authorizing the Filing of an Application for the Federal Surface Transport ation Pr ogram (STP) and/or Congestion Mitigation and Air Quality Improvement (C MAQ) Funding for the California Avenue Transit Hub Co rridor Project and Committing the Necessary Non-Federal Match and St ating the Assurance to Com plete the Project CMR 419:10 and ATTACHMENT 3 12/06/10 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. 8. Adoption of Resolution Authorizin g the Filing of an Application for the Federal Surface Transport ation Pr ogram (STP) and/or Congestion Mitigation and Air Quality Improvement (C MAQ) Funding for the Palo Alto Safe Routes to Schools Project and Committi ng the Necessary Non-Federal Match and Stating the Assurance to Complete the Project CMR 418:10 and ATTACHMENT 9. Appeal of the Director’s Individual Review Approval of a n Addition to an Existing Single Family Residence at 559 Everett Avenue CMR 423:10 and ATTACHMENT 10. Appeal of the Dire ctor’s Individu al Review Approval of New Single Family Residence at 2615 Cowper Street CMR 434:10 and ATTACHMENT 11. Approval of the Agreement for the Transfer of Ren ewable Energy Certificates Associated With Project Capacity and Energy of Geothermal Generating Project Number 3 to the Turlock Irrigation District CMR 443:10 and ATTACHMENT 12. Adoption of a Re solution Summarily Vacating a 5-foot Future Street Easement at 3708 Laguna Avenue CMR 437:10 and ATTACHMENT 13. Adoption of a Resolution Summar ily Vacating a Pipeline Easement at 4140 Old Adobe Road CMR 438:10 and ATTACHMENT 14. Approval of a Support Agreement With the Friends of the Palo Alto Children’s Theatre 4 12/06/10 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. CMR 441:10 and ATTACHMENT 15. 2 nd Reading Approval of a Mitigate d Negative Declaration and Adoption of an Ordinance Amending the Zoning Map to Change the Zoning Designation for 305 Grant Avenue, 2640 and 2650 Birch Street and 306 and 320 Sheridan Avenue From RM-40 Multi Family to the Pedestrian and Transit Oriented Development (PTOD) Combining District (First reading on November 22, 2010 – Passed 9-0) ATTACHMENT 16. Adoption of a Res olution Amending the Conflict of Interest Code for Designated City Officers and Employ ees as Required by the Political Reform Act and Re gulations of the Fair Political Practices Commiss ion and Repealing Resolution No. 8886 ATTACHMENT 17. Adoption of a Re solution Appr oving Amendment Number 1 to the Agreement Between the City of Palo Alto and the State of California for Maintenance of State Highways in the City of Palo Alto and Approval of Two Contracts Related to the El Camino Real/St anford Avenue Streetscape and I ntersection Improvements Project (CIP PL-07002) : (1) Construction Management Contract with Ghirardelli Associates, for a Total A mount Not to Exceed $150,000 and (2) Amendment No. 1 Mark Thomas & Company, Inc. to a dd $78,700 for D esign Support Services for a Total Not to Exceed the Amount of $293,500 CMR 430:10 and ATTACHMENT 18. Approval of a Cont ract with Calif ornia Land Management (CLM) in The Amount of $110, 053 for t he First Year of Service for Park Ranger Patrol Services in Palo Alto's Ur ban Parks, Ref use Area, Byxbee Park and Baylands Nature Preserve CMR 408:10 and ATTACHMENT 5 12/06/10 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. 19. Approval of a Wastewater Treatm ent Enterpris e Fund Contract With TMAD Taylor & G aines Corporate in a Total Amount Not to Exceed $131,587 for Desi gn of Power Moni toring and Standby Genera tors Replacement Project at the Regional Water Quality Co ntrol Plant - Capital Improvement Program Project WQ-80021 CMR 433:10 and ATTACHMENT PUBLIC COMMENT 20. Approval of Contract With KPA Gr oup, Inc., in the Amount of $125,888 for Desig n Services for the Municipal Services Center Improvements Project - Capital Improvement Project PF-05002 CMR 439:10 and ATTACHMENT 20A. Recommendation from High Speed Rail (HSR) Committe e to Approve Three Letters Regarding High Speed Rail ATTACHMENT AGENDA CHANGES, ADDITIONS, AND DELETIONS HEARINGS REQUIRED BY LAW: Applications and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and put up to three minutes for concluding remarks after other members of the public have spoken. ACTION ITEMS Include: Public Hearings, Reports of Committees/Commissions, Ordinances and Resolutions, Reports of Officials, Unfinished Business and Council Matters 21. Review and Acceptance of R .A. Wiedemann & Associate s, Inc. Airport Business Plan; Adoption of Budget Amendment Ordinance to Fund Transition of Palo Alto Airport control from the County to the City; and Responses to the Finance Committee’s Motion on Information and Action Items from October 19, 2010 Meeting CMR 431:10 and ATTACHMENT 6 12/06/10 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. 22. Public Hearing: Consider Adopting a Resolution Adopti ng New Electric Utility Rate Schedule for Net Surplu s Electricity Compensation (E-NSE- 1) to be Effective January 1, 2011, and to Consider Adopting a Resolution to Ame nd Utility Rule and Regulation 29, Governing Net Energy Metering Service and Interconnection CMR 425:10 and ATTACHMENT 23. Update on the Design of the Main Library Improvements (PE 11000) and Staff Recommendation to Temporarily Relocate the Main Library to the Arts Center Auditorium, Option No . 1, During Construction of Main Library CMR 435:10 and ATTACHMENT 24. Recommendation from High Speed Rail (HSR) Committe e to Approve One Letter Regarding High Speed Rail ATTACHMENT COUNCIL MEMBER QUESTIONS, COMMENTS, AND ANNOUNCEMENTS Members of the public may not speak to the item(s). ADJOURNMENT Persons with disabilities who require auxiliary aids or services in using City facilities, services, or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact 650-329-2550 (Voice) 24 hours in advance. CITY OF PALO ALTO Memorandum TO: CITY COUNCILMEMBERS FROM: CITY MANAGER DEPARTMENT: CITY MANAGER DATE: December 6, 2010 SUBJECT: Fire Resources, Services and Utilization Study Session This study session will provide an opportunity for the consultants from Systems Planning CorporationiTriData Division and the ICMA Consulting Services to provide an overview of the work the consultants have completed to date including: • Study methodology; • Data gathering and analysis; • Organization and management; • Risk and demand analysis; • Overtime analysis; • Station location and respons~ time analysis; • Organizational structure and management; • Operational analysis; • Fire prevention, training and 9-1-1 dispatch analysis; and • Observations and findings. After this meeting and feedback from the full Council during the study session, the consultants will complete their final report with recommendations. Staff anticipates that the consultants will return to make their final presentation in January. ~LD.+h-~ PAMELA W. ANTIL Assistant City Manager ~.,ftfj!~ JAMES KEENE City Manager Page 1 expire concurrently on April 30, 2013 (Attachment A). This recommendation IS consistent with the recommendations in the 2008 Golf Course study. RECO~~NDATION. .. . Sta,f, recoiiifnends that the CounCIl approve and authorIze the CIty Manager or hIS de~g'I;lee to execute the attached Amendment No.5 to the Management Agreement with Brad Lozares (Golf Professional) for golf course professional services at the Palo Alto Municipal Golf Course, 1875 Embarcadero Road (Golf Course), to extend the term of the contract for 28-months to April 30, 2013 (Attachment A). BACKGROUND On March 16, 1998, the City issued tax-exempt bonds to finance Golf Course improvements. Prior to the bonds being issued, the City and the Golf Professional had operated under one lease agreement for both professional management services and the lease of the City-owned Pro Shop facility. When the bonds were issued in 1998, IRS regulations required that there be two agreements: a management agreement for Golf Course professional services and a separate lease to operate the golf retail establishment (Pro Shop). In 1998, Council approved a 20.;.month management agreement and a 15-year lease with the Golf Professional. The original management agreement was amended three times prior to Council approval of a new restated management agreement (Agreement) on January 27, 2003. The new Agreement set the fixed fee to be paid to the City Contractor at $322,251 and removed the annual CPI adjustment. Cart rentals and driving range fees were split, with the Golf Professional receiving 40 percent of the revenue and the City receiving 60 percent. The agreement also provided a productivity reward equal to a stated dollar amount based on increases of golf rounds, power golf cart rentals 'and driving range sales. The agreement has been extended 4 times since 2006 as summarized below: 1. Amendment No. 1 -May, 2006. Council approved an agreement which: 1) extended the term for an additional eighteen months; 2) increased the fixed fee compensation by three percent to $27,333.00; and 3) reimbursed the Golf Professional for 60 percent of the bank's credit card merchant charges attributed to the golf cart rentals. 2. Amendment No 2 -May 2007. Council approved an agreement which: 1) extended the term for one year to December 31, 2008; and 2) increased the fixed fee compensation by two percent to $28,213.46. 3. Amendment No 3 -October 2008. Council approved an agreement which: 1) extended the agreement for one year to December 31, 2009; 2) increased the fixed fee by two percent to $28,777.73; and 3) adjusted the Golf Professional's productivity reward to reflect current market conditions. CMR: 440:10 Page 2 of7 4. Agreement No 4 -November 2009. Council approved an agreement which: 1) extended the term for one year to December 31, 2010 at the same monthly fixed rate as 2008 of$28,777.73. The short term amendments to the Golf Professional contract have been a factor of uncertain economic conditions over the past several years. In response to the uncertain economic conditions, Council authorized a Golf Course study to examine the Bay Area golf market and conditions of the Palo Alto Golf Course facility as well as the current and alternative operating models available for the Golf Course. The study was conducted in 2008. As stated in the Executive Summary the study recommended several actions for future success of the Golf Course that included 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. DISCUSSION Staff have been working on the recommendations from the Golf Course study and have made progress on several fronts. Regarding the San Francisquito Creek flood control, Council has requested that the Joint Powers Authority (JPA) retain a golf course design consultant to work with the JP A and City staff to design an environmentally friendly flood control project that will balance flood control and recreational use solutions 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 known impacts to the Golf Course at this time will include the need to redesign four to six holes due to levee realignment and encroachment onto the Golf Course. The Golf Course study also recommended the City consider contracting out Golf Course maintenance to improve cost recovery and the overall standard of maintenance. In the 2011 Budget process Council approved the contracting out of Golf Course maintenance and a contract with ValleyCrest was approved on October 25, 2010, to assume Golf Course maintenance responsibilities CMR: 390: 10. Recognizing that Brad Lozares would participate in the RFP process for the Golf Course maintenance contract, staff postponed recommending the alignment of Brad Lozares' Golf Professional agreement with the Pro Shop lease pending the outcome of the Golf Course maintenance contract. With the contracting of the Golf Course maintenance complete, staff now recommends aligning the two tenant contracts with Brad Lozares to expire concurrently. Aligning the CMR: 440:10 Page 3 of7 Golf Professional agreement to expire on April 30, 2013 would align three of the four principal agreements the City has to operate at the Golf Course: 1. Pro Shop Lease (expires April 30, 2013) 2. Golf Course Maintenance (expires April 30, 2013) 3. Golf Professional Services (will expire April 30, 2013 if approved) 4. Restaurant Concessionaire (expires 2018) The fourth principal agreement the City has to operate the Golf Course is between R&T Restaurant Corporation and the City to operate the Bay Cafe; the current term of this agreement expires in 2018. Aligning the City contracts that keep the Golf Course operational gives the City flexibility in bidding more than one element of the Golf Course operation when the terms expire. This mayor may not be of interest to the City in April 2013, but the alignment of the various Golf Course contracts provides the opportunity to consider alternative operating models Regarding the Golf Course budget, in Fiscal Year 2010 revenues exceeded expenses by $76,000. It is estimated that Fiscal Year 2011 revenues will exceed expenses by $300,000. Compensation for Brad Lozares' services includes a fixed management fee of $28,777. 73 per month for a total of $805,776 for the 28-month term and percentage fees based on Golf Course productivity. The fixed fee has not increased since 2008 and no increases are recommended for this amendment. The percentage fees also remain unchanged in this agreement. The percentage fees are a revenue share between the City and Brad Lozares for Driving Range revenue at 62% to the City, and 38% to Brad Lozares; and Cart Rental revenue at 60% to the City and 40% to Brad Lozares. Revenue to Brad Lozares in percentage fees over the term of the contract is estimated to be $681,333 in addition to the fixed management fee. The service level the Golf Professional and his staff provide is very professional and greatly appreciated by our golfing patrons. The Golf Professional is very well regarded throughout the golf community for outstanding customer service. The drop in the number of annual rounds played, from a high of over 100,000 in. the late 1980's to its current level of approximately 70,000 rounds in Palo Alto, echoes a national trend in the decline of rounds of golf due to the proliferation of new courses in the 1980's and 1990's and other economic factors. The Palo Alto Golf Course still ranks financially in the top ten municipal golf courses in the Bay Area. The current Management Agreement will expire on December 31, 2010. In order for the Golf Professional to manage the Golf Course and receive compensation, IRS rules CMR: 440:10 Page 4 of7 AMENDMENT NO.5 TO MANAGEMENT AGREEMENT C3150541A, BETWEEN THE CITY OF PALO ALTO AND BRAD LOZARES GOLF SHOP FOR PROFESSIONAL SERVICES AT 1875 EMBARCADERO ROAD, PALO ALTO THIS AMENDMENT NO.5 to the Management Agreement C3150541A, between the City of Palo Alto and Brad Lozares Golf Shop for Professional Services at the Palo Alto Municipal Golf Course, ("Agreement,") is made and entered into this 7th day of December, 2010, by and between the City of Palo Alto, a municipal corporation (the "CITY") and Brad Lozares ("GOLF PROFESSIONAL"). RECITALS A. GOLF PROFESSIONAL has assumed responsibility for and continued the operation and management of course play for the Golf Course facility on behalf of the CITY on the terms and conditions set forth in the Management Agreement dated January 28,2003. B. On May 15, 2006, the parties amended the Agreement to extend the term December 31, 2007, and to increase the fixed fee to $27,660.25 per month and reimburse GOLF PROFESSIONAL for sixty percent (60%) of finance charges associated with the payment of service charges for golf carts by credit card. C. On May 15, 2007, the parties amended the Agreement to extend the term to December 31, 2008, and to increase the fixed fee to $28,213.46 per month. D. On October 20, 2008, the parties amended the Agreement to extend the term to December 31, 2009, and to increase the fixed fee to $28,777.73 per month. E. On December 7, 2009 the parties amended the Agreement to extend the term for one year to December 31, 2010 at the same fixed level of compensation established in 2008 of $28,777.73 per month. F. The parties now wish to amend the Agreement to extend the term of the agreement to April 30, 2013 at the same fixed level of compensation as established in 2008 of $28,777.73 per month. NOW, THEREFORE, in consideration of the terms, conditions, and provisions of this Amendment, the parties agree as follows: SECTION 1. Section III ("Term") is amended in its entirety to read, as follows: "III. TERM The term of this Agreement shall commence on January 8, 2003 and end on April 30,2013. SECTION 2. Section IV, A ("Compensation"), is amended in its entirety to read as follows: "IV. COMPENSATION During the term of the Agreement, GOLF PROFESSIONAL shall receive a fixed fee and percentage fees, as defined below (collectively the "Management Fee"). A. Fixed Fee GOLF PROFESSIONAL shall receive a fixed fee during the term of this Agreement for GOLF PROFESSIONAL's Golf Course and driving range management, Golf Course marshaling and starting and cart rental services. The fixed fee for the term of this agreement will be $805,776.44. The fixed fee will be paid in twenty-eight equal monthly installments. During the eighteen-month extension term from July 1, 2006 to December 31, 2007, GOLF PROFESSIONAL shall receive a fixed fee payable monthly in the amount of $27,660.25. During the twelve-month extension term from January 1, 2008 to December 31, 2008, GOLF PROFESSIONAL shall receive a fixed fee in the amount of $28,213.46, monthly. During the twelve-month extension term from January 1, 2009 to December 31, 2009, GOLF PROFESISONAL shall receive a fixed fee, in the amount of $28,777.73, monthly. During the twelve-month extension term from January 1, 2010 to December 31, 2010, GOLF PROFESISONAL shall receIve a fixed fee, in"the amount of $28,777.73, monthly. During the twenty-:eight month extension term from January 1, 2011 to April 30, 2013, GOLF PROFESISONAL shall receive a fixed fee, in the amount of $28,777.73, monthly. The CITY shall forward the fixed fee by the 5th working day of the CITY's working month for the amount due for that month to the GOLF PROFESSIONAL. If not received within ten calendar days after the fifth working day of the month, a late charge of one percent of monthly payment due and unpaid plus an administrative fee of $45.00 shall be added to the payment due and unpaid, and the total monthly sum shall become immediately due and payable to GOLF PROFESSIONAL. The parties agree that such late charges represent a fair and reasonable estimate of the costs that GOLF PROFESSIONAL will incur by reason of the CITY's late payments and that acceptance of such late charges in no event constitutes a waiver of the CITY's default with respect to such overdue payment, nor prevents GOLF PROFESSIONAL from exercising any of the other rights and remedies granted hereunder or by any provision oflaw." B. Percentage Fees In addition to the fixed fee, GOLF PROFESSIONAL shall receive 38% percent of the gross revenues of the driving range and retain 40% of the gross revenue of the golf carts, golf club and pull cart rentals. Percentage fees for each month will be <;alculated and paid no later than the lOth day of the following month. In no event, -however, shall the cumulative percentage fees paid to GOLF PROFESSIONAL for a single calendar year exceed the total fixed fee payments described in section IV-A herein for that same calendar year. C. GolfCart Fuel Reimbursement GOLF PROFESSIONAL shall reimburse the CITY quarterly for fuel supplied to gas golf carts. Reimbursement shall be at the current retail full service pump price on the date of billing for unleaded . fuel, determined quarterly by the CITY. GOLF PROFESSIONAL shall reimburse the CITY by no later than by the 20th day of the month following the close of each quarter. D. Productivity Reward (Incentives) In order to enhance overall golf division business incomes, customer service and golf professional revenues, a productivity reward equal to a stated dollar amount based on increases of golf rounds, gross power golf cart rentals and driving range sales becomes effective with this agreement. In addition to the fixed and percentage fees, the golf professional shall receive the following productivity rewards based on exceeding the following baselIne golf rounds and gross sales: PAID GOLF ROUNDS: (FEE, DISCOUNT CARD & REPLAY ROUNDS) * Greater than 72,000 rounds $3.00 PER ROUND TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DATE: DECEMBER 6, 2010 TYPE OF REPORT: CONSENT DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT CMR: 424:10 SUBJECT: Annual Public Review of Compliance of Development Agreement with Stanford University for the Sand Hill Road Corridor projects RECOMMENDATION Staff recommends that the City Council: 1. Find that Stanford University has complied in good faith with the terms and conditions of the Development Agreement for the 2009-2010 reporting period. 2. Direct staff to issue a Certificate of Compliance to the University, according to the provision of Section 10(a) of the Agreement, stating that: a. The Agreement remains in effect, and b. Stanford University is not in default. BACKGROUND In June 1997, the City Council approved Comprehensive Plan amendments, zoning changes and design applications for the Sand Hill Road Corridor Projects (Projects). The Projects include the Stanford West Apartments (Apartments), Senior Housing, Shopping Center modifications and a set of roadway modifications, including the widening of Sand Hill Road to four lanes from Santa Cruz Avenue to Arboretum Road and a two-lane extension from Arboretum Road to El Camino Real. A development agreement vesting these approvals was entered into between Stanford and the City and was effective on August 14, 1997. The development agreement requires annual City Council review of Stanford's compliance. This report covers Stanford's 2009-2010 activities. DISCUSSION The attached October 13, 2010 memo (Attachment A) from Stanford Management Company describes Stanford's 2009-10 activities related to implementation of the development agreement. Construc~ion related to the Sand Hill Road Corridor Projects was completed during earlier reporting periods. Post-construction activities include: • Stanford West Apartments are now in their ninth year of occupancy and the number of Below Market Rate (BMR) units increased to 120 units in accordance with the Agreement. The on-site retail store and the Children's Creative Learning Center, a child care center at the CMR:424:10 Page 1 of3 Stanford West Apartnlents, also continue operations with Stanford continuing to subsidize the store to offset the on-going loss from operations. • The Classic Residence Senior Housing by Hyatt, operating in its fifth year, changed its corporate name to Vi and the community is now named Vi at Palo Alto. The independent living units occupancy is at a 100% with a significant wait list and the Health Care Center, with 38 assisted living units, 24 memory support units and 44 skilled nursing units, is also operating at high occupancy levels. The community is a participant of the Palo Alto Green renewable energy program. • The Roads phase of the Sand Hill Road Project was completed during earlier reporting periods. Stanford continues to maintain private street improvements and landscaping within portions of Sand Hill Road, El Camino Real, Quarry Road, and Arboretum Road consistent with the Agreement. • Simon Property Group, the lessee and operator of the Stanford Shopping Center, withdrew their application to expand the Stanford Shopping Center on April 2009. The expansion would have required amending the Sand Hill Road Corridor Projects Development Agreement. The terms of the Sand Hill Road Corridor Proj ects Development Agreement shall continue through August 14, 2012 or until earlier terminated by mutual consent of the parties involved in the Agreement. RESOURCE IMPACT There are no impacts from the development agreement compliance program that affects the General Fund. POLICY IMPLICATIONS This report does not represent any changes to existing City policies. ENVIRONMENTAL REVIEW Issuance of the Certificate of Compliance and consent to an Assignment and Assumption Agreement are not projects under the California Environmental Quality Act, and no environmental assessment is required. PREPARED BY: CMR:424:10 /~wc~ ROLAND RIVERA Senior Planner Page 2 of3 Mr. Roland Rivera Page 2of2 October 13,2010 approved by the Palo Alto Housing Corporation each year consistent with the Agreement. • The on-site retail store remained open during the reporting period. The store is located adjacent to the Community Building and-is open seven days a week; weekdays 7 am to 7 pm; weekends 10 am to 5 pm. The store first opened June 2,2002. Stanford continues to subsidize the store to offset the on-going losses from store operations. • The Children's Creative Learning Center ("CCLC',) operates a child care center at Stanford West on a site located between the Village Green and Govemorts Lane. Consistent with the Development Agreement, the CCLC's annual rent is $1 per year. Senior Housing (Vi at Palo Alto) • On March 27, 2000~ the Palo Alto City Council approved an Assignment and Asswnption Agreement under which CC-Palo Alto, Inc, a subsidiary of Classic Residences by Hyatt, assumed the Senior Housing Project Rights and Obligations under the 1997 Development Agreement. • Following the public offering of the Hyatt hotels, Classic Residence by Hyatt changed its corporate name to Vi in June of 2010. Ownership, operations and management remain unchanged. The community is now named Vi at Palo Alto. • Vi at Palo Alto is currently participating in the PaloAltoGreen renewable energy program. • The community includes 388 independent living units and a Health Care Center comprised of38 assisted living, 24 memory support and 44 skilled nursing units. • The independent units are all sold and the wait list is long. With the average age of residents t currently at 83, there has been an increase in the nwnber of seniors transferring from the independent living units to the Care Center. Currently, 46% of the Care Center residents are now on continuing care contracts. Current occupancy of the entire Health Care Center is 88% with the memory support at 100%, assisted living at 90% and skilled nursing units at 80%. Enclosed is a check (No. 1206090; October 12,2010) in the amount of $2,000.00, as payment for costs incurred by the City as part of its annual review of the Agreement. Sincere~, 1 L J~ Director of Design and Construction STANFORD REAL ESTATE OFFICE 2755 Sand Hill Road, Suite 100· Menlo Par~ CA 94025 ·T: 650.926.0300· F: 650.854.9268 ru o [J'l o .D Q :;. -•• o LI1 U-I Mot o o o ... .D -•• M.J o ~ U1 o ... .0 U-I lP ru TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE: DECEMBER 6, 2010 CMR:416:10 REPORT TYPE: CONSENT SUBJECT: Adoption of a Resolution Authorizing the Filing of an Application for Federal Surface Transportation Program (STP) Funding and Committing the Necessary Non-Federal Match and Stating the Assurance to Complete the Project for Street Rehabilitation· on Channing Avenue, Lytton Avenue, and Homer Avenue RECOMMENDATION Staff recommends that the Council adopt the attached resolution (Attachment A) authorizing the City Manager or his designee to submit an application to the Santa Clara Valley Transportation Authority for a grant of $549,000 in funds from the federal Surface Transportation Program (STP) for local streets and roads rehabilitation project in FY 2012. The funds will be used for resurfacing segments of Channing Avenue, Homer Avenue, and Lytton Avenue in the summer 2011 Asphalt Overlay Project. BACKGROUND The Santa Clara County Valley Transportation Authority (VTA) released a call for projects for the Local Streets & County Roads -Block Grant Program in March of2010. The Local Streets & County Roads Program redistributed gas tax funds back to local agencies through a population-based equation in Santa Clara County. The City of Palo Alto's share in this program is $549,000. See Attachment B for a map of the project streets. The City plans to use the 2010 Local Streets & County Roads fund allocation to resurface the following street segments: -Channing Avenue, from Webster Street to Lincoln Avenue -Lytton Avenue from Alma Street to Florence Street -Homer A venue, from Webster Street to Middlefield Road Federal funds can only be used for rehabilitation of federal aid-eligible streets with a classification of minor collector or higher and the street must have a Pavement Condition Index (PCI) of between 0 and 70 on the Pavement Management System list in order to qualify for funding. The four blocks of Channing Avenue have an average PCI score of 50 (poor) and most have not been repaved since 1986. The repaving of the five blocks of Lytton Avenue included in this contract will complete planned resurfacing of Lytton Avenue which was started in 2009. The five remaining blocks have an average PCI score of 52 and most of these blocks have not CMR:416:10 PAGE 1 of3 received new pavement since 1966. Homer Avenue between Webster Street and Middlefield Road has a PCI score of 23 and was last resurfaced in 1970. DISCUSSION The summer 2011 Asphalt Overlay Project improvements include street resurfacing, replacement of curb, gutter, sidewalk, driveway and upgrading curb ramps in compliance with the American with Disabilities Act requirements. This Project takes advantage of Local Streets & County Roads funding that is based on a population-based equation method managed by the Santa Clara County Valley Transportation Authority (VTA). The Metropolitan Transportation Commission (MTC) manages the distribution of federal and state funds, including gas tax funds, but MTC partners with the VTA to distribute funds within Santa Clara County. Distribution of Local Streets & County Roads funds have been delayed by the State of California in previous years due to funding constraints. Due to the late distribution in 2010, the City will pursue resurfacing of the project streets in the Fall ofS2012 to allow for coordination with the Utilities Department who will be responsible for repair of underground utility facilities prior to the asphalt overlay projects. Staff continues to meet monthly coordinating projects city wide. This work was coordinated with the Utilities Department by meeting independently with the p!oje~t managers that may have an impact on theproject directly. The project is estimated at $630,000 for design and construction including an $81,000 local match. The project has already been approved by the VTA and MTC and the project was added to the Transportation Improvement Plan (TIP) in October 2010. The proposed resolution validates filing of the 2011 Asphalt Overlays Project into the state's Surface Transportation Program (STP) managed by the MTC. Funding will be available in the Fall 2011 but the project will be delayed until 2012 to allow an opportunity for underground utility facilities to be repaired or upgraded prior to asphalt overlay activities. RESOURCE IMPACT There is no immediate resource impact in submitting the resolution for the project so that funding may considered by the VTA Board of Directors. If the project is funded, a mid-year budget appropriation for the federal and local match funding will be pursued. Since the STP grant funds are disbursed on a reimbursement basis, City funds win be reimbursed by the grant funds. Staff will notify Council when the grant is formally approved. POLICY IMPLICATIONS Federal funds require that the City comply with the Caltrans Local Assistance project delivery policies and procedures. The Public Works Department has implemented several projects in recent years using federal grant funds, and staff is familiar with the procedures, schedule, timing, and reporting requirements. Prevailing wages will be required since federal funds are being used. ENVIRONMENTAL REVIEW These proposed street resurfacing projects are minor alterations and repairs to existing facilities with no expansion of use and are categorically exempt under the California Environmental Quality Act sectionI5301(c) ofthe CEQA guidelines. CMR:416:IO PAGE 2 of3 ATTACHMENT A Not Yet Approved Resolution No. ---Resolution of the Council of the City of Palo Alto Authorizing the Filing of an Application for Federal Surface Transportation Program (STP) Funding and Committing the Necessary Non- Federal Match and Stating the Assurance to Complete the Project WHEREAS, the City of Palo Alto (herein referred to as CITY) is submitting an application to the Metropolitan Transportation Commission (MTC) for $549,000 in funding from the federal Surface Transportation Program (STP) for the 2011 Asphalt Overlay Project for Channing Avenue, Lytton Avenue, and Homer Avenue (herein referred to as PROJECT) for the MTC Resolution, No. 3925, New Federal Surface Transportation Act FY (2011-12) Cycle 1 STP Program: Project Selection Criteria, Policy, Procedures and Programming (herein referred to as PROGRAM); and WHEREAS, the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA) (Public Law 109-59, August 10, 2005) continued the Surface Transportation Program (23 U.S.C. § 133) through September 30, 2009; and WHEREAS, SAFETEA has been extended pursuant to Public Law 11-118 and may be subsequently extended pending enactment of successor legislation for continued funding; and WHEREAS, pursuant to SAFETEA, and the regulations promulgated thereunder, eligible project sponsors wishing to receive federal Surface Transportation Program (STP) funds for a project shall submit an application first with the appropriate Metropolitan Planning Organization (MPO), for review and inclusion in the MPO's Transportation Improvement Program (TIP); and WHEREAS, the Metropolitan Transportation Commission (MTC) is the MPO for the nine counties of the San Francisco Bay region; and WHEREAS, MTC has adopted a Regional Project Funding Delivery Policy (MTC Resolution No. 3606, revised) that sets out procedures governing the application and use of STP funds; and WHEREAS, the CITY is an eligible project sponsor for STP funds; and WHEREAS, as part of the application for STP funding, MTC requires a resolution adopted by the responsible implementing agency stating the following: 101l02jb 0130637 1) the commitment of necessary local matching funds of at least 11.47%; and 2) that the sponsor understands that the STP funding is fixed at the programmed amount, and therefore any cost increase cannot be expected to be funded with additional STP funds; and 3) that the project will comply with the procedures specified in Regional Project Funding Delivery Policy (MTC Resolution No. 3606, revised); and 4) the assurance ofthe sponsor to complete the project as described in the 1 Not Yet Approved application, and if approved, as included in MTC's TIP; 5) that the project will comply with all the project-specific requirements as set forth in the PROGRAM. NOW, THEREFORE, BE IT RESOLVED that the CITY is authorized to execute and file an application for funding for the PROJECT under the Surface Transportation Program (STP) of SAFETEA, any extensions of SAFETEA or any successor legislation for continued funding; and be it further RESOLVED that the CITY by adopting this resolution does hereby state that: \ 1. CITY will provide $81,000 in non-federal matching funds; and 2. CITY understands that the STP funding for the project is fixed at the MTC approved programmed amount, and that any cost increases must be funded by the CITY from other funds, and that CITY does not expect any cost increases to be funded with additional STP funding; and 3. CITY understands the funding deadlines associated with these funds and will comply with the provisions and requirements of the Regional Project Funding Delivery Policy (MTC Resolution No. 3606, as revised); and -4: PROJECT will be implemented as described in the complete application and in this resolution and, if approved, for the amount programmed in the MTC federal TIP; and 5. CITY and the PROJECT will comply with the requirements as set forth in the program; and therefore be it further RESOLVED that CITY is an eligible project sponsor for STP funds; and be it further RESOLVED that CITY is authorized to submit an application for STP funds for the PROJECT; and be it further RESOLVED that there is no legal impediment to CITY making applications for the funds; and be it further RESOLVED that there is no pending or threatened litigation that might in any way adversely affect the proposed PROJECT, or the ability of CITY to deliver such PROJECT; and be it further RESOLVED that CITY authorizes its City Manager or his designee to execute and file an application with MTC for STP funding for the PROJECT as referenced in this resolution; and be it further RESOLVED that a copy of this resolution will be transmitted to the MTC in conjunction with the filing of the application; and be it further II II II II II IOlI02jb 0130637 2 Not Yet Approved RESOLVED that the MTC is requested to support the application for the PROJECT described in the resolution and to include the PROJECT, if approved, in MTC's TIP INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Senior Assistant City Attorney City Manager or Designee Director of Administrative Services Director of Public Works 101102jb 0130637 3 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE: DECEMBER 6, 2010 CMR: 419:10 REPORT TYPE: CONSENT CALENDAR SUBJECT: Adoption of Resolution Authorizing the Filing of an Application for the Federal Surface Transportation Program (STP) and/or Congestion Mitigation and Air Quality Improvement (CMAQ) Funding for the California Avenue Transit Hub Corridor Project and Conlmitting the Necessary Non-Federal Match and Stating the Assurance to Complete the Project RECOMMENDATION Staff recommends that Council adopt the attached resolution to authorize the Santa Clara County Valley Transportation Authority (VT A) to submit an application for the California Avenue Transit Hub Corridor Project to the Metropolitan Planning Commission (MTC) and to commit funding if the proj ect is approved. BACKGROUND The Santa Clara County Valley Transportation Authority (VTA) released a call for projects for the Community Design for Transportation (CDT) Program on August 6, 2010.The CDT Program funds proj ects that provide or enhance connections between land uses to transit facilities such as streetscape projects. In response to the call for projects staff prepared an application for the California Avenue Transit Hub Corridor Proj ect between El Camino Real and the California Avenue Caltrain Station to provide place making, traffic calming, and streetscape improvements. The project is an ideal candidate for the CDT Program, enhancing the connection between existing residential and comnlercialland uses to the existing transit facilities at each end of the street, with Caltrain on the eastern end and VT A transit facilities on the western end. The proj ect scored well during the CDT project evaluation process and is currently being recommended for funding to the VT A Board of Directors. If approved, a recommendation to MTC will be made for funding of the proj ect through the Congestion Mitigation and Air Quality Improvement (CMAQ) program fund. CMR:419:10 Page 1 of 4 DISCUSSION The California Avenue Transit Hub Corridor Project was developed through an extensive community outreach process to solicit input on the proposed proj ect elements. Staff held five community meetings including two with merchants along the California Avenue Business District, one with residents of the Park Boulevard Homeowner's Association, and two area-wide community meetings. The proposed streetscape elements of the project are intended to enhance the street's aesthetics and pedestrian environnlent and build comnlunity interest within the California Avenue District. The project is also an element of the California A venuelFry's Area Concept Plan Comprehensive Plan currently under development. Unique project elements include decorative street signs and markers to promote place-making and provide message areas to promote Palo Alto and district-specific history. Expanded seating areas along the project area are also proposed to help promote the successful restaurants in the area and provide seating for community events such as the Farmer's Market. The existing California Avenue Park Plaza adjacent to the Caltrain Station is also identified for revitalization with this proj ect, including enhanced bike rack facilities, information kiosks to promote the City'S Bicycle Plan currently under development, and seating areas with gaming elements to promote community interest. The project cost is estinlated at $1,725,200 for design and construction. The grant would comprise $1,175,200 and a local match in the amount of $550,000 is required. To help expedite the project, grant funding is only being requested for the construction phase of the project, so that the environmental and design phases may proceed immediately. A mid-year budget adoption will be pursued to identify local-match funding if the project is recommended for funding by the VTA Board of Directors. The environmental phase will include a traffic analysis and completion of California Environmental Quality Act (CEQA) requirements for the project. The traffic analysis will include the collection of traffic data on California Avenue, Cambridge Avenue, Sherman Avenue, Ash Street, Birch Street, and Park Boulevard so that a 4-lane to 2-lane reduction on California Avenue may be considered. Traffic data collection began on Novetnber 2, 2010 including traffic volumes, pedestrian and bike volumes, and vehicle speeds. The traffic analysis will be presented to the community at a meeting on December 16, and will then be considered by the Planning and Transportation Commission and City Council. The proposed resolution authorizes filing of the California Avenue Transit Hub Corridor project for future funding from the state's Surface Transportation Program (STP) managed by the Metropolitan Transportation Commission (MTC) with funding from the Congestion Mitigation and Air Quality Improvement (CMAQ) program. Federal funding will be available in February 2012 allowing more than one year for the project design to be completed. Pending Community Concerns and Final Design Review The community has generally supported many of the design components of the California Avenue Transit Hub Corridor project, including parking increases and bulb-out improvements, but there remain project details that require additional community outreach, such as whether to provide tables for outside dining, benches or trees in the bulb-outs, and final configuration of the CMR:419:10 Page 2 of4 California Avenue Park Plaza design. Of particular concern to many meeting participants however, was the proposal to convert California Avenue from a 4-lane section to a 2-lane section. This winter staff will be completing a traffic study to determine whether this is a feasible element of the project. A community meeting to present the findings of the study is scheduled for December 16, followed by a presentation to the Planning and Transportation Commission and City Council for California Environmental Quality Act (CEQA) certification. Staff is hopeful that the traffic study findings and community input will support the grant project concept so that design on the remaining project elements may begin in the Spring. The design would be completed over a 12-month period with construction beginning in spring 2012. Staff also notes that Council has received multiple communications from Mr. William Ross, representing several property owners and tenants along California Avenue. The following responses are provided to three of Mr. Ross' primary concerns: 1. California Environmental Quality Act (CEQA) Review and Approval Mr. Ross has objected to proceeding with the grant and design review prior to CEQA review. A traffic study is currently underway and CEQA review will be part of the considerations by the Planning and Transportation Commission and Council review in early 2011. Detailed design of the project will not begin until after CEQA review and approval. 2. Parking Assessments . Mr. Ross has stated that the Chief Transportation Official Jindicated that the property ownerslbusinesses would be responsible for paying (through assessments) for the improvements. Staff acknowledges that there may have been misunderstanding about this option. One of the project elements includes the addition of bulb-outs along California Avenue for the planting of additional trees, use for additional public art, or for the installation of tables and seating for outside dining. If tables and seating were implemented, one option would be to lease that public space to an adjacent restaurant to help reduce maintenance costs for the tables. Currently, any outside seating tables on the concept plan are proposed as open space and all construction costs would be borne by the City (supported by the grant). 3. Street Reconfiguration Mr. Ross has objected to pursuing the grant in that it locks the City into a 2-lane option on California Avenue. The grant request is for the construction phase of the project, estimated to begin in Spring 2012 so if the Council determines in early 2011 that the 2-lane configuration is not desired, either 1) staff will explore whether some or all of the grant could still be available for different improvements along California Avenue, or 2) the funding could be abandoned. RESOURCE IMPACT There is no immediate resource impact in submitting the resolution for the project so that funding may be considered by the VTA Board of Directors. If the project is funded, a mid-year budget adoption will be pursued to identify funding estimated at $1.7M. Approximately $1.2M of the project for the construction phase would be grant-reimbursed. The current traffic study is funded by the existing California Avenue CIP. CMR:419:10 Page 3 of 4 POLICY IMPLICATIONS The City's Comprehensive Plan recommends streetscape and place-making improvements along California Avenue to ensure continued growth of the California Avenue Business District. The action recommended by this report is consistent with the Comprehensive Plan recommendations. ENVIRONMENTAL REVIEW Adoption of this resolution is not a project under the California Environmental Quality Act (CEQA). CEQA analysis for the California Avenue Transit Hub Corridor project will be completed at a later date, if the funding is approved and prior to Council approval of the project design. PREPARED BY: Chief Transportation 0 DEPARTMENT APPROVAL: ~rt..~ CURTIS WILLIAMS ~ Director, Planning and Community Environment CITY MANAGER APPROVAL: City Manager ATTACHMENTS A. Resolution Authorizing the Filing of an Application for the Federal Surface Transportation Program (STP) and/or Congestion Mitigation and Air Quality Improvement (CMAQ) Funding for the California A venue Transit Hub Corridor Proj ect and Committing the Necessary Non-Federal Match and Stating the Assurance to Complete the Project B. Copy of the California Avenue Transit Hub Corridor Project Application CMR:419:10 Page 4 of4 * NOT YET APPROVED * Resolution No. ---- Resolution of the Council of the City of Palo Alto Authorizing the Filing of an Application for Federal Surface Transportation Program (S TP) and! or Congestion Mitigation and Air Quality Improvement (CMAQ) Funding for the California Avenue Transit Hub Corridor Project and Committing the Necessary Non-Federal Match and Stating the Assurance to Complete the Proj ect Attachment A WHEREAS, the City of Palo Alto (herein referred to as CITY) is submitting an application to the Metropolitan Transportation Commission (MTC) for $1,175,200 in funding from the federal Surface Transportation Program (STP) and/or Congestion Mitigation and Air. Quality Improvement (CMAQ) program for the California Avenue -Transit Hub Corridor Improvements (herein referred to as PROJECT) for the MTC Resolution, No. 3925, New Federal Surface Transportation Act (FY 2009-10, FY 2010-11 and FY 2011-12) Cycle 1 STP/CMAQ Program: Project Selection Criteria, Policy, Procedures and Programming (herein referred to as PROGRAM); and WHEREAS, the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA) (Public Law 109-59, August 10, 2005) continued the Surface Transportation Program (23 U.S.C. § 133) and the Congestion Mitigation and Air Quality Improvenlent Program (CMAQ) (23 U.S.C. § 149) through Septenlber 30,2009; and WHEREAS, SAFETEA has been extended pursuant to Public Law 11-118 and may be subsequently extended pending enactment of successor legislation for continued funding; and WHEREAS, pursuant to SAFETEA, and the regulations promulgated thereunder, eligible' project sponsors wishing to receive federal Surface Transportation Program andlor Congestion Mitigation and Air Quality Inlprovement Program (STP/CMAQ) funds for a project shall submit an application first with the appropriate Metropolitan Planning Organization (MPO), for review and inclusion in the MPO's Transportation Improvement Program (TIP); and WHEREAS, the Metropolitan Transportation Commission (MTC) is the MPO for the nine counties of the San Francisco Bay region; and WHEREAS, MTC has adopted a Regional Project Funding Delivery Policy (MTC Resolution No. 3606, revised) that sets out procedures governing the application and use of STP/CMAQ funds; and WHEREAS, CITY is an eligible project sponsor for STP/CMAQfunds; and WHEREAS, as part of the application for STP/CMAQ funding, MTC requires a resolution adopted by the responsible implementing agency stating the following: II 101115 dm 8261479 1 * NOT YET APPROVED * 1) A conunitment of necessary local matching funds of at least 11.47%; and 2) The sponsor understands that the STP/CMAQ funding is fixed at the programmed amount, and therefore any cost increase cannot be expected to be funded with additional STP/CMAQ funds; and 3) The project will comply with the procedures specified in Regional Project Funding Delivery Policy (MTC Resolution No. 3606, revised); and 4) The assurance of the sponsor to complete the project as described in the- application, and if approved, as included in MTC's TIP; and 5) That the project will comply with all the project-specific requirements as set forth in the PROGRAM. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palo Alto as follows: SECTION 1. The officers of the CITY are authorized to execute and file an application for funding for the PROJECT under the Surface Transportation Program (STP) and Congestion Mitigation and Air Quality Improvement Program (CMAQ) of SAFETEA, any extensions of SAFETEA or any successor legislation for continued funding. SECTION 2. The CITY by adopting this resolution does hereby state that: 1. CITY will provide $550,000 in non-federal matching funds; and 2. CITY understands that the STP/CMAQ funding for the project is fixed at the MTC approved programmed amount, and that any cost increases must be funded by the CITY from other funds, and that CITY does not expect any cost increases to be funded with additional STP/CMAQ funding; and 3. Applicant understands that $(N/A) is greater than the Applicant's (STP/CMAQ Amount) Regional Local Streets & Roads formula share of Local Streets & Roads programming, and that the Applicant will forgo future programming shares until the amount of the overage $(N/A) is reached. (This requirement does not apply to CITY, only to applicants who received an "augmentation" greater than $100,000 in the Local Streets.~& Roads program only) 4. CITY understands the funding deadlines associated with these funds and will comply with the provisions and requirements of the Regional Project Funding Delivery Policy (MTC Resolution No. 3606, as revised); and 5. PROJECT will be implemented as described in the complete application and in this resolution and, if approved, for the amount programmed in the MTC federal TIP; and 6. CITY and the PROJECT will comply with the requirements as set forth in the program; and SECTION 3. CITY is an eligible sponsor ofSTP/CMAQ funded projects. SECTION 4. CITY is authorized to submit an application for STP/CMAQ funds for the PROJECT. SECTION 5. There is no legal impediment to CITY making applications for the funds. 101115 dm 8261479 2 , Attachment B Community Design & Transportation CAPITAL GRANT APPLICATION California Avenue-Transit Hub Corridor Improvements Palo Alto, California California A venue Business District (View toward Caltrain station) Submitted to the Valley Transportation Authority by the Planning and Transportation Department, City of Palo Alto October 4,2010 &',.". el ••• W.m(~ Valley Transportation Authority VTA Revl-l02610 COMMUNITY DESIGN AND TRANSPORTATION (CDT) BLOCK GRANT CAPITAL FUNDS APPLICATION SECTION ONE: PROJECT SUMMARY Project Title California Avenue -Transit Hub Corridor Enhancement Project Description The California Avenue-Transit Hub Corridor Enhancement project between EI Camino Real and the California Avenue Caltrain Station includes the implementation of new community identity markers; bicycle-pa rki ng and community focused improvements at the California Ave - Caltrain Plaza; transit-stop focused improvements;, traffic calming improvements such as 4-to 2-traffic lane reduction & raised table crosswalks, enhanced roadway delineation and parking stations, high visibility pedestrian-activated flashing beacons, and bulb-out improvements throughout the corridor that alsQ function as outdoor dining areas, and a new outdoor community stage. Grant Funds Requested fXICMAQ $ 1,175,20'0' DTE (Construction Phase Only) local Match (20'% Min/phase) $550',0'0'0' Total Project Cost $1,725,20'0' Member Agency City of Palo Alto Contact Person Jaime O. Rodriguez, Chief Transportation official Address Department of Planning and Community Environment 250' Hamilton Avenue Palo Alto, CA 9430'1 E rna iI Add ress jaime.rodriguez@cityofpaloalto.org Phone (650') 329-2136 Fax (650') 617-310'8 Other Project Partners California Av -Transit Hub Corridor Enhancements Valley Transportation Authority -CDT Program SECTION ONE: PROJECT SUMMARY 1. Issue statement that clearly identifies the purpose, need and expected outcome(s) of the project. The California Avenue-Transit Hub Corridor Enhancement project will transform California Avenue between EI Camino Real and California Avenue Caltrain station into a community corridor with transit, bicycle and pedestrian focused transportation treatments; renovate the California Avenue Caltrain Plaza into a vibrant hub for bicycle-commuters and visitors; and provide best-practice pedestrian-scaled improvements throughout the corridor to spur on-going economic development activity and growth. The proposed project Plan Line Concept is provided in Attachment 2 -California Avenue -Transit Hub Corridor Enhancement -Plan Line. 2. Include a map and/or photos showing the location of the project within 1/3 mile of a transit station, core and/or corridor; Current and proposed land uses. California Avenue -Regional Influence California Avenue is identified by the VTA as a significant Transit Corridor ahd Station Area linking EI Camino Real with the California Avenue Caltrain station. Located at west end of the project area at EI Camino Real is the future Bus Rapid Transit station identified as part of the VTA's efforts to comply with the Grand Boulevard Initiative project. The VTA is currently completing the design phase of the Bus Rapid Transit project and the City of Palo Alto is an active participant in that process. A strong pedestrian and bicycle focused corridor along California Avenue as proposed through this project will provide the final link between the Bus Rapid Transit and the California Avenue Caltrain station. Within the same track right-of-way as the Caltrain facility is the future California High Speed Rail project. The California Avenue Caltrain station serves the Stanford University Research Park, adjacent nationally-recognized high tech centers with companies such as Hewlett-Packard, Facebook, and Genencor, VMWare, and a transit-oriented conscious community adjacent to the station area with Palo Alto Central Condominiums serving as the first transit-oriented development in the region. The California Avenue Caltrain station boasts some of the highest bicycle activity in the County of Santa Clara with over 100 peak hour boarding; this is echoed with the high amount of bicycle activity on California Avenue throughout the day. Palo Alto is participating in the VTA's Bike Share program that will continue to enhance activity at the California Avenue Caltrain station. In addition, the City is entering into discussions with adjacent high-tech centers to sponsor additional Bike Share pod stations to be located at private facilities to further expand the Bike Share program and specifically, to promote bicycle ridership to California Avenue. Page 1 California Av -Transit Hub Corridor Enhancements Valley Transportation Authority -eDT Program With the amount of regional transit activity in Palo Alto, this project provides a unique opportunity to transform California Avenue into a bicycle and pedestrian corridor with local and regional amenities that continue to promote transit use, support local growth and business, and provide a safer environment for commuters as transit activity in and around the region intensifies. This will be accomplished by deemphasizing vehicle transportation modes through a 4-to 2-vehicle lane reduction, redevelopment of the California Plaza into a bicycle and pedestrian hub, installation of decorative crosswalk speed tables with pedestrian-activated flashing beacon warning systems, and bulb-out treatments that will house unique California Avenue markers and landscape treatments. Bisecting California Avenue along the project corridor are significant bicycle routes including EI Camino Real, identified on the VTA and City bicycle plans, and Park Blvd, an existing Class 2 bike route that is also identified asa future Bike Boulevard on the Palo Alto Bicycle Transportation Plan. California Avenue -Local Background California Avenue is currently designated as "Regional/Community Commercial" under Palo Alto's Comprehensive plan and provides Community focused land uses including dining, personal-service retail, grocery markets, and small office commercial. The project area is surrounded by single-family and multi-unit housing and commercial uses. The City's Comprehensive Plan includes policies for expanded high-density residential uses on and along the corridor that will benefit from the proposed project by helping to create a unique residential district unlike any other in Palo Alto with distinctive community markers that will be located along EI Camino Real and along California Avenue. The markers will provide identify for the community as well as serve to promote community activities and events for visitors, and provide historical information about the community and the city. Figure 1 -Project Area Map Page I 2 VTA Revl-102610 California Av -Transit Hub Corridor Enhancements Valley Transportation Authority -COT Program Provided in Attachment 3 is a more detailed Project Area Map with Transit Overlay. Attachment 4 includes a Local Land Use and Development Activity Map on and along California Avenue. A Plan Line of the proposed California Avenue -Transit Plaza project is provided in Attachment 1 and highlights public transit connections & improvements, traffic calming treatments, and pedestrian-bicycle enhancements. 3. Proposed project cost estimate and schedule The California Avenue -Transit Hub Corridor Enhancement project is estimated to cost approximately $1.7M for design & construction. The city is proposing a local match of $550,000 for the overall project. The environmental and design stages of the project, estimated at $225,000, will be covered one hundred percent by the City to help expedite the project readiness of the project. The construction phase is estimated to cost $1.5M and the City is proposing a $325,000 local match or 22% for the construction phase. To help expedite the project readiness, the City is only requesting funds for the construction stage of the project. The environmental and design stages will be funded 100% by the City as will the street resurfacing component of the project and therefore not included in the project estimates. The requested VTA -Project Schedule and Cost Estimate Form is provided in Attachment 5. A more detailed project schedule by task is also provided in Attachment 6-City of Palo Alto Project Schedule. 4. Any ancillary information and Letters of Support that will inform the evaluation process. Included in Attachment 10 are Letters of Support for the project from the following agencies or organizations: • Palo Alto Bicycle Advisory Committee • Palo Alto Housing Corporation Page I 3 California Av -Transit Hub Corridor Enhancements Valley Transportation Authority -COT Program SECTION TWO: PROJECT NARRA TIVE (Use Section Two to respond to the Project Evaluation sections of COT Program Goals, Project Context and Setting, Project Readiness, and Project Benefit) 1. COT PROGRAM GOALS The proposed California Avenue Transit Plaza project is a great example of the City's efforts to implement the Valley Transportation Authority's (VTA) -Community Design & Transportation (COT) policies -Manual of Best Practices. The project includes elements that touch on every aspect of the COT Program and have been developed through an extensive community outreach process to ensure community support. The California Avenue Transit Hub Corridor Enhancements project is an extension of the City's Comprehensive Plan and consistent with the policy recommendations of our Bicycle Transportation Plan. Specifk elements consistent with the goals of the COT program include: • Place Making: Each of the elements in the proposed plan includes features that will help to make California Avenue a unique district within the City of Palo Alto, Santa Clara County and the Peninsula. On EI Camino Real new identify markers, shown in concept as made of Rammed Earth structures, are proposed to bring attention to California Avenue and to distinguish the area. The structures serve as both identify markers and establish color patterns and palettes that are continued throughout the project area. Within the right-of-way of California Avenue each section of the street will be distinctively separated from one another including marked Sharrow travel lanes to be shared between vehicles and bicyclists. Separating the travel lanes and parking lanes will be new 3-ft decorative bands that break up the street and continue the color palette of the identifying markers. To tie the street treatments to the pedestrian new pedestrian-scaled markers will be installed at selected new planter areas to promote community activities and events and to provide historical information about California Avenue and the City of Palo Alto. large shade trees to encourage continued pedestrian activity along the corridor will also be provided within the planter areas. Rammed~arthenttysigh'" .ErCarnino.Realmedian Page 4 • Access by Proximity: Proposed Cal Av Plaza Bicycle Rack w/Bike Map Kiosk • Interconnection: • Choice: California Av -Transit Hub Corridor Enhancements Valley Transportation Authority -CDT Program California Avenue is accessed by thousands of travelers on a daily basis as California Avenue is the only entry point to the Caltrain -California Avenue Station. This project will promote continued access to the station and include Place Making ties back to EI Camino Real where the future Bus Rapid Transit station will serve as a hub for travelers back to Caltrain, enhanced bicycle-focused parking features at the redeveloped California Avenue Plaza will strengthen this tie. California Avenue is a regional core for transit activity as defined by the VTA and is serviced directly by both the VTA Line 89, Deer Creek Caltrain shuttle and the free Stanford Marguerite Shuttles that connect Caltrain commuters with the Stanford Research Center, the Stanford University Campus and adjacent business centers. The California Avenue -Transit Plaza project will tie together adjacent land uses and public transit facilities in a cohesive street environment that encourages dwelling by travelers while promoting livability. The consistent use of elements from each end of the project including EI Camino Real markers and planned California Avenue/Caltrain Plaza improvements will tie together the two major transit hubs through a series of improvements for each mode of travel in a consistent and unified manner. There is a variety of existing housing along California Avenue including apartments, condos, and single-family homes all within two city blocks. A senior housing complex exists immediately adjacent to the site as well. Higher densities are envisioned on and along California Avenue due to adoption of a Pedestrian Transit Oriented Development (PTOD) zoning overlay in 2006. 2. PROJECT CONTEXT AND SETTING Project Scope California Av -Transit Hub Corridor Enhancements Valley Transportation Authority -COT Program The proposed project is consistent with the California Avenue PTOD by contributing to a street environment that encourages use of alternative modes of transportation. The California Avenue -Transit Hub Corridor Enhancement project ties together the transit facilities on EI Camino Real and the California Avenue Caltrain Station. The project includes the following elements: • Identity Markers along EI Camino Real and throughout California Avenue, • Redevelopment of the California Avenue Caltrain Plaza that serves as an entrance to the Caltrain Station and undercrossing, • A 4-to 2-lane vehicle lane reduction to promote a safer bicycle and pedestrian environment, • Use of unique color palettes in both the street surface and above-ground structures to promote the development of a Sense of Place within the community,. • Traffic Calming treatments including bulb-out to reduce crosswalk lengths at select intersection's to promote mobility choice, • Raised table crosswalks made of colored concrete with decorative scoring treatments and supplemented by high-visibility pedestrian-activated flashing beacons to promote awareness of pedestrian activity, • Pedestrian-level streetscape furniture throughout the street, and • A more efficient use of public parking space to promote continued economic vitality. Land Use Development The Palo Alto Central development built in early 1980s at California Avenue and Park Blvd was the first transit-oriented development in Santa Clara County. The recently adopted California Avenue PTOD continues to promote mixed-use activity on and along California Avenue; over 400 residential units are planned or were recently built. This project will serve as a catalyst towards continued redevelopment by providing an environment that is conducive towards pedestrian and bicycle activities. Table 1 highlights the private development projects immediately within the project area and their status. Attachment 4 also demonstrates Housing Density & Occupancy by Block Group and Locations of Proposed Housing Development Activity. Page I 6 California Av -Transit Hub Corridor Enhancements Valley Transportation Authority -COT Program Table 1: Residential & Mixed-Use Development in the Project Area 1 Sunrise Senior Housing Built 81 1000 2 195 Page Mill (Apts) Planning 84 1400 3 2051 EI Camino Real (Apts) Built 2 1100 4 Stanford Mayfield (Condos) Planning 70 200 5 Stanford Mayfield (SFH) Planning 180 3000 7 2650 Birch St (Condos) Planning 4 850 8 385 Sherman St (Condos) Planning 3 400 9 420 Cambridge A v Planning 4 400 (townhomes) Total Planned Residential Units: 428 Public Transportation Connectivity The project area is located immediately adjacent to existing and future transit facilities of regional significance including the existing Caltrain -California Avenue Station, the existing EI Camino Real Transit Routes, future EI Camino Real Bus Rapid Transit Station, and local Stanford University Marguerite and VTA routes. These existing public transit uses provide direct transit access to some of the most influential and renowned private facilities in the world including Stanford University Research Park, Hewlett-Packard and Facebook to name just a few. Planned business expansion from companies such as Facebook, America Online, and Hewlett-Packard are anticipated in 2011 near California Avenue. The funding of the California Avenue Trans Hub Corridor Enhancement project will help to sustain and promote growth of public transit activities by providing a comfortable and safe plaza for traveling between transit stations while at the same time helping to build a new identity for the California Avenue PTOD community. California Avenue provides the highest Proposed Cal Av amount of bicycle boarding's to a Caltrain station in the region Pedestrian Alley Enhancements with over 60 peak hour bike trips and another on-going 30 non- peak bike trips on a daily basis (Aug 2010 data). Weekend bicycle activity is even higher with regular Farmer's Market activities on California Avenue between EI Camino Real and Ash Street within the project area; an optional Community Stage near Ash Street will help to promote these types of continued activities and provide opportunities for longer-term street closure to sustain community and economic development activities. Enhancements to alleys along the corridor will be provided to . help enhance pedestrian connections to existing surface parking lots and to link and promote redevelopment to adjacent streets. Page I 7 California Av -Transit Hub Corridor Enhancements Valley Transportation Authority -CDT Program 3. PROJECT READINESS The City has developed the California Avenue Transit Hub Corridor Enhancement project through an on-going dialogue with the California Avenue business and residential communities. The project is ready to move forward into the environmental and design stages if the construction phase is funded by the VTA CDT program. Historical information regarding the City's public outreach process for the project is available at: http://www.cityofpaloalto.org/depts/pwd/news/details.asp?NewsID=1394&TargetID=145 The environmental stage is envisioned to be a relatively minor process with a focus on a transportation study to validate the proposed 4-to 2-lane reduction and provide recommendations for traffic improvements to adjacent streets. Traffic counts collected by the City do not show any significant impact with the lane reduction on California Avenue. Upon award of grand funding for the project, the City will complete all necessary CEQA and NEPA clearances to satisfy the requirements of the Caltrans Environmental Review process. There are also no drainage or tree impacts to existing facilities and the project provides an increase in on-street parking availability. The project is entirely with the City right-of-way and no new permits or easements are needed. To expedite the project, the City will fund both the environmental and design stages of the project so that when funding becomes available in February 2012 the City can immediately move forward with construction. 4. PROJECT BENEFIT The City conducted an extensive community outreach process for the develoment of this project with merchants, property owners and local residents. The concept plans were developed with input from the City's Bicycle Advisory Committee and with the general public through citywide community meetings. Pending environmental review, the project is supported largely by the public. Our project sponsor, Caltrain, identifies the benefits of the project through the continued promotion of the California Avenue Station and its ties to existing and regional transit facilities including Bus Rapid Transit, local community shuttles, and the California High Speed Rail connection. Page I 8 California Av -Transit Hub Corridor Enhancements Valley Transportation Authority -CDT Program The following is a partial list of most important benefits that the project will provide consistent with the COT Program -Best Practice Principles and local planning documents: • Integrate Transit and Create a Multimodal Transportation System The project links existing public transit facilities along EI Camino Real with the eXisting California Avenue Caltrain Station both visually and functionally through aesthetic and functional traffic calming treatments along California Avenue. These improvements will be extremely important as the VTAs Bus Rapid Transit project, promoted in the regional Grand Boulevard Initiative project vision. Of the 34 train stations along the Peninsula, the California Avenue Caltrain station ranks 11th in ridership. Caltrain recently completed platform improvements at the station along with adding a pedestrian tunnel that allows passengers to safely access platforms on both sides of the tracks. This has allowed Caltrain to increase the number of train stops at the California Avenue station and for the bus line activity on California to increase as well, increasing inter-model transit opportunities. Existing transit and shuttle facilities on California Avenue are maintained and enhanced by the addition· of concrete bus pads, custom preformed thermoplastic markers with VTA and Stanford Marguerite logos, and shelter enhancements at Park Avenue. • Intensity Land use and Activities Plaza Pedestrian Proposed within the project is the redevelopment of the California Avenue Plaza that provides direct access to the Caltrain station and a pedestrian and bicycle undercrossing connection to the east side of Alma Street. The city views the redevelopment of the plaza as a significant community feature to that will both help to promote land use activities and promote continued use of public transit including Caltrain, VTA and the Stanford Marguerite shuttle. The city has budgeted approximately $300,000 in the project budget for the renovation of the plaza as part of this project. The City and Caltrain have been in discussion designed to seek cooperative service improvements such as the relocation of the 42 bike lockers that are owned and managed by Caltrain off of the existing plaza and onto Page I 9 California Av -Transit Hub Corridor Enhancements Valley Transportation Authority -CDT Program the Caltrain surface lot or the station platforms providing for unique opportunities to revitalize the plaza into a pedestrian and bicycle focused amenity for the community. The City plans to implement decorative bike lo~kers with canopy shelters and information kiosks to bring awareness and use of local and regional bicycle facilities. The tunnel at the plaza connects North California Avenue to California Avenue serving over 2,000 pedestri~ns and bicyclists per day, including many school-aged children whom walk or bike to school. Angled parking along the plaza will be relocated creating opportunities to redistribute the existing bike racks and additional ones around a mature grove of trees complimented with game tables and seating areas that will help the plaza to become a vibrant pedestrian plaza and gateway feature for this end of California Avenue. • Establish Streets as Places -Traffic Calming The project provides for a 4-to 2-vehicle travel lane reduction that is supplemented by visual separation of street uses including travel lanes and parking lanes through the use of 3-ft wide colored concrete or paver bands. This decorative band also serves to continue the promotion of a unique "sense of place" for the transit corridor through the continuation of color palettes used in the new markers. The project corridor has four existing mid-block crossing locations, three of those locations will be upgraded to raised crosswalk tables that will be constructed out of colored concrete that matches the paver band colors separating the vehicle travel lanes from_the parking lanes. The raised crosswalk tables will include decorative score marks and patterns that will be developed through a community process as part of the on- going design of the project. The raised table crosswalks will also include pedestrian- activated flashing beacon warning systems for enhanced pedestrian awareness, visibility and safety. • Focus on Existing Areas and Design in Context The project will install Sharrow bicycle facilities to promote the continued sharing of travel lanes between vehicles and bicyclists. The Sharrow use with proposed angled parking along California Avenue was proposed by the City due to the significant amount of bicycle activity to and from the Caltrain Station. To further ensure bicycle safety for the corridor, the decorative 3-ft paver band that separates the vehicle travel lanes from the parkfng lanes and raised concrete crosswalk tables will help to reduced vehicle speeds and provide constant reminders to motorists as to the presence of bicycle activity in the roadway. A removal or conversion of angled parking to accommodate bicycle lanes facilities was not supported by the community or the City's PABAC. PABAC is in support of the Sharrow with angled parking concept. Page I 10 California Av -Transit Hub Corridor Enhancements Valley Transportation Authority -COT Program Pedestrian-scaled improvements include bulb-outs throughout the corridor that will help to reduce ve~icle speeds, provide locations for the installation of unique elements for pedestrians such as the illuminated markers or large shade trees to provide a more comfortable environment for travelers between transit stations. • Manage Parking Throughout the corridor there are also additional amenities that will be provided within the existing sidewalk zones including decorative park benches, trash/recycle receptacles, consolidating news racks and information kiosks. This project provides for strategic place making elements while better managing and increasing parking availability, uses that would typically conflict with one another. The proposed project provides an additional 24 on-street parking spaces throughout the project area. • Public Art California Avenue has 14 distinctive pieces of public art including a fountain that is currently undergoing redevelopment through a separate project. The pieces are in good condition and will help to promote California Avenue as an attractive transit corridor. Where public art seating treatments can be expanded as part of the proposed street plan line. • Sustain ability The City of Palo Alto is committed to sustainability and has adopted "green" policies and cost-benefit analysis to achieve environmental benefits. Accordingly, the City intends to include as many sustainable design features as possible in the project including drought- resistant landscaping, "smart" irrigation systems, benches made from recycle materials, and recycling container~. Page I 11 California Av -Transit Hub Corridor Enhancements Valley Transportation Authority -COT Program SECTION THREE: ATTACHMENTS Attachment 1 2 3 4 5 6 7 8 9 10 Description CDT Grants Project Review Checklist California Avenue Transit Hub Corridor Enhancements -Plan Line Project Map with Transit Overlay Local Land Use and Development Activity Map VTA Project Schedule and Cost Estimate Form City of Palo Alto Project Schedule Photographs Depicting Existing Conditions Illustrations of Proposed Street furniture Illustrations of Park Blvd Plaza Improvements Letters of Support Page 12 ATTACHMENT 1.. CDT GRANTS PROJECT REVIEW CHECKLIST VTA is required to review and approve the final project designs for eDT Capital Grants projects to ensure that projects are consistent with the conceptual designs submitted as part of a sponsor's application to VT A. Please initial the following and have the City Manager sign off and date at the end of the checklist. 1. Project Sponsor will provide VTA with an apopted council resolution within 3 months after eDT Program approval. ~0(l. 2. Project Sponsor will invite VTA to all design development meetings.· .ju~ 3. Project Sponsor will obtain CEQA and NEP A clearance for the project. ~o'L 4. Project Sponsor will complete a field review through Caltrans Local Assistance within 6 months of VTA grant approval. JuJ... 5. Project Sponsor will provide VTA with photographs of the existing cc;mditions of . the project. _.J.iJ~1~_ 6. Project Sponsor will meet with VTA to review project design at 35%, 65%, and 100% and allow VTA to comment on the plans. ~0~· 7. Project Sponsor will send a·final PS & E package to VTA for design review approval and Caltrans Local Assistance for final approval. _JJ:_.Q __ _ 8. Project Sponsor will obligate all federal funds by February 1, of the year of programming. To obligate funds, Project Sponsor must receive an E-76 for construction. _~_[l_. __ 9. Project Sponsor will advertise the project and award a construction c·ontract immediately after receipt of B-76 for construction. . Jo\L. 10. Project Sponsor will construct the project within 2 years after receipt of E-76 for construction. jJu.. . . 11. Project Sponsor will invite VTA to participate in any public ceremonies held in co~ection with the project. ... ~c) 0- 12. Project Sponsor will acknowledge VTA'sJunding contribution on all on-site project signage and on all printed materials distributed to the public that are related to the project. ~0(l--· q. 10: Il) :Sate / 1···1 .- I ~L I Attachment 2 California Av -Transit Hub Corridor Enhancements Project DRAFT Plan Line Seating Area 1>7" ~ -'" -' :----~--:'L" ,Iiii'" -~ ~,."'i." ... ,' __ ,' .• 't;, , .-,,.....-~ ,~ ...... .-~~;~-'._~:ji: ~I e;r... 60-Degree Parking Spaced at 9-FT Existing Parking SRaces: 111 Proposed Parking Spaces: 135 Plaza Option 1 Plaza Option 2 f'!!' ',-.,' ~;-'. =: " , ··~~·'I ':"",":._', ,! 'C--_.~,~.-"~~'.: +4 ,,~~ 1 ~J,-~::':'i-7.'~' . "/' : -. r: .~ .-. ' . -1 .. :~~~ ~ --:.~ ~ "--'~. _~.~ :t L...lt....-.'>o Hanover St ~ 0 500 1.000 '\ -=:::J 1 inch equals 1,000 feet 2,000 3,00D -Feet California Avenue Area Designated Bikeway and Transit Map /Attachment 3 "Note: Priority Development Area (PDA) Date: March 2010 Sources: 2000 Census of Population and Housing data, Census Block Groups, and City of Palo Alto Planning Division '\...~ o 0.25 05 " . . 1 1 inch equals 0.25 miles I Miles California Avenue Area Neighborhoods Housing Density and Occupancy By Block Group and Locations of Proposed Housing IAttachment 41 ATTACHMENT 5 VTA Rev1 -102610 PROJECT COST AND SCHEDULE ESTIMATES City/Town of Palo Alto Contact Name: Jaime Rodriguez Contact Phone: 650-329-2136 Contact email: jaime.rodriguez@cityofpaloalto.org Project Title: California Avenue-Transit Hub Corridor Enhancement PROJECT COST PROJECT FUNDS LOCAL LOCAL OTHER FUNDS PHASE REQUESTED MATCH $ MATCH % TYPE/$ ENV $ -$ 25,000 100.0% $ PSE $ -$ 200,000 100.0% $ ROW N/A N/A N/A $ CON $ 1,175,200 $ 325,000 22.0% $ TOTAL $ 1,175,200 $ 550,000 - - - - PROJECT SCHEDULE (rnm/yy) START DATE END DATE 02/11 10/11 N/A N/A 02/12 09/12 City of Palo Alto -California Avenue Project Schedule Last Update: October 4,2010 No 1 2 3 8 9 10 11 12 Street Resurfacing Design 35% Design Comm Meeting #1 65% Design Comm Meeting #2 13 95% Design 14 Comm Meeting #3 1S 100°1. PS&E 16 Submittal of PS&E 17 E-761ssuancG -18 CounCil Approval 01 Bid Docs 19 Advertise 20 Review of Bids ATTACHMENT 6 2115/11 10114/11 3/14111 3/28/11 4/11/11 4/25/11 5/20/11 5/25/11 10114111 California Avenue-Transit Hub Corridor Enhancement project Existing Conditions California Avenue Business District entrance from EI Camino Real California Avenue looking west towards EI Camino Real Attachment 7 Mid block crosswalk between Ash and Birch, looking east towards the Caltrain Station California Avenue looking west towards El Camino Real Attachment 7 Plaza Attachment 7 Proposed Street Furniture Bike Racks Trash/recycling receptacles Attachment 8 Option 1 Option 2 Attachment 9 Illustrations of Plaza Improvements PABAC PaloAlto,licyele,.AclvlsaI!Y Commltt.e September 23, 2010 Jamie Rodriguez Chief Transportation Official Planning & Transportation Division City of Palo Alto P.O. Box 10250 Palo Alto CA 94303 Re: Community Design and Transportation (CDT) application: California Avenue Streetscape Improvements project Dear Mr. Rodriguez: The Palo Alto Bicycle Advisory Committee (PABAC) is pleased to support the City's application for the Community Design and Transportation (CDT) grant, sponsored by the Valley Transportation Authority (VT A). PABAC endorsed the preliminary concept plan and proposal to apply for CDT funds for the project. The committee strongly believes that the plan would improve safety for bicyclists and pedestrians, and address the need for improved and additional bicycle parking. P ABAC believes the reduction in lanes from two to one in each direction, and the conversion of parallel parking to diagonal parking will not be a hazard for bicyclists. The new 2-lane street configuration will provide a more comfortable travel way to be shared between vehicles and bicycles. The roadway widths will continue to be more than sufficient to permit bicyclists to avoid parked cars and to permit drivers to pass cyclists on the left, as they do now. The proposed improvements will make California Avenue more conducive to cycling, an improvement that would be greatly appreciated by all bicyclists. PABAC looks forward to further opportunities to provide input as this project moves forward. Cedric de La Beaujardiere Chair, Palo Alto Bicycle Advisory Committee PALO ALTO HOUSING C C> R P C> R A. T J C> N 725 Alma Street • Palo Alto, CA 94301 • (650) 321-9709 • Fax (650) 321-4341 September 28, 2010 Mayor Pat Burt and Members of the City Council City of Palo Alto 250 Hamilton Avenue Palo Alto,CA 94301 Re: Community Design and Transportation (CDT) Grant California Avenue Streetscape Improvements Dear Mayor Burt and Members of the City Council: Palo Alto Housing Corporation (PAHC) is a private non-profit public benefit corporation that develops, builds, acquires and manages low-and moderate-income housing. With almost 700 units owned and managed by its related entities, it is the largest private owner of affordable rental housing In Palo Alto. Two of PAHC's developments are in the area to be affected by the proposed improvements in the application for California Avenue. PAHC supports this grant application. The population that PAHC serves near the California Avenue area includes families with children, the elderly, and those living with disabilities. California Park Apartments, at 2301 Park Boulevard, is adjacent to the California Caltrain Station. Its residents are families with maximum incomes of 600/0 of area median income. The Sheridan Apartments at 360 Sheridan Avenue is approximately four blocks away, serving elderly and disabled residents with incomes that average 400/0 of the area median Income. Low to moderate income homeowners reside in Birch Court Condominiums at Birch and Grant, which PAHC built in 1985. Improvements in pedestrian access, safety and aesthetics along California Avenue will directly benefit all of these residents. The proposed improvements will create a more attractive gateway into the California Avenue area and strengthen the connection to transit options. More broadly, these improvements would reinforce the identity of this special district and enhance the quality of life for those living in the surrounding neighborhoods. Sincerely, PALO ALTO HOUSING CORPORATION ;::t;Xa;: Executive Director Cc: James Keene, City Manager TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DATE: DECEMBER 6, 2010 REPORT TYPE: ACTION DEPARTMENT: PLANNING& COMMUNITY ENVIRONMENT CMR:418:10 SUBJECT: Adoption of Resolution Authorizing the Filing of an Application for the Federal Surface Transportation Program (STP) and/or Congestion Mitigation and Air Quality Improvement (CMAQ) Funding for the Palo Alto Safe Routes to Schools Project and Committing the Necessary Non-Federal Match and Stating the Assurance to Complete the Project RECOMMENDATION Staff recommends that the Council adopt the attached resolution to authorize the Santa Clara Valley Transit Authority (VTA) to submit an application for the Palo Alto Safe Routes to School Project to the Metropolitan Transportation Commission (MTC) and to commit local funding for the project. BACKGROUND The Santa Clara County Valley Transportation Authority (VTA) released a call for projects for the Vehicle Emissions Reductions Based at Schools (VERBS) Program on September 3, 2010. The VERBS Program funds both capital and non-capital projects aimed at promoting alternative transportation modes for schools. In response to the call for projects, staff prepared an application for the non-capital category for the Palo Alto Safe Routes to Schools Project to help fund new programs at all schools and educate and encourage both students and parents to use alternative modes of transportation in commutes to school. The project ranked the highest in the VERBS Program scoring because it strengthens and builds upon the City'S already successful Safe Routes to School Program and helps to establish best practice standards for school transportation that may be used by other cities in the future. If approved by the VT A Board of Directors, a recommendation will be made to MTC for funding of the project. The City will use the funds to: create new walking and biking route to school maps; deploy counting stations along routes to schools to establish baseline measurements of current walking and biking activity and measure future trends; update the City's current bicycle safety education curriculum; create new curriculum targeted at middle school students; fund additional encouragement programs such as walk and roll events and bicycle rodeos; create new CMR:418:1O Page 1 of3 outreach materials targeted at parents to build awareness for safe driving during school commute periods. The use of counting stations to measure school activities is an industry standard first for the San Francisco Bay Area. DISCUSSION The Palo Alto Safe Routes to School Program is a partnership between the City of Palo Alto, the Palo Alto Unified School District, and representatives from the various Parent Teacher Associations (PTAs) from each school. The City maintains this partnership through two active committee groups that meet monthly during the school season, the City/School Liaison Subcommittee made up of representatives from the City Council and the PAUSD Board of Education, and the City/School Traffic Safety Committee made up of representatives from the city staff, and school district staff and the PTAs. The City/School partnership has yielded an overwhelming amount of walking and biking activity at schools that is unparalleled within Santa Clara County. This success and the opportunity to build upon it was the premise for pursuing the VERBS funding opportunity. For example, currently, the City does not have city-sponsored walking and biking route to school maps. Each PTA has historically developed its own maps and updated them on their own as development activity has occurred. In addition, the choice schools that serve students outside of neighborhood school boundaries experience the highest amount of parent chauffeuring activity with limited rideshare use between parents and students. Lastly, the City currently does not offer education to middle school students beyond; this is identified as a critical period for youth when they will develop lifelong habits on bicycle safety and use. The proposed project will establish city-sponsored walking and biking route to school maps with a consistent look and feel while including education material specific to building safe environments at each school. The updated and new education materials will target students transitioning from grade school into middle schools to promote walking and biking options that may typically not be considered by students because of longer distances between neighborhoods to middle schools. Changing student's perspectives and habits at this age will further help to promote alternative transportation mode shifts into high school and future life destinations. This education and outreach effort will be supplemented with education targeting parents to build awareness and patience during school commute periods. To measure the effectiveness of the program enhancements, new count stations located along sidewalks leading to schools will be deployed to establish baseline alternative transportation mode activities and monitor trend shifts. The project also funds a part-time position for two years to assist in the deployment of the new program activities. The project is estimated at $660,000. The grant would comprise $528,000 and a local match from the City would provide the balance of $132,000. A mid-year budget appropriation will be pursued in the Spring to identify local-match funding if the grant is funded by the VTA Board of Directors. The proposed resolution authorizes filing of the Palo Alto Safe Routes to School project for future releases of the state's Surface Transportation Program (STP) managed by the Metropolitan Transportation Commission (MTC) with funding from the Congestion Mitigation and Air CMR:418:1O Page 2 of3 Quality Improvement (CMAQ) program. Federal funding for this project will be available in the Fall 2012. RESOURCE IMPACT There is no immediate resource impact in submitting the resolution for the project so that funding may be considered by the VTA Board of Directors. If the project is funded, a mid-year budget appropriation will be pursued to identify the estimated $660,000 for the project. Approximately $528,000 of the project would be grant-reimbursed. The local match ($132,000) fund source would be identified at the mid year. POLICY IMPLICATIONS The Palo Alto Safe Routes to School program is consistent with City Council policy and activities in promoting the City/School/Community Safe Routes to Schools Partnership. ENVIRONMENTAL REVIEW Adoption of this resolution is not a project under the California Environmental Quality Action (CEQA). PREPARED BY: DEPARTMENT HEAD: CITY MANAGER APPROVAL: ATTACHMENTS CURTIS WILLIAMS Director Planning and Community Development City Manager A. Resolution Authorizing the Filing of an Application for the Federal, Surface Transportation Program (STP) and/or Congestion Mitigation and Air Quality Improvement (CMAQ) Funding for the Palo Alto Safe Routes to School Project and Committing the Necessary Non- Federal Match and Stating the Assurance to Complete the Project. B. Copy of the Palo Alto Safe Routes to School application. CMR:418:1O Page 3 of3 *NOT YET APPROVED* Resolution No. --- Resolution of the Council of the City of Palo Alto Authorizing the Filing of an Application for the Federal Surface Transportation Program (STP) and/or Congestion Mitigation and Air Quality Improvement (CMAQ) Funding for the Palo Alto Safe Routes t6 Schools Project and Committing the Necessary Non-Federal Match and Stating the Assurance to Complete the Project Attachment A . WHEREAS~ the City of Palo Alto (herein referred to as CITY) is submitting an application to the Metropolitan Transportation Commission (MTC) for $528,000 in funding from the federal Surface Transportation Program (STP) and/or Congestion Mitigation and Air Quality Improvement (CMAQ) program for the Palo Alto -Safe Routes to School Program (herein referred to as PROJECT) for the MTC Resolution, No. 3925, New Federal Surface Transportation Act(FY 2009-10, FY 2010-11 and FY 2011-12) Cycle 1 STP/CMAQ Program: Project Selection Criteria~ Policy, Procedures and Programming (herein referred to as PROGRAM); and WHEREAS, the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA) (Public Law 109-59, August 10, 2005) authorized the Surface Transportation Program (23 U.S.C. § 133) and the Congestion Mitigation· and Air Quality Improvement Program (CMAQ) (23 U.S.C. § 149) through September 30, 2009; and WHEREAS, SAFETEA has been extended through December 31, 2010 pursuant to Public Law 111-147, (March 18, 2010) and may be subsequently extended pending enactment of successor legislation for continued funding; and WHEREAS, pursuant to SAFETEA, and the regulations promulgated thereunder, eligible project sponsors wishing to receive federal Surface Transportation Program and/or Congestion Mitigation and Air Quality Improvement Program (STP/CMAQ) funds for a project shall submit an application first with the appropriate Metropolitan Planning Organization (MPO), for review and inclusion in the MPO's Transportation Improvement Program (TIP); and WHEREAS, the Metropolitan Transportation Commission (MTC) is the MPO for the nine counties of the San Francisco Bay region; and WHEREAS, MTC has adopted a Regional Project Funding Delivery Policy (MTC Resolution No. 3606, revised) that sets out procedures governing the application and use of STP/CMAQ funds; and WHEREAS, CITY is an eligible project sponsor for STP/CMAQ funds; and /I II lOll IS sh 8261478 1 *NOT YET APPROVED* WHEREAS, as part of the application for STP/CMAQ funding, MTC requires a resolution adopted by the responsible implementing agency stating the following: follows: 1) The commitment of necessary local matchlng funds of at least 11.47%; and 2) That the sponsor understands that the STP/CMAQ funding is fixed at the programmed amount, and therefore any cost increase cannot be expected to be funded with additional STP ICMAQ funds; and 3) That the project will comply with the procedures specified in Regional Project Funding Delivery Policy (MTC Resolution No. 3606, revised); and 4) The assurance of the sponsor to complete the project as described in the application, and if approved, as included in MTC's TIP; and 5) That the project will comply with all the project-specific requirements as set forth in the PROGRAM.; and 6) That the project (transit only) will comply with MTC Resolution No. 3866, which sets forth the requirements of MTC' s Transit Coordination Implementation Plan to more efficiently deliver transit projects in the region. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as SECTION 1. The CITY is authorized to execute and file an application for funding for the PROJECT under the Surface Transportation Program (STP) and Congestion Mitigation and Air Quality Improvement Program (CMAQ) of SAFETEA, any extensions of SAFETEA or any successor legislation for continued funding. SECTION 2: The CITY by adopting this resolution does hereby state that: 1. CITY will provide $132,000 in non-federal matching funds; and 2. CITY understands that the STP/CMAQ funding for the project is fixed at the MTC approved programmed amount, and that any cost increases must be funded by. the CITY from other funds, and that CITY does not expect any cost increases to be funded with additional STP/CMAQ funding; and . 3. CITY understands the funding deadlines associated with these funds and will comply with the provisions and requirements of the Regional Project Funding Delivery Policy . (MTC Resolution No. 3606, as reviseq); and 4. PROJECT will be implemented as described in the complete application and in this resolution and, if approved, for the amount programmed in the MTC federal TIP; and 5. CITY (for a transit project only) agrees to comply with the requirements of MTC's Transit Coordination Implementation Plan as set forth in MTC Resolution 3866; and 6. CITY and the PROJECT will comply with the requirements as set forth in the program. SECTION 3. SECTION 4. funds for the PROJECT. SECTIONS. the funds. 101115 sh 8261478 That CITY is an eligible sponsor of STP/CMAQ funded projects. That CITY is authorized to submit an application for STP/CMAQ That there is no legal impediment to CITY making applications for 2 *NOT YET APPROVED* SECTION 6. That there is no pending or threatened litigation that might in any way adversely affect the proposed PROJECT, or the ability of CITY to deliver such PROJECT. SECTION 7. That CITY authorizes its City Manager or designee to execute and file an application with MTC for STP/CMAQ funding for the PROJECT as referenced in this resolution. SECTION 8. That a copy of this resolution will be transmitted to the MTC in conjunction with the filing of the application. SECTION 9. That the MTC is requested to support the application for the PROJECT described in this resolution and to include the PROJECT, if approved, in MTC's TIP. SECTION 10. The Council finds that this resolution is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk APPROVED AS TO FORM: Senior Deputy City Attorney lOll 15 sh 8261478 Mayor APPROVED: City Manager Director of Planning and Community Environment Director of Administrative Services 3 ,4', .. ,. ,,, .. wm" Valley Transportation Authority VEHICLE EMISSIONS REDUCTIONS BASED AT SCHOOLS (VERBS) GRANT APPLICATION SECTION ONE: PROJECT SUMMARY Project Title Palo Alto -Safe Routes to School Program Project Description The City of Palo Alto proposes to build on the successes of its ten-year old Safe Routes to School program with a multi-disciplinary set of program enhancements that will: • update and expand the reach of student and parent education programs; • provide outreach to the Spanish and Chinese- language speaking community; • support new and more frequent encouragement events; • establish a "schoolpool" program to support carpooling, walking and biking; • increase City support of programs, and expand the City's web-based outreach; • measure the associated reductions in vehicle miles traveled, emissions, and congestion. These programs are anticipated to reach an additional 7,011 students and 2,877 parents, and reduce daily VMT by 1,474 miles. Grant Funds Requested ($/FY) $ 528,000 Program Component ~ Non-infrastructure [ J Infrastructure Local Match (20.0%) 2,000 Total Project Cost $660,000 Member Agency City of Palo Alto Contact Person Jaime O. Rodriguez Address 250 Hamilton Ave, Palo Alto, CA 94301 Email Address jaime.rodriguez@cityofpaloalto.org Phone ~329-2136 Fax 0) 617-3108 Other Project Partners Palo Alto Unified School District; Palo Alto Council of PTAs Attachment B Palo Alto -Safe Routes to School Program VTA -VERBS Grant Program Proposal SECTION ONE: PROJECT SUMMARY (CONTINUED) 1. A map and/or photos of the project, including the benefiting school location Palo Alto is served by the Palo Alto Unified School District, with a total of 11,850 students in September 2010. This includes 5470 students in 12 elementary schools, 2640 students in three middle schools, and 3740 students in two high schools. This project will reach out to every school in the district, providing direct benefits that will strengthen efforts to encourage alternative modes of transportation to school. Student and parent education programs that complement the City's efforts to provide roads that serve all users will be expanded. New evaluation tools will help identify improvements for future implementation and link to focused enforcement efforts. Figure 1 Figure 1 provides a citywide map of the City of Palo Alto and highlights the school boundaries for each elementary school, some boundaries of which expand far beyond walking and biking distance or require students to cross high volume multi-lane arterial roads. Schoolpooling will be an essential component in reducing VMT to schools. Attachment A -Palo Alto Historical Bike/Ped Collision Map provides a citywide map of bicycle and pedestrian collisions from 2003 to 2008 based on Statewide Integrated Traffic Records System data. The citywide collision data around school sites demonstrate the need for a Safe Routes to School umbrella program that ties together the City'S existing programs and projects into policy-focused initiatives. This grant will help Palo Alto continue its model education programs. The proposed bicycle and walking skills courses and video, in addition to other encouragement programs funded by this grant, will work to improve traffic risk avoidance skills and overall awareness of bicyclists and pedestrians. Palo Aka School Boundaries Elementary Attendance Areas Palo Alto Unified School District L8pkofl & Gob.lel Oeinographio Researel" (no. 112007 l~y_pemograptJ."rs.lXJm . , Palo Alto -Safe Routes to School VTA -VERBS Grant Program Proposal SECT/ON ONE: PROJECT SUMMARY (CONTINUED} 2. Proposed project cost estimate and schedule Non-Infrastructure Project City of Palo Alto Contact Name: Jaime Rodriguez Contact Phone #: (650) 329-2136 Contact email: jaime.rodriguez@cityofpaloalto.org Project Title: Palo Alto -Safe Routes to School Program PROJECT PHASE Implementation TOTAL PROJECT COST ($1,0005) FUNDS LOCAL REQUESTED MATCH $ $528,000 $132,000 $132,000 LOCAL OTHER MATCH FUNDS % TYPE/$ 20% 20% PROJECT SCHEDULE (mm/yy) START END DATE DATE 09/2011 06/2013 Page I 3 Palo Alto -Safe Routes to School VTA -VERBS Grant Program Proposal SECTION TWO: PROJECT NARRATIVE SCREENING CRITERIA 1. Issue statement that clearly identifies the purpose, need and expected outcome(s) of the project. Purpose of Improvements The proposed project is to expand and strengthen the Education, Encouragement and Evaluation components of Palo Alto's Safe Routes to School partnership by: • Updating and expanding the reach of student and parent education programs; • Branding and providing consistent education materials to the community; • Providing outreach to the Spanish and Chinese-language speaking community; • Supporting new and more frequent encouragement events; • Establishing a schoolpool program to support carpooling, walking and biking; • Increasing City support of programs and expanding the City's web-based outreach; • Measuring the associated reductions in vehicle miles traveled, emissions, and congestion. The ultimate goals of the expanded program are to increase the number of students and parents taking alternative modes of transportation to school (walking, biking, skating, carpooling, bus), reduce school related vehicle miles traveled and emissions, and serve as a model "5 E's" Safe Routes to School Program for adjacent communities. Project Need The City of Palo Alto, in collaboration with the Palo Alto Unified School District and parent volunteers from the Palo Alto Council of PTAs, began to coordinate efforts to reduce congestion and improve safety for students on their way to and from school in 1994, using the traditional 3 E's of engineering, education and enforcement. Since 2000, when this partnership was expanded to include the 4th E of encouraging alternatives to solo driving to school, the City has seen a significant and on-going increase in biking and walking to school as a direct result of these efforts. Successful past efforts include: Page I 4 Palo Alto -Safe Routes to School VTA -VERBS Grant Program Proposal • In-classroom bicycle and pedestrian safety education for all schools, grades kindergarten through third, fifth and sixth, reaching over 5,000 students annually. • Increase in the percentage and number of elementary school students attending neighborhood schools who came to school by walking, biking, carpooling, and taking the bus between 1994 and 2006, as shown in Figure 2. • Steady increase in the mode share and number of bicyclists in the two PAUSD high schools between 2000 and 2009, as shown in Figure 3. In Fall 2009, daily counts recorded 633 parked bicycles at Gunn High School, a record 33% mode share. At Palo Alto High School (Paly), 582 parked bicycles were counted, almost equaling the 33% mode share in 1985. • At the three PAUSD middle schools there were a total of 1,140 bicycles parked in fall 2009, with mode share increasing from about 20 percent to 50 percent at the two la,ger middle schools over the decade, as shown in Figure 4. The third middle school, located on busy Arastradero Road, reopened in 2003 and has had a significantly lower bicycle mode share, around 25 percent, due to congestion and safety issues on Arastradero Road near the school that are now being addressed by the City's Arastradero Road- Traffic Calming -Trial Project. • Expansion of City-sponsored Walk and Roll to School events to include all elementary schools in the first week of October, and nearly all in the spring Earth Day promotion, in conjunction with parent Safe Routes to School volunteers. Figure 2 Palo Alto Schools Enrollment and Transportation Mode Patterns PAlJSO Neighborhood Elementary Schools: Enrollment & How Get to School 1993-2006 4000..-----------_ 3500+--------- ~ 3000 +--==--~ .52500 '2 ,li2000 c .:; 1500 a (I) 1000 500 o IlIWalk,BI .. , Skate .SIngIo """'Ilyear Page I 5 j iii I Palo Alto -Safe Routes to School Program VTA-VERBS Grant Program Proposal Figure 3 Palo Alto High School Usage, 1985-2009 ~--------------------------------~ Gunn and Paly: Fall Bike Counts, 1985-2009 Gunn and Paly: Students Biking to School (%) Figure 4 Palo Alto Middle School Bicycle Usage, 1985-2009 PAUSD Middle Schools: Students Biking to School (%) 19851991199319971999 2000 2001200220032004 201)5 2006 2007 2008 2009 'i" Ii' I. 1 ~ 600 500 400 300 200 100 PAUSD Middle School Fall Bike Counts, 1985-2009 However, despite these successes, the City has identified areas that require significant improvement, specifically: / Capacity • The City currently supports school education and outreach programs through a 0.25 full- time equivalent (FTE) staff person, which is adequate to maintain the existing practices, but does not allow the City to significantly expand or improve upon its successes. Education • The existing curriculum materials and communications sent home as part of the K-5 education programs are now outdated and do not adequately serve the community- specific needs of the City's students. Upon funding of this proposal the City will identify new education materials that may be tailored to these needs and are more relevant to the city's unique Bicycle-Friendly Community assets. Page I 6 Palo Alto -Safe Routes to School Program VTA -VERBS Grant Program Proposal • . In-classroom education currently stops after 6th grade, just as bicycling mode share peaks and as students are required to travel longer distances to school. Additional on- bike instruction for middle school students is in demand and urgently needed. Upon funding of this proposal, the City and the school district will develop and implement middle school education programs and materials to encourage safe bicycle and walking practices through the community. • The parent education program includes outreach material associated with the K-3 and 5th grade in-class education program and annual training for 250 Safe Routes to School volunteers in the elementary schools. But for middle schools, the only parent education component is via small "Middle School Bike Skills" classes based on the LAB Kids II curriculum offered through the City's recreation program which require participation of one parent. These classes only reach 120 students age 11-14 and their parents each year, due to instructor availability. Upon funding of this proposal, the City will expand its education outreach program materials and encourage parent participation in the Palo Alto -Safe Routes to School program. Evaluation • The City currently coordinates classroom tally counts by teachers in grades K-5 each fall to evaluate the effectiveness of its current education and outreach efforts, but has not collected the information required to estimate reductions in vehicle miles traveled or emissions. Funding of this proposal will allow the City to deploy permanent cou nting stations near schools to collect regular data that will help the City to identify transportation mode changes, travel pattern changes, and establish accurate benchmarks to evaluate the efforts of the Palo Alto -Safe Routes to School Program. • The City has also not conducted a parent survey since 1994. Surveys are an important element in identifying barriers that may be hindering transportation mode shifts. Through the funding of this proposal, the City will be able to develop and distribute surveys on an annual basis to identify perception impacts and trends towards alternative modes of transportation to schools. Expanded Outreach and New Program Participants • Existing education materials provided by the City are provided only in English, despite the fact that 11 percent of Palo Alto residents speak English "less than very well" according to the 2006-2008 American Community Survey. Funding of this proposal will allow the City to develop more engaging materials in multilingual formats including Spanish and Chinese. • Twenty two percent of children in elementary grades are in four "choice" programs located at three school sites. Walking and biking to these schools is significantly lower tha n at the neighborhood schools. Funding of this proposal will allow the City to work Page I 7 Palo Alto -Safe Routes to School Program VTA -VERBS Grant Program Proposal with the school district to implement a new School pool Program that will allow parents to more easily identify carpool partners as "Yell as parent volunteers to serve as "walking school bus" or "bike train" leaders to facilitate safe crossing of busy multi-lane streets. • City-sponsored Walk and Bike to School Days are promoted twice annually. Some schools have more frequent walking and biking days,and the City would like to support more of these events, particularly at the schools where significant mode shift has not yet taken place, through the funding of this grant proposal. • The City's existing school commute website is difficult to navigate and difficult for non- technical City staff to update. The availability of a Palo Alto focused Safe Routes to School website that takes advantage of social network website partnerships will help the City to better distribute education materials and promote school-focused events. Additional Needs and Benefits: Reducing VMT • Despite increases in the numbers of students biking and walking over the years, growth in student enrollment at all levels has meant that auto congestion near Palo Alto schools continues to be an issue. • Adding to this congestion issue is limited school bus service by the school district. Students may purchase a VTA Community bus pass, which mainly serves Gunn High School and may be a financial burden for low-income families. Through the funding of this proposal, the City will help to subsidize monthly pass costs for those families. Expected Outcome Arastradero Road Typical Back-Up to Gunn High The proposed Palo Alto -Safe Routes to School Program is expected to reach 7,071 additional students,2,877 additional parents, and reduce VMT and emissions related to the school commute by 1,474 miles daily and 265,356 miles annually. In addition to reduced VMT and emissions the City expects the improvements will strengthen the community and improve the health of residents while at the same time installing an appreciation for alternative modes of transportation in its youngest residents. Page I 8 Palo Alto -Safe Routes to School Program VTA -VERBS Grant Program Proposal Reducing reliance on automobiles will: • Reduce auto/bike/ped conflicts and increase safety • Increase the physical health of students walking and biking to school • Increase students' readiness to learn (a result of increased physical activity) • Strengthen environmental stewardship • Increase time spent with peers while walking, biking and school pooling The City also expects greater participation from families where parents lack fluency in English and low-income families as a result of multi-lingual outreach. 2. Proposed method to evaluate the reduction in criteria pollutants and congestion. The City will evaluate the reduction in criteria pollutants and congestion by utilizing a parent survey and automated counters. The City will work with the Palo Alto Unified School District to administer parent surveys of travel behavior and modification resulting from the implementation of other proposed improvements. A "before" survey will be administered in Fall 2011 and will include questions asking about mode choice, frequency of mode choice use, distance traveled to school and knowledge of existing SR2S programs. This will establish a baseline for calculating Vehicle Miles Traveled, emissions and parent participation in SR2S programs. After implementation of new programs, an "after" survey will provide the data necessary to calculate changes in VMT, emissions and parent participation. Surveys will be available online via the City's and schools' websites and in hard copy in English, Spanish and Chinese to ensure the greatest reach. The City will purchase and install automated bicycle and pedestrian counters at all PAUSD schools in Fall 2011. Counters will continuously track data, which the City will analyze quarterly. After analyzing before and after survey responses and counter data, the City will have the data necessary to calculate the change in VIVlT and criteria pollutants. The City will apply standard ratios for criteria pollutants emitted by passenger vehicles calculated by the Environmental Protection Agency. Page I 9 Palo Alto -Safe Routes to School m VTA -VERBS Grant Program Proposal 3. Letters of Support for the project from school officials and any ancillary information that will inform the evaluation process. The City of Palo Alto has formed a local Safe Routes to School local partnership with the Palo Alto Unified School District, the Palo Alto Council of PTAs and the Parent Teacher Associations at individual schools. The attached letters indicate substantial support for the proposed education, encouragement and evaluation program, see Attachment B -Palo Alto Safe Routes to School Program -Letters of Support. The City of Palo Alto was designated as a Gold level Bicycle Friendly City in 2003, based not only on its well known bicycle facilities but on the commitment to bicycle safety education. Two current major engineering projects directly related to Safe Routes to School partnership goals include the Charleston/Arastradero Corridor Plan and the improvements to the Stanford Avenue/EI Camino Real intersection. In addition, the Capital Improvement budget includes $100,000 which is available each year for traffic calming projects in the public right of way near schools and along school commute corridors. The Palo Alto Police Department is a strong partner in this SR2S partnership. The traffic sergeant prioritizes enforcement around schools not just during Operation Safe Passage, but all during the school year. The Chief of Police sends home a letter to K-8 parents at the start of every school year (see the 2010 letter in Attachment B). SCORING CRITERIA Non-infrastructure Improvements The non-infrastructure improvements proposed by the City are described below. The proposed program improvements are: • Additional Half-Time City Staff Coordinator • Walking and Biking Route Maps Developed from Public Workshops • Official City Safe Routes to School Website • Monthly Walk and Roll to School Days • School pool/Ride Matching Program • Update Grade 3 Bicycling Life Skills Curriculum • Expand Middle School Bike Education • Parent Education Classes • Student-based Monitoring and Analysis • Evaluation of Reductions in VMT, Emissions, and Congestion Page 110 Palo Alto -Safe Routes to School VTA -VERBS Grant Program Proposal A. Identification & justification for the proposed project 1. Additional Half-Time City Staff Coordinator Expanded program: $75,000 Problem: City does not have the resources to expand and improve existing SR2S programs. Justification: Palo Alto currently funds one 0.25 HE staff person to support the SR2S activities. To administer the additional programs identified in this grant} the City proposes to add an additional 50 percent FTE dedicated to the new Palo Alto -Safe Routes to School Program. The additional coordinator time will allow the SR2S coordinator to take responsibility for managing the implementation of all of the strategies included in this memorandum} including Walk and Roll to School Days} School Pool} and in-classroom education efforts. The coordinator will be the City's primary point of contact at the schools and PTAs, and be responsible for quarterly reports on the success of SR2S efforts an~ for ensuring that all materials are translated into Chinese and Spanish in order to serve students equitably. 2. Develop Walking Route and Improvement Maps from Public Workshops New program: $175,000 Problem: Parents and students do not have a map with suggested walking and biking routes they can reference. Justification: The City proposes to develop walking/biking route maps for all elementary, middle and high schools in Palo Alto (17 schools). Maps would be developed collaboratively with school communities. The City would host a public workshop at each of the 17 schools, working closely with the school administration, PTAs, parents, and others to identify preferred routes and problem areas, and to review the maps. In addition to meeting with stakeholders to develop the maps, the City will inventory bicycle and pedestrian infrastructure around each school, note the quality of existing infrastructure, and observe operations at key intersections, including intersections with adult crossing guards. As part of this effort, the City will refine its establishment criteria process for assigning adult crossing guards, and evaluate school pedestrian and traffic volumes at existing and proposed crossing guard locations to determine if the locations meet City warrants. Page 111 Palo Alto -Safe Routes to School Program Walking/biking route maps will display the entire enrollment boundary of each elementary school, and will show a pre-determined walking/bicycling distance from each school (e.g half mile). The maps will display basic traffic infrastructure such as traffic signals, all-way stops, and crosswalks,. and will depict the suggested walking/bicycling route to school. 3. Develop Official City Safe Routes to School Website New program: $40,000 VTA -VERBS Grant Program Proposal Students can receive incentives, such as free hike helmets, for walking or hiking to school Problem: Existing City School Commute website is limited in scope and difficult for non-technical City staff to update Justification: Despite the success of the City's Safe Routes to School programs, it does not have a dedicated SR2S website. Community members currently reference a volunteer- developed SR2S website at http://saferoutes.paloaltopta.org/. The City proposes to develop a website specifically for SR2S/VERBS, which will also be available in Spanish and Chinese,. The City will work with the volunteers to ensure both websites complement each other. Formated to City standards, the website will demonstrate the City's commitment to reducing single-family trips to and from schools and the burden currently placed on volunteers. With grant funding, the City will be able to increase the utility of the website. The website will post SR2S events, a school pool matching form, bicycle and pedestrian safety tips and other related resources. 4. Monthly Walk and Roll to School Days New program: $35,000 Problem: The City and PAUSD promote alternative commute modes two times per year, but more frequent walk and roll to school days would more successfully instill sustainable commute habits among students and parents. Walk and RoD to School Days can build community around a school Page 112 Palo Alto -Safe Routes to School Program VTA -VERBS Grant Program Proposal Justification: The City currently supports International Walk and Bike to School Day and Earth Day as· special events for taking alternative modes to school. The City proposes expanding this type of encouragement activity by actively promoting and supporting monthly Walk and Roll to School Days throughout the school year at all elementary and middle schools in the Palo Alto Unified School District. Walk and Roll to School Days will be held monthly on a specific day of the week (e.g. Walking/Wheeling Wednesdays or Walk and Roll Fridays). Parents and school staff will greet and accompany students, and staging areas will be designated along the route to school where groups can gather and walk or bike together. These events will be promoted to families and the local community through press releases, articles in school newsletters, and posters and flyers for students to take home and circulate around the community. Walk and Roll to School Days will be further enhanced with friendly competitions, incentives, and prizes. Contests and incentive programs reward students by tracking the number of times they walk,bike, carpool or take the bus to school. Optional inter- classroom competitions reward the classroom with the highest percentage of students walking or biking with prizes, such as a class party, and "bragging rights." Smaller incentives, such as shoelaces, stickers, and bike helmets, will be used to increase participation. As a sub-program to Walk and Roll to School days, the City SR2S coordinator will work with parent volunteers to expand the "Pedaling for Prizes" program at both High Schools. In this program, prizes (including gift certificates and a raffle ticket for a year- end drawing) will be distributed on random, unannounced days to students who bike to school. This program resulted in excitement and "buzz" among students last year. The City will help organize parent volunteers and provide funding for prizes and promotional materials. S. Schoolpool/Ride Matching Program New program: $40,000 Problem: The City/PAUSD does not provide a ride matching program, which could substantially decrease VMT at schools with open enrollment. Page I 13 Palo Alto -Safe Routes to School Justification: The City, PAUSD, and PTA will develop an official schoolpool/ride matching program open to alli7 PAUSD schools. The City will place special emphasis on working with Choice Program schools, which have open enrollment, and the middle school where congestion affects morning commuters on Arastradero Road to identify ways of increasing alternative mode share. The school pool matching program will assist families. in finding other families in their neighborhood for carpooling, walking or bicycling together to and from school. The program will be promoted to families through a school mailer, newsletter, central website, and at back-to-school night and other official school events. Interested families will be matched based on their schools and their neighborhoods. Families can opt into the program if they are interested and will receive incentives for participating. A central website will allow families to register online, provide tips for getting started and maintaining school pools, and track reductions in greenhouse gases and miles traveled to local schools (similar to the Marin Schoolpool matching website ).1 Parents often have privacy VTA -VERBS Grant Program Proposal A schoolpool map matches families with other interested families who live near them. Walking School Buses are fun for students and alleviate parent concerns about safety. concerns, and the program and web interface will address these concerns. As part of the school pool effort, the City will provide training and support for walking school bus/bicycle train programs. Walking school buses and bike trains are organized neighborhood efforts that provide a fun way to walk or bike to school and ensure adult supervision. "Buses" or "trains" involve a group of children traveling to school together accompanied by one or more adults. As the bus or train continues on the route to school, it picks up students at designated meeting locations. These efforts will partner well with Monthly Walk and Roll to School Days. Students walking or biking together can decide on a name or mascot for their walking school bus or bike train and feel a sense of community pride. Students can also receive small incentives for being part of the bus or train. 1 Marin School Pool website: http://www.schoolpoolmarin.org/ Page 114 Palo Alto -Safe Routes to School Program 6. Update Grade 3 Bicycling Life Skills Curriculum Expanded program: $40,000 VTA -VERBS Grant Program Proposal Problem: The instructional materials used in this program incorporate age-appropriate risk reduction training but are now dated and need replacement. The instructions for the customized on-bike event and the parent outreach materials need a graphic update and web-based interface. Justification: Third graders in Palo Alto currently receive three bicycling skills lessons: an in-classroom video and discussion about bike safety basics, a grade level presentation by a Palo Alto firefighter about how to deal with specific hazards faced by young cyclists, and a bicycle rodeo event during class time with five safety training stations (or six stations at the larger schools). This effort continues to be a priority for the City, but many of the educational materials are outdated. In particular, the bike safety video is from 1990 and is only available in English, and new sets of props are needed for the bike rodeo. Through this grant, the City will work with teachers and school district curriculum development specialists to identify suitable replacement materials and ensure that they are age-appropriate and fulfill state and national curriculum standards. A web site accessible to teachers, PTA volunteer coordinators and parents will be created to facilitate the staging of the bicycle rodeo, as well as providing parent outreach materials in English, Spanish and Chinese. 7. Expand Middle School Bike Education Expanded program: $80,000 Problem: In-classroom education stops after sixth grade, just as bicycling mode share peaks and as students are required to travel longer distances to school. Middle school bike skills classes are available for a fee, but do not reach a large audience, and are not accessible for low-income families. Justification: The City of Palo Alto Community Services Department currently offers a Middle School Bike Course through the recreation program. Instructors certified by the League of American Bicyclists teach youths how to be responsible, safe and legal bicyclists on neighborhood streets, covering traffic law, lane positioning and intersections. Bicycle inspection and helmet fitting are followed by skills practice and a four-mile neighborhood In~classroom education reinforces hands-on skills learned in previous grades. Page I 15 Palo Alto -Safe Routes to School Program VTA -VERBS Grant Program Proposal ride with immediate feedback on technique. The program is comprehensive and well- received, but until now the City has only been able to offer four to six courses per year, In addition, because of the fee involved, it is not equitably accessible to all families. Through this grant, the City will collaborate with the PAUSD Middle Schools to integrate the Middle School Bike Course into the physical education curriculum with the goal of reaching all middle school students in the Palo Alto School District. 8. Parent Education Expanded program: $25,000 Problem: Many parents lack the skills necessary to teach their children bicycle and pedestrian skills. The elementary parent education program includes valuable information for parents of bicyclists up to age ten, and is provided twice annually through the PTAs, but only reaches 50-75 parents each year. In comparison, 4,500 students bicycle to Palo Alto's schools each day. Justification: A local League of American Bicyclists-certified instructor offers a "Bringing Up Bicyclists" class for parents or guardians of children up to age ten. The goal of the class is to give parents the information they need to teach children to become safe and responsible bicyclists. The course covers developmental abilities and limitations of children that affect cycling abilities, common mistakes made by children when bicycling, basic bicycle skills that are appropriate to teach elementary-aged children, and how to evaluate a child's current bicycling skills and abilities. The course also covers helmet selection and fit, bicycle selection and fit, and includes a viewing of the video "A Kid's Eye View." This grant will allow the City and PAUSD to offer and promote a "Bringing Up Bicyclists" class at each of the twelve area elementary schools. 9. Student-Based Program Monitoring and Analysis New program: $100,000 Problem: Hand-tally counts by classroom teachers and summarized by the City provide a snapshot of mode share and program participation twice a year, but an extended monitoring program does not exist. Justification Collecting bicycle and pedestrian count data at all schools can provide valuable information about program participation over time, and count data can be used in a variety of innovative activities to encourage students to bicycle and walk. The City will purchase and install infrared counters at every school to establish baseline bicycle and Page 116 Palo Alto -Safe Routes to School Program VTA -VERBS Grant Program Proposal pedestrian counts. These data will be used to monitor daily activity, as well as activity during special events, such as Walk and Roll to School days. As part of this program, the City will provide resources to integrate data collection and analysis into math and science curriculum at the middle schools and into high school statistics or environmental science classes. Students will track walking and biking volumes collected by the counters. They will use the data to learn about the health and air quality benefits obtained from walking and biking to school, by calculating calories burned and pollutants avoided. The count data will also be used for encouragement events. For example, a school could set a target pedestrian/bicyclist goal. If made available on-line, the count data could allow parents to track school progress toward a goal or contest, and the data could be used as a feedback tool to encourage students and parents to walk or bike to school. These data would make it possible, for the first time, for the City to modify the implementation of programs based on the data and analysis in a timely manner. 10. Evaluation of Reductions in VMT, Emissions, and Congestion New program: $50,000 Problem: The City currently conducts annual classroom hand-tally counts in elementary schools and bicycle counts at secondary schools to monitor the effectiveness of the programs to encourage alternatives to solo driving to school, but has not collected the information required to estimate reductions in vehicle miles traveled, emissions, or congestion. Justification Two goals of the program improvements are to reduce school-related vehicle miles traveled and associated emissions and congestion. To understand the effectiveness of a program, it is necessary to monitor and evaluate any changes in VMT. The City will evaluate program effectiveness in reducing VMT with parent surveys and collecting walking and biking volumes from installed automated counters. These two data sources will allow the City to compare travel behavior "stated" in parent surveys with "observed" behavior collected by counters. The City will work with PAUSD to develop and administer multi-lingual (English, Spanish, and others as needed) parent surveys, which will be available online or in hard copy. Survey questionnaires will ask about school access/egress mode choice, mode choice frequency and distance traveled. In addition, the questionnaire will ask about parent Page 117 Palo Alto -Safe Routes to School Program VTA -VERBS Grant Program Proposal B. New or increased number of students/ schools / school grades anticipated to participate Current figures show that 5,180 students participated in PAUSD SR2S education programs in 2009-10. Table 1 lists the in-classroom education available by grade and the number of participating students. The City expects the proposed improvements to significantly expand the program, as described below. Table 1 In-Classroom Education, 2009-2010 Number of Grade Program Responsible Party Students (2009/2010) K Pedestrian safety class seminar and Safe Moves 875 1 Pedestrian safety participatory Safe Moves 920 2 Pedestrian safety participatory Safe Moves 834 3 Bicycling life skills-three lessons: Classroom teachers 862 • Class-based discussion and Palo Alto Fire Department video: bike safety basics Parent volunteers • Key traffic skills for cyclists Palo Alto Medical (grade level assembly) Foundation • On-bike event: students Stanford University rotate through 5 stations Cycling Club 5 BikejTraffic Safety Refresher Palo Alto Fire Department 840 Grade level assembly, with PowerPoint & "The Bicycle Zone" video 6 Making Safe Choices: Drive Your Bike Rich Swent, League 859 Middle PowerPoint Certified Instructor School with Silicon Valley Bicycle Coalition Total 5/180 Table 2, on the next page, details estimates of the number of new students reached by each program, and the associated reductions in vehicle miles traveled. The City estimates the proposed programs will reach 7,071 new students and 2,877 new parents. Page 118 Palo Alto -Safe Routes to School VTA -VERBS Grant Program Proposal Table 2 Number of Students Reached by Proposed Progroms Proposed Program Improvement Develop Official City SR2S Website Monthly Walk and Roll to School Days School pool/Ride Matching Program Update In-Classroom Education Video for Grade 3 Bicycling Life Skills Curriculum Expand Middle School Education Parent Education Develop Walking Route and Improvement Maps from Public Workshops Student-Based Program Monitoring and Analysis dents reached by new s Total parents reached by new 1. Air Quality Improvements Estimated New Students/Parents Served Notes Assumes 10% of 11,847 enrollment uses 1,184 parents website Assumes walk and bike mode share at elementary schools increases from 50% 1,915 students to 85% percent on WBTSD. Focused effort on choice schools (1,500 1,500 students enrollment). Predicted number of third graders in 930 students 2011-12. 2,636 students Enrollment at middle schools (2,636). Assumes 25% of parents at elementary 1,368 parents schools are reached (5472 enrollment). Assumes participation by 25 parents at 325 parents each of 13 elementary schools. Assumes participation by 3 high school science/math classes of 30 students 90 students each. 7,071 2,877 The proposed improvements will expand reach to 7,071 new students. Based on 2006 mode share data, it is safe to assume 40 percent of students attending neighborhood schools and 48 percent of students attending choice (open enrollment) schools ride in single-family vehicles: 2,948 students. This represents the target group that may switch to alternative modes as a result of the program improvements. The City estimates that 10 percent of the target group will shift to biking and walking and 10 percent will shift to carpooling. This will result in walking, biking and carpool trips replacing 1,474 motor vehicle miles on a typical school day. This is in addition to the approximately 9,000 miles already walked, biked or skated by the 4,500 students who currently walk, bike or skate to school. The total annual VMT replaced as a result of the improved program will be 265,356 miles. Page 119 Palo Alto -Safe Routes to School Program VTA -VERBS Grant Program Proposal The proposed parent surveys and counters will provide data to replace the assumptions mentioned above. The table below shows our calculations. Table 3 Estimated VMT Reductions Resulting from the Proposed Program Improvements Total students reached by new programs 7,071 Total parents reached by new programs 2,877 Assumes 40% mode share for Number of students reached who neighborhood schools, 48% SOV mode currently take SOV to school 2,948 share for choice schools. Number of students who will shift Assumes 10% mode shift to walking and to walking and biking 295 biking from SOV due to new programs. Number of parents who will shift Assumes 10% mode shift to carpooling from SOV to carpooling 295 from SOV due to new programs. Assumes 2 mile round trip distance for walking/biking and 3 mile round trip Daily VMT Replaced 1,474 distance for carpooling. Total Annual VMT Replaced 265,356 180 day school year. Note: mode share estimated based on Palo Alto's 2006 hand-tally data. 2. Multi-Agency Collaboration Palo Alto's SR2S program has been a collaboration between the City, Palo Alto Unified School District, and the Parent-Teacher Associations. Their collaboration was formalized in 2005/2006 when the Executive Board of the Palo Alto Council of PTAs, the Palo Alto School Board, and the Palo Alto City Council formally endorsed the National Safe Routes to School Partnership Consensus Statement. In addition, Transportation staff from City's Planning and Community Development Department have collaborated with the Palo Alto Fire Department, Police Department and local instructors certified by the League of American Bicyclists to deliver in-classroom bicycle and pedestrian education to students at the City's twelve elementary schools and three middle schools. Two mUlti-agency advisory bodies weigh in on SR2S matters. The City/School Traffic Safety Committee is the official advisory body to Palo Alto Unified School District and the City of Palo Alto and meets monthly. Membership consists of two City staff members (from Transportation and the PAPD), two PAUSD staff members (one representing the District Office and one representing the principals), and three PTA traffic safety representatives (one each from elementary, middle and high schools). The City/School Liaison Committee is composed of two City Council members and two PAUSD board members, and meets Page I 20 Palo Alto -Safe Routes to School Program VTA -VERBS Grant Program Proposal monthly with the Deputy City Manager and the Associate Superintendent. Once or twice a year the agenda includes an update on Safe Routes to School programs or specific locations of concern. 3. Local Match The City will provide a 20 percent match for the project in the amount of $132,000. 4. Innovative Public Outreach/Education The City has successfully implemented 10 years of SR2S programming and is proposing a variety of innovations to tap even more potential walkers, bikers and carpoolers. At the heart of each program is the desire to improve quality of life in Palo Alto, which includes reducing VMT and improving the health and safety of students. Calculating the benefits from VMT reduction and increased walking and biking is not just a task for the City. Students learn valuable concepts in environmental stewardship when they are able to apply their studies to real world scenarios. The City will work with PAUSD to integrate automated counter data collection into appropriate classes at middle and high schools. Not only will the students learn how many calories their peers burned or how much greenhouse gas emissions they prevented on their way to school, but they could also engage in spirited competition to see which school makes the most walking and biking trips. Public outreach is the only way to meet the needs of residents. The City proposes an intensive set of multi-lingual outreach strategies. If awarded the grant, the City will host public workshops at each of the 17 schools. Workshops will include multi-lingual materials and, where needed, translators. The parent survey will also collect valuable information about parent concerns and desires that will help successfully implement a school pool program. The schoolpool program will employ an innovative strategy to improve the effectiveness of walking school buses and bike trains. While most schoolpool programs just match families according to home addresses the City will train neighborhood "champions" (parents who volunteer to lead a group of children from their neighborhood) how to safely commute with a group of children. The community already has many champions ready and willing. In addition, the City will expand training to teach parents how to teach their children safe biking and walking skills. This innovation addresses the need to encourage parents to be positive role models for their children. Page I 21 Palo Alto -Safe Routes to School Program VTA-VERBS Grant Program Proposal 5. Project Readiness The City demonstrates project readiness by offering 20 percent matching funds and confirming support from Palo Alto Unified School District. In addition, the City has an existing communication network both at the policy level through the City-SChool liaison Committee chaired by elected officials from the City Council and the Palo Alto School Board. At the staff level, the City has an existing City-School Traffic Safety Committee made up city, school district, and PTA members. Both of these boards will assist the City is developing criteria and projects through the program and to implement them within the time constraints of the grant. Page I 22 Palo Alto -Safe Routes to School VTA -VERBS Grant Program Proposal Attachment A Palo Alto -Historical BikelPed Collision Map 2003-2008 hd .. "liInorBlqdbtColli.loM{200HG08) • lCblfism • HCoillloo! • 7·11W11i1ion. Sc!io9l Pail: ~ PAlOAllQ Attachment B Palo Alto -Safe Routes to School Program -Letters of Support Letters of Support for the Palo Alto -Safe Routes to School Program are provided from the following entities: Palo Alto Police Department (Lt. Mike Denson, Traffic and Parking Manager) Palo Alto Unified School District (Robert Golton, Co-CBO and Bond Program Manager) Palo Alto Council of PTAs (signed by President Terry Godfrey, and Boris Foelsch and Stefan Rosner, co-chairs of the Council of PTAs Traffic Safety Committee: School PTAs: o Addison Elementary School PTA o Duveneck Elementary School PTA o Escondido Elementary School PTA (includes principal Gary Prehn) o Walter Hays Elementary School PTA o Hoover Elementary School PTA (includes principal Susanne Scott) o Nixon Elementary School PTA o Ohlone Elementary School PTA o Palo Verde Elementary School PTA o Jane Lathrop Stanford (JLS) Middle School PTA o Jordan Middle School PTA o Terman Middle School PTA o Gunn High School PTSA o aalo Alto (Paly) High School PTSA -Additional letters: o Richard Swent, League of American Bicyclists Certified Instructor o Lisette Narragon, President, Greenmeadow Communi~y Association, Inc. Ms. Celeste Fiore Valley Transportation Authority Programming & Grants 3331 N First Street, Bldg B2 San Jose, CA 95134 Dear Ms. Fiore, C~lY-of Palo Alto Police Department May 13, 2010 I am writing in support of the City of Palo Alto's application for Valley Transportation Authority (VTA) Vehicle Emissions Reductions Based at Schools (VERBS) funding for non-infrastructure improvements. The Palo Alto Police Department participates actively in our local Safe Routes to School partnership and gives high priority to ensuring the safety of students on their way to and from school throughout the school year. In addition to enforcement of our traffic laws, we fund adult crossing guard positions at 29 intersections in our City and monitor the guards on duty to be sure they are using the proper procedures to help students cross safely. Our officers also spend time on the streets reminding secondary students to obey stop signs and other safety regulations, including wearing properly fitted helmets. When that reminder is not suffiCient, they issue citations that may be cleared through the county's juvenile diversion program, a.k.a. "bicycle traffic schoo!." More broadly, we believe that when law enforcement is supplemented by traffic safety education and <eflgineering-improvements, in addition to programs that encourage alternatives to driving solo and reduce congestion around our schools, our streets are safer. For this reason,our:officers lead the Driveway Station in the third grade bike rodeo at elementary' schools each fall, teaching the basics of how to enter the roadway safely. Our traffic sergeant takes an active role in the City/School Traffic Safety Committee which initiated this collaborative Safe Routes to School effort. See -the attached letter to parents from the Chief of Police that went out at the beginning of the school year for additional evidence of our partnership with the schools and the community. . This application for VERBS non-infrastructure funding would strengthen the education and encouragement components of Palo Alto's Safe Routes to School partnership, but it would also provide an important opportunity for thorough evaluation of our results. I heartily recommend that you support the City of Palo Alto's application for VERBS grant funding. . Printed with soy-based inks on 100% recycled paper processed without chlorine Sincerely, ~~~~ Lieutenant Mike Denson Traffic/Parking Manager 275 Forest Avenue Palo Alto, cA 94301 650.329.2406 650_329.2565 fax 650.617.3120 Administration fax CitY-of Palo Alto Police Department . August 2010 Dear Parents of-Elementary School Students, The Palo Alto Poiic~ Department is a strong supporter of the local Safe Routes to School Partnership and its goal of creating a community environrilent that encourages more families to walk and bicycle to school. We invite you to join the City of Palo Alto, the :palo Alto Ul1.ified ' .... Sclido1 'Dismcf(P AUSDyaiid:PalcfAJto Cotlficilof PTAs' ifiom ongoing' efforts to ensure' a safe school commute for your child and all students in our comrilunity. During the times when about half of all P AUSD students are getting to and from school by foot, on bikes or in buses and carpools, the Police Department Traffic Team prioritizes traffic enforcement on school commute routes .. We target speeding, red light running, faHl.lre to yield at stop signs and crosswalks and other safety violations around schools throughout the year. . The department also provides thirty Adult Crossing Guards at qualified school commute crossings, and participat.es in periodic county-wide "Operation Safe Passage" campaigns to crack down on school zone traffic violations. Educating young children in how to walk and bike safely is also important, and I'd like to ask for your help. The Police Department assists other Safe Routes to School partners in providing in-school traffic safety education to your child, but these skills must be regularly practiced in ord~rto become habit. See the reverse side of this letter for a list of key safety tips for cyclists, . pedestrians and drivers. Please review this information with your children. If you make these safeprl;,\ctices part of your daily school cOIluilUte, your children will learn safe street skills that will last a lifetime. Safety along school commute routes is also facilitated ifparents reduce traffic congestion by choosing an alternative to driving solo to school whenever possible. If walking, biking or taking th'e bus is not feasible for your children, we urge you to consider carpooling, especially on rainy days. Look for information on "Walk & Roll" eyents during the first week of October. No matter how you choose to travel to school, I encourage you and your'children to always share the road safely with other students and parents. Please use extra caution and try to arrive early to avoid the last minute rush in the morning. Remember that the maximum legal speed in a school zone is 25 miles per hour, and that using seatbelts and booster seats save lives. If you have any particular traffic questions or concerns, please contact Sgt Robert Bonilla at (650) 329-2683. Let's all work together for a safe school commute in Palo Alto in 2010~ 11. Printed with soy-ba..,d inks on 100% ,ecycled pap"' processed without chlorine Si~~ Dennis Burns Police Chief 275 Forest Avenue Palo Alto, CA 94301 650.329.2406 650.329.2565 fax 650.6173120 Administration fax Bicycle Safety Tips Be predictable.' This means following the same rules of the road as car drivers do when riding your bike. Avoid crashes as well as traffic tickets by obeying ALL stop signs, traffic signals, and other traffic laws. Ride on the right, moving in th~ same direction as traffic. Wrong way riding is extremely dangerous. If th,ere is no bike lane, ride as far to the right as practicable. Stay visible to traffic by not weaving in and out of parked cars. Wear your helmet and buckle it every time -it's the law. To best protect yourbrain, your helmet must fit properly: snug and level on your head, just above your eyebrows. Make eye contact with drivers -especially at intersections and driveways. Don't assume that drivers see you! Watch for right·turning cars by checking over your left shoulder. Be alert and visible. Watch out for doors being opened from parked cars, cars turning left or right, and cars coming out of driveways. Avoid riding on sidewalks ." you are most visible in th'e roadway with other vehicles. You always have the option of getting off your bike and becoming a pedestrian. Consider this if the intersection is especially crowded. Move out of the stream of traffic, get off your bike and walk it in the pedestrian crosswalk. Obey adult crossing guards or the safety patrol. They are there to help you cross'congested'intersections safely. ,Do NOT carry things In yqur hands. You should secure anything you need to carry on your bike rack or basket. Keep your backpack snug, not dangling low on your back. Pedestrian Safety Tips Be alert. look for cars coming from all directions before entering the street -including from behind you. Don't assume drivers see youl Make eye contact - especially at intersections and driveways. Obey adult crossing guards or the safety patrol. They are there to help you cross congested intersections safely. Be predictable. Do not make sudden moves that place you in the path of oncoming vehicle traffic. Wait until it's your turn at traffic signals. Cross at corners. This Is where drivers expect to see you. Crossing mid-block is hazardous as well as being illegal near traffic signals. , At intersections with traffic signals, start crossing with the white WALK symbol only. Do not start to cross once the red flashing hand appears -. wait for the next light cycle. _ PARENTS: Help your student learn how to use our streets safely. Help your child choose the best walking or cycling route •• it may not be the same way you would drive in acarI Children who regularly practice safe walking and biking with their parents are more likely,' to make safer choices as teenagers. Driver Safety Tips Always observe the 25 mph maximum speed in sch091 zones. , Obey'''No Right Turn on Red" signs wherE~ posted at school intersections. This allows children to cross safely without , cars turning through the crosswalk. Set a good safety example by following instructions of crossing guards. Also: • Yi~ld to pedestrians in crosswalks. • Avoid making U-turns and other unsafe maneuvers. • Don't double park. Avoid blocking red curbs or disabled access ramps. • Ma'ke sure your child gets out of your car on the curb side, not near traffic. • Use booster seats to make adult seat belts safer for children younger than 8 years old or under 4'9" tall. Be aware of school commute routes. ' Children walking or blking to school help reduce traffic congestion -give them a brake and use extra-caution. Young children think that cars can stop instantly, and may not be able to judge speed or distance,of vehicles moving toward them. Try to carpool whenever Possible to help reduce the congestion around schools. Don't rush -leave home a few minutes earlier instead! Report ALL cra~hes involving .studerts to the PAPD at 329-2413, even if there are no injUries. Also contact your school office to fill out the PAUSD incident report form. For more safe routes to schOOl information, see the PTA Council Safe Routes web site: http://saferoutes.paloaltopta.org "~();~tQ: ~WI~»:$COO4)~ll~:rJncr ~.~G~Hitl~~¢ff~e • PaloA:lJO, eA:9.430.1l T:cl~~~d.~e;, ~~'1»:32~-3.:2$Q (F,M(f l~S.Q) 129-3803 I am.~,onbtdtllfofPat6 A1teUtiified Stlheol~'Distrlet in S~PQrt'ofthe City~f'P~J~Alto4§. . .... , afimrf(}r VaJl'ef' 'l'i:~lt9r4ti~J):J\:w~QrlJY JYr.~ 1!e,~fcre ..'mi8$Jf)1i6"1Wtl¢tiQ1J$lJ.q~ftdiitS(JhQQls .: 'R&.f~~g:toJtn:()ntinth1stru:ctul$~itnpt(09elneJ\ts. . . . :mlt~Q~,~006; thell~.at.d llfEuu(!!ltif:)u:QLthe:J:ltdu AltotIrtifieaScliliol Uisti;iCtend0t.sed the'Safe J.\alitesie S&hQ'Qt'NjiliQMt:P.am~rsb'ip wifll·the!City. of'PalnA:ifol8;td ~beJjalQAltQ ~<mnp.U ~f'PTN. O~f ,shared(goal istosusffMg a~ity/&.~n~qllc~~jfy ,~rJ;r1~hjp t.Q'teauc~ dsks to $!ud~nts'tn routeto flnd, 'from 50M~1.1.ljiS:,PQttn~t&lliP' i'$:lfafiijti0fj1h~S E's~ B4uQitio~~;EneoUl'a.semen\'Bnf6rcement, :Bngme.et~~.:antrEv:a.tualiOn,pro.grams.,. {)uf.'Di$'tliol is«JoogytfmfiJ?itmer~w.ithtbeCl1y of-Palo Alto:otl'lraffiearrd P~~~!M.t !l,tla':lin~.~ $#~~~; ;Our;enrofJment has i~r~;~ss~th(lJy-~~'y~ar ~lll9~,l~~'M4.,tllt~r.~to~. ·th.,:m:mtb.etofpateJit . • (ftlv'f$·a'lSo m.'i((~~.'fhe;e1ltY _ ~eel11m.\iri'filuableFartner4amifilatin&1h'e1Taroc'im;pa~atW· 4llsDjn.encoura~g;'b1c~cle:thtnsportatiOnasan, ;. W~!.r~9.~tb~jlr,1b\vy'~iJ«~nt_'w'ehl!;y,e . se,6(1:Jro:~tol1lti~g gt'~wtlHn'tIi~ num~:Q.f~tu:denti 'lh~:l?ar~lttst)iEi~tfu:.;l0scnodL ls,hould adtiPtturt:an,importanti'\{~hi~letortlli~ pat1l'ter$hiRis.l~e:Git.y/$ohotii ~Tt4ftl{; ;SitfetyCoblifjittee. 't~f$:~mrti.tt.J::~;'nt~ll.itfQtdb:t~ d.uring'tke.:acliool:year.8nil"cdbSisfs,:o'fa representative ;fronl~:City, ~transpo:r.tation:departmentf uepJI.esentativ..e·:frQIP fue :'Ppli~;"'l\rtm~t 1( t~p:t~$\tn~ti'Ye,fu:jflj8Gho:iS1 ])imlp.t !t4m'i~i4iQq; a;$,-qh~QltlrbWi"pll}. ~~t1tht~ ~l.tJY~S';:WQiit tile PTA's traffic safety board. l'fu,;:.ct)b.lmfttee-~s fnvli!uabJe·i1iJle.lp,mgto resolveimttic is&uesl'~~:tb\~ltI 'tb:e.'~~'and In 'enron~"tl~ .. , Tit~'a'r.'-engll.g~A *l~s~ 4n ~y~~$lI~lt~~: ~l'~fu:Alt~ WarU:-AQ'd'ltol1'sieVetl'flb eftctillOlie "~.f1'''''~1ies;+: .?ihm;ij' .tf>~ftiiaHM$10:Jr,l:'(i,+",-01t6 ,1 .m!J • .,. ,~d,.,l ",(t'l< ..• S" ... w~~ ..... \ ........ P ~T-:qg.w8,.o. il~·nw9.ing;" ..jJi(S,gt@fwqul.d';;~Qfl$pltaatdnc;istlccj$S~:S Qfth1s:$ateR~u~stOSGho01 p.artoersltlR 'and t\e'lPus4 :ilriproMe'theet!utaatian cm:pedestrian.and&i . . ;fti;l~bl~ tQ ptU:v~fitd~t1ts:llttd 'their parents_ Otb~ ¥ljl\la1>l~ UJj~~tv.e~ mt;lQ.pil 4~Y~1j)ptttB'W~t . . -·n.g:mttte, maps fot eVery ~¢hQttl i~te..,~i;eatlng a~centmi 8afe.Ri)ljbj$ to Sehool,webSite;and'pr,oyttiing!,greatet in.~iivesf'ot ·participaiion -iilWfilk: and 'Roll-to Schooley~, I s6:onglY.~Jltage y~u t~S"Ppprt ih¢City l)f~hlQ Aitq'$\tlp))Uca;t1onJbrVWRB:$ gt'a»tbid~t. Sine.r~ ,,;4:{.,I;1&' R.ob.ertR notton tGe£IlOt\ B()nd1?f~gralj\ ~ai'lf;\get September 27, 2010 Ms. Celeste Fiore Valley Transportation Authority Programming & Grants 3331 N First Street, Bldg B2 San Jose, CA 95134 Dear Ms. Fiore, Palo Alto Council PTII® everychil!:l.onevolce. Palo Alto Council of PTAs 25 Churchill Avenue Palo Alto, CA 94306 www.paloaltopta.org I am writing on behalf of Palo Alto Council ofPTAs in support of the City of Palo Alto's application for Valley TranSportation Authority (VTA) Vehicle Emissions l,?eductions Based at Schools (VERBS) non·infrastructure funding. In Palo Alto, the PTA participates in a Safe Routes to School Partnership with the City of Palo Alto and Palo Alto Unified School District. Our shared goal is to create and sustain a city/school/community partnership: . to reduce risk: to students en route to and from school • to encourage more families to use alternatives to solo driving more often The funding from this grant would help our partners at the city tie together various existing Safe Routes programs under one umbrella and bring materials up to date so we can develop and disseminate consistent information citywide, identifY best practices for traffic safety improvement deployment on school routes throughout the City, and help us to continue to grow the number of students that walk/bike to school. The Palo Alto Safe Routes to School Partnership implements comprehensive Education, Encouragement, Enforcement, Engineering and Evaluation programs. These programs have bel?n evolving in Palo Alto for over a decade. Based on recent record bike counts at our secondary schools and improving trends for alternative transportation modes across the district, these progriuns have been successful. Nonetheless, in recent years, we have faced new challenges. As Palo Alto expands infill housing, funding to mitigate transportation impacts of this growth has been inadequate. Public streets and parking on and around our school sites cannot safely accommodate significant increases in auto volumes. It is critically important thatwe continue to increase the percentage of alternative mode school commuters in order to mitigate potential safety impacts of higher trip volumes as enrollment rises. The Palo Alto Council ofPTAs strongly encourages you to support the City of Palo Alto's application for funding. Sincerely, T~~S ~ Boris Foelsch, 2010·11 Co-Chair Palo Alto Council ofPTAs Traffic Safety Committee ~20IO-ll eo.c '. Palo All 82/25/213136 22:44 651:13223:3136 ADO'SON ~RY SCUOOJ.. f7fl- l-' I\lIJ ALTO U]IU1IlSI) SCHOOL DlS'J.'IUCT 650 AOOISO:\ll AVBNOS PALO ALTO. CALIf!ORNlA 94a01 Soptelnbef 26, 2010 MI. 0I1ostc Ftore vancy Transportation. Authority Pro,sramming" Grlmll 3331 N Plut Stl'Oot, Bldg B2 s.a Jon, CA '51'4 Dear MI. Flore, ADDISON ELEM SCHOOL I "m writing Qft behalf fit lIIe Addison Elementary Sobool nA in mpport o(ebe City ofPato Alto'" llJ'PIiCitft:m fur Valley Transportation Authority (VT A) YMlele Entinl""!t R~ 803M QI Scltwls (VERBS) IIOD-l.DfiutIuct\l:re wuding to slNfJgthoa Palo Alto Sa& Routes to School programs. . The Palo Alto sate Routes to Sc1loo1 PartIICfiblp Itoplerlllmts comptCherilli'llc Bducaticm, BnCOUfllloment, EnfOrctrileRt. Engineering and Bvalvatkm proarama. OUr schoairesulllfly pI'OmOl1I$ ,...Iking. blklnl_ rollin, to school Ad holds .. yearly Bike R~deo fur 3111 Graders mr bike iIIfaty. Those PI'OIPRIIJ have btIIn . wolvln& in Palo Alto for over a deoade. Belled on fCCUlt ~ bikl: counts lit tntf ~ schools ancJ imp{oving t\'Oft& for l1tcmarivc 1l'IInSp000000on modes aCfClll! the di&trlcr. tbcso ptopurI. haw been lIucccaful. ne fllRding &om this pint would hotp tie together'tlanOUll oxtsting Safe ROQ* to School p1.'08W\t. under ont umtmlU. III'Id bl'inglJllteriaie \IP to date M) we em develop GIld clfalilamil11l1c coufetont fafbrmatfon cityWide. tdontilY bert pracdca ff!(' uaftic eatety dcploym_ O1leobooll'Oult.1I throusttout die City. anel help IItI oontlnuo to grow the numb .. of stwhml8 ht walkJbike to school. It i$ critically lirtportBl\t.at we continue to inc:roaae tho ~ ... o of.ltemlltiva mod; school commUUl('S t" order 1.10 mttlp .. potlmtltlllmptOls of'biab=r trip volumt:lllllll fWOItniaftt in our dlRldl:t r1sos. . The Add"OD Btemotltary School PTA wongly enooumgc$ you to support the City off.lo Alto's application for grant ftltlellnc. PAGE ElllBl PALO ALTO UNIFIED SCHOOL DISTRICT DUVENECKELEMENTARYSCHOOL· 705ALESTERAVENUE • PALO ALTO. CA94303 (650) 322-5946 September 29, 2010 Ms. Celeste Fiore Valley Transportation Authority Programming & Grants 3331 N First Street, Bldg B2 San Jose, CA 95134 Dear Ms. Fiore, I am writing on behalf ofDuveneck Elementary school and we are in support of the City of Palo Alto's application for Valley Transportation Authority (VTA) Vehicle Emissions Reductions Based at Schools (VERBS) non-infrastructure funding to strengthen Palo Alto Safe Routes to School programs. The Palo Alto Safe Routes to School Partnership implements comprehensive Education, Encouragement, Enforcement, Engineering and Evaluation programs. W~ have a very busy street by our school and with the safety programs we have used in the past this street is safer for our children. These programs have been evolving in Palo Alto for over a decade. Based on recentiecord bike counts at our secondary schools and improving trends for alternative transportation modes across the district, these programs have been successful. The funding from this grant would help tie together various existing Safe Routes to School programs under one wnbrella and bring materials up to date so we can develop and disseminate consistent information citywide, identify best practices for traffic safety deployment on school routes throughout the City, and help us continue to grow the number of s~<;lents that walklbike to school. . It is critically important that we continue to increase the percentage of alternative mode school commuters in order to mitigate potential impacts ofJ:tiglier trip volwnes as enrollment in our district rises. The Duveneck PTA strongly encourages you to support the City of Palo Alto's application for grant funding. Kim Robins PTA Co-President Duveneck Elementary School September 28, 2010 ~s.<JelesteFiore Valley Transportation Authority Programming & Grants 3331 N First Street, Bldg B2 San Jose, CA 95134 Dear Ms. Fiore, Escondido Elementary School PTA 890 Escondido Road Stanford, CA 94305 650-856-1337 We write on behalf of the Escondido Elementary School administration and PTA in support of the City of Palo Alto's application for Valley Transportation Authority (VTA) Vehicle Emissions Reductions Based at Schools (VERBS) non-infrastructure funding to strengthen Palo Alto Safe Routes to School programs. The Palo Alto Safe Routes to School Partnership implements comprehensive Education, Encouragement, Enforcement, Engineering and Evaluation programs. These programs have been evolving in Palo Alto for over a decade. Based on recent record bike counts at our secondary schools and improving trends for alternative transportation modes across the district, these programs have been successful. The funding from this grant would help tie together various existing Safe Routes to School programs under one umbrella and bring materials up to date so we can develop and disseminate consistent information citywide, identify best practices fOr traffic safety deployment on school routes throughout the City, and help us continue to grow the number of students that walklbike to school. This is especially important in the Palo Alto Unified School District (P AUSD) as several sites house "choice programs" (such as the Spanish Immersion program at Escondido Elementary School) which have wide attendance boundaries. It is critically important that we continue to increase the percentage of ~lternative mode school commuters in order to mitigate potential impacts of higher trip volumes as enrollment in our district rises. The Escondido Elementary School administration and PTA strongly encourage you to support the City of Palo Alto's application for grant funding. Sincerely, G"~~tI'n -f ~o E-..y S~OI ~~ President, PTA, Escondido Elementary School Stefan R sner 2010-11 Traffic Safety Representative (TSR), PTA, Escondido Elementary School 2010-11 Co-Chair, Palo Alto Council ofPTAs Traffic Safety Committee Sap 2810 11:10a WALTERHAYSELEMENTARYSC 6503298713 p.2 Walter Hays Elementary School 1525 Middlelleld Road • Palo Alto. CA 94301 • Tet (650) 322·5956 • Fax (650) 329-8713 • www,hay$.pa~.org PrtnoipIII Mary Sunmann ""'A~"'" .......... Cannen MuIIO% Chappuis Angie Cole CofMnu~. Apama Aml)erkar AnllJaLele ea ...... unlt,y .... _ Debbie Ellisen HedlerJalllle CONVaIuu Mimi Gasich Lyons ..... COfleeII Gormley JacldeWaill 'u ........... JoyI)eCba AmandaPaIk IIIHdth ..... a.r.ty M8laclie NOfali ................. Kristin Major SlcIiano P"'FMlS Jennie 8emhe1m HartWelsb "cl'WUry MoIrBrusy st.Mfu.IMn Heidi Ke..cher Me tIDwIoII JenAmout Abbr BradskI Lynn Brown Mary Bussmann HalenCemet 'Gabriele Conway Oana FellWfck Irina Gorelik Smila KI:IIha1Icar Nancy Re,noIds l.aurle StIea September 27, 2010 Ms. Celeste Fiore Yalley Transportation Authority Programming At Grants 3331 N.First Street, Bldg B2 San lose. CA 95134 Dear Ms. Fiore • I am writing on bobalf of Walter Hays PTA in support oftbe City of Palo Alto's application for Vaney Transport.ation Authority (VTA) Yehicle E",iswins Reductions Based at . Schools (VERBS) no .... infrastructure funding to strengthen Palo Alto Safe Routes to School programs. The Palo Alto Safe RoU1es to School Partneabip implements comprehensive Education. Encouragement, Baforcement, Engineering and Evaltunlon prognsms. These programs bave been evolving in Palo Alto tbr over a decade. Based OIl recent record bike counts at 0lU' secondary schools and improving trends for aJtomative transportation modes across the district, these programs bave been successfW. n" fUnding nom this grant would help tie tosether various existiDg Safe Routes to School programs UDder one IImbreUa and hriDg materials up to date so We can develop and disseminate c;onsistent information oifywide, identify best practices foe traffic safety deployment on school routes Chroughout the City. and help lIS continuo to grow the number of atudeats who waltlbike to school. It is critkally imponant that we continue to iocrease abe peRlCotage of altmnative mode school conunutelS in order to mitigalo potential impacts of big her trip volumes as enrollment in our district rises. The Walter Hays PTA strongly encourages you to support the City of Palo Alto's application fur gnmt funding. .. PALO ALTO UNIFIED SCHOOL DtSTRICT HOOVER ELEMENTARY SCHOOL· 445 EAST CHARLESTON ROAD, PALO ALTO, CA 94306 • Telephone (660) 320-8106 September 27, 2010 Ms. Celeste Fiore Valley TranspoI'tation Authority Programming & Grants 3331 N First Street, Bldg B2 San Jose, CA 95134 Dear Mil. Fiore, I am writing on behalf of Hoover Elementary School PTA in support of the City of Palo Alto's application for Valley Transportation Authority (VTA) Vehicle Emissions Reductions Based at Schools (VERBS) non-infrastructure funding to strengthen Palo Alto Safe Routes to School programs. The Palo Alto Safe Routes to School Partnership implements comprehensive Education, Encouragement, Enforcement. Engineering and Evaluation programs. These programs have been evolving in Palo Alto for over a decade. Based on recent record bike counts at our secondary scllools and improving trends for alternative transportation modes across the district, these programs have been successful. The funding from this grant would help tie together various existing Safe Routes to School programs under one umbrella and bring materials up to date so we can develop and disseminate consistent infonnation citywide, identify best practices for traffic safety deployment on school routes throughout the City, and help us continue to grow the number of students that walklbike to school. It is critically important' that we continue to increase the percentage of alternative mode school commuters in order to mitigate potential impacts of higher trip volumes as enrollment in our district rises. The Hoover Elementary School PTA strongly encourages you to support the City of Palo Alto's application for grant funding. Sincerely, :z:::::oo~ Parissa Mohamadi, Hoover PTA President September 26, 2010 Ms. Celeste Fiore Valley Transportation Authority Programming & Grants 3331 N First Street, Bldg B2 San lose. CA 95134 Dear Ms. Fiore, L.M. Nixon Elementary PTA 1111 Stanford Avenue Stanford, CA 94305 Tax ID: 11~0265022 We are writing on behalf of the Nixon Elementary PTA in support of the City of Palo Alto's application for Valley Transportation Authority (VTA) Vehicle Emissions Reductions Based at Schools (VERBS) nonwinfrastructure funding to stre~en Palo Alto Safe Routes to School programs. The Palo Alto Safe Routes to School Partnership implements comprehensive Education. Encouragement, Enforcement, Engineering and Evaluation programs. These programs have been evolving in Palo Alto for over a decade. Based on recent record bike counts at our secondary schools and improving trends for alternative transportation modes across the district, these programs have been successful. The funding from this grant would help tie together various existing Safe Routes to School ·programs under one wnbrella and bring materials up to date so we can develop and disseminate consistent information citywide. identify best practices for traffic safety deployment on school routes throughout the City. and help us continue to grow the number of students that walkIbike to school. It is critically important that we continue to increase the percentage of alternative mode school commuters in order to mitigate potential impacts of higher trip volwnes as enrollment in our district rises. The Nixon Elementary PTA strongly encomages you to support the City of Palo Alto's application for grant funding. In particular, the development of an official Suggested Route to School Map for the Nixon community would be useful as Nixon has a challenging school route which crosses a major intersection. Sincerely, liu Most IUId Sbali ~s ~ N, MnJ Co-Presidents, Nixon Elementary PTA l __ titig,oD,belialf ()ftbeOKecuti~~ ott,\leQ1JlQn,J!l.~ PTA in'Sf.lpport of the City of :bA,Al .... 1 ... -'~ .... +:tiV.all "I ' d4iti0 A, tho'hfl\1TA \ y~id Bini .... ",." dm:;ti B e4 :a: ~q!f.'UiW .~~OAd)r. ,oy1,'Bl'lSJ)Q" .' ,tl.q;UJ .' ttf/~'" ~~F ,"'!I.!~, ;" wWlfl. .f" .. 0.11(,_, 'IlS;., OI'$i.nwi(\1.BDS)non-lDhstmcturefundhl.to ~en Palo Altoi'Satehnte&t()'Sb1iool prosrams. ·T1Je-;P~AltoSaf.:R.outesto:~~o:olP~_p"4PJJJetllen~:~re~nsiv.e aau_G1.1J BD~urage~en\ 'J$bf:QMm~:,~~~Jt,$l4By~_qJ.lptf~'i '\V~ h~lV'¢av~'~.u lUl~htwa.te~tw\y,E\t ObIOmllha.t:itu!(,nunithld fO:bQtb ~1l. am! il_~O:n. A$OUt'~hbQ1..(wlubh\di'aW.IF$tudet1tU\ti.m .stJ·b.ver1ltePa1o,Altbcuilifie.d .School,DIdtt am) is bothgmwmg,md-wd.fttA·Sipificant , "'~, ~""','-,f.\;,Rt ..... A ' , ... tl:......... .. d', ' ,:If" .. .' "Un ,,... .... ,, fu ' at .1.:: .. ~-., Q.QDS_",,,,O~~q;.Q.'.I,VI'If3I.~...,:~'~ODUn~¢!IPtUJlJ.lGl..lVes-;atei()leyen.,gt'fla_r, pDJ._ct': .• 'QS,' '~,I.lD "'""'~~ '~~~l"s .~ha~1.leim~l_ltt;}\uQ,Alto tot"ovet;a~e.tad~~,:Basedol1o.~ence .atOhlQaet,thesepmpunshavo hoen su.s8lbh~lld'Will prolli4e~er ~dftblJy ~ded-, 1'htf'uD.dins:bm'tbis~JtaIltW()1ild~olptte to.JJetl1ervariOll$-existing SafejB.o ... :to::SckO'~lpro~· .,,~ .. .i.'''~.J'l'''e', ............. :....t1a "'''''~b.i;... ' renats··, ... ft. . .J""~" .. ,,,:w· .... ""'i~ ... ·ef ... ~tm.4·A:i .. """' ..... 1 ...... ~. ,'bSmte '* ~VH.~~J,I,~ 4i ..... SIlUI , .. MPlVWJIIt_."O_~Vi WI" ~.lIJII:lQ\li:1c.o .... ill. hlfi.'otm~~dhcif..rt ... ·m·· <·deide.,;fM .. tiesfnraeD·· #"" .. ~itd' ...... ~··': .. -dro~et;. D sc ....... o' rottteS B..-:-•• ft'koUl'· .. liN' ~.;l .• n, ~. !".,. ceS.J.~Iil,"".~'!'V, ep.1,~\'t,. :,IiPI''' .. , .. , uu.~'" the Ciw.81Jc1help U$ :c.Qutinue t.o (Kowtho.Du.mbtr.Qf $denlswhoriklblk'to ~hQQl. ,ltis~tbat\\Te/continuetohtcreue,thcpeteel1taB~of'altemative;m0de school tbrtmlUfets as ,cmt0Ument:hl bm,dtStrict.rlSes.Bvelub&re important i,~ bt~g;th'~ety· Qt'fll~h'x:)lmmUer$. ~.tl13Uiv.:boa(d oftht,QWQl1Q BlQID. ... 1:ItYPTA stXOnglyencoum,,,<you #JSUl'l'Orlthe 'Qi9' of 'N. /dtdllappliuatiolJ for $TMt;tundit1J . . '-. 09/29/261B 68:18 6508566316 September 27, 2010 Ms. Celeste Fiore VaHey Transportation Authority Programming & Crants 3331 N First Street Bldg B2 San JOSG, CA 95134 Dear Ms. Fiore, PALO VERDE ELEM PAGE 02/02 Palo Verde PTA 3450 louis Rd. POlo Alto, CA 94303 lam writing on behalf of Palo Verde Elementary School PTA In support of the Ctty of Palo Alto', application for Valley Transportation Authority (VTA) Vehicle HmissionJ Reductions Based at Schools (VERBS) non-infrastructure funding to strengthen Palo . Alto Safe Routes to School programs. The Palo Alto Safe Routes to School Partnership implements comprehensive Hdutation, Encouragement, Bnforcement, Engineering and Evaluation programs. These programs hav~ been evolving in Palo Alto for over a "decade and have been successful. At our school. the annua13rc1 Grade Bike Rodeo hosted in partnership with Safe Routes to School Is inva1uable in teaching our young riders important bicycling safety skills and increasing their self "confidence in biking to school. We are actively encouraging families to choose alternatives to single car trips when commuting to school. the funding from this grant would help tie together various existing Safe Routes to School programs under one umbrella and bring materials up to date, develop and disseminate consistent tnfonnation citywido, identify best practic;es for traffic safety deployment on school routes throughout the City, and help us grow the number of students that walk/bike to school. It Is critically important that we continue to increase the percentage of alternative mode school commuters as enrollment In our dtstrlct rises. Our neighborhood school has been particularly impacted by increasing enrollment. Safely redudng the number of car trips to our small and crowded parklng areas Is Important. We value the City ot Palo Alto's partnership with us in this goal. The Palo Verde Elementary School PTA strong1y encourases you to support the City of Palo Alto's application for grant funding. Thankyou. ~f €eleste :Fiore vmlevTfitnsPQrtaticmAtttborJty proir.mmj~g & Grants 3.J31N 'irstStreet, Bldg. 82 ~nJ(lst!,tA9S1g4 .D@rM5', FiQ.te, I amW~(tjn8onbehalN;f Jt{tle tathtt.JpSt.nfotcl W$}of\'J:lddle S:chQOllluppport Qftb~CitY ofPelil. A1to!s '~.pp.Jitati()n fQr Van~T1'3nJportaJ:iOJIAlIth,"ity (vrA)Veh~'e EmiSSiOl1'. Ret4uetrGRS Bl)$ed at Sc~~ls (~BS) non .• infrattructure.funQlqg to $tfe_en Palo Alto,$lfeRou.s-toSchool lU'Qg.ra.ms. . - -- Palo Alto's comprehtq$ivtt appi'o:acl'ito$af~ Routes to$CbQol 15 wOrldng atJU.Ourblke:Q)Ul'lts t(lntlnue·to~grow annually, 11:\,2000, abc$t lSSofJLS stUdi:h\i bike~to seho.ol.. InlOO9,A8% of student~fbiked ,toschoo1.September 14, 2010,412 ilill.were counted In tl!Je r8ttks on our c8rnp(lS. Many more JIS students 'Wafk 'or tift-Other aJtemathle mijl.des for fihetr;scho:.o).commute$; iOGluding I:tlfpooffn,ahd tiding the :bUs. HpW.ve .. ~ o~i"slfe :1!ib~lilg ;tJ<pandedto aa»mmoolB! Itlcr@ls.ed: .ento8roetilt.The$lteandsurrDunliltns;:streets caMGt:aceommCIci:ate add.ltiOnal ear trlfJ$~sowe wm,beed to lilcreaseour safe Routes to school efforts. We wittneednewSugge$ted. Ro~s to School pect/bike mapsias.oursnel slAtemal1extemaJ Circulation ts planned to f;bange. QlQ'eJJ~lon pr.Qgram mm~rlar!i . . . . . ,are,:outdDtedandneed work. New automated oouoter$wiU give us ti mQT&pred6eunderstonding of seasana' fluctuations in m£ide choices as weli as ef'fect.aof changes ~ scruwl route If'lfrasttudil~. The rund1rcfromthls'srant would help tie. tGiSefl:ler varJous~lstlng.5afe Rout§tsto Schoolpr0Sram$ Ulld~r ope umbfellaMldbli~ ,trtatetlals,:uJ!tto detet .. s't! Weca,. deflelhp. and dl~sel1)tnatecOns1&tent itif(jrmatloocitywide .. fdentlfY best tlfadft~s fot'tfaffi:c'silfety tieployment"oosebool route5t'hroughout theiClty,anct .help ustOf'ltinue to8J'l)Wthe,numberohtudeots tnatwalk/blke,toJI.$ anciotfferPAVSD sthoof~. Jane lathrop: Stanford Middle School PTA str:Qng1yenco.urages you to support the City of,PalC[) Alto's applitation.for grant funding. Er:tcStl1~ur P~si.d'$.At Ja.l1e '1.athrQPS~ofor:d Middle·Scho0lPTA De.fMa.· Flqre. Jor.nNliddleSChool PTA 780HorthC.llfornla·Avenue" P"oAtto~ CA .... I. lm·wtlifngfOr JQrdanMiddle 8c#to.OI PTAlhl'-U)jpott Clrth.e.ClW .~P:"Q Attc)' •• pl~U9.1'\ tQ,r\!,-"IY Tr.n..~:Atflhotl\y (VTA)V8hICls.flmIUfOiItt,RBdIJCliOtt'ilk"'.1 SG/JO(IIs(VSR.) I'IQn..fnb..8lrud~re tur,QIn.gt~~enPalo:AHoS8fe" Rciutes]o'ScihGal pnlQtama ". !Qur"~~qll.~tltpt~"I~c.o~~*o1pr . .n~dJjI~f1.~8 .~dtnta{re"..entlng. an1 '.I~cru$'ln ttU(j~":paPUlJltlcm1. 1t18.a~ych_~gl_fQrqt!r$.O;,JI ~ .. "It •. to ma~th. ~\JrQ :.()f~J tl~.'tnp8 Itat~,.!~d.< .W.~tj:~rt.,_,p~tq.eof ~rci.njtu~w.lkI .. l;Ilk1i'l9l" ... ' .... ;lMr~ :~mutU';~i.I8~,"r.191~lnotq""~,.utO;t1:IP8; Y~tbelnte~,:iO~~~~~t~ li~nH.AlF :Of".,ot~rt';~djtlt':~IK.to~(lJj~lt!:low"that\we"wJlf:AlM9JjtoitePUpouJ'.*"{Qenc.our.age ell~~~;,m.~ ~I ~m.~"\(f~jgg.tbt~C:lrtlpa.,()f..nrdlmentG,owtn .. ·OUI' prAia commIlte1ttd.:$iJppQJl.pr.m .... lV& $"~."R~u~,.19 ~t'progI'8i'n8Jn partnftl1hlP WIfh.peloAbUnlfled SQh®.IQJ$tt.iot,atldihJ C.l\y ()fP.l~tAfto. ' ~nqli:IQ from the YER8il19ndnfi'aStrucli.Ire 'orantWOUld help ti~to~r.e~.ng $8f$ ~9~te.. to' $chool Rrog('Irlja,nd brlhg.m •• rt8I& tfrtIlllQdlngit'l ___ ~'m • .PJ.tfiau.'ur,~lt': W8r.~.o.ur .. e,xp~!lli.lon.nd·n.wtraflld .afetY lnatrUottC!inartn.t8ti_otl.tft·,n~)~ .~~CG$U'I.~" tJl~wlllhetp Y.81J~~~ R'I~re accuraledata tk)hetp uscontlhtiftOgrowtht nt;jiribef phtl.(d.WhQ!.lNlndbtke to school. . . . . ItI~ ~1Y'flTl~rtt .. twa conlin",. toitnerea8ttlhltPEll'elntage.otal18matlYeroocte $.tICib' <;QMl1'lulel) tn: order toml'" POMatJmJ~ ofplgf)er' Jt:Ip 'voiumH':asenro(lmenUn ountJatnct riMa. 'nte JardanMldOle~SchQOI PTA ancoura_Yi)1.I to supporttbfi City of pl.io Alto'8~appUC8If(ln1or grant fun~9· '.. Sep 28 2010 2:37PM September 28,2010 Ms. Celeste Fiore Valley Transportation Authority Programming & Grants 3331 N First Street. Bldg B2 San lose, CA 95134 Dear Ms. Fiore. T_ Middit;' s~~~i PTA 6SS Amtradero Road Palo Alto, CA 94306 650·856-9810 ' Tax II>: 77·0567364 650-493-7002 J am writing on behalf of Tenrum Middle School PTA ia support of the City of Palo Alto's appJieation fur Valley Transportation Authority (VTA) Vehicle Emlsliom Reductions Based at 8t;hools (VERBS) nOD- infrastructure fimding to strengthen Palo Alto Safe Routes to School programs. The Palo Alto Safo R.outes to School Partnership implements comprehensive Education, Enoouragement, Enforcement, '&gineering and Evaluation programs. Our school have bcmefitted from having a crossing guard on duty every morning and afternoon during the bwdest times of our schoo) day. In addition tho police patrols have been helpful in educating our community on safety both in vchicles and on bikes. These programs have been evolving in Palo Alto for over a decacle. Based on recent record bike counts at our 98condary schools and improving trends for alternative transportation modes across die district, these programs have been successful. Tho funding from this grant would help tie together various existing Safe Routes to School programs under one umbrella and bring 1llateriaJs up to date so we can develop and disseminate consistent infoJ'lWltion ~itywide, identity best practices for traffic safety deployment on school routes 1hro1lghout the City. and help us continue to grow the number of students that walkJbike to school. It is critically important dlat we continue to inerease the percentage of alternative, mode school commuters in order to mitigate potential impacts ofhighor trip volumes as enrollm~t ia our district rises. The Terman Middle School PTA strongly encourages you to support the Ci1;y of Palo Alto's application for grant funding. Sincerely, .A9~~~ DaisyZook PTA President 2010-2011 p.2 .~ Gunn High School Parent Teacher Stu,dent Association ht1p;Uguno,P8/oaltopta,orQ 2.010-1011 EXecutIVe September 26. 2010 Board & OIIICIHS Prineipal Katya Villalobos Ms, Celeste Flore Praeldent Valley Transportation Authority GmceYu Progr:al'llJ11ing .. Grants 3331 N First Street. Bldg B2 Exec", VP San Jose, CA 96134 DIane Downend VP MlAAwlrda Dear Ms. Flore, Karen MlIVin co-VP llembarsilip I am wtiting on behalf of Gunn PTSA In support of the City of Palo Alto's appllcation for Valley ~Foung Traneportlition AUthority (VTA) Vehicle EmIssions Reductions Based at Schools (VERBS) non- Rosemmy Hallal in1\'4l$tJucture funding to itMngthen P8Io Alto Safe ROUIe$ to Scnool programs. . vpprogram. The Palo Alto Safe Routes to School Partnership implements comprehensive Education, SIgrid PInsky Encouragement. enforoemen~ Engineering and Evaluation programs. These progrem, have been evolving In Palo AltO for over a deQ1de. Baed on recent record bike counts at our 8ecrtI8ry . aeoondary echOol$ and Improving trends for alternative transportation modes acrOl88 the Duncan MacMIllan district. these programs haVe been successful. TItMIII1r The funding from thie gtal'It would help tie together various exl$Ung Safe Routes to SChool Jon DukeS-Sdllossberg programs under one umbrella and bring materials up to date $0 we can devt!tlop and AuditDr dissemInate cortIiltent Infonnatlon oltywlde, identify best practice. for tJ8ffic safety <teployment DelsyZOOk on IChOoI routes throughout the City. and help us continue to grow the number of students that walklbike to sChoOl. HI$torte.n It ia ctitically important that we oontInue to increase the percentage of alternatIVe mOde SQhool c.yn GeIber-CMfy oommuW$ in order to mitigate potential impadB of higher trip VOlumes as enrollment In our Par1lamentlflan district rises. SUsan Thomas The Gunn High School PTSA strongly encourages you to support the City of Palo AIto's IIppllcatiOn fOr grant funding. PIf:MC tIetwoIts CIIsa of 2014 SIgIkI Rntly ~-tf71 $ridlsQivahoo,rQm ClIIS 0'2013 Lauren Janov IiO~Ll..G¥lflgg,mm Class 2012 GraCe H. Yu a Ru1h ShapIro PTSA President _ ruttt@ke~Qtegtes.Si2lIl Cfltt2011 Maltla eowdeo ~1IIbaI.1IM 780 ~c1Qro Road. paloA~. C;\llfonlla 94306 LOBLSS~OiBL ~O:.l OLO~/B~/so PI31I everychild. one voice" September 27, 2010 Ms. Celeste Fiore Palo Alto High School PTSA 50 Embarcadero Rd Palo Alto, CA 94301 Valley Transportation Authority Programming & Grants 3331 N First Street, Bldg B2 San Jose, CA 95134 Dear Ms. Fiore, I am writing on behalf of the Palo Alto High School Parent Teacher Student Association (PTSA) in support of the City of Palo Alto's application for Valley Transportation Authority (VTA) Vehicle Emissions Reductions Based at Schools (VERBS) non- infrastructure funding to strengthen P~10 Alto Safe Routes to School programs. The Palo Alto Safe Routes to School Partnership implements comprehensive Education, Encouragement, Enforcement, Engineering and Evaluation programs. These programs have been evolving in Palo Alto for over a decade. Based on recent record bike COl.Ults at our secondary schools and improving trends for alternative transportation modes across the district, these programs have been successful. . Bike counts at Palo Alto High School have increased every year for the past ten years . reaching a record 741 this year. This number represents 40% of the student population. We certainly want to maintain this phenomenal trend. The funding from this grant would help tie together various existing Safe Routes to School programs under one umbrella and bring materials up to date so we can develop and disseminate consistent information citywide, identifY best practices for traffic safety deployment on school routes throughout the City, and help us continue to grow the number of students that walklbike to school. It is critically important that we continue to increase the percentage of alternative mode school commuters in order to mitigate potential impacts of higher trip volumes as enrolhnent in our district rises. The Palo Alto High School PTSA strongly encourages you to support the City of Palo Alto's application for grant funding. Susan Bailey President Palo Alto High School PTSA October 4, 2010 Ms. Celeste Fiore ' Valley Transportation Authority Programming & Grants 3331 N First Street, Bldg B2 San Jose, CA 95134 Dear Ms. Fiore, I am writing in strong support of the City of Palo Alto's application for Valley Transportation Authority (VT A) Vehicle Emissions Reductions Based at Schools (VERBS) funding for non-infrastructure improvements. Pirst let me tell you a bit of my background. I have been involved in school traffic issues in Palo Alto since 1994. I was a PTA Traffic Safety Representative at Palo Verde Elementary School, Jordan Middle School and Paly High School. I am a former chair of the PTA Council Traffic Safety Committee and a longtime member of the City/School Tmffic Safety Committee. I am a member and former chair of both the Palo Alto Bicycle Advisory Committee the VTA Bicycle and J>edestrian Advisory Committee. I am a League of American Bicyclists Instructor and have taught many classes for parents and youth up to age 14. 1 have worked with Traffic Safe Communities Network and designed classroom curricula for them that have also been used in Palo Alto schools. I am familiar with school-based walking and bicycling encouragement programs throughout the County, having organized the first Walk to School Day event in 1999. Palo Alto hasthe organizational structure and top-to-bottom community commitment to make this progmm a success. The Sate Routes to School Task Force has been a powerful force since 1996 even though there has been turnover in the membership of its elected officials. That sustained community commitment is the foundation for success, but funding is needed to ensure that quality programs can be delivered and that innovation and creativity can continue to be fueled.' The funding from this grant would consolidate the successes of this Safe Routes to School partnership and help us continue to improve the pedestrian and bike safety education available to our students and their parents. Other valuable initiatives include developing walking and biking route maps for every school site, creating a central Safe Routes to School website and providing greater incentives for participation in Walk and Roll to School events. My experience with TSCN has convinced me that Palo Alto's leadership is valuable for all cities in the county. Palo Alto is a model that serves as inspiration for others. The Walk to School Day program and the 6th grade bike safety presentations are examples of how Palo Alto's initiative led to county-wide programs which in turn ended up benefiting Palo Alto. It's also important to include a more comprehensive evaluation of success in reducing the environmental impact of driving to school while increasing the safety of students walking and biking to and from school. I strongly urge you to support the City of Palo Alto's application for VERBS gmnt funding. Sincerely, Jt/// ..? Rit:'!~ 2950 Clam Dr Pillo Alto, CA 94303 ~?I~ AN EICHLER COMMUNITY IN SOUTH PALO ALTO 303 Parkside Drive Palo Alto, CA 94306 650.494.3157 650.494.1364 info@greeruneadow.org www.greenmeadow.org September 29,2010 Ms. Celeste Fiore Valley Transportation Authority Programming & Grants 3331 N First Street, Bldg B2 San Jose, CA 95134 Dear Ms. Fiore, I am writing this letter on behalf of Greenmeadow Community Association. Inc. (GMCA) in support of the City of Palo Alto's application for Valley Transportation Authority (VTA) Vehicle Emissiona Reductions Based at Schools (VERBS) grant. Greenmeadow is one of Palo Alto's oldest neighborhood associations, representing 270 households. Greenmeadow has Ulken an active and long-standing role supporting city and school district efforts to encourage children to waJk and bike to school. Our neighborhood abuts a residential arterial, CharlestoniArastradero Road, that serves eleven public and private elementary, middle and high schools, parks, a library, two community centers and a small shopping center. Recently, we have supported city efforts to make safety improvements to that street. We promote city walklbike events through our association enews, newsletter and signboards. We also have groups of parents and students in our neighborhood who coordinate walking school buses. We know that Safe RoUtes to School programs work in Palo Alto. However, as new housing is approved and built (nearly 1,000 new units near our neighborhood in the last seven years), it is becoming increasingly challenging to manage the higher volumes of traffic that come with that growth. A VERBS grant will enable the city to supplement and expand programs that make it possible for Palo Alto school children to walk and bike to school safely in increasing numbers. We urge you to support the City of Palo Alto's application for funding. Thank you for giving our comments your consideration. Sin::re~ (y(~Vl~ Lisette Narragon 0 President, Greenmeadow Community Association. Inc. TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE: DECEMBER 6, 2010 CMR: 423:10 REPORT TYPE: CONSENT SUBJECT: Appeal of the Director's Individual Review Approval of an Addition to an Existing Single Family Residence at 559 Everett Avenue EXECUTIVE SUMMARY This request is an appeal of the Director's approval of a Single Family Individual Review (IR) application for a two-story addition to a single story home at 559 Everett Avenue, an R-2 zoned parcel located in the Downtown North neighborhood. F our or more Council Members' votes would be needed to remove this item from the consent calendar to set the matter for a future hearing. Appellants Nancy Rogets-Zegarra and Stephen H. Rogers, owners of the adjacent 565 Everett Avenue, were mailed and emailed all decision and hearing notices regarding the project. The Director of Planning and Community Environment (Director) visited the site prior to conducting the Director's Hearing, found the project complies with the Single Family Residential Individual Review (IR) guidelines, and added an approval condition to the project approval following the hearing. The appellants, who do not live in Palo Alto, did not attend the Director's Hearing but their comments were received and considered during the IR process. The Director's approval letter is attached for the Council to uphold on consent. The appellants disagree with the findings in the Director's October 18, 2010 approval letter (Attachment B), and their appeal letter dated November 2,2010 (Attachment C) sets forth arguments in support of their appea1. RECOMMENDATION Staff recommends that the City Council decline to hear the appeal of the IR application (file 08PLN- 00000-00282) for an addition to the home located on the subject property at 559 Everett Avenue and uphold the Director's approva1. BACKGROUND Council Review Authority The City's Individual Review (IR) procedure provides for City Council "call up" of appeals. When the Director approves an IR application after a Director's Hearing and a directly affected property owner appeals the decision, the project is placed before Council on the consent calendar for final action. If 1 four Council members vote to remove the project from the consent calendar, a hearing by City Council must be scheduled for a subsequent date. Otherwise, the item may be approved on consent calendar so that the Director's decision stands and no hearing is held. If the Council agrees to hear an appeal, a hearing is scheduled as soon as practical (PAMC 18.77.75). Proj ect Review and Director's Approval The Director's approval letter dated October 18, 2010 (Attachment B) includes approval fIndings and cites the applicable Palo Alto Municipal Code (PAMC) sections. PAMC Sections 18.10.040 (i) and 18.12.110 require IR of the proposed two-story lateral addition to the one-story, single-family residence on an R-2 zoned site, since the project site abuts a parcel in single family residential use, 565 Everett Avenue, on the right side as one faces the subject property. The IR is required only for those sides that share an interior lot line with a single-family or two-family residence, with respect to the project's potential effects upon said single-family or two-family residence (per PAMC 18.10.040(i». PAMC Section 18.77.075 sets forth the IR process. The project site also abuts a seven story apartment building (Planned Community 2145) on the left side of the subject property. Approval findings, presented briefly below, and conditions of approval are included in the Director's letter. Condition #14 was added by the Director in consultation with the Planning arborist, to require protection of the appellants' trees along the right property line, since these trees would interrupt views of the new addition to soften its appearance. The IR application was submitted on September 8, 2008. Revised plans were submitted August 4, 2010 to address comments from neighbors, departmental staff and the City's consulting architect for the IR program. The application was tentatively approved on August 25, 2010. Prior to the effective approval (14 days after t4e tentative approval date), the appellant requested a Director's Hearing. On October 13, 2010, after the October 7, 2010 Director's Hearing was held, the Director approved the application adding the above-mentioned condition, and the approval letter was dated October 18, 2010. On November 2, 2010, the appellant submitted the appeal to Council (Attachment C, letter of appeal). DISCUSSION The project has been reviewed by staff, the consulting architect, the planning manager and the DirectOr" to determine compliance of the project with all five guidelines for Individual Review, as set forth in the attached approval letter (Attachment B), and complies with the R-2 Zone District regulations for development. The IR guidelines include criteria related to: basic site planning; neighborhood compatibility for height, mass and scale; resolution of architectural form, massing and roof lines; visual character of street facing facades and entries; and placement of second-story windows and decks for privacy. The appellants' letter (Attachment C) provides counter arguments regarding the project's compliance with the five guidelines. Below, staff has summarized the appellants' concerns followed by the Director's letter findings. Guideline 1, Basic Site Planning Appellants' concerns: The appellants' letter describes existing conditions pertaining to vegetation, fences and property dimensions along lines abutting the subject property and appellants' property. The appellants assert their belief the applicant will cut down the one redwood tree on 559 Everett when the addition is built, and note that there are no evergreen trees planted along the property lines 2 that adjoin their property. The appellants express their concern about a "box like construction" of a two story building adjacent to one story buildings which would look like an "add on" and without benefit of mitigating vegetation, other than the trees on the appellants' property. Director's finding: The subject property is a 50'xi44' deep lot, with a multifamily high rise building on its left, and a two story single family home on the right at 565 Everett. The rear lot line adjoins the backyard extension of 565 Everett, which contains a pool. There is dense, two-story tall, evergreen tree foliage at the rear lot line, and along the right side lot line abutting 565 Everett, except at its detached garage in the rear, and between front yards. This proposal puts the 2-story addition behind the existing elongated i-story house, and rebuilds the detached garage while maintaining the same driveway. The streetscape along Everett Avenue is only mildly altered as the addition is so far back on the lot, and largely blocked by the existing vegetation. Guideline 2, Neighborhood compatibility for Height, Mass and Scale: Appellants' concerns: The appellants are concerned the addition onto the 1920's one-story bungalow home would look out of place, and not harmonize with neighboring homes dating back to the early 1900's. The letter cites addresses of neighborhood houses that were sensitively remodeled to "enhance the neighborhood and maintain the integrity of the buildings." The houses so noted in the appellants' letter included 575 Everett, 558 Hawthorne Avenue, 428 Everett Avenue. The appellants are concerned the "abrupt change in height" between the existing and proposed house would be incompatible with the existing neighborhood houses. The letter ,goes on to analyze eaves, height, and scale, and cite a concern about the addition casting shadows onto the appellants' property, thereby destroying vegetation. Finally, potential for reduction in the appellants' property value is mentioned. Director's finding: Even though the addition starts at the elevated floor level to match the existing house and provide continuity offloor plan, the total height of the 2-story addition is still not as tall as the building at 565 Everett. Its rear placement further mitigates its impact on the streetscape. The second floor is significantly narrower than the existing house in the front. Guideline 3, Resolution of Architectural Form, Massing and Rooflines: Appellants' concerns: The appellants note their concern about viability of their lemon trees after shadows are created by construction of the project, and their concern that their lemon trees are being used as mitigation for views of the new addition on the subject property. The appellants state, "The second floor should be narrower than the first floor, but the first floor of the new part should be in line with or narrower than the existing house. This wider structure and the larger eaves create a "New York style" box structure also creating shadows, dampness, moss and an unsightly landscape." There are suggestions on how the addition should be redesigned, including separating the addition from the existing residence, and modifying the approval letter with respect to storm water runoff. The appellants are concerned the proposed project would preclude expansion or create adverse conditions on their site. Director's finding: Existing lemon trees between driveway and the left rear corner of existing house hide the transition between it and the addition, softening the abrupt change to 2-stories. On the right side, a significant one-story piece softens the transition, although trees block views from the neighbor and the street. 3 Guideline 4, Visual Character of Street Facing Facades and Entries: Appellants' concerns: The appellants note the visual character of the proposed house does not fit in with the other vintage houses, creating a lack of continuity and neighborhood character that will detract and "cause people not to want to live in the neighborhood." Again, the appellants cite 575 Everett as the current high standard of visual character for the neighborhood. Director's finding: The existing house at the front is untouched. The narrower second story addition placed in the rear provides good proportions. Matching roof slopes at the second floor and existing house, and matching details of eaves, walls, windows all help integrate the addition with the existing building. Guideline 5, Placement of Second Story Windows and Decks for Privacy: Appellants' concern: The appellants note the trees are in their driveway and cannot be used for privacy mitigation. Director's finding: One bedroom window and one bath-tub window face the 565 property, but views created to outdoor living areas (back porch and lawn) and windows of 5 65 are blocked by the existing trees. The only second story deck is on the left side, facing the high rise, the side that is not subject to Individual Review. FLOOD ZONE REGULATIONS The project is in a Flood Zone Hazard Area, so that the proposed construction (lateral addition) must meet all of the City's and Federal Emergency Management Agency's (FEMA) requirements for construction within a flood zone, in accordance with Palo Alto Municipal Code Section 16.52, Flood Hazard Regulations. The appellants take exception with staff s determination that the project would comply with Section 16.52, but Public Works staff indicate that it would comply for an addition to an existing structure. Staff also notes that the flood zone criteria are outside the purpose and findings of the Individual Review, and are generally considered as part of the Building Permit review. ALTERNATIVE TO STAFF RECOMMENDATION The Council's alternative to upholding the Director's decision on consent is outlined in Municipal Code Section 18.77.075(g)(2): "Remove the recommendation from the consent calendar, which shall require four votes, and set the application for a new hearing before the City Council, following which the City Council shall apopt findings and take action on the application." If the Council so directs, staff will identify a date for the hearing and will provide appropriate public notice in advance of the hearing. POLICY IMPLICATIONS The Director's decision to approve the application is consistent with staff s implementation of the IR Guidelines, and with the policies and intent of the IR Process. This is the first IR decision approving 4 an addition to a single-family residence in the R-2 district to be appealed to Council. The IR program was originally designed to apply to R-1 zoned property. In 2005, the zoning code was modified to require IR review on R-2 properties when adjacent to existing single-family residential homes. ENVIRONMENTAL REVIEW This project is exempt from the provision of the California Environmental Quality Act (CEQA) per Section 15303(a) of the CEQA Guidelines. PREPARED BY: DEPARTMENT HEAD: CURTIS WILLIAMS Director of Planning and Community Environment CITY MANAGER APPROVAL: ~4J.o.-Ae£;.p JAMES KEENE . ypY" City Manager ATTACHMENTS Attachment A: Approval Letter with conditions Attachment B: Appellants' Letter with concerns Attachment C: Plans (Council Members Only) COURTESY COPIES Vita and Alexandreev Gorgunova, 559 Everett Avenue, Palo Alto, CA 94301 Nancy E. Rogers-Zegarra and Stephen H. Rogers, 4801 Hillsboro Circle, Santa Rosa, CA 95405 5 October 18,2010 Vita and Alexandreev Gorgunova 559 Everett St. Palo Alto, CA 94301 ATTACHMENT A .~!tyQtret!QJ~JtQ Department of Planning and' Community Environment SUBJECT: 559 Everett Ave.; Individual Review 08PLN-OOOOO-00282 This application was heard at the Director's Hearing on October 7, 2010. The hearing officer, Curtis 'Williams, Director of Planning and Community Environment, visited the ,site before the hearing. On October 13, 2010, he conditionally approved Single Family Individual Review application 08PLN -00000-00282 for a new two-story lateral addition to a one story single family residence at 559 Everett St, a property zoned R ... 2,' As stated InPalo Alto Municipal Code (P AMC) 18.1 0.040 (i), this proposal for single family use of.an R-2 site is 8ubjectto Individual Review provisions of Section 18.12.110 and Section 18,77.075, atthose sides of the site that share an interior side or rear lot line with another property of single f~ily use.' , Approval is based on plans dated.July 30,2010, received in Planning on August 4,-2010,; 'and is subject to compliance with the attached conditions. 'Condition #1'4, requiring protection of the neighbor's trees along the right ,property line, was added as a result of the hearing, prepared" following a consultation wit~ the Planning arborist. ' The project meets all of the Palo Alto Single Family Individual Review Guidelines and' 'complies'with the R-2 Zone District regulations for development. FINDINGS: Pertaining to Single-Family Individual Review G~idelines Guideline One Basic Site Planning: The subJect property is a 50'x144' deep 1pt, with a multifamily high rise building on its left, and a two story single family home on the right at 565 Everett. The rear lot line adjoins,the backyard extension of 565 Everett, which contains a pool. There is dense, two- story tall, evergreen tree Joliageat the rear lot line, and along the rightside''lot line abutting 565 Everett, except at its d~tached garage in the rear, and betweep.front yards. This proposal puts the 2-story addition behind the existing elongated I-story house, and rebuilds the detached garage while maintaining the same driveway. The streetscapealongEverett Avenue is only mildly altered as the addition is so far back on the lot, and largely blocked by the existing vegetation. Guideline Two Neighborhood compatibility for Height, Mass and Scale: Even though the addition starts at the elevated floor level to match the existing house and provide continuity of floor plan', the total height of the 2-story addition is still not as tall as the building at 565 Everett. Its rear placement further mitigates its impact on the streetscape. The second floor is significantly narrower than the existing house in the front. Transportation Planning 15tfHamiHon Avenue P.o, Box 10250 ,.. "2'S"O'Hiiinilt6n'Avenue Palo Alto, CA 94303 650,329.2 441 650.329.2154 Printed with soy-based inks on 100% recycled papet processed without chlorine P.O, Box 10250 Palo Alto, CA 94303 650.329.2520 650,617,3108 Building 285" Hamllfon-Avenue P.O. Box 10250 Palo Alto, CA 94303 650.329.2496 650,329.2240 559 Everett Ave. appro _ after Director's Hearing Individual Review 08PLN-OOOOO-00282 Page 2 of7 Guideline Three Resolution-of Architectural Fonn, Massing and Rooflines: Existing lemon trees between driveway and the left rear comer of existing house hide the transition between it and the addition, softening the abrupt change to 2-stories. On the right side, a significant one story piece softens the transition, ~lthough trees block views from the neighbor and the street. Guideline Four Visual Character of Street Facing Facades and Entries: The existing house at the front is untouched. The narrower second story addition placed in the rear provides good proportions. Matching roof slopes at the second floor and existing house, and matching details of eaves, walls, windows all help integrate the addition with the existing building. Guideline Five Placement of Second-Story Windows and Decks for Privacy: One bedroom window and one bath-tub window face the 565 property, but views created to outdoor living areas (back porch and lawn) and windows of 565 are blocked by the existing trees. The only second story deck is on the left side, facing the highrise, the side that is not subject to Individual Review. This approval will become effective 14 days from postmark date of this letter, unless an appeal is filed as provided by Chapter 18.77.075 of the PAMC. Please be aware that only the applicant, or the owner or tenant of an adjacent property may request a hearing. An appeal may be filed by SUbmitting a written request with the City Clerk before the date the Director's decision becomes final. The written request shall be accompanied by a $126.00 fee as set forth in the municipal fee schedule for appeals. This letter and attached approval conditions shall be printed onto building permit plans relating to this approval. If the building permit has not been issued and construction commenced within one year from the effective approval date, this approval will expire. A written request for an extension may be submitted prior to the expiration date. The Director may grant a one-year extension of this approval. Should you have any questions regarding this approval, please do not hesitate to call Lee Mei, Contract Planner, at (650)-617-3100, ext. 3860, or e-mail at lee.mei@cityofpaloalto.org. Sincerely, Curtis Williams, AICP Director of Planning and Community Environment Proj ect Manager: Lee Mei cc: Neighbor notification list 559 Everett Ave. approval after Direuor's Hearing Individual Review 08PLN-OOOOO-00282 Page 3 of7 INDIVIDUAL REVIEW CONDITIONS OF APPROVAL 559 Everett Ave. 08PLN -00000-00282 The approval is subject to compliance with the following conditions. The property owner is solely responsible for the conditions of approval being met. Planning staff recommends the property owner discuss the conditions of approval with the contractor, designer, etc. and contact Planning staff with any questions. PLANNING AND TRANSPORTATION DIVISION 1. Apply for a building permitand meet any and all conditions of the Planning, Fire, Public Works, and Building Departments. 2. The project shall be constructed in substantial compliance with revised development plans dated July 30,2010, received in Planning on August 4,2010, on file with the Planning Department, 250 Hamilton Avenue, Palo Alto, California. Any proposed exterior changes from the elevations as approved shall require planning review and approval. ' 3. A copy of this approval letter shall be printed on the first or second page of the plans submitted for building permit. 4. Upon submittal of an application for a building permit, the project is required to Comply with both the City's Construction & Demolition (C&D) Diversion Program (P AMC 5.24) and Green Building Program (P AMC 18.44 Table B). The project is required to complete a green building application, and include in the building plans, on a separate sheet (GB-1 Fonn), Build It Green's Gr eenPoint Rated New Home checklist, shoWing a minimum of 70 points based on 1583 SF of living space, and 231 SF of garage. The green building application requires the applicant to have a qualified green building professional to provide evidence of adequate compliance. More information and the application can be found at http://Www.cityofpaloalto.org/depts/plnJgreen _ buildingldefault.asp and all questions concerning the CitY's Green Building Standards should be directed to Kristin Parineh at (650) 329-2189. 5. In the Building permit set of plans, on AO, Proposed Floor Areas in Planning SUmmary shall be updated to be consistent with figures on A2. 6. In the Building permit set of plans, on AI, the second lemon tree on the other side of basement entrance shall be shown. Protection fence around both trees and basement hutch shall be shown. 559 Everett Ave. appro. after Director's Hearing Individual Review 08PLN-OOOOO-00282 Page 4 of7 7. In the Building pennit set of plans, First Floor Plan shall show a dimension of 6' -2" for side door recess from staiIwell. 8. In the Building pennit set of plans, on A9, the garage door shall be specified to be Model 11085 by Infinity Classic Garage Doors, built of metal, simulating clearly profiled wood styles and rails, painted to match trim or body color of the house. 9. In the Building permit set of plans, new' window grilles shall be specified to be externally applied. 10. In the Building pennit set of plans, new eave and soffit details shall be specified to match existing. . 11. In the Building permit set of plans, the roof over the Laundry protrusion and side door shall have roof pitch matching the existing house, and gutter and eave at the same height as existing. 12. In the Building permit set of plans, the overhang on the right side over first floor of the addition shall be corrected to be 2 ft wide. 13. Since the top plate of existing house is 10 inches higher than that of the first floor of addition, applicants have the option, in the Building permit set of plans, to allow the gutter of the existing house to be higher than that of the addition on the right (east) side, and the comer of the existing roof to show, for a more esthetic transition. 14. In the Building permit set of plans, Site Plan shall show Type II tree protection fence (TPF) along right property line, 3 ft. from existing fence, spanning from forward most drip line of right neighbor's orange trees to the rear-most drip line of tree near right neighbor's garage. A note on site plan pointing to this enclosed tree protection area shall specify that a single line of soaker hose shall be placed on the soil along and within the TPF, and turned on 1 hour per week except in wet weather or between December 15 to March 1. Another note shall specify that 3 inches of wood chips or ,shredded bark mulch shall be installed on the soil over the soaker hose, over the entire area enclosed by the TPF and existing fence. TREE PROTECTION MEASURES PRIOR TO DEMOLITION, BUILDING OR GRADING PERMIT ISSUANCE 1. For the 36" street tree and the adjacent neighbor's 10" street tree, use Type II fencing to enclose the planting strip under the canopy to the outer branch drip lines or to the existing driveway. Lemon trees at driveway and neighbor's trees along right property line s~all be protected as stated'in #6 and #14 above. All tree protection fences shall be shown as bold dashed lines on the Site and civil plans. 14" redwood behind garage, and other trees to be retained in the backyard should be voluntarily protected as well. 559 Everett Ave. approyal after DirectOr's Hearing Individual Review 08PLN-OOOOO-00282 " Page 5 of7 2. The plans submitted for building permit shall include Sheet T -1, "Tree Protection-it's Part of the Plan" (http://www.city.palo- alto.ca.us/depts/pln/development center/building permits.asp), complete the Tree Disclosure Statement and Inspection( s) # 1 shall be checked. 3. All site and civil plan sheets shall require a note applied to the fencing of each street tree to be protected, stating: "Protected tree--before working in this area, contact the Public Works arborist at"650-496-5953". 4. Tree Protection Verification. A written statement from the contractor verifying that the required protective fencing is in place shall be submitted to the Building Inspections Division prior to demolition, grading or building permit issuance. The fencing shall contain required warning sign and remain in place until final inspection of the pro] ect. Tree fencing shall be adjusted after demolition if necessary to increase the tree protection zone as required by the proj ect arborist. DURING CONSTRUCTION 1. The applicant shall be responsible for the repair or replacement of any publicly owned trees that are damaged during the course of construction, pursuant to Section 8.04.070 of the Palo Alto Municipal Code. 2. The following general tree preservation measures apply to all trees to be retained: No storage of material, topsoil, vehicles or equipment shall be permitted within the tree enclosure area. The ground under and around the tree canopy area shall not be altered. Trees to be retained shall be irrigated, aerated and maintained as necessary to ensure survival. PUBLIC WORKS ENGINEERING Joe Teresi: 1. It will be acceptable to bolt the new wall to the existing wall. 2. The new wall shall be supported on its own foundation, and that the addition be designed so that it would stand on its own if the walls were unbolted and the existing building were demolished. 3. The lateral addition may utilize and be connected to the existing utility services, as long as the utilities in the existing structure are not modified or upgraded. Rosemary Morse: SIDEWALK, CURB & GUTTER: As part of this project, the applicant must replace those portions of the existing sidewalks, curbs, gutters or driveway approaches in the public right-of-way along the frontage of the property that are broken, badly cracked, displaced, or non-standard, and must remove any unpermitted pavement in the planter 559 Everett Ave. appro\ After Director's Hearing Individual Review 08PLN-OOOOO-00282 Page 6 of7 strip. Contact Public Works' inspector at 650-496-6929 to arrange a site visit so the inspecter can determine the extent of replacement work. The site plan submitted with the building peID1it plan set must show the extent of the replacement work or include a note that Public Works' inspector has determined no work is required. The plan must note that any work in the righV .. of-way must be done per Public Works' standards by a licensed contractor who must first obtain a Street Work Pennit from Public Works at the Development Center. STREET TREES: The applicant may be required to replace existing and/or add new street trees in the public right-of-way along the property's frontage. Cal1 the Public Warks' inspecter at 650-496-6929 to arrange a site visit so he can deteID1ine what street tree work, if any, wil1 be required for this project. The site plan submitted with the bUilding pennit plan set must show the street tree work that the inspector has determined, including the tree species, size, location, staking and irrigation requirements, or include a note that Public Works' inspector has deteID1ined no street tree work is required. The plan must note that in order to do street tree work, the applicant must first obtain a Permit for Street Tree Work in the Public Right-of-yv ay from Public Works' arborist -(650-496-6905). The follewing comments are provided to assist the applicant at the building permit phase. You can obtain various plan set details, forms and guidelines from Public Works at the City's Development Center (285 Hamilton Avenue) or on Public Works' website: www.cityofpaloalto.orgidepts/pwdlformsJ)ermits. Include in plans submitted for a building permit: FLOOD ZONE: The proposed improvements are located within a Special Flood Hazard Area. Accordingly, the proposed construction (lateral addition) must meet all ef the City's and Federal Emergency Management Agency's (FEMA) requirements for construction within a flood zone, such as: the finished bottom floor must be at or above the base flood elevation (BFE); the crawl space (if used) must have flood vents; and all construction materials and equipment below the BFE must be water-resistant. Garage slabs can be below the BFE, but the garage will then need flood vents. See Pale Alto Municipal Code Section 16.52, Flood Hazard Regulations, and our website for more infonnation. The plans must show the BFE on all applicable elevations, sections and details; must include a calculation of the required amount of flood, vents; must include the flood vents on the elevations and foundation plan; must note all materials below the BFE as water-resistant; and must include the Elevation Certification Submittal Requirements for Construction in the Special Flood Hazard Area form, which is available from Public Works at the Development Center or on our website. Please note that FEMA recently (May 2009) changed the vertical datum of the flood zones. You must use the new vertical datum (NA VD'88) on plans submitted for a building pennit. LATERAL ADDITIONS TO STRUCTURES IN THE FLOOD ZONE: Ifno improvements are made to the existing structure and building the lateral addition .-_ •• -___ • ____ • ____ • _______ • ______ •• • • •• ____ • ___ ._.. ... • ••• __ ., •• 0 _ •• ___ • 559 Everett Ave. approval after Director's Hearing Individual Review 08PLN-OOOOO-00282 Page 7 of7 results in the "absolute minimum" alteration to the existing structure, then only the addition needs to be conformed to the associated flood zone regulations. This absolute minimum alteration to the existing structure shall be made to avoid the triggering of the conformance to the associated flood zone regulations. The "absolute minimum" alteration occurs when: The exterior wall dividing the addition from the existing structure is not demolished; and • Only an entrance or doorway to the addition via a standard door (36" wide or existing opening) is constructed in the existing wall; and • Only necessary structural, roofing, foundation and utility attachments are made to make the entrance possible; and The remainder of the exterior wall is left intact and no other improvements are made to the existing structure. STORM WATER POLLUTION PREVENTION: The City's full-sized "Pollution Prevention -It's Part of the Plan" sheet must be included in the plan set. Copies are available from Public W or~s at the Development Center or on our website. STREET TREES: Show all existing street trees in the public right-of-way. Any removal, relocation or planting of street trees; or excavation, trenching or pavement within 10 feet of street trees must be approved by Public Works' arborist (phone: 650-496-5953). This approval shall appear on the plans. Show construction protection of the trees per City requirements. WORK IN THE RIGHT -OF-WAY: The plans must clearly indicate any work that is . proposed in the public right-of-way, such as sidewalk replacement, driveway approach, or utility laterals. The plans must include notes that the work must be done per City standards and that the contractor performing this work must first obtain a Street Work Permit from Public Works at the Development Center. IMPERVIOUS SURFACE AREA: If the project will be creating or replacing 500 square feet or more of impervious surface, the applicant shall provide calculations of the existing and proposed impervious surface areas with the building permit application. The Impervious Area Worksheet for Land Developments form and instructions are available at the Development Center or on ourwebsite. End of Conditions of Approval· 4801 Hillsboro Circle Santa Rosa, CA 95405 Attachment B NANCY E. ROGERS-ZEGARRA Dear Mr. Williams and the Palo Alto City Council: Home: 707-527-9033 Work: 707-467-5101 November 2, 2010 I formally request an appeal of the final decision of the individual review of the project at 559 Everett Ave. Palo Alto Individual Review 08PLN-00000-00282. I am the owner of the adjacent property at 565 Everett Ave. Palo Alto. I was not able to attend the Director's Hearing on October 7, 2010. Also, I did not receive a copy of the approval letter dated October 18, 2010 from the City of Palo Alto. My brother, Stephen H. Rogers, also a co-owner of the 565 Everett Ave property emailed me the October 18th letter. There are several items in the October 18th findings letter with which we do not agree. Guideline I: Basic Site Planning: Your description of the two properties is inaccurate. The 559 property adjoins our 565 Everett Ave property on two sides. The 559 property is 50' x 144'. Starting from the sidewalk going back for 144 feet on the 565 Everett Ave. side there are several rosebushes and a low wooden fence four foot fence dividing the properties for approximately 25 feet. Next, there is a six foot wooden fence and citrus trees (not evergreen trees) planted along a thirty foot section of our drive way .. Then, one side of our wooden garage which is 25 feet long acts as the dividing line between the two properties. Finally, there is a six foot wooden fence for the remaining sixty four feet. Also, there is an additional wooden fence along the back side of the 559 property which is 50 feet long which divides our pool yard and the 559 Everett Ave property. The report makes it sound like there is dense evergreen foliage dividing the houses when in fact there is one redwood tree on the 559 property which will probably be cut down when the new structure is built. In fact, there are no evergreen trees planted along the 144' line or across the back 50' line. The current design for the 559 Everett house does greatly alter the streetscape for Everett Ave. because it adds a building which is two stories vs. one story. The new addition is a box like construction which looks like an II add on" without much thought given to the era architectural design. There is no front vegetation except a few orange trees set back 25 feet on our property to mitigate this two story addition. · \ Guideline 2: Neighborhood compatibility for Height Mass and Scale: The 559 Everett Ave. addition does not harmonize with the existing structures which are 1900 vintage wooden houses. As stated previously, the new addition is a box like construction which looks like an U add on" without much thought given to the era architectural design. The addition will be two stories not one story. The current 559 Everett Ave, house is a wooden 1920's one story bungalow style. The houses in the neighborhood are multi-million dollar properties. There have been at least six houses which have been remolded on our block and they have taken great care to build new structures which enhance the neighborhood and maintain the integrity of the buildings. The house at 575 Everett was a one story house, when it was enlarged they added a two story section which maintains the cohesiveness of the design and flows together resulting in an updated vintage house. Another house around the comer, at 558 Hawthorne Ave. which backs up to my property, maintained the front portion of the original house when it was updated but they added on in an architecturally coherent manner for the back portion of the house. Also, at 428 Everett Ave. when they remolded, they kept the historical front portion of the house but added a second level underground. The new 559 Everett design creates an U abrupt change in height" between the existing house and the projected house. This abrupt change which you noted in your report is not compatible with the existing neighborhood houses. In the approval of the plans under this category, the city also has allowed extra height, extra overhang at the eve, and a scale which is asymmetrically clumsy. The height of the addition has been allowed, by exception, which is an increase by an extra 1.5 feet higher above the code. There is no need for an exception. In addition, the visibility cone casting will create a shadow on the right side of our property which will prevent anything from growing in this area. The lawn and existing landscaping will be destroyed. The neighborhood vernacular will be severely damaged by a poorly designed structure. Our property value will be diminished by allowing a poorly designed building in an area of million dollar homes. Guideline 3: Resolution of Architectural Form, Massing and Rooflines: In your report you mention the U existing lemon trees between the driveway and the left rear comer of the existing house hide the transition between it and the addition, softening the abrupt change to 2 stories". These lemon trees are on my property. Suppose these trees die? The shadow which will be cast by the new structure will severely limit the sun. Then as you report, we are left with a house that has an U abrupt change to 2 stories" which will be visible from the street. The Architectural form of the new building which looks haphazard and boxy should not be mitigated because there are lemon trees on someone else's property which will theoretically block the proposed building. The second floor should be narrower than the first floor, but the first floor of the new part should be in line with or narrower than the existing house. This wider structure and the larger eves creates a" New York style" box structure also creating shadows, dampness, moss and an unsightly landscape. Softening of the addition between the existing house and the rear addition needs to be incorporated into the approved design. The rear hip roof of the existing house, should to be changed to prevent the rain water from flowing into the side of the new addition. Thus, there should be some off-set and connector that changes the elevation of the front roof as it changes to the rear boxy section of the roof. This feature needs to be added to the plans. Also, an appropriate earthquake design proof of a joint between one box of one floor and a box of two floors height needs to be properly addressed. Bolting through without anchors to the foundation and extra cross bracing is a concern. The proposed design will not work. If this issue is not addressed the two structures need to be separated. In addition, it is obvious that the square footage of the new addition roof, eave to eave, is greater than 500 square feet. The impervious area caused by this addition will create run-off that has no place to go except the back yard of 565 Everett. This is unacceptable. The plans cannot be allowed to go forward unless there are considerations incorporated into the approval letter which rectify our concerns. The Director's letter states, the plan will be reviewed by others, however, once the IP is approved, it has the appearance of tacit approval and it will just float through the rest of the way. Therefore, we request a hearing by the City Council and a letter addressing our concerns. Ignoring the fact that the owners of 565 could possibly build/expand on their site as well, the location, mass, height, eve overhang, dead zone in the side yard all created by this proposed construction will conflict and create unacceptable conditions. Any construction at 559 Everett Ave. which is allowed should not preclude additional expansion at 565 Everett Ave. nor should it create adverse conditions on our property at 565 Everett Ave. Guideline 4: Visual Character of Street Facing Facades and Entries: The report notes in one section that the house is built in /I good" proportion but in another section the report notes that the /I abrupt second story" is not in appropriate proportion. The new narrower addition to the house is not in proportion to the existing house and should be modified. In your report you do not mention the box-on-box appearance of the proposed design. The visual character of the proposed house does not fit in with the other vintage houses and will be a jolt to ones sensibilities. The lack of continuity and neighborhood character will cause people not to want to live in the neighborhood. A failure to insist on the "character quality" of a proposal and the allowance of the box on box appearance is a failure of the design and the maintenance of standards. Professionals on the City planning commission are supposed to help citizens maintain a standard of visual character quality and thus help maintain t ' neighborhood aesthetic appeal and property values. Once again a good example of a house which has had a proper architectural treatment and looks like it belongs in the Everett Ave/University Park Neighborhood is the home at 575 Everett. The current proposed plan for the 559 Everett Ave. addition does not live up to the current high standard of visual character which is required and if allowed to be built will detract from the neighborhood. Guideline 5: Placement of Second Story Windows and Decks for Privacy: Once again, in the report you mention the placements of the bathroom and bedroom windows on the proposed project are acceptable because the trees are blocking the windows. These citrus trees are not as tall as the proposed building and in fact they may not continue to grow if all sun light is blocked by the proposed expansion. Also, the trees are not directly in front of the proposed expansion but off to the side on our driveway. In conclusion, based on the various points discussed above, the approved plans cannot be allowed to go forward unless there are considerations incorporated into the approval letter which rectify our concerns. As approved, we object to the city's approved plan as unacceptable. Therefore, we request a hearing by the City Council to review our objections. Ignoring the fact that the owners of 565 Everett Ave could possibly build/expand on their site as well as, the location, mass, height, eve overhang, dead zone in the side yard and lack of visual character, all created by this proposed construction will conflict and create unacceptable conditions. Any construction at 559 Everett Ave. which is allowed should not preclude additional expansion at 565 Everett Ave. nor should it create adverse conditions on our property at 565 Everett Ave. I look forward to hearing from you regarding the date and time of our hearing with the Palo Alto City Council. Thank you for your attention to this request . . Sincerely, .~"'// :9" '·· ......... 7A ........... A-~y' //~ (/~ ... Y ~. /:./ , Nancy Rogers-Zegarra Stephen H. Rogers (owners of 565 Everett Ave. Palo Alto) TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE: DECEMBER 6, 2010 CMR: 434:10 REPORT TYPE: CONSENT SUBJECT: Appeal of the Director's Individual Review Approval of a New Single Family Residence at 2615 Cowper Street EXECUTIVE SUMMARY This request is an appeal of the Director's approval of a Single Family Individual Review (IR) application for a new two-story home at 2615 Cowper Street. Four or more Council Members' votes would be needed to remove this item off the consent calendar to set the matter for a future hearing. Appellants Wendy Lin and Andrew May, owners·ofthe 2624 Cowper Street located across the street, were mailed all decision and hearing notices regarding the project. The Manager of Advance Planning conducted the Director's Hearing and upheld the tentative approval. The appellants objected to the location of the front lot line and the determination of lot size, but have not stated any concern for the project's compliance with IR guidelines. The Director's approval letter (Attachment A) describes the Director's Hearing focus and includes an attachment describing the method used to calculate the subject property's lot size. The appeal letter (Attachment B) sets forth the appellants' position. RECOMMENDATION Staff recommends that the City Council decline to hear the appeal of the (IR) application (file 10PLN- 00000-00152) for a new two story home at 2615 Cowper Street, thereby upholding the Director of Planning and Community Environment's approval. BACKGROUND Council Review Authority The City's Individual Review (IR) procedure provides for City Council "call up" of appeals. When the Director approves an IR application after a Director's Hearing and a directly affected property owner appeals the decision, the project is placed before Council on the consent calendar for final action. If four Council members vote to remove the project from the consent calendar, ahearing by City Council would need to be scheduled for a subsequent date. Otherwise, the item may be approved on consent 1 calendar so that the Director's decision stands and no hearing is held. If the Council agrees to hear an appeal, a hearing is scheduled as soon as practical (PAMC 18.77.075). Project Review and Director's Approval The Director's approval letter is attached (Attachment A), and focuses upon the concerns expressed by the appellants at the Director's Hearing. The approval letter sets forth the applicable PAMC sections and noted that the project on the subject property met all of the IR guidelines and R-l zone regulations to allow the approval. The IR application was submitted on April 27, 2010. Revised plans were submitted August 4,2010 to address departmental comments. Written comments received from several neighbors prior to the revisions were addressed in the revised plans. The concerns were: (1) preservation of the 48" diameter valley oak; (2) the front setback, and (3) the architectural style and materials. The application was tentatively approved on August 25,2010. Prior to the effective approval (14 days after the tentative approval date), the appellants requested a Director's Hearing on September 7, 2010. The appellants' request for a hearing was specifically to discuss the methodology for determining the lot area of the subject site upon which the maximum allowable floor area was based. During the hearing, the appellants reported that their property had a condition wherein the front property line extended beyond the sidewalk toward the" street but that when 'they constructed a new residence in 2002, the area between the 60-foot right-of-way line and their front property line was deducted from the lot area to determine allowable floor area, such that a total of 601 square feet was deducted from the gross lot area of 6,866 square feet (s.f.) to a net lot area of 6,265 s.f .. The appellants stated that the basis for floor area on the subject site should be calculated using the same methodology as was used to determine their maximum allowable floor area, by assuming a right-of-way of 60-feet, to remove the area beyond the sidewalk to determine the floor area for development at 2615 Cowper Street. This would have resulted in a deduction of 485 s.f. of lot area (9.7 feet x 50 feet), resulting in a reduction of 145 s.f. of floor area. They stated that this method of calculation should be applied to all properties on Cowper with a similar condition. On October 8, 2010, after the October 7, 2010 Director's Hearing was held, the Director approved the application without any modification or additional conditions. The approval letter was dated October 18, 2010. On November 1, 2010, the appellant submitted the appeal to Council (Attachment B, letter of appeal). DISCUSSION The project meets all five of the guidelines for Individual Review and complies with the R-l Zone District regulations for development. The IR guidelines include criteria related to: basic site planning; neighborhood compatibility for height, mass and scale; resolution of architectural form, massing and roof lines; visual character of street facing facades and entries; and placement of second-story windows and decks for privacy. The project's compliance with the IR guidelines has not been questioned by the appellants. The individual review program applies to construction of second stories and is intended to mitigate the effects of that construction on neighboring homes. (Palo Alto Municipal Code § 18.12.110(a)). Development applications subject to IR must be consistent with these guidelines. (PAMC § 18.12.110(d)). Since the appellants have not identified any adverse affects of the proposed project or misapplication of any of the guidelines, and the IR program is "intended only 2 to mitigate the effects of second story construction" (PAMC § 18.l2.110(a)), the appellant's challenge raises no relevant issues related to the IR approval and the Director's decision should be upheld. Further, the appellants allege that treating the two properties differently is unfair and that the floor area calculation for both properties should be based on the same conditions. However, the two properties have different conditions and property lines that require treating them differently. Cowper Street Right of Way The segment of Cowper Street between Marion and Colorado Avenues is predominantly a 60-foot wide right-of-way, with the exception of where the right of way abuts the subject property and the two properties on either side of it (2601 and 2629 Cowper Street) on the same side of the street. The front property lines for 2601, 2615 and 2629 Cowper Street are located at least 9.7 feet closer to the street than the other properties on this side of the block. The front property line of the subject site is located within the area of the public sidewalk, where a "prescriptive" right of passage was assumed by staff in consultation with staff from the Public Works Engineering and City Attorney's office. The distance from the front property line to the back edge of the sidewalk is 2-feet, 10-inches, so that a total of 141.65 square-feet (50 feet by 2-feet, 10-inches) of lot area is located within the area of the sidewalk. 2615 Cowper Street Net Lot Area In determining the basis for allowable floor area for the subject property, staff required the applicant to deduct 141.65 square-feet from the gross lot area of 6,100 square-feet to a net lot area of 5,958.35 square-feet. The commensurate reduction in maximum allowable floor area was set at 45 square feet. George Tu, the owner of the subject property, submitted a copy of the legal document "Block Book (book 12, page 5) dated revised April 2, 2002" for review by the Manager of Current Planning and again at the Director's Hearing. The map clearly indicates (1) the existence of the 9.7· foot proj ection of the front property line of the subject site and two adjacent properties toward the traveled street area, unencumbered by right of way, and (2) no similar projection for 2624 Cowper Street property into the established right-of-way. The front property line of 2624 Cowper is shown as consistent with the other front property lines along that side of Cowper Street, measured at 30 feet from the centerline of the road. Appellants' Request When the appellants applied for a building permit to construct a new single-story house at 2624 Cowper Street, on June 11, 2002, the front property line had already been adjusted and the actual square-footage deducted from the total lot size. Though this information was not reflected in the City's GIS data system initially, the actual recorded map takes precedence over other information. The appellants seek the City staffs assistance with their own property as specified in their appeal letter, or as an alternative, they would wish the subject property at 2615 Cowper Street be reduced further to reflect what they believe should be a 60 foot right of way. This would result in a home with 100 square feet less floor area than the home approved through the IR process. However, because the properties owned by the appellants and the applicant do not have similar easements or similar property line locations, it is appropriate to treat them differently for calculation purposes. If, prior to issuance of building permits, recorded evidence of an easement or dedication of additional right of way on 2615 3 Cowper is discovered, the applicant would be required to deduct from the lot area the amount of such right of way. ALTERNATIVE TO STAFF RECOMMENDATION The Council's alternative to the staff recommendation IS outlined In Municipal Code Section 18.77.075(g)(2): "Remove the recommendation from the consent calendar, which shall require four votes, and set the application for a new hearing before the City Council, following which the City Council shall adopt findings and take action on the application." If the Council so directs, staff will identify a date for the hearing arid will provide appropriate public notice in advance of the hearing. POLICY IMPLICATIONS The Appeal is based on issues that are not required to be considered in the IR process, or relevant to the IR guidelines. The Director's decision to approve the application is consistent with staffs . implementation of the Individual Review Guidelines, and with the policies and intent of the Individual Review Process. ENVIRONMENTAL REVIEW This project is exempt from the provision of the California Environmental Quality Act (CEQA) per Section 15303(a) of the CEQA Guidelines. ATTACHMENTS Attachment A:j Director's Approval Letter Dated October 18, 2010 Attachment B: Appellant's Letter of Appeal Dated November 1,2010 Attachment C: Plans (Council Members Only) COURTESY COPIES Applicant: George Tu, 2615 Cowper Street Appellants: Wendy Lin and Andrew May, 2624 Cowper Street PREPARED BY: DEPARTMENT HEAD: CITY MANAGER APPROVAL: ~:::==~--­ P~ing Manager ~\N&~ CURTIS WILLIAMS Ir tor OfPlannilD~unitY Environment c,( JAMES KEENE j~ City Manager 4 Planning ATTACHMENT A October 18,2010 Yi-Ran Wu Wec & Asscciates 2625 Middlefield Road, Suite 658 Palo Alto, CA 94306 ~!tyg! P9!<?_AltQ Department of Planning and Community Environment Subject: 2615 Cowper Street; Director's Hearing Decision; Single Family Individual Review; 10PLN-00152 On October 8,2010, the Director of Planning and Communify Environment conditionally approved the Individual Review (JR) application for a new two-story home at the above address following the October 7, 2010, Director's Hearing. Tbe project was tentatively approved on August 25, 2010 ·but the tentative approval did not become effective due to a request for Director's Hearing made on September 7,2010. . . DIRECTOR'S HEARING The request for a hearing was specifically to discuss the m~thodology for determining the lot area of the subject site upon which the maximum allowable floor area was based. Attached to this letter is a description of the conditions and methodology for determining lot area for the subj ect site. The Director's Hearing was requested by the owners, Wendy Lin and Andrew May, owners. of the home at 2624 Cowper Street. These neighbors reported during the hearing that their property had a condition wherein the front property. line extended beyond the sidewalk toward the street. When they constructed a new· residence in 2002, the area between the 60-foot right-of-way line and their front property line was deducted from the lot area to detennineallowable floor area. A total of 601. square feet was deducted fram the gross lot area of 6,866 square feet (s.f.) to a net lot area of 6,i65 s.f .. The hearing requester stated that the basis for floor area on the subject site should be calculated using the same· methodology as was used ·to determine their maximum allowable floor area, by assuming a right-of-way of 60-feet, to remove the area beyond the sidewalk to determine the floor area for development at2615· Cowper Street. This would have resulted in a deduction of 485 s.f. of lot area (9~7feet x 50 feet), resulting in a reduction of 145 s.f. of floor area. They stated that this method of calculation should, in fairness, be applied to all properties on Cowper with a similar condition. DECISION AND FINDINGS Based on information received at the October 7, 2010 Director's Hearing from the applicant, the hearing requester and staff, as well as the information in the proj ect file, the Hearing Office~ decided to uphold the August 25, 2010 decision without modification. Transportation Building 250 Hamilton Avenue P.O. Box 10250 250 Hamilton Avenue P.O. Box 10250 285 Hamilton Avenue p.o. Box 10250 Palo Alto, CA 94303 650.329.2441 650.329.2154 Palo Alto, CA 94303 650.329.2520 650.617.3108 Palo Alto, CA 94303 650.329.2496 650.329.2240 The approval is hereby granted pursuant to the Palo Alto Municipal Code (P AMC) Chapter 18.12, Section 18.12.110 and Chapter 18.77, Section 18.77.075. The project meets all five of the Palo Alto Single Family Individual Review Guidelines. These include: Guideline One, Basic Site Planning, Guideline Two, Neighborhood compatibility for Height, Mass and Scale, Guideline Three, Resolution of Architectural Fonn, Massing and Rooflines, Guideline Four, Visual Character of Street Facing Facades and Entries, and Guideline Five, Placement of Second-Story Windows and Decks for Privacy. CONDITIONS OF APPROVAL: The approval is subject to the following conditions: PLANNING DIVISION 1) Apply for a building permit and meet any and all conditions of the Planning, Fire, Public Works, and Building Departments. 2) The project shall be constructed in substantial compliance with development plans received on August 4, 2010 on file with the Planning Department, 250 Hamilton Avenue, Palo Alto, California except as modified by these conditions of approval. 3) The total floor· area of the house shall not exceed 2,534.8 square feet. This is 45 square feet less than the total of 2,579.8 shown on the approved plans. The location of the reduction of the 45 square feet is at the discretion of the applicant. 4) A copy of this approval shall be printed on the first page of the plans submitted for building permit. 5) Upon submittal of an application for a building permit, building plans for any covered project shall include a checklist and green building program deSCription, reflecting any changes proposed since the planning entitlement phase (if a planning entitlement was required). The checklist shall be inc~rporated onto a separate plan sheet included with the building plans. A qualified green bUilding professional shall provide evidence of adequate green building compliance or documentation to the compliance official to satisfy the requirements of the . standards for compliance outlined in Section 18.44.040, prior to issuance of a building permit. 6) Based on the size of the proposed home, the project is required to achieve the minimum point threshold of 70 points per the City of Palo Alto Green BUilding Regulations (P AMC 18.44 Table B). This is based on a proposed house size of 2,534.8 square feet, less an allowance of 221.3 square feet for unconditioned garage space, resulting in a basis of 2,424.15 square feet. (This reflects an allowed deduction of 500/0 of the 221.3 square feet of unconditioned garage, or 110.65 square feet.) More information and the application can be found at http://www.cityofpaloalto.org/depts/plnlgreen _ building/default. asp and all questions concerning the City's Green Building Standards should be directed to Kristin Heinen at (650) 329-2189. PLANNING ARBORlST PRIOR TO DEMOLITION, BUILDING OR GRADING PERMIT ISSUANCE 1) BUILDING PERMIT SUBMITTAL REVIEW. Prior to submittal for staffreview, the plans submitted for building pennit shall be reviewed by the project site arborist to verify that all the arborist's recommendations have been incorporated into the final plan set. The submittal set shall be accompanied by the project site arborist's certification letter that the plans have incorporated the following information: a. Final Tree Protection Report (TPR) design changes ().nd preservation measures. h. Palo Alto Tree· Technical Manual Standards, Section 2.00 and P AMC 8.10.080. c. Outstanding items. Itemized list and which plan sheet the measures are to be located. d. Landscape and irrigation plans are consistent with CPA Tree Technical Manual, Section 5.45 and Appendix L, Landscaping under Native Oaks and PAMC 18.40.130. 2) SITE PLAN REQUIREMENTS. The final Plans submitted for building pelIDit shall include the following information and notes on the relevant plan sheets: a. Sheet T -1 Tree Protection-it's Part of the Plan (http://www.cityofpaloalto.org/environment/urbancanopy.asp ), Applicant shall complete the Tree Disclosure Statement. Inspections and monthly reporting by the project arborist are mandatory. (All projects: check #1; with tree preservation report: check #2-6; with landscape plan: check #7.) b. The Tree Preservation Report (TPR). There is a significar~t ordinance size Valley Oak (#5 in arborist report) on the adjacent property and over covering a significant portion of the new two-story residence on the proj ect site. This tree . shall be carefully and diligently preserved and protected. All sheets of the TPR approved by the City and' contained in the Kielty ATborist Report, dated May 9, 2010 and revised on July 6, 2010, shall be printed on numbered Sheet T-1 (T-2, T-3, etc) and added to the sheet index. c. Protective Tree Fencing Type. Delineate on grading plans, irrigation plans, site plans and utility plans, Type II fencing around Street Trees and Type I fencing around Protected/Designated trees as a bold dashed line enclosing the Tree Protection Zone (per the approved Tree Preservation Report) per. instructions on Detail #605, Sheet T-·1, and the City Tree Technical Manual, Section 6.35- Site Plans. d. Site Plan Notes. Note #1. Apply to the site plan stating, "All tree protection and inspection schedule measures, design recommendations, watering and construction scheduling shall be implemented in full by owner and contractor, as stated in the Tr~e Protection Report on Sheet T -1 and the approved p 1 ans " . Note #2. All civil plans, grading plans, irrigation plans, site plans and utility plans and relevant sheets shall include a note applying to the trees to be protected, including neighboring trees stating: "Regulated Tree--before working in this area contact the Project Site Arborist at 650-515-9783." ; Note #3. Utility plan sheets shall include the following note: "Utility trenching shall not occur within the TPZ of the protected tree. Contractor shall be responsible for ensuring that no trenching occurs within the TPZ of the protected tree by contractors, City crews or final landscape workers. See sheet T -1 for instructions." 3) TREE PROTECTION VERlFICATION. Prior to demolition, grading or building pennit issuance, a written verification from the contractor that the required protective . fencing is in place shall be submitted to the Building InspeCtions Division. The fencing shall contain required warning sign and remain in place until final inspection of the project. DURING CONSTRUCTION 4) EXCAVATION RESTRlCTIONS APPLY·(TTM, Sec. 2.20 C & D). Any approved grading, digging or trenching beneath a tree canopy shall be preformed using 'air- spade' method as a preference, with manual hand shovel as a backup. For utility trenching, including sewer line, roots exposed with diameter of 1.5 inches and greater shall remain intact and not be damaged. If directional boring method is used to tunnel beneath roots, then Table 2-1, Trenching and Tunneling Distance, shall be printed on the final plans. 5) PLAN CHANGES. Revisions and/or changes to plans before or during construction shall be reviewed and responded to by the project site arborist, Kevin Kietly at 650- 515-9783, with written letter of acceptance before submitting the revision to the city for review. 6) CONDITIONS. All Planning Department conditions of approval for the project shall be printed on the plans submitted for building permit. 7) TREE PROTECTION COMPLIANCE. The owner and contractor shall implement all protection and Contractor and Arborist Inspection Schedule measures, design recommendations and construction scheduling as stated in the TPR, and is subject to code compliance action pursuant to P AMC 8.10.080. The required protective fencing shall remain in place until final landscaping and inspection of the project. Project arborist approval must be obtained and documented in the monthly activity report sent to the City. A mandatory Monthly Tree Activity Report shall be sent monthly to the City beginning with the initial verification approval, using the template in the Tree Technical Manual, Addendum 11. 8) TREE DAMAGE. Tree Damage, Injury Mitigation and Inspections apply to Contractor. Reporting, injury mitigation measures and arborist· inspection schedule (1-5) apply pursuant to TTM, Section 2.20-2.30. Contractor shall be responsible for the repair or replacement of any publicly owned or protected trees that are damaged during the course of construction, pursuant to Title 8 of the Palo Alto Municipal .Code, and city Tree Technical Manual, Section 2.25. 9) GENERAL. The following general tree preservation measures apply to all trees to be retained: No storage of materiat topsoil, vehicles or equipment shall be permitted within the tree enclosure area. The ground under and around the tree canopy area shall not be altered. Trees to be retained shall be irrigated, aerated and maintained as necessary to ensure survival. PRIOR TO occm ANCY 10) TREE INSPECTION. The contractor shall call for an inspection by the Proj ect Arborist. A final inspection and report by the proj ect arborist shall evaluate all trees to be retained and protected, as indicated in the approved plans, the activity, health, welfare, mitigation remedies for injury, if any, and for the long term care of the trees for the new owner. The report shall provide written verification to the Planning Department that all trees, shrubs, planting and irrigation are installed and functioning as specified in the approved plans. The fmal arborist report shall be provided to the Planning Department prior to written request for temporary or final occupancy. 11) PLANNING INSPECTION. Prior to final sign off, contractor or owner shall contact the· city planner (stephen.oconnell@cityofpaloalto.org) to inspect and verify Special . Conditions relating to the tree protection measures. POST CONSTRUCTION 12) MAINTENANCE. All landscape and trees shall be maintained, watered, fertilized, and pruned according to Best Management Practices-Pruning (ANSI A300-2001 or current versIon). PUBLIC WORKS ENGINEERING 13) SIDEWALK, CURB & GUTTER: As part of this project, the applicant must replace those portions of the existing sidewalks, curbs, gutters or driveway approaches in the pubJic right-of-way along the frontage(s) of the property that are broken, badly cracked,. displaced, or non-standard, and must remove any unpermitted pavement in the planter strip. Contact Public Works' inspector at 650-496-6929 to arrange a site visit so the inspector can determine the extent of replacement work. The site plan submitted with the building permit plan set must show the extent of the replacement work or include a note that Public Works' inspector has determined no work is required. The plan must note th~t any work in the right-of-way must be done per Public Works' standards by a licensed contractor who must first obtain a Street Work Permit from Public Works at the Development Center. 14) STREET TREES: The applicant may be required to replace existing and/or add new street trees in the public right-of-way along the property's frontage. Call Public Works' arborist at 650-496-6905 to arrange a site visit so he can determine what street tree work, if any, will be required for this project. The site plan submitted with the building permit plan set must show the street tree work that the arborist has detennined, including the tree species, size, location, staking and inigation requirements. The plan must note that in order to do street tree work, the applicant must first obtain a Permit for Street Tree Work in the Public Right-of Way from Public Works' arborist. The following comments are provided to assist the applicant at the building permit phase. You can obtain various plan set details, forms and guidelines from Public Works at the City's Development Center (285 Hamilton Avenue) or on Public Works' website: www.cityofpaloa1to.org/depts/pwd/forms~ennits. Include in plans submitted for a building permit: 15) GRADING & DRAINAGE PLAN: The plan set must include a grading & drainage plan prepared by a licensed professional that includes existing and proposed spot elevations and drainage flow arrows to demonstrate proper drainage of the site. Adjacent grades must slope away from the house a minimuni of 20/0. Downspouts and splashblocks should be shown on this plan, as well as any site drainage features such as swales. Grading will not be allowed that increases drainage onto, or blocks existing drainage from,. neighboring properties. Public Works generally does not allow rainwater to be collected and discharged into the street gutter, but encourages the developer to keep rainwater onsite as much as feasible by directing runoff to landscaped and other pervious areas of the site. See the Grading & Drainage Plan Guidelines for New Single Family Residences on our website. 16) STORM WATER POLLUTION PREVENTION: The City'S full-sized "Pollution Prevention -It's Part of the Plan" sheet must be included in the plan set. Copies are available from Public Works at the Development Center or on our website. 17) STREET TREES: Show all existing street trees in the public right-of-way. Any removal, relocation or planting of street trees; or excavation, trenching or pavement within 10 feet of street trees must be approved by Public Works' arborist (phone: 650- 496-5953). This approval shall appear on the plans. Show construction protection of the trees per City requirements. 18) WORK IN THE RIGHT-OF-WAY: The plans must clearly indicate any work that is proposed in the public right-of-way, such as sidewalk replacement, driveway approach, or utility laterals. The plans must include notes that the work must be done per City standards and that the contractor performing this work must first obtain a Street Work Permit from Public Works at the Development Center. If a new driveway is in a different location than the existing driveway, then the sidewalk associated with the new driveway must be replaced with a thickened (6" thick instead of the standard 4" thick) section. Additionally, curb cuts and driveway approaches for abandoned driveways must be replaced with new curb, gutter and planter strip. 19) IMPERVIOUS SURFACE AREA: If the project will create or replace 500 square feet or more of impervious surface, the applicant shall provide calculations of the existing and proposed impervious surface areas with the building permit application. The. Impervious Area Worksheet for Land Developments form and instructions are available at the Development Center or on our website. 20) SIDEWALK ENCROACHMENT: Add a note to the building permit plan set that says, "The contractor using the city sidewalk to work on an adj acent private bUilding must do so in a manner that is safe for pedestrians using the sidewalk. The work area must be coned or. taped off while still leaving at least 4 feet of sidewalk for pedestrian use. If less than 4 feet of sidewalk is available for pedestrians, the contractor must obtain an encroachment permit from PublicWorks to close the sidewalk." This approval will become effective 14 calendar days from the postmark date. of this letter~ unless an appeal is filed. as provided by Chapter 18.77.075 of the PAMC. Please be aware that only the applicant or the owner or occupier of an adjacent property may request a hearing. An appeal may be filed by filing a written request with the City Clerk before the date the Director's decision becomes final. The written request shall be accompanied by a fee, as set forth in the municipal fee schedule. A copy of this letter shall accompany all future requests for City permits relating to this . approval. This approval expires in 12 months from the. effective date. Should you have any questions regarding this approval, please feel free to contact Stephen O'Connell at stephen.oconnell@cityofpaloalto.org (650)-329-2552. Sincerely, ~ --"-'-"'--" ~(~------~ Steven Turner Advance Planning Manager Attachment: Description Project Manager: Stephen O'Connell Attachment: Description of Conditions and Methodology for Determining 2615 Cowper Lot Area cc: Neighbor notification list Description of Conditions and Methodology for Determining 2615 Cowper Lot Area The segment of Cowper Street between Marion and Colorado Avenues is predominantly a 60-foot wide right-of-way, with the exception of the subject property and the two properties on either side of it (2601 and 2629 Cowper Street). The front property lines for 2601, 2615 and 2629 Cowper Street are located at least 9.7 feet closer to the street than the other properties on this block. The front property line of the subject site is located within the area of the public sidewalk, where there is a "prescriptive" right of passage. The distance from the front property line to the back edge of the sidewalk is 2-feet, 10-inches. A total of 141.65 square-feet (50 feet by 2-feet, 10-inches) of lot area are located within the area of the sidewalk. In detennining the basis for allowed floor area, staff required the applicant to deduct 141.65 square-feet from the gross lot area of 6,100 square-feet to a net lot area of 5,958.35 square-feet. The commensurate reduction in maximum allowable floor area was 45 square feet. George Tu, the owner of the subject site, submitted a copy of the legal document "Block Book (book 12, page 5) dated revised April 2, 2002" for review by the Manager of Current Planning and again at the Director's Hearing. The map clearly indicates (1) the existence of the 9.7 foot projection of the front property line of the subject site and two adjacent properties toward the traveled street area, unencumbered by right of way, and (2) no similar projection for 2624 Cowper Street property into the established right-of- way. The front property line of 2624 Cowper is shown as consistent with the other front property lines along that side of Cowper Street, measured at 30 feet from the centerline of the road. Therefore, when the owners of 2624 Cowper Street applied for a building pennit to construct a new single-story house on June 11, 2002, the front property line had already been adjusted and the actual square-footage deducted from the total lot size. This infonnation was not reflected in the City's GIST data system. However, the actual recorded map takes precedence over other information. Staff members from the Planning Department, Public Works and City Attorney's office had previously met to review the issue. The existing documentation was reviewed and it was determined: (1) there are no recorded city easements across the subject property, (2) a prescriptive easement can be assumed across the sidewalk, and (3) the lot area, for purpose of maximum floor area calculation, does not include the sidewalk in its entirety, the space between the sidewalk and the street, and the street itself. Q.I.TY OF PALO" LTO CITY CLERKiSbFFICr If) NOV -, AM 9: 5,3 City Council 250 Hamilton Avenue Palo Alto CA 94301 ) Dear City Council Members, Attachment B ) Wendy Lin and Andrew May 2624 Cowper St. Palo Alto, CA 94306 October 30,2010 We are writing to appeal the decisions of the Director's Hearing on 1011811 0 regarding the property located at 2615 Cowper Street. The Director's Hearing decisions stated that our front property line was reduced because of public-use easement at the time when we applied for the building permit. We believe that giving the City the correct and proper public easement is the right thing to do; we also believe that such a legal decision should be supp<?rted by proper documents. We purchased the property with a lot size of 6969.6 square feet (per county records, although the City's parcel 'report shows it as 6866 square feet), we have never received any letters from the City stating the claim of such public space. Thus we respectfully request for all legal documents showing our property front line should be reduced by 10 feet, and property size should be 6265 square feet, based on which the total floor area was calculated for our building permit. Upon obtaining the official documents, we'd like to further request the City officials to make all the changes and assist us with the appropriate changes with the County. In addition, we would like to see a proportional reduction of our tax paylnent, dating back to the date of our purchase (October 26, 2001). Should there were no such legal documents in the City records, then we'd like to request that the project at 2615 Cowper Street follow our example of-moving back the front property line by 9.7 feet as the proper easement. Finally, regardless of our property size, we, asconcemed city citizens, believe that it is only appropriate to maintain the planned street width of 60 feet throughout the entire street, for the sake of public safety and long-term cost benefits. -----_.---_._---_._-.. -.----~-.. ------.----~------... -. ------_. ----------------------------------~-------------------------------"--" --._----.. ------------- We thank you very much for your considerations of our appeal. TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: UTILITIES DATE: DECEMBER 6, 2010 CMR: 443.10 REPORT TYPE: CONSENT SUBJECT: Approval of the Agreement for the Transfer of Renewabie Energy Certificates Associated with Project Capacity and Energy of Geothermal Generating Project Number 3 to the Turlock Irrigation District RECOMMENDATION Staff recommends that the City Council approve the Agreement for the Transfer of Renewable Energy Certificates Associated with Project Capacity and Energy of Geothermal Generating Project Number 3 to the Turlock Irrigation District for the Renewable Energy Certificates that accrued during 2010 and delegate to the City Manager the authority to sign the Agreement. EXECUTIVE SUMMARY Palo Alto, along with other members of the Northern California Power Agency ("NCP A"), was a project participant under the "Agreement for Construction, Operation and Financing of Geothermal Generating Project Number Three" dated July 1, 1983. In 1984 and 1985 Palo Alto permanently transferred Palo Alto's rights to capacity and energy from the project to the Turlock Irrigation . District ("TID"). At the time of the transfers, the term "Renewable Energy Certificates" ("RECs") was not defined, but since then, RECs have become associated with the production of electricity from renewable energy resources, such as the geothermal projects. Because NCPA, as the Joint Powers Authority, is the project owner, NCPA also registers and holds the RECs associated with the geothermal projects. To facilitate the ability of project participants to avail themselves of the use of their share of the RECs, NCPA is developing a policy for the transfer of the RECs from NCP A to the NCPA project participants. This policy will take several months to develop so, to facilitate the timely sale of RECs generated in 2010, NCPA has developed an interim agreement. The NCP A Commission approved the interim agreement at its October 28, 2010 meeting. NCPA has asked Palo Alto and TID to execute an additional agreement to authorize NCPA to transfer the RECs associated with Palo Alto's original project participation to TID. BACKGROUND By 1984, staff analysis had found that the round-the-clock generation from the geothermal project was not a good fit for the City's newly forecasted small summer daytime peaking needs. CMR: 443.10 Page 1 of3 So in 1984, Palo Alto entered into a multi-party contract with other geothermal project participants to transfer their rights to capacity and energy from the project to TID who did have the need for the output. Under the "Agreement for Transfer of Rights to Capacity and Energy of Geothermal Generating Project Number 3", dated October 1,1984, (the "Transfer Agreement"), TID acquired 8.964% of Palo Alto's entitlement percentage of capacity and energy from the NCPA Geothermal Generating Project Number 3 ("Project No.3"). The following year, ina separate two-party agreement, the "Agreement Between the Turlock Irrigation District and the City of Palo Alto", dated December 30,1985, (the "1985 Agreement"), TID agreed to acquire all of Palo Alto's remaining 3.352% entitlement percentage of the capacity and energy of Project No.3. Under the Transfer Agreement and the 1985 Agreement, Palo Alto is deemed to have transferred to TID a permanent entitlement percentage of 12.316%, which represents Palo Alto's entire interest in Project No.3. The term .RECs refers to the environmental attributes that were not recognized at the time that Palo Alto entered into the Transfer Agreement and the 1985 Agreement, but that now are associated with the production of electricity from a renewable energy resource, such as the· NCPA geothermal projects. Because NCPA, as the Joint Powers Authority, is the project owner, NCPA also registers and holds the RECs associated with the geothermal projects. NCPA, on behalf of its members is developing a policy that will govern the protocol applicable to the transfer of RECs associated with the projects from NCPA to the NCPA project participants. Several proj ect participants want the ability to sell RECs accrued during 2010 (the "2010 RECs") now held by NCP A and, to support those projects participants who are in active negotiations to execute sales, NCP A has approved an interim mechanism to allow for the transfer of a limited number of 20 1 0 RECs. DISCUSSION The Agreement for the Transfer of Renewable Energy Certificates Associated with Project Capacity and Energy of Geothermal Generating Project Number 3 to the Turlock Irrigation District (the "Agreement") would be made solely for the purpose of facilitating the transfer of the 2010 RECs associated with the transferred entitlement percentages, which N CPA will transfer to TID. By executing the Agreement, Palo Alto acknowledges that TID has disclosed its intention to sell the Project No. 3's 2010 RECs, and Palo Alto agrees not to take action that will block, restrain, or otherwise impair the transfer of these 2010 RECs from NCP A to TID, or take action that will prevent the sale of these 2010 RECs by TID to any third party. Two other NCPA members, the City of Gridley and the Plumas-Sierra Rural Electric Cooperative, who also permanently transferred their entitlement percentages to TID in 1984, have also been requested to execute this new Agreement. RESOURCE IMPACT Palo Alto has not counted or had plans to include the value of the RECs from Geothermal Generating Project Number 3 in its portfolio, as it has been the custom and practice to treat the transfer agreements as transferring all rights, costs and liabilities of the project. Therefore, this Agreement is not expected to have any material resource impact on Palo Alto. POLICY IMPLICATIONS Approval of this resolution does not change existing polity or constitute any new policy. CMR: 443.10 Page 20f3 ENVIRONMENTAL REVIEW Execution of the Agreement would not result in a direct or reasonably foreseeable indirect change in the physical environment and therefore does not meet the definition of a project, pursuant to section 21065 of the California Environmental Quality Act (CEQA). ATTACHMENTS A: Agreement for the Transfer of Renewable Energy Certificates Associated with Project Capacity and Energy of Geothermal Generating Project Number 3 B: NCP A Staff Report for October 28th NCP A Commission Meeting C: Agreement for Transfer of Rights to Capacity and Energy of Geothermal Generating Project Number 3, dated as of October 1, 1984 D: Agreement Between the Turlock Irrigation District and the City of Palo Alto, dated December 30, 1985 PREPARED BY: DEPARTMENT APPROVAL: CITY MANAGER APPROVAL: DEBRA LLOYD \) L Acting Assistant Director, Utilities Resource Management -_. ---------~ ---------------------- CMR: 443.10 Page 3 of3 ;) Agreement for the Transfer of Renewable Energy Certificates Associated with Project Capacity and Energy Of Geothermal Generating Project Number 3 ATTACHMENT A This Agreement for the Transfer of Renewable Energy Credits (the "Agreement"), dated as of , 2010 (the "Effective Date") is entered into by and among the Turlock Irrigation District ("TID"), the City of Gridley ("Gridley"), the City of Palo Alto ("Palo Alto"), and the Plumas-Sierra Rural Electric Cooperative ("PSREC") (individually, "Party" and, collectively, "Parties"), with reference to the following facts: Recitals: A. Under the "Agreement for Transfer of Rights to Capacity and Energy of Geothermal Generating Project Number 3", dated as of October 1, 1984, (the "Transfer Agreement"), TID acquired "Transferred East Block Entitlement Percentages" (as such term is defined in Section 1 (f) of the Transfer Agreement) of capacity and energy of the NCPA Geothermal Generating Project Number 3 ("Project No.3") from Gridley, Palo Alto, and PSREC in the following percentages: Gridley, 0.118%; Palo Alto, 8.964%; and PSREC, 0.227%, or the sum total of 9.309%. B. By the "Agreement Between the Turlock Irrigation District and the City of Palo Alto", dated December 30, 1985 (the "1985 Agreement"), TID agreed to purchase a portion of Palo Alto's rights to capacity and energy under the "Agreement for Construction, Operation, and Financing of Geothermal Generating Project NO.3" ("Third Phase Agreement") between the Northern California Power Agency ("NCPA") and several members of NCPA, including Palo Alto. Under section 2 of the 1985 Agreement, TID agreed to acquire "all of Palo Alto's remaining 3.352% in the East Block Entitlement Percentage of the capacity and energy of the Project to which Palo Alto is entitled under the Third Phase Agreement on the terms and conditions equivalent to the Transfer Agreement." Under the Transfer Agreement and the 1985 Agreement, Palo Alto is deemed to have transferred to TID a "Permanent Transferred East Block Entitlement Percentage" of 12.316%, which represents Palo Alto's entire interest in the East Block and in Project NO.3. C. The Parties acknowledge that the sum total of the "Permanent Transferred East Block Entitlement Percentages" of Gridley, Palo Alto, and PSREC is 12.661%, they intend to clarify the ownership of RECs associated with Project No.3, and they do not intend to modify any provision of the Transfer Agreement or the 1985 Agreement or establish any firm understanding of any term or condition of either agreement by entering into this Agreement. Agreement: NOW, THEREFORE, the Parties agree, as follows: 1 1. The term "Renewable Energy Certificates" ("RECs") refers to all environmental attributes associated with the production of electricity from a renewable energy resource. Such a resource, to which this Agreement applies, includes both Project No.3 and NCPA Geothermal Project No.2, which are operated as a shared resource (collectively, the "Projects"). 2. NCPA, on behalf of its members, including the Parties to this Agreement, is developing a policy that will govern the protocol applicable to the transfer of RECs associated with the Projects from NCPA to the NCPA project participants. In furtherance of this policy, this Agreement is made solely for the purpose of facilitating the transfer of the RECs that are attributable to the "Permanent Transferred East Block Entitlement Percentages" of Gridley, Palo Alto and PSREC transferred to TID, accruing during 2010 (the "2010 RECs"), which NCPA will transfer to TID. Gridley, Palo Alto and PSREC acknowledge that TID has disclosed its intention to sell all or a portion of the 2010 RECs, and they, Gridley, Palo Alto and PSREC, agree not to take action that will block, restrain, or otherwise impair the transfer of the 2010 RECs from NCPA to TID or take action that will prevent the sale of the 2010 RECs by TID to any third party. 3. This Agreement shall apply only to the 2010 RECs that are being transferred pursuant to Section 2 hereof. Nothing in this Agreement shall be deemed or construed by the Parties to establish the terms and conditions of a binding agreement or understanding between NCPA and its members, including the Parties hereto, with respect to any RECs arising under the Transfer Agreement or the 1985 Agreement for any period after 2010, .or to constitute a waiver of any right or claim of right under the Transfer Agreement or the 1985 Agreement to suchRECs accruing after 2010. 4. TID shall indemnify and hold harmless Gridley, Palo Alto and PSREC, individually and jointly, from any and all claims, suits, liabilities, losses and damages that may arise in connection with the transfer of the 2010 RECs from NCPA to TID or in connection with the sale of such 2010 RECs by TID to any third party. 5. The Parties agree that this Agreement shall not be binding on any Party, unless and until this Agreement is approved by any such Party's governing board to the extent such approval is required by law, custom or practice or by any such Party's otherwise authorized representative. 6. The Parties agree that the normal rule of construction to the effect that any ambiguity is to be resolved against the drafting party will not be employed in the interpretation of this Agreement. 7. In the event that an action is brought in connection with any right or obligation arising, directly or indirectly, under this Agreement, the Parties agree that trial of such action will be vested exclusively in the state courts of California or in the United States District Court for the Northern District of California in the County of Sacramento, State of California. 2 8. This Agreement may be executed in any number of counterparts, each of which will be an original, but all of which together will constitute one and the same instrument. IN WITNESS WHEREOF, the Parties by their duly authorized representatives have signed this Agreement as of the Effective Date. Approved as to form TURLOCK IRRIGATION DISTRICT General Counsel . Approved as to form CITY OF GRIDLEY City Attorney I . Approved as to form CITY OF PALO ALTO Senior Asst. City Attorney Approved as to form General Counsel City Manager PLUMAS-SIERRA RURAL ELECTRIC COOPERATIVE 3 ATTACHMENT B 651 Commerce Drive Roseville, CA 95678 phone (916) 781-3636 fax (916) 783-7693 web www.ncpa.com Commission Staff Report AGENDA ITEM NO.: I ~ Date: October 21, 2010 To: NCPA Commission Subject: WREGIS Renewable Energy Certificates (REC's) Transfers Background The Western Renewable Energy Information System (WREGIS) is an independent and automated web-based renewable energy registry and tracking system that receives data on renewable energy generation and creates merchantable Renewable Energy Certificates referred to as REC's. NCPA registered to become an account holder with WREGIS on May 13, 2009 and has been registering eligible NCPA generation projects with WREGIS since June 2, 2009. The REC's associated with the output from registered units have been accumulating in NCPA's accounts from the date each generation unit was accepted for registration by WREGIS. NCPA began receiving requests from project participants to transfer WREGIS REC's from NCPA's accounts to a project participant's account beginning around March of 2010. The purpose for a project participant requesting a transfer of a REC from NCPA's account to the project participants account has been to enable a sale of the REC by the project participant to a third party. Prior to receiving a REC transfer from NCPA, project participants must register with . WREGIS to be able to accept the transfer. In order for a project participant to sell a REC to a third party, the project participant must have control or ownership of the REC. This control or ownership of NCPA project REC's is obtained through the process of NCPA electronically transferring a REC from an NCPA WREGIS account to a project participants WREGIS account. To date, NCPA has transferred REC's to only one project participant, SVP. NCPA has received transfer requests from other project participants, however, those requests were subsequently rescinded, either because the anticipated sale of the transferred REC fell through, or the project participant had not yet registered with WREGIS to be able to accept the transfer. In July of 2010, as NCPA was completing its review of the contracts associated withTID's potential exit from the agency, staff became aware of a potential ambiguity as to which project participant was entitled to REC's from the geothermal project and after reviewing the informal process being used for transferring REC's generally, put a hold on all further REC transfers until . entitlement/ownership to a REC was conclusively established and a more formalized process, buttressed with policies, procedures and agreements could be put in place to govern the REC transfers. Subsequent to NCPA placing a hold on all further transfers of REC's, TID sent a letter demanding that NCPA transfer the REC's that TID believes it is entitled to uoder the transfer agreement that it has with certain NCPAmembers in the geothermal project. NCPA is working with TID and the affected geothermal project participants to resolve any ambiguities associated with the question of who is entitled to the REC's under the transfer agreement. Separately, SVP entered into an SR: 214:10 WREGIS Renewable Energy Certificates (REC's) Transfers October 21, 2010 Page 2 agreement for sale of August 2010 REC's prior to the hold being placed on any further transfers of REC's from NCPA to a project participant's account and will need a transfer by December to support the sale that was made prior to the hold being put in place. Issue Several project participants want the ability to sell WREGIS REC's now held by NCPA on project participants behalves; one project participant has sold WREGIS REC's and requires a transfer to . support the sale and at least one project participant is in active negotiations for a sale, and will require a transfer to consummate the sales transaction if executed. To support the project participants that have either entered into a sale, or are in active negotiations to consummate a sale, NCPA is proposing to establish an interim mechanism to allow for the transfer of a limited number of 2010 WREGIS REC's and to develop a permanent mechanism in parallel with the interim mechanism, with approvals for the permanent mechanism occurring at most, two to three months after the interim mechanism. . The interim transfer mechanism would 1) ensure that NCPA is authorized to transfer REC's to the requesting participant, 2) protect the tax exempt status of the project bonds from which the REC is generated, and 3) will incorporate prOVisions to ensure that errors of any kind and adjustments to meter data that will affect entitlements to REC are addressed. The permanent transfer mechanism will build upon the interim agreement and 1) address and resolve all ambiguities associated with the question of which member is entitled to the REC, 2) address right of first refusal issues, 3) ensure that bond counsel recommendations to protect the tax exempt status of the bonds are incorporated into any sales transactions, and 4) will continue to incorporate provisions to ensure that errors of any kind and adjustments to meter data that will affect entitlements to REC are addressed. Discussion A draft Interim REC Transfer Letter Agreement is attached for the commission's approval. A separate agreement between TID and geothermal transfer participants confirming TID's rights to the geothermal REC's will be used for the pu~poses of authorizing NCPA to transfer REC's from an NCPA WREGIS account to a member's WREGIS account only. Any sales of REC's to a third party would be handled exclusively by the member receiving the transfer with no further involvement of NCPA in the commercial terms, conditions or obligations of the sale. If project participants want NCPA to sell REC's on a project participant's behalf, NCPA at some future date, will develop a program (similar to the market purchase program) to provide for this service, but views the development of the interim and permanent transfer mechanisms as the critical path items required to enable immediate REC sales as requested by the memberShip. Fiscal Impact The costs of developing the REC transfer procedures and agreements will be absorbed within the Power Management budget and allocated in accordance with the Power Management cost allocation methodology. The cost of registering eligible generating units has been included in plant budgets and will be allocated based on project participation shares. The transaction costs of effectuating a transfer through WREGIS will be allocated directly to the project participant requesting the transfer. SR: 214:10 "' . WREGIS Renewable Energy Certificates (REC's) Transfers October21,2010 Page 3 Environmental Analysis This activity would not result in a direct or reasonably foreseeable indirect change in the physical environment and is therefore not a "project" for purposes of Section 21065 the California Environmental Quality Act. No environmental review is necessary. Recommendation It is recommended that the Commission, by resolution: 1. Approve the Interim REC transfer Agreement with minor modifications as provided in item 3 below. 2. Authorize NCPA staff to transfer REC's in accordance with project participant requests and direction for the time frame specified in the Interim REC Transfer Agreement. 3. Authorize the General Manager to execute the Interim REC Transfer Agreement with minor modifications as reviewed and deemed acceptable by general counsel. Respectfully submitted, ~&ul~1VlP.. JAMES H. POPE ~ General Manager Attachments (2) \, SR: 214:10 DAVID DOCKHAM .Assistant General Manager, Power Management RESOLUTION 10-94 RESOLUTION OF THE NORTHERN CALIFORNIA POWER AGENCY APPROVING THE WREGIS RENEWABLE ENERGY CERTIFICATES TRANSFERS (reference Staff Report #214:10) WHEREAS, The Western Renewable Energy Information System (WREGIS) is an independent and automated web-:-based renewable energy registry and tracking system that receives data on renewable energy generation and creates merchantable Renewable Energy Certificates (REC's), and WHEREAS, NCPA registered to become an account holder with WREGIS on May 13, 2009 and has been registering generation units with WREGIS since June 2, 2009, and WHEREAS, NCPA has been requested to transfer REC's currently held in NCPA accounts to project participant accounts in order that project participants can retire, transfer, sell or hold the REC's to which they are entitled, and WHEREAS, NCPA is in the process of developing a permanent procedure and transfer agreement that will govern the details associated with transfer of REC's from NCPA to project participants, and WHEREAS, project participants have requested a limited transfer of REe's from NCPA to project participants in order to facilitate a possible sale of REC's before certain anticipated REC values expire, and/or to support a previously executed sale of REC's, prior to the permanent procedure and transfer agreements being finalized, and . WHEREAS, NCPA' and project participants jointly agree that an interim transfer of REC's in accordance with the Interim REC Transfer Agreement is in the mutual best interest of all project participants, and ' , WHEREAS,theenvironmental impact is addressed in Staff Report #214:10; and NOW, THEREFORE BE IT RESOLVED, that the Commission of the Northern California Power Agency; 1. Approves the Interim REC transfer Agreement with minor modifications as provided in item 3 below 2. Authorizes NCPA staff to transfer REC's in accordance with project participant requests and direction for the time frame specified in the Interim REC Transfer Agreement ,3. Authorizes the General Manager to execute the Interim REC Transfer Agreement with minor modifications as reviewed and deemed acceptable by general counsel. PASSED, ADOPTED and APPROVED this 28th day of October 2010, by the following vote on roll call: GARYW. PLASS CHAIRMAN Alameda BART Biggs Gridley Healdsburg Lodi Lompoc Palo Alto Port of Oakland Redding Roseville Santa Clara TID Truckee Donner Ukiah Plumas-Sierra -2- Abstained Absent ATTEST: DENISE DOW ASSISTANT SECRETARY INTERIM AGREEMENT FOR NCPA GEOTHERMAL PROJECTS NUMBERS 2 AND 3 TRANSFERS OF RENEWABLE ENERGY CERTIFICATES Participant: [Insert Participant Name] Period: Entire months of August through December 2010 1. NCPA is in the process of developing a permanent policy regarding the transfer of Renewable Energy Certificates ("RECs") from NCPA projects to project participants. Participant and NCPA agree that the terms and conditions of this interim letter agreement CAgreemenf'} are made solely for the purpose of facilitating the transfer of a limited set of RECs prior to the adoption of a permanent policy and associated 'Permanent Transfer Agreement" regarding the transfer of RECs from NCPA to project participants. The terms and conditions of this Agreement are specific to this Agreement and have no precedential value as to the development of the terms or conditions that are ultimately included in the permanent policy or associated "Permanent Transfer Agreemenf'. , 2. Participant hasa Project Entitlement Percentage of [6.3305%] of the Project Capacity and Energy from NCPA Geothermal Projects Numbers 2 and 3 ("Project"). Project Capacity and Energy includes, butis not limited to, all renewable and environmental attributes associated with the production of electricity from a renewable energy resource, commonly referred to as Renewable Energy Certificates ('HECs"). , 3. Participant hereby requests NCPA and NCPA agrees to electronically transfer into Participant's Western Renewable Energy Generation Information System ("WREGIS") account its pro-rata share, in whole megawatts, based on Project Entitlement Percentage, of the WREGIS certificates attributable to the generation of the Project for the time period specified above. \ 4. Such transfer shall be evidenced by the transfer of the Project RECs as electronically recorded in NCPA'~ "WREGIS" account to the WREGIS account of the Participant. NCPA acknowledges that Participant has provided NCPA with documentation of the Participant's WREGIS account. Should any regulatory or other entity require additional or alternate means to evidence the transfer of the Project RECs to the Participant, NCPA will cooperate to meet that entity's requirements. 5. NCPA agrees that the Participant owns all rights and title to its pro-rata share of Project RECs based on its Project Entitlement Percentage, and such rights and title are transferable and available for resale by the Participant. NCPA further agrees that, unless directed by the Participant in writing, it will not sell to third parties the Participant's pro-rata share of the Project RECs. 6. Participant agrees to pay for its proportionate share of NCPA's costs to carry out NCPA's REC transfer process for the Project (including WREGIS registration fees and certificate transfer costs) for the above time period. 7, Participant agrees to reimburse NCPA for NCPA's reasonable costs to respond to any investigation by WREGIS, CPUC, or any other regulatory or enforcement agency having jurisdiction as to the validity of any transferred Project REC under this letter agreement by NCPA to Participant. If more than J ~ I • r the Participant's Project REC transfers are being investigated, NCPA agrees that all such costs shall be proportionately allocated among the Project REC transfer participants based upon the total number of Project RECs under investigation. 8. Participant agrees to reimburse NCPA for NCPA's reasonable costs of responding to any claim brought by a non-regulatory/non-enforcement third party concerning the Project RECs transferred under this letter agreement from NCPA to Participant. NCPA agrees that the Participant shall be in charge of the defense of any such claim if the Participant so elects. 9. If any Project REC transferred by NCPA to the Participant is. later determined by WREGIS, CPUC, or any other regulatory or enforceable agency having jurisdiction to be invalid or inaccurate for any reason, including, but not limited to, revised meter data, Qualified Reporting Entity ("QRE") errors or WREGIS errors, Participant agrees to remedy the problem at Participant's expense. NCPA agrees that the Participant shall be in charge of remedying the problem if the Participant so elects unless the problem also involves other participants, in which case,the affected participants shall be responsible for remedying the problem. If the invalidity or inaccuracy was caused by an error by NCPA, then NCPA agrees to remedy the problem at NCPA's expense as a Project cost. Costs and losses caused by any error committed by NCPA, net of allY applicable insurance, may be allocated by NCPAto all participants in NCPA's REC transfer process for the Project in the same manner as the costs are allocated to all participants pursuant to Section 6 above. 10. Participant agrees not to transfer, assign, sell or exchange any Project RECs, directly or indirectly, in any manner, and shall not take or permit to be taken any other action or actions, which would result in any of the Project Bonds being treated as an obligation not described in Section 103(a) of the Internal Revenue Code of 1954, as amended, by reason of classification of such Bond as an "industrial development bond" within the meaning of Section 103(b) of said Code. 11. NCPA makes no representations as to whether the Project RECs qualify for or meet any renewable portfolio standards, renewable energy standards, or any other renewable type standard. NCPA is making the Project RECs available AS IS. It is the Participant's responsibility to verify whether the Project RECs will qualify for California, Federal, or other renewable requirements. [end of letter agreement] Interim Agreement for NCPA Geothermal Projects Nos. 2 and 3 For Transfers of Renewable Energy Certificates 10/2010 Page2of2 . 'I ( AGREEHENT FOR IRANSFER OF RIGHTS TO CAPACITY AND ENERGY OF GEOTHER~ll>.L GENERATING PROJECT NUMBER 3 Dated as of October 1, 1984 By and Among City of Biggs City of Gridley City of Healdsburg City of LodL City of Palo Alto City of Roseville City of Ukiah. Plumas-Sierra Rural Electric Cooperative and Turlock Irrigation District section 1. 2. 3. 4. 5. 6. 7. a. . TABLE OF CONTENTS .Title Definitions • • • • • • • II • • • • • • • • • 2 Purpose . . . , . . . . . . . . . . . . • • • 4 Construction and Operation of Proj ect •••• 4 Transfer of Rights to Capacity and Energy of the Proj ect •••••••••••••••• 4 Rates and Charges • .• • • • • • • • • • Annual Budget and Bill in g Statement •• Obligations in the Event of Default under t his Agreement ••••••• •• • • • • Obligations in Event of Default 'under the Third Phase Agreement ••••••••• • • • 5 .' . • 6 • • • 7 • • • 8 9. Transfers, Sales and Assignments of Transferred East Block Entitlement Percentages ••••••••••••••••• 9 Surplus Transferred East Block Entitlement Percentages •••••••••••••••• .10 Direction and Review ••••••••••••• 11 Insurance and Indemnification •••••••• 11 Intention to Amend Third Phase Agreement • •• 11 Term .................. • • • •• 12 Termination and Amendments ••••••••• ..12 Miscellaneous • • • • • • • • • • • • • APPENDIX A -Schedule of Transferring Participants and Transferred East Block • •• 12 Entitlement Percentages •••••••• 1 APPENDIX B -Form of Opinion of Counsel ••••••• 1 -i- AGREEMENT FOR lRANSFER OF RIGHTS 10 CAPACITY AND ENERGY OF GEOTHER!f!AL GENERATING PROJECT NUMBER 3 This Agreement, dated a s of October I!' 1984, by and among the Transferring Participants (capitalized terms used herein shall have the meanings given such terms in Section 1 hereof) and the Turlock Irrigation District, WITNESSETH: WHEREAS, each of the Transferring Participants has entered in t 0 th e Third Phase Agreement with NCPA pursuant to which NCPA' has agreed to provide, and each of the Transferring Participants has agreed to take or cause to be taken, their respective East Block Entitlement Percentages of the capacity and energy of the Project; and, \VHERFAS, the Transferring Participants have determined to tr a nsf era p 0 r t ion 0 f the i r res p e c t i veE as t B I 0 ekE n tit I e men t Percen tages of the capacity and energy of the Proj ect to the District on the tenns and conditions herein contained; and \VHERFAS, NCPA has financed the cost of the Project through the issuance of the following Bonds: $230,000 ,000 aggregate princi- pal amount of its Geothermal Project Number 3 Revenue Bonds, 1983 Series A, $90,00D,OOO aggregate principal amount of its Geothermal Project Number 3 Short Term Commercial Paper Notes, Series A, and $400,000,000 aggregate principal amount of its Geothermal Project Number 3 Revenue Bonds, 1984 Series A, a portion of the proceeds of which were applied to the payment of such Notes; and WHEREAS, the Third Phase Agreement provides that the Transferring Participants are required to make the payments relating to their respective East Block Entitlement Percentages of the capac- it y and energy of the Proj ect specified in the Third Phase Agreement, including payments with respect to Bonds, whether or not the Project is completed, operable, operating or retired and notwithstanding the suspension, interruption, interference, reduction or curtailment of Project output or the capacity and energy contracted for in whole or in part-for any reason whatsoever; and WHEREAS, the District has agreed to acquire the Permanent Transferred East Block Entitlement Percentages of the capacity and· energy of the Proj ect on the terms and condit~ons contained herein, inc Iud i n g the 0 b I i gat ion tom a k epa y m ents wit h res p e c t t 0 s u c h permanent Transferred East Block Entitlement Percentages to the extent that the Transferring Participants are obligated to make -1- . " payments for such rights to capacity and energy of the Project undar the Thi rd Phase Agreement; and WHEREAS, the District has agreed to acquire the Transferred East Block Entitlement Percentages of the capacity and energy of the Proj ect in excess of the Permanent Transferred East Block Entitlement Percentages on the terms and conditions contained herein, including the obligation to make payments with respect to such Transferred East Block Entitlement Percentages to the extent th a t the Transferring Participants are obligated to make payments for such rights to capac- ity and energy of the Project under the Third Phase Agreement; pro- vided that NCPA is able to contractually arran~e for delivery of such capacity and energy to the District on a fum basis, subject to normal transmission emergency outages and curtailment;. and WHEREAS, the transfer to the District of the Transferred East Block Entitlement Percentages of the capacity and energy of the· Proj ect is authorized under the Third Phase Agreement and under the existing Bond Resolutions; NOW THEREFORE, the parties hereto do agree as follows: 1. Definitions. Terms used herein which are defined in the Third Phase Agreement shall have the Same meanings herein as are given such terms in the Third Phase Agreement. In addition, the fol- lowing terms shall, for all purposes of th i s Agreement, have the fol- lowing meanings: (a) "District" means the Turlock Irrigation District. (b) "District Electric System" means all properties and assets, real and personal, tangible and intangible, of the District now or hereafter existing, used or pertaining to the generation, transmission, transformation, distribution and sale of electric capacity and energy, including all additions, extensions, expansions, improvements and betterments thereto and equippings thereof; pro- vided, however, that to the extent the District is not the sole owner of an asset or property or to the extent that an asset or property is used in part for the above described electric purposes, only the District's ownership interest in such asset or property or only the p art of the asset or property. so used for electric purposes shall be considefed to be part of the District Electric System. (c) "District Revenues" means all income, rents, rates, fees, charges, and other moneys derived by the District from the ownership or' operation of the District Electric System, including, without limiting the generality. of the foregoing, (i) all income, rents, rates, fees, charges or other moneys derived from the sal.e, furnishing, and supplying of the electric capacity and energy and -2- other services, facilities, and commodities sold, furnished, or supplied through the facilities of the District Electric System, (Ii) the earnings on and income derived from the investment of such income, rents, rates, fees, charges or other moneys to the extent that the use of such earnings and income is limited by or pursuant to law to the District Electric System and (iii) the proceeds derived by the District directly or indirectly from the sale, lease or other disposition of all or a part of the District Electric System as per- mitted by this Agreement, but the term "District Revenues" shall not inc Iud e (y) c us tom e rs ' d e p 0 sit s 0 r an y 0 the r d e p 0 sit s sub j e c t t 0 refund until such deposits have become the property of the District, or (z) contributions from customers for the payment of costs of con- struction of facilities to serve them. (d) "Permanent Transferred East Block Entitlement Percentage" means, as of any date of determination and with respect to each Transferring Participant, such Transferring Participant's East Block Entitlement Percentage of the capacity and energy of the Project identified in Appendix A, as being the permanently trans- ferred portion of such Transferring Participant's East Block Entitlement Percentage, as such Appendix A shall be amended from time tot i m e ina c cor dan c e wit h Sec t ion s 8 {a ) an d 1 3 her e 0 f. (e) 'Third Phase Agreement" means the "Agreement for Construction, Operation and Financing of Geothermal Generating Project Number 3" dated as of July I" 1983, by and among NCPA and the Project Participants, as amended and supplemented. (f) "Transferred East Block Entitlement Percentages" means, as of any date of determination and with respect to each Transferring P arti cip an t, such Trans ferring P arti c i p an t' s East Block Entitlement Percentage of the capacity and energy of the Project identified and set forth opposite the name of such Transferring Participant in Appendix A hereto, as such Appendix A shall be amended from time to time in accordance with Sections 8 (a) and 13 hereof; provided, how- ever, that, except for increases pursuant to Section 8(a) of this Agreement, the term "Transferred E as t Block Entitlement Percentages" s hall not include any capacity and energy of the Proj ect in excess of 9.309 percent if NCPA is unable to contractually arrange fo r delivery of such capacity and energy to the District on a firm basis subject to norm al tr an s m iss ion emergency outages and c urtailmen t. The Transfe'rring Participants shall direct NCPA to provide support ser- vices at cost to the District at the District's request during any such outages or curtailment. If the Transferred East Block Entitlement Percentages are less than that set forth in Appendix A hereto because of NCPA's inability to contractually arrange for transmission service, each of the Transferring Participants' . Transferred East Block Entitlement Percentages shall be reduced .PX..Q. .r..a.t.a. or a s otherwise agreed by the Trans ferring P arti c ip ants. -3- (g) "Transferring Participants" means those Project Participants executing th i s Agreement. 2. Purpose. The purpose of t his Agreement is to provide 'for the transfer of a portion of the Transferring Participants" East Block Entitlement Percentages of the capacity and energy of the Project to the District and to establish the terms and conditions of such transfer. 3. Construction and Operation of Project. The District acknowledges that, pursuant to the Third Phase Agreement,' NCPA has agreed to use its best efforts to cause or accomplish the construc- tion, operation and financing of the Project, the obtaining of all necessary authority and rights, and the performance of all things necessary and convenient therefor. The District will cooperate wit h NCPA to that end. The District hereby consents to the pledge and assignment to NCPA, and to any Trustee for any Bonds, of all of each Transferring Participant's right, title and interest in, to and under th i s Agreement, including a 11 or any portion of the payments received or to be received hereunder from the District. Upon notice from a Transferring Participant, NCPA or any Trustee who is an assignee of such rights, the District shall make payments due by it hereunder directly to any such Trustee. Such pledge and assignment shall be made effective for such time as the assigning Trensferring Participant shall determine and provide or as to assignments made by NCPA, as NCPA s hall determ ine and provide. 4. Transfer of Rights to Capacity and Energy of the Proj ect. (a) Subject to the terms and conditions of this Agreement, each Transferring Participant hereby sells, transfers, assigns and conveys, and the District hereby accepts and agrees to take, or cause to be taken, each Transferring Participant's Transferred East Block Entitlement Percentage to the capacity and energy of the Project. (b) Each Transferring Participant shall direct NCPA to deliver such Transferring Participant's Transferred East Block Entitlement Percentage to or for the District, subject to the terms of this",Agreement and the Third Phase Agreement. Such delivery shall be at points mutually agreed upon by NCPA and the District. Such agreement shall not be unreasonably withheld by the District and each Transferring Participant wi II direct that such agreement is not unreasonably. withheld by NCPA. The Transferring Participants shall direct NCPA to remain available to make or cause to be made all necessary and possible arrangements for transmission and support of the Transferred East Block Entitlement Percentages to such points -4- over the lines of NCPA or others. Wheeling or delivery services provided by NCPA for the District with respect to capacity and energy sales related to the Transferred East Block Entitlement Percentages shall be as provided in service schedules as provided in Article III of the Hember Service Agreement with respect to the Transferring Participants and each Transferring Participant wi Ii direct NCPA to remain available to make or cause to be made all necessary and possi.,.. ble arrangements for transmission and support to the District of its Transferred East Block Entitlement Percentages relating to such capacity and energy sal e s. 5.. Rates and Charges. (a) The District shall pay for the Transferred East Block Entitlement Percentages acquired by it pursu- ant tot his Agreement, in accordance with the provisions of Section 6 hereof, such amounts as the Transferring Participants are obligated to pay with respect to the Transferred East Block Entitlement Percentages under the Third Phase Agreement. In the event any Transferring Participant pays any amount under the Third Phase Agreement with respect to the Transferred East Block Entitlement Percentages, the District shall repay such amounts to the Transferring Participant, together with interest thereon from the date of payment, to the extent permitted by law, at an annual rate to be established by the Commission of NCPA at the time of the adoption of the then most recent annual budget. (b) The District shall make payments under this Agreement solely from the District Revenues and asan operating expense of the District Electric System. Nothing herein shall be construed as pro- hi biting th e District from using any other funds and revenues fo r purposes of satisfying any provisions of this Agreement. , (c) The District shall make payments under this Agreement whether or not the Project is completed, operable, operating or retired and notwithstanding the suspension, interruption, interfer- ence, reduction or curtailment of Project output or the capacity and energy contracted for in whole or in part for any reason whatsoever. Such payments are not subject to any reduction, whether by offset or otherwise, and are not conditioned upon performance by NCPA or any Project Participant, including any Transferring Participant, under this Agreement, the Third Phase Agreement or any other agreement. .. (d) The District covenants and agrees to establish and col- lect fees and charges for electric capacity and energy furnished through facilities of the District Electric System sufficient to pro- vide District Revenues adequate to meet its obligations under this· Agreement and to pay any and a 11 other mounts payable from or con- stituting a charge or lien upon any Or all the District Revenues. (e) The District covenants and agrees that it shall, at all times, operate the properties of the District Electric System, and the business in connection therewith, in an efficient manner and at -5- reasonable co st and s hall maintain the Dis tric t Electric System in good repair, working order and condition. (f) With regard to any capacity and energy of the Project in excess of the Permanent Transferred East Block Entitlement Percentages, notwithstanding the District's obligation under Section 5 (a) hereof, the District shall not be required to pay the costs of any capital additions to the Project which are not necessary to pro- .vide such capacity and energy to the District. To the extent not included in amounts due under Section 5 (a) hereof, the District agrees to pay an equitable share of the costs of any capital addi- tions to the Project which are necessary to provide capacity and energy in excess of the Permanent Transferred East Block Entitlement Percentages to the District. 6. Annual Budget and Billing Statement. The Transferring Participants and the District acknowledge that the Third Phase Agreement provides that, prior to the beginning of each NCPA . fiscal year, the Commission of NCPA will adopt an annual budget for such fiscal year €or costs and expenses relating to the Project and shall promptly give notice to each Project Participant of its projected share of such costs and expenses. E a c h T ran s fer r i n g Par tic i pan t w i I I d ire c t N CP A tog i v e notice to the District of the projected share of such costs and expenses related to the Transferred East Block Entitlement Percentages and to prepare a bill in g statement, based on estimates, to be sent to the District not later than the fifteenth (15th) day of each calendar month showing the amount payable by the District of costs payable under Section Sea) of this Agreement by the District for the second succeeding calendar month, and the amount of any cred- its or debits as a result of any appropriate adjustments. Amounts shown on the billing statement are due and payable thirty (30) days after the date of the billing statement. Any amount due and not paid by th e District within th i rty (30) days after the date of the bill i ng statement shall bear interest from the due date until paid a t an annual rate to be established by the Commission of NCPA at the time of adoption of the then most recent annual budget. 01 or before the day five (5) calendar months after the end of each NCPA fiscal year, the Transferring Participants shall direct NCPA to"submit to the District a statement of the aggregate monthly costs of the Transferred East Block Entitlement Percentages for such fi s c al year. If the actual aggregate monthly costs and other amounts payable for any fiscal year with respect to the Transferred East Block En titlemen t Percentages exceed the bill in g s to the District, the deficiency shall be added to the District's immediately succeed- ing billing statement. If the actual aggregate monthly costs and the District!s obligations with respect to the Transferred East Block Entitlement Percentages, and any adjustment of or credit to the District!s obligations with respect to the Transferred East Block -6- , .. Entitlement Percentages or other amounts payable for any fiscal year, are less than the billings to the District, such excess shall be credited~to the District's billing statement for such period (not to exceed the immediately succeeding six months) and in such amounts as shall be determined by NCPA. If the District questions or disputes the correctness of any billing statement by NCPA, it shall pay the amount claimed when due and shall within thirty (30) days of the receipt of such billing statement request an explanation from NCPA. If the bill is deter- mined to be incorrect, the Transferring Participants shall direct NCPA to issue a corrected bill and refund any amount which may be due the District, which refund shall bear interest from the date NCPA received payment until the date of the refund a t an annual rate to be established by the Commission of NCPA a t the time of adoption of the then most recent annual budget. If NCPA and the District fa i Ito agree on the correctness of a bill within thirty (30) days after the District has requested an explanation, the District agrees to, and the'Transferring Participants shall cause NCPA to, promptly submit the di s pu te to arb i tr at ion under section 1280 .e.t..aeg. of the Code of Civil Procedure. 7. Obligations in the Event of Default under this Agreement. (a) Upon fa i 1 u r e of the District to make any payment in full when due under this Agreement, NCPA or a Transferring Participant shall make written demand upon the District, and if said failure is not remedied within thirty (30), days from the date of such demand, such fa i 1 u res hall constitute a defaul ta t the exp ira tion of such period. Notice of such demand shall be provided to NCPA and to each other Transferring Participant by the Transferring Participant making such written demand. (b) Upon the failure of the District to make any payment, which failure constitutes a default under this Agreement, the Transferring Participants shall cause NCPA to sell and transfer for the District's account all or a portion of the District's rights to the Transferred East Block Entitlement Percentages for all or a por- tion of the remainder of the term of this Agreement, including, if so directed by the Transferring participants, such a sale to any or a II of the Transferring' Participants .. The Transferring Participants shall not permit NCPA to sell such rights to the Transferred East Block Entitlement Percentages, directly or indirectly, in any manner, and s h a II not take or permit to be taken any other action or actions, which would result in any of the Bonds being treated as an obligation not described in Section 103 (a) of the Internal Revenue Code of' 1954, as amended, by reason of classification of such Bond as an "industrial developnent bond" within the meaning of Section 103(b) of said Code. Notwithstanding that all or any portion of the District's. rights to the Transferred East Block Entitlement Percentages is so sold or transferred, the District shall remain liable to pay the full amount of its obligations under Section 5 hereof as if such sale or -7- \ . [ ~ transfer had not been made, except that such liability shall be discharged to the extent that NCPA shall receive payment from the purchaser or transferee thereof. (c) Upon the failure of the District to make any payment which failure constitutes a default under this Agreement and causes NCPA to be in default under the Steam Sales Agreement, the Project No. 2 Steam Sales Agreement or any Bond Resolution, the Transferring Participants may (in addition to the remedy provided by subsection tb) of this Section 7) terminate the provisions of this Agreement ins 0 far a s the sam e e n t i t1 e the Dis t ric t t 0 its ri g h t s tot h e Transferred E as t Block Entitlement Percentages. Irrespective of I such termination, the obligations of the District under this Agreement shall continue in full force and effect. (d) If NCPA fails to act in accordance with the direction of the Transferring Participants, the Transferring Participants shall con sen t tot h e Dis t ri c tin i t i at i n g an d m a i n t a i n in gas u it d ire c t1 y agains t NCPA to enforce t his Agreement. 8. Obligations in Event of Default u:x1Er the Tbird Phase Agreement. (a) To the extent that any Transferring Participant's East Block En ti tlem ent Percentage is increased pursuant to Section 7 (d) of the Third Phase Agreement, such Transferring Participant's Permanent Transferred East Block Entitlement Percentage transferred to the Dis tri c thereunder s hall be increased by the amount of each increase in th e Transferring Part i c ip an t' sEa s t Block Entitlement Percentage multiplied by a fraction the numerator of which is such Transferring P artic ip an t' s Permanent Transferred East Block Entitlement Percentage and the denominator of which is the Transferring Participant's East Block Entitlement Percentage each determined as of the time immedi- ately prior to such increase; provided, however, that the sum of such increases for the District shall not exceed, without written consent of the Dis t ric t, an accumulated maximum of 25% of th e aggre ga te amount of the Permanent Transferred East Block Entitlement Percentages transferred hereby, as initially set forth in Appendix A. (b) The Third Phase Agreement provides that if a Project Participant shall fail or refuse to pay any amounts due to NPPA, the fact that the other Project Participants have increased their obliga- tion to NCPA pursuant to Section 7 of the Third Phase Agreement shall not relieve the defaulting Project Participant of its liability under the Third Phase Agreement and that the nondefaulting Project participants may recover from such defaulting Project Participant any increased obligations resulting from such default. Each Transferring participant hereby assigns to the District all of its right of recovery from a defaulting Project Participant with respect to its Transferred East Block Entitlement Percentage to the extent of any · , increase in the District's obligations hereunder caused by the defaulting Project Participant. (c) If the Transferring Participants' rights under this Agreement are assigned to NCPA or a Trustee for any Bonds, NCPA, or to the extent provided in the related Bond Resolution, such Trustee, shall have the right to initiate and maintain suit to enforce this Agreement. 9. Transfers, Sales and Assignments of Transferred East Block Entitlement Percentages. The District has fu 11 and unfet- tered rights to make sales, transfers and exchanges (collectively "assignm ents") of its r i gh t s to Tran s ferred East B lock Entitlement Percentages except as expressly provided otherwise in th i s Agreement. (a) The District shall not assign ownership of all or sub- stantially all of the District Electric System to another entity until it has first complied with the provisions of this subsection (a). A consolidation with another governmental entity or change in governmental form is not deemed a transfer of ownership. (1) Such disposition or assignment shall be under terms and conditions that provide assurance that the obli- gations of the Dis tr i c t under this Agreement, and that the Transferring Participants' obligations under the Third Phase Agreement and under other agreements made or-to be made by the Transferring Participants to carry out the Proj ect, as the same relate to the Transferred East Block Entitlement Percentages will be promptly and adequately met. The Transferring Participants or NCPA may require that sufficient moneys of the District to discharge such obligations be irrevocably set aside and maintained. in a trust account, as a condition to the transfer of the District Electric System, if no other adequate assurance is avai lable. (2) The District shall give ninety (90) days advance written notice to the Transferring Participants and NCPA of any proposed transfer pursuant to this subsection (a). Appendix A tot his Agreement shall be amended as appropri- ate'to reflect any transaction pursuant to this subsection (a) • (b) Notwithstanding any other provision of this Agreement, the District shall not assign, sellr transfer or exchange any portion of its rights to Transferred East Block Entitlement Percentages, directly or indirectly, in any manner, 'and shall not take or permit to be taken any other action or actions, which would result in any of the Bon d s b e i n g t rea ted a s a.n 0 b 1 i gat ion not des c rib e din Section l03(a) of the Internal Revenue Code of 1954, as amended, by -9- reason of classification of such Bond as an "industrial developnent bond" within the meaning of Section 103 (b) of said Code. 1 O. Surplus Transferred East Block Entitlement Percentages. (a) When NCPA offers surplus capacity and energy of the Project to the Transferring Participants as provided in the Third Phase Agreement, the Transferring Participants shall, if directed by the District to do so, take and sell to the District such surplus capacity and energy. In the event there are ~more requests for sur- plus than there is surplus available, each Transferring Participant shall offer the District a portion of such surplus capacity and energy equal to the surplus capacity and energy offered to such Transferring Participant multiplied by a fraction the numerator of which is such Transferring Participant's Transferred East Block Entitlement Percentage and the denominator of which is the Transferring Participant's East Block Entitlement Percentage each determined as of the time such offer of surplus capacity and energy is made. . (b) When the District has surplus rights to capacity and energy of the Project, the Transferring Participants shall direct NCPA, if requested by the District to do so, to sell such surplus rights to Transferred East Block Entitlement Percentages on behalf of the District in the following manner: (Ii NCPA shall use its best efforts to sell such surplus rights to Transferred East Block Entitlement Percentages at a price at least equal to the District's cost therefor. (2) Transferring Participants shall have a right of first refusal, other Project Participants shall have the right of second refusal, and other NCPA members shall have the right of third refusal, at the sales prices set forth in subsections (c) and (d) of this Section 10. (3) If NCPA can purchase equivalent capacity and/or energy from other sources for less than the District's cost for ,capacity and/or energy from the Project, as the case may' be, the sales price of such capacity and/or energy to a Transferring Participant, Project Participant orNCPA member shall be equal to the cost of purchasing the capac- i ty and/or energy from such other source. (4) If the alternative cost of purchasing capacity and/or energy for Transferring Participants, Project Participants or members of NCPA is more than the District's cost for capacity and/or energy from the Project, then the sales price shall be the District's cost from the Project . -10- plus one-half the difference between the District's cost from the Proj ect and the cost of capacity andlor energy from such alternative source. ( 5 ) N CPA s h a II not s e I I s u c h rig h t s toT ran s fer red East Block Entitlement Percentages, directly or indirectly, in any manner, and shall not take or pemit to be taken any other action or actions, which would result in any of the Bonds being treated as an obligation not described in Section 103 (a) of the Internal Revenue Code of 1954, as amended, by reason of classification of such Bond as an "industrial development bond" within the meaning of Section 103 (b) of said Code. 11. Direction and Review. A II directions to NCPA with respect to the Proj ect and all meetings of NCPA in connection there- with s h a II be as provided in Section 11 of the Third Phase Agreement and for such purposes, the Transferring Participants agree that the District may vote at meetings of the Project Participants pursuant to Section 11 of the Third Phase Agreement as if it had the East Block Entitlement Percentage equal to the Transferred East Block Entitlement Percentages, and the voting rights of the Transferring Participants shall be reduced accordingly, unless the Project Participants agree at such meeting that voting will be on a one member one vote basis, with a majority vote· of those present required for action, in which case the District shall be entitled to one vote; provided that the Transferring Participants shall not agree that voting shall be on a one member one vote basis unless the District directs the Transferring Participants to do so. 12. Ins u ran c e and In d e m n i fi c at ion. The T ran s fer r i n g P arti cip an ts s h a II indemnify and hold harmless the District from any liability for personal injury or property damage resulting from any accident or occurrence arising out of or in any way related to the construction or operation o£ the Project, provided, however, that such liability of the Transferring Participants shall be limited to the extent the proceeds of insurance and other moneys available to the Transferring Participants under Section 10 of the Third Phase Agreement are available therefor. 13. Intention to Amend Third Phase Agreement. It i s the intention of the parties to this Agreement that the Third Phase Agreement shall be amended to include the District as a Project Participant and to amend the East Bock Entitlement Percentages to grant the District an East Block Entitlement Percentage equal to the Permanent Transferred East Block Entitlement Percentages, if and to the extent permitted thereunder and under any Bond Resolution. In the event of such amendment of the Third Phase Agreement, unless oth- erwise agreed to among the parties hereto, this Agreement shall remain in full force and effect but shall be construed to apply only to the Transferred East Block Entitlement Percentages in excess of -11- the Permanent Transferred East Block Entitlement Percentages from the effective date of such amendment of the Third Phase Agreement. 14. Term. (a) This Agreement shall become effective for a 11 purposes upon the ex ecuti on hereof by the Dis tdc t and th e Transferring Participants and delivery to the Transferring Participants of an opinion of an attorney or firm of attorneys acting as counsel to the District in substantially the form attached hereto as Appendix B. (b) The term of this Agreement shall continue until the termination of th e Third Phase Agreement. 15. Termination and Amendments. This Agreement shall not be subject to termination by any party under any circumstances, whether based upon the default of any other party under this Agreement, or any other instrument, or otherwise, except as specifi- c ally provided herein. 16. Miscellaneous. The headings of the sections hereof are inserted for convenience only and shall not be deemed a part of t his Agreement. If anyone or more of the covenants or agreements prwided in this Agreement to be perfontled should be determined to be invalid or contrary to law, such covenant or agreement shall be deemed and construed to be severable from the remaining covenants and agreements herein contained and shall in no way affect the validity of the remaining provisions of this Agreement. This Agreement may be executed in several counterparts, all or any of which shall be regarded for all purposes as one original and shall constitute and be but one and the same instrument. " -12- IN WITNESS h~EREDF each Transferring Participant has ex-- cuteo t his Agteenent bS its duly authorized officers, a..'id caused its official seal to be affixed hereto, and the District has executed this ]:.greernent in accoroance with the authorization of its Board as of the cate fi r s t above written. CITY OF BIGGS By An~d-.------~------------- [SEAL] CITY OF GRIDLEY By ... _ }~d_. ____________________ __ [SEAL) HEALDSBURG By~ __________________ _ And __ ..--__ ~--__ ---------- {SEAL] CITY OF LOPI BY~ __ . __ .~ _______ ~ ______ __ ArdJ __ ~ ATTEST: +:-~~. L 4/1£!1.+<~ of at i'T¥ies / [SEAL] CITY OF R'SEVILLE Bv __________ . __ And _____________________ _ [SEAL] CITY OF UXIAH By ____________________ _ And~ __________________ _ {SEAL] PLUMAS-SIERRA RURAL ELECTIU C 'COOPERATIVE By-..,. ____________________ _ Arid ..... _____ -_____ _ APPENOIX A SCHF.')ULE Or TRA"ISF!;::l!UHG PARTICIPANTS AND TR~NSFE~REO ~AST ~l~CK !NTlrLEHENT PERCENTAGES (From 1985 to End of Prolect Llfl!~. 2001 TO 1?3S 1986 1987 19S5 1981 19QO 1991· 1992 1993 1994 1~95 1996 1997 1998 1999 2000 LIFE' He"3!~ _1:1 __ .IZ1. __ ,;1. __ i~l ___ ill. _.JI1 .•• 111 ___ lll. __ 1~1 __ .lX1 ___ Ill. __ ill. __ 1Xl ••. 111_ ~_111 ___ lI1 ___ '~1. ALAHEOA 0.000 0.330 O.(lIJO 0.000 0.300 '0.000 0.000 0.000 0.000 0.000 0.0'00 0.000 0.000 0.000 0.000 0.000 0.000 atGGS 0.:>0:) 0.111 o.l1a ;).llS 0.118 0.236 0.236 O.ZH 0.236 0.236 0.236 0.209 0.209 0.20.9 0.209 0.209 0.000 GRIDl!l.Y 0.113 0.221 :>.221 u.227 5.227 c.ns 0.345 0.34$ 0.30\5 O.H5 O.H5 0.318 0.316 0.318 0.3[8 Q.31S 0.118 HEAL:lSaUl'!Q 0 • .:l00 0.321 0.327 ').827 0.827 1.5~S 1.H5 1.645 1.645 1.6~5 1.645 1.455 1.455 1045$ 1.455 1.455 0.000 LOot 0.000 0.173 0.773 ;i. 773 0.773 1.555 1.555 1.555 1.555 1.SSS 1.SSS 0.b36 0.636 0.636 0.636 0.636 0.006 t. Ol1Pt)~ 0.00;) 0.353 a .010 0.000 O. 000 0.009 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.1) on PALO ALTJ 8.?64 1.12:7 9dH 7.127 9.127 12.316 12.316 12.:310 12.316 12.316 12.316 12.J16 12.3H 12.316 12.31/0 12.316 a.9.H PLUMAS-SZE:"aA Ihl21 (l.4H 0.464 :J.46~ 0.·H,4 0.700 0.700 0.700 0,700 0.700 0.700 0.645 0.645 0.1>45 0.645 0.645 0.221 .R1lSaVlU.= O.:lO~ ~.127 5.727 5.727 5.721 B.421 8.421 ~.421 11''''27 S.H7 !104'Z7 T.aO'/' 7.809 7.509 7.809 7.B090.000 UKIAH ~~Jgn .1&JSS _l~J~5 _1.355 _l~JSS _Z&lJO _Z~I~n _z.ZGn _Z~IQQ ~Z~!Qn _~.raQ .'LiUG _'L~QO _Z~iQQ _Z~iQU _Z~~QU Q~gUQ TOTAL AT ?LlNT • Tr .. "sferr~:t tu tr.~ District 'h309 1'1.61818.61& is.f;1S Uh61B 27 .• 921. 27.924 27.924 27.924-27.924 27.92425.788 ZS.788 25.78825.788 25.78B 9.309 RESOLUTION NO. 6353 RESOLUTION OF 1HE COUNCIL OF THE CITY OF PALO AL10 APPROVING AGREEMENT FOR 1RANSFER OF RIGHTS 10 CAPACITY AND ENERGY 0 F GEOTHERMAL GENERATING PROJECT NUMBER 3 TO TURLOCK IRRIGATION DISTRICT WHER.eAS, the City of Palo Alto is a party to the "Agreement for Constriction, Operation and Financing of Geothermal Generating Project Number 3, dated as of July I, 198311 ( by and among NCPA and various Project Participants, as amended and supplemented, hereinafter referred to as the "Third Phase Agreement"; and WHE.REAS, Palo A I to desires to transfer a portion of its East Block Entitlement Percentage of the capacity and energy of the Project under the Third Phase Agreement to the Turlock Irrigation District; NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. The "Agreement for Transfer of Rights to Capacity and Energy of Geothermal Generating Project Number 3, dated as of October 1,1984, By and Among the City of Biggs, City of Gridley, City of H~aldsburg, City of Lodi, City of Palo Alto, City of Roseville, City of Ukiah, Plumas-Sierra Rural Electric Cooperative, and Turlock Irrigation District" is hereby approved. SECTION 2. The Mayor and City Manager are hereby authorized to execute t e same on behalf of the City of Palo Alto. SECTION 3. The Council ±inds and determines that none of the provisions of this resolution will have any significant environmental effect. INTRODUCED AND PASSED: February 25, 1985 AYES': Bechtel, Cobb, Fl etcher, Klein, Levy, Renzel, Sutorius, Witherspoon, 1.40011 ey NOES: None ABS1ENTIONS: None ABSENT: None City Attorney '-. ~'7 ___ 'f .... . -' Dlr~ctor of ''Finance THE FOREGOING DOCUMEN'I' " tmlFIf1J ro BE ;i.' cotmEcr CJ:P{ OF ntE ,ORIG11W: N FILElN THIS OFFICE. ' , . 'I:. HN J. TANNER ;...lTV CL~R lTV OF .W ~\ ~ I BY ,~ ........ • "I • DATED: ,'~ . ~. ~ r .... , \ . /f .' I .<; ,J " 1;1 E' C!;'" I v ATTACHMENT n A G R E E MEN T ." ,.... ... /):,,/",...1 : J J" 2 .:;-~:. . ," ~ . :'; ....... ~ ~ '" '" I _" I~ .. / :r: . MCDONOUGH' L:1 \ f.,./ BETWEEN THE TURLOCK IRRIGATION D1 AND THE CITY OF PALO ALTO ... " 1\ . \ ''';JAr'l 2 2 198~ \.~ This Ag~eement is made and entered into this 30th day of December, 1985, between the Turlock Irrigation District and the City H.A. FONTES of Palo A 1 to. ",,/ '. ( 11 ...; • / .. //. '-'-!.. i·' WHERSAS, the City of Palo Alto (PALO ALTO) and the Turlock I":'~i'-' Irrigation District (TURLOCK) are parties to that certain agreement i,!,:..:.J dated as of October 1, 1984, entitled "Agreement for Transfer of ~.,r Rights to Capacity and Energy of Geothermal Generating Project No. 3," ~-'" "" hereafter referred to as the uTransfer Agreement'·; and (,i .. '':'':/'i' WHE~EAS, pursuant to said agreement, TURLOCK has agreed to pur-/1 chase a portion of the rights of Paio Alto to capacity and energy under the "~gr2ement for Constru~tion, Operation, and Financing of Geothermal Generating Project No.3," dated as of July 1, 1983, by and among the Northern California Power Agency (NC?A) and the project par- ticipants, one of '~hom;s PALO ALTO, as such Agreei:'lent may be amended and supplemented, hereinafter reiar'l"ea to as the "Third Phasa Agree- ment"; and WHE~:AS, TUR~OCK desires to acquire and PALO ALTO wishes to transfer its remaining 3.352% interest in the East Block Entitlement Percentage of Project capacity and energy under said Third Phase Agreen:ent; and NOW, THEREFCRE, the parties hereto agree as follows: S~CTION 1. Terms used herein which are defined in the Transfer Agreement or the Third Phase Agreement shall have the same meanings herein as are given such terms in those agreements. SECTION 2. TURLOCK hereby offers to acquire from PALO ALTO all of PALO ALTOls remaining 3.352% interest in the East Block Entitlement Percentage of the capacity and energy of the Project to which PALO ALTO is entitled under the Third Phase Agreement on terms and condi- tiar.s aquiva1 cnt to the Transfer Agreement. SECTION 3. Subject to acceptance by PALO ALTO the parties intend that or. January i, 1986,01'" the com.l1ercial operation date of the first unit of Geothermal Generati~g Project No.3, whichever is sooner, TURLOCK will be de~med to have a Permanent iransfarred East aloc~ Entitlement Percentage from PALO'ALTO of an additional 3.352% I~hich together with the prior transfer to TURLOCK by PALO ALTO of 8.964% shall constitute a transfer to TUR~OCK of PALO ALTO's entire original East Block Entitlement "?ercentage. \ . '. ' ... ;. .. ::., .. -.......... _----------.---------.-------...-,-.--..... .,..."....,....~----.... ... ----.--~....., ............. """":"'".....,........ -~ ~.' " .,. , . SECTION 4. The parties agree to undertake w.hatever steps and to execute whatever documents, including but not limited to an amendment to the Transfer Agreement, they deem legally necessary and advisable to perfect the transfer of East BlocK Entitlement Percentage in a manner which is mutually agreeable. 'This Agreement shall not increase or decrease the Transferred East Block Entitlement Percentage of any Transferring Participant other than PALO ALTO as set forth in Appendix A to the Transfer Agreement • . SECTION 5. In the interimt after January 1, 1986 or the cammer .. cial operation date of the first unit of Geothermal Generating Project No.3, whichever' is sooner, NCPA is directed by both TURLOCK and PALO ALTO to treat, schedu1e, budget and prepare billings for PALO ALTO's remaining East Slock Entitlement ?ercentage of 3.352% as though it were a Permanent Transferred East Block Entitlement Percentage of TURLOCK pursuant to the Transfer Agreement, provided that NC?A is not required to do anything inconsistent with its obligations pursuant to the definition of "Transferred East Block Entitlement Percentages" contained in the Transfer Agreement. SECTION 5. This offer shall remain open until its acceptance by PALO ALTO or its prior written revocation by TURLOCK actually received by PALO ALTO. TURLOCK IRRIGATION DISTRICT ". 4 .. ." This offer is hereby acc2?ted by the City Gf Pa10 Alto and shall be deemed effective as of the date and year above written. I ' , ATTESi: I , ... CITY OF PALO ALTO , . " , APPROVED AS TO FORM: Senior ;Assistant City Attorney APPROVED: tHrec tor of 'Ut iIi 1;A'es / ',' '--------, .-----....--------~---......--.... --------. ... ~ ..... -, "." ..... -..... TO: HONORABLE CITY COUNCIL j<'ROM: CITY-MANAGER DATE: DECEMBER 6,2010 REPORT TYPE: CONSENT DEPARTMENT: ADMINISTRATIVE SERVICES CMR: 437:10 SUBJECT: Adoption of a Resolution Summarily Vacating a 5-foot Future Street Easement at 3708 Laguna Avenue RECOMMENDATION Staff recommends that Council approve the attached Resolution Summarily Vacating a 5-foot future street easement (Easement) at 3708 Laguna Avenue, Palo Alto, CA. DISCUSSION The owner of the property at 3708 Laguna Avenue has requested that the City vaeate a 5-foot wide future street easement which runs along the northeast frontage of his propelty (see attached map). The owner found that the easement encompasses an area where their front yard landscaping exists and a large healthy mature tree is located. The owner has requested the easement vacation in order to clear up title to the property, City staff has confirmed that there are no public utilities located within the casement area and there are no plans to widen Laguna Avenue. The area to be vacated lies within the front setback which is limited to landscaping, fences 01' driveway. The 5-foot future street easemcnt dedication was identii1ed within the March 1955 Record of Survey of the A. Williams and J. Blackhurst Properties, however, it was never used or needed and is considered excess right-of-way. Staff has reeeived eonfirmation from the City Utilities, Public Works and Planning departments, as well as AT&T, formerly Pacific Bell, that there are no existing utilities within the easement, and there is no plan or futw'e need for the easement. The Transportation Division has confirmed there is no future plan or need to widen the street for vehicle or bike/pedestrian pW'Poses. As this easement has never been used, and there are no plans or need for its use, the easement constitutes excess right-of-way, which may be swnmarily vacated in accordance with Section 8334 of the California Streets and Highways Code. RESOURCE IMPACT TIle easement vacation processing fee of $1,675.00, as set forth in the Municipal Fee Schedule, has been paid by the owner. CMR:437:10 Page 1 of2 POLICY IMPLICATIONS The recommendation does not represent any change to City policies. The Planning Department has determined that the vacation of this easement does not impact the existing site's conformity with the Palo Alto'Comprehensive Plall. ENVIRONMENTAL REVIEW The proposed summary vacation of the 5' future street widening easement is categorically exempt from the review under the California Environmental Quality Act (CEQA) pursuant to Title 14 California Code of Regulations Section 15305 as a minor alteration in land use limitations. PREPARED BY: ~ARTHA MILLER'" Manager, Real Property DEPARTMENT HEAD APPROVAL: T? ;rat'. <2 » CITY MANAGER APPROVAL: ATTACHMENTS . . fj! LALO PEREZ ,~ Director, Administrative S«l'vices ~LO"~y) . to;::: JAMES KEENE City Manager Attachment A: Summary Vacation Resolution Attachment B: Site Map cc: property owner CMR:437:10 Page 2 of2 ATTACHMENT A Recorded at no charge in accordance with Streets & Highways Code Section 8325 at the request of and when recorded return to: CITY OF PALO ALTO/REAL ESTATE 250 Hamilton Avenue P.O. BOX 10250 PALO ALTO, CA 94303 SPACE ABOVE LINE FOR RECORDER'S USE A.P. No.: Proj ect No.: 137-17-014 CEV 10/01 Project: Vacation of Easement 3708 Laguna Avenue SUMMARY VACATION RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO SUMMARILY VACATING A 5-FOOT FUTURE STREET EASEMENT AT 3708 LAGUNA AVENUE WHEREAS, Chapter 4 of the Public Streets, Highways and Service Easements Vacation Law, commencing with Streets and Highways Code section 8330, provides for summary vacation of streets and public service easements; and WHEREAS, the City of Palo Alto maps show a 5-foot future street easement at 3708 Laguna Avenue as shown on that certain map entitled, "Record of Survey of the A. Williams and J. Blackhurst Properties", recorded in the Office of the Recorder of the County of Santa Clara, on May 13, 1955, in Book 58 of Maps at page 11; and WHEREAS, this 5-foot future street easement has never been used and there are no utilities or public improvements located within the easement to be vacated; and WHEREAS, Section 8334 of the Streets and Highways Code authorizes the City Council to summarily vacate excess right-of- way for a street which is not required for street or highway purposes; and 1 WHEREAS, the City Council intends to summarily vacate the 5-foot future street easement, as more particularly described in Exhibit "Au, attached to this resolution and depicted on the plat map attached as Exhibit "BU to this resolution; and NOW, THEREFORE, the City Council does hereby RESOLVE as follows: SECTION 1. This vacation is made under the authority of California Streets and Highways Code Chapter 4 of part 3 of Division 9, commencing at Section 8330 et. seq. 1. The 5-foot future street easement is excess right-of-way and is not required for street or highway purposes, and there are no public facilities located within the easement; and 2. The 5-foot future street easement is not needed or prospective street or highway purposes facilities and as such has been determined to and for present or public be excess; 3. The public convenience and necessity do not require reservation of any portion of the easement; and 4. The Council has considered the Palo Alto Comprehensive Plan and ratifies the determination of the planning department that the vacation of the 5-foot future street easement is in conformity with the Palo Alto Comprehensive Plan. SECTION 2. Based upon the findings made in Section 1 of this Resolution and the provisions of Section 8334 of the Streets and Highways Code, the City Council does hereby order that the 5-foot future street easement as shown on the attached map shall be and hereby is summarily vacated. SECTION 3. The City Clerk, acting by and through the Real Property Manager, is hereby directed to record at Santa Clara County Records a certified copy of this Resolution, including the Maps. SECTION 4. The 5-foot future street easement described in Exhibit "AU and depicted in the plat map attached as Exhibit "BU will no longer constitute a public street right-of-way easement from and after the date of recordation of the documents identified in Section 3 of this Resolution. SECTION 5. The Council finds that the summary vacation 2 of the 5-foot future street easement is exempt from review under the California Environmental Act pursuant to Title 14 California Code of Regulations section 15305 as a minor alteration in land use limitations. . INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney APPROVED: Mayor APPROVED: City Manager Director of Administrative Services 3 EXHIBIT "AU LEGAL DESCRIPTION FUTURE STREET EASEMENT TO BE REMOVED All that certain real property situated in the City of Palo Alto, County of Santa Clara, State of California, described as follows: Beginning at the southwesterly line of Laguna Avenue and the most northerly corner of that certain 0.255 aCre tract, as shown on that certain Record of Survey recorded in Book 58 of Maps, page 11, Santa Clara County Records;. Thence running along the southwesterly line of Laguna Avenue South 56 Degrees 55 Minutes 00 Seconds East a distance of 60.00 feet; thence South 33 Degrees 05 Minutes 00 Seconds West a distance of 5.00 feet; thence North 56 Degrees 55 Minutes 00 seconds West a distance of 60.00 feet; thence North 33 Degrees 05 Minutes 00 Seconds East a distance 5.00 feet to the Point of Beginning of this description. Containing 300 square feet. Easement to be removed is shown on Exhibit B and made a part hereof. APN 137-17-014 END OF LEGAL DESCRIPTION , .: ATTACHMENT B EXHIBIT "So> LEGEND BOUNDARY EASEMENT CENTERLINE A PLAT TO ACCOMPANY. A LEGAL DESCRIPTION WESTf' ALL ENGINEERS, INC. SARATOGA. CALIFORNIA 2005-117 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DATE: DECEMl)ER 6, 2010 REPORT TYPE: CONSENT DEPARTMENT: ADMINISTRATIVE SERVICES CMR: 438:10 SUBJECT: Adoption of a Resolution Summarily Vacating a Pipeline Easement at 4140 Old Adobe Road RECOMMENDATION Staff recommends that Council approve the attached Resolution Summarily Vacating a pipeline easement (Easement) at 4140 Old Adobe Road, Palo Alto, CA. DISCUSSION The owners of the property at 4140 Old Adobe Road have requested that the City vacate a pipeline easement that appeared on the title report for the home at 4140 Old Adobe Road, which they recently purchased. The easement appears to have originated many years before the lot was established and the home built. The easement was established to provide water from a well that existed in an area that is now Old Adobe Road. The pipeline ran across this pareel and an easement was established in 1944, however, in 1969 when the City constructed Old Adobe Road the well was sealed and abandoned. The easement remained in place and was never vacated and the owners are now requesting that the City vacate the easement that appears to run directly under the home which was built in 1970. Staff has received confirmation from the City Utilities, Public Works and Planning depaltments, as well as AT&T, formerly Pacific Bell, that there are no existing utilities within the easement, and there is no plan or future need for the easement. As this easement has never been used, and there are no plans or need for its use it may be summarily vaeated in accordance with Seetion 8333 of the California Streets and Highways Code. RESOURCE IMPACT The easement vacation processing fee of $1,675.00, as set forth in the Municipal Fee Schedule, has been paid by the owner .. CMR:438:10 Page lof2 POLICY IMPLICATIONS The recommendation does not represent any change to City policies. The Planning Department has determined that the vacation of this casement does not impact the existing site's conformity with the Palo Alto Comprehensive Plan. ENVIRONMENTAL REVIEW The proposed summary vacation of the pipeline easement is categorically exempt from the review under the California Environmental Quality Act (CEQA) pursuant to Title 14 California Code of Regulations Section 15305 as a 'nor alteration in land use limitations. PREPARED BY: Manager, Real Property DEPARTMENT HEAD APPROVAL: CITY MANAGER APPROVAL: ATTACHMENTS Attachment A: Summary Vacation Resolution Attachment B: Site Map cc: property owner CMR:438:IO ~"'LALO PEREZ Director, Administrative Services City Manager Page 2 of2 ATTACHMENT A Recorded at no charge in accordance with Streets & Highways Code Section 8325 at the request of and when recorded return to: CITY OF PALO ALTO/REAL ESTATE 250 Hamilton Avenue P.O. BOX 10250 PALO ALTO, CA 94303 SPACE ABOVE LINE FOR RECORDER'S USE SUMMARY A.P. No.: Project No.: project: RESOLUTION NO. 175-20-072 CEV 10/02 vacation of Easement 4140 Old Adobe Road RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO SUMMARILY VACATING A PIPELINE EASEMENT AT 4140 OLD ADOBE ROAD WHEREAS, Chapter 4 of the Public Streets, Highways and Service Easements Vacation Law, commencing with Streets and Highways Code section 8330, provides for summary vacation of streets and public service easements; and WHEREAS, the City of Palo Alto maps show a pipeline easement for utilities on the property located at 4140 Old Adobe Road as shown on the Tract No. 4813 Clark Subdivision Map, filed in the Office of the Recorder of the County of Santa Clara, on November 20, 1970 in Book 275 of Maps at Pages 38 and 39; and WHEREAS, this pipeline easement is no longer used and all facili ties were removed long ago and there are no other utilities within the easement to be vacated; and WHEREAS, Section 8333 of the Streets and Highways Code authorizes the City Council to summarily vacate public service utilities easements which are no longer necessary or used; and WHEREAS, the City Council intends the pipeline public service easement for particularly described in Exhibit "Au, to summarily vacate utilities, as more attached to this 1 resolution and depicted on the plat map attached as Exhibit "B" to this resolution; and NOW, THEREFORE, the City Council does hereby RESOLVE as follows: SECTION 1. This vacation is made under the authority of California Streets and Highways Code Chapter 4 of part 3 of Division 9, commencing at Section 8330 et. seq. 1. The pipeline public service easement is no longer used or necessary, has not been used for the past 5 years preceding this proposed vacation and no public facilities are located within the easement; and :2. The pipeline public service easement is not needed for present or prospective public facilities and as such has been determined to be excess; and 3. The public convenience and necessity do not require reservation of any portion of the easement; and 4. The Council has considered the Palo Alto Comprehensive Plan and ratifies the determination of the planning department that the vacation of the pipeline public service easement is in conformity with the Palo Alto Comprehensive Plan. I3~CTI~~. Based upon the ,findings made in Section 1 of this Resolution and the prov~s10ns of Section 8333 of the Streets and Highways Code, the City Council does hereby order that the pipeline public service easement as shown on the attached map shall be and hereby is summarily vacated. SECTION 3. The City Clerk, acting, by and through the Real Property Manager, is hereby directed to record at Santa Clara County Records a certified copy of this Resolution, including the Maps. SECTION 4. The pipeline easement for utilities described in Exhibit "A" and depicted in the plat map attached as Exhibit "B" will no longer constitute a public service easement from and after the date of recordation of the documents identified in Section 3 of this Resolution. SECTION 5. The Council finds that the summary vacation of the pipeline public service easement is exempt from review under the California Environmental Act pursuant to Title 14 California Code of Regulations section 15305 as a minor alteration in land use limitations. 2 INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney APPROVED: Mayor APPROVED: City Manager Director of Administrative Services 3 L LEGAL DESCRIPTION EXHIBIT 'A' PIPELINE EASEMENT TO BE VACATED All that certain parcel of land situate in the City of Palo Alto, County of Santa Clara, State of California, more particularly described as follows: BEING a portion of Lot 4 as shown on the map of Tract No. 4813 entitled "CLARK SUBDIVISION", filed on November 20, 1970 in Book 275 of Maps at Pages 38 and 39, Santa Clara County records, said pipeline being called for in the Deed of Executrix between Jane Townley Clark, executrix of the last will of David B. Clark, deceased, grantor, and Herbert V. Alvard and Elizabeth H. Alvard, as jOint tenants, grantees, recorded in Book 1241 of Official Records at Pages 19 through 20 and in the Quit Claim from Esther B. Clark to Herbert V. Alvard and Elizabeth H. Alvard recorded in Book 1448 of Official Records at Page 244, both of Santa Clara County records, the centerline of which is more particularly described as follows: BEGINNING at the southeast corner of said Lot 4; thence along the easterly line of said Lot 4 the following two courses: 1) North 07° 56' 44" West, 47.55 feet and 2) North 07° 31' 40" West, 36.3 feet to the TRUE POINT OF BEGINNING of the centerline herein described; thence leaving said easterly line, South 84° 57' 24" West, 226.77 feet; thence North 30° 27' 22" West, 24.62 feet to a point on the westerly line of said Lot 4 and the terminus of said easement centerline, from which the northwest corner of said Lot 4 bears North 06° 29' 37" West, 102.01 feet. Vacated pipeline easement is shown on attached plat Exhibit B and made a part hereof. END OF DESCRIPTION This description is based upon the courses shown on the map of Tract No. 4813 entitled "CLARK SUBDIVISION" filed on November 20, 1970 in Book 275 of Maps at Pages 38 and 39, Santa Clara County records. APN: 175-20-072 I~D.~ Kristina D. Comerer, PLS 6766 Date: O~ 12.'2010 L ) SURVEYOR'S STATEMENT ATTACHMENT B THIS MAP CORRECTLY REPRESENTS A SURVEY MADE BY ME OR UNDER MY DIRECTION IN CONFORMANCE WITH THE REQUIREMENTS OF THE PROFESSIONAL LAND SURVEYORS' ACT AT THE REQUEST OF TINA S~N OCTOBER 2010. D.~ KRISTINA D. COMERER. PLS 6766 LOT 3 TRUE POINT OF BEGINNING , CENTERLINE PIPELINE EASEMENT~ PER 1241 O.R. 19 AND 1448 O.R. 244 AS SHOWN ON MAP OF TRACT NO. 4813 , TO BE VACATED 175-20-072 LANDS OF WANG AND SUGIMOTO DOC. NO. 20826251 LOT 4 LEGEND BOUNDARY LINE LOT LINE CENTER LINE N 30'27'22" W 24.62 J;, ~'~~ -....I -l'-, :E , \ , " "-----------. POINT OF BEGINNING SOUTHEAST CORNER LOT 4 TRAcT NO. 48J3 cLARK SU8DJYJSJON 275 Ivl. 38 & 39 LOT 5 l_---,~~::::..Noi~~iW~:::,..~:J~~ SCALE: 1" = 40' ,02.01 N 06'29'37" W CROSS LAND SURVEYING, INC. 19L2210 MT. PLEASANT ROAD NORTHWEST CORNER LOT 4 13'-S'1!;£S~'7~\~~l4a PROJECT NO.: 10-52 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DATE: DECEMBER 13, 2010 REPORT TYPE: CONSENT ITEM DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT CMR: 444:10 SUBJECT: Approval of Amendment No. Four to Agreement with the Housing Trust of Santa Clara County, Inc. to Provide a Contribution in the Amount of $100,000 from the Residential Housing Fund for Fiscal Year 2010/11 to be Expended Through Fiscal Year 2014115. EXECUTIVE SUMMARY Council approval of the recommended actions will provide an additional $100,000 in financial contributions to the Housing Trust of Santa Clara County, Inc. (HTSCC) to support activities and efforts to increase affordable housing opportunities. The City of Palo Alto has provided a total of $850,000 in financial contributions since the inception of the HTSCC to increase affordable housing opportunities in Palo Alto. HTSCC has invested close to $2.85 million in Palo Alto through its homeless/special needs and multi-family residential loan programs, and first-time homebuyer assistance program. No General Fund monies are being used for this housing activity. Only Housing funds collected through developer fees are used to contribute to HTSCC and are restricted for the development of affordable housing and no other purpose. RECOMMENDATION Staff recommends that Council: 1. Approve Amendment No. Four to Agreement with the Housing Trust of Santa Clara County, Inc. to Provide a Contribution in the Amount of $100,000 from the Residential Housing Fund for Fiscal Year 2010/11 to be Expended Through Fiscal Year 2013/14. 2. Authorize the City Manager to execute the Amendment No. Four with the Housing Trust of Santa Clara County, Inc. BACKGROUND In 2000, the Housing Trust of Santa Clara County, Inc. was created to provide additional financial resources to address the County's affordable housing deficit. The HTSCC's initial CMR: 444:10 10f3 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 Palo Alto. The City provided additional funding in the amount of $150,000, $100,000, and $100,000 in 2004, 2009, and 2010, respectively. On June 21, 2010, the City Council adopted the budget for FYI Dill which includes an allocation of $100,000 from the Residential Housing Fund for a City contribution to HTSCC. DISCUSSION The City's participation in the Housing Trust has increased the available housing funding for a number of Palo of Alto projects. Since the execution of the Agreement with the City, the HTSCC has loaned approximately $2.74 million to non-profit housing developers for various projects in Palo Alto as shown below. Number of HTSCC Pro.iect Name Units Loan Amount Opportunity Center 89 $ 650,000 Oak Court Apartments 53 $ 400,000 Fabian Way Senior Housing 56 $ 689,439 Tree House 35 $ 500,000 801 Alma Family Housing 50 $ 500,000 Total 283 $ 2,739,439 In addition, the HTSCC invested close to $111,000, assisting 17 households 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. The City's adopted FY10111 budget includes an allocation of $100,000 from the Residential Fund to the HTSCC. Since the City has already entered into an agreement with the HTSCC and the terms for the use of the funds are unchanged, the existing Agreement needs only to be amended to reflect the additional contribution. RESOURCE IMPACT On June 21, 2010, the City Council adopted the budget for FYI 011 1 which includes an allocation of $100,000 from the Residential Housing Fund for a City contribution to HTSCC. The contribution of $100,000 will reduce the Residential Housing Fund to approximately $1 million from its available uncommitted current balance of approximately $1.1 million. No General Fund monies are being used. for this housing activity. POLICY IMPLICATIONS The recommendation furthers Comprehensive Plan policies that support addressing housing needs on a regional basis and working with outside agencies and other jurisdictions to develop and implement housing programs. CMR: 444:10 20f3 ENVIRONMENTAL REVIEW This action is not considered a project subject to the California Environmental Quality Act, as it would not cause a physical change in the environment. PREPARED BY: Senior Planner DEPARTMENT HEAD REVIEW: ~ \N~~ CURTIS WILLIAMS, Director Planning and Community Environment CITY MANAGER APPROVAL: ATTACHMENTS Attachment A: Attachment B: Amendment No. Four to the Agreement between the City of Palo Alto and Housing Trust of Santa Clara County, Inc. Agreement between the City of Palo Alto and Housing Trust of Santa Clara County, Inc. COURTESY COPIES Housing Trust of Santa Clara County CMR: 444:10 3 of3 ATTACHMENT A AMENDMENT NO. FOUR TO AGREEMENT NO C1136231 BETWEEN THE CITY OF PALO ALTO AND HOUSING TRUST OF SANTA CLARA COUNTY, INC., a California Nonprofit Corporation This Amendment No. Four ("Amendment") to Agreement No. CI136231 ("Agreement") is entered into , by and between the CITY OF PALO ALTO ("CITY"), and HOUSING TRUST OF SANTA CLARA COUNTY, INC., a California Nonprofit Corporation, ("HTSCC"). RECITALS: WHEREAS, on May 7, 2001, the Agreement was entered into between the parties regarding the City's initial contribution of $500,000 to HTSCC; and WHEREAS, on July 12, 2004, the Agreement was amended to reflect an increase in the amount of the City of Palo Alto's contribution to HTSCC by an additional $100,000 to be expended in fiscal year 2004-05 and an additional $50,000 to be expended in fiscal year 2005- 06; and WHEREAS, on April 16, 2007, the City Council approved a time extension allowing for the expenditure of the City's contribution of$50,000 made in fiscal year 2005-06 through fiscal year 2009-10; and WHEREAS, on May 11,2009, the Agreement was amended to reflect an increase in the amount of the City of Palo Alto's contribution to HTSCC by a second $100,000 to be expended through fiscal year 2013-14; and WHEREAS, on February 8, 2010, the Agreement was amended to reflect an increase in the amount of the City of Palo Alto's contribution to HTSCC by a third $100,000 to be expended through fiscal year 2013-14; 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 $100,000 in Residential Housing Fund for the City of Palo Alto's contribution to HTSCC 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 I. Section 2 of the Agreement, entitled "Deposit of City's Residential Housing In-Lieu Funds into Endowment Fund" IS hereby amended to read, as follows: "City agreed to deposit the sum of $500,000 in the Endowment Fund within thirty (30) days after the mutual execution and delivery of this Agreement. City agreed to deposit an additional sum of $100,000 within thirty (30) days after the mutual execution of Amendment No. One to the Agreement and, subject to appropriation by the City Council, to deposit the sum of $50,000 by no later than thirty (30) days of the beginning of fiscal year 2005-06. The patties agree that the first additional sum of $100,000, which was to be deposited within thirty (30) days after execution of Amendment No. One to the Agreement, had to be expended in fiscal year 2004-05 and the $50,000, which was to be deposited within thirty (30) days of the beginning of fiscal year 2005-06, had to be expended through fiscal year 2009-IO.The second additional sum of $100,000, which was to be deposited within thirty (30) days of beginning of fiscal year 2008-09, shall be expended through fiscal year 2013-14.The third additional sum of $100,000, which was to be deposited within thirty (30) days of the beginning of fiscal year 2009-10, shall be expended through fiscal year 2013-14. City agrees to deposit the fourth additional sum of $100,000 within thirty (30) days after mutual execution of this Amendment No. Four to the Agreement, which shall be expended through fiscal year 2014-2015, and according to paragraph 3.2.2 of the Agreement." SECTION 2. Except as herein modified, all other provisions of the Agreement, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. II II II II II II II II II II II II II II II II II II II II II IN WITNESS WHEREOF, the parties have by their duly authorized representatives. executed this Amendment No.4 as of the date first above written. APPROVED AS TO FORM: Senior Asst. City Attorney APPROVED: ... Director of·Administrative·· Services Director of Planning and Community Environment Insurance Review ClTYOF PALO ALTO City. Manager HOUSING TRUST OF SANTA CLARA COUNTY, INC., a California nonprofit corporation Taxpaxer Identification No. . . "...3--OS,=! '5 I 3 s: (Compliance with Corp. Code & 313 is required If th. enlily on whose behalf this contcscl Is signed is a corporation. ]n the allemaUve, 8 certified corporatc~ resolution attesting to the sIgnatory authority of the individual signing In their respectIve capaoitles Is acceptable.) CERTIFICATE Or ACKNOWLEDGMENT (Civil Code § 1189) , STATE OF CALIFORNIA ) COUN,;.y OF "Sq 'I\. Tq C~q<tt ? On \'2.. ').'\0 ,beforeme, M<2\'\,S2:><tC,.k)\er,anotarypublicinand for said County, persortallyappeared \<..12.11\.. Ye..CL5.E?-I who proved to me on the basis of satisfactory evidence to be the person(st whose name(st Is:laJ:e. s\lbscribed to the within instrument and acknowledged to me th,at helst:lellJ:ley executed the ' same in his!t:lerllAelr authorized capjilcity(iest, and that by hls/Rer/thelr slgnature(e-) on the Instrument the person~), or the entity upon behalf of which the person(-sracted. executed the instrument. I certify Ulider penalty of perjury under the laws of the State of California that tlie foregoing paragraph is true and correct. WITNESS my hand and official seal. ~)i~~. Notary Public ' r·:~i,i~:j_.,>-... Wl.!'.N'~.~".~~ ~ . . MELISSA G. MILLER ff ' COMM. # 1742023 ;;' NOtARY PUBL.IC .. CALIFORNIA~ SAUTA CLARA COUI.JTY ....... Comm. 2011 CERTIFICATE OF ACKNOWLEDGMENT (Civil Code § 1189) STATE· OF CALIFORNIA· ) . -. ) COUNTYOF-:2c,Js ClOie,,) On 1" (Droke! al, clJIO, before me~~dOr~ ~ l,.~ cA ,a notary public in and for said County, personally appeared tiZCwI-= who proved to . me on the basis of satisfactory evidence to be the person(sfwhose name(s)-is/ate subscribed tothe within instrument and acknowledged to me th~t h.e/sJ:lelt1J.e1 executed the same in his/I)eflthell' authorized capacity(~; and that by his/her/their signatureW on the Instrumentthe person(sf. or the entity upon behalf of which the person(s1" acted, executed the instrument. I certify under penalty of perjury under the laws of the St e of Callto la that the foregoing paragraph is true and correct. WITNESS my hand and official seal . .. Wl.l.~l!lf 1 • Commlalon" 179UN I Nola" fIubIIc • CoIIIomIa I J Sonia Clara County ~ • ••••• '~!,*,Mar''''012 f cassssse AGREEMENT BETWEEN CITY OF PALO ALTO AND ) ATTACHMENT B HOUSING TRUST OF SANTA CLARA COUNTY, INC. REGARDING A CONTRIBUTION TO THE SANTA CLARA COUNTY HOUSING TRUST FUND ENDOwMENT THIS AGREEMENT is made and entered into as of t-1. 1 . , 2001, by and between THE CITY OF PALO ALTO (City) and HOUSING TRUST OF SANTA CLARA .COUNTY, INC .. ("HTSCC"), a California nonprofit corporation. RECITALS A. The Housing Trust of Santa Clara County, Inc. Endowment Fund ("Endowment Fund"), an investment pool fund in which private corporations and public agencies participate, has been created by.the HTSCC for the purpose of establishing a revolving loan fund and grant-making program to address the issue of affordable, available housing in Santa Clara County. B. On January 22, 2001 the City 'Council of the City of Palo Alto adopted Budget Amendment Ordinance No. 4677. The Budget Amendment Ordinance provides for the transfer of Five Hundred Thousand Dollars ($500,000) in Residential Housing In-Lieu Funds to the Endowment Fund. C. The City's' Housing Reserve Guidelines require that the funds be used to provide assistance in expanding, preserving, or improving the supply of low and moderate housing in the City as defiJ;led in the City' 5 Comprehensive Plan. D. The City desires to increase, improve, or preserve affordable housing for persons and families of low and moderate income in the City of Palo Alto, by participating in the Endowment Fund as specified in this Agreement. E. The purpose of this Agreement is to set forth the mutual agreement of the City and. the HTSCC regarding the use of the City's Residential Housing In-Lieu Funds through the 1 010427 ,yo 0090828 Endowment Fund. In view of the above, the parties agree as follows: SECTION 1. AUTHORITY AND STATUS OF HTSCC HTSCC :represents and' warrants that the information contained in this Agreement is true and accurate to the best of its knowledge, and that it is a duly organized, validly existing nonprofit corporation in good ,standing under the laws of its place of incorporation; that its signatory to this Agreement is authorized by resolution, bylaws, or constitution of the nonprofit corporation, currently, in .full force and effect,to execute this Agreement on HTSCC's behalf. SECTION 2. DEPOSIT OF CITY'S RESIDENTIAL' HOUSING IN-LIEU FUNDS INTO ENDOWMENT FUND City agrees to deposit the sum of $'500,000 into the Endowment Fund within 30 days after the mutual execution and delivery of this Agreement. SECTION 3. USE OF CITY'S RESIDENTIAL' HOUSING IN- LIEU FUNDS 3.1 HTSCC ag,rees that no fees will be charged to City's Residential Housing In-Lieu Mitigation Funds on deposit in the Endowment Fund for administrative or overhead costs, including but not limited to funciraising expenses. The sole adrninistrati ve expenses which may be charged to City's Residential Housing In-L,ieu Funds on deposit in the Endowment Fund shall be as set forth in Section 6. 3.2 The communi'ty Foundation Silicon Valley shall serve as the Endowment Fund's fiscal agent, and the City's funds shall be paid directl'y to' them. All disbursements of the City's Residential Housing In-Lieu Funds from the Endowment Fund shall be in the form of loans secured by a deed of trust recorded against the property. The HTSCC shall consult, in advance, with the City Manager of Palo Alto, prior to making any loans. The initial disbursement of the funds shall be used only for one or more projects that meet all of the following criteria: 3.2. I The proj ect must provide rental housing or housing for the homeless. A project to provide home ownership assistance is not eligible. 2 010427 syn 0090828 ) 3.2.2 The pr.oj ect must increase, impr.ove or preserve aff.ordable h.ousing, .or h.ousing fer the h.omeless, in the 'Cit~ .of Pale Alt.o. 3.2.3 Such h.ousing must be aff.ordable t.o pers.ons and families .of lower very lew inc.ome h.ouseh.olds as ,th.ose terms are defined by the Department .of H.ousing and Urban Devel.opment as pertains t.o' the San J.ose Metr.op.olitan Statistical Area. 3.2.4 The HTSCC shal.1 use the. City's Residential H.ousing In-Lieu Funds t.o increase, impr.ove or preserve aff.ordable h.ousing fer h.omeless individuals and families and/.or aff.ordable rental h.ousing for pers.ons and families .of lew or very lew inc.ome h.ouseholds, by meth.ods of pr.oviding, financial assistance that include, but are nat limited t.o, the meth.ods set forth in Calif.ornia Health and Safety Cede Section 33334.2 (e), excluding subsecti.ons' (4) and (8). 3.2.5 Any new .or substantia11y rehabilitated, housing that is devel.oped, financed .or assisted, in' wh.ole .or in part, with the City's Residential H.ousing In Lieu Funds shall remain available at affordable h.ousing c.osts t.o pers.ons and families' .of',low .or very lew, inc.ome h.ouseh.olds, as the case may be, for the longest feasible time, but net less than thirty (30) years fer rental units. The HT,SCC ,shall require the recording in the o'ffice of the C.ounty Recorder' .of c.ovenants or restricti.ons implementing this Secti.on 3.2.5 fer each parcel .or unit .of real pr.operty subject t.o this Secti.on 3.2.5, which covenants .or restricti.ons shall run with the land and shall be enforceable against the .original .owner and success.ors in interest, by the City .or the HTSCC. 3.2.6' There shall be n.o discriminati.on against .or segregati.on .of any person, .or gr.oup .of pers.ons, .on account .of race, c.ol.or, religi.on, nati.onal .orJ.g~n, ancestry, gender, marital status, sexual preference, .or handicap status in the sale, lease, sublease, transfer, use, occupancy, tenure .or enj oyment ,.of any such proj ect, .or any part thereof, nor shall any recipient of the City's Residential Housing In-Lieu Funds, .or any person claiming under ,or through such pers.on, establish .or permit any such practice or practices of discrimination .or segregati.on with reference to the selection, location, number use or .occupancy of tenants, lessees, subtenants, sublessees, or vendees of any such project. 3 010427 'yn 0090828 3.2.7 The· restrictions of this Section 3.2 shall apply to the initial use of the City's Residential In-Lieu 'Hoilsing Funds by the HTSCC. 3.2.8 The HTSCC shall refund to the City any portion of the City Residential Housing In-Lieu Funds that have not been disbursed or contractually conunitted to be disbursed in accordance with this Section 3.2 by the date that is thirty-six (36) months after the date of this Agreement. If the City's Residential Housing In-Lieu Funds are disbursed or contractually conuni tted to be disbursed in accordance with this Section 3.2 within such 36-month·period, the HTSCC shall have no obligation to repay any portion of the City's Residential ·Housing In-Lieu Funds to the City. 3.3 All disbursements by the HtSCC shall be made after· consul tation with the City Manager of Palo Alto· and with the advice and suggestion of the HTSCC Board of Directors which includes two members of the Santa Clara County Board of Supervisors. The HTSCC shall follow the recommendations regarding disbursements rendered by the Endowment Fund Steering Conunittee unless to do so would be a violation of law, this Agreement, or the HTSCC's Articles of Incorporation or Bylaws. SECTION 4. INVESTMENT OF THE FUND The HTSCC shall hold, manage, invest and reinvest the Endowment Fund in accordance with the "reasonably prudent person standard. Provided, inyestment ·of the funds contributed by the City under this Agreement shall be limited to money-market funds of the type described in Government Code Section 53601 (k) (2). SECTION 5. FINANCIAL REPORTS· 5.1 The HTSCC sh.all establish and accordance with complete record Endowment Fund. generally accepted accounting of all financial transactions maintain, in: principles, a related to the 5.2 The HTSCC shall provide City with quarterly reports which shall set forth in detail all financial transactions· related to the Endowment Fund. The HTSCC shall also provide City with a copy of its audited report, prepared by independent certified public accountants annually. 4 010427 'yn 0090828 " . ) \ I HTSCC shall provide City with a written report on the initial expenditure of the City's Residential" HouS!ing In Lieu" Funds, including, at a minimum, for each project assisted" with City's Residential Housing In-Lieu Funds, the following information: location and, description of the assisted project (s); number of units; rent and income restrictions; and term of "restrictions. 5.3 The SECTWN 6. ADMINISTRATIVE FEES The HTSCCmay charge "an annual administrative fee equal to one percent (1% l. of the" fair" market value of the Endowment Fund against the Endowment Fund. "The HTSCC may also charge against the Endowment Fund reasonable bank "fees. One-Twelfth (1/12) of the annual" fees will be deducted monthly. The HTSCC shall report the fees charged 'against the ,Endowment Fund in its quarterly and annual reports. SECTION 7. NOTICES Any communication or notice which either party is required to send to the other or which either party desires to send to the other, shall be in writing and shall be 'either personally delivered or mailed in the United States mail, postage prepaid, to the respective parties addressed as follows: City: HTSCC: City Manager City of Palo Alto P.O. Box 10250 Palo Alto, CA 94303 Housing Trust of Santa Clara County, Inc. 111 West St. John ,Street, Suite 710 San Jose, CA 95113 Either party may change its address by sending notice of the new address to the other party pursuant to this Section. SECTION 8. COMPLIANCE WITH ALL LAWS The HTSCC shall comply ordinances, codes and regulations local governments. 5 010427 .yn 0090828 with all applicable laws, of the federal, state and , } SEC.TION 9. MISCELLANEOUS PROVISIONS A. The parties agree that this Agreement shall be governed and construed in accordance with the laws of ,_ the State of Cali fornia. In the event that suit shall be brought -by either party to. this Agreement, the parties agree t)1at venue shall be exclusively vested in the state courts of the County of Santa -(,lara, or where otherwise appropriate, eXClusively in the United States District Court; _ Northern District of California, San Jose, California. B. .The headings of the sections and subsections of this Agreement are inserted for convenience only. They do not consti tute-a part of this agreement and shall not be used in its construction. c. The waiver by any_ party to this Agreement of a any prov~s~on of this Agreement shall not be continuing waiver or a waiver of any subsequent that or any other provision of this Agreement. breach of deemed .a breach of D. Any and all exhibits, which are referred to in this Agreement, . are incorporated herein by reference and are deemed a part of this Agreement. This Agreement may only be amended by formal written agreement executed by both parties. E. If a court of competent jurisdiction adjudges any provision- of this -Agreement as void or unenforceable, the remaining provisions shall not be affected hereby and shall remain in full force and effect; provided that construction of the agreement without. the invalid or unenforceable provision does not deprive the parties of the benefit of their bargain. 11/ II II II II II 6 010427 'yn 0090828 , , ) . Where this agreement refers to City and no Officer of the 'City is named, . the City Manager. shall have the authority to act on the City's behalf. Frank nest City Manager APPROVED AS TO FORM: \V¥W2.'~ S~Asst. City Attorney APPROVED~ Services 010427 syn 0090828 7 HOUSING TRUST OF SANTA CLARA COUNTY, INC. BY:.~~ 'ris Block Executive Director By: .~ 14' Name ~. ~tMl-b Taxpayer Identification No. 77-0545135 (Compliance with Corp. Code § 313 is required if the entity on whose behalf this contract is s,igned is a corporation. In the alternative, a certified corporate resolution attesting to the signatory authority of the individuals signing in their respecti ve capacities is acc.eptable). ) CERTIFICATE OF ACKNOWLEDGMENT STATE OF M4fO/U/i ft COUNTY OF ~1rNrft UMA (Civil Code 1189) ss. \ ) On M~'.1? ,2001, before me, the undersigned, a Notary Public in .and for said County and State, personally appeared ut/USJf) 'P1Jt2R /SW{j' , personally known to me or proved to me on the basis of satisfactory evidence to be· the person <¥} whose name on is/aXe subscribed to the within instrument and acknowledged to me that he/~e/th~y executed the same in his/h)trlt!¥ir authorized capaci ty (ie.e) , and that by his/h~/thfir signature ():J on the instrument the person rf.), or the entity upon behalf of which the person(~ acted, executed the instrument. WITNESS my hand and official seal. si '. 8 010427 syn 0090828 '., , .' , ! ) CALIFORNIA ALL·PURPOSE ACKNOWLEDGMENT State of California } -=(>::..:.A,-,-.'_-rl~---'<.J' "==I~",--A ___ ' ss. County of ..:> ,., I 'I ~ On M W 7, cl/JO/ ,before me, -----'='~~~~;;t,:;~~lfoiot~F=.w.' D8\e . I personally appeared _....t:~:::.Jw.!J.!::£!<./.T __ -=S:J.If,L· ~r:::J)"¥.: .JtkP~~.i~6::';.:;-________ _ .::;;!.~nl!r(s) -, .:. Place Nolsl)' Seal Above ," . o personally known to me iii3 proved to me on the basis of satisfactory (evidence to be the person~ whosename(J'j is/~ subscribed to the Wi~h' 'nstrument and acknowledged to me tha f}(l/!P\ey executed the same in hisfli r/t~ir. authorized capacity(~), and that by his/h~/fh~ slgnature(~ on the instrument the perso~, or the entity upon be.half of which the perso~) acted, executed the instrument. OPTIONAL------------------- Though the information below is not required by law, it may prove valuab/e to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attache~ocu~en /J. • A ••. II,!;, /J. A ()pt il. . "I .. Tille or Type of DrZr:£t: PP;~ ri."'ff i f/@) I([JA -\ 1¥U4ftcg ;a«d Document Date: HtrJ-"':'4~ Number of Pages: ---+r-.---- Signer(s) Other Than Named Above: _____________________ _ Capacity(ies) Claimed by Signer Signer'S Name: I?O fiEld" .s.1ftf1?l1tW o Individual l)!, Corporate Officer -Title(s): b Partner -0 Limited 0 General o Attorney in Fact o Trustee o Guardian or Conservator o Other: _____ ~ _________________ _ RlGtifTHUMBPRINT OF SIGNER Top of thumb here. Signer Is Representing: _____________________ L ____ ..J 'I 'I 1 01999 Naflonal NOlaryAs5oelnIiOll' 00.00 De SOlO Ave., P.O. ao~ 2402' ChIlISWOl1h. CA91313·2402' www.llIIl1onalnolllry.org Prod. No. 5907 R&D/dar. call TolI·Fllm 1·8()O.87&6827 CITY OF PALO ALTO Memorandum TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DATE: DECEMBER 6, 2010 DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT SUBJECT: Second Reading: Approval Of A Mitigated Negative Declaration And Adoption of an Ordinance Amending the Zoning Map To Change The Zoning Designation for 305 Grant Avenue, 2640 and 2650 Birch Street and 306 And 320 Sheridan Avenue from RM-40 Multi Family to The Pedestrian and Transit Oriented Development (PTOD) Combining District. The attached ordinance is provided for second reading by the City Council. The revised ordinance reflects the four amendments adopted by the City Council on November 22, 2010. The changes include the following: • Revising Section 4e to clarify that the project includes 11 tandem spaces. • Addition of the indemnity clause. • Addition of the requirement for disclosure of environmental documents to future tenants and owners and review of the first rental agreement. • Addition of a requirement for a "Keep Clear" sign on Grant Avenue and review by the Planning Director in six months of occupancy. CURTIS WILLIAMS Director Planning and Community Environment Attachment A Revised Ordinance Page 1 of 1 • · ATTACHMENT A ** NOT YET APPROVED ** Ordinance No. ---Ordinance of the Council of the City of Palo Alto Amending the Zoning Map of the City of Palo Alto to Change the Zone Designation for 305 Grant Avenue, 2640 and 2650 Birch Street and 306 and 320 Sheridan Avenue from RM-40 Multi- Family to the Pedestrian and Transit Oriented Development (PTOD) Combining District The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. The City Council finds as follows: (A) The Planning and Transportation Commission ("Commission"), after a duly noticed public hearing on April 15, 2009, has recommended that the City Council of the City of Palo Alto ("Council") rezone the subject site (305 Grant Avenue, 2640 and 2650 Birch Street and 306 and 320 Sheridan Avenue) to the California Avenue Pedestrian and Transit Oriented Development Combining District (PTOD) zone designation. (B) The Planning and Transportation Commission has reviewed the facts presented at the public hearing, including public testimony and reports and recommendations from the director of planning and community environment or other appropriate city staff. (C) The Planning . and Transportation Commission finds that the subject site is within the PTOD boundary. (D) The Planning and Transportation Commission finds that rezoning the parcel to the California Avenue Pedestrian and Transit Oriented Development Combining District (PTOD) zoning is in accord with the Palo Alto Comprehensive Plan, in that the Comprehensive Plan designation of the site is Multiple Family and within the Cal-Ventura Mixed Use Area. (E) The Council held a duly noticed public hearing on the matter on November 22, 2010, and has reviewed the Mitigated Negative Declaration prepared for the project and all other relevant information, including staff reports, and all testimony, written and oral, presented on the matter. SECTION 2. The Council finds that the public interest, health and welfare require an amendment to the Zoning Map of the City of Palo Alto as set forth in Section 3. II II 1 101129 sh 8261473 ** NOT YET APPROVED ** SECTION 3. The Council hereby amends the Zoning Map of the City of Palo Alto to place the subject site (305 Grant Avenue, 2640 and 2650 Birch Street and 306 and 320 Sheridan Avenue) in the California Avenue Pedestrian and Transit Oriented Development Combining District (PTOD) zoning regulations. SECTION 4. The City Council further determines that the rezoning is subject to the following limitations: a. The development shall be a mixed use project comprising of ground floor office uses with residential use on the upper floors; b. Office uses on the ground floor shall comprise approximately 10,257 square feet; c. A minimum of eight (8) residential units shall be provided, totaling approximately 14,534 square feet in area; d. The maximum building height shall not exceed 40 feet; e. A minimum of 42 parking spaces ill]UD~~rLQ1!!1ill!1iL§]~~_sn:all be provided; f. A Transportation Demand Management Program shall be included that requires the provision of transit passes for all occupants/tenants; and These limitations shall be recorded as conditions on the property, to the satisfaction of the City Attorney and Planning Director. Modifications to these conditions may be approved by the Planning Director only to the extent that increases or decreases do not exceed 10% of the allowable outlined in parts (b) and (c) and remain in compliance with all other zoning requirements. SECTION 5. Owner shall ensure that prospective tenants and o\yners are notified of the availability of the en vironnl ental reports prepared in conjunction with developnlent of the subject site by including such notice in all lease agreem.ents. Prior to initial occupancy_ ovvner shall provide the Planning Director with a tel11plate agreement for review and approval of the notice to ensure that adequate disclosure is provided in accordance vvith this condition. SECTION 6. The Planning and Conlnlunity EnvirornnentDepaliJnent shall evaluate the effectiveness and need for a "Keep Clear" stencil and/or sign at the Grant Avenue driveway 110t later than six l11ont11s fbllo\ying occupancy. If detennined by the Director to be necessary. the owner shall install such stencil and/or signage within three Inonths thereafter. A deposit equivalent to double the cost of the work shall be provided to the City prior to tinal building occu anc \yhich aUlount shall be refunded to the the \york to the City's satisfaction or a deternlination that such work is not necessary. In the event the stencil or sign is deelned necessary and work is not perfonned to the City's satisfaction, the City may use the funding, with no refund to the owner. to complete the \york. 2 101129 sh 8261473 ** NOT YET APPROVED ** SECTION 7. To the extent permitted by la\v, the applicant shall indelnnify and hold harmless the City, its City Council, its officers, employees and agents (the '"indelnnified parties) [ron1 against any clain1, action, or proceeding brought by a third party ag:ainst the indclnnified paliies alld the applicant to attack. set aside or void, any pern1it or approval authorized hereby for the Project. including (without limitation) reilnbursing the City its actual attorneys fees and costs incurred in defense of the litigation. The City may, in its sole discretion, clect to defend any such action with attorneys of its o\vn choice. SECTION 8. The Council hereby finds that this rezoning is subject to environmental review under the provisions of the California Environmental Quality Act (CEQA). An environmental assessment and mitigated negative declaration was prepared for the project and it has been determined that all potentially adverse impacts that would result from the rezoning of the property can be mitigated to a level of insignificance; therefore, the project would have no significant impact on the environment. SECTION 96. This ordinance. shall be effective upon the thirty-first (31 st) day after its passage and adoption. INTRODUCED: PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: City Clerk APPROVED AS TO FORM: Sr. Deputy City Attorney 101129 sh 8261473 3 APPROVED: Mayor City Manager Director of Planning and Community Environment ** NOT YET APPROVED ** Resolution No. ----Resolution of the Council of the City. of Palo Alto Amending the Conflict of Interest Code for Designated City Officers and Employees as Required by the Political Reform Act and Regulations of the Fair Political Practices Commission and Repealing Resolution No. 8886 WHEREAS, the Political Refonn Act requires certain City officials, specified in section 87200 of the California Government Code, to file economic disclosure fonns ("Fonn 700") and abstain from making or participating in making governmental decisions which have a reasonably foreseeable material affect on an economic interest; and WHEREAS, the Political Refonn Act also requires the City to adopt a local conflict of interest code that enumerates specific City positions other than those specified in Government Code section 87200 which involve making or participating in making decisions which have a reasonably foreseeable material affect on an economic interest, and to designate for each position the specific types of investments, business positions, interests in real property and sources of income which are reportable based on the scope of the decision.:.making authority of the position; and WHEREAS, consistent with Chapter 2.09 of the Palo Alto Municipal Code and the biennial schedule established by the Fair Political Practices Commission for amending local conflict of interest codes, the City reviews and amends its local conflict of interest code by resolution every two years. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. Resolution No. 8886 is hereby repealed. SECTION 2. The Conflict of Interest Code for the City of Palo Alto is hereby amended to read as follows: 101007 sh 8261447 CONFLICT OF INTEREST CODE FOR THE CITY OF PALO ALTO The Political Refonn Act, Government Code section 81000, et seq., requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation (2 Cal. Code of Regs. section 18730), which contains the tenns of a standard conflict of interest code. After public notice and hearing the regulation may be amended by the Fair Political Practices Commission to confonn to amendments in the Political Refonn Act. Therefore, the tenns of 2 California Code of Regulations Section 18730 1 ** NOT YET APPROVED ** and any amendments to it du1y adopted by the Fair Political Practices Commission are hereby incorporated by reference. This regulation and Appendix A attached to this resolution and a part of it, designating officials and employees and establishing disclosure categories, shall constitute the conflict of interest code of the City of Palo Alto. Designated employees shall file statements of economic interests with the City Clerk who will . make the statements available for public inspection and reproduction. (Gov. Code, § 81008.) Statements for all designated employees will be retained by the City Clerk. SECTION 3. The Conflict of Interest Code for the City of Palo Alto will be effective thirty (30) days from the date the City Council approves this resolution. SECTION 4. The City Council finds that there is no possibility that this resolution will have a significant effect on the environment and upon that basis determines that this resolution is exempt from the California Environmental Quality Act. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Senior Deputy City Attorney City Manager 101007 sh 8261447 2 Titles APPENDIX A DESIGNATED POSITIONS ADMINISTRATIVE SERVICES DEPARTMENT Finance Division Assigned Disclosure Category Assistant Director, Administrative Services ................................................................................... 1 Deputy Director, Administrative Services ...................................................................................... 1 Senior Financial Analyst .................................................................................................................. 4 Manager, Accounting ...................................................................................................................... 1 Senior Accountant ................................................................................................. '" ....................... 4 Staffl\ccOuntant Accountant .......................................................................................................... 4 Manager, Purchasing & Contract Admin ........................................................................................ 1 S eHior Buyer ................................................................................................................................... 4 Warehouse Supervisor ..................................................................................................................... 5 Supervisor, Reproduction & ~<1ail ................................................................................................... 5 Contracts Administrator .................................................................................................................. 3 Senior Business Analyst .................................................................................................................. 4 Manager, Energy Risk ..................................................................................................................... 4 Real Estate Division Manager, Real Property .................................................................................................................. 4 Senior Financial Analyst ................................................................................................................. 4 Financial ,Adlalyst ............................................................................................................................ 3 Budget & Management Analysis Division Budget Manager ............................................................................................................................... 4 Senior Financial Analyst ................................................................................................................. 4 Information/Technology Division Chief Information Officer ................................................................................................................ l Manager, Information Technology Services ................................................................................... .2 Senior Technologist ......................................................................................................................... 9 Executive Assistant .......................................................................................................................... 9 Technologist. .................................................................................................................................... 9 APPOINTED OFFICIALS Architectural Review Board ........................................................................................................... 1 Historic Resources Board ................................................................................................................ l Human Relations Commission ....................................................................................................... 1 Library Advisory Commission ........................................................................................................ l Public Art Commission .................................................................................................................... 1 Utilities Advisory Commission ........................................................................................................ 1 Parks and Recreation Commission .................................................................................................. 1 Appendix A-I CITY CLERK City Clerk ...................................................................................................................................... 1 ParkiBg &amiBerHearing Examiner .............................................................................................. 1 Assistant City Clerk ........................................................................................................................ 3 Deputy City Clerk ............................................................................................................................ 3 CITY MANAGER Assistant City Manager ............... , .............................................. ; ........................ 1 Deputy City Manager .......................................................................................... 1 Assistant to City Manager ................................................................................................................. 1 Manager, Economic Development and Redevelopment.. ................................................................ l Executive Assistant to the City Manager ......................................................................................... 3 Paetia CoHlfl'R:lfl:iaatioB Manager Communications Manager ........................................................ .4 Utilities COHlffll:1:fliaatioB ~4anager ................................................................................................... 4 Administrator, CMO ........................................................................................................................ 1 CITY ATTORNEY Senior Assistant City Attorney , ....................................................................................................... 1 Assistant City Attorney ....................................................................... · ............................................. 1 Senior Deputy City Attorney ........................................................................................................... l Deputy City Attorney ........................................................................................................................ 1 Claims Investigator .......................................................................................................................... 3 Secretary to City Attorney ............................................................................................................... 4 Legal2'\dm.i.i:HstratorLegal Services Administrator ........................................................................ .4 CITY AUDITOR City Auditor ..................................................................................................................................... 1 SeRior AmHtorSenior Performance Auditor ................................................................................... 1 Performance Auditor ....................................................................................................................... 1 COMMUNITY SERVICES Director, Community Services ......................................................................................................... 1 Executive Assistant .......................................................................................................................... 3 SeRior 2YmiBistrator Senior Management Analyst ........................................................................ 5 Cal3berley CeBter & Hl:1:IB:aFl Serviaes DivisioB Gl:1beerley Ceater & Hl:1:IB:an Serviees DiyisioB Manager ................................................................ 1 CoordiBator, Cffild Care ................................................................................................................... 3 Appendix A-2 Arts & Sciences Division Arts & Sciences Division Manager .................................................................................................. 6 Manager, Arts and Science .............................................................................................................. 6 Recreation and Golf Division Recreation and Golf Division Manager ........................................................................................... 6 S:aperv:isor, ]Qflior MaseamCommunity Services Senior Program Manager ................................. 5 Supervisor, Recreation Programs .................................................................................................... 5 Coordinator, Recreation Programs ......................................................................... (. ........................ 5 SUperifltee.aeat, Golf Course Community Services Superintendent ............................................... 5 SUperifltee.aeflt, Parks ..................................................................................................................... 5 Supervisor, Parks Community Service Manager ............................................................................ 5 Open Space, Parks and Golf Division Open Space, Parks and Golf Division Manager .............................................................................. 6 Superintendent, Open Space, Parks and Golf ................................................................................ .5 Supervisor, Open Space and Parks .............................................................................................. ; ... 5 FIRE DEPARTMENT Fire Chief ......................................................................................................................................... 1 Emergency Medical Services (EMS) Chief ..................................................................................... 1 Deputy Fire Chief-EM+ .................................................................. : ............................................... 1 Fire Marshal ..................................................................................................................................... 1 Battalion Chief ................................................................................................................................. 6 Emergency Medical Services (EMS) Coord ................................................................................... 6 Office of Emergency Services (OES) Coordinator .......... , .............................................................. .5 HUMAN RESOURCES DEPARTMENT Director, Human Resources ............................................................................................................. 1 Assistant Director, Human Resources ............................................................................................. 1 Manager, Employee Relations ........................................................................................................ 3 Mmiflistrator, ~an Resourees Senior Human Relations Administrator .................................. .3 Seflior AdmiflistratorSenior Management Analyst ........................................................................ .3 . LmRARYDEPARTMENT Direct{)r, Libraries ............................................................................................................................ 1 Assistant Director, Main Library Services ...................................................................................... .4 Division Head, Library Services ...................................................................................................... 5 Appendix A-3 PLANNING & COMMUNITY ENVIRONMENT DEPARTMENT Planning and Transportation Division Director, Planning & Comm. Environment ..................................................................................... 1 Chief Planning & Transportation Official ....................................................................................... 1 Assistam Direet:or, PlaaniBg & Commanity EiwH=oflfFleat .............................................................. 1 Administrator, Planning & Community Environment.. ................................................................... 1 Maflager, EooBomio D6"/elopmeat .................................................................................................. 1 TransportatioB MaflagerChief Transportation Official ................................................................... .4 Arborist ...................................................................................................................................... 5 Manager, Planning ............................................................................................................................ 4 Senior Planner ..................................................................................................................... : ............ 4 Planner ..........................................................................................................................•........... 4 Associate Planner ............................................................................................................................ 4 Coordinator, Transportation Systems Mgmnt. ......................................... ; ...................................... .4 ·Code Enforcement Officer ................................................................................... '.4 Inspection Services Division Chief Building Official .................................................................................................................... 1 Assistant Building Official .......... , ................................................................................................... 4 Supervisor, Building Inspection ....................................................................................................... 4 Building Inspector Specialist ................................................................................ .4 Building Inspector ............................................................................................. 4 POLICE DEPARTMENT Police Division Police Chief ...................................................................................................................................... 1 Assistant Police Chief ......................................................................................... 1 Police Captain .................................................................................................................................. 1 Police Lieutenant ............................................................................................................................. 1 86Bior AdministratorSenior Management Analyst ........................................................................ .3 Supervisor, Police Services .............................................................................................................. 3 Animal Services Division Superintendent, Animal Services ..................................................................................................... 7 Supervisor, Animal Services ............................................................................................................ 7 Veterinarian ............................ : .......................................................................................................... 7 Communications Division COOrEHBa!or, Polioe Teohnioal 8ervioesDeputy Director Technical Services Division .................. 9 Appendix A-4 PUBLIC WORKS DEPARTMENT Administration Division Director, Public Works/City Engineer ............................................................................................ 1 Assistant Director, Public Works ............................................................................ 1 Semor AdministratorSenior Management Analyst ........................................................................ .3 Management Analyst ...................................................................................................................... 3 Engineering Division Senior Engineer ................................................................................................................................ 4 Supervisor, Inspection & Surveying ................................................................................................. 4 Senior Project Manager .................................................................................................................... 4 Project Manager ............................................................................................................................... 4 Project Engineer ............................................................................................................................... 4 Public Works Administrator ............................................................................................................ 3 Equipment Management Division Fleet Manager ........ ~ ......................................................................................................................... 5 Assistant Fleet Manager ................................................................................................................... 5 Facilities Management Division Manager, Facilities Maintenance & Projects ................................................................................... 5 Project Manager ............................................................................................................................... 5 Supervisor, Facilities ·Management .................................................................................................. 7 Operations Division Manager, Maintenance Operations .................................................................................................. 5 Managing Arborist ........................................................................................................................... 5 Superintendent, Public Works Operations ....................................................................................... 5 Project Manager ............................................................................................................................... 6 Refuse Administrator ....................................................................................................................... 3 Refuse Division Supervisor, Public Works ................................................................................................................ 6 Executive Assistant .......................................................................................................................... 6 Manager, Environmental Control Programs ................................................................................... 6 Manager, Solid Waste ....................................................................................................................... 6 Senior Engineer ................................................................................................................................ 4 Storm and Surface Water Management Division Senior Engineer ................................................................................................................................ 4 Project Engineer ............................................................................................................................... 4 Manager Maintenance Operations ............. : ..................................................................................... 4 Appendix A-5 Water Quality Control Division Manager, Water Quality Control ..................................................................................................... 4 Manager, Laboratory Services ........................................................................................................ 5 Manager, Environmental Compliance ....................... , ..................................................................... 1 Manager, Environmental Control Programs .................................................................................. .4 Assistant Manager, Water Quality Control Operations .................................................................. .3 Supervisor, Water Quality Control Operations ................................................................................ 3 Senior Engineer ............................................................................................................................... 4 UTILITIES DEPARTMENT Director, Utilities ............................................................................................................................. 1 Senior :A4l'HmstratorSenior Management Analyst ......................................................................... 3 Senior Business Analyst .................................................................................................................. 4 Contracts Administrator ................................................................................................................... 3 Customer Support Services Division Assistant Director, Customer Support Services ............................................................................... 1 Manager, field & Cl:1stomer Serv'feeManager, Customer Service and Meter Reading .................. .4 Senior Resource Planner/Credit and Collection ............................................................................... . Manager, Utility Marketing Services ............................................................................................... 4 Manager, Utilities Teleeomml:1l1:ieatiofls ............................................................................... ~ .......... 1 S emor Market 2\H:alySt. .................................................................................................................... 4 Key 2-\eeOl:lflt RepresOfltative Utilities ............................ , ................................................................. 4 COfltraets t'~strator ................................................................................................................... 3 Resource Management Division Assistant Director, Resource Management ...................................................................................... 1 Senior Resource Planner ................................................................................................................. 3 Senior Resource Originator .............................................................................................................. 3 Resource Planner ............................................................................................ , ................................ 3 Engineering Division Assistant Director, Utilities Engineering ........................................................................................ 1 Engineering Manager, Water-Gas-Wastewater ........................................................ , ...................... 4 Engineering Manager, Electric ......................................................................................................... 4 Manager, Utilities Telecommunications .......................................................................................... 1 Project Engineer ............................................................................................................................... 4 Senior Project Engineer ................................................................................................................... 4 Seflior Eleetrie Projeet EflgifleerSenior Electrical Engineer .......................................................... .4 Electric Project Engineer ................................................................................................................. 4 Appendix A-6 Operations Division Assistant Director, Utilities Operations ........................................................................................... 1 Manager, Electric Operations .......................................................................................................... 4 Manager, W-G-W Operations .......................................................................................................... 4 g1:i~erv:isor, gh0j3 &, Piela, W G J}I .................................................................................................. 4 g1:i~ervisor, W G J}I ................................................................................ ~ ........................................ 4 g1:i~erv4sor, Bleetrie gysteHlsUtilities Supervisor .......................................................................... .4 g1:i~erv:isor, Water Transmissiofl ...................................................................................................... 4 Consultants (DefiflifleaDefined in FPPC Regulation 18701(a)(2)) ................... 1-9, As Applicable! Members of Task Forces, Special Committees and Similar Advisory Bodies Created by the City Council. ...................................................................................... 1, if applicable2 1 Pursuant to Palo Alto Municipal Code section 2.09.060, the City Manager may determine in writing that a particular consultant, although a designated position, is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements. Any such written determination shall include a description of the consultant's duties and, based upon the description, a statement of the extent of disclosure requirements, if any. The City Manager may also determine whether a particular contract consultant constitutes a "consultant" as the term is defined in the Political Reform Act and regulations promulgated there under or whether the contract consultant is a registered professional engineer or licensed land surveyor exempted from the conflict of irIterest provisions under Government Code Section 87100.1. The City Manager's determination is a public record and shall be retained for public inspection in the same manner and location as the Conflict of Interest Code. 2 The City Attorney and City Clerk shall coordirIate to determine whether a newly created body provides that committees, boards, or commissions possesses decision makirIg authority pursuant to Fair Political Practices Regulation 18701 and make a recommendation to the Council on whether the body should be subject to the disclosure requirements. Factors to be considered include but are not limited to whether the body will perform a role that compels or prevents a governmental decision, or make substantive recommendations that may be regularly approved without significant modification by another public official or governmental agency over an extended period of time. Appendix A-7 1. FULL DISCLOSURE APPENDIX A DISCLOSURE CATEGORIES What to report? All investments and business positions in business entities, sources of income including gifts, loans and travel payments, and interests in real property. What Form 700 schedules? All Schedules (A through E) 2. ALL INCOME What to report? All investments and business positions in business entities and sources of income including gifts, loans and travel payments. What Form 700 schedules? A, C, D, E 3. CITY-RELATED INCOME What to report? All investments and business positions in business entities and sources . of income including gifts, loans and travel payments if the source is of a type which provides, manufactures, or supplies services, supplies, materials, machinery or equipment of the type utilized by or subject to the review or approval of the City. What Form 700 schedules? A, C, D, E 4. CITY-RELATED INCOME, REAL PROPERTY What to report? All investments and business positions in business entities and sources of income including gifts, loans. and travel payments if the source is of a type which provides, manufactures, or supplies services, supplies, materials, machinery or equipment of the type utilized by or subject to the review or approval of the City and all interests in real property. What Form 700 schedules? All Schedules (A through E) 5. DEPARTMENT-RELATED INCOME What to report? All investments and business positions in business entities and sources of income including gifts, loans and travel payments if the source is of a type if the source is of a type which provides, manufactures or supplies equipment, supplies, material, services or machinery of the type utilized by or subject to the review or approval of the department in which that person is employed. What Form 700 schedules? A, C, D, E( 6. DEPARTMENT -RELATED INCOME, REAL PROPERTY What to report? All investments and business positions in business entities and sources of income including gifts, loans and travel payments if the source is of a type if the source is of a type which provides, manufactures or supplies equipment, supplies, material, services or machinery of the type utilized by or subject to the review or approval of the department in which that person is employed and all interests in real property. What Form 700 schedules? All Schedules (A through E) Appendix A-8 7. DIVISION-RELATED INCOME What to report? All investments and business positions in business entities and sources of income including gifts, loans and travel payments, which provide manufacture or supply supplies, equipment, machinery, services or material of the type utilized by or subject to the review or approval of the division in which that person is employed. What Form 700 schedules? A, C, D, E 8. DIVISION-RELATED INCOME, REAL PROPERTY Wh~t to report? All investments and business positions in business entities and sources of income including gifts, loans and travel payments, which provide manufacture or supply supplies, equipment, machinery, services or material of the type utilized by or subject to the review or approval of the division in which that person is employed and all interests in real property. What Form 700 schedules? All Schedules (A through E) 9. CITY-RELATED COMPUTER HARDWARE & SOFTWARE What to report? All investments in business entities and sources of income including gifts, loans and travel payments, which provide supply, manufacture or service computer hardware or software ofthe type utilized by the City. What Form 700 schedules? A, C, D, E Appendix A-9 BACKGROUND In December 2006, the Santa Clara Valley Transportation Authority (VT A) Board of Directors approved the award of $1,334,000 in Community Design and Transportation (CDT) grant funding for the EI Camino Real IStanford A venue Project for the Intersection and Streetscape Improvements. On April 16, 2007 (CMR:207:07), the City Council accepted the federal transportation grant funds to be paid on a reimbursement basis from the VTA CDT capital grant program This project includes the design and construction of improvements to implement the demonstration phase of the EI Camino Real Master Design Planning Study developed by Caltrans and the City of Palo Alto. The project area includes the intersection of EI Camino Real and Stanford A venue and extends approximately 100 feet beyond the intersection along all four approaches to the intersection. Council approved a contract with Granite Construction DBA Pavex Construction Division for the construction of the El Camino Reali Stanford Avenue Project on November 8,2010 (CMR: 396:10). DISCUSSION The proposed project includes the installation of bulbouts at the intersection corners, realignment of crosswalks with enhanced/textured paving, widened landscape medians with planting and street trees; widened sidewalk with street trees; street furniture; new ornamental sidewalk lights; decorative signal poles and new storm drain outlets. During construction, certain lanes of the intersection may be closed for short periods although for work items with significant traffic impacts, night work may be authorized at additional cost. Neighboring residents, schools and businesses will be informed of construction activities and progress through flyers and website postings. Cross walks will be accessible at all times for safe pedestrian crossing. . Construction Management Services A Construction Management firm will be retained to assist with the construction of the project. The scope of work for the construction management services needed for the EI Camino ReallStanford A venue Streetscape and Intersection Improvements Project is included as Exhibit A of the attached contract with Ghirardelli Associates. These services are needed as current staffing is not sufficient for a project of this magnitude. The construction and project management will be shared by the Public Works Department and the Planning and Community Environment Department. S ummaryo fS r . P o lCltatlOn rocess Proposal DescriptionlNumber Construction Management Services for EI Camino Real/Stanford Avenue Streetscape and Intersection Proposed Length of Project I 1m rovements Project Number of Proposals Mailed 14 Total Days to Respond to Proposal 28 Pre-proposal Meeting Date N one necessary CMR: 430:10 Page 2 of 5 TIMELINE Construction for this project is anticipated to begin in early 2011 and be completed in seven months, dependent on weather conditions, lead times for signal poles and lighting equipment orders and holiday schedules. RESOURCE IMPACT Funding for the Construction Management Services and Design Support Services work is included in the Capital Improvement Program project PL-07002. Funding for the project will be provided through the award of $1,210,000 in federal funds in the (CDT) grant funding and local match funds will be provided by the City's CIP projects PL-98013 (School Commute Safety Improvements) and PL-0401O (Bicycle Boulevards Implementation Project) as approved by Council on February 8,2010. Ongoing maintenance of the project will need to be budgeted in the future since ongoing maintenance of the landscaping, crosswalks and street furniture is not included as part of the project budget. POLICY IMPLICATIONS This project is consistent with existing City policy, including the Comprehensive Plan Transportation Element: 1) Goal T-3 which supports "Facilities, Services and Programs that Encourage and Promote Walking and Bicycling;" and 2) Policy T-14 : "Improve pedestrian and bicycle access to and between local destinations, including public facilities, schools, parks, open space, employment districts, shopping centers, and multi-modal transit stations;" and 3) Policy T-23: "Develop public sidewalks and bicycle facilities in Stanford Research Park and other employment areas." The EI Camino Real/Stanford A venue intersection is identified as a critical intersection on the City's adopted School Commute Corridors network as well as a "High Priority Project" in the Palo' Alto Bicycle Transportation Plan. The proposed project improvements are consistent with the EI Camino Real Master Planning StUdy. This document was drafted in 2003 providing detailed design guidelines for the EI Camino Real corridor through Palo Alto. This project also SUppOltS the ongoing Peninsula EI Camino Real Grand Boulevard Initiative, with the goal of improving the performance, safety and aesthetics of EI Camino Real for all users. This recommendation does not represent any change in existing City policies. CMR: 430:10 Page 40f5 ATTACHMENT A CITY OF PALO ALTO CONTRACT NO. Cl1138116 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND GHIRARDELLI ASSOCIATES, INC. FOR PROFESSIONAL SERVICES CONSTRUCTION MANAGEMENT SERVICES This Agreement is entered into on this 23rd day of November, 2010, by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and GHIRARDELLI ASSOCIATES, INC., a California Corporation, located at 2375 Zanker Road, Suite 235, San Jose, CA 95131, (PH) (408) 435-5503 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to construct intersection street improvements at El Camino and Stanford Avenue, in the' City of Palo Alto ("Project") and desires to engage a consultant to provide Construction Management Services for this Project. ("Services"). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit "A", attached to and made a part of this Agreement. NOW, THEREFORE, in consideration ofthe recitals, covenants, terms, and conditions, this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit "A" in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through August 30,2011, or completion of Construction, whichever occurs first, unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit "B", attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement Professional Services Rev. June 2, 2010 charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to CITY, any and all errors, omissions, or ambiguities in the work product submitted to CITY, provided CITY gives notice to CONSULTANT. If CONSULTANT has prepared plans and specifications or other dt<sign documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of construction of the Project. This obligation shall survive termination ofthe Agreement. . SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of the CITY's stated construction budget, CONSULTANT shall make recommendations to the CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULT ANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of the CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of 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. SECTION 12. SUBCONTRACTING. DOption A: No Subcontractor: CONSULTANT shall not subcontract any portion ofthe work to be performed under this Agreement without the prior written authorization of the city manager or designee. 1SI0ption B: Subcontracts Authorized: Notwithstanding Section 11 above, CITY agrees that subconsultants may be used to complete the Services. The subconsultants authorized by CITY to perform work on this Project are: Inspection Services, Inc. CONSULTANT shall be responsible for directing the work of any sub consultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULTANT shall be fully responsible to CITY for hll acts and omissions of a subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval of the city manager or his designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Randy Bruner, PEl Executive Vice President, as Principal in Charge, to have supervisory responsibility for the 3 Professional Services Rev. June 2, 2010 C:\Documents and Settings\syazdy\Local Settings\Temporary Internet Files\OLK276B\Contract Cll138116 -Ghirardelli Associates Inc.doc performance, progress, and execution ofthe Services and Bill Davis as Project Manager, to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the proj ect 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 Shahla Yazdy, Planning and Community Environment Department, 250 Hamilton Avenue, Palo Alto, CA 94301, Telephone: (650) 617-3151. 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 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization witp.out the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT 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 ofthis Agreement. SECTION 16. INDEMNITY. [gJ [Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architects; landscape architects; registered professional engineers and licensed professional land surveyors.] 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an "Indemnified Party") from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements ("Claims") that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. D [Option B applies to any consultant who does not qualify as a design professional as defined in Civil Code Section 2782.8.] 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and 3 Professional Services Rev. June 2, 2010 C:\Documents and Settings\syazdy\Local Settings\Temporary Internet Files\OLK276B\Contract Cll138116 -Ghirardel1i Associates Inc.doc • 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 of the fiscal year andfunds for this Agreement are no longer available. This section shall take precedence in the event ofa 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 instrument, 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 ofthe 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 duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part ofthis Agreement. 25.8 If, pursuant to this contract with CONSULTANT, City shares with CONS UL T ANT personal information as defined in California Civil Code section 1798.81.5( d) about 8 Professional Services Rev. June 2, 2010 C:\Documents and Settings\syazdy\Loca\ Settings\Temporary Internet Files\OLK276B\Contract Cll138116 -Ghirardelli Associates Inc.doc QlY (F PAID ALlO City Manager (Required on contracts over $85,000) Purchasing Manager (Required on contracts over $25,000) Contracts Administrator (Required on contracts under $25,000) APPROVED AS TO FORM: Senior Asst. City Attorney (Required on Contracts over $25,000) Attachments: EXHIBIT "A": SCOPE OF WORK GllWDlll ~SmAJ]S, IN: BYCl:~ Name: 7l-;,ntJ01n.<.-'8;t.cI1..,f{.,~ Title: fio<fi;&~· V;f· EXHIBIT "B": EXHIBIT "C": SCHEDULE OF PERFORMANCE COMPENSATION EXHIBIT "C-I": EXHIBIT "D": SCHEDULE OF RATES INSURANCE REQUIREMENTS 18 Professional Services Rev June 2, 2010 / C:\Users\Mark\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\G804W9L4\Contract Cll138116 -Ghirardelli Associates Inc. doc EXHIBIT" A" 1. SCOPE OF SERVICES General Requirements The Construction Management fum (CONSULTANT) shall provide a construction professional or professionals to represent the City at the construction site full time. This on-site representative(s) of the CONSULTANT shall be approved by the City as having appropriate work experience for the position. If at any time the City is not satisfied with the performance of CONSULTANT staff, the City reserves the right to request the services of a different individual. If for any reason the CONSULTANT proposes a change of staffing during the course of the project, the City reserves the right to approve any new staff. Office space, phone and fax machine for CONSULTANT's staff shall be provided by the CITY. CONSULTANT shall provide their own computer, the cost for which shall be included in the fee. Knowledge of civil engineering roadway or related construction, traffic control, public outreach, Caltrans standard and specification, public works contracting principles and regulations, and Critical Path Management (CPM) will be required of the CONSULTANT Phase I -Construction Phase Construction Management General: CONSULTANT shall be the point of contact for the project's contractor (Contractor). CONSULTANT shall work with the Designer and City to resolve any issues that may arise during construction. Daily Construction Management: CONSULTANT will oversee the day-to-day construction work performed by the Contractor and subcontractors. CONSULTANT will track the construction process, logistics, and activities and direct precautionary measures to ensure that all aspects of construction are followed and documented per contract documents. CONSULTANT will also work with the Contractor to implement logistical measures to :minimize any impacts to the City operations and the nearby residential neighborhood and businesses. CONSULTANT will ensure that coordination is maintained between all parties that must be made aware of daily construction activities and that good communication is maintained. CONSULTANT will implement expeditious methods for resolving conflicts. Night time and weekend work are required periodically to :minimize impacts or due to delay in schedule, therefore CONSULTANT services will still be required in full affect. CONSULTANT shall allocate one hundred (100) hours of night time and weekend work for the life of the project. Any additional hour beyond the one hundred hours shall be compensated as an Additional Service. Urness otherwise directed by City, the CONSULTANT shall budget for and be prepared to work on all State and Federal holidays except for the fourth Thursday of November (Thanksgiving Day); December 24 and 25, January 1 st, Memorial Day, July 4thm and Labor Day. If work is needed on any of these days in the years 2010 and/or 2011 in order to meet the project schedule, CONSULTANT shall be compensated for overtime as an Additional Service. A City engineer will be available to assist the CONSULTANT as- needed for approximately 2-3 hours per day. Documentation: CONSULTANT will prepare and/or review all necessary documentation for the Professional Services Rev June 2, 2010 19 C:\Documents and Settings\syazdy\LocaI Settings\Temporary Internet FiIes\OLK276B\Contract Cll138116 -Ghirardelli Associates Inc.doc -J I The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and completed to the reasonable satisfaction of the CITY, as described in Exhibit A, Scope of Services, a fixed, not-to-exceed price for professional services of One Hundred Fifty Thousand Dollars ($150,000.00). Compensation will be paid for services provided detailed below: Phase I -Construction & Close-Out Phase Construction Management Phase II -Post Construction -Close Out Reimbursables: Subtotal: Additional Services (10% of Subtotal): Total Contract: $104,500 $14,000 $26,500 $135,000 $15,000 $150,000 CONSULT ANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Reimbursables Reimbursables shall include, but are not limited to, the cost of copying plans, outreach materials, postage, signage or other items not included herein. Travel, computer and phone charges shall be considered as included in the CONSULTANT overhead costs. Any needed office spaces or related supplies shall be provided by CONSULTANT and shall be considered to be included in the Scope of Services above. EXHIBIT "C-l" . SCHEDULE OF RATES 24 Professional Services Rev June 2, 2010 C:\Documents and Settings\syazdy\Local Settings\Temporary Internet Files\OLK276B\Contract Cll138116 -Ghirardelli Associates Inc.doc EXIIHlT "D' I l'SlRANE Hi.QIHrr\INIS 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 WrIHAM BEST'S KEY RATING OF A-:VII, OR mGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY'S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: MINIMUM LIMITS REQUIRED TYPE OF COVERAGE REQUIREMENT EACH YES YES YES YES NO YES OCCURRENCE AGGREGATE WORKER'S COMPENSATION STATUTORY EMPLOYER'S LIABILITY STATUTORY BODILY INJURY $1,000,000 $1,000,000 GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE $1,000,000 $1,OOO,qoo PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY DAMAGE $1,000,000 $1,000,000 LIABILITY COMBINED. BODILY INJURY $1,000,000 $1,000,000 -EACH PERSON $1,000,000 $1,000,000 . EACH OCCURRENCE $1,000,000 $1,000,000 AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED PROPERTY DAMAGE $1,000,000 $1,000,000 BODILY INJURY AND PROPERTY $1,000,000 $1,000,000 DAMAGE, COMBINED PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALLOBTAINANDMAINTAIN,INFULLFORCEANDEFFECTTHROUGHOUTTHEENTIRETERMOFANYRESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULT ANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. 1. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL INSUREDS" 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 26 Professional Services Rev June 2,2010 C:\Users\Mark\AppData\Loca!\Microsoft\Windows\Temporary Internet Files\Content.Outlook\G804W9L4\Contract Cll138116 -Ghirardelli Associates Inc. doc I j j ! l ! P.OlicY'f\Jumber: 57UECAE1074 AOOITIONJ\LIt9.$1.J RJSD~ND RIGHTS OF REOO\,l.ERY AGAINST OTHERS This e/1QQrse.me,ntmodifiesinsurahde p()vided.under·th~.·.fonowlng: BUSINESS AUTO OQ'lERAOEJ=QIlM .. . l ... ···.·.··.~' .. ··:.· A. Anyp~rson QrQrganiz~tiohWhQ 'YQU/:\r$ required byoonttaot'lonama aaactdniqoal tn~u.(~cf I~an 'i!gs4r!3(i" \'()rL,.J\$I~)JVGQ. ..' E but only 1Q 1h$~xienl th~tiP~,~ . . I3,tl()l1qya\ifI9~a& I:lO ·in~i,l(~~:··vridert6eWHOls·ANINSUREDprQ\li$iooof$ec .. UOn ll'-l.l.Al3. . B:Agc:, '8\ For any . per$phO(9rganl~f;\li~!l'19r 'fIhom·yoRare,reqyir~cil:>.YcOQUa9ito\PrO:Yle~~cwalVet bfsUbr •.. '0. the Loss. GondlliOii>-TRANSFER()F' RIGHTS OF' RECOVEAYAGAINST OTHERS TO is applioable.· .. ." . ..... ...., ... ' .. Form HA991301.87Printe.d'ln U.$.A. I I I ATTACHMENT B AMENDMENT NO. 1 TO CONTRACT NO. C09129591 BETWEEN THE CITY OF PALO ALTO AND MARK THOMAS, INC. This Amendment No. 1 to Contract No. C09129591 ("Contractll ) is entered into November 23,2010, by and between the CITY OF PALO ALTO, a charter city and a municipal corporation of the State of California ("CITY"), and Mark Thomas and Company, Inc., a California Corporation, located at 618 Walnut Street, Suite 204, San Carlos, CA 94070 (PH) 650-363-8277 "CONTRACTOR"). R E CIT A L S: WHEREAS, the Contract was entered into between the parties for the provision of Design Servicesj and WHEREAS, the parties wish to amend the Contractj NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1. . Section I, Scope of Services i is hereby amended to read as follows: "CONSULTANT shall perform the Services described in Exhibit "A" and in Exhibit "A-I" in accordance with the terms and condi tions contained in this Agreement.' The performance of all services shall be, to the reasonable satisfaction of CITY." SECTION 2. Section 2. TERM; is hereby amended to read as follows: "The Term of this Agreement shall be from the date of its execution through completion of Construction, estimated to be through August, 2011." SECTION 3. Section 4. NOT TO EXCEED COMPENSATIONi is hereby amended to read as follows: "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 Two Hundred Fifty Eight Thousand Six Hundred Dollars ($258,600.00). In the event Additional Services are authorized, the total compensation for these additional services and reimbursable expenses shall not exceed Thirty Four Thousand Nine Hundred Dollars ($34,900.00). The applicable rates and schedule of payment are set out in Exhibit "C", entitled "COMPENSATION, /I which is attached to and made a part of this Agreement. 1 101109 sm 010 j EXHIBIT "C" COMPENSATION The CITY agrees to compensate the CONSULT ANT for professional services performed in accordance with the terms and conditions of this Agreement~ and as set forth in the budget schedule below. Compensation shall be paid based on the not to exceed budget amount for each task set forth below. The compensation to be paid to CONSULT ANT under this Agreement for all services described in Exhibit "A" and in Exhibit "A-I" ("Basic Services") and reimbursable expenses shall not exceed $258~600.00. CONSULTANT agrees to complete all Basic Services~ including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation for the Additional Services shall not exceed $34,900.00. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. REIMBURSABLE EXPENSES The administrative, overhead~ secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto's policy for reimbursement oftravel and meal expenses for City of Palo Alto employees. B. Long distance telephone cellular phone, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $250.00 shall be approved in advance by the CITY's project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY's project manager's request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT's proposed maximum compensation, including reimbursable expense, for such services. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY's Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. SCHEDULE OF COSTS PER TASK (Tasks A-I through A-14) 5 101109 sm 010 SCHEDULE OF COSTS PER TASK FOR CONSTRUCTION SUPPORT: j Construction Support Budget by Firm: MTCo Construction Staking $23,100.00 Task 1 $1,530 Task 2 $2,963 Task 3 $3,724 Task 4 $7,448 TaskS $3,724 Task 6 $3,724 MTCo Civil construction support $27,700.00 Task A-I $2,816 TaskA-2 $9,324 TaskA-3 $2,048 TaskA-4 $2,048 TaskA-5 $3,528 TaskA-6 $6,216 TaskA-7 $1,728 Callander Landscaping Support $10,600.00 Task 4 $10,600 Fehr & Peers Electrical Support $ 7,000.00 Contingency (15% of Subtotal) $10,300.00 Total Construction Support: $78,700.00 7 101109 sm 010 EXHIBIT "A" Scope of Work for Construction Staking of the EI Camino Real/Stanford Avenue City of Palo Alto CONSTRUCTION STAKING TASK SUMMARY: Mark Thomas & Company, Inc. (MTCo) will provide one set of stakes for the following Tasks 3-6. Additional staking (i.e. staking beyond that described herein, or restaking due to lost or destroyed stakes) will be perfonned as approved by the Resident Engineer and compensated as extra work. Construction staking services will be perfonned in accordance with the work as outlined in Chapter 12 of the Caltrans Surveys Manual; Construction Surveys dated September, 2006, and will consist of construction survey services, including field surveys and the necessary office support to coordinate staking requirements with the Resident Engineer. Task 1 -Project Management ($1,530) MTCo will perfonll project management for the survey tasks. MTC6 will attend the Pre- Construction Kickoff Meeting and a total of three (3) site visits and/or weekly project meetings with the city and/or construction management consultant to coordinate the staking. Task 2 -Control Verification (1 crew mobilization) ($2,963) Using conventional survey total station instruments, differential levels and global positioning system total stations, MTCo will check and verifY project control points, and establish additional control points necessary for the survey layout for construction. Task 3 -Clearing Limits for Rough Grade and Demo (1 crew mobilization) ($3,724) Provide "paint spots" for points along the proposed face of curb at each quadrant and median. The paint spots will be used by the contractor to establish the "sawcut" lines. MTCo will mark the beginning and end of the Cold Plan limits. Task 4 -Finish Grade Stakes (2 crew mobilizations) ($7,448) Provide offset stakes for Finish Grade at 50 foot intervals along tangents, 25 foot intervals along curves, including all EC's, BC's, CR's, Angle Points and grade breaks for curb, gutter & sidewalk and median. Stakes will he set at the back of sidewalk to be used for masonry seats. One stake will be set at center line of each pedestrian ramp and driveway approach. Page 1 6/4/10 Page 2 614110 Task 5 -Drain Systems (1 crew mobilizations) ($3,724) Provide offset stakes for drain systems 1 & 2. Two offset stakes will be provided for drain inlets and catch basins. Task 6 -Utility (Sewer, Water, Gas, Electrical) (1 crew mobilizations) ($3,724) Provide stakes for: 7 street lights. Traffic lights will be staked by contractor from curb stakes. These elements will be staked with 2 straddlers showing cut/fill to top of curb or to finish grade if not controlled by adjacent facilities or adjacent construction staking. Off-set stakes will be provided for relocation of sewer, water and gas lines and will be stake at the same time. Total fee .............. ...... ... ....... ... ................... .... .... ........ ..... ... .......... $23,113 This proposal excludes the following tasks: Staking Erosion ControL Staking Temporary Railing (Type K). Staking Electrical equipment, Vaults, Conduit and Signals except as noted in Task 6. Staking Construction Area signs. As Built S\lrveys to verify quantities. Assumptions and Contractor Responsibilities: 1. Requested Crew Mobilizations in excess of that listed for each task shall be pre-authorized by the Resident Engineer and billed as extra work above the contracted amount. 2. Coordinate construction operations so that areas to receive stakes are relatively clear of construction equipment activity, in order that stakes can be set in safe and expeditious manner. 3. After a survey request is received and the survey field crews are mobilized to an area that is not ready for stakes, the Resident Engineer will be charged a minimum of 4 hours of field crew time as an extra above the contracted amount. 4. Discuss scheduling of staking needs by providing a 3 week look-ahead schedule of operations and time estimates and discuss staking needs/operations with MTCo Surveys. 5. Requests for construction stakes to be a minimum of 48 hours in advance of starting an operation that will use the stakes. Friday to Monday does not constitute 48 hours notice. In the event that a staking operation is estimated to take more than one day to complete, add 24 hours to the minimum 48 hours advance notice for each estimated additional day. 6. Submit requests for construction stakes ensuring that the requested staking area is ready for stakes and that the stakes will beginto be used within 5 days of staking. 7. Establish priorities for requested construction stakes and note the priorities on the staking request if none is given the staking will take place in the order received. 8. Preserve all construction stakes. 9. Set all "flat-work" stakes (i.e. "bluetops"). Via Email Only May 11,2010 ADDITIONAL SERVICES AUTHORIZATION #3/construction administration services TO: Mr. Brad Leveen, Senior Project Manager Mark Thomas & Company, Inc. 618 Wa1nut Street, Suite 204 Phone: San Carlos, CA 94070 Fax: (650) 363-8277 (650) 363-8279 RE: PALO ALTO EL CAMINO REAL AT STANFORD AVE Iconstruction administration As a follow-up to your email correspondence on May 6th requesting a cost proposal for providing construction support to the City of Palo Alto, we have prepared the following proposaL These additional services would be provided in accordance with our agreement dated May 5, 2009 and are considered an amendment thereto: Palo Alto El Camino Real at Stanford A venue is set to begin construction in the coming months. To assist the City during contractor activities, we are proposing the following construction administration services for your review. Scope 4.0 CONSTRUCTION ADMINISTRATION 4.01 Pre-Construction Phase a. Attend a pre-bid site walk. b. Respond to requests for information and prepare a single addendum if necessary. 4.02 Construction Phase a. Attend the pre-construction meeting. b. Attend up to (2) meetings as requested by the City. c. Perform up to (3) site visits or reviews as required by the specifications during construction activities followed up by written field reports. d. Provide clarifications of the contract documents in response to request by the Contractor. e. Review submittals and respond to contractor rfi's. Additional Services Authorization #3 RE: PALO ALTO EL CAMINO REAL AT STANFORD A VENUEI construction administration services May 11,2010 Page 2 f. Attend substantial completion walk-through and provide "punch list" items. 4.03 Post-Construction a. Attend a final inspection with City staff. b. Review record drawings and incorporate addenda, change orders, field notes, etc. into a single as-built set of drawings. Provide one set of mylar reproducibles and electronic files. Compensation 4.0 Bidding & Construction Admin.{ hourly, not to exceed) Reimbursables $9,942 Totals $10,637 Total (ASA #3) ........................................................................................................ $10,637 Schedule Callander Associates will proceed to complete the above services concurrently with completion of our other services after receipt of signed copy. Signatures Landscape Architect J?,~A~ ~~'" 05/11/10 Brian Fletcher, ASLA, Principal Callander Associates Landscape Architecture, Inc. 09027 ASA-CMBF.doc © copyrighted 2010 Callander Associates Landscape Architecture, Inc. date Agreed and authorized to proceed on behalf of Mark Thomas & Company Inc.: (signature of Iluthorized representative) (date) (printed name) ! I I i ~ j , I j I _1 . ! I I l I I i NOT YET APPROVED SECTION 2. The City Manager and/or hislher designee is hereby authorized and directed to execute the same for and on behalf of the City of Palo Alto, and the City Clerk is authorized and directed to attest his signature. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Sr. Deputy City Attorney City Manager Director of Planning & Comm. Environment 101I0l dm 8261480 DMAPA Effective July 1,2007 Amendment No.1, September 2010 EXHIBIT "A" DELEGATION OF MAINTENANCE The specific maintenance function indicated below and on EXHIBIT B is hereby delegated to the CITY. This delegation of maintenance function set forth herein does not include the control and maintenance areas and functions which rest with the CITY under the terms of executed Freeway Agreements and/or Freeway Maintenance Agreements. Route No. 35 82 Length . Miles 1.44 4.02 Description of Routing Program Delegated Skyline Boulevard, from the south city None limits at Engineer's Station 163+70 to city limits at Engineer's Station 161 +00, a length of 0.05 mile for this portion; also from Engineer's Station 158+70 to Engineer's Station 156+40, a length of 0.05 mile for this portion; also, from city limits at Engineer's Station 143+80 to city limits at Engineer's Station 138+30, a length of 0.1 0 mile for this portion; also, from city limits at Engineer's station 135+60 to city limits at Engineer's Station 115+00, a length of 0.39 mile for this portion; also, from city limits at Engineer's Station 110+22 to city limits at Engineer's Station 94+00, a length of 0.31 mile for this portion; also, from city limits at Engineer's Station 88+60 to north city limits at Engineer's Station 60+00, a total length of 1.44 miles. El Camino Real, from southeast city limits at Adobe Creek to northwest city limits at San Francisquito Creek; a length of 4.02 miles Footnotes 1,2,3,4,5,6, 7, 8, 9* Total Expenditure Route 82 HM2C HM2D HM2E HM4K * Added by Amendment No.1 Page 5 of 12 Maximum Annual Authorized Expenditme $ 0.00 $ 0.00 $ 34,000.00 $ 0.00 $ 3,500.00 $ 37,500.00 The City originally contracted with CLM to provide security patrols to prevent illegal dumping and to check for fires at the refuse area. CLM's services were later expanded to help monitor and potentially prevent dumping and fires in the Baylands Preserve and to provide weekend patrols of Mitchell and Rinconada Parks. In combination with the City's park rangers, CLM has been highly effective in reducing the problems of overuse and inappropriate behavior in the urban parks. DISCUSSION The attached contract is for park ranger services for the Community Services Department in the urban parks and downtown park restrooms in the amount of $20,339; and in the Public Works Department for the Refuse Area, Byxbee Park and the Baylands Nature Preserve in the amount of $89,714. Because of the unique range of services required by this contract for a combination of security patrol, janitorial service and first aid response, the City has in the past been able to identify only one contractor qualified to perform these services. In 2007 Staff conducted a solicitation process seeking proposals from a variety of security, janitorial, and maintenance firms for the provision of the services provided under this contract. The Request for Proposal was distributed to twenty potential bidders and was advertised for a 30-day period. The only proposal that was submitted came from CLM. With the term ending for the previous contract, staff looked to see if the market place had changed to where there is a company that could also provide a proposal for these services other than CLM. Seeking to find additional proposers who may want to propose on this contract, staff reached out to the City of Mountain View, which also contracts with CLM to provide Ranger service for several of their parks. The City of Mountain View advised that when they under took the same type of review that City Staffwas contemplating, they determined that only CLM was available to provide these services. Accordingly, the City of Mountain View entered into a five-year contract with CLM. RESOURCE IMPACT Funds for the proposed contract for ranger services in the urban parks are included in the adopted Community Services Department Fiscal Year 20 11 Operating Budget. Funds for the portion of the contract for services in the Refuse Area, Byxbee Park and the Baylands Nature Preserve have been included in the adopted Public Works Department Refuse Fund Fiscal Year 2011 Operating Budget. Cost-of-living increases negotiated for the second through fifth years of the contracts will be recommended in the budget process for Fiscal years 2012-2016. POLICY IMPLICATIONS The recommendations in this report are consistent with current City policies. ENVIRONMENTAL ASSESSMENT These contracts are not projects as defined by the California Environmental Quality Act (CEQA), and are not subject to CEQA requirements. CMR: 408:10 Page 2 of3 ATTACHMENT Attachment A: Contract -California Land Management Prepared By:-72-f-L,.c......~~~· ~~~t:--~A)u~A~N~D~~-=S~ON-=--~G!!o:-£-.~-=--. )+-- Department Head ReView: ____ :_~~n .... ~:::...p--:a,4:e--:,#~t:..~-k..£s,'--an-d-G-O-lf-D-i_V_iS_io_n_M_an_a_ger Director, Community Services Department CITY MANAGER APPROVAL: '-IJ,..t...W./lJ.;/J ~JAMESKEENE - City Manager CMR: 408: 10 Page 3 of 3 CITY OF PALO ALTO CONTRACT NO. C11137580 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND CALIFORNIA LAND MANAGEMENT FOR PROFESSIONAL SERVICES RANGER PATROL AND PARK MAINTENANCE SERVICES This Agreement is entered into on this 1 st day ofNov~ber, 2010, ("Agreement'') by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and CALIFORNIA LAND MANAGEMENT, a California Corporation, located at 675 Gilman Street, Palo Alto, CA 94301-2528 (PH) 650-322-1181 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to patrol and maintain its Urban Parks, Refuse Area, Baylands Nature Preserve, Byxbee and Downtown Parks ("Project") and desires to engage a consultant to provide both Ranger Patrol Services and Park Maintenance SerVices, in connection with the Project ("Services"). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit "A", attached to and made a part of this Agreet1lent. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, this Agreement, the parties agree: '.:. AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perforin the Services described in Exhibit "A" in accordance with the terms and conditions contained in this Agreement. The . performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through October 31, 2015, unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this 1 C:\Documents and Settings\cmagana\Desktop\Contract C11137580 final docwnent 112310.doc Professional Services Rev. June 2, 2010 Agreement and in accordance with the schedule set forth in Exhibit "B", attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY's agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit "A", including both payment for professional services and reimbursable expenses, shall not exceed one hundred ten thousand fifty three dollars ($110,053.00) for Year 1. The applicable rates and schedule of payment are set out in Exhibit "C-l", and Exhibit "C-2", entitled "Schedule of Rates" which are attached to and made a part of this Agreement. Compensation for Years 2 through 5 shall be negotiated on an annual basis between CONSULTANT and CITY. The rates of payment shall be adjusted annually on the first day of November (in 2011, 2012,2013 and 2014). These rates adjustments shall be based solely on a negotiated and mutually agreed to cost.ofliving increase based on the regional Consumer Price Index. Increases must be agreed to in writing by June 30 of each year-prior to the November 1 effective date for the new contract year. Additional Services, if any, shall be authorized in accordance with-and.suhJectiO-thaprmrisiollS-o.L-f _____ -, Exhibit"C". CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described in Exhibit "A". SECTIONS. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT's billing rates (set forth in Exhibit "C-l "). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT's payment requests shall be subject to verification by CITY .. CONSULTANT shall send all invoices to the CITY's project manager at the address specified in Section 13 below. The CITY will generally process and pay invoices within thirty (30) days of receipt. 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. CONSULTANT represents that it, its employees and subconsultants, if permitted, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the services to be furnished by CONSULTANT under this agreement shall meet the 2 C:\Documents and SettingS\cmagana\Desktop\Contract Cl 1 137580 finaJ document 112310.doc Professional Services Rev. June 2, 2010 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 of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to CITY, any and all errors, omissions, or ambiguities in the Services rendered to CITY, provided CITY gives appropriate notice to CONSULTANT. If CONSULTANT has prepared plans and specifications or other design documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of the Project. This obligation shall survive termination of the Agreement. . SECTION 9. COST ESTIMATES. Not Applicable SECTION 10. INDEPENDENT CONTRACTOR. It is understood-and agreed that in performing the Services under this Agreement CONSULTANT, 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 11. 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. SECTION 12. SUBCONTRACTING. CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager or designee. 3 C:\Documents and Settings\cmagana\Desktop\Contract C11137580 final document 112310.doc Professional Services Rev. June 2, 2010 SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Eric Mart, President, as the project director to have supervisory responsibility for the performance, progress, and execution of the Services and Mike Escobar, Operations manager, as the project coordinator to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the Account Executive, Project Manager/Support Services Manager, or any other key personnel for any reason, the appointment of a substitute Account Executive 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 Daren Anderson, Community Services Department, Open Space, Parks and Golf Division, 1305 Middlefield Road, Palo Alto, CA 94303, Telephone: 650-496.6950. 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 CITY project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. N either CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT 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 permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an "Indemnified Party") from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements ("Claims") resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers; employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to Professional Services 4 Rev June 2, 2010 C:\Documents and Settings\cmagana\Desktop\Contract Cll137580 fmal document 112310.doc require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. . 16.3. The acceptance of CONSULTANT's services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive . the expiration or early termination of this Agreement. SECTION 17 • WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision 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 sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement nami:ng CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best's Key Rating Guide ratings of A-: VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY's Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification, CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY's Purchasing Manager during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be 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 of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately Professional Services 5 Rev June 2, 2010 C:\Documents and Settings\cmagana\Desktop\Contract C11137580 final document 11231 O.doc discontinue its perfonnance of the Services. 19 .2. CONSULTANT may tenninate this Agreement or suspend its perfonnance of the Services by giving Sixty (60) days prior written notice thereof to CITY ~ but only in the event of a substantial failure ofperfonnance by CITY. 19.3. Upon such suspension or tennination, CONSULTANT shall deliver to the City Manager immediately any' and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection With this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or tennination by CITY, CONSUL TANTwill be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or tennination; provided, however, if this Agreement is suspended or tenninated on account of a default by CONSUL TANT~ CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT's services which are of direct and immediate benefit to CITY as such detennination may be made by the City Manager acting in the reasonable exercise ofhislher discretion. The following Sections will survive any expiration or tennination of this Agreement: 14, 15, 16, 19.4, 20~ and 25. 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. 19.6. If the City Council does not budget funds to cover the next segment by July 1 of any year, this Contract shall automatically terminate with sixty-days (60) notice to Contractor. '. 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, address same as above for City Clerk To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT ~ovenants that it presently has no interest, and will not acquire any interest, direct or indirect, fmailcial or otherwise~ which would Professional Services 6 Rev June 2, 2010 C:\Docwnents and Settings\cmagana\Desktop\Contract CI1137580 final docwnent 112310.doc conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance ofthis 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 officer 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 of California. 21.3. Ifthe Project Manager determines that CONSULTANT is a "Consultant" as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 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 Division, Administrative Services Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements ofthe CITY's Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or compo sting 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, 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 3 0% or greater post-consumer material 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. . C:\Documents and Settings\cmagana\Desktop\Contract C11137580 final document 1 12310.doc Professional Services 7 Rev June 2, 2010 SECTION 24. NON-APPROPRIATION 24.1. This Agreement is subject to the fiscal provisions of the Charter ofthe CITY of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section 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 exp~nded 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 instrument, which is signed by the parties. 25.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 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 duly 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 defined in California Civil Code section 1798.81.5(d) about a California resident ("Personal Information"), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform CITY immediately upon learning that there has been a breach in the security of the system orin the security of the Personal Information. CONSULTANT shall not use Personal Information for direct C;\Documents and Settings\cmagana\Desktop\Contract Cll137580 final document 112310.doc Professional Services B Rev June 2, 2010 marketing purposes without CITY's express written consent. 25.9 All unchecked boxes do not apply to this agreement. 25.10 The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date fIrst above written. CITY OF PALO ALTO CALIFORNIA LAND MANAGEMENT City Manager By:£b APPROVED AS TO FORM: Name: f:/4(.. J.MII-~ Title: ::a..-I~" Senior Asst. City Attorney Attachments: EXHIBIT "A": EXHIBIT "B": EXHIBIT "B-1": EXHIBIT "B-2": EXHIBIT "C": EXHIBIT "C-1": EXIDBIT "C-2": EXHIBIT "D": Attachment 1: SCOPE OF SERVICES SCHEDULE OF PERFORMANCE URBAN PARKS HOURS BAYLANDS PARKS HOURS COMPENSATION SCHEDULE OF RATES Baylands Compensation INSURANCE REQUIREMENTS Job Description -Ranger C:\Documents and Settings\cmagana\Desktop\Contract Cll137580 final docwnent 112310.doc Professional Services 9 Rev June 2, 2010 I. Purpose EXHIBIT A SCOPE OF WORK The City of Pal 0 Alto is contracting ranger services forpatrol and maintenance of parks, open space areas and of the landfill. The· area to be covered is approximately 2,000 acres and covers diverse facilities such as the refuse area, the former yacht harbor, Byxbee Park Hills, Baylands Preserve, MitchelrPark, Rinconada Park and Jordan Middle School. Il Special Provisions . ./ The Contract Rangers shall serve in a supportive capacity to Palo Alto Open Space Rangers for patrol and maintenance at the Palo Alto Baylands area and other areas as assigned. The Contractor's Contract Coordinator shall represent and provide overall supervision of the progress and execution of Contractor's obligations as specified under this Contract and shall work with the CITY's Contract Coordinator to ensure the successful implementation of this Contract. The Contractor's Contract Coordinator shall offer general management advice, and be present at both public and staffmeetings as requested. III. Scope of Work 1. Specifications for Park Ranger Services The contract rangers are required to handle a wide variety of situations in a timely and professional manner. Examples of the duties include enforcement of park regulations and park related City ordinances; visible uniformed patrol; maintenance; first-responder first aid; and security at the refuse disposal area. Maintenance activities include trash pickup; weed control; and other park-related maintenance. 1. Job Sites The area to be covered is approximately 2;000 acres and covers diverse facilities such as the Refuse Disposal Area, the former yacht harbor, Byxbee Park Hills, and Baylands Preserve. 2. Field Services to be Provided During the hours of service being provided as specified above, the specific tasks performed by the contractor shall include the following: A) Patrol: Contractor shall provide daily patrol surveillance of the Baylands Area using both vehicle and pedestrian methods. Coverage of specific areas within Baylands area shall be adjusted as use and problems dictate. Rangers shall keep daily logs documenting this activity. C:\Docwnents and Settings\cmagana\Desktop\Contract Cll137580 final document 112310.doc Professional Services 1 0 Rev June 2. 2010 B) C) Service to the Refuse Area: Contractor will report to the refuse disposal area in time to close and lock the front gate at closing time. (4:45 PM daily). Contractor will also assure that all customers have left the landfill after closure. At 6:00 PM, Contract ranger will check that the late operator has safely completed his or her shift, and, at that time or later, that the doors to the Refuse Administration Building, Tollbooth and Technician's office are locked and secure. Contract ranger will maintain presence at the landfill until operator is done working. Regulation Enforcement: Safety of the rangers is the primary concern. Where appropriate, Contract rangers shall issue verbal warnings for the following Palo Alto Municipal Code violations: dogs off leash, littering, and collection offiora and fauna. Unless there is a genuine concern for the ranger's safety, all visitors with unrestrained dogs will be verbally warned. Contract rangers shall use an educational approach in every possible instance and will always be polite to violators. D) First-Responder First Aid: Provide emergency first aid to visitors upon request and promptly notify Palo Alto Communications -when necessary. Contract Ranger shall inform the CITY of any first aid performed and will include the following information: the patient's full name, address, phone number (home and work), date of birth, and the nature of the medical problem(s). Rangers shall also inform CITY of the disposition of the case, i.e., taken to a hospital, released on the scene and the type of first aid performed. This information will be submitted to the CITY within four calendar days of the aid being given. Forms already in use by the Contractor will be adequate if they include all of the above information. E) Fire SuppressionlResponse: Contract Ranger shall report any fire to Palo Alto communications. The ranger shall respond to the area safely and within the posted speed limit, following all traffic laws. The ranger shall attempt to secure the scene to prevent further damage or injury. The Contract Ranger may use a fire extinguisher, on small non-structural fires, only when such use will not place the ranger or any other person in potential jeopardy. The rangers will cooperate with, and obey the commands of, any public safety officials on the scene. F) Public Contact: Contract Rangers shall maintain a current knowledge of Baylands features, activities (including programs provided by the CITy) and applicable CITY ordinances and regulations. Contract Rangers shall provide information assistance to visitors on request and distribute any Baylands-related information CITY might wish to provide. Contractor's staff shall at all times relate to the public in a courteous and professional manner. C:\Documents and Settings\cmagana\Desktop\Contract Cll137580 final document 11231~.doc Professional Services 11 Rev June 2,2010 G) Roads and Trails Maintenance: Contract Ranger shall help keep all roadways, parking lots and trails open and clear of major debris (Le., trash, logs, rocks, etc.). H) Signs Maintenance: Routinely, and as needed,Contract Rangers shall clean signs, especially at the Refuse'Area entry. I) Litter Collection: Contractor shall provide general litter pickup within Ba.ylands on a daily basis. All collected litter shall be deposited by Contractor at the City of Palo Alto Sanitary landfill except any item deemed hazardous, in which case shall be disposed of in a manner consistent with CITY policy and all laws and regulations. Contractor will provide garbage bags and litter sticks for litter collection. J) Disposal of Wild Birds and Animals: Contract Rangers shall remove dead wild birds and animals quickly to avoid spreading of illness to other wildlife or domestic pets. Disposal shall be done in such a manner to safeguard employees and the public by wearing disposable rubber gloves, placing bird or animal in a twisted tied shut plastic garbage bag and placing in a covered trash container, out of reach of pets or scavengers. City's Ranger shall be notified if abnormal or increased frequency of dead birds and animals are found. . K) Maintenance and Repair of Miscellaneous Fixtures: Contractors shall perform routine minor repairs to various fixtures including, but not limited to fencing, gates, and benches. If a facility or amenity is unsafe, and the ranger is unable to restore to a safe and functional condition, the ranger will cone off the area or use caution tape to ensure that no one is injured using the facilityor amenity. L) Reporting of Maintenance Problems: Contractor shall report promptly to the CITY's Supervising Park Ranger any needed maintenance repairs that either exceed Contractor's capabilities or are beyond the scope of tasks described in this proposal. Reports shall be in the manner directed by the City's Supervising Park Ranger. Reports of problems at the Refuse Area will be directed to the Supervisor of the Refuse area. M) Update posted park closure signs: Contractor shall change posted park closure signs (2 clock face and 1 block type) at the end of shift on the day prior to the scheduled change. City will provide hex wrench and block inserts as needed. N) Training: Contractor shall provide all necessary training for its own staff and will be responsible for ensuring that its staff maintains current certification. Contractor will provide the CITY with rangers who have current certification in adult, child and infant cardio-pulmonary resuscitation (CPR) techniques as taught by the American Red Cross or the American Heart Association. Contractor shall provide CITY with rangers who have current certification in Standard First Aid or higher level of emergency first aid training. If a ranger has a Professional Services 12 Rev June 2, 2010 C:\Documents and Settings\cmagana\Desktop\Contract Cl1137580 final document 112310.doc certificate other than that listed above, acceptance of such certification is at the discretion of the CITY's Contract Coordinator. Contractor shall train its own staff in general maintenance and security procedures. The CITY may require Contract Rangers to attend an annual training session, to last not longer than eight (8) hours per staff member, consisting of public contact skills, customer service philosophy, conflict resolution, and review of City park rules and regulations. This will be done at the contractorts expense. 2. Specifications for Urban Parks Patrol The following Services shall be provided by the contract park rangert in the City of Palo Altots Urban Parks Patrol program. 1) , Portable barbecues are not allowed in Mitchell and Rinconada Parks when patrolled by the Contractor. 2) Noise levels shall be kept to a minimum and noise ordinances specified in the Palo Alto , MuniCipal ,Code shall be adhered to by visitors to Mitchell Park, Rinconada Park (including along the adjoining Hopkins Avenue), and Jordan Middle School Fie~ds. 3) Dogs shall be kept leashed and under the control of their, attendants at all times within Mitchell Park, Rinconada Park, and Jordan Middle School Fields when patrolled by the Contractors. 4) Garbage cans shall be regularly emptied and loose garbage shall be picked up by the Contractor from Mitch~ll Park, Rinconada Park grounds (and the adjacent Hopkins Avenue between Newell and Harriet Street), and Jordan Middle School Fields. 5) The Contractor shall regularly clean and restock Mitchell and Rinconada restrooms. 6) Park restrooms (Mitchell (two restrooms) and Hoover) will be unlocked at the beginning of each day worked, as directed. 7) All private vehicles, except City emergency or maintenance vehicles, will be prohibited from entering or remaining in the parks. 8) The reservation of picnic tables will be enforced in Mitchell and Rinconada Parks by the Contractor. 9) Adopted "Park Rules & Regulations" will be enforced by the Contractor at Mitchell Park, Rinconada Park, and Jordan Middle School fields to ensure the safety of park and field visitors, the proper use of the park and fields for the protection of park resources and the well-being of the adjoining neighborhood. 10) Patrol staff shall be vigilant in enforcing alcohol consumption rules in Mitchell and Rinconada Parks. 11) The permitted use of athletic fields and related park rules will be enforced at Jordan Middle School. C:lDocuments and Settings\cmaganalDesktop\Contract Cll137580 final document 112310,doc Professional Services 13 Rev June 2, 2010 12. Job Sites Urban Parks Patrol services will be provided at the following Locations: MitChell Park Rinconada Park Jordan Middle School 13. Field Services To Be Provided A) Regulation Enforcement: The Contractor shall provide the following regulation enforcement related services: 1) 'Enforcing the provisions of Title 22 of the Palo Alto Municipal Code (relating to parks) and the adopted "Park Rules and Regulations," specifically those sections dealing with portable barbecues, dogs off-leash, noise, the control of alcohol consumption, and the reserved use of picnic tables. This is the main function of this Contract. 2) Providing such enforcement in an educational manner whenever possible, consistent with positive customer service. 3) Provide visible patrol to all areas assigned and to be vigilant for violators. 4) Dealing with minor violations in a safe manner whenever possible, but calling for a City park ranger or police assistance whenever necessary . . B) Reservation System: 1) The Contractor rangers will familiarize themselves with the system for reserving individual picnic tables, group areas, Jordan Middle School athletic fields and other park facilities. Contractor rangers will pick up reservations each Friday at the Lucie Stem Community Center. 2) The contractor shall assist in the implementation and enforcement of the City's reservation system as directed by the Project Manager. C) Radio Use: Contractors' personnel will at all times carry the provided radio and will follow the procedures dictated by the City. D) Maintenance and Cleaning: ( 1) The Contractor shall empty garbage cans and collect litter as directed by the City's Project Manager at Mitchell Park, Rinconada Park, and Jordan.Middle School playing fields (turf). Garbage cans should be emptied as frequently as possible so that the bins do not become overfilled and burdensome to empty. If the cans are too heavy for one person to safely lift, the rangers from Mitchell and Rinconada Parks should coordinate their schedules so that they can work together to empty the over-weight cans. 2) The Contractor shall open and close restrooms as directed by the Project Manager. C:\Documents and Settings\cmagana\Desktop\Contract Cll137580 final document 112310.doc Professional Services 14 Rev June 2, 2010 3) The Contractor's staff shall check the restrooms on an hourly basis and shall clean the facilities to the standards set by the City's Project Manager. Such cleaning shall include removal of paper and other debris from the floors, the wiping down of sinks and other equipment and the restocking of toilet paper, sanitary napkin bags, and paper towels. The Contractor shall log such cleaning. on forms that they provide. At a minimum the Contract shall log the time and name of the person doing the cleaning. 4) The Contractor shall report all safety hazards and maintenance needs to the City's Project Manager on the day that the hazard or problem is observed. 5) The Contractor shall replace signs and do other maintenance tasks as directed by the City's Project Manager. 3. General Services Provided by Contractor A. Specifications CONTRACTOR shall provide the personnel services, maintenance and operations services as follows: - L Type of Positions All contract personnel shall be designated as Ranger, and shall meet the minimum employment standards contained in the job description attached as Attachments 1. The contractor shall make every ·effort to hire bilingual·(English and Spanish speaking) personnel. 2. Vehicles . A) Truck: Contractor shall provide one (1) compact pick up truck for use by its own personnel. The truck will be equipped with a yellow light bar, a flashlight, ABC chemical fire extinguisher and first aid kit. The CITY will provide the Contractor with a list of the required contents of the first aid kit. The truck shall be a maximum of six years old with a maximum of200,OOO miles on the odometer and kept clean and in good operating condition. All required equipment will be kept in operating condition. The Contractor shall provide its employees with daily checklists and supervise the employees to ensure that the truck and required equipment is checked before each Baylands shift. . The CITY reserves the right to inspect the vehicle at reasonable intervals to ensure compliance and to require that appropriate repairs be made to defective equipment within five (5) working days. The truck will be marked in a manner consistent with CITY policy as identified by the CITY's Contract Coordinator. C:\Documents and Settings\cmagana\Desktop\Contract Cll137580 final document 112310.doc Professional Services 15 Rev June 2, 2010 3. Uniforms and Personal Equipment Uniforms and Personal Equipment: Contractor shall ensure that its staff meets the stated uniform standards. Such uniforms shall be in accordance with CITY standards as identified by Contract Coordinator. Contractors shall present a neat and clean appearance at all times. The following standards shall apply to the uniform: 1) Personnel must wear a badge indicating the name of the Contractors' company. 2) Personnel must wear a nametag that states the person's first and last name, or first initial and last name. 3) Personnel must wear a belt that is suitable for carrying a radio. 4) Personnel must wear leather boots while involved with garbage collection activities. 5) Personnel may wear short pants, in the same color as the regular uniform pants, at their discretion. The inseam must between 3" to 6". 6) Personnel must carry leather gloves and must wear them while involved with garbage collection, or wear latex gloves for restroom cleaning. 7) Uniform pants will be brown. 8) Uniform shirts will be "Flying Cross," or similar brand and will have a badge tab. 9) The contractor shall ensure that all personnel working in Mitchell Park, Rinconada Park, and Jordan Middle School appear in full uniform. The following standards shall apply to the uniform: The City's Contract Coordinator must approve significant changes to the uniform standards. 4. Supplies: The Contractor shall provide its personnel with leather and latex gloves, litter sticks and garbage bags and any other tools necessary for the collection of loose garbage. 5. Tools CONTRACTOR shall provide a basic complement of non-specialized, tools for use by its staff in the performance of their duties. Such tools shall include such items such as C:\Documents and Settings\cmagana\Desktop\Contract Cll137580 final docwnent 112310.doc Professional Services 16 Rev June 2, 2010 hammers, screwdrivers, wrenches, shovels, garbage bags. litter sticks, and similar equipment. 6. Contractor's Contract Coordinator The Contractor's Contract Coordinator shall represent and provide overall supervision of the progress and execution of Contractor's obligations as specified under this Contract and shall work with the CITY's Contract Coordinator to ensure the successful implementation of this Contract. The Contractor's Contract Coordinator shall offer general management advice. arid be present at both public and staff meetings as requested. A supervisor titled "Ranger." shall be assigned by the Contractor to work with the CITY's Ranger to implement the day to day operations of this contract. 7. Completion of Services Contractor shall be responsible. at its own expense. for the selection and employment of such staff as will enable Contractor to perform its services diligently and skillfully in order to complete the tasks under this proposal without delay. 4. Services and Materials Provided by CITY A. Services 1. Radios and Service CITY shall provide a 2-way radio system to the Contractor. The Ranger will have a portable or mobile radio-for routine and emergency communication purposes. The radios will remain th~ property of the CITY and will be immediately returned upon dissolution of this contract. The CITY is responsible for routine maintenance of the radio(s). The contractor is responsible for any repair or replacement of the radios or associated parts and devices. due to negligence, abuse or unwarranted wear and tear. Such a decision. as to nature of the cause of the problem. will be the sole prerogative of the CITY's Contract Coordinator. The contractor will immediately report any problems with the radios, or their use, to the CITY's Contract Coordinator or his designee. The Contractor is responsible for monitoring its staff use of the CITY radio. Contractor must follow the radio procedures specified by the CITY. 2) Access To The Landfill For Waste Disposal: CITY shall provide for access to . City of Palo Alto Sanitary Landfill for disposal of all garbage, litter and debris collected within Baylands and other areas as assigned. 3) Training: CITY shall provide all specialized training. required by the CITY, of Contractor's staff specifically for the operation of Baylands. CITY may. at the discretion of the Contract Coordinator, train Contractors supervisors. C:\Documents and Settings\cmagana\Desktop\Contract Cll137580 final document 112310.doc Professional Services 17 Rev Jooo2,2010 Contractors supervisors shall then be responsible for training Contractor's line staff. 4) Garbage Collection: The City shall provide dumpsters and garbage cans in Mitchell and Rinconada Parks and shall arrange for timely removal of garbage from the dumpsters. B. Materials and Equipment 1) Equipment -CITY shall provide the following equipment, materials and services: A) Tools: CITY shall provide any specialized hand or power tools needed by Contractor to perform its assigned tasks. B) Machinery: CITY shall provide machinery (i.e. mowers, trimmers, etc.) required by Contractor to perform assigned tasks. C) . Materials: CITY shall provide all materials needed by Contractor to perform the tasks specified above, excluding gasoline, oil, and all other expenses related to the operation and maintenance of the vehicle specified above. CITY provided materials shall include all lumber, toilet paper, signs and other similar items required for the operations of Baylands, unless otherwise specified herein. D) Fixtures: CITY shall provide, both initially and on a replacement basis, all fixtures such as, but not limited to garbage cans, benches, fencing, gates and signs required to maintain the Baylands. E) Janitorial Supplies: The City shall provide toilet paper, paper towels and sanitary napkin bags to the Contractor. F) Signs: The City will provide all necessary signs for Mitchell and Rinconada Parks. G) Keys: The City shall provide the Contractor with such keys as are necessary to access facilities associated with this Contract. C. Priorities Within the limits of the hours of service provided and within the general scope of the tasks to be performed, CITY shall reserve the sole and exclusive right to adjust Contractor's routine work performance. D. Standards All tasks performed by Contractor under this proposal shall be in conformance with normal CITY standards. C:\Documents and Settings\cmagana\Desktop\Contract Cll137580 final document 112310.doc Professional Services 18 Rev June 2, 2010 E. Payment of Services _ 1) A payment schedule will be negotiated with Contractor at the time of award. The hourly rate and season base fees for each Monthly Service Period shall be adjusted each July 1st in accordance with the provisions outlined below. 2) Contractor shall present monthly invoices to the CITY within five (5) working days after the end of each month. 3) CITY shall pay all invoices on or before the thirtieth (30th) day of the month following each Service Period. F. Payment Adjustments As per the terms of the contract, should Contractor fail to provide the specific hours required above on any specific day. those hours not provided may either be rescheduled at CITY's discretion or deducted from the appropriate service period. Should the CITY request, in writing (at least 72 hours in advance), additional temporary hours of service that exceed the standards specified above. Contractor agrees to provide these additional hours at an hOurly rate above the normal payment specified for the particular service . period affected. Should CITY wish to permanently add additional hours of service to the base established above. Contractor and CITY agree to amend the contract and scope-ofwork in writing. The rates of payment shall be adjusted annually on the first day of July (in 2011. 2012, 2013 and 2014). These rates adjustments shall be based solely on a negotiated and mutually agreed to cost of living increase based on the regional Consumer Price Index. Said increase must be agreed in writing by January 30 of each year and the term hereof. or this Contract shall terminate. In any event, in accordance with the terms of the contract (Section 15.11) the Contract shall terminate with 30 days advance notice to Contractor if the City Council does not budget adequate funds for services. G. City Contract Coordinator The Open Space, Parks and Golf Division Manager of the CITY, or his or her designee, shall be the CITY Contract Coordinator and shall represent the CITY and render overall supervision of the progress and execution of this Contract. All services to be performed hereunder by Contractor shall be subject to approval and acceptance by the CITY Contract Coordinator. CITY Contract Coordinator shall make periodio reviews of Contraotor's operations and report any fmdings to the Contractor's Contract Coordinator. The Palo Alto Supervising Park Ranger. or his/her designee. assigned to the Baylands, shall supervise the day to day operations of this Contraot. ' C:\Docwnents and Settings\cmagana\Desktop\Contract C11137580 final document 112310,doc Professional Services 19 Rev June 2, 2010 EXHIBIT "B" SCHEDULE OF PERFORMANCE Baylands Hours of Service: The contractor shall provide basic levels of service in the Baylands (Nature Preserve, Bybee Park, and Refuse Area) as outlined below: Summer Season The first Sunday in April, to the Saturday before the last Sunday in October, referred to as the Summer Season the ranger(s) will work a schedule that will vary each year, in reflection of the City of Palo Alto Open Space calendar. This varied schedule will allow the ranger to close the landfill and close the entrance gate at the Baylands at the appropriate time close to sunset. April 1 to April 30* coverage will be 4 :h hours (3:45-8:15) -135 hours May 1 to May 31 * coverage will be 5 hours (4:15-9:15) -155 hours June 1-June 30 * coverage will be 5 hours (4:15 -9:15) -150 hours July 1-July 31 * coverage will be 5 hours (4:15 -9:15) -155 hours August 1 -August 31 * coverage will be 5 hours (3 :45-8:45) -155 hours September 1 to September 30* coverage will be 4 hours (4:15-8:15}-120 hours October 1 to October 31 * coverage will be 4 hours (3 :45-7 :45) -124 hours * Dates are approximate and will change slightly to reflect sunset times. Winter Season The last Sunday in October to the Saturday before the first Sunday in April, referred to as the Winter Season. November 1 to November 30 coverage will be 3 hours per day (2:45-5:45) -90 hours December 1 -December 31 coverage will be 3 hours per day (2:45-5 :45) -93 hours January 1 -January 31 coverage will be 3 hours per day (2:45-5:45) -93 hours February 1-February 28 coverage will be 3 hours per day (3:15-6:15) -84 hours March 1 -March 31 coverage will be 3 hours per day (4:45-7 :45) -93 hours Urban Parks Hours of Service: The contractor shall provide basic levels of service at Mitchell, Rinconada/Jordan, and Hoover as outlined below: Summer Season -May 1 -October 31 Mitchell Park - 4 hours of coverage (8 -12) on Saturdays, Sundays, Memorial Day, the 4th of July, and Labor Day. Rinconada/Jordan Park - 8 hours of coverage (8-5) on Saturdays, Sundays, Memorial Day, the 4th of July, and Labor Day. (The intent of the Jordon Middle School field service is that the staff person working at Rinconada Park will make brief (15 min) sporadic inspections of the Jordan field-making note of activity, C:IDocuments and Settings\cmaganaIDesktop\Contract Cll137580 final document 1 12310.doc Professional Services 2 0 Rev June 2, 2010 noise, on or offleash dog use, and trash. They will also check and enforce rules and regulations and perinitted use of athletic fields arid pick up loose trash.) Restroom Opening (Mitchell, Rinconada,and Hoover Parks) -1 hour (8-9) on Saturdays, Sundays, Memorial Day, the 4th of July, and Labor Day Winter Season -November 1 -April 30 Riconadallordan Park -4 hours (8-i 2) of coverage on Sundays, Thanksgiving, and ,Christmas Restroom Opening (Mitchell, Rinconada and, Hoover,) - 1 hours (8-9) on Saturdays and Sundays C:\Documents and Settings\cmagana\Desktop\Contract Cll137580 fmal document 112310.doc Professional Services 21 Rev June 2, 2010 Total Hours 212 12 224 Restrooms May-11 9 Jun-11 8 JUI-11 10 1 Aug-11 8 Sep-11 8 Oct-11 10 Total Hours 53 3 56 888 Professional Services 2 3 . Rev June 2, 2010 C:IDocuments and Settings\cmaganalDesktop\Contract Cll137580 final document 112310.doc Month Nov-10 Oec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Total EXHIBIT B-2 Baylands Hours November 1,2010 tbru October 31, 2011 Hours 90 93 93 84 93 135 155 150 155 155 120 124 1447 C:\Documents and Settings\cmagana\Desktop\Contract Cll137580 final document 112310.doc Professional Services 2 4 Rev June 2, 2010 EXHIBITC COMPENSATION The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit "A", including both payment for professional services and reimbursable expenses, shall not exceed one hundred ten thousand fifty three dollars ($110,053.00) "for Year 1. The applicable rates and schedule of payment are set out in Exhibit "C-1 ", and Exhibit "C-2", entitled "Schedule of Rates" which are attached to and made a part of this Agreement. Compensation for Years 2 through 5 shall be negotiated on an annual basis between CONSULTANT and CITY. The rates of payment shall be adjusted annually on the first day of November (in 2011, 2012,2013 and 2014). These rates adjustments shall be based solely on a negotiated and mutually agreed to cost of living increase based on the regional Consumer Price Index. Said increase must be agreed in writing by June 30 of each year and the term hereof, or this Contract shall terminate. In any event, in accordance with the terms of the contract (Section 15.11) the Contract shall terminate with 60 days advance notice to Contractor if the City Council does not budget adequate funds for services. C:\Documents and Settings\cmagana\Desktop\Contract Cll137580 final document 112310.doc Professional Services 2 5 Rev June 2, 2010 EXHIBIT C-l Schedule of Rates Palo Alto Hourly Compensation Rates Baylands -$62/hour (rate includes other direct and indirect expenses) Urban Parks -$22/hour Additional Hours: Ranger -$22/hour Ranger OT -$33.00/hour Senior Ranger -$26/hour Senior Ranger OT -$39.00/hour C:\Documents and Settings\cmagana\Desktop\Contract C11137580 final document 112310.doc Professional Services 2 6 Rev June 2, 2010 Month Nov-10 Oec-10 Jan-11 Feb-11 Mar-11 . Apr-11 May-11 Jun-11' Jul-11 Aug-11 Sep-11 Oct-11 Total Compensation Regluar Rate-Per hr. Holiday Rate-Per Hr. EXHIBITC-2 Baylands Compensation November 1, 2010 through October 31, 2011 Total Hours Regular Holiday 90 87 3 93 90 3 93 93 84 84 93 93 135 135 155 150 5 150 150 155 150 5 155 155 120 115 5 124 124 $62 $62 C:\Documents and Settings\cmagana\Desktop\Contract Cll137580 final document 11231O.doc Monthly Total $5,580 $5,766 $5,766 $5,208 $5,766 $8,370 $9,610 $9,300 $9,610 $9,610 $7,440 $7,688 $89,714 Professional Services 2 7 Rev June 2,2010 Oct-11 10 $22 TOTAL COMPENSATION Rate RanQer ReQular per hr $22 RanQer Holiday per hr $33 C:\Documents and Settings\cmagana\Desktop\Contract CII137580 final document 112310.doc $220 $20,339 Professional Services 2 9 Rev June 2, 2010 / EXHIBIT "D" INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT TIIEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITHAMBEST'SKEYRATINGOFA-:Vll,ORmGHER,LICENSEDORAUmORlZEDTOTRANSACTINSURANCEBUSINESSIN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITII CITY'S INSURANCE REQUIREMENTS AS SPECIFIED BELOW: MINIMUM LIMITS REQUIRED TYPE OF COVERAGE REQUIREMENT EACH YES YES YES YES YES YES OCCURRENCE AGGREGATE WORKER'S COMPENSATION STATUTORY EMPLOYER'S LIABILITY STATUTORY BODILY INJURY $1,000,000 $1,000,000 GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE $1,000,000 $1,OOO,Oqo 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 -EACHPBRSON $1,000,000 $1,000,000 -EACH OCCURRENCE $1,000,000 $1,000,000 AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED PROPERTY DAMAGE $1,000,000 $1,000,000 BODILY INJURY AND PROPERTY $1,000,000 $1,000,000 DAMAGE COMBINED PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1000000 THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDmONAL 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 DESCRIBBD, INSURING NOTONLYCONTRACTORAND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITII 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 WRlTIEN TffiRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO TIlE INSURANCE AFFORDED TO "ADDITIONAL INSUREDS" A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY TIllS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER C:\Documents and Settings\cmagana\Desktop\Contract C11137580 final document 112310.doc Professional Services 3 0 Rev June2,2010 INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY THE NAMING OF MORE TIIAN 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 TIllS 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 FORANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMP ANY 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, TIm ISSUING COMPANY SHALL PROVIDE CITY ATLEASTA TEN (10) DAY WRITIEN 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 C:\Documents and ~ettings\cmagana\Desktop\Contract C11137580 final document 112310.doc Professional Services 3 1 Rev June 2, 2010 . JOB DESCRIPTION RANGER: .. ATTACHMENT 1 . DEFlNITION: Under gene~al supervision, patrols aSsighed lands and trails~provide.svisitor information, assists, in developing infoona~onl education. pro granis, for the public'andlor monitors barbecue reseryations. "Performs a variety of semiskilled maintenance-type work. . Respo~ds to . , accidents and injuries.pro:Vides basit: Ufe ?upportas needed and/or first aid up to certification ' 1eve1.ASsists emergency,services as needed,. . ' . . , 'TYPICAL TASKs; Patrols assi~ed land to ensure the s'afe 'use of such l~ds and 1'i"ails . .' .. including enforcement, of park'ordirunices; provides information; m.onitors 'barbecue Ies~rvations; ! perf~~fire snppressi()n duties aSneeded~ provide$informalion and aSsists'Supervisingan(i Seilior ~angets:in the supervision of part-time or temporary employees as assigned;perro1,'mS a variety of ~nte.riance and COnstt:uction d~tiesrelati1l:g to the deve19pmentand upkeep of. the , , aBsignedJ!mds. trails, facilities; repairs and :rnamtains smaIl eqUipment used in such :work. as well as, daily inspection of assigned vehicles; may train employees· as needed; perfor.tl'lB related .. work as required; , EMPLoYMENT STANDARDS: Individuals muSt be at least 19 years old. This pqsition . ordinarily requires educ~tion eqijivruent to graduatioll from high schoolaD:d a mininium of one 'Year's experience in the protection, . operation or nuUntenanceof a park, forest, public recreation. . . employment as a security guard or the equivalent, fudividual D:l1;lst process a vali4 C811fornia . 'driver's Ucense and State of califomia Department pf Co~umer ,Affafrs,Bqreau of Security and Inyestigative Services "GUard Carq." " " . PHYSICAL REQ~MENTS: Indivfdualmust possess strength, endurance, agility and must be mentally alert and emotionally mature. Individual must have . normal hearing,!J.ol111a1·· vision function or wear ,corrective lenses. at?-d,sufficient s:Wimming ability forself·preserVation. SPECIAL NOTE: Worlds' usually peiformed alone. Individual m~ybe required to work odd hours,. on ,weekends and holidays arid wear the prescribed uriiform., C:\Documents and Settings\cmagana\Desktop\Contract C11137580 final document 112310.doc Professional services. 3 2 . Rev June 2,20 I 0 TO: FROM: DATE: REPORT TYPE: SUBJECT: HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: PUBLIC WORKS DECEMBER 6, 2010 CMR:433:10 CONSENT Approval of a Wastewater Treatment Enterprise Fund Contract with TMAD Taylor & Gaines Corporate in a Total Amount Not To Exceed $131,587 for Design of Power Monitoring and Standby Generators Replacement Project at the Regional Water Quality Control Plant - Capital Improvement Program Project WQ-80021 RECOMMENDATION Staff recommends that Council: 1. Approve and authorize the City Manager or his designee to execute the attached contract with TMAD Taylor & Gaines Corporate (Attachment A) in a not to exceed amount of $119,625 for engineering design services for power monitoring and standby generator replacement project at the Regional Water Quality Control Plant -Capital Improvement Program Project WQ-80021; and 2. Authorize the City Manager or his designee to negotiate and execute one or more contract revisions to the contract with TMAD Taylor & Gaines Corporate for related additional services as specified in the contract, the total value of which shall not exceed $11,962. DISCUSSION During the extended citywide power outage on February 17, 2010, the Regional Water Quality Control Plant's standby emergency generators were activated automatically and manually. One of the Regional Water Quality Control Plant's seven emergency generators did not work as expected, however the Regional Water Quality Control Plant still operated successfully throughout the nearly ten hour power outage without exceeding the Regional Water Quality Control Plant's discharge limits. The generator malfunction highlighted the need for replacement of the plant's older and less reliable generators. Of seven generators, four are more than 19 years old. This contract is for TMAD Taylor & Gaines Corporate to design replacements to the four oldest standby generators including the 26-year old generator that underperformed during the February 17, 2010 power outage. In addition to the generator replacements, the design will include power monitoring equipment to be installed at key locations within the Regional Water Quality Control Plant to track power use, monitor power use rates in real-time and provide data for potential energy demand reduction projects. Scope of Services Description The scope of work includes design of replacements to two stationary and two portable standby generators, design of new power monitoring equipment, preparation of construction bid CMR:~33:10 Page 1 of3 documents, and preparation of diesel generator air permit applications. The work also includes assisting the City during bidding, providing technical support during construction, and preparing the as-constructed record drawings for the project. Summary of Solicitation Process Proposal TitleINumber Consulting Services for Power Monitoring And Standby Generators Replacement At The Regional Water Quality Control Plant - Request for Proposal No. 138402 Proposed Length of Project 12 months Number of Solicitations for Proposal mailed 5 &/or em ailed Total Day~ to Respond to Proposal 29 Pre-proposal Meeting Date September 14,2010 Number of Company Attendees at Pre-proposal 8 firms Meeting Number of Proposals Received: 8 Number of Companies Interviewed 3 Range of Proposal Amounts Submitted $98,810 to $250,860 Evaluation of Proposals An evaluation committee consisting of the Regional Water Quality Control Plant engineering staff reviewed the proposals. Three firms were invited to participate in oral interviews on October 18, 2010. The committee carefully reviewed each firm 's qualifications and submittal in response to the criteria identified in the Request for Proposal. The criteria used to evaluate the proposing firms included: quality and completeness of proposal; quality, performance, and effectiveness of the work plan; proposer's experience; proposer's ability to perform the work within' the time specified; cost; proposer's financial stability; proposer's prior record of performance with the City; and proposer's compliance with applicable laws and regulations. TMAD, Taylor & Gaines Corporate was selected because of its innovations, understanding of needed design services, the quality, its competitive cost proposal, and the professional experience of the key team members. RESOURCE IMPACT i Funds for this project are included in the FY 2011 Wastewater Treatment Enterprise Fund budget Capital Improvement Program project WQ-80021. POLICY IMPLICATIONS Authorization of this project does not represent a change in existing policies. ENVIRONMENTAL REVIEW This project is exempt from review under the California Environmental Quality Act pursuant to California Environmental Quality Act Guidelines Section 15301 (b), which includes repair and maintenance of publicly-owned wastewater facilities involving negligible expansion. CMR:433:10 Page 2 of3 (' CITY OF PALO ALTO CONTRACT NO.: Cll138402 ATTACHMENT A AGREEMENT BETWEEN THE CITY OF PALO ALTO AND TMAD TAYLOR & GAINES CORPORATE FOR PROFESSIONAL SERVICES: CONSULTING SERVICES FOR POWER MONITORING AND STANDBY GENERATORS. REPLACEMENT This Agreement is entered into on this day of November, 2010, ("Agreement") by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and TMAD TAYLOR & GAINES CORPORATE, a corporation in the State of California, with offices located at 311 California Street, Suite 700, San Francisco, CA 94104 ("CONSULTANT"). RECITALS __ !he follm:v-iIlg recitals are a substantive.portion ofthis Agreement. A. CITY intends to install power monitoring and replace standby generators at the Regional Water Quality Control Plant ("Project") and desires to engage a consultant to design, engineer and prepare construction bid documents in connection with the Project ("Services"). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit "A", attached to and made a part of this Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit "A" in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. D Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements. ) Services will be authorized by the City, as needed, with a Task Order assigned and approved by the City's Project Manager. Each Task Order shall be in substantially the same form as Exhibit A-l. Each Task Order shall designate a City Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work performed under Professional Services Rev. June 2, 2010 CITY OF PALO ALTO CONTRACT NO.: CII138402 an authorized Task Order and the City may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through completion of the services in accordance with the Schedule of Performance attached as Exhibit "B" unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULT ANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit "B", attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY's agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit "A", including both payment --for professional services and reimbursable expenses, shall not exceed One Hundred Nineteen Thousand Six Hundred Twenty-five Dollars ($119,625.00). In the event Additional Services are authorized, the total compensation for services and reimbursable expenses shall not exceed One Hundred Thirty-one Thousand Five Hundred Eighty~seven Dollars ($131,587.00). The applicable rates and schedule of payment are set out in Exhibit "C-l", entitled "HOURL Y RATE SCHEDULE," which is attached to and made a part of this Agreement. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit "C". 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". SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed ~d the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT's billing rates (set forth in Exhibit "C-l "). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT's payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City's project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thirty (30) days of receipt. SECTION 6. OUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULT ANT's supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, if permitted, . Professional Services Rev. June 2, 2010 2 \\CC-TERRA\jarreol\PURCHDOc\SAP Bids and Proposals\RFP\RFPI38402 Power Monitoring and Standby Generators Replacement\Docs related to contract\Contract ell 138402 TMAD TA YLOR.doc CITY OF PALO ALTO CONTRACT NO.: CII138402 have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the services to be furnished by CONSULTANT under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULT ANT 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 of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to CITY, any and all errors, omissions, or ambiguities in the work product submitted to CITY, provided CITY gives notice to CONSULTANT. If CONSUL T ANT has prepared plans and specifications or other design documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors, omissions or-ambiguities discovered prior to and during the course of construction of the Project. This obligation shall survive termination of the Agreement. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of the CITY's stl;lted construction budget, CONSULTANT shall make recommendations to the CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materi,als under this Agreement, shall act as and be an independent contractor and not an agent or employee of the CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations 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. SECTION 12. SUBCONTRACTING. Notwithstanding Section 11 above, CITY agrees that subconsultants may be used to complete the Services. The subconsultants authorized by CITY to perform work on this Project are: 1. HKIT Architects -"As needed" architectural services. 2. O'Connor Construction Management, Inc. -Cost estimating and construction review 3 Professional Services Rev, June 2, 2010 \\CC-TERRA\jarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFP138402 Power Monitoring and Standby Generators Replacement\Docs related to contract\Contract C 11138402 TMAD TA YLOR.doc CITY OF PALO ALTO CONTRACT NO.: CII138402 CONSULTANT shall be responsible for directing the work of any subconsultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval of the city manager or his designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Naseer Ahmed as the principal-in-charge to have supervisory responsibility for the performance, progress, and execution of the Services and Mohan Sabapathy as the project manager to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY's project manager. CONSULTANT, at CITY's request, shall promptly remove personnel who CITY finds do not 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 Padmakar M. Chaobal, P.E., Public Works Department, Regional Water Quality Control Plant Division, 2501 Embarcadero Road, Palo Alto, CA 94303, Telephone: 650-329-2287. 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 14. OWNERSIDP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULT ANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULT ANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT 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. f8J[Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architects; landscape architects; registered professional engineers and licensed professional land surveyors.] 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and 4 Professional Services Rev. June 2, 2010 \\CC-TERRA \jarreol\PURCHDOC\sAP Bids and Proposals\RFP\RFPI38402 Power Monitoring and Standby Generators Replacement\Docs related to contract\Contract C 11138402 TMAD T A YLOR.doc CITY OF PALO ALTO CONTRACT NO.: CII138402 agents (each an "Indemnified Party") from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements ("Claims") that arise out of, pertain to, or relate to the negligence, recklessness, or wi11fu~ misconduct of the CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. o [Option B applies to any consultant who does not qualify as a design professional as defined in Civil Code Section 2782.8.] 16.1. To the fullest extent permitted by law, CONSUL TANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an "Indemnified Party") from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements ("Claims") resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT's services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision 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 sole cost and expense, shall obtain and maintain, in full force and effect during the term ofthis Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best's Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently 5 Professional Services Rev. June 2,2010 \\CC-TERRA\jarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFP138402 Power Monitoring and Standby Generators Replacement\Docs related to contract\Contract Cll138402 TMAD TAYLOR.doc CITY OF PALO ALTO CONTRACT NO.: CII138402 with the execution of this Agreement. The certificates will be subject to the approval of CITY's Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification, CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY's Purchasing Manager during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be 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 of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereofto CONSULTANT.· Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19 .2. CONSULTANT may terminate this Agreement or suspend its performance of the 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 termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT 's services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise ofhislher discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4,20, and 25. 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by 6 Professional Services Rev. Iune 2, 2010 \\CC-TERRA \jarreol\PURCHDOc\SAP Bids and Proposals\RFP\RFPI38402 Power Monitoring and Standby Generators Replacement\Docs related to contract\Contract CII138402 TMAD TA YLOR.doc CITY OF PALO ALTO CONTRACT NO.: Cll138402 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 CONSULT ANT: Attention ofthe project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, fmancial or otherwise, which would conflict in any manner or degree with the performance of the Services. --21.~. CONSULT ANT 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 officer 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 ofCalifomia. 21.3. If the Project Manager determines that CONSULTANT is a "Consultant" as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appr:opriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 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 REOIDREMENTS. 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: 7 Professional Services Rev. June 2, 2010 \\CC-TERRA \jarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFPI38402 Power Monitoring and Standby Generators Replacement\Docs related to contract\Contract C11138402 TMAD T A YLOR.doc CITY OF PALO ALTO CONTRACT NO.: C11138402 • All printed materials provided by Consultant 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 of30% 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 of30% or greater post-consumer material 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 of the 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 ofthis 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 instrument, which is signed by the parties. 25.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 8 Professional Services Rev. June 2, 2010 \\CC-TERRA \jarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFPI38402 Power Monitoring and Standby Generators Replacement\Docs related to contract\Contract Cl 1 138402 TMAD TA YLOR.doc CITY OF PALO ALTO CONTRACT NO.: CII138402 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 ~uly 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 defined in California Civil Code section 1798.81.5(d) about a California resident ("Personal Information"), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City's express written consent. 25.9 All unchecked boxes do not apply to this agreement. 25.10 The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 9 Professional Services Rev. June 2, 2010 \\CC-TERRA \iarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFPI38402 Power Monitoring and Standby Generators Replacement\Docs related to contract\Contract C 11138402 TMAD T A YLOR.doc CITY OF PALO ALTO CONTRACT NO.: C11138402 IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date f11"$1 above written~ CITY OF PALO ALTO City ;Manager __ I (Required on contracts over $85,000) Purchasing Manager . . __ (Required on. contracts over $25,000) Contracts Administrator ( __ (Required on contracts under $25,000) APPROVEI:>AS TQFORM: Senior Asst. City Attorney (Required on Contracts over $25,000) Attachments: EXHIBIT "N': SCOPE OF WORK I. CONSULTANT: TMAD TAYLOR & GAINES CORPORATE By. ~~,,+OLr,. ' Name: Mv/-htN MBkfIt7J'f-'(, 1£ Title: V {f:G e U.s ( [) EN, EXHlBIT ''B'': EXHmIT "C": SCHEDULE OF PERFORMANCE COMPENSATION EXHIBIT "C-l": EXHlBIT "D": I SCHEDULE OF RATES INSURANCE REQUIREMENTS 10 Professional Services Rev. June 2, 2010 \\CC-TERRA\jarreol\PURCHDOC\sAP Bids and Proposals\RFP\RFP138402 Power Monitoring and Standby Generators Replacement\Docs related to contract\Coniract Cll138402 lMAD TA YLOR.doc .,. CITY OF PALO ALTO CONTRACT NO.: C11138402 I. INTRODUCTION EXHIBIT "A" SCOPE OF SERVICES The City of Palo Alto, Department of Public Works, Regional Water Quality Control Plant (RWQCP) intends to replace four of the plant's seven older emergency power generators. Consultant services shall include sizing, design, automation and permitting of two portable and two stationary emergency power generation systems and design of a power monitoring system at the RWQCP. As an option, the City may choose to replace the existing portable generator sets with stationary sets. The Consultant (Engineer) shall provide engineering services during all phases of the project from preliminary options assessments, design and permitting through support in commissioning/start up. II. BACKGROUND INFORMATION The Palo Alto Regional Water Quality Control Plant (RWQCP or Plant) treats wastewater from six communities (the Partners). The City of Palo Alto (City) owns and operates the RWQCP. The service area is a mix of institutional, residential, and commercial uses consisting of approximately 223,100 residents. The Plant has a design capacity of39 mgd, average treated flow of 22 mgd, and a wet weather capacity of 80 mgd. The Plant was constructed from 1970 to 1972 at the site of the pre-existing Palo Alto wastewater treatment plant built in 1934. The Plant was upgraded to tertiary treatment in 1980. Plant capacity was increased in 1988. Wastewater treatment facilities include primary sedimentation, fixed film reactors (FFR), activated sludge aeration and nitrification, secondary clarification, dual media filtration (DMF), ultraviolet disinfection (with redundant sodium hypochlorite disinfection and sodium bisulfite dechlorination), followed by outfall discharge to the San Francisco Bay. Biosolids are thickened, dewatered on belt presses, and incinerated in multiple hearth furnaces (Incinerators) before ash is hauled to offsite disposal. Recycled water is coagulated, filtered, disinfected with sodium hypochlorite, stored, and pumped to customers in Palo Alto and Mountain View. III. SCOPE OF WORK A. General The consultant shall size, design, develop specifications including automation, prepare bid documents and facilitate the air permitting for two portable and two stationary emergency/standby power generation systems. In the event of electric power failure the control system designed shall commence the sequence of automatic power transfer; i.e. start generators and automatically pick up the load. Upon resumption of the grid power supply, the Plant prefers the option of manual switchover. The new replacement generators shall be as follows: 11 Professional Services Rev. June 2, 2010 \\CC-TERRA\jarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFP138402 Power Monitoring and Standby Generators Replacement\Docs related to contract\Contract C11138402 TMAD TA YLOR.doc CITY OF PALO ALTO CONTRACT NO.: Cll138402 • One portable generator to sustain the operation of Fixed Film Reactors (FFR) will be located west of the FFRs by the aeration tanks. • One portable generator to sustain the operation of Dual Media Filters (DMF) will be located at the south west comer of the building. • The two generators for FFR & DMF, shall be designed to be paralleled together to provide (N+ 1) generation. The system shall be designed so that either one or both generators come online in the event of grid power failure, depending on the loads that need to be serviced. The system shall be programmed such that loads can be added or shed depending on the criticality of the plant operation. • As an option; City may choose to have stationary standby generators for above (FFR and DMF) services at same location or at another more suitable location; instead of portable generators. • Two stationary generators to sustain the operation of head works, both old and new raw sewage pumping plants, part of the solids incinerators, and equipment in the building known as the 'chlorine building'. The stationary generators shall replace two existing stationary generators located in the New Pumping Plant (NPP) building. • The two stationary generators in NPP, shall be designed to be paralleled together to provide (N+ 1) generation. The system shall be designed so that either one or both generators come on line in the event of grid power failure, depending on the loads that needs to be serviced. The system shall be programmed such that loads can be added or shed depending on the criticality of the plant operation. The existing portable generator at the FFRs currently must be started manually in the event of power failure. The consultant shall design a system that automates generator startup and power transfer, and sends the generator operating status signal to the local PLC for tie~in to SCADA system. The project ends at the local PLC, Plant staff will integrate the signal into the SCADA system. To facilitate the periodic testing of the standby generators; the Consultant shall size and specify appropriate load banks; research and review the options such as installation of a stationary load bank on a common bus, portable load bank or individual load bank for each generator. Consultant shall research and evaluate methods and systems to place the four new generator sets on a common bus so that emergency power is available to the NPP, FFR and DMF, in the event one of the generators is out of operation. , Consultant shall also review the option and prepare a technical memorandum to the City, to tie four new standby generators and the existing 3 standby generators on a common bus, so that each treatment area of the plant always has standby power available. Inaddition, the Consultant shall design; develop specifications, and prepare bid documents for installation of power/load monitoring or metering instrumentation at various load centers in the plant. Nine load centers have been identified to receive power 12 Professional Services Rev. June 2, 2010 \\CC-TERRA\jarreo1\PURCHDOC\SAP Bids and Proposa1s\RFP\RFP138402 Power Monitoring and Standby Generators Rep1acement\Docs related to contract\Contract Cll138402 TMAD T A YLOR.doc CITY OF PALO ALTO CONTRACT NO.: Cll138402 meter/monitors (Refer to Utility Plan U-7 and the Load Center Table). Currently, some locations have power meters installed. Consultant shall verify their functionality, compatibility and evaluate if the existing meters need to be replaced or upgraded. The power monitoring system shall be capable of transmitting the power usage data to the plant's SCADA system in real time. This shall enable the plant operators to track and record the power usage remotely. The Consultant shall evaluate, with information from Plant instrumentation staff, if the local PLCs have the spare capacity for the power monitoring signals. If required, the Consultant shall design additional equipment and/or wiring to connect to Plant's SCADA system. For construction project, the contractor will install the instrumentation and run wires to local PLC for Plants SCADA system. The Plant staff shall integrate the signals from the new power monitors into the SCADA system. The Consultant shall prepare the bid package to include; procurement of two portable emergency generators; procurement and installation of stationary emergency generators; and for installation of load/power monitoring instrumentation at various load centers in the plant. The design/specifications shall comply with all local, state, and federal rules and regulations such as EPA's Clean AirNon~road Diesel rules EPA420-F-04-032, the Bay Area Air Quality Management District (BAAQMD) administrated Statewide Air Toxics Control Measure (ATCM) for Stationary Diesel Engines (portable engines may be exempt from the stationary ATCM), California Air Regulatory Board (CARB) adopted ACTM. Additionally, the design/specifications for the portable generator sets shall comply with requirements of Department of Transportation (DOT) and Federal Motor Vehicle Safety Standards (FMVSS). Consultant shall perform the design in phases. The design goals and deliverables shall be performed for 30% design and 90% design. At the completion of each phase of design, consultant shall submit the design package and meet with City staff to review the submittal and discuss comments. The intent of the design review meeting is to solicit and compile comments and address/resolve issues. Design drawings shall be prepared in AutoCAD and PDF, and specifications shall be prepared in Microsoft Word for use by the City. B. Tasks The Consultant's scope of work shall include, but not necessarily be limited to the following: Task 1 -Design Design 30% -Develop Design Criteria • Review the power requirement for each generator set service area. 13 Professional Services Rev. June 2, 2010 \\CC-TERRA \jarreol\PURCHDOC\sAP Bids and Proposals\RFP\RFP138402 Power Monitoring and Standby Generators Replacement\Docs related to contract\Contract CI 1 138402 TMAD TA YLOR.doc CITY OF PALO ALTO CONTRACT NO.: Cll138402 • Evaluate and recommend optimum size and type of generator for each service area. • Develop plan for automating start up of the FFR portable generator in response to power interruption, including tie-ins with plant's ATS and communication with plant's SCADA network. • Research, evaluate and prepare a technical memorandum outlining the pros and cons of stationary generators versus portable generators for servicing the FFR and DMF areas. • Validate the capacity of existing above ground diesel fuel storage tank for the stationary generators at the N.P.P. • Develop the outline of plan for the replacement of stationary generators in the N. P. P. • Determine what permits will be required for the emergency generators; and the permit requirements, the application materials required and the steps involved in the permit process. • With input from Plant staff, establish the power monitoring criteria, such as, Number of, type of, and location of power monitoring meters. Power monitoring equipment features. Schematic of power monitoring system showing meter location (e. g. -. ",hien load center) equipment monitored (powereaby conductor) and tlie - connection to (interface with) the existing PLC and/or SCADA system. • Recommend a portable power metering and data recording/storage device that can be temporarily connected to individual equipment to record and store data which can be transferred to a computer or SCADA system. • For the 30% design review, prepare a technical memorandum outlining the basis of design, preliminary system sizing and performance specifications, and preliminary layout. ' • Provide four sets of drawings, specifications, and other 30% deliverable documents. Design 90% -Power Monitoring and Standby Generators • Consultant shall incorporate all the comments and concerns issued during the previous review. The design shall be the true reflection of City's intent for this project. • The generator specifications shall meet the following objectives: Meet the Plant's electric power needs for the specific treatment areas. Meet all EPA and BAAQMD requirements for Compression Ignition Engines (CIE). The generator automation shall communicate with the RWQCP'sSCADA system. Comply with provisions of the latest California Electric Code (CEC). • The design shall include the installation details, specifically for the two stationary generators in the N. P. P. This includes civil and structural engineering for the installation of the stationary generators. (Note -The City may choose to have statipnary generators for all four service areas). • The design for power monitoring system, including the specifications for portable 14 Professional Services Rev. June 2,2010 \\CC-TERRA\jarreol\PURCHDOC\SAP Bids and ProposaIs\RFP\RFP138402 Power Monitoring and Standby Generators Replacement\Docs related to contract\Contract C 11138402 TMAD T A YLOR.doc CITY OF PALO ALTO CONTRACT NO.: Cl 1 138402 power monitor. • Provide four sets of drawings, specifications and other 90% deliverable documents. Design Final-Power Monitoring and Standby Generators Consultant shall perform final updates derived from City's comments and Consultant's own internal quality control and audits. • The system design at this stage will include construction documents with plans, specifications, design calculations and final construction cost estimate. • Prepare the design package to secure applicable permitting and soliciting construction I procurement for each task. • Provide one unbound copy and one Microsoft Word electronic copy of final specifications for the bid package. • Provide two wet stamped hard copies, one digital copy in PDF format and one in AutoCAD 3D Civil 2010 format ofthe final stamped plans. Provide two hard copies & one digital copy in MS Word format of the final specifications for the package. Task 2 -Permits and Environmental Documents • The new generator sets must be permitted by the Bay Area Air Quality Management District under the Regional Water Quality Control Plant's Permit to Operate. The specifications shall include compliance with the regulatory limits applicable for emergency standby diesel generators that are imposed by the Bay Area Air Quality Management District, including Airborne Toxic Control Measures (ATCM) regulations. The individual regulatory limits shall be specifically stated in the specifications, so that bidders are required to provide information about their product's compliance with each applicable limit. • The consultant shall prepare the applications for all the required permits and shall assist the City in obtaining them. • Prepare application and support documents for CEQA Categorical Exemption. If and as required; prepare application and support documents for mitigated negative declaration. • If and as required; prepare an application for an Authority to Construct (A TC) for submittal to the Bay Area Air Quality Management District (BAAQMD) in sufficient lead time to receive ATC for the project schedule. The task deliverable shall include submittal of all requisite application forms and information, design plans and details, equipment specifications, and air emissions estimates. • Ifand as required; attend up to four (4) meetings with regulatory agencies such as BAAQMD, CARB etc. • Respond to BAAQMD's comments and assist in securing the ATC, as required. Task 3 -Deconstruction of Existing Stationary Emergency Generators • The consultant shall develop a plan and write procedures to de-construct the two 15 Professional Services Rev. June 2, 2010 \\CC-TERRA\jarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFP138402 Power Monitoring and Standby Generators Replacement\Docs related to contract\Contract CI 1 138402 TMAD TAYLOR.doc CITY OF PALO ALTO CONTRACT NO.: Cl1138402 existing stationary emergency generators in the N. P. P. building. • The work plan should place emphasis on minimizing exposure time during replacement of existing generators with new ones. 'Exposure time' is defined as the duration when the plant equipment is operating without any backup power. • The work plan shall include provisions and details for hooking the N.P.P. and associated loads to temporary / portable emergency generators while existing generators are being removed and new ones installed. The City, at plant manager's discretion, may choose to rent temporary standby power while this work is being performed. Task4 -Services During Bidding • Consultant shall assist the City in preparation of one construction bid package. • Consultant shall respond to the requests for clarification and/or information from prospective bidders. • Consultant shall assist the City with preparation of Project addenda and furnish the originals required for said addenda. • Consultant shall attend and assist the City at the pre-bid conferences and the walk flirough. Task 5 -Services During Construction • Consultant shall review submittals from the contractor for conformance with the Contract Documents. The Consultant shall review and return the submittal comments to the City within seven calendar days. • Consultant shall prepare written response to the Request for Information (RFI) submitted by the contractor. The Consultant shall review, comment and return the RFI responses within seven calendar days. • Consultant shall review and validate the Contract Change Order requests submitted by contractor for accuracy and correctness, as requested by the City. • As requested, the Consultant shall attend periodic Project Progress Meetings with the Contractor. Please allow for one meeting per month, at the minimum, during the construction phase. • The Consultant shall provide the technical support to the City during start up and commissioning of the new emergency generators. The Consultant shall work with Contractor and equipment (generator) manufacturer's representatives, as requested by the City. • The Consl,lltant shall assist the City in monitoring, documenting and/or validating any testing required by the permitting agencies. • The Consultant shall review the "as-built" or "red line" drawings and documents maintained by the contractor during construction. Upon construction completion, the Consultant shall prepare one full size, one half size (11 "Xl 7") set and one electronic copy of the record drawings. The electronic copy shall be in AutoCAD 3D Civil 2010 format. The record drawings shall consist of annotated contract drawings and electronic files showing changes in design and construction. 16 Professional Services Rev. June 2, 2010 \\CC-TERRA\jarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFPI38402 Power Monitoring and Standby Generators Replacernent\Docs related to contract\Contract CI 1 138402 TMAD TA YLOR.doc CITY OF PALO ALTO CONTRACT NO.: Cll138402 IV. INFORMATION TO BE PROVIDED BY THE CITY The Consultant will be given a copy of existing documents as follows: • Relevant drawings ofN.P.P. and other RWQCP. • Any available electric load infonnation. • Any available drawings and manuals of existing generator sets. '":" End of Scope - 17 Professional Services Rev. June 2,2010 \\CC-TERRA \jarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFP138402 Power Monitoring and Standby Generators Replacement\Docs related to contract\Contract CIl138402-TMAD TAYLOR.doc CITY OF PALO ALTO CONTRACT NO.: CII138402 EXHIBIT "B" SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of days specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULT ANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to . proceed. Milestones 1. Design 30% -Develop Design Criteria: 2. Design 90% -Construction Documents: -3. 100% Construction Documents: Completion No. of Weeks FromNTP 6 13 19 4. Deconstruction of Existing Stationary Emergency Generators: 21 5. Permits and Environmental Documents: 6. Services During Bidding: 7. Services During Construction: 18 23 TBD TBD Professional Services Rev. June 2, 2010 \\CC-TERRA\jarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFPI38402 Power Monitoring and Standby Generators Replacement\Docs related to contract\Contract CI 1 138402 TMAD T A YLOR.doc CITY OF PALO ALTO CONTRACT NO.: C11138402 EXHIBIT "C" COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as exhibit C-1 up to the not to exceed budget amount for each task set forth below. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit "A" ("Basic Services") and reimbursable expenses shall not exceed $119,625 .00. CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $131,587.00. Any work perfoimed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY's project manager may approve in writing the transfer of budget amounts betweeg. any of the tasks QI categories listed below provided the total compensation for Basic Services, including reimbursable expenses, does not exceed $119,625.00 and the total .. compensation for Additional Services does not exceed $11,962.00. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1 (Design) Task 2 (Permits and Environmental Documents) Task 3 $51,000 $14,750 $17,125 (Deconstruction of Existing Standby Generators) Task 4 $8,700 (Services During Bidding) TaskS $24,050 (Services During Construction) Sub..:.total Basic Services $115,625 Reimbursable Expenses $4,000 Total Basic Services and Reimbursable expenses $119,625 Additional Services (Not to Exceed) $11,962 19 Professional Services Rev. June 2, 2010 \\CC-TERRA \jarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFPI38402 Power Monitoring and Standby Generators Replacement\Docs related to contract\Contract C11138402 TMAD T A YLOR.doc CITY OF PALO ALTO CONTRACT NO.: Cll138402 Maximum Total Compensation $131,587 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto's policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, third-party reproduction service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $1,000.00 shall be approved in advance by the CITY's project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY's project manager's request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT's proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-l. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY's project manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement Work required because the following conditions are not satisfied or are exceeded shall be considered as additional services: (i) Detail engineering and construction bid packages to put: (a) four new standby generators on common bus/local grid, or (b) four new plus three existing standby generators on common bus/local grid; (ii) Attending more than four (4) meetings with regulatory agencies, such as BAAQMD, CARB, etc. 20 Professional Services Rev. June 2, 2010 \\CC-TERRA \jarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFPI38402 Power Monitoring and Standby Generators Replacement\Docs related to contract\Contract C 11138402 TMAD T A YLOR.doc CITY OF PALO ALTO CONTRACT NO.: Cll138402 EXHIBIT "C-l" HOURLY RATE SCHEDULE POSITION TMAD TAYLOR &; GAINES Principal Project Manager Project Senior Engineer Construction Administrator Engineer Designer CADD Operator Word Processor/Clerical HKIT ARCIDTECTS Principal-in-charge Project Architect Senior Specification ResearchlWriter Draftsperson O'CONNOR CONSTRUCTION MANAGEMENT, INC. Senior Estimator Constructability Reviewer 21 HOURLY RATE $198 $175 $155 $135 $135 $120 $85 $65 $175 $128 $135 $85 $150 $145 Professional Services Rev June 2,2010 \\CC-TERRA\jarreoIIPURCHDOC\SAP Bids and Proposals\RFP\RFP138402 Power Monitoring and Standby Generators Replacement\Docs related to contract\Contract C 11138402 TMAD T A YLOR.doc CITY OF PALO ALTO CONTRACT NO.: Cll138402 EXHIBIT "D" INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST'S KEY RATING OF A-:VII, OR IDGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. . AWARD IS CONTINGENT ON COMPLIANCE WITH CITY'S INSURANCE REQUIREMENTS, AS SPECIFIED BELOW: MINIMUM LIMITS REQUIRED TYPE OF COVERAGE REQUIREMENT EACH YES YES YES YES YES YES OCCURRENCE AGGREGATE WORKER'S COMPENSATION STATUTORY EMPLOYER'S LIABILITY STATUTORY BODlL 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 DAMAGE $1,000,000 $1,000,000 LIABILITY COMBINED. BODILY INJURY $1,000,000 $1,000,000 -EACH PERSON $1,000,000 $1,000,000 -EACH OCCURRENCE $1,000,000 $1,000,000 AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED PROPERTY DAMAGE $1,000,000 $1,000,000 -----.- BODILY INJURY AND PROPERTY $1,000,000 $1,000,000 DAMAGE, COMBINED PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $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 NOTONL Y CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL INSUREDS" 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 22 Professional Services Rev June 2, 2010 \\CC-TERRA ~arreol\PURCHDOC\SAP Bids and Proposals\RFP\RFPI38402 Power Monitoring and Standby Generators Replacement\Docs related to contract\Contract C 11138402 TMAD T A YLOR.doc CITY OF PALO ALTO CONTRACT NO.: Cll138402 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 PREMlUM, 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 (1 0) 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 23 Professional Services Rev June 2, 2010 \\CC-TERRA~arreol\PURCHDOC\SAP Bids and Proposals\RFP\RFP138402 Power Monitoring and Standby Generators Repiacement\Docs related to contract\Contract Cll138402 TMAD TAYLOR.doc TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE: DECEMBER 6, 2010 CMR:439:10 REPORT TYPE: CONSENT SUBJECT: Approval of Contract with KP A Group, Inc., in the amount of $125,888 for Design Services for the Municipal Services Center Improvements Project -Capital ImprovementProject PF-05002 RECOMMENDATION~" Staff recommends that Council approve and authorize the City Manager or his designee to execute the attached contract with KP A Group, Inc., (Attachment A) in the amount of $112,400 for design services fees and $13,488 for additional services for a total not to exceed amount of $125,888. . BACKGROUND The Municipal Services Center (MSC), constructed in 1965, functions as the operational headquarters for the Public Works and Utilities departments. The MSC houses all in-house construction crews and equipment, the maintenance facility for the City's fleet, a fueling station, and the City'S supply warehouse. The original lighting, mechanical, and electrical equipment at the Municipal Service Center is outdated and inefficient. Various remodels have occurred in the &dministrative and shop areas resulting in added 108.d to the mechanical and electrical systems in the buildings. Business use of many areas has changed over the years without adequate upgrades to the building systems and the systems no longer adequately support the current operation at this site. The alternatives to such upgrade/replacement would be the continued use of such equipment, leading to further wear and tear, and eventual breakdown and shutoff of multiple areas in each building. Since the proposed work is quite extensive the use of a general contractor, rather than City employees, would prove to be beneficial both in costs and labor. DISCUSSION The work to be performed under the contract is for design of the upgrade and/or replacement of rapidly degrading mechanical, electrical, and lighting equipment at all three (3) Municipal Service Center buildings A, B, and C, resulting in the highest efficiency and to meet current Green Building requirements. The Consultant will complete all Design Phase Services within 60 calendar days after issuance of the Notice to Proceed. CMR:439:10 Page 1 of2 ATTACHMENT A CITY OF PALO ALTO CONTRACT NO. Cll135389 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND THE KPA GROUP FOR PROFESSIONAL SERVICES This Agreement is entered into on this 6th day of December, 2010, ("Agreement") by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and THE KP A GROUP, a California corporation, located at One Kaiser Plaza, Suite 445, Oakland, CA 94612 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to improve the mechanical and electrical system of the Municipal Service Center (''Proj ect") and desires to engage a consultant to design, provide construction documents, and -cunstruction administ:l"ation in connection with the Project ("Services~'). -------.-- B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit "A", attached to and made a part of this Agreement. NOW, THEREFORE, in consideration ofthe recitals, covenants, terms, and conditions, this Agreement, the parties agree: .. AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit "A" in accordance with the terms and conditions contained in. this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through completion of the services in accordance with the Schedule of Performance attached as Exhibit "B" unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULT ANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit "B", attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULT ANT 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 Professional Services Rev. June 2,2010 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 CONSULT ANT for performance of the Services described in Exhibit "A", including both payment for professional services and reimbursable expenses, shall not exceed One Hundred Twelve Thousand Four Hundred Dollars ($112,400). ill the event Additional Services are authorized, the total compensation for services and reimbursable expenses shall not exceed Thirteen Thousand Four Hundred Eighty Eight Dollars ($13,488). The applicable rates and schedule of payment are set out in Exhibit "C-I ", entitled "HOURLY RATE SCHEDULE," which is attached to and made a part of this Agreement. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit "c" . CONSULTANT shall not receive any compensation for Additional Services perfonned without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described in Exhibit "A" . . SECTION 5. INYOICES .. In order to~request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable . expenses), based upon the CONSULTANT's billing rates (set forth in Exhibit "C-I "). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT's payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City's project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thirty (30) days of receipt. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULT ANT 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.liiufficient skill and experience to perform the Services assigned to them. CONSULT ANT represents that it, its employees and subconsultants, if permitted, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the services to be furnished by CONSULTANT under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar 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. CONSULT ANT shall submit drawings and calculations to the City for Plan Check and shall respond to Plan Check comments from the City. Professional Services Rev. June 2,2010 \\Cc-terra\Shared\ASD\PURCH\SOUCITA TIONS\CURRENT BUYER-CM FOLDERS\UTIUTIES -CAROL YNN\RFPs\135389 MSC Improvements\FINALCONTRACT\Cl 1 135389.KPA Group.doc SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to CITY, any and all errors, omissions, or ambiguities in the work product submitted to CITY, provided CITY gives notice to CONSULTANT. If CONSUL T ANT has prepared plans and specifications or other design documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of construction of the Project. This obligation shall survive termination ofthe Agreement. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. Ifthe total estimated construction cost at any submittal exceeds ten percent (10%) of the CITY's stated construction budget, CONSULT ANT shall make recommendations to the CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractoLandnot an agent or employee of the CITY. CONSULTANT will be responsible for employing or engaging all persons necessary to perform the services. All contractors and employees of CONSULTANT are deemed to be under CONSULTANT'S exclusive direction and control. CONSULTANT shall be responsible for their performance. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULT ANT 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 ofthe city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager or designee. CONSULTANT shall be responsible for directing the work of any sub consultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a sub consultant. CONSULTANT shall change or add subconsultants only with the prior approval of the city manager or his designee. Any communications with sub consultants shall be through CONSULTANT. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Mathew Inadomi as the Proj ect Manager to have supervisory responsibility for the performance, progress, and execution of the Services to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key Professional Services Rev. June 2, 2010 \\Cc-terra\shared\ASD\PURCH\SOLICITA TIONS\CURRENT BUYER-CM FOLDERS\UTILITIES -CAROL YNN\RFPs\135389 MSC Improvements\FINAL.CONTRACT\Cl 1 135389.KPA Group.doc personnel for any reason, the appointment of a substitute project director and the assignment of any keynew or replacement personnel will be subject to the prior written approval ofthe 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 Richard Zolezzi, Public Works Department, Facilities Division, 3201 East Bayshore Road, Palo Alto, CA 94303, Telephone (650)496-6920. 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 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual .~ lllJ>perty rights in favor of the CITY.N either CONSUL T ANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT 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 permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an "Indemnified Party") from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements ("Claims") that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT's services and duties,by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. Professional Services Rev. June 2, 2010 \\Cc-terra\shared\ASD\PURCH\SOLICITA TIONS\CURRENT BUYER-CM FOLDERS\UTILITIES -CAROL YNN\RFPs\135389 MSC IrnprovernentsIFINAL.CONTRACT\CII135389.KPA Group.doc SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or ofthe 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 sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required h~reunder shall be provided through carriers with AM Best's Key Rating Guide ratings of A-:Vll or higher which are licensed or authorized to transact insurance business in the State of California. Any and.all contractors of CONSULTANT _re1.ained_ to perf.orm.B_ervices under this Agreement will obtain and maintain,_in full force_and".effect during the term of this Agreement, similar insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY's Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification, CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY's Purchasing Manager during the entire term of this Agreement. ,18.4. The procuring of such required policy or polici~.s of insurance will not be construed to limit CONSULT ANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, mc1uding 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 of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) 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 tenninate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereofto CITY, but only in the event of a Professional Services .f" Rev. June 2,2010 \\Cc-terra\Shared\ASD\PURcmsOLICITA TIONS\CURRENT BUYER-CM FOLDERS\UTILITIES -CAROL YNN\RFPs\135389 MSC Improvernents\FINAL.CONTRACT\CI1135389.KPA Group.doc r substantial failure ofperfonnance by CITY. 19.3. Upon such suspension or tennination, CONSULTANT shall deliver to the . City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to \ CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or tennination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT's services which are of direct and immediate benefit to CITY as such detennination may be made by the City Manager acting in the reasonable exercise ofhislher discretion. The following Sections will survive any expiration or tennination of this Agreement: 14, 15, 16, 19.4,20, and 25. _____ _ ... _-)95. __ No llayment, partiaLpayment,acceptance, or partiaLacceptance_by CITYwill operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 / Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the perfonnance of the Services. 21.2. CONSULTANT further covenants that, in the perfonnance 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 officer 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 ofCalifomia. Professional Services Rev. June 2,2010 \\Cc-terra\Shared\ASD\PURCH\sOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\UTILITIES -CAROL YNN\RFPs\135389 MSC Improvements\FINAL.CONTRACT\Cl 1 135389.KPA Group.doc 21.3. If the Project Manager determines that CONSULTANT is a "Consultant" as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate fmancial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 230.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because ofthe race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status,familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 230.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 230.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REOIDREMENTS. CONSULTANT shall comply with the City's Environmentally Preferred ~-Ur-Ghasing-,policies~which are available -at the City' s-PurchasingDepartment, ,incorporated hy reference and may be amended from time to time. CONSULT ANT 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 compo sting 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, and public education materials, shall be double-sided and printed on a minimum of30% 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 of30% or greater post-consumer material 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 subj ect to the fiscal provisions of the Charter ofthe City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence Professional Services Rev. June 2, 2010 \\Cc-terra\Shared\ASD\PURCH\sOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\UTILITIES -CAROL YNN\RFPs\135389 MSC Improvements\FINAL.CONTRACT\Cl 1 135389.KPA Group.doc in the event of a conflict with any other covenant, term, condition, or provision ofthis 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 att~rneys 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 instrument, which is signed by the parties. 25.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 25.6. If a court of competent jurisdiction fmds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. . 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 duly executed amendment hereto are by such reference ~corporated 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 defined in California Civil Code section 1798.81.5( d) about a California resident ("Personal Information"), CONsuLTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULT ANT shall not use Personal Information for direct marketing purposes without City's express written consent. 25. 9 The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. II II Professional Services Rev. June 2, 2010 \\Cc-terra\shared\ASD\PURCH\SOLICITA TIONS\CURRENT BUYER-CM FOLDERS\UTILITIES -CAROL YNN\RFPs\135389 MSC Improvements\FINAL.CONTRACT\Cl I 135389.KPA Group.doc EXHIBIT "A" SCOPE OF SERVICES The Consultant's services shall include the following: 1. SCOPE A. General 1. Field investigation of the project site and all existing conditions that may affect the scope of work. Review of Utility Audit, Facility Assessment Report, all available plans and documentation, and the City's Green Building Ordinance requirements. 2. Attend meetings with the City's Project Manager throughout the project as required. 3. --c~,Work~eJ€)selywith~J>1'0je€t-ManageI to-assure the total-project cost does not exceed the project budget. Provide cost estimate at 60% and 100% completion in a fonnat the Consultant deems appropriate. 4. Preparation of construction specifications and pennit drawings. 5. Bid Phase and Construction Administration services. B. Preliminary Design Consultant will review all existing conditions relevant to this project and evaluate the existing mechanical, electrical, and architectural features of the facilities described above. Consultant will develop a list of circuits, transfonners, and panel boxes that require modification to support mechanical and electrical upgrades and reasonable future growth limited to the confines of the existing building.' Consultant will furnish drawings and discuss technical requirements with staff for review and approval at 30% design completion stage. Consultant will design improvements to confonn to all applicable codes, laws and regulations including the Unifonn Building, Mechanical, Electrical and Fire Codes. C. Final Design Consultant will furnish drawings and technical specifications to staff for review and approval at 60% and 100% design completion stage. Final drawings will be suitable for review by the Building Division. Professional Services Rev. June 2, 2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\UTILITIES -CAROL YNN\RFPs\135389 MSC Improvements\FINAL.CONTRACT\Cll135389.KPA Group.doc Consultant will work with the Project Manager to develop a preliminary schedule for the Final Design Scope of Work continued: work that minimizes downtime and disruption of occupants and will be signed off by the Project Manager. Consultant will assist Project Manager to obtain a building permit by furnishing all the necessary drawings and calculations and working with the Planning Department, Building Division, as required. D. Bid Period Consultant will attend a pre-bid conference for interested contractor personnel. Consultant will assist Project Manager in responding to technical questions from prospective bidders during the bid period. E. Construction Administration The Consultant will provide construction administration phase services commencing from the award of the construction contract. Consultant will attend a pre-construction meeting. Consultant will attend bi-weekly construction meetings and will keep meeting minutes. Consultant will review contractor's working schedule and note any slippage in schedule dates or long lead items that will affect the project. Consultant will keep RFI and submittal logs and respond to clarification requests as required ... RFI's are to be responded to by the Consultant within fiv~ .working days to the Contractor and Project Manager. Submittals will be reviewed and returned within five (5) working days. At project completion, contractor will provide "as-built" information for the Consultant to prepare final record drawings. Consultant will verify the data provided before preparing the record drawings. Record drawing will be provided in AutoCAD format on a CD, as well as two (2) sets of hard copy drawings. The services andlor materials furnished under this Agreement shall commence on the date of its execution by CITY, and shall be completed in accordance with Exhibit "B". Consultant will commence bid and construction phase work in accordance with the time schedule set forth in Exhibit "B". In the event that the Project is not completed within the time required through any fault of CONSULTANT, City's City Manager will have the option of extending the time schedule for any period of time. The provision will not preclude the recovery of damages for delay cause by CONSULTANT." Professional Services Rev. June 2, 2010 \\Cc-terra\shared\ASD\PURCH\SOLICITA TIONS\CURRENT BU\, .t'..--\.-M FOLDERS\UTILITIES -CAROL YNN\RFPs\J35389 MSC Improvements\FINAL.CONTRACT\CI1135389.KPA Group.doc 2. FINAL DRAWINGS AND SPECIFICATIONS A. Project Drawings and Specifications Consultant will submit two (2) sets ofproject development drawings and specifications during preliminary and final design phases. Upon completion of the final design the Consultant will submit two (2) hard copies of specifications, one (1) set of specifications Project Drawings and Specifications continued: in electronic version using MS Word format, two (2) sets of drawings for Facilities use, complete set of drawing on CD in AutoCAD version R14 or R2000, and five (5) wet stamped drawings per location to the City Building Division. Specifications will include Division 1. Drawing shall be on a 24" x 36" sheet size with'a scale of 114" = 1'. 3. INFORMATION TO BE PROVIDED BY THE CITY The City will provide the consultant with copies of all applicable record drawings available for --~--'MgC-BuilQing~A,B,-& C:;Gonceptualdesign, and documentation for accessibility ------ improvements completed to date. Professional Services Rev. Iune2, 2010 \\Cc-terra\shared\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\UTILITIES -CAROL YNN\RFPs\135389 MSC Improvements\FINAL.CONTRACT\CII135389.KPA Group.doc EXIDBIT "B" SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed. The Consultant will complete all Design Phase Services within 60 calendar days after issuance of the Notice to Proceed. Consultant shall provide all necessary design services, including architectural design, mechanical, electrical, and structural engineering. Consultant shall also provide conceptual design, final design, construction documents, and cost estimating. This time frame will exclude City review. Construction Administration Services will be scheduled upon award of the construction phase of ~~,Jhe_.project~'I'heduration of this -.period may -take severalmonths to a year or so, and-is dependent on the successful collaboration between the Consultant and the selected general contractor in achieving the best possible results, while still fulfilling the goals of vastly improved buildings with the highest efficiencies. Professional Services Rev. June 2, 2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\UTILITIES -CAROL YNN\RFPs\l35389 MSC Improvements\FINAL.CONTRACT\CI1135389.KPA Group.doc EXHIBIT "C" COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as exhibit C-l up to the not to exceed budget amount for each task set forth below. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit "A" ("Basic Services") and reimbursable expenses shall not exceed $112,400. CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $13,488. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted belo",. ,The CITY's Proj¥~LMMJ.ager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, does not exceed $100 and the total compensation for Additional Services does not exceed $13,488. Basic'Services: The fee for Consultant services for this work will include all Consultant costs necessary for providing the desired services, including sub-consultant costs, reimbursables, meetings, and report generation. Reimbursables will include travel, document reproduction costs, mailing, and courier services. The amount of compensation will be calculated in accordance with the hourly rate schedule set forth in Exhibit "C-l", on a time and materials basis, up to the maximum amount set forth in this Section. The fee for work shall include all consultant costs necessary for providing the services incluCiing sub-consultant costs and reimbursables. The fees of any consultants, who have direct contractual relationships with CONSULTANT, will be approved, in advance, by CITY. CITY reserves the right to refuse payment of such fees, if such prior approval is not obtained by CONSULTANT." Consultant will provide all basic services for a time and materials Not-To-Exceed (NTE) fee of One Hundred Twelve Thousand Four Hundred Dollars ($112,400) including reimbursables: Preliminary Design Final Design Bidding Period Construction Administration Total $27,000 $47,600 $2,800 $35,000 $112,400 Professional Services Rev. June 2, 2010 \\Cc-terra\Shared\ASD\PURCH\SOLICITA TIONS\CURRENT BUYER-CM FOLDERS\UTILITIES -CAROL YNN\RFPs\135389 MSC Improvements\FINAL.CONTRACT\CII135389.KPA Group.doc Sub-total Basic Services $112,400 Total Basic Services and Reimbursable expenses $112,400 Additional Services (Not to Exceed) $13,488 Maximum Total Compensation $125,888 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY's projectmana.ger's request, shaUsubmifa detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT's proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-l. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY's Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement Professional Services Rev. June 2, 2010 \\Cc-lerra\shared\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\UTILITIES -CAROLYNN\RFPs\135389 MSC Improvemenls\FINAL.CONTRACT\Cl I 135389.KPA Group.doc Principal Associate Sr. Engineer/Architect Engineer/Architect/Designer CAD Administration EXHffiIT "C-l" HOURLY RATE SCHEDULE $175-$2051hr $145-$1801hr $ 135-$ 1651hr $95-$1351hr $70-$901hr $60-$801hr Professional Services Rev June 2, 2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\UTILITIES -CAROL YNN\RFPs\135389 MSC Improvements\FINAL.CONTRACT\Cl 1 135389.KPA Group.doc EXHIBIT "D" INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITHAM BEST'S KEY RATING OF A-:VII,ORmGHER,UCENSEDORAUTHORIZEDTOTRANSACTINSURANCEBUSINESSIN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY'S INSURANCE REQUIREMENTS, AS SPECIFIED BELOW: MINIMUM LIMITS REQUIRED TYPE OF COVERAGE REQUIREMENT EACH YES YES YES YES YES YES OCCURRENCE AGGREGATE WORKER'S COMPENSATION STATUTORY EMPLOYER'S LIABILITY STATUTORY BODILY INJURY $1,000,000 $1,000,000 GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE $1,000,000 $1,000,000 PROPERTY DAMAOE BLANKET CONTRACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY DAMAGE $1,000,000 $1,000,000 LIABILITY COMBINED. BODILY INJURY $1,000,000 $1,000,000 -EACH PERSON $1,000,000 $1,000,000 -EACH OCCURRENCE $1,000,000 $1,000,000 -------AUTOMOBILE LIABILITY"INCLlIDING - -"_.". ALL OWNED, HIRED, NON-OWNED PROPERTY DAMAGE $1,000,000 $1,000,000 BODILY INJURY AND PROPERTY $1,000,000 $1,000,000 DAMAGE, COMBINED PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE); AND NEGLIGENT PERFORMANCE ALL DAMAGES $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 ONL Y CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE <;:OVERAGE 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. ll. CONT ACTOR MUST SUBMIT CERTIFICA TES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. Ill. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL INSUREDS" A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONtRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY Professional Services Rev JW1e 2,2010 \\Cc-terra\Shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\UTILITIES -CAROL YNN\RFPs\135389 MSC Improvements\FINAL.CONTRACT\Cll135389.KPA Group.doc (Final Draft as of December 2. 2010) ________________________________________ -::. __ Deleted: November December x, 2010 Roelof van Ark, Chief Executive Officer California High Speed Rail Authority 925 L Street, Suite 1425 Sacramento, Califomia 95814 Subject: Dear Mr. van Ark: Your September 28th, 2010 Letter to Michael J. Scanlon, Executive Director. Peninsula Corridor Joint Powers Board Palo Alto's High Speed Rail Committee has reviewed the above referenced letter (copy attached) and finds it unclear and confusing. We would appreciate clarification on the following: • Your letter seems to contradict your published remarks at the Commonwealth Club of California where you stated that there would be no phased implementation of HSR on the peninsula • You submitted funding requests to the Federal Railroad Administration (FRA) which called for phased implementation of HSR on the peninsula but, at the same time, you indicate in the attached letter that the project environmental impact report (EIR)/environmental impact statement (EIS) must include an analysis of the full build-out of the system.. It is also our understanding that you believe that CHSRA has no power to consider a 2-track only EIRIEIS. Your request for FRA funding thus appears to be disconnected from the required environmental process. How do you reconcile these matters? • Your letter states that freight trains have restricted performance characteristics which make their underground shared usage with HSR technically infeasible. However, the t Peninsula Freight Rail User Group in a letter dated November 3rd states that your comments are not accurate as freight trains can perform well on steeper grades and better than you indicated, and are already operating in conjunction with HSR systems which are covered or in a tunnel • Your letter also states bottlenecks would occur with phased implementation. We definitely agree with this view and indeed it is one of our major concerns with the CHSRA application toe the Federal Railroad Administration (FRA) To leave the existing Caltrain corridor as-is except for a new positive train control system would create horrendous traffic, circulation and emergency access bottlenecks in our community. We have previously sent you a copy of our Chief Transportation Official September 13, 2010 detailed analysis of this problem We look forward to your reply to the concerns raised in this letter. Thank you. Sincerely yours, Patrick Burt Mayor Deleted: 30, 2010 Attachment • California High Speed Rail Authority September 28, 2010 letter to Michael J. Scanlon, Executive Director, Peninsula Corridor Joint Powers Board c: Palo Alto City Council Palo Alto City Manager PCC cities Draft November xx, 2010 Roelof van Ark, Chief Executive Officer California High Speed Rail Authority 925 L Street, Suite 1425 Sacramento, California 95814 Subject: Dear Mr. van Ark: September 28th, 2010 Letter to Michael J. Scanlon, Executive Director, Peninsula Corridor Joint Powers Board Recently the Palo Alto High Speed Rail Committee reviewed the above letter sent by your office to Mr. Scanlon (see attached letter) and finds it unclear and confusing. We would appreCiate clarification on the following please: • This letter seems to contradict your published remarks from your recent speaking engagement at the Commonwealth Club of California where you stated that there would be no phased implementation of HSR on the Peninsula • You have submitted funding requests to the Federal Railroad Administration (FRA) which called for phased implementation of HSR on the Peninsula but you indicate in the attached letter the project environmental impact report (EIR)/environmental impact statement (EIS) must include a full build-out of the system at the same time. It is also our understanding that the CHSRA has no power to consider a 2-track only option in the EIR/EIS. The CHSRA need for HSR funding appears to be disconnected from the required environmental process. How do you reconcile these matters? • The letter does not address ridership issues and there is no study that validates the ridership numbers published by the CHSRA. The CHSRA needs to start with a good ridership study as a baseline to completing a quality EIR/EIS project document. This has not been done and is a fundamental flaw with the process and the information contained in the letter which addresses track options, phasing and the environmental process. The CHSRA cannot do a proper EIR/EIS based on a flawed ridership model • The letter references that freight trains have greatly restricted perfOrmance characteristics compared with modern passenger trains. However, recent Peninsula Freight Rail User Group correspondence dated November 3fd indicates your comments are not accurate as freight trains can perform well on steeper grades and better than the CHSRA has indicated. Freight trains are already operating on rail systems where HSR tracks are covered or are in a tunnel • The letter also states bottlenecks would occur with phased implementation. We definitely agree with this view and indeed it is one of our major concerns with the CHSRA application to the Federal Railroad Administration (FRA). To leave the existing Caltrain corridor as-is except for a new positive train control system would create horrendous traffic, circulation and emergency access bottlenecks in our community. We have previously sent you a copy of our Chief Transportation Official's September 13, 2010 detailed analysis of ~his problem '; We hope that the CHSRA's position on phased implementation is clarified and, if it is a possibility you're considering, how it would be built and how HSR and Caltrain would operate under such a scenario. Thank you. Sincerely yours, Patrick Burt Mayor, City of Palo Alto Attachment • California High Speed Rail Authority September 28,2010 letter to Michael J. Scanlon, Executive Director, Peninsula Corridor Joint Powers Board c: Palo Alto City Council Palo Alto City Manager PCC cities \ .£'1;.' ... ~ The Authority applied for ARRA funds for the HSR project, based on providing ! matching funds which would come from the Prop lA bonds. ~ Based on the aforementioned, it is clear that while phased implementation may be pursued in the interim, the environmental process must be conducted for the full extent of the proposed project, and must satisfy all applicable legal requirements, including those of AB 3034. ~ Furthermore, the environmental review and preliminary engineering (PE) is being funded in part with ARRA funds, and is subject to conditions contained in a Grant/Cooperative Agreement signed with the FRA, which are consistent with the above described approach and requirements. In summary, although phased implementation may be considered for the interim phase, the environmental review needs to be conducted for the full extent of the proposed project. Although the HST program planning process has been underway for some time, we are still early in the process in terms of arriving at final designs, final facility placement and configuration, and project implementation details. The early Alternatives Analysis process the Authority has undertaken serves to obtain public input on the alternatives to be studied in the draft EIR/EIS documents. The Authority staff and consultants are currently working on the draft EIR/EISs that will contain the needed analysis of environmental impacts from all activities that will be part of the project, i.e., the proposed full build out of the HST system, and of mitigation measures to reduce significant effects. This process will inform the ultimate selection of alignments and stations by the Authority Board and the FRA, a'nd also serve to inform future decisions concerning construction phasing and implementation phasing. The term "phasing" can apply to construction, to service and operations, and to step- by-step project implementation~ On the topic of phased implementation, we would like to ensure that no misconception exists. The following clarification may provide a better understanding of some limitations: ~ It ~as been agreed that the Caltrain and the HSR systems will be developed together to benefit both systems, and will offer interoperability and flexibility for the two systems. Thus any re-alignment of the tracks (whether laterally, as an aerial structure or in a trench) would generally include re-alignment for all 4 tracks, given that the full project will require 4 tracks. Building 2 track aerial or 2 track trenches will make no financial sense if 4 tracks are required later. ~ Given the premise stated above, "phasedimplementation" strategies would I need to take into account the effect of leaving certain portions of the alignment untouched, thereby generating "bottlenecks" in such areas in the interim phase. 2 November x, 2010 secretary Ray LaHood, U.S. Department of Transportation Administrator Joseph C. Szabo, U.S. Department ofTransportation 1200 New Jersey Avenue, sE Washington, 0(20590 Dear Secretary LaHood and Administrator Szabo: As you are aware the City of Palo Alto is, and has been, closely following the California High Speed Rail Authority (CHSRA) plans for high speed rail (HsR) in California. The City recently sent a letter to the Federal Railroad Administration (FRA) dated September 30th. The City also recently sent a letter dated November 3'd in which the City made substantive comments on the CHSRA Supplemental Alternatives Analysis Report (SAAR) and previously on September 20th we sent our Resolution of No Confidence to the CHsRA. The Palo Alto HSR Committee met November 4th and discussed additional HSR matters and would like to convey the following to the FRA. We respectively request that the FRA consider the following information and take our suggested actions into consideration with respect to the CHsRA and the overall HSR project here in California: 1. FRA suggests the CHsRA reinstate and reconsider all rail configuration options indentified in the Preliminary Alternatives Analysis Report (PAAR) including, for example, the cut-and-cover trench and tunnel options. The City has consistently conveyed to CHSRA staff and the CHsRA Board that if HsR is to. built, that our communityseeks an alternative that is below ground; 2. FRA formally ask the CHSRA to delay issuance of the project level draft environmental impact report (DEIR)/draft environmental impact statement (DEls) currently scheduled to be released in late December 2010. We see no logical rationale for rushing to complete the DEIR/DEls in late December, particularly now that the CHsRA plans to use its limited FRA funding on a Central Valley segment. At a minimum, the CHSRA, which only plans to give public agencies 45 days to respond to the DEIR/DEIS, should give a longer time period for agencies to respond. We seek a minimum of 90 days. We are requesting this action for several important reasons including: • The recently issued SAAR, released in August of 2010, has many significant techilkal flaws and pieces of missing and inaccurate information. The Palo Alto HsR Committee has already seen the comments and engineering analysis report provided by Hatch Mott MacDonald (Hatch), an engineering design firm doing work for the City. The Hatch report .provides numerous specific issues with the SAAR. For example, Hatch, which is considered an expert in rail tunnel design and engineering, indicated in their analysis that the cost differentials identified by the CHsRA between the various options: at-grade, aerial, and trench are way off; • There are so many issues with the SAAR that the CHSRA is in the process of issuing an addendum document to the SAAR to correct many of the current document deficiencies, local agencies were promised this document weeks ago but have yet to see the new addendum to review it and provide comments; • The issuance of the SAAR addendum is expected sometime in November. It is likely agencies will get the addendum and be asked to provide comments on that document only to have to turn- around and provide comments on the DEIR/DEIS document a few weeks later. This schedule is untenable and unreasonable and does not give locaL agencies time to do an adequate level of analv~is t2. evaluate the potential impacts of HSR on our communities; • Significant issues with the credibility of the CHSRA ridership numbers remain. On November 4, 2010 the California Senate Transportation and Housing Committee, chaired by Senator Alan Lowenthal, held a hearing. The purpose of the hearing was to review the University of Callfornia- Berkeley Institute of Transportation Studies (UCBITS) assessment of the CHSRA ridership forecast. The UCBITS, earlier this year, published an HSR ridership report which was highly critical of the CHSRA ridership numb.ers. The CHSRA has, to our knowledge, never met with UCBITS to discuss the findings in their report. The UCBITS review concluded the ridership numbers are inadequate which has significant implications on: o The number of trains needed per hour; o Where grade separations are needed; o How many tracks are needed; o The viability of the HSR business plan.' • The State of California Office ofThe Inspector General issued a report dated October 27, 2010 written by California Inspector General Laura N. Chick. A key finding in page 8 of that report is: "The Authority is not fully prepared to distribute and monitor ARRA funds. Currently, the Authority does not have funding plans approved by the Director of Finance as required by Proposition lA, which would be used to match ARRA." The FRA is a key funding agency for the California HSR project. Therefore, we are requesting your support , to reinstate key rail configuration options removed between publication of the PAAR and the SAAR, We also seek a delay in the issuance of the DEIR/DEIS past the current December 2010 deadline, This project, for all the above reasons and for those included in the documents previously provided to the FRA, needs a major reset if it is to be done right. We believe the suggestions incorporated herein get this project on a path to being done right. Thank you for your time and consideration, Sincerely yours, Patrick Burt Mayor, City of Palo Alto c: Palo Alto" City Council Palo Alto City Manager Congresswoman Anna Eshoo Senator Alan Lowenthal, Senate Transportation and Housing Committee Chair Senator Joe Simitian, Senate Transportation and Housing Committee Vice Chair Assemblymember Ira Ruskin Peninsula Cities Consortium Roelof van Ark, Chief Executive Officer, California High Speed Rail Authority November x, 2010 The Honorable John Mica Chair, Transportation and Infrastructure Committee House of Representatives 2313 Rayburn House Office Building Washington, DC 20515 Dear Congressman Mica: 3 ( On behalf of the City of Palo Alto, California City Council we want to congratulate you on your new chairmanship of the House of Representatives Transportation and Infrastructure Committee. This is an important committee and we look forward to working with you and your staff on transportation and infrastructure issues that fall under your committee's oversight. Background Palo Alto is located on the San Francisco Peninsula, 32 miles south of San Francisco and 15 miles north of San Jose. The birthplace of Silicon Valley and home to Stanford University, Palo Alto has been the source of many of the innovations which have made the United States the world's leader in technology. Hewlett Packard, Facebook and Tesla are headquartered here. Many other technology companies have facilities here producing jobs that swell Palo Alto's daytime population to nearly twice our night time population of 63,000. Caltrain has provided fixed rail commuter services on the San Francisco Peninsula for nearly 150 years. Its tracks run through the heart of Palo Alto and residential neighborhoods that have long been established adjacent to these tracks. Palo Alto's Caltrain ridership is second only to San Francisco's. A key area we understand the Committee will be reviewing in the coming weeks and months concerns U.S. high speed rail (HSR) projects and funding. The City of Palo Alto has been highly engaged in the review and consideration of the California High Speed Rail Authority (CHSRA) proposals for a HSR system in California. Specifically we have reviewed in detail CHSRA HSR plans for the San Francisco to San Jose corridor. To help assist you and your staff on the current position of our City and HSR we have provided copies of recent actions taken by the Palo Alto City Council. We request consideration of this material as the Committee deliberates future actions with respect to HSR and specifically HSR in California. Thank you for considering this information and again we look forward to working with you, your staff and the Committee. Sincerely yours, Patrick Burt Mayor, City of Palo Alto Attachments: • Palo Alto City Council, November 9, 2010 letter regarding a station in the City • Palo Alto City Council, September 30, 2010 Letter to Transportation Secretary Ray LaHood and to Joseph C. Szabo, Transportation Administrator • Palo Alto City Council, September 20, 2010 No Confidence Resolution c: Palo Alto City Council Palo Alto City Manager TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DATE: Dl~CEMBER 6, 2010 DEPARTMENT: ADMINISTRATIVE SERVICES CMR: 431:10 SUBJECT: Review and Acceptance of R.A. Wiedemann & Associates, Inc. Airport Business Plan; Adoption of Budget Amendment Ordinance to Fund Transition of Palo Alto Airp0l1 control from the County to the City; and Responses to the Finance Committee's Motion on Information and Action Items from October 19, 2010 Meeting RECOMMENDATION Staff recommends that the Council: 1) Approve the Finance Committee's acceptance of the R.A. Wiedemann & Associates, Inc, Airport Business Plan 2) Upon acceptance of Airport Business Plan, approve creation of a new Airport Enterprise Fund and the attached BAO for $300,000 to facilitate the transition of Palo Alto airport control from Santa Clara County to the City 3) Provide direction to staff on utilizing remaining funds of $14,100 in CIP AS09000 for additional transition work by R.A. Wiedemann & Associates 4) Provide feedback on information and other items requested by the Finance Committee on October 19, 2010 BACKGROUND The Council directed staff and provided the resources to develop business plan options for termination of the Palo Alto Airport (PAO) lease prior to 2017, the time at which the County's 50 year lease expires, The intent is for the City to have operational control of PAO earlier than 2017. On October 19,2010, R.A. Wiedemann and Associates (Wiedemal1ll) presented the City of Palo Alto Airport Business Plan and Comm'unity Value Analysis to the City's Finance Committee (Attachment B: CMR: 379:10). Staff continues moving forward with the Council direetion of assuming control over PAO operations earlier than 2017, but before the City can proceed it is important to fully understand the costs and implieations of each option before deciding which option to pursue. On a fundamental policy level, does the City want any direct role in operating the airport either by CMR:43 1:10 Page 1 of6 hiring aU airport management and operations staff or by managing a Fixed Base Operator who operates the airport? Or, does the City desire to contract with a Third Party Operator who, with minimal City oversight, basically runs the airport? According to R. A. Wiedemaun, the City does not have the option of closing the airport given prior acceptance of FAA grants. In his report, Mr. Wiedemann describes a lengthy and complex process for closing the airport and stated that the FAA would likely oppose such a decision given its investments and need for regional facilities. When the City assumes control, the FAA expects it will maintain a safe and fully functional facility. The Business Plan laid out several management options as well as pro-formas showing their results. Overall, each option shows solid net revenues could be realized over the long-term. In the consultant report, the amount of "profit" the City could achieve is dependent upon the business model selected and negotiations with the various parties that would operate or run the airport. A key component of the City realizing "profit," especially prior to a 2017 takeover, is the re-negotiation of existing Fi*ed Base Operator (FBO) contracts or the selection of new FBOs if this business model is pursued. During his presentation to the Finance Committee, Wiedemann was optimistic that given the volume of activity at the airport, the fee structure, and the demographics of the region, the airport could support itself financially and be a vital resource to the overall l)ommunity. Only under dire economic conditions such as a sharp increase in gas prices or a severe decline in infrasuucture, would the airport face significant financial challenges. After listening to Wiedemann's presentation, discussing the Business Plan and the City Manager's Report, the Finance Committee (FC) gave the following direction in its motion: • Accept the Palo Alto Business Plan and Airport Community Value reports by Wiedemann • Direct staff to return to Council on December 6 with a Budget Amendment Ordinance that .establishes a new Airport Enterprise Fund and the resources necessary to progress with finalizing a business plan and a takeover of the Palo Alto airport. The BAO would reflect a loan from the General Fund to the New Enterprise Fund • Direct Staff to return with a precise timetable of events with a schedule as accelerated as reasonably as possible • Provide the Council with the means of creating an Airport Commission • Advise the City on which of the 3 models to move forward with • Explore the methodology for the maximum charges the City's General Fund may legally collect from the Airport Enterprise Fund • Provide an organizational chart as to who will be doing the Staff work and reporting to whom; and • Authorize moving forward expeditiously with Phase II on the Enviromnental Report on the airport. This report u'ansmits the Airport Business Plan for Council consideration and responds to the FC's motion. CMR:431:10 Page 2 of6 DISCUSSION Budget Amendment Ordinance The attached BAO establishes an Airport Enterprise Fund (AEF) and provides the funds to move forward with the transition of the airport to City control. These include: • a Phase II Hazardous Material Analysis estimated at $150,000 • estimated legal expenses of $50,000 • $100,000 for expert support either through a consultant or a temporary staff person to guide the City through the transition process to City control of the airport This seed money will be loaned by the General Fund (GF) to the new AEF. It should be noted that the ' FAA allows a six-year reimbursement window for funds loaned for airport purposes. Thus, repayment of the GF loan depends upon when the City takes over the airport and when it generates a profit. Moreover, City staff believes it is advisable to obtain outside legal counsel on a number of issues including whieh of the above expenses can be reimbursed based on FAA guidelines. Depending upon a variety of factors, staff may need return to Council for additional funding. In addition to the BAO, staff is requesting COlincil approval to utilize remaining funds of $14, I 00 in CIP AS09000 for transition work by Wiedemann. Additional tasks identified by Wiedemann include: • Updated financials for the airport (consultant report is based on data through June 30, 2008) • Information on normal charges (franchise fees, etc.) for enterprise funds. • Further examination of any of the performance options or new variables within any option At a minimum, staff recommends that funds be used for to update Wiedemann's financial analysis and for further examination of the options based on potential new variables or scenarios. Council may wish to provide guidance to staff on new variables or scenarios this evening. Staff believes the additional work suggested by Wiedemann can be most helpful. Timeline It is difficult at this time to develop a "precise" timeline for an airport takeover, especially without the results of the Phase II environmental study, a person with expertise in general aviation airport operations and management on board to guide staff through this complex process, and outside legal advice on moving forward. The following timeline is staff's best and preliminary effort at establishing a timelines. This is subject to change as the process moves forward. January/Feb. 2011 Hire airport expertise either through temporary staffing or consultancy February 20 II Establishment of an Airport Advisory Commission CMR:43 1:10 Page 3 of6 February 20 II March 2011 Apri12011 August 2011 Septembcr 20 II December 2011 Mat'ch 2012 July 2012 Airport Commission Identification of outside legal expertise Begin discussions with county and current FBOs for City control prior to 2017 Phase II Environmental Report completed Present to Council staff" s recommended option for operating the Airport Send out Request for Proposals (if FBO or Third Patty option for management of airport selected) depending upon progress with County negotiations Complete negotiations with County and discussions with FBOs and establish date for City control Completion of hiring of airpOlt personnel if City runs airport or selection of FBO/Third Party to operate airport City assumes control of AiI'port based on successful negotiations Establishing an Airpolt Commission requires, as with all City commissions, the adoption of an ordillance. The ordinance would be codified in the Palo Alto Municipal Code, for example, in Title 2, as Chapter 2.27 "Airport Commission." Staff proposes bringing this ordinance to the Council in February 2011 so the Commission can work with staff on the takeover process. It appears appropriate for the new Mayor and the Council to begin identifying candidates in JanuarylFebruary. Advise the City on Whieh of 3 Business Models to Pursue At this time, staff believes it does not have the knowledge or expertise to recommend one of the 3 models in the Wiedemann report. Although the pros and cons of eaeh model are identified in the Business Plan, it is critical to hire an airpolt expelt who can assist in identifying the optimal model. Staff needs assistance in implementing any of the 3 models such as: evaluating and selecting future airport personnel under the City-run model; assessing the capabilities of FBOs and developing a contract; and selecting a Third Party operator and developing an agreement. Under any of these options, the City would be committed to a long-term operation or contract and it is important to evaluate the best choice with expert advice. Staff recognizes that there are many municipally-run airports, but it proposes to move purposefully to acquire experience ill and knowledge of the general aviation airport business. Explore Methodology for Maximum Charges the City's General Fund Can Legally Mai(c to the Airport Enterprise Fund Until the City Attorney's Office has funding to hire outside legal counsel on this matter, the feasibility of "maximum charges" cannot be determined at this time. Both direct and indirect CMR:431;JO Page 4 Qf6 (e.g., City overhead such as payroll, legal, and human resource support) ean be eharged to the new AEF based on FAA rules. Provide an Organizational Chart Displaying Staffing and Reporting Relationships for Airport Transition Work Currently, the City has numerous and key vacancies in its senior management structure making it difficult to provide the requested chart. The responsibility for managing airports typically lies in a Public Works or an Airport Department. While key positions have been filled on an interim basis, vaeancies and the number of projeets underway in Public Works (e.g., library construction, Infrastructure Blue Ribbon Committee support, Refuse Fund work) do not allow taking on further assignments at this time. In staff's opinion, the primary staffing concern is to hire the expert consultant or personnel needed to move forward with a well-managed takeover. In the meantime, ASD staff will continue to lead the projeet coordinating closely with the City Manager and Attorney's Offices, Public Works and other City departments. It should be noted that considemble in-house staff time is required to move toward City control of the airpOlt. Efforts from tIle City Manager, Deputy City Manager, Economic Development Manager, City Attorney staff, ASD Director, Deputy ASD Director, a Senior Financial Analyst, Public Works Director, Assistant Public Works Director, and other administrative support will be needed. This is time and effort that would otherwise be devoted to existing priorities. Authorize Moving Expeditiously with the Phase II Airport Environmental Report The existing Phase I professional services contract with Northgate Environmental Management Inc. stated that if a Phase II study had to be conducted it could be added to the existing contract. In 2008, the original Request for Proposals (RFP) to procure environmental assessment services included Phase II work at the airport. The Phase II work was removed from the final contmct scope, but it is appropriate to add it back via a contract amendment. To expedite the process as requested by the FC, staff will retum to Council in January to propose a contract amendment and not to conduct an RFP process. If Council approves ilie anlendment, Phase II results can be delivered in April 2011. . RESOURCE IMPACT The attached BAO establishcs a new AEF and includes $300,000 in funding for services (cited above) needed to transition the Airport from Cmmty to City control. A loan will be established from the General Fund to the AEF. The Phase II funding request is for a one-time study, but the consulting/staffing and legal fUnding requestcd in the BAO is for estimated annual expenses. Staff will return to Council in thc annual budget process to identifY any additional or base resources necessary to continue thc airport transition. At tllis time, there is uncertainty as to whether all funds loaned by tlle GF can be repaid with Airport net revenues and, moreover, whether "reimbursable" expenses can be paid within tlle 6 year timeframe required by tlle FAA. POLICY IMPLICA nONS Actions recommended in this report are consistent with previous Council direction. CMR:431:10 Page 5 of6 ENVIRONMENTAL REVIEW A Phase I Environmental Site Assessment has been conducted. The assessment was done 10 detelmine if any hazardous material spills have impacted soil and/or groundwater at PAO. The report concludes that there is sufficient eause to reeommend a Phase II site investigation to evaluate potential soil and groundwater contamination at the Palo Alto AirpOit. ATTACHMENTS Attachment A: Atmchment B: PREPARED BY Approval of a Budget Amendment Ordinance to Fund Transition of Airport Control from the County to the City and Review oflnformation Requested by the Finance Committee CMR;379; 10 "Presentation and Discussion of R.A. Wiedemann and Associates, Inc .... (Excluding Wiedemann Business Plan. For plan please see this link http://www.cityofpaloalto.orgfcivicaffilebankiblobdload.asp?BIQbID=249 16 ) ty Dire tor, Administrative Serviees CITY MANAGER APPROVAL; I . ,;~fA .• (;.p (~ JAMES KEENE >\.v/ Cily Managel'~' ,., ; CMR:431:10 Page 6 ofG Attachment A ORDINANCE NO.XXXX Approval of a Budget Amendment Ordinance to Fund Transi tion of Airport Control from the County to the City and Review of Information Requested by the Finance Committee The Council of the City of Palo Alto does ordain as follows: SECTION 1. The Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 28, 2010 did adopt a budget for fiscal year 2011; and B., On November 13, 2007 (CMR: 418:07), the Council directed staff to begin negotiations with the Santa Clara County on an early termination of the lease between the City and the County for the Palo Alto Airport and to commence work on the items set forth in the staff report (CMR: 418:07), including an airport business plan or evaluation of City options for operating the airport; and C. On October 19, 2010, the Finance Committee was provided with an airport business plan which outlined airport management options (CMR: 379:10); and D. As staff continues to follow Council direction on an early takeover of the airport, it has identified preliminary and substantial financial and staffing commitments for this project; and E. The establishment of an Airport Enterprise Fund and the resources necessary to move forward with a City takeover of the Palo Alto Airport are required; and F. A loan from the General Fund to the Airport Enterprise Fund is needed to provide the necessary funding to transition the airport from county control; and F. Staff has identified an initial need of $300,000 for environmental analysis, legal and other expert support, and personnel costs for the airport transition process; and G. City Council authorization is needed to establish a loan from the General Fund to the Airport Enterprise Fund. H. City Council authorization is needed to establish an Airport Enterprise Fund, and to amend the fiscal year 2011 budget to make an additional appropriation of $300,000 for environmental analysis, legal and other expert support, and personnel costs for the airport transition process; and SECTION 2. The Airport Enterprise Fund is hereby established to account for all financial transactions relating to the Palo Alto Airport. SECTION 3. The sum of Three Hundred Thousand Dollars ($300,000) is hereby loaned and appropriated from the General Fund to the Airport Enterprise Fund for environmental analysis, legal and other expert support, and personnel costs for the airport transition process. The General Fund Budget Stabilization Reserve is only affected to the extent to which the Airport Enterprise Fund is unable to repay the loan. SECTION 4. As specified in Section 2.2S.0S0(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTI0l>L~. As provided in Section 2.04.330 of the Palo Al to Municipal Code, this ordinance shall become effective upon adoption. SECTION 6. An environmental impact assessment (EIA) may be required by the California Environmental Quality Act (CEQA) and will be performed in connection with future Council decisions regarding the Palo Alto Airport. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: APPROVED: City Clerk Mayor APPROVED AS TO E'ORM: Senior Asst. City Attorney City Manager Director of Administrative Services TO: ATTN: . FROM: DATE: ATTACHMENTB City of Palo Alto City Manager's Report HONORABLE CITY COUNCIL FINANCE COMMITTEE CITY MANAGER OCTOBER 19,2010 DEPARTMENT: ADMINISTRATIVE SERVICES CMR: 379:10 SUBJECT: Presentation and Discussion of R. A. Wiedemann & Associates City of Palo Alto Airport Business Plan Options lind Community Valuation Analysis; Request for Council Input and Direction on Options; and Formation of an Airport Advisory Committee EXECUTIVE SUMMARY The Council directed staff and provided the resources to develop business plan options for termination of the Palo Alto Airport (PAO) lease prior to 2017, the time at which the County's 50 year lease expires. The intent is for the City to have operational control of PAO earlier than 2017. The attached report from R. A. Wiedemann and Associates (Report) lays out several management options as well as pro-formas showing their results. Overall, each option shows solid net revenues over the long-term. The results show the potential to pay back some or all of General Fund "seed" money necessary to transition the airport from county control and to reinvest in the airport's infrastructure: Staff continues moving forward with the Council direction of assuming control over PAO operations earlier than 2017, but before the City can proceed it is important to fully understand the costs and implications of each option before deciding which option to pursue. On a fundamental policy level, does the City want any direct role in operating the airport either by hiring all airport management and operations staff or by managing a Fixed Base Operator who operates the airport? Or, does the City desire to contract with a Third Party Operator who, with minimal City oversight, basically runs the airport? This is a critical question whieh staff wants to explore fUIther and for which Council input is requested. To begin the complex process of pursuing any of the airport options in the Report, there will he a need for expertise to evaluate each option further and to chart a prudent course of action. At this time, it is estimated roughly that $500,000 in resources are needed to hire such experts. In addition, considerable in-house staff time is required to set the process in motion and to guide it to fruition. Based on Council input, staff proposes to return with a Budget Amendment CMR:379:10 Page I of II Ordinance (BAO) for funding and to establish an Airport Enterprise Fund. Among other costs, the BAO will fund an environmental site investigation to determine if there is any contaminated soil or groundwater at the Airport that requires clean-up prior to the County and FBO lease expirations. In addition, establishment of an AirpOlt Advisory Committee is recommended as the City moves toward managing the airport. Staff estimates that the process could take a minimum of two to three years based on discussions with other agencies and feedback from R. A. Wiedemann and Associates. RECOMMENDATION Staff recommends that the Council: 1) Provide input on and accept the "Palo Alto Airport Business Plan" and "Airport Community Value" reports by R.A. Wiedemann & Associates 2) Provide input on airport management options outlined in the Business Plan and direction on which options to further evaluate in order to continue with Council direction to take over the airport early. 3) Direct staff to return to Council with a Budget Amendment Ordinance that establishes a new Airport Enterprise Fund and the resources necessary to progress with finalizing a business plan and a takeover of the Palo Alto airport. The BAO would reflect a loan from the General Fund to the new Enterprise Fund. 4) Begin exploration of forming an Airport Commission comprised of users, businesspeople, and other appropriate members to advise Council BACKGROUND In 1967 the City and the County entered into a 50-year lease for management of the Palo Alto Airport (P AO). The lease agreement both with the County and the current Fixed Base Operators (FBO) expires in 2017. In 2006, a County consultant recommended returning airport management back to the City before the lease expired in 2017. At that time, it was believed the PAO was a drain on County resources and the County was not recouping the costs of its capital investments. Indications from the County that it would only perform basic, safety related maintenance improvements was of considerable concern given the condition of the Airport's aging infrastructure. Following reports by the City Auditor and the Palo Alto Airport Working Group (PAA WG), which contested the financial and other conclusions by the County, Couneil directed staff to begin negotiations with the County of Santa Clara (County) to terminate its lease earlier than 2017 and to commence work on the action and information items raised by Council on November 13, 2007. These included: • Preparation of an airport business plan or evaluation of City options for operating the airport • Preparation of a community valuation analysis to determine economic value of airpOit to the City and community CMR:379: I 0 Page 2 of II • Preparation of semi-annual progress reports on negotiation status with County On December 8, 2008 (CMR: 440:08), the Council adopted a PAO Mission Statement proposed by the Palo Alto Airport Joint Community Relations Committee (PAAJCRC) and reviewed and accepted a proposal from R.A. Wiedemann & Associates for preparation of a Palo Alto Airport Business Plan and Community Value Analysis. Council passed a Budget Amendment Ordinance which, together with a prior appropriation, authorized the City Manager to execute a $105,000 contract with R.A. Wiedemann to develop a PAO business plan and community valuation analysis. DISCUSSION The primary objectives of this City Manager Report (CMR) is to: summarize the business plan options in the Wiedemann report (Repo11); outline the airport community valuation analysis; provide staff's recommendation on next steps; obtain Council feedback and direction both on next steps and airport management options; and to update Council on any other progress on negotiations with the County since the last progress report. As staff continues to follow Council direction on an early takeover of the airport, it has identified preliminary and substantial financial and staffing commitments for this project. These costs would be advanced by a financially challenged General Fund. Although staff believes advanced funds can be repaid, outside legal advice will be required to determine which costs can be reimbursed as the airport operation generates net revenues over time. The transition and startup expenses identified thus far include: 1. Phase II Environmental Site Investigation estimated at $150,000 2. AitpOlt, legal and other expert support at an estimated cost of $3 50,000 3. Potential expenses to address unknown but urgent airport operational or capital needs In addition to the above, extensive staff time and resources that would otherwise be devoted to existing priorities will be required. Efforts and involvement from the City Manager, Deputy City Manager, Economic Development Manager, City Attorney staff, ASD Director, Deputy ASD Director, a Senior Financial Analyst, Public Works Director, Assistant Public Director, other Public Works staff, and other administrative support are needed to implement a takeover. The City staff has no expertise in this arena, so knowledgeable support to staff is a necessity both to evaluate the management options in this report and to start a transition process. It is staff's intent to return to Council with a BAO that establishes an Airport Enterprise Fund and provides funding to move forward with control of airport operations. Wiedemann Business Plan Options Report The Report examines the feasibility and potential options for transferring the direct control, management, and operation ofPAO from the County to the City carly or upon expiration of the airport lease in 2017. Understanding the City'S concern about potentially a~suming an asset that could absorb significant City resources, the report considers potential management structure options and their projected pro-forma financial performance prior to and following the lease expiration in 20]7. Key issues are addressed including: potential financial outcomes, a lack of City staff resources and expertise to operate PAO, the environmental sensitivity of the airport's CMR:379:10 Page3 of 1l location, construction constraints due to the Baylands Master Plan, existing subleases, aging facilities, Palo Alto community relations and economic impact, and the competitive market position ofPAO relative to other airports in the area. The Rep0l1's financial projections verifies, to varying extents, the conclusions in both the City Auditor and PAA WG reports that the PAO has the potential to support itself financially over the long-term, presuming Ihat all assumptions or variables in the report come to fruition. R. A. Wiedemann and Associates (Wiedemann) was asked to detennine the financial viability of the airport from 2012 to 2017 and to determine if it could remain profitable, under varying management structures, for 20 years thereafter. Using historical revenue and expense information dating back to 2000, the consultant developed several "baseline" forecasts for operation of the airport through 2017. These forecasts assume staffing levels that are 'consistent with those currently maintained by the county. The report then builds upon these "baseline forecasts" to evaluate alternative business models for operating the airport. Because there are multiple and detailed scenarios that build on a previous scenario, readers of this CMR are encouraged to examine the consultant report (Attachment A). A brief synopsis of each relevant scenario follows. It is important to notG that the "seed" expenses cited above is not included in the models or forecasts in the report nor is there any consideration of potential payback of the County'S outstanding advance. It should be noted, however, that the City does not recognize the advance as a City obligation. Naturally, these expenses would offset the net revenues shown in the report's pro-formas and the results discussed below. Baseline Forecast for City or County Operation of PAO ·through 2017 (p. 3S of Report, Table ll) Based on relatively conservative revenue and expense gro'Nth assumptions (page 35) as well as continuing current FBO leases, the report concludes that between 2012 and 2017, the County or City would have a net deficit of $129,200. The report shows that operating income would be positive over this period, but that after an annual $50,000 contribution to matching capital or other capital needs a cumulative deficit would result. The author states, "This projection can be considered the worst case scenario for the City or County operation of the Airport -continually increasing costs and very slow revenue growth." TIle report then goes on to assess a takeover by the City by July 2011 and concludes that the City could perform "slightly better" than the County since it would not have to pay for all of the overhead personnel the County cun-entiy allocates. For example, the County currently allocates and recoups the cost of noise management staff that Wiedemann states the City would not need to support. Baseline :Forecast for City Operation of P AO from 2018 -2037 (page 36-37, Table 12) Addressing the 20 year period following 2017, the report finds potentially more robust net revenues, especially as a consequence of the FHO leases expiring. In 2008, the current, two FBO's only paid $134,900 in aJillual rent, but it is estimated, based on the revenue and expenses of FBO's at other airports, that the FHO's netted more than $1 million in revenue from their subtenants. Wiedemarm confirms this estimate by including revenue streams from FBO tie- down spaces and hangar and office rentals as income to the City. The Report does recognize additional City costs to take the place of current FBO workload. For this scenario, the report CMR:379:10 Page 4 of II projects that limn 2018 through 2037, the PAO could generate $13.7 million in sUll'lus revenues after accounting for capital matching and other necessary capital improvements. The Federal Aviation Administration (FAA) has indicated verbally that the old 50 year lease with the current FBOs is inappropriate and borders on a gift of public funds. They recommend that leases of shorter duration, e.g., 15-20 years, be implemented and the FAA intends to monitor these contracts. Once again, the financial projections above do not incorporate "seed" expenses, consideration of County capital "advances," or any exceptional or unexpected major capital expenses. Although this scenario portrays healthy surpluses that could cover the "seed" loan and other unanticipated expenses, it is critical to note that as a condition.of having accepted FAA grants that all revenue generated at PAO must be funneled back into the PAO with the exception of paying City overhead and other appropriate expenses (e.g., legal, payroll, and human resource). Hence, the General Fund cannot "profit" from airport operations. This guideline applies to all of the options discussed below. This option basically represents the City and its staff running the airport. It presumes City staff will have future managerial, fixed base operator, and maintenance expertise to run the aill'ort personnel. The alternatives that follow are variations on the assumptions for this model or substitutions for part or the entire City staffing model. Discussion and Analysis of Alternative Operational and Management Options After evaluating the City run "baseline" scenarios pre and post 2017, the report considers several different operational and management structures for PAO. Allhough the report does discuss a scenario where the County continue's to manage the airport after 2017 that could result in additional City revenues, this CMR focuses on those alternatives where the City takes a proaetive role in managing or hiring management for the airport. These options include: A. City Operation of the Airport In order for the City to operate the aill'ort, the consultant recommends hiring an airport manager several months in advance of taking possession. Then, an assistant manager and a part-time City worker would be hired when the City assumes control. The airport operation would become an Enterprise Fund and an Advisory Group, comprised of knowledgeable users, business leaders and community members to the Council, would be formed B. Joint FBO and City Operation orthe Airport In this scenario, the City would contract with a Fixed Base Operator to provide day-to- day management of the airport. Duties would include daily inspections, minor maintenance, apron and ramp management, reports to Council, and interaction with FAA Control Tower operations. Basically, the Operator would substitute for some of the staff hired by the City under Scenario A (above). C. Third Party Management This option could tal<e a variety of forms, but essentially the City would completely turn over operations and management to a third, for profit party. The City would retain CMR:379:10 Page 5 of II fundamental ownership of the land and would provide, for example, a long-term lease so that the third party could invest in and profit from operations, The City would have minimal control over operations other than to ensure quality service to airport users and make sure the Third Party is performing as expected. The consultant says the four main benefits of this option include: capital infusion, efficiency gains, revenue gains for the Airport Enterprise Fund, and an oppoliunity to reinvent the airport, In addition, the City would require "measureable performance requirements that can be specified, with appropriate penalties for failure to meet them," The Report provides the pros and cons of each option as follows: I·=-~~~~~m~able 18 -Summal), of Pros and Cons for All Options mm' __ ' 1-'1 P::.::.ro:...:s ___ ---:"'~'" ' I Cons """'--:-_,---__ City Ollcration of the Airport (Baseline City Manal!ement Options) "' __ I) Greater control of all factors, relative to I) Responsibility for all finances and management of County control of Airport the Airport 2) Positive net revenues over long term 2) Must deal with all staffing issues. 3) Monitor and control investment in capital J) Airport can become political issue assets. 4) Potential financial risk 4) Ability to respoml to Airport tisers and resident neigh bors, ~mmmm AdditiolllllHanger/Apron 1 J) Highest revenue stream of all options I l~)~p""ot:;;e:":nt"'ja";lC-'c"'h'-aJ-lg-e-o"Cf:-A-;-,:-'r-po-rt-:-v:-ie-w-s-:'h-e-:'d----~--I c-::7 ............................ ;-;----:~~~~~- City Plus FI1QlVIanagement I) Lower labor costs 2) Higher net revenues relative to 3,d Party Management and Baseline Projections 3) FBO responsibility for technical aviatinn _______ issues I) Less control of day-to-day operation management of Airport, and _~---:=c-~~_~--cTc:h:it:<l PartyJ\llll.::n=ag"'e'-'m.::.e=n"-'t'--~~~c-~-:-_~-c-_--m- 1) Indirect responsibility for operating the: I) Least amount of control over day-to-day operation Airport, and management of Airport. 2) Airport operates as a profit center, 2) Dependent upon financial stability and strength of providing periodic payments to City, 3'· Party Operator, 3) May represent lowest financial risk of all OPtions, City management of PAO with additional hangars/apron from 2012 -2017 and from 2018 - 2037 (Tables 13 and 14 on pages 43 and 44, respectively) Moving on to the projected financial results for each option, the Report ccnsiders building incremental or new hangars. Wiedemann is acutely aware of the restrictions of the Baylands Master Plan on intensification of use and includes this scenario only to assess the "eccnomic value" future operations could yield, The additional hangars could be built in areas that are not environmentally sensitive, This model builds upon the "Baseline Forecast for City Operation of PAO from 2018 through 2037" described above, but adds additional revenue and expense associated with building and maintaining new.hangars. CMR:379:10 Page 6 of 11 To add new tie-downs and hangars in this "Iandside" option, the Enterprise Fund would issue $4.55 million in revenue bonds for 20 years at an estimated 5% interest rate. Once again using conservative revenue and expense assumptions, the Report presents pro-formas for the periods 2012 through 2017 and for 2018 through 2037. For the period 2012 through 2017, the projection shows cumulative net results of negative $43,800, but for the period 2018 through 2037 the cumulative net results show a robust $20.5 million. This option departs from the Baylands Master Plan because it assumes additional hangars. The Master Plan specifically prohibits any intensification of use and would need to be amended to allow this option to be implemented. City Plus FBO Management Option: 2018 -2037 (page 45, Table 15) For this option the Report states it "is only slightly different from the complete City management of the Airport." Day-to-day operation of the airport would fall to the FBO and the City would have overall control of the airport and supply the legal and other administrative services that complement those of the FBO. This scenario does not contain any new tie-downs or hangars and includes the estimated cost of an FBO. One assumption for this scenario that will require further analysis is that the FBO flat management fee is less. than the assumed salaries and benefits for a City run operation. The author acknowledges that an RFP process and eventual FBO contract could change the assumed FBO costs. For the period 2018-2037, the pro-forma for this option shows cumulative net revenues of$22.6 million. Based on the financial results of this scenario, staff believes currently that further investigation is merited. Third Party Operation of PAO Option: 2012 -2017 and 2018 -2037 (pages 46-47, Table 16) There are a number of formats for third party operation of the airport and they can range from "either management only or an all-inclusive master lease of the entire airport." In the Report, the former is assumed for the 2012-17 period. The third party would manage airport operations and procedures, manage property and assets, do maintenance and repairs, do tenant administration, and other operational tasks. The City would be responsible for making all policy and leasing decisions. For their work, the third party would likely be paid for their costs as well as a percentage of gross airport revenues. The percentage, per the Report, is likely to be in the 5-10% range. In this option, the Report estimates that for the years 2012-2018, the cumulative net revenues would equal $816,200. For the period 2018-2037, the Report assumes in its forecast a third party master lease for the entire Airport which translates into very little involvement by the City. Building upon the City plus FBO pro forma, the consultant's third party lease scenario assumes that the Airport Enterprise Fund could expect between 70 to 80% of net revenues. By assuming a 75% retum, the pro-forma results in total third party payments to the City's Enterprise Fund of $16.98 million during 2018-2037. The Report states that a lease of around 25 years would be expected by the third party in order to recoup its investments in the airport. The lease would have to be approved by the FAA and State Aeronautics. The length of the lease could be an issue for the FAA given its reservations about long-term leases so this options merits further investigation. CMR:379:IO Page 7 of 11 SummHrY of Pro-FormHs and Consultant Conclusions Table 17 from the Report (page 48) summarizes the financial forecasts for each of the options discussed above: Table 17 -SummHry of Financial Performance Options: Total Net Revenues MANAGEMENT 2012-2017 2018-2037 Total Net Revenues OPTION Baseline City -$129,200 $13,678,500 $13,549,300 Management Additional -$43,800 $20,500,700 $20,456,900 Hangar/Apron City Plus FBO N/A $22,646,400 $22,646,400 Management Third Party $816,200 $16,984,800 $17,801,000 Management The Report concludes that the "City Plus FBO Management Option produces the greatest surplus of net revenues over the entire period" while "the Baseline City Management Option has the lowest total net revenues of the four options. The reason for the significant revenue differences between the City Management and City Plus FBO option is that the Consultant projects considerably less labor cost under the FBO scenario over time. Differences in outcomes between the FBO and Third Party options result from the Third Party taking a greater share of revenues to compensate them for costs and risks for assuming the entire airpOlt operation. The variance between City and Third Party results from lower Third Party labor costs over time. From the pro-formas, it would appear that all options have sufficient revenues to cover the General Fund "seed" funding/loan as well as any other moderate, unanticipated operating or capital expenses. In the "Recommended Options" section, the Report proposes two options: City and Third Party Management. These scenarios provide clear paths: either the City maintains complete control or delegates responsibility to a third party with relatively minimal oversight. Of the two options recommended in the report, the Third Party option results in better financial returns than the City run option. It should be noted that in all scenarios, the City is ultimately held responsible by the FAA for conditions at the airport. The FBO option was not recommended because of potential FBO conflict of interest issues and the fact that the City would be responsible for all capital improvements while the FBO operated the airport. In addition, this model could lead to overlapping management and potential discord unless roles and responsibilities were clearly defined. Nonetheless, because this option yields the highest financial results, staff believes it is worthy of further analysis. After making the recommendations, the Report describes the implementation steps for each of the two options. This is important information that sets the stage for a timetable with tasks to achieve the City'S goal. CMR:379:IO Page 8 of II Airport Community Value In Appendix B of the Report, the consultant goes beyond income statement projections for the airport management options and studies the economic benefit of the PAO, Using a software model, IMPLAN, to assess the impacts of expenditures by Airport employees, users, travelers an estimate of economic value is generated, Using a variety of "inputs" or data such as user spending on airplanes and employment at PAO, the IMPLAN model calculatcs dircct and "induced" cconomic impacts. It is estimated that the Airport produces $64.3 million (including $22.4 million in wage income) in economic benefits to Palo Alto and surrounding communities, The model caleulates that the airport supports 307 jobs. The $64.3 million does not include income, personal property and possessory interest taxes that are paid to the State, County and local jurisdictions. The Report states that over $3.7 million in State and local taxes is generated annuaJ] y, Semi-annual Progress Report on Negotiation Status witb County City and County staff have had periodic meetings to discuss the transition to City control. Discussions will continue to a more productive level after the completion of this report and Council direction is given, StaffRec'ommendation and Comments Moving toward a takeover of the airport will require a significant effort by statT and reliance on numerous outside experts such as outside legal counsel. This is the case whether the City assumes control prior to or when the County lease expires, It also will be the case if the City hires an FBO or Third Party, A most preliminary and perhaps aggressive estimate is that it will take a minimum of 2-3 years to implement City oversight. Staff's understanding is that this process must be thought through carefully and sequentially so as to facilitate the process, work through existing relationships, and maximize financial return to the Airport Enterprise. Negotiations and a contract with an FBO or a Third Party Operator will take considerable time and due diligence, It is recommended that an expert staff member or consultant be hired to work through the options in the Report and to guide the City toward an eventual takeover. In all of the above scenarios, the City will be responsible for submitting funding requests to the FAA. This CMR has primarily concentrated on the financial results of the Consultant's report, There are non-financial issues that are important to consider and addrcss. A fundamental policy question is how much involvement in and control of the airport does thc City want, particularly since it lacks expertise in this arena and since any net revenues, after paying for any City overhead support, must be invested in airport improvements? Unless the City is prepared to repay FAA grant monies and decouple hom FAA support (which a complicated process), there does not appear to be a direct return to the General Fund. The essential question is which management model is most efficient and effective in serving users, maintaining an important asset, and minimizing any impact on the General Fund? A subsidiary question to City staff running the airport is how nimble and entrepreneurial will they be in contrast to an FBO or Third Party Manager who is familiar with facility maintenance, dealing with the FAA, accustomed to delivering a unique customer service, and who has the incentives to perform weI!? On the other hand, it should be noted that most California airports are managed by public agencies with a few exceptions in southern California that have third CMR:379;lO Page 9 of 11 party management. In fact, there has been one instance in which a public agency had to revoke third party management of the airport due to performance issues. The challenge in third party management is that strict specifications, performance measures, and oversight would be necessary jf P"lo Alto decides on this course. The City would likely need to hire a manager to keep vigil over the contract and service to the airport users. Although the Report recommends two options, a City run airport or Third Party management, at this time staff believes the Council should also review and eomment on the FED option. Given the projected net revenues for an FBO model that are higher than the other options, this alternative merits further consideration and analysis. In addition, it provides the expertise the City needs to operate the airport if it chooses to have a management role short of full control. To assist with the analysis of management options and a transition to City control, staff recommends the formation of an advisory body to Council. Based on Council direction, staff will retum with a Budget Amendment Ordinance (BAO) for required resources and the establishment of an Airport Enterprise Fund. A specific timeline (see below) for hiring the expertise and performing the required tasks to move forward would be provided along with the BAD. In addition to the issue of a management model, there are concerns over the physical condition and vacancy rate at the airport. The former is a consequence of minimal County work in this area and the latter is a result of higher fees implemented by the County to recover its prior capital investments. These are important issues that affect the viability of the airport. In addition, there is significant community and economic value (see Appendix B) that should be recognized. TlMELINE Taking control of the airport will be a complex, step by step process that involves a host of entities and considerations. Multiple meetings with the County, the FAA, State, and East Palo Alto will occur over time. Legal, contractual, and operational issues will need to be worked through. Depending on Council input and questions, staff envisions returning to Council with a BAO for additional resources and a more finalized Business Plan. At that time a more detailed time line can be provided. Staff envisions the following, high-level timeline for next steps: December, 2010 Retum to Council with BAD February, 20 II Formation of Airport Advisory Body May, 20J I Advisory Board and Staff recommend, jointly or independently, Airport Management Option and Timeline Steps to Implement Airport Transition. RESOURCE IMPACT The preliminary costs of taking the first steps toward City control of PAO are $500,000. This estimate includes: Phase II Environmental Site Investigation Airport Manager (annual cost) CMR:379:10 $150,000 $220,000 Page 10 of II Other Expert or Consultant advice· Legal advice (first year) . Total $100,000 $ 30,000 $500,000 The above costs are rough estimates and could vary depending on Council input and direction. Legal costs would be ongoing and would increase' as negotiations with an FHO or Third Pa11y ensue. In addition to an Airport Manager to help with the transition, other expert or consultant advice may be required. These expenses would be funded from the Budget Stabilization Reserve in the General Fund as a loan and repaid by the Airport Enterprise Fund once sufficient funds are accumulated. POLICY IMPLICATIONS This progress report and recommended actions are consistent with previous Council direction. ENVIRONMENTAL REVIEW A Phase I Environmental Site Assessment has been conducted and is attached to this CMR (Attachment C). The assessment was done to determine if any hazardous material spills have impacted soil and/or groundwater at PAO. The report concludes that there is sufficient cause to recommend a Phase II site investigation to evaluate potential soil and groundwater contamination at the PAO. ATTACHMENTS Attachment A: Wiedemann and Associates Business Plan and Community Value Analysis Appendix A: Survey of Airport Users Appendix B: PAO's Community Value Attachment B: Environmental Site Assessment PREPARED BY: .1.Q~:t;~ive Services LAL EREZ Director, Administrative Services CITY MANAGER APPROVAL: cc: County of Santa Clara Palo Alto Airport Joint Community Relations Committee Chair of the PAAWG CMR:379:!O Page II of!! TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: UTILITIES DATE: DECEMBER 6, 2010 CMR: 425:10 REPORT TYPE: ACTION SUBJECT: Finance Committee Recommendation to Adopt a Resolution Adopting Utility Rate Schedule E-NSE-1 of the City of Palo Alto Utilities Rates and Charges Pertaining to Electric Service, and Adoption of a Resolution Amending Utility Rule and Regulation 29 (Net Energy Metering Service and Interconnection) RECOMMENDATION 1. The Finance Committee, the Utilities Advisory Commission (UAC) and staff recommend that the City Council adopt a Resolution Adopting Net Surplus Electricity Compensation Rate Schedule (E-NSE-1) as attached. The rate schedule, if approved, would become effective January 1, 2011. 2. Additionally, staff recommends that the City Council adopt a resolution amending Utility Rule and Regulation 29 as attached. The amended rule, if approved, would become effective January 1, 2011. EXECUTIVE SUMMARY State law requires Palo Alto’s City Council to establish a Net Surplus Electricity Compensation Rate Schedule to be effective January 1, 2011. This rate will be used to compensate eligible Net Metering customers, who choose monetary compensation, for the electricity produced by their onsite system in excess of their annual consumption at the end of each twelve-month period. The City’s Electric Utility currently has 409 eligible customers in the Net Metering program with a total generating capacity of 2,578 kW, or 1.4% of the Electric Utility’s peak system demand of 186 MW in Fiscal Year (FY) 2010. For FY 2010, only 42 of these 409 net metering customers were eligible for net surplus compensation, meaning they had generated more electricity than they had consumed during the prior twelve-month period. The Finance Committee, UAC and staff recommend that the average cost of electricity in the renewable portfolio (at $0.05841/KWh) be used as the best valuation for the Net Surplus Electricity Compensation Rate due to its simplicity, and its ability to represent local conditions and costs impacting all electric utility ratepayers. This rate will be updated annually to reflect the current average cost of electricity in the renewable portfolio. Minor revisions to Rule and Regulation 29 as shown in Attachment D are also proposed along with the proposed E-NSE-1 Rate Schedule. CMR: 425:10 Page 1 of 7 At its October 6, 2010 meeting, the UAC accepted staff’s recommendation to use the average cost of electricity in the renewable portfolio to set the Net Surplus Electricity Compensation Rate in a 5-2 vote. The Finance Committee unanimously accepted staff’s recommendation at its November 2, 2010 meeting. BACKGROUND State law Assembly Bill (AB) 920 (2009) modified the Public Utilities Code’s terms and conditions for Net Energy Metering (PUC Section 2827). AB 920 requires the City Council to establish a Net Surplus Electricity Compensation Rate Schedule to be effective January 1, 2011 to compensate eligible customer-generators for electricity produced in excess of on-site load at the end of each twelve-month period. Eligible customer-generators are residential or small commercial customers of an electric utility, who use a solar or a wind turbine electrical generating facility, or a hybrid system of both, with a capacity of not more than one megawatt that is located on the customer's owned, leased, or rented premises. The facility is interconnected and operates in parallel with the electric grid, and is intended primarily to offset part or all of the customer's own electrical requirements. The City’s PV Partners program provides rebates based on system size of newly installed solar photovoltaic (PV) systems, and Net Metering allows participants to receive a financial credit for excess energy generated by their onsite system and fed back to the utility. The credit is calculated using the default retail electric rate and is used to offset the customer's electricity bill. Prior to AB920 utilities carried forward monthly credits for customers who were net generators in any given month, and allowed those credits to be used toward electric charges incurred in subsequent months. Electric utilities, however, were not obligated to provide credits for surplus electricity generation after a twelve-month period and any such customer surplus was deemed canceled annually. The City of Palo Alto did not cancel customer credits, but allowed the surplus generation to carry forward indefinitely. The total credits that could have been canceled out are estimated to be less than $4,000 annually for about 200 customers. AB920 required utilities to notify eligible customer-generators by January 31, 2010 to make an election for how they wanted to be compensated for their net surplus electricity. Customers may choose to receive compensation as a monetary bill credit, or may carry forward the net surplus electricity in kilowatt-hours for the next settlement period. Settlement periods are twelve- months and are deemed to start when the utility receives the customer’s completed and signed election form. Electric utilities are not obligated to offer compensation or carry forward the net- surplus electricity if the customer fails to make an election; indeed, California law requires the City to claim the surplus as its own. AB 920 requires that utilities determine a compensation rate by January 1, 2011 to be used for net surplus electricity compensation. The law also states that upon adoption of the net surplus electricity compensation rate by the ratemaking authority, the net surplus electricity purchased by the electric utility shall count toward the electric utility’s renewable portfolio standard (RPS) annual procurement targets. In January 2010, City of Palo Alto Utilities sent a letter notifying all eligible customer-generators that they have the option to either a) elect to receive compensation beginning in 2011 for any net surplus electricity generated during the prior 12-month period, or b) be allowed to apply any net CMR: 425:10 Page 2 of 7 surplus electricity as a future credit for electricity, measured in kilowatt-hours, supplied by City of Palo Alto Utilities. In May 2010 (CMR 223:10) significant revisions were made to Utilities Rule and Regulation (Rule) 29 that addresses Net Energy Metering Service and Interconnection for qualifying customer-generators. The revisions to Rule 29 reflected changes in the California Public Utilities Code due to AB920 and resulting modifications to the Utilities billing procedures for Net Energy Metering. Further minor revisions to Rule 29 as shown in Attachment D are also proposed along with the proposed E-NSE-1 Rate Schedule. The City currently has 409 eligible customers in this program with a total generating capacity of 2,578 kW or 1.4% of the Electric Utility’s peak system demand of 186 MW in FY 2010. As of September 2, 2010, 284 customers made an election with 146 electing compensation and 138 electing future credit for electricity. DISCUSSION AB 920 defines net surplus electricity compensation as a per kilowatt-hour rate offered by the electric utility to the net surplus customer-generator for net surplus electricity that is set by the ratemaking authority. The relevant sections of the law are below: PUC section 2827 (h) (4) (A): The net surplus electricity compensation valuation shall be established so as to provide the net surplus customer-generator just and reasonable compensation for the value of net surplus electricity, while leaving other ratepayers unaffected. The ratemaking authority shall determine whether the compensation will include, where appropriate justification exists, either or both of the following components: - the value of the electricity itself - the value of the renewable attributes of the electricity PUC section 2827 (h) (4) (B): In establishing the rate pursuant to subparagraph (A), the ratemaking authority shall ensure that the rate does not result in a shifting of costs between solar customer-generators and other bundled service customers. The requirements for setting the compensation rate, therefore, are that: a) The payment must be just and reasonable compensation to be determined by the City Council; b) The compensation is restricted to net surplus kilowatt-hours (kWh), and is not intended for customers that have excess credits on their bill but no net kWh; c) The rate is to be a “per kilowatt hour rate”; and, d) The rate should not result in the shifting of costs to other bundled service customers. CMR: 425:10 Page 3 of 7 Value of electricity and renewable attributes generated during the settlement period Based on the criteria defined by AB920 as presented above, a number of alternatives can be used to establish the value of electricity and renewable attributes generated during FY2010. The table below presents these alternatives. Alternative Compensation Valuation Options FY 2010 $ per kWh 1 PG&E Load Aggregation Point – Peak Prices $0.04296 2 RPS Eligible REC $0.01500 3 Average Cost of Supply Including Renewables Less Transmission $0.06059 4 Average Cost of Renewable Supply $0.05841 5 Most Expensive Renewable Supply $0.06295 6 Residential System Average Retail Rate $0.11600 7 Average Bill Credit for City’s Net Metering Customers for Excess Energy (*)$0.15130 (*) Value as of Aug 2010 The first five alternatives include the energy and renewable attribute values that other utilities are considering (from staff’s research). These first five alternatives do not include transmission costs. 1. Pacific Gas and Electric Company (PG&E) LAP – Peak This value represents the average cost of electricity during peak usage hours in the Northern California/PG&E area, referred to as the PG&E load aggregation point (PG&E LAP), in FY 2010. It is the price that the City pays for purchases of electricity during the peak hours and is a good proxy for avoided costs when the utility receives net kWh from customer-generators. At $0.04296 per kWh this value does not include any renewable attributes that solar photovoltaic net surplus customer-generators would offer to the City and, therefore, is not recommended to be used alone, but could be used in addition to a value representing renewable attributes. 2. RPS Eligible REC The average value of Renewable Energy Credits (REC) in FY 2010 that are RPS eligible. An estimate of this value is $0.01500 per kWh for FY 2010. This value represents the renewable attributes only, and therefore, is not recommended to be used alone, but could be used in addition to a value representing the value of electricity alone such as PG&E LAP discussed above. 3. Average Cost of Supply Including Renewable Attribute Excluding Transmission Average cost of electricity supplied by the City to all ratepayers in FY2010 including renewable power and excluding transmission costs is estimated to be $0.06059 per kWh. This value has the advantage of including the average cost of renewables included in the utility’s supply procurement portfolio. Thus, it already contains an imbedded green/renewable value. This value could be used as a just and reasonable compensation for the value of electricity supplied by net surplus customer-generators as it represents average cost of local electricity delivered to all ratepayers. However, it includes all supplies, not just the renewable supplies, so the compensation to net surplus generators would not reflect 100% renewable supplies. CMR: 425:10 Page 4 of 7 4. Average Cost of Renewable Supply Excluding Transmission The City’s existing renewable supply contracts yield a weighted average price of $0.05841 per kWh for FY 2010. This could be used as a representative valuation for the electricity supplied by net surplus customer-generators in FY 2010. This has the advantage of representing both the value of the electricity and the value of the renewable attributes. It has the additional advantage of simplicity and understandability. It is also a good representation of actual local conditions and represents 100% renewable supplies. 5. Most Expensive Renewable Supply Contract Price Excluding Transmission The most expensive renewable supply contract price is $0.06295 per kWh in FY 2010. It could be argued that this value represents the marginal price of electricity supplied by renewable power in FY 2010 and should be used to value the electricity supplied by net surplus customer generators in FY 2020. It is, however, unclear whether the highest price is the price of the incremental resource, or whether it is a function of timing of when the particular transaction occurred. It is, therefore, not recommended as the best choice for the compensation value to be used. 6. Residential System Average Retail Rate The residential system average retail rate is $0.1160 per kWh for FY 2010. This rate includes not only the electricity generation value including renewables but also the transmission, distribution, public benefits and fixed customer service costs that need to be collected from electric utility’s residential customers. Using this value would result in shifting costs to other bundled customers which is contrary to the AB 920 requirements. It is, therefore, not recommended to be used as the compensation rate for this purpose. 7. Average Bill Credit for Net Metering Customers for Excess Energy As of Aug 2010, net surplus customer-generators had a total of $5,580 in total bill credits for excess generation of 36,871 kWh. This represents an average rate of $0.1513 per kWh. As net surplus generator bill credits include the retail price of electricity valued at higher tiers, this value is even higher than the system average retail rate, and therefore, is not recommended to be used for this purpose. Proposed Valuation for Energy and Renewable Attributes Due to its simplicity, and its ability to represent local conditions and costs impacting all utility ratepayers, it is recommended that Option 4, the average cost of the renewable supply portfolio, be used as the best valuation for the Net Surplus Electricity Compensation Rate. This value represents both the value of the electricity, excluding transmission, and the value of the renewable attributes associated with net surplus electricity provided by net surplus customer- generators. It also does not shift costs between solar customer-generators and other bundled service customers, and therefore, meets all of the requirements of AB920. COMMITTEE REVIEW AND RECOMMENDATIONS The Finance Committee considered the UAC and staff’s recommendation at its November 2, 2010 meeting. Committee members discussed the 5-2 vote from the UAC (draft notes from the UAC’s October 6, 2010 meeting are provided as Attachment F). Committee members also discussed the application of the proposed rate and heard from staff that the proposed rate only CMR: 425:10 Page 5 of 7 applies to the surplus electricity at the end of each twelve-month period and that the retail electric rate used to calculate credits would still be maintained. Therefore existing incentives for PV systems would not be reduced by the new rate schedule. The Committee voted unanimously to recommend that the City Council adopt staff’s recommended Net Surplus Electricity Compensation Rate Schedule (E-NSE-1) based on the average cost of the renewable supply portfolio. RESOURCE IMPACT Resource impacts from the proposed recommendation include impacts due to: 1) net surplus electricity compensation for eligible customers; and 2) billing system related changes 1) Resource Impact due to Net Surplus Electricity Compensation for Eligible Customers It is expected that the resource impact of the proposed net surplus electricity compensation rate schedule will be negligible. Net surplus electricity compensation applies to eligible net surplus customer-generators that have made the election to receive compensation. For the twelve-month period from July 2009 to June 2010, only 42 of the 409 net metering customers were eligible for net surplus compensation, meaning they had generated more than they had consumed during the prior twelve-month period. Of the eligible customers, only 11 elected monetary compensation while 24 elected net surplus electricity to be applied as credit for electricity subsequently supplied by CPAU (i.e., kWh credit), and 7 still have to indicate their preferred option. For the twelve-month period from July 2009 to June 2010, total net surplus electricity generation for the 42 customers was 36,871 kWh, or 878 kWh per customer. Those that made the election for compensation had 7,836 kWh of net surplus generation. Valued at $0.05841 per kWh, this represents a total monetary compensation of $458, or $42 per customer for the 11 that elected monetary compensation. 2) Billing System Related Changes There is a potential resource impact from utility billing system implementation of AB920 requirements, which is independent from the rate adopted. Currently customers’ kWh credits are not carried forward; instead credits are carried forward as dollar values. Cumulative kWh credits are required in order to calculate customer’s net surplus customer-generator status and compensation eligibility at settlement. AB920 also requires that customers are provided information on their kWh credit balance. Currently utilities staff manually keeps track of this information for each billing period. Eligible customer-generators are sent a monthly letter separate from the utility bill showing both kWh and dollar credit balances. Additional changes must be made for instituting the settlement periods for each customer. The first implementation of net surplus compensation will be in February of 2011. Staff is looking at alternatives for implementation options ranging from manual processing to a fully automated process through the utility billing system. Costs and benefits will be evaluated once all options are identified. Staff has had a $327,200 estimate for a full automation involving outside consultants performing the billing system configuration. However, further investigation suggests that less costly options are likely to be available. CMR: 425:10 Page 6 of 7 POLICY IMPLICATIONS This recommendation does not represent a change to current City policies. ENVIRONMENTAL REVIEW Adoption of this resolution does not meet the California Environmental Quality Act's definition of a project, pursuant to California Publie Resources Code Section 21065, therefore no environmental assessment is required. ATTACHMENTS A. Resolution for E-NSE-l B. Resolution for Utility Rule and Regulation 29 C. Net Surplus Electricity Compensation Rate Schedule D. Utility Rule and Regulation 29 E. Excerpted Draft Minutes from the Finance Committee November 2nd, 2010 meeting F. Excerpted Draft Minutes from the UAC October 6th, 2010 meeting G. PUC Code Section 2827 PREPARED BY: REVIEWED BY: DEP ARTMENT APPROVAL: CITY MANAGER APPROVAL: CMR: 425:10 IPEK CONNOLLY Sr. Resouree Planner DEBRA LLOYD "D L Actin Assistant Di tor, Resource Management ~~~a':"""'iL~~YJL-.t~{( VOr Vju.ERIE O. FONG "Yirector of Utilities ,Pu,./).).A ~ t..L JAMEm:NE .... City Manager Page 7 of7 ATTACHMENT A Not Yet Approved Resolution No. _________ Resolution of the Council of the City of Palo Alto Adopting Utility Rate Schedule E-NSE-1 of the City of Palo Alto Utilities Rates and Charges Pertaining to Electric Service The Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-NSE-1 (Net Metering Net Surplus Electricity Compensation) is hereby added to read in accordance with sheet E-NSE-1, attached hereto and incorporated herein. Schedule E- NSE-1 sets forth the compensation rate for net metering net surplus electricity that is paid to a net energy metering customer who makes an election to receive compensation. The foregoing Utility Rate Schedule, as amended, shall become effective January 1, 2011. SECTION 2. The Council finds that the revenue derived from the authorized adoption enumerated herein shall be used only for the purpose set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. SECTION 3. The Council finds that the adoption of this resolution does not constitute a project under the California Environmental Quality Act, California Public Resources Code section 21080, subdivision (b)(8). INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ ___________________________ Senior Asst. City Attorney City Manager ___________________________ Director of Utilities ___________________________ Director of Administrative Services 101022 jb 0073432 ATTACHMENT B Not Yet Approved Resolution No. _________ Resolution of the Council of the City of Palo Alto Amending Utility Rule and Regulation 29 (Net Energy Metering Service and Interconnection) Governing Electric Service The Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Rule and Regulation 29 (Net Energy Metering Service and Interconnection) is hereby amended to read as set forth in the amended Rule and Regulation 29, attached hereto and incorporated herein by reference. The foregoing Rule and Regulation, as amended, shall become effective January 1, 2011. SECTION 2. The Council finds that the adoption of this resolution does not meet the definition of a project under California Public Resources Code Section 21065, thus no environmental review is required. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ ___________________________ Senior Asst. City Attorney City Manager ___________________________ Director of Utilities ___________________________ Director of Administrative Services 101109 jb 0073457 ATTACHMENT C NET METERING NET SURPLUS ELECTRICITY COMPENSATION UTILITY RATE SCHEDULE E-NSE-1 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 1-1-2011 Sheet No.E-NSE-1 A. APPLICABILITY: This schedule applies to eligible residential and small commercial net metering Customers who, at the end of an annual settlement period, as defined by Rule 29, are net surplus customer-generators of electricity and who elect to receive monetary compensation as such preference is indicated on the net surplus electricity election form. B. TERRITORY: Applies to locations within the service area of the City of Palo Alto. C. RATES: Per kWh Net energy compensation rate $0.05841 D. SPECIAL CONDITIONS 1. Net surplus compensation eligibility will be determined as specified in Rule 29. The determination of a Customer’s net surplus electricity measured in kWh will be based on a twelve-month settlement period. The twelve-month settlement period starts on the date of Interconnection of the facility, or for Customers with dates of Interconnection of their facilities prior to February 1, 2010, on the day after CPAU’s receipt of the Customer’s net surplus electricity election form. Net surplus electricity, as specified in Rule 29, if applicable, will be multiplied by the above compensation rate to determine the Customer’s annual net surplus electricity compensation stated in dollars. This compensation will be provided to the Customer as a credit applied to the Customer’s Utility account. 2. If the Customer does not provide CPAU with an election form selecting a compensation option, the Customer will be deemed to not make an election as required by law, and no compensation will be provided to the Customer for net surplus electricity. 3. In the event a Customer terminates Service prior to the natural expiration of the twelve-month period, the net surplus electricity status will be evaluated at that time. Compensation, if applicable, will be provided in accordance with D.2 above. 4. For all other terms, conditions and definitions please refer to Rule 29, Net Energy Metering Service and Interconnection. {End} ATTACHMENT D NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 601-01-20102011 Sheet No. 1 A. APPLICABILITY 1. This Rule and Regulation 29 is applicable to any customer-generator of CPAU who signs the Net Energy Metering and Interconnection Agreement. A customer-generator includes: (1) an “eligible customer-generator,” as that term is defined in Section 331(h) of the California Public Utilities Code to refer to a residential or small commercial Customer, and, (2) a customer-generator who is other than a residential or small commercial Customer, as defined, of CPAU, which includes a medium commercial and a large commercial (industrial) Customer, who uses a solar or wind turbine electrical Generating Facility, or a hybrid system of both. The facility must be located on the customer-generator’s owned, leased or rented Premises, must have a capacity of not more than one (1) megawatt (or 1,000 Kilowatts), must be Interconnected and operated in parallel with CPAU’s Electric utility Distribution System, and must be intended primarily to offset part or all of the customer-generator’s own Electric Service requirements. 2. The customer-generator will be required to sign a Net Energy Metering and Interconnection Agreement (NEMIA) or an agreement containing substantially the terms and conditions of the referenced NEMIA and agree to be subject to applicable Utility Rates and Charges and Utility Rules and Regulations in order to be eligible for Net Energy Metering Service provided by CPAU. CPAU will make available all necessary forms and contracts for Net Energy Metering Service for download from the Internet. 3. CPAU shall process a request for the establishment of Net Energy Metering and Interconnection from the customer-generator within the time period not exceeding that for Customers requesting new Electric Service. Such time period will not exceed thirty (30) days from the date of (1) receipt of a completed Application form for Net Energy Metering Service and Interconnection from the customer-generator, (2) Electric inspection clearance from CPAU, and (3) building inspection clearance from the City of Palo Alto Building Inspection Division. If CPAU is unable to process the request within the thirty-day period or other applicable period, then CPAU shall notify the customer-generator of the reason for its inability to process the request and the expected completion date. ATTACHMENT D NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 601-01-20102011 Sheet No. 2 B. TERRITORY: Within the jurisdictional boundaries of the City of Palo Alto. C. SPECIAL CONDITIONS: 1. Net Energy Metering Net Energy Metering means measuring the difference between the electricity supplied through CPAU’s Electric utility Distribution System and the electricity generated by the customer-generator’s facility and delivered to CPAU’s Electric utility Distribution System over a specified twelve-month period. 2. Metering Equipment Net Energy Metering shall be accomplished by using a single Meter capable of registering the flow of electricity in two different directions. If the customer-generator’s existing Meter is not capable of measuring the flow of electricity in two directions, then the customer- generator shall be responsible for all expenses involved in purchasing and installing a Meter that is able to measure electricity flow in two directions. In lieu of one Meter, an additional Meter to monitor the flow of electricity in each direction may be installed with the consent of the customer-generator, at the expense of CPAU. The additional Meter shall be used only to provide the information necessary to accurately bill or credit the customer-generator and/or to collect solar or wind Electric generating system performance information for research purposes. 3. Billing for Net Energy Metering a. At the end of each twelve-month period following the date of Interconnection of the facility, or for a Customer with a date of Interconnection of the facility commencing prior to February 1, 2010, the day after CPAU’s receipt of the Customer’s net surplus electricity election form, and at each annual settlement anniversary date thereafter, CPAU will determine whether the customer-generator is a net electricity consumer or a net surplus customer-generator, as such terms are defined in California Public Utilities Code sections 2827(h)(2) and 2827(h)(3) during that period. CPAU will bill the customer-generator for the electricity used during that twelve-month period, ATTACHMENT D NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 601-01-20102011 Sheet No. 3 whether the customer-generator is considered a net electricity consumer or a net surplus customer-generator. b. At the end of the twelve-month period, where the electricity supplied by CPAU during that period exceeds the electricity generated by the customer-generator’s facility during that same period, the customer-generator is a net electricity consumer during that period, and the customer-generator will owe compensation to CPAU. The compensation shall be calculated according to the terms and conditions of the NEMIA or other applicable contract referred to in Section A above and/or to the applicable utility rates and Charges for baseline quantity of electricity, to which class of utility Customers the customer-generator would be assigned. The net balance of money owed by the net electricity consumer to CPAU will be carried forward as a monetary value until the end of the twelve-month period in the case of a residential or small commercial Customer, or the residential or small commercial Customer may elect to pay the balance due at the end of the month immediately following the twelve-month period. If the customer-generator is a medium commercial or large commercial (industrial) Customer, then payment of any net balance due shall be made on a monthly basis. c. At the end of the twelve-month period, where the electricity supplied by the customer-generator’s facility during that period exceeds the electricity supplied by CPAU during that period, the customer-generator is a net surplus customer-generator during that period. Upon the City’s receipt of the customer-generator’s affirmative election, CPAU either will provide net surplus electricity compensation, as such term is defined in California Public Utilities Code section 2827(b)(8) , in accordance with Electric Utility Rate Schedule E-NSE-1, for any net surplus electricity generated during the prior twelve-month period, or will allow the net surplus electricity to be applied as a credit for electricity (expressed in Kilowatt-hours) subsequently supplied by CPAU to the customer-generator. If the customer-generator fails to make an affirmative election to receive Service pursuant to net surplus electricity compensation, then CPAU shall retain any excess electricity (expressed in Kilowatt- hours) generated during the prior twelve-month period, and it shall not be obligated to pay net surplus electricity compensation nor shall it be obligated to allow the application of net surplus electricity to be used as a credit for Energy subsequently supplied by CPAU., unless there is an agreement which provides for the same. Any excess electricity that in accordance with the election is to be applied as a credit shall ATTACHMENT D NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 601-01-20102011 Sheet No. 4 be carried forward to the following billing cycle as a monetary value and shall be recorded as a credit to the extent credit is available on the customer-generator’s Account until the end of the twelve-month period. d. CPAU will allow a Customer to change the election option once each settlement period provided that the Customer provides notice to CPAU one month prior to the beginning of new settlement period. de. CPAU shall provide the customer-generator with net electricity consumption information with each monthly bill; that information shall include either the current monetary balance owed to CPAU or the current amount of excess electricity produced since the last twelve-month period. ef. A Residential or Small Commercial Customer The net Energy consumer customer- generator or net surplus electricity customer-generator failing to make the affirmative election, who is a residential or small commercial Customer, as defined, may elect to pay the electricity Charge (measured in Kilowatt-hours) portion of the billing statement each month, or at the annual settlement. , but such option shall not be available to any customer-generator who is considered a medium commercial or large commercial (industrial) Customer of CPAU. For medium commercial or large commercial (industrial) Customer, electricity Charges are due and payable per applicable monthly billing schedules. The customer-generator’s bill payment will not be considered delinquent, unless the customer-generator does not pay a final billing statement within twenty (20) days of the date of issuance of that final billing statement. g. For Residential Customers electing single billing for the twelve-month settlement period, for each monthly period, the net balance of moneys owed to the electric service provider for net consumption of electricity or credits owed to the customer- generator for net generation of electricity shall be carried forward until the end of each twelve-month period. Any excess kilowatt-hours generated during the billing cycle shall be carried over to the following billing period, calculated according to the procedures set forth in this section, and appear as a credit on the customer-generator's account, until the end of the annual period when paragraph (3) of subdivision (b) shall apply. ATTACHMENT D NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 601-01-20102011 Sheet No. 5 h. For all customer-generators on monthly billing, and for each monthly period, the net balance of moneys owed to the electric service provider for net consumption of electricity shall be paid in accordance with the electric service provider's normal billing cycle, except that if the residential and small commercial customer-generator is a net electricity producer over a normal billing cycle, any excess kilowatt-hours generated during the billing cycle shall be carried over to the following billing period, calculated according to the procedures set forth in this section, and appear as a credit on the customer-generator's account, until the end of the annual period when paragraph (3) of subdivision (b) shall apply. h. If an electric service provider providing net metering to a residential or small commercial customer-generator ceases providing that electrical service to that customer during any twelve-month period, and the customer-generator enters into a new net metering contract or tariff with a new electric service provider, the twelve- month period, with respect to that new electric service provider, shall commence on the date on which the new electric service provider first supplies electric service to the customer-generator. fi. If the customer-generator terminates the contractual relationship with CPAU, then CPAU shall reconcile the customer-generator’s consumption and production of electricity during any part of the twelve-month period following the last annual settlement and reconciliation. If the electricity supplied by the customer-generator’s facility during that period exceeds the electricity supplied by CPAU during that period, the customer-generator will be deemed a net surplus customer-generator during that period, and compensation will be provided in accordance with Electric Utility Rate Schedule E-NSE-1. If the electricity supplied by CPAU during that period exceeds the electricity generated by the customer-generator’s facility during that same period, the customer-generator is a net electricity consumer during that period, and the customer-generator will owe compensation to CPAU based upon the applicable Electric Rate Schedule. 4. Safety Standards The facility will meet all applicable federal, state and local safety and performance standards, including those established by the National Electrical Code, the Institute of ATTACHMENT D NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 601-01-20102011 Sheet No. 6 Electrical and Electronic Engineers, and accredited testing laboratories such as Underwriters Laboratories and, as applicable, the rules of the California Public Utilities Commission regarding safety and reliability. The customer-generator whose facility meets those standards and rules will not be required to install additional controls, perform or pay for additional tests, or purchase additional liability insurance. 5. Interconnection Standards (Design) a. Customer-Generator will conform to the applicable National Electric Code (NEC) Standards [NEC 690] and applicable building codes. b. Customer-Generator will have a dedicated circuit from the inverter to the Service panel with a circuit breaker or fuse [NEC 690-64(b)(1)]. c. Customer-Generator's overcurrent device at the Service panel will be marked to indicate solar power source [NEC 690-64(b)(4)]. d. Customer-Generator's inverter will establish the following minimum specifications for Parallel Operation with CPAU’s Electric utility Distribution System. e. Customer-Generator will install a visible break, lockable AC disconnect switch in the dedicated circuit to the inverter. This switch will be located where it is easily accessible by CPAU personnel and will be equipped with a CPAU padlock [CPAU Rule and Regulation 27]. f. Customer-Generator’s inverter will be UL 1741-aprpoved and have the following specifications for Parallel Operation with CPAU’s Electric utility Distribution System: 1. Inverter output will automatically disconnect from CPAU’s utility source upon the loss of CPAU’s utility voltage and will not be reconnected until at least five (5) minutes after normal utility voltage and frequency have been restored [UL 1741]. 2. Inverter will automatically disconnect from CPAU’s utility source within 120 cycles (2 seconds) if CPAU’s utility voltage isles than 106 volts or greater than 132 volts on a 120-volt base [UL 1741]. 3. Inverter will automatically disconnect from CPAU’s utility source within 10 ATTACHMENT D NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 601-01-20102011 Sheet No. 7 cycles (0.17 seconds) if CPAU’s utility frequency fluctuations is less than 59.3 hertz or greater than 60.5 hertz [UL 1741] cycle. 4. Inverter output will comply with IEEE 519 standards for harmonic distortion [CPAU Rule and Regulation 27]. ATTACHMENT E EXCERPTED DRAFT MINUTES OF FINANCE COMMITTEE Meeting of November 2, 2010 ITEM 5: ACTION: Net Surplus Energy Compensation Rate Recommendation Senior Resource Planner Ipek Connolly summarized the report. She explained that State law passed in late 2009 requires Palo Alto’s City Council to establish a Net Surplus Electricity Compensation Rate Schedule to be effective January 1, 2011 to compensate eligible Net Metering customers for electricity produced by their PV system in excess of their annual consumption at the end of each twelve-month period for the customers who choose monetary compensation. Due to its simplicity, and its ability to represent local conditions and costs impacting all electric utility ratepayers, staff recommended that the average cost of electricity in the renewable portfolio be used as the best valuation for the Net Surplus Electricity Compensation Rate. This value represents both the value of the electricity, excluding transmission, and the value of the renewable attributes associated with net surplus electricity provided by PV Partners participants. It also does not shift costs between PV Partners participants and other bundled service customers, and therefore, meets the latest requirements of state law. ACTION: Council Member Scharff moved staff’s recommendation. Vice Mayor Espinosa seconded the motion. The motion passed unanimously 4-0. ATTACHMENT F EXCERPTED DRAFT MINUTES OF UTILITIES ADVISORY COMMISSION Meeting of October 6, 2010 ITEM 2: ACTION: Net Surplus Energy Compensation Rate Recommendation Senior Resource Planner Ipek Connolly summarized the report. She explained that State law passed in late 2009 requires Palo Alto’s City Council to establish a Net Surplus Electricity Compensation Rate Schedule to be effective January 1, 2011 to compensate eligible Net Metering customers for electricity produced by their PV system in excess of their annual consumption at the end of each twelve-month period for the customers who choose monetary compensation. Due to its simplicity, and its ability to represent local conditions and costs impacting all electric utility ratepayers, staff recommended that the average cost of electricity in the renewable portfolio be used as the best valuation for the Net Surplus Electricity Compensation Rate. This value represents both the value of the electricity, excluding transmission, and the value of the renewable attributes associated with net surplus electricity provided by PV Partners participants. It also does not shift costs between PV Partners participants and other bundled service customers, and therefore, meets the latest requirements of state law. Commissioner Keller expressed concern that the new rate was significantly less than that currently used to calculate credits for Net Metering customers. Staff clarified that the Net Surplus Electricity Compensation rate would only apply to the excess (or net surplus) electricity at the end of each twelve-month period and would not change the retail electric rate used to calculate credits within each customer’s twelve-month settlement period. Therefore existing incentives for PV systems would not be reduced by the new rate schedule. Commissioner Keller also asked if the rate should include transmission cost savings. Staff explained that certain transmission cost savings would be hard to identify because it would be difficult to match the time of the net surplus generation to the time that costs are incurred. Also, this is an additional (new) credit now required under state law for the net surplus electricity at the end of a 12-month period and the compensation rate must not result in cost shifts to other customers, therefore staff is recommending a rate that meets the state requirements. Commissioners Foster and Cook also discussed the cost implications of implementing the compensation rate, voicing concern that they would be recommending something that came at high cost for the utility. Staff replied that at this time they were not recommending an automation of the billing system to implement the Net Surplus Electricity Compensation rate. If staff evaluation results in favoring the billing system automation, then a recommendation will be presented to the Council at that time. Staff is currently evaluating the cost of manual computation and tracking of the billing system related requirements as an alternative to an automation of the billing system changes. ACTION: Commissioner Foster moved, and Commissioner Cook seconded, that the UAC accept the staff’s recommendation but require that they first return to the UAC with the CIP recommendations. Commissioner Eglash moved, and Commissioner Keller seconded, a substitute motion that the UAC recommend that the City Council Adopt Net Surplus Electricity Compensation Rate Schedule (E-NSE) as proposed. The substitute motion passed (5-2) with Commissioners Foster and Cook opposing. 1 PUBLIC UTILITIES CODE SECTION 2827 2827. (a) The Legislature finds and declares that a program to provide net energy metering for eligible customer-generators is one way to encourage substantial private investment in renewable energy resources, stimulate in-state economic growth, reduce demand for electricity during peak consumption periods, help stabilize California's energy supply infrastructure, enhance the continued diversification of California's energy resource mix, and reduce interconnection and administrative costs for electricity suppliers. (b) As used in this section, the following definitions apply: (1) "Electric service provider" means an electrical corporation, as defined in Section 218, a local publicly owned electric utility, as defined in Section 9604, or an electrical cooperative, as defined in Section 2776, or any other entity that offers electrical service. (2) "Eligible customer-generator" means a residential, small commercial customer as defined in subdivision (h) of Section 331, commercial, industrial, or agricultural customer of an electric service provider, who uses a solar or a wind turbine electrical generating facility, or a hybrid system of both, with a capacity of not more than one megawatt that is located on the customer's owned, leased, or rented premises, is interconnected and operates in parallel with the electric grid, and is intended primarily to offset part or all of the customer's own electrical requirements. (3) "Net energy metering" means measuring the difference between the electricity supplied through the electric grid and the electricity generated by an eligible customer-generator and fed back to the electric grid over a 12-month period as described in subdivision (e). Net energy metering shall be accomplished using a single meter capable of registering the flow of electricity in two directions. An additional meter or meters to monitor the flow of electricity in each direction may be installed with the consent of the customer-generator, at the expense of the electric service provider, and the additional metering shall be used only to provide the information necessary to accurately bill or credit the customer-generator pursuant to subdivision (e), or to collect solar or wind electric generating system performance information for research purposes. If the existing electrical meter of an eligible customer-generator is not capable of measuring the flow of electricity in two directions, the customer-generator shall be responsible for all expenses involved in purchasing and installing a meter that is able to measure electricity flow in two directions. If an additional meter or meters are installed, the net energy metering calculation shall yield a result identical to that of a single meter. An eligible customer-generator who already owns an existing solar or wind turbine electrical generating facility, or a hybrid system of both, is eligible to receive net energy metering service in accordance with this section. (c) (1) Every electric service provider shall develop a standard contract or tariff providing for net energy metering, and shall make this contract available to eligible customer-generators, upon request. 2 (2) If a customer participates in direct transactions pursuant to paragraph (1) of subdivision (b) of Section 365 with an electric supplier that does not provide distribution service for the direct transactions, the service provider that provides distribution service for an eligible customer-generator is not obligated to provide net energy metering to the customer. (3) If a customer participates in direct transactions pursuant to paragraph (1) of subdivision (b) of Section 365 with an electric supplier, and the customer is an eligible customer-generator, the service provider that provides distribution service for the direct transactions may recover from the customer's electric service provider the incremental costs of metering and billing service related to net energy metering in an amount set by the commission. (d) Each net energy metering contract or tariff shall be identical, with respect to rate structure, all retail rate components, and any monthly charges, to the contract or tariff to which the same customer would be assigned if such customer was not an eligible customer-generator, except that eligible customer-generators shall not be assessed standby charges on the electrical generating capacity or the kilowatthour production of an eligible solar or wind electrical generating facility. The charges for all retail rate components for eligible customer-generators shall be based exclusively on the customer-generator's net kilowatthour consumption over a 12-month period, without regard to the customer-generator's choice of electric service provider. Any new or additional demand charge, standby charge, customer charge, minimum monthly charge, interconnection charge, or other charge that would increase an eligible customer-generator's costs beyond those of other customers in the rate class to which the eligible customer-generator would otherwise be assigned are contrary to the intent of this legislation, and shall not form a part of net energy metering contracts or tariffs. (e) For eligible residential and small commercial customer-generators, the net energy metering calculation shall be made by measuring the difference between the electricity supplied to the eligible customer-generator and the electricity generated by the eligible customer-generator and fed back to the electric grid over a 12-month period. The following rules shall apply to the annualized net metering calculation: (1) The eligible residential or small commercial customer-generator shall, at the end of each 12-month period following the date of final interconnection of the eligible customer-generator's system with an electric service provider, and at each anniversary date thereafter, be billed for electricity used during that period. The electric service provider shall determine if the eligible residential or small commercial customer-generator was a net consumer or a net producer of electricity during that period. (2) At the end of each 12-month period, where the electricity supplied during the period by the electric service provider exceeds the electricity generated by the eligible residential or small commercial customer-generator during that same period, the eligible residential or small commercial customer-generator is a net electricity consumer and the electric service provider shall be owed compensation for the eligible customer-generator's net kilowatthour consumption over that same period. The compensation owed for the 3 eligible residential or small commercial customer-generator's consumption shall be calculated as follows: (A) For all eligible customer-generators taking service under tariffs employing "baseline" and "over baseline" rates, any net monthly consumption of electricity shall be calculated according to the terms of the contract or tariff to which the same customer would be assigned to or be eligible for if the customer was not an eligible customer-generator. If those same customer-generators are net generators over a billing period, the net kilowatthours generated shall be valued at the same price per kilowatthour as the electric service provider would charge for the baseline quantity of electricity during that billing period, and if the number of kilowatthours generated exceeds the baseline quantity, the excess shall be valued at the same price per kilowatthour as the electric service provider would charge for electricity over the baseline quantity during that billing period. (B) For all eligible customer-generators taking service under tariffs employing "time of use" rates, any net monthly consumption of electricity shall be calculated according to the terms of the contract or tariff to which the same customer would be assigned to or be eligible for if the customer was not an eligible customer-generator. When those same customer-generators are net generators during any discrete time of use period, the net kilowatthours produced shall be valued at the same price per kilowatthour as the electric service provider would charge for retail kilowatthour sales during that same time of use period. If the eligible customer-generator's time of use electrical meter is unable to measure the flow of electricity in two directions, paragraph (3) of subdivision (b) shall apply. (C) For all residential and small commercial customer-generators and for each monthly period, the net balance of moneys owed to the electric service provider for net consumption of electricity or credits owed to the customer-generator for net generation of electricity shall be carried forward until the end of each 12-month period. For all commercial, industrial, and agricultural customer-generators the net balance of moneys owed shall be paid in accordance with the electric service provider's normal billing cycle, except that if the commercial, industrial, or agricultural customer-generator is a net electricity producer over a normal billing cycle, any excess kilowatthours generated during the billing cycle shall be carried over to the following billing period, valued according to the procedures set forth in this section, and appear as a credit on the customer-generator's account, until the end of the annual period when paragraph (3) of subdivision (e) shall apply. (3) At the end of each 12-month period, where the electricity generated by the eligible customer-generator during the 12-month period exceeds the electricity supplied by the electric service provider during that same period, the eligible customer-generator is a net electricity producer and the electric service provider shall retain any excess kilowatthours generated during the prior 12-month period. The eligible customer-generator shall not be owed any compensation for those excess kilowatthours unless the electric service provider enters into a purchase agreement with the eligible customer-generator for those excess kilowatthours. (4) The electric service provider shall provide every eligible 4 residential or small commercial customer-generator with net electricity consumption information with each regular bill. That information shall include the current monetary balance owed the electric service provider for net electricity consumed since the last 12-month period ended. Notwithstanding subdivision (e), an electric service provider shall permit that customer to pay monthly for net energy consumed. (5) If an eligible residential or small commercial customer-generator terminates the customer relationship with the electric service provider, the electric service provider shall reconcile the eligible customer-generator's consumption and production of electricity during any part of a 12-month period following the last reconciliation, according to the requirements set forth in this subdivision, except that those requirements shall apply only to the months since the most recent 12-month bill. (6) If an electric service provider providing net metering to a residential or small commercial customer-generator ceases providing that electrical service to that customer during any 12-month period, and the customer-generator enters into a new net metering contract or tariff with a new electric service provider, the 12-month period, with respect to that new electric service provider, shall commence on the date on which the new electric service provider first supplies electric service to the customer-generator. (f) A solar or wind turbine electrical generating system, or a hybrid system of both, used by an eligible customer-generator shall meet all applicable safety and performance standards established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, and accredited testing laboratories such as Underwriters Laboratories and, where applicable, rules of the Public Utilities Commission regarding safety and reliability. A customer-generator whose solar or wind turbine electrical generating system, or a hybrid system of both, meets those standards and rules shall not be required to install additional controls, perform or pay for additional tests, or purchase additional liability insurance. (g) This section shall remain in effect only until January 1, 2003, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2003, deletes or extends that date. 2827. (a) The Legislature finds and declares that a program to provide net energy metering for eligible customer-generators is one way to encourage private investment in renewable energy resources, stimulate in-state economic growth, enhance the continued diversification of California's energy resource mix, and reduce interconnection and administrative costs for electricity suppliers. (b) As used in this section, the following definitions apply: (1) "Electric service provider" means an electric corporation, as defined in Section 218, a local publicly owned electric utility, as defined in Section 9604, or an electrical cooperative, as defined in Section 2776. "Electric service provider" also means an entity that offers electrical service to residential and small commercial customers, as defined in Section 394, if that entity offers net energy metering. Any entity that offers net energy metering to 5 residential and small commercial customers shall comply with this section. (2) "Eligible customer-generator" means a residential customer, or a small commercial customer as defined in subdivision (h) of Section 331, of an electric service provider, who uses a solar or a wind turbine electrical generating facility, or a hybrid system of both, with a capacity of not more than 10 kilowatts that is located on the customer's premises, is interconnected and operates in parallel with the electric grid, and is intended primarily to offset part or all of the customer's own electrical requirements. (3) "Net energy metering" means measuring the difference between the electricity supplied through the electric grid and the electricity generated by an eligible customer-generator and fed back to the electric grid over a 12-month period as described in subdivision (e). Net energy metering shall be accomplished using a single meter capable of registering the flow of electricity in two directions. An additional meter or meters to monitor the flow of electricity in each direction may be installed with the consent of the customer-generator, at the expense of the electric service provider, and the additional metering shall be used only to provide the information necessary to accurately bill or credit the customer-generator pursuant to subdivision (e), or to collect solar or wind electric generating system performance information for research purposes. If the existing electrical meter of an eligible customer-generator is not capable of measuring the flow of electricity in two directions, the customer-generator shall be responsible for all expenses involved in purchasing and installing a meter that is able to measure electricity flow in two directions. If an additional meter or meters are installed, the net energy metering calculation shall yield a result identical to that of a single meter. An eligible customer-generator who already owns an existing solar or wind turbine electrical generating facility, or a hybrid system of both, is eligible to receive net energy metering service in accordance with this section. (4) "Ratemaking authority" means, for an electrical corporation as defined in Section 218, or an electrical cooperative as defined in Section 2776, the commission, and for a local publicly owned electric utility as defined in Section 9604, the local elected body responsible for regulating the rates of the utility. (c) (1) Every electric service provider shall develop a standard contract or tariff providing for net energy metering, and shall make this contract available to eligible customer-generators, upon request, on a first-come-first-served basis until the time that the total rated generating capacity used by eligible customer-generators equals one-tenth of 1 percent of the electric service provider's aggregate customer peak demand. (2) On an annual basis, beginning in 1999, every electric service provider shall make available to the ratemaking authority information on the total rated generating capacity used by eligible customer-generators that are customers of that provider in the provider's service area. For those electric service providers who are operating pursuant to Section 394, they shall make available to the ratemaking authority the information required by this paragraph for each eligible customer-generator that is their customer for each service area of an electric corporation, local publicly owned 6 electric utility, or electrical cooperative, in which the customer has net energy metering. The ratemaking authority shall develop a process for making the information required by this paragraph available to energy service providers, and for using that information to determine when, pursuant to paragraph (3), a service provider is not obligated to provide net energy metering to additional customer-generators in its service area. (3) Notwithstanding paragraph (1), an electric service provider is not obligated to provide net energy metering to additional customer-generators in its service area when the combined total peak demand of all customer-generators served by all the electric service providers in that service area furnishing net energy metering to eligible customer-generators equals one-tenth of 1 percent of the aggregate customer peak demand of those electric service providers. (4) If a customer participates in direct transactions pursuant to paragraph (1) of subdivision (b) of Section 365 with an electric supplier that does not offer net energy metering and is therefore not an electric service provider, the customer is not an eligible customer-generator and the electric corporation, as defined in Section 218, that provides distribution service for the direct transactions, is not obligated to provide net energy metering to the customer. (5) If a customer participates in direct transactions pursuant to paragraph (1) of subdivision (b) of Section 365 with an electric supplier that offers net energy metering and is therefore an electric service provider, and the customer is an eligible customer-generator, the electric corporation, as defined in Section 218, that provides distribution service for the direct transactions may recover from the customer's electric service provider the incremental costs of metering and billing service related to net energy metering in an amount set by the commission. (d) Each net energy metering contract or tariff shall be identical, with respect to rate structure, all retail rate components, and any monthly charges, to the contract or tariff to which the same customer would be assigned if such customer was not an eligible customer-generator. The charges for all retail rate components for eligible customer-generators shall be based exclusively on the customer-generator's net kilowatthour consumption over a 12-month period, without regard to the customer-generator's choice of electric service provider that offers net energy metering and is subject to this section pursuant to paragraph (1) of subdivision (b), in accordance with subdivision (e). Any new or additional demand charge, standby charge, customer charge, minimum monthly charge, interconnection charge, or other charge that would increase an eligible customer-generator's costs beyond those of other customers in the rate class to which the eligible customer-generator would otherwise be assigned are contrary to the intent of this legislation, and shall not form a part of net energy metering contracts or tariffs. (e) The net energy metering calculation shall be made by measuring the difference between the electricity supplied to the eligible customer-generator and the electricity generated by the eligible customer-generator and fed back to the electric grid over a 12-month period. The following rules shall apply to the annualized net metering calculation: 7 (1) The eligible customer-generator shall, at the end of each 12-month period following the date of final interconnection of the eligible customer-generator's system with an electric service provider, and at each anniversary date thereafter, be billed for electricity used during that period. The electric service provider shall determine if the eligible customer-generator was a net consumer or a net producer of electricity during that period. (2) At the end of each 12-month period, where the electricity supplied during the period by the electric service provider exceeds the electricity generated by the eligible customer-generator during that same period, the eligible customer-generator is a net electricity consumer and the electric service provider shall be owed compensation for the eligible customer-generator's net kilowatthour consumption over that same period. The compensation owed for the eligible customer-generator's net 12-month kilowatthour consumption shall be calculated as follows: (A) For eligible customer-generators taking service under tariffs employing "baseline" and "over baseline" rates, any net monthly consumption of electricity shall be calculated according to the terms of the contract or tariff to which the same customer would be assigned to or be eligible for if the customer was not an eligible customer-generator. If those same customer-generators are net generators over a billing period, the net kilowatthours generated shall be valued at the same price per kilowatthour as the electric service provider would charge for the baseline quantity of electricity during that billing period, and if the number of kilowatthours generated exceeds the baseline quantity, the excess shall be valued at the same price per kilowatthour as the electric service provider would charge for electricity over the baseline quantity during that billing period. (B) For eligible customer-generators taking service under tariffs employing "time of use" rates, any net monthly consumption of electricity shall be calculated according to the terms of the contract or tariff to which the same customer would be assigned to or be eligible for if the customer was not an eligible customer-generator. When those same customer-generators are net generators during any discrete time of use period, the net kilowatthours produced shall be valued at the same price per kilowatthour as the electric service provider would charge for retail kilowatthour sales during that same time of use period. If the eligible customer-generator's time of use electrical meter is unable to measure the flow of electricity in two directions, paragraph (3) of subdivision (b) shall apply. (C) For all customer-generators and for each monthly period, the net balance of moneys owed to the electric service provider for net consumption of electricity or credits owed to the customer-generator for net generation of electricity shall be carried forward until the end of each 12-month period. (3) At the end of each 12-month period, where the electricity generated by the eligible customer-generator during the 12-month period exceeds the electricity supplied by the electric service provider during that same period, the eligible customer-generator is a net electricity producer and the electric service provider shall retain any excess kilowatthours generated during the prior 12-month period. The eligible customer-generator shall not be owed any 8 compensation for those excess kilowatthours unless the electric service provider enters into a purchase agreement with the eligible customer-generator for those excess kilowatthours. (4) The electric service provider shall provide every eligible customer-generator with net electricity consumption information with each regular bill. That information shall include the current monetary balance owed the electric service provider for net electricity consumed since the last 12-month period ended. Notwithstanding subdivision (e), an electric service provider shall permit that customer to pay monthly for net energy consumed. (5) If an eligible customer-generator terminates the customer relationship with the electric service provider, the electric service provider shall reconcile the eligible customer-generator's consumption and production of electricity during any part of a 12-month period following the last reconciliation, according to the requirements set forth in this subdivision, except that those requirements shall apply only to the months since the most recent 12-month bill. (6) If an electric service provider providing net metering to a customer-generator ceases providing that electrical service to that customer during any 12-month period, and the customer-generator enters into a new net metering contract or tariff with a new electric service provider, the 12-month period, with respect to that new electric service provider, shall commence on the date on which the new electric service provider first supplies electric service to the customer-generator. (f) A solar or wind turbine electrical generating system, or a hybrid system of both, used by an eligible customer-generator shall meet all applicable safety and performance standards established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, and accredited testing laboratories such as Underwriters Laboratories and, where applicable, rules of the Public Utilities Commission regarding safety and reliability. A customer-generator whose solar or wind turbine electrical generating system, or a hybrid system of both, meets those standards and rules shall not be required to install additional controls, perform or pay for additional tests, or purchase additional liability insurance. (g) This section shall become operative on January 1, 2003. 2827.5. The Legislature finds and declares that the repeal of the provisions of the net metering program for large customers merely reflects a legislative desire to revisit and more closely evaluate the cumulative value and effect of the state's policy regarding renewable energy sources on the economics of investment in solar and wind sources for large net metering customers and to ensure further legislative discussion regarding this issue. 2827.7. Generation eligible for net metering that is installed on or before December 31, 2002, shall be entitled, for the life of the installation, to the net metering terms in effect on the date of installation. TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE: DECEMBER 6, 2010 REPORT TYPE: ACTION CMR:435:10 SUBJECT: Update on the Design of the Main Library lI~provements (PE 11000) and Staff Recommendation to Temporarily Relocate the Main Library to the Arts Center Auditorium, Option No.1, During Construction of Main Library EXECUTIVE SUMMARY Design of the Main Library Improvements has begun and will be completed so that construction can commence in late 2012. This timing allows the Mitchell Park Library to be opened (September 2012) and fully functional during the closure of Main Library. Service to residents will still be needed in north Palo Alto, however, during the construction at Main. Staff is therefore recommending a small temporary library in the Arts Center Auditorium (Option No.1) immediately adjacent to Main Library. Construction as part of a separate CIP PF-07000, Electrical and Mechanical Improvements to the Arts Center, will commence in the Spring of 2011 and will be completed in the spring of 2012, in time to accommodate the temporary library. Sufficient funds are available within the total bond amount to provide a temporary Main library. RECOMMENDATION Staff recommends that Council accept Option No.1 (see below) to provide a small temporary Main Library in the Arts Center Auditorium during construction at Main Library and direct Staff to return to Council with appropriate modifications to the Library bond program design and construction management contracts for approval by Council. BACKGROUND On July 7, 2008, Council directed staff to proceed with placing on the November 2008 ballot a library/community center bond measure. Measure N, which passed on November 4, 2008, includes funding for construction of a new and expanded Mitchell Park Library and Community Center (MPLCC), renovation of the Downtown Library and renovation and expansion of the Main Library. Detailed history of the design development can be found in past City Manager's Reports to Council (CMR:286:02, CMR:119:06, CMR:343:06, CMR:434:06, CMR:225:07, CMR:321:08, CMR:473:08, CMR:149:09 and CMR:334:10) that can be viewed at: http://www.cityofpaloalto.org/knowzone/reports/cmrs.asp). CMR:435:10 Page 1 of6 Construction of the Downtown Library and the MPLCC has begun. The Downtown Library will be completed in the summer of 2011 and the MPLCC will be completed in approximately September of 2012. The schematic design phase (35%) for all of the library bond projects was completed before the bond measure was placed on the ballot. The continuation of the design for the Main Library has begun and will be completed in 2011. DISCUSSION Main Library Status Update The design of the Main Library has started and the project status was discussed at meetings of the following groups in November 2010; the Historic Resources Board, the Architectural Review Board, the Library Advisory Commission, the Finance Committee, and a community meeting. The Main Library improvements will include 4 small group study rooms that are acoustically separated from the rest of the existing building, and a new detached program space that will seat 100 people. To accommodate the new program space, the Main Library will expand by approximately 4,000 square feet from the current 21,000 square feet on the ground floor of the building (CMR:434:06). The interior of the existing library will also be reconfigured to make better use of areas that are vacated by relocating certain materials into the new detached building. Lighting and other existing building systems will also be upgraded. All of the improvements will be made with consideration for the historic nature of the existing building. The building will be designed to Leadership in Energy and Environmental Design (LEED) "Silver" level. Improvements to the Main Library will be the final phase of the Measure N Bond measure projects. Temporary Main Library-Needs and Options The existing Main Library houses 130,000 items, including a historic collection. The new Mitchell Park branch will house a good portion of these items but a large percentage will be put into storage. A temporary Main Library will allow current Main Library users to have access to a small, well-chosen variety of materials as well as a convenient place to pick up their holds, an increasingly popular service. This will save automobile trips and help decrease cross-town traffic and maintain a local amenity. Several options are available for a temporary Main Library. A summary of these options is available in Attachment A. Staff considered a variety of locations such as parks, private building rentals, and public facilities and has summarized the most feasible options below: • Option 1: Art Center auditorium, approximately 2,500 square feet; $350,000-500,000; collection size 10,000 items The auditorium at the Art Center is approximately 2,500 square feet. The auditorium could be used as a place to pick up holds, drop off books and browse a limited selection of periodicals. The collection size at the auditorium would be roughly 10,000 items. Parking for this'site would be shared with the Art Center. The historic collection could be relocated to the existing temporary library at the Cubberley Community Center and staff from the Main Library would be dispersed to work at the Art Center auditorium, the existing temporary library at the Cubberley Community Center and the new MPLCC. The construction cost is estimated to be $350,000 to $500,000 and would include accessibility, lighting, shelving, new flooring, and other basic upgrades to the auditorium. The key advantage of this option is that it is immediately adjacent to the Main Library. CMR:435:10 Page 2 of6 Construction of the first phase of the Art Center renovation project is scheduled to begin in the spring of 2011 and be completed approximately one year later in the spring of 2012 (including move-back time). Construction at the Main Library is scheduled to begin after the MPLCC has re-opened in approximately September 2012. This would allow time to make improvements to the Art Center auditorium that is needed to accommodate the temporary library prior to closure of the Main Library. • Option 2: Modular building at the Lucie Stern Center, approximately 2,880 square feet; $500,000-$700,000; collection size 10,000 items Modular buildings totaling approximately 2,880 square feet could be placed in the parking lot at the Lucie Stem Center and be used as a place to pick up holds, drop off books, and browse a limited selection of periodicals. The collection size in the modulars would be roughly 10,000 items. A significant disadvantage of this location is that parking at the Lucie Stem Center is very limited and would be shared with other uses already there as well as spillover parking from the adjacent elementary school. The historic collection at the Main Library could be relocated to the existing temporary library at the Cubberley Community Center and staff from the Main Library would be dispersed to work at the modular buildings, the existing temporary library at the Cubberley Community Center, and the new Mitchell Park Library. The construction cost is estimated to be $500,000 to $700,000 and would primarily include directing site utilities to the trailer and potential reconfiguration of the parking lot to accommodate the modular buildings and increased parking demand. Restoration of the parking lot would also be necessary after the modulars are removed. • Option 3: Leased East Bayshore Road office space, Program A, approximately 2,880 square feet; $350,000-$500,000; collection size 10,000 items Leased space in the immediate vicinity of the Main Library does not exist. however, various lease space opportunities are currently available on East Bayshore Road, or east of Highway 101. Staff recently toured two large spaces that are currently available, however, the challenge as to what might be available in the year 2012, especially for a short term rental of 2 years, is unknown. Current rents in the vicinity range from $1.50 to $3.50 per square foot per month. In addition to this rent, smaller spaces in the range of 2,500 to 3,000 square feet are likely built out as office space, or bare industrial space, so costs to build tenant improvements must also be considered. After evaluating two current options, the overall cost for a leased space, for a 24 month term, plus tenant improvements, would be approximately the same as the cost for converting an equivalent-sized space at the Art Center auditorium. While adequate parking would likely be available, library staff felt that patrons would be unwilling to cross the freeway to access a temporary library, particularly if they were pedestrians or bicyclists. • Option 4: Leased East Bayshore Road office space, Program B, approximately 8,192 square feet; $850,000-$1,000,000; collection size 50,000 items This scenario is similar to Option 3; however a collection of 50,000 items could be housed in this space. Like Option 3, this option has the disadvantages of being on the other side of the freeway from the Main Library, the uncertainty of what spaces might be available for lease in the year 2012, and the disadvantage of a commitment or requirement of only a two year lease, which landlords may be reluctant to entertain. CMR:435:10 Page 3 of6 • Option 5: Existing temporary library at the Cubberley Community Center, approximately 5,000 square feet; $1,000-$10,000; collection size 45,000 volumes An approximately 5,090 square foot temporary library with books, computer terminals, and seating has been constructed in the auditorium of the Cubberley Community Center. This temporary library has approximately 45,000 volumes, 28 reader table seats, 10 study carrel seats, 18 computers and associated seats, and 10 lounge seats. This temporary library is scheduled to close upon the completion of the Mitchell Park Library in late 2012; however it could remain open, using the same configuration as it has now, and serve as the temporary library during the construction on the Main Library. Costs related to this option are primarily related to moving and adjusting stacks and lighting as needed. The main disadvantage of using the temporary library at Cubberley as the temporary Main Library is that it is in south Palo Alto, therefore not as convenient to the patrons of Main Library. • Option 6: No temporary Main Library facility. The north Palo Alto community's closest library access for adult level materials would be the Downtown Branch and would be difficult for those library users who currently walk or ride their bikes to the library because Downtown Library is approximately 1.5 miles away from Main Library. Having a temporary facility adjacent to the building being remodeled keeps the community informed about the progress of the Main Library building and promotes an easier transition into the Main Library when reopened. The community has expressed the desire to have a temporary building and the favorable construction bidding climate allows the City to allocate some funding for this temporary facility. Recommended Option The Options were discussed at the Community Meeting held on November 16. Although the group was small, almost all of those commenting favored having a Temporary Main Library, and having it in the Arts Center Auditorium (Option 1). The question of a Temporary Main Library was also discussed at the Public Art Commission on November 18. Commissioners did not make recommendations on this question, but noted the positive aspect of creating a connection between the Arts Center and Main Library by using the Auditorium. The issue was also discussed at the Library Advisory Commission meeting on the same day. The Library Advisory ,Commission did not make formal recommendations, but individual Commissioners indicated that either locating the temporary library at the Art Center Auditorium (Option 1 ) or not having a Temporary Library (Option 6) were both viable Options, and better than any of the other Options. Staff recommends that Option 1 (use of the Art Center Auditorium) be selected. If Council selects this option, or any combination of Options 1 through 5, staff will return with a contract amendment with Group 4 Architecture and Turner Construction to provide design and construction management services. Option 1 is most desirable because: 1) The Arts Center Auditorium is immediately adjacent to the Main Library and the best location to serve residents who currently use Main. 2) The cost is comparable or lower than the other Options, except for Option 5 (Cubberley) and Option 6 (no temporary facility). However, Option 5 is in south Palo Alto, several CMR:435:10 Page 4 of6 miles away from Main Library. Option 6 would result in a temporary decrease in library services available in north Palo Alto. 3) Design and construction costs for any temporary Main Library are bondable. Given lower than anticipated construction costs on these projects, the City can provide a temporary Main Library facility within the available bond funding if Council approves moving forward with the new temporary library. RESOURCE IMPACT Design and construction costs for a temporary Main Library can be covered by bond funds and, because of the low bids that have been received on the library projects to date, there is sufficient financial flexibility to provide a temporary Main Library facility. A new CIP would be established for this project, if approved by Council. Costs for the preliminary design needed for the selected option will be paid from the Main Library CIP PE-11000 but will be tracked separately. After library projects in the first phase of construction and planning are completed, any remaining funds from the first bond issue can and will be used for the Main Library project. Regardless of whether a temporary Main Library is constructed or leased, a second bond issue will be needed to construct the Main Library improvements, which are estimated at $15,000,000. Funds donated for this project through the Palo Alto Library Foundation would only be used for Library facilities and operational purposes. For details on the bond issuance and the applicable tax rates and assessments for 2011, see the Discussion section in CMR 337:10, August 2,2010. Once the second series of bonds is issued for Main Library work (estimated to begin in late 2012), property owners will see a second increase in their property taxes. This increase will be dependent upon the amount of bonds required for the second issue and the prevailing interest rate at the time of the bond sale. POLICY IMPLICATIONS Choosing either to establish, or not establish, a Temporary Main Library would not constitute a change in City Policy. TIMELINE The existing Mitchell Park Library has been closed and its staff, books, and equipment have been relocated to a temporary library at the Cubberley Community Center. Construction of the new Mitchell Park Library began in September 2010 and will be complete in approximately September 2012. This timeline includes the installation of furniture and equipment and the relocation of Technical Services staff now located at the temporary library at the Cubberley Community Center. The construction at the Main Library is being planned to start in the end of2012, so that Mitchell and Main will not be closed at the same time. The public and Library Staff will both benefit from this sequencing of the two projects. This timing also allows the Arts Center remodeling to be completed so that it can serve as the temporary site for Main (Option 1 above). Timing for other options depends on a number of other factors. Option 2 would require the CMR:435:10 Page 5 of6