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HomeMy WebLinkAbout2013-01-14 City Council Agenda PacketCITY OF PALO ALTO CITY COUNCIL Regular Meeting Council Chambers January 14, 2013 7:00 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in the Council Chambers on the Thursday preceding the meeting. 1 January 14, 2013 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. Call to Order Special Orders of the Day 1. Presentation From Lisa Hendrickson Regarding Avenidas 2. Selection of Candidates to be Interviewed for the Public Art Commission for One Term Ending on April 30, 2015 3. Selection of Candidates to be Interviewed for the Parks and Recreation Commission for Two Terms Ending on December 31, 2015 4. Selection of Candidates to be Interviewed for the Planning and Transportation Commission for One Unexpired Term Ending on July 31, 2014 City Manager Comments Minutes Approval November 13, 2012 December 3, 2012 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 of Oral Communications period to 30 minutes. Consent Calendar Items will be voted on in one motion unless removed from the calendar by two Council Members. 5. Review and Acceptance of Annual Status Report on Developers' Fees for Fiscal Year 2012 and Adoption of Resolution Making Findings Regarding Continuing Need for Unexpended Parkland Development 2 January 14, 2013 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. Fees in the Amount of $38,729; Community Center Development Fees in the Amount of $562,329; Library Development Fees in the Amount of $213,729 6. Adoption of Budget Amendment Ordinance in the Amount of $167,734 and Approval of Enterprise Refuse Fund Contract with GSE Construction Company, Inc. in the Total Amount of $704,220 for the New Landfill Gas Flare Project at Regional Water Quality Control Plant - Capital Improvement Program Project RF-10002 7. Adoption of a Budget Amendment Ordinance in the Amount of $205,150 to Capital Improvement Program Project RF-070001 and Approval of Contract with American Asphalt Repair and Resurfacing Co., Inc. in the Amount Not to Exceed $376,200 for Improvements to the Existing Household Hazardous Waste Station Located at the Entrance to the Regional Water Quality Control Plant 8. Second Reading: Adoption of an Ordinance Establishing Underground Utility District No. 47 (Middlefield Road/Addison Avenue/Cowper Street/ Homer Avenue) by Amending Section 12.16.02 of the Palo Alto Municipal Code (First Reading: 12/10/2012, Passed: 8-0 Holman not participating) 9. Second Reading: Adoption of an Ordinance Amending the Zoning Map to Change the Zoning Designation for 423-451 Page Mill Road from R- 1 Single Family Residential Zone to C-S Service Commercial Zone with Site and Design (D) Review Combining District (First Reading: 12/10/2012, Passed: 9-0) 10. Approval of Amendment No. 1 to Mutual Cooperation and Support Agreement Between the City of Palo Alto and Friends of the Palo Alto Junior Museum & Zoo to Extend Term for Another Three Years 11. Approval of a Three Year Contract with West Coast Arborists, Inc. in a Total Amount Not to Exceed $1,050,000 for Tree Pruning and Removal Services 12. Adoption of a Budget Amendment Ordinance in the amount of $173,231 to Provide an Additional Appropriation for the Biosolids Facility Plan Project at the Regional Water Quality Control Plant (WQ- 10001); and Approval of a Wastewater Treatment Enterprise Fund Contract with CH2M HILL Engineers, Inc. in a Total Amount Not to 3 January 14, 2013 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. Exceed $421,678 for the Biosolids Facility Plan at the Regional Water Quality Control Plant-Capital Improvement Program WQ-10001 13. Approval of the Acceptance and Expenditure of Citizens Options for Public Safety (COPS) Funds on Various Law Enforcement Equipment 14. Adoption of a Budget Amendment Ordinance in the Amount of $182,902 to Fund the Purchase of Two Ford F-250 Pickup Trucks, One Chevrolet Express 350 Cargo Van, Two Regenerative Air Sweepers and $16,000 for Vehicle Outfitting Work and Approval of Purchase Orders with 1) Towne Ford in an Amount Not to Exceed $52,146 for Purchase of Two Ford F-250 Pickup Trucks; 2) Courtesy Chevrolet in an Amount Not to Exceed $39,756 for Purchase of One Chevrolet Express 3500 Cargo Van; and 3) Municipal Maintenance Equipment in an Amount Not to Exceed $539,646 for Purchase of Two Regenerative Air Sweepers; (Capital Improvement Program project VR-13000) 15. Policy and Services Committee Recommendation to Approve a Policy for the Office of Economic Development Agenda Changes, Additions and Deletions HEARINGS REQUIRED BY LAW: Applications and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and put up to three minutes for concluding remarks after other members of the public have spoken. OTHER AGENDA ITEMS: Public comments or testimony on agenda items other than Oral Communications shall be limited to a maximum of three minutes per speaker. Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 16. Public Hearing: on Objections to Weed Abatement and Adoption of Resolution Ordering Weed Nuisance Abated 17. Public Hearing: TEFRA Hearing and Approval of Conduit Refunding Obligations for the Oshman Family Jewish Community Center Through the California Development Authority Relating to Facilities Located at 3921 Fabian Way, Palo Alto, California 94303 18. Energy-Compost Facility and Export Option RFP Approval and Recommendation for the Landfill Capping Considerations 4 January 14, 2013 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 Pilot Residential Compostables Collection Program and Adjustment to Refuse Collection Frequency Council Member Questions, Comments and Announcements Members of the public may not speak to the item(s) Adjournment AMERICANS WITH DISABILITY ACT (ADA) 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. PUBLIC COMMENT Members of the Public are entitled to directly address the City Council/Committee concerning any item that is described in the notice of this meeting, before or during consideration of that item. If you wish to address the Council/Committee on any issue that is on this agenda, please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Council/Committee, but it is very helpful. 5 January 14, 2013 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. Additional Information Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Informational Report Report on Surplus Property Donated to Nonprofit Organizations and Contributions to the City from Those Nonprofit Organizations Public Letters to Council Set 1 Set 2 CITY OF PALO ALTO OFFICE OF THE CITY CLERK January 14, 2013 The Honorable City Council Palo Alto, California Presentation From Lisa Hendrickson Regarding Avenidas Attached is information regarding the Avenidas presentation from Lisa Hendrickson. ATTACHMENTS:  History of Avenidas 2013 (DOC)  Avenidas Conference (PDF) Department Head: Donna Grider, City Clerk Page 2 A Brief History Forty-four years ago, senior services in the Palo Alto area were offered through disparate agencies at widely distant sites. For seniors, finding out information and getting referrals to those services was quite a daunting task. Today, scores of services and programs for older adults on the Mid-Peninsula, as well as referrals to and information about them, are housed under one roof---Avenidas. The story of this transformation in senior services is the story of Avenidas which celebrates over four decades of coordinating services for seniors and creating innovative new programs to meet their changing needs. Our vision: “To be a leader in the creation of a community that supports and celebrates its older adults.” Avenidas dates its birthday to 1968 when the SCC (Senior Coordinating Council of the Palo Alto Area--Avenidas’ former name) was formed. Working with the City of Palo Alto, the SCC persuaded officials to allow space in the main library for information, referral and counseling. Soon transportation and health services were added, along with directories of county-wide services and research into transportation and housing needs. In 1974, following an initial survey a decade before, the SCC sponsored a comprehensive study of seniors in the area. From this grew a city-sponsored task force, “When We Grow Older in Palo Alto.” Observers peg the 1974 study and the task force recommendations as the basis for the development of senior services in the area. “The SCC’s major contribution to the community was the tradition of surveys of senior needs every decade. These surveys showed the need both for direct services and coordination to provide and evaluate them,” said Jay Thorwaldson, former editor of the Palo Alto Weekly. Among the 1974 recommendations was a home maintenance program at below-market rates to help seniors remain in their homes. Known as the Avenidas Senior Home Repair Program, it started in 1976 and continues to operate today. In 1977, the notion of seniors volunteering their time in the community was a novel idea, but Avenidas proved to be a catalyst for popularizing and facilitating volunteering by establishing the local Retired Senior Volunteer Program (RSVP). RSVP enabled seniors to contribute their time and talents to public and non-profit institutions throughout Northern Santa Clara County and at one time had more than 500 active volunteers who contributed more than 80,000 hours of service annually to approximately 110 institutions. Twenty five years later, in 2002, volunteering was well-established and numerous places to find volunteer opportunities existed. Avenidas ended its affiliation with RSVP and today, through the Avenidas Volunteer Corps, recruits and supports over 500 volunteers for its own programs, which include the Early Literacy Program (matching older adults with young schoolchildren for reading tutoring), the Roadrunners transportation program and the Computer Learning Center (where volunteers run the entire program). Another recommendation was a Senior Day Care program, later expanded to Senior Day Health, to allow semi-dependent seniors to stay in their homes. Avenidas Senior Day Health Center (SDHC), which began operating in 1978 on East Meadow Drive in the Palo Alto Baptist Church, was the first state-licensed adult day health center in Santa Clara County. But the most ambitious recommendation was a central senior center to house mushrooming services and programs. In 1978, following a $1.2 million fundraising effort to renovate the building, that center opened in the city’s former Police and Fire Station on Bryant Street. That year also marked the beginning of the public-private partnership between Avenidas and the City of Palo Alto, which has outsourced senior services to Avenidas under contract ever since. Avenidas is proud of its history of innovation. In 1982, a task force concluded that there was a demand for reverse annuity real estate loans to enable seniors who needed cash to remain in their homes. The SCC formed the Home Equity Loan Program for Seniors, Inc. (H.E.L.P.S.), a non- profit corporation, to make what are now called reverse mortgages. The first loan was booked in 1984 and many more were booked over the next eight years until such loans became available commercially. H.E.L.P.S.’ clients received a payment every month for the remainder of their lives or until they moved. Some of the loans were on the books for years; one client lived to the age of 106, in her own home the entire time. In 1996, the SCC changed its name to Avenidas, which means “avenues” in Spanish. The change was prompted by the fact that the name was too long and no longer accurately reflected the agency’s regional service area, nor the fact that it was a direct provider of services. Finally, demonstrating thinking that was way ahead of its time, the organization wanted to omit reference to the word “senior”, believing that it was a label that was increasingly unappealing. Today, senior centers across the country are changing their names and eliminating the word “senior.” The agency’s financial resources grew substantially in the 1990’s. In 1994, the SCC received the bequest of a home on a large lot in Old Palo Alto. When the property was sold, the agency received $4,100,000 and an endowment was established. Professional investment of this gift, and a number of other contributions since then, have resulted in substantial growth of the endowment which is now valued at approximately $20,000,000. The annual payout from the endowment funds almost 30% of the agency’s operating budget. In 1996 a memorial fund was established in memory of Fran Arrillaga, a good friend and former Board President. Use of this fund is restricted to new ventures, making it possible for the agency to start new programs. Over the years this fund has seeded a health library, a geriatric care management service, Roadrunners (a volunteer driver program) and Avenidas Village. Health and Wellness programs continued to grow, as personal services such as massage and acupuncture were added. Camp Avenidas Summer Fitness Academy, entering its twelfth year, draws increasing fans. A partnership with El Camino Hospital brought its volunteer driver program, RoadRunners, to Palo Alto. Helping people remain independent is a priority at Avenidas; keeping them out and about in the community is key to their independence. In 2002, in recognition of our contributions to area seniors, Avenidas received accreditation from the National Association of Senior Centers---the second senior center in California to be so honored. In 2004 the loss of its lease presented a great opportunity for the Senior Day Health Center. Instead of operating in a space that converted to a Sunday school each weekend, the program would operate in a state-of-the-art facility designed specifically for frail adults. We built such a facility in Mountain View on land leased to us by the City of Mountain View, and increased our licensed capacity to 65. Now the Avenidas Rose Kleiner Center offers day care and day health care to families from East Palo Alto to Sunnyvale. Avenidas has always been consumer-oriented and responsive to our participants. In 2005 a group of Palo Alto residents wanted to start a village patterned after one in Boston and approached Avenidas for assistance. Avenidas Village was the result of this collaboration. Launched in 2007, this membership organization of people who are aging in place in their own homes provides its 375+ members with easy access to supportive services, a network of friends and a full calendar of social events. When it launched, Avenidas Village was the sixth village in the country and the first on the West Coast. Today there are over 90 operating villages and 100+ in development. Once again, Avenidas was at the forefront with an innovative program to support aging-in-place. Today, serving more than 6,000 people from southern San Mateo County to northern Santa Clara Counties, Avenidas is the place to go for information, services and activities for older adults. Our continuum of services includes classes, lectures, health screenings, social work services, information and assistance, transportation, handyman services, volunteer opportunities, adult day health and day care, and caregiver services. “Avenidas is a combination of programs and services,” said Diana Steeples, who retired from the organization in 1997 after 26 years. “People don’t come to senior centers just for services. They come for activities and a variety of things. But when they need somebody to help them at Avenidas, it’s there. It’s the synergy of the place that makes the whole greater than the sum of its parts.” . CITY OF PALO ALTO OFFICE OF THE CITY CLERK January 14, 2013 The Honorable City Council Palo Alto, California Selection of Candidates to be Interviewed for the Public Art Commission for One Term Ending on April 30, 2015. Attached are ten applications submitted for one unexpired term, ending on April 30, 2015 on the Public Art Commission. Staff requests that the City Council determine which candidates to interview. Interviews will be scheduled as a special meeting with the date to be determined. Copies of all applications are attached. Some applications may be redacted at the request of the applicant. A full set of non-redacted applications will be emailed to Council Members directly. The applicants are as follows: 1. Hope Armstrong 2. Sabrina Braham 3. Harvey Citrin 4. Carol Gilbert 5. Kathleen Kavanaugh 6. Orna Makleff 7. Ben Miyaji 8. Elaine Poplingher 9. Lindsay Russell 10. Robin Theil ATTACHMENTS:  Armstrong Application (PDF)  Braham Application (PDF)  Citrin Application (PDF)  Gilbert Application (PDF)  Kavanaugh Application (PDF)  Makleff Application (PDF)  Miyaji Application (PDF) Page 2  Poplingher Application (PDF)  Russell Application (PDF)  Theil Application (PDF) Department Head: Donna Grider, City Clerk Please Return to: Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2571 CITY OF PALO ALTO PUBLIC ART COMMISSION SUPPLEMENTAL QUESTIONNAIRE Name: Hope Armstrong Date: 12-16-12 Please print or type your answers to the following questions and submit with your completed application. You may submit additional sheets, if necessary, to complete your answers. 1. Have you attended the following meeting? Yes No • Public Art Commission c==J (Dme: -----------~ [l] 2. How did you Learn about the vacancy on the Public Art Commission? The Daily Post: D Community Group: [{] Palo Alto Weekly: D website:DfYeS, Please Identify: ________________ _ Email from City Clerk: D Library Bulletin Board: D Other; Please Specify: genARTS Silicon Valley FlyerlBOokmark:D 3. Describe your involvement in community activities, volunteer and civic organizations: Volunteer Activities: -Santa Clara County Activists for Animals, Graphic Designer, 2012 -genARTS Silicon Valley, Participant, 2012 -Brown University Animal RightS Coalition, Member, 2006-2009 -Straight and Gay Alliance, Member, 2005-2009 -Rhode Island Vegan Awareness, Member, 2005-2009 -st. Mary's Nursing Center, Aid, 2005 -SouthemMaryland Women's Healthcare, Aid, 2004 Other Community Activities: -Barbara Smith Women's Mentoring Program, Mentee, 2011-2012 -Miller Gallery, Camegie Mellon University, Art Installation Assistant, 2009 -English for Action, Art Teacher/Chiidcare Assistant, 2007-2008 4. What is it about the Public Art Commission thm interests you? What qualities, experience and expertise would you bring to the Public Art Commission? Public art has always been a big interest of mine, particularly because of its ability to strengthen a sense of community within a neighborhood. Palo Alto is such a vibrant city; its large technology sector really adds a lot of energy, and the people represent a broad array of cultures. I still remember the whimsical murals by Greg Brown from my first visit to Palo Alto. They helped me focus on my surroundings, and enabled my memory of the places that I had visited. As far as the future of public art, I believe that public art can strengthen the ties between art and technology even more. Palo Alto is the perfect place to marry these two subjects together. I have a cross-disciplinary background in paintirig, drawing, graphic design, web design, and animation. In addition, I have an increasing desire to create interactive art through the use of Aurdino, an open-source electronic prototyping platform. My interest and appreciation for a broad variety of art, as well as my organizational skills and my experience working with grants, galleries, and non-profit organizations would benefit the Public Art Commission. I hope to have the honor of serving the community. Bds/Commissions -702-23 9/13/2011 ) 5. How would you see your role as board member when recommending policy and working with the Council? If it were necessary to change current roles, how would you approach making such changes? If given the role of a board member, J believe that all members of the commission should feel comfortable bringing up any issues that arise. While each and every member is entitled to his or her opinion, I believe that, upon disagreement, the chair should make the final call. All decisions should be made with the best interest of the public and commission in mind, and I would trust that the chair would make the best deci~ion based upon the commission's discussion. If the current roles were to change; I'd expect that we'd need to develop accurate policy changes to ensure a smooth transition. 6. What are the current issues facing the Public Art Commission? The Public Art Commission has a large art collection which must be maintained. The conservatory efforts of hundreds of objects is a large undertaking. All of the art objects must be properly cleaned, they must receive preventative treatment to protect them from the elements, and they periodically need to be repaired due to vandalism. Also, the process of commissioning projects can often be arduous due to financial procurement and/or legai issues (especially involving health and safety regulations). 7. What are your feelings about Paio Alto's current inventory/collection of Art in Public Places? What suggestions would you have for increasing the availability of more Art in Public Places? As I mentioned previously, I'm consistently impressed and surprised by the murals painted by Greg Brown. I like how they combine realism with surrealism, absurdity, and/or whimsy. The utility box murals are great because it's a project that transformed something mundane (like a utility box) into something that the public can enjoy instead of just ignore. I'm looking forward to seeing the interactive sculptures for the Main Library and Art Center campus. I love the fact that the sculptures will be participatory and the public will be encouraged to interact with them. Sometimes public art sculptures can feel cold and alienating, and with the use of technology (and even without technology) sculpture can really come alive and provoke interaction within the community. That's what excites me the most! I think a lot more interactive public art pieces can be created with Arduino, LEOs, and other bits of technology. 8. If appointed, what specific goals would you like to see the Public Art Commission achieve? Palo AUo is such a big technology hub that I believe the community would really enjoy more public art that combines art and technology. I also think that the commission could work to generate interest in creating public art within struggling neighborhoods. Public art is a tool that people can use to reclaim public spaces. Public art creates community engagement and empowerment. For instance, groups of youth could spend a Saturday afternoon painting a mural onto plywood which is covering a closed business. A boarded-up building is a sign of a struggling neighborhood; however, a vibrantly painted . building is evident of an engaged, thriving community. It's a positive sign of change, and it's enough of a spark to empower its citizens. It may be a small spark, or it may be a large spark, but it is an improvement that stands for hope-hope for a better future. Bds/Commissions -702-23 9/13/2011 ) Please Return to: Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650~329~2571 ) CITY OF PALO ALTO PUBLIC ART COMMISSION SUPPLEMENTAL QUESTIONNAIRE Please print or type your answers to the following questions and submit with your completed application. You may submit additional sheets, if necessary, to complete your answers. 1. Have you attended the following meeting? • Public Art Commission Yes D (Date: ______ -.r.) No [Z] 2. How did you Learn about the vacancy on the Public Art Commission? Community Group: D Palo Alto Weekly: D The Daily Post: D website:DfYeS, Please Identify: _______________ _ Email from City Clerk: [lJ Library Bulletin Board: D Flyer/Bookmark: 0 ) Other, Please Specify: ___________________________ _ ) 3. Describe your involvement in community activities, volunteer and civic organizations: Pacific Art League American Society for the Advancement of Chinese Art (Chinese Brush Painting) Palo Alto Cultural Center -Palo Alto Jazz Alliance -HaShirim Chorale Adolescent Counseling Service Stanford University: English in Action -Jewish Coalition for Literacy Congregation Beth Am Jewish Community Center -Asian Art Museum -Hiller Aviation Museum DeYoung Museum of Fine Arts -Contemporary Jewish Museum Neighbors Abroad West Bay Opera 4. What is it about the Public Art Commission that interests you? What qualities, experience and expertise would you bring to the Public Art Commission? Improving the match of art to the aesthetics of the populace. A refined sense of composition, structure, form and color Bds/Commissions -702-23 9/13/2011 ) ) 5. How would you see your role as board member when recommending policy and working with the Council? If it were necessary to change ClDTent roles, how would you approach making such changes? Maintain a Negotiation relationship. Consultation and negotiation. 6. What are the current issues facing the Public Art Commission? There is a sense of lack of respect and resentment about choices made and lack of response to public comment. 7. What are your feelings about Palo Alto's current inventory/collection of Art in Public Places? What suggestions would you have for increasing the availability of more Art.in Public Places? The most successful and intriguing works are the murals by Greg Brown and the glass bottle house in front of City Hall. Much is advant garde but needs more caution in order to maintain general public appeal. Some tastes are more sophisticated and the Commission must remain sensitive to this. 8. If appointed, what specific goals would you like to see the Public Art Commission achieve? Add more color and grace to public art, Make it more approachable, less static and allow for more human interaction via touch, exploration and reflection. Bds/Commissions -702-23 9/13/2011 Please Return to: Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2571 CITY OF PALO ALTO PUBLIC ART COMMISSION SUPPLEMENTAL QUESTIONNAIRE Name: Carol Gilbert Date: Nov. 30, 2012 Please print or type your answers to the following questions and submit will! your completed application. You may submit additional sheets, if necessary, to complete your answers. . Yes No L Have you attended the following meeting? • Public Art Commission D (Date: -----~ ~ 2. How did you Learn about the vacancy on the Public Art Commission? The Daily Post: ~ Community Group: 0 Palo Alto Weekly: 0 website:DfYes, Please Identify: ______________ _ Email from City Clerk: 0 Library Bulletin Board: 0 FlyerlBookmark:D Other, Please Specify: _________________ -'--______ _ 3. Describe your involvement in community activities, volunteer and civic organizations: o Project LOOK! docent for 9 years. o Speaker at the National Docent Symposium. o Participated on the CPA Website Committee to do a preliminary site update and advise on changes for future, and testing of 2012 site. , o Volunteer for Girl Scouts Tech Time, an after-school program designed to support the girls' interest in the hard sciences. o CFO of The Hamilton residence complex in Palo Alto. I also maintain the Website. 4. What is it about the Public Art Commission that interests you? What qualities, experience and expertise would you bring to the Public Art Commission? I have always loved art and personally experimented with a number of media. Art should be a part of every community and should either please and/or stimulate the residents. '. Bds/Commissions -702-23 9/13/2011 5. How would you see your role as board member when recommending policy and working with the Council? If it were necessary to change current roles, how would you approach making such changes? I would see my role as both someone knowledgeable about the art experience and as a voice of the people. The most notable example would be in trying to influence selection of the fountain at California Ave. The committee should be open about whether they are making a decision or the people at large are invited to make it. 6. What are the current issues facing the Public Art Commission? How the many new structures in Palo Alto can and should participate in our mission. 7. What are your feelings about Palo Alto's current inventory/collection of Art in Public Places? What suggestions would you have for increasing the availability of more Art in Public Places? I enjoy most of the pieces in our current collection. There needs to be a commitment on the part of developers to incorporate/support public art for every building going in over a certain square footage or cost. 8. If appointed, what specific goals would you like to see the Public Art Commission achieve? Adding to our current collection. Reviewing what we have and replacing if appropriate. Establishing a maintenance program where needed. (For example, some of Greg Brown's works need to be refreshed.) Bds/Commissions -702-23 9/13/2011 On Nov 19, 2012, at 4:20 PM, Gonsalves, Ronna wrote: Thank you for your phone call today. As discussed, I am attaching a Notice of Vacancy which includes information regarding serving on the Public Art Commission. I am attaching an application in case you decide to apply .. And here are the links we discussed: • Interviews o http://www.communitymediacenter.net/watch/pacc webcast/May/PACC 05 03U.html, o http://www.communitymediacenter.net/watch/pacc webcast/November/PAC C 110211.html, • Previous meetings & minutes o http://www.cityofpaloalto.org/gov/boards/arts.asp?sub ject=Message from the City Council Home Page Please let me know if you have any additional questions at all. Thanks! , Ronna Jojola Gonsalves Deputy City Clerk I City of Palo Alto 250 Hamilton Avenue I Palo Alto, CA 94301 650-329-2267 I ronna.gonsalves@cityofpaloalto.org I www.cityofpaloalto.org\clerk . <PAC Notice of Vacancy.pdf><PAC Application-Supplemental-Consent-Updated 8- 11.pdf> 2 Please Return to: Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2571 CITY OF PALO ALTO PUBLIC ART COMMISSION SUPPLEMENTAL QUESTIONNAIRE Name: Kathleen Kavanaugh Date: 12/15/12 Please print or type your answers to the following questions and submit with your completed application. You may submit additional sheets, if necessary, to complete your answers. 1. Have you attended the following meeting? Yes No • Public Art Commission D (Date: ______ -.L [Zl 2. How did you Learn about the vacancy on the Public Art Commission? The Daily Post: D Community Group: [l] Palo Alto Weekly: D website:DIfYeS, Please IdentifY: _________________ _ Email from City Clerk: D Library Bulletin Board: D FlyerlBookmark: D Other, Please SpecifY: _______________ --,-_____________ _ 3. Describe your involvement in community activities, volunteer and civic organizations: -I have served as President, and held other board positions, of a non-profit called Commercial Real Estate Women, San Francisco chapter. In this role, I hosted a national convention in San Francisco after raising the funds to do so (a team and I raised in excess of $150,000) and we also donated $30,000 in proceeds from a golf tournament which I also helped organize. -In addition, I have volunteered at my daughter's schools as a room mother or other role for the past 5 years. I have applied to a couple of opportunities to assist PAUSD and while not yet selected to serve, I will continue to look for areas where I can help. Our family is also active in Palo Alto activities such as May Fete and are interested in becoming more actively engaged throughout our community. -Finally, I have dedicated time and dollars to organizations such as Recording for the Blind & Dyslexic, Ecumenical Hunger Program, and Bread of Life, among others. 4. What is it about the Public Art Commission that interests you? What qualities, experience and expertise would you bring to the Public Art Commission? -Acting as a Commissioner for the PAC would allow me to engage directly with various projects in Palo Alto. Having been in the neighborhood for 10 years now, I know many people and projects and with this active network could assist with proactively engaging constituents if/when needed to initiate and/or see a project through to completion. -I have worked with a City Council in another town on the Peninsula to get a project entitled and from that experience am interested in (and dedicated to) participating more actively in city government. I see and understand that often a careful balance needs to be reached. My skills in project management require finesse with negotiations-hearing out many sides and addressing concerns raised in order to get to the best result. I can bring those skills of strategy then execution to the Commission. -In my work at Stanford and for other clients, I have worked to set aside 1 % for art that will be integrated into each project. At the Knight Management Center for the Stanford Business School, we commissioned a Bay Area-based artist to enhance the buildings with visual cues about leadership and innovation--qualities which exemplify the school. In the same vein, I'd be interested to work with the Commission to integrate pieces that visually tell the story of Palo Alto. Bds/Commissions -702-23 9/13/2011 5. How would you see your role as board member when recommending policy and working with the Council? If it were necessary to change current roles, how would you approach making such changes? -I am a firm believer that communication is the path to positive results. Talking with council members, colleagues, and the community; listening to concerns; adapting direction based on comments as necessary: these are strategies I have used to find common ground on complex projects that need to keep moving and this is a process I would use when working with the Council. -Regarding changing roles: again, open communication seems the best path. Create a dialogue about the needed change, adapt as necessary, then execute. 6. What are the current issues facing the Public Art Commission? -Implementing the Mitchell Park Library and Community Center art installations is one project that will need attention and completion. -In addition, engaging the active development community to request (require in the future?) serious consideration for adding to the visual richness of the city should be a priority. Palo Alto is a dynamic place and as such needs to assert itself to further strategic civic and public goals. 7. What are your feelings about Palo Alto's current inventory/collection of Art in Public Places? What suggestions would you have for increasing the availability of more Art in Public Places? A number of the existing sculptures are prominent and capture your attention, sometimes rather unexpectedly (Cal Ave has a few of those!). Others may benefit from a thoughtful relocation or new base/surrounding to help them stand out again--perhaps as they might have when first installed. I'd like to engage with local Palo Alto citizens to look for opportunities for donations. Public/private partnerships can also be a great way for private individuals and/or organizations to realize a tax benefit while investing in their community. Finally, I'd look to require new developments to set aside 1 % for art. This is a guaranteed, and not an unreasonable, approach to proactively activate Palo Alto's new and existing streets and plazas. (Cities like San Francisco require this; and let's face it, Palo Alto is SF's little sister/brother to the south!) 8. If appointed, what specific goals would you like to see the Public Art Commission achieve? I think it would be beneficial to create a story/thread that weaves through each of the local installations and to communicate that story (tell the history and future history) of public/visual art in the City of Palo Alto and beyond. Using the PAC Web site as a vehicle for telling the story and additionally developing a smartphone "app" and/or audio tour accessed via cell phone could be other modern ways of reaching the community. Finally, short videos that can be posted on YouTube are also fun ways to engage the citizenry. Finally, using the visual arts to convey the ethos of Palo Alto--its place as the hotbed for innovation and our progressive idealogy--would be exciting. Bds/Commissions -702-23 9/13/2011 .' '" . I Please Return to: Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650-329~2571 CITY OF PALO ALTO PUBLIC ART COMMISSION SUPPLEMENTAL QUESTIONNAIRE Name: Oma Makleff Date: 9.28.2012 Please print or type your answers to the following questions lind submit with your completed application. You may submit additional sbeets, if necessaty, to complete your answers. 1. Have you attended the following meeting? Yes No • Public Art Commission D (Dale: ____ -.J.) o 2. How did you Learn about the vacaru:y on the Public Art Commission? The Daily Post: D Community Group: D Palo Alto Weekly: D website:DfYes,Pleaseldentify: _____________ _ Email from City Clerk: D Libraly Bulletin Board: D Other, Please Specify: Conversation with current member FlyerlBookmark: D 3. Describe your involvement in community activities, vobmreer and civic organizations: The docent-training program at the Fine Arts Museums of San Francisco is a volunteer-based activity. During the past two years, it involved numerous hours of studying, driving, and docent practices in the museum. It is a manifestation of my commitment to completing the program and to do art outreach work. Past volunteer activities in Palo Alto included writing and editing a newsletter for a local group and school parent-volunteer activities in PTA and school events. I 4. What is it about the Public Art Co.mmission that interests you? What qualities, experience and expertise would you bring to tlKl Public Art Commission? Public art is just that-for the public to enjoy and benefit. Choosing artworks, placing them, and preserving them are decisions of great responsibility. It is a great challenge to balance the responsibilities towards the community. the artists. and the artworks themselves. My interest in art, education and involvement with the practice and theory of art and art history, and collecting experience will benefit any such process of decision-making. Another favorite challenge is to be an advocate for artworks that are not immediately endearing and opening someone's eyes to the hidden beauty of an artwork. Bds/Commissions -702-23 9/13/2011 .<' • 5. How would you see your role as board member when recommending policy and working with the Cowcil? If it were necessary to change current roles, how would you approach making such changes? As a board member, I see my role as advocating for art in the public sphere, artwork that will create interest and exchange of opinion and will reflect the varying interests of the community. Any changes in the role can be addressed when they arise, with the long-term goal of making Palo Alto an art-conscious community. 6. What are the current issues facing the Public Art Commission? Working within the available budget is always a concern in complicated economic times. However, apart from this more obvious concern, the commission might want to address new media and new forms of art that might appeal to a younger generation tuned to instant and ever changing communication and messages. Site-specific, temporary exhibits may be a more budget-conscious way to bring more art to the public. Palo Alto is fortunate to have Stanford University as its neighbor, and perhaps some cooperation is possible between the city and the University's art collection and museums. 7. What are your feelings about Palo Alto's current inventory/collection of Art in Public Places? What suggestions would you have for increasing the availability of more Art in Public Places? The public sculptures and murals are the most obvious and pleasing and whenever pOSSible, I would support these. Paintings can be exhibited in public buildings and schools, although they would reach a smaller audience. The current collection can benefit from increasing publicity and tours of the collection. The proximity to Silicon Valley is another benefit that can be utilized. Cooperation with local companies can be attempted either in funds, in loans of artworks, and in new exhibits of new media temporary artworks. 8. If apPOinted. what specific goals would you like to see the Public Art Commission achieve? Art enhances everyone's life. Even when people disagree about a specific artwork, we underestimate the benefits of the work just being there, creating interest, exchange. perhaps opening eyes to differences in style and unique approaches. The commission is already achieving that goal and should be encouraged to continue in that direction. Palo Alto is a varied and unique community-8re there other innovative ways to serve and advance the city with public art? The commission could consider an even wider role for art in the public sphere, temporary. auditory, participatory, and site-specific. In addition, the commission might consider how it is perceived by the public-are the commission's efforts acknowledged and appreciated, and are there any unanswered needs? Bds/Commissions -702-23 9/13/2011 Please Return to: Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2571 CITY OF PALO ALTO PUBLIC ART COMMISSION SUPPLEMENTAL QUESTIONNAIRE Name: Poplingher Elaine Date: 12.16.2012 Please print or type your answers to the following questions and submit with your completed application. You may submit additional sheets, if necessary, to complete your answers. 1. Have you attended the following meeting? Yes No • Public Art Commission D (Date: _____ ---J.) [l] 2. How did you Learn about the vacancy on the Public Art Commission? The Daily Post: D Community Group: D Palo Alto Weekly: D website:~Yes, Please Identify: _c_ity"-o_f..:....p_a_lo_a_lt_o_.o_rg=---_______ _ Email from City Clerk: D Library Bulletin Board: D Flyer~OOkmark:D Other, Please Specify: _________________________ _ 3. Describe your involvement in community activities, volunteer and civic organizations: Mid Peninsula Educational Center, Stratford School -taught classes: Why buildings stand up and why buildings fall down, How to build the tallest structure 4th grade, Bridges and other structures build to span 6th grade Palo Alto Art Center -special events, art exhibitions organization Palo Alto Historical Association -Main Library files organization 4. What is it about the Public Art Commission that interests you? What qualities, experience and expertise would you bring to the Public Art Commission? As a community partner, the Public Art Commission is an educational institution that actively support the mission of the City through its services, programs or its ongoing financial support, with end results in positive changes for the city and population. An undisputable love of art in all its forms that the City of Palo Alto has to offer and an extensive experience and knowledge in the field of art, architecture and interior design, urban planning and a great desire to be involved with and support the community that I am living in since 1989. Bds/Commissions -702-23 9/13/2011 5. How would you see your role as board member when recommending policy and working with the Council? If it were necessary to change current roles, how would you approach making such changes? Representing the Public Art Commission, as part of a team of knowledgeable and experienced people that care about the community they represent and the Palo Alto residents who know very well their town and its needs, etc. Based on comprehensive data and information, I will present a proposal regarding the change(s) to the board members and ask for their opinion in order to do what it is in the best interest of the community that the Commission represents. 6. What are the current issues facing the Public Art Commission? A more high-tech informative approach of each and every issue to the Palo Alto community members; also, more people and more resources need to be involved in a constructive way, in order to achieves all goals in a timely manner in the present economy. Art at the Mitchell Park Library and Community Center, the largest public works projects to take place in the City of Palo Alto, that should reflect the function and scale of the designed buildings, has only one work of art for which the artist has been decided -the Bruce Beasley sculpture, etc. 7. What are your feelings about Palo Alto's current inventory/collection of Art in Public Places? What suggestions would you have for increasing the availability of more Art in Public Places? Situated near Stanford University, Palo Alto is a cultural city with lots of history and a charming mixture of tradition and innovation, that could benefit from more public art, outdoors and indoors. Private collections art donations, local artists time and energy donations and public found raising, etc. and most of all community involvement. 8. If appointed, what specific goals would you like to see the Public Art Commission achieve? Education in the arts, especially public arts that are available to the masses is an integral part of the development of each human being, this is why the Public Art Commission should increase the importance of fine arts education by enabling the community to have more access to art and all its disciplines on daily bases, from lines of poetry printed on sidewalks to vast historic murals, or any visual or auditive form of art, since the function of public art is to increase the visibility of public spaces by enriching the public's perception of those spaces. Bds/Commissions -702-23 9/13/2011 Please Return to: CITY OF PALO ALTO PUBLIC ART COMMISSION SUPPLEMENTAL QUESTIONNAIRE Lindsay Russell Name: Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2571 -------------------------------- Date: December 20, 2012 Please print or type your answers to the following questions and submit with your completed application. You may submit additional sheets, if necessary, to complete your answers. 1. Have you attended the following meeting? • Public Art Commission Yes D (Date: _____ -...L) No [2] 2. How did you Learn about the vacancy on the Public Art Commission? Community Group: D Palo Alto Weeldy: D The Daily Post: D website:DYes, Please Identify: ____________________ _ Email from City Clerk: D Library Bulletin Board: D FlyerlBookmark:D Oth PI S 'fy A friend brought it to my attention er, ease peCI : ___________________________________________ _ 3. Describe your involvement in community activities, volunteer and civic organizations: (see attached) 4. What is it about the Public Art Commission that interests you? What qualities, experience and expertise would you bring to the Public Art Commission? (see attached) Bds/Cornrnissions -702-23 9/13/2011 5. How would you see your role as board member when recommending policy and working with the Council? Ifit were necessary to change current roles, how would you approach making such changes? (see attached) 6. What are the current issues facing the Public Art Commission? (see attached) 7. What are your feelings about Palo Alto's current inventory/collection of Art in Public Places? What suggestions would you have for increasing the availability of more Art in Public Places? (see attached) 8. If appointed, what specific goals would you like to see the Public Art Commission achieve? .(see attached) Bds/Commissions -702-23 9/13/2011 Education: Lindsay Russell City of Palo Alto Public Art Commission -APPLICATION December 2012 stanford Graduate School of Business (Stanford, California) Master of Business Administration Class of 2012 Middlebury College (Middlebury, Vermont) Bachelor of Arts, Magna Cum Laude Art History and Economics Class of 2006 San Ramon Valley High School (Danville, California) Class of 2002 List relevant training and experience, certificates of training, licenses, or professional registration: I have an undergraduate degree in Art History from Middlebury College, with a focus on modern and post-modern American art. .Additionally, I have enjoyed meaningful work experiences in both the non-profit and commercial art world. From 2008-2010, I volunteered weekly with the Family Gallery Program at the Museum of Modern Art in New York. This program allows families with young children to participate in a free group tour of MoMA's galleries led by an art educator. As a volunteer, I assisted with group management and led activities in the galleries. Additionally, I spent my summer during business school working at Exhibition A, an early-stage contemporary art e-commerce start-up in New York. I worked with the founder to provide broad business development support and generate ideas across growth strategies, and marketing initiatives and collaborated on high-level strategic visioning and competitive analysis of the art e-commerce landscape. I am keenly interested in the innovation happening in online art sales. Describe your involvement in community activities, volunteer and civic organizations: I volunteer my time to the cause I am passionate about: arts and culture. As mentioned above, I volunteered heavily at the Museum of Modern Art during my years living in New York. Since moving to Palo Alto three years ago, I have enjoyed building relationships with organizations of people equally passionate about the arts. During my time at business school, I participated in the Stanford Board Fellows program, which places MBA students on the boards of local non-profits. I served on the board of "Art in Action", a non-profit dedicated to children's art education, located in Menlo Park. In this role, I worked closely with the Executive Director over the course of a year to optimize the organization's social media marketing strategy. My work culminated in a presentation to the Board of Directors; since then, Art in Action has achieved a 41% increase in Facebook "Likes" and a 130% increase in Twitter followers. Additionally, this year I got involved with the 2012 ZER01 Biennial and volunteered my time at the ZER01 Garage. Finally, I recently attended a #CivicMeet Palo Alto on the future of the city, with Mayor Yiaway Yeh and City Manager James Keene. There, I led a brainstorm on the topic of the future of arts, culture and nightlife in Palo Alto and presented it to the group. I am extremely passionate about Palo Alto -I love this place and fiercely 1 Lindsay Russell City of Palo Alto Public Art Commission -APPLICATION December 2012 believe in the valuable role it plays in our country's narrative. I feel strongly about building and evolving this role into continued future relevance over the long-term, while maintaining all the aspects that make Palo Alto such a wonderful place to call home. To that end, I hope to participate in the Innovation Council that the mayor recently announced. What is it about the Public Art Commission that interests you? What qualities, experience and expertise would you bring to the Public Art Commission? I'm interested in the Public Art Commission primarily because I love Palo Alto and I want to contribute to the civic life of its residents. I would be excited to engage with the ci ty on a new level. I was immediately drawn to this role because I believe it is an ideal way for me to leverage my knowledge of the contemporary art world into a civic role. Additionally, I am interested in this role as part of a broader branding exercise for Palo Alto. The tech start-ups that call Palo Alto home have always been forward-leaning, but it's unclear how Palo Alto itself thinks about the future. As the epicenter of Silicon Valley, it is positioned for critical relevance in the future of the United States, yet it lacks a clear border, clear landmarks, or clear branding. I'm fascinated by Silicon Valley as a geographic "non-place" and consider this an interesting topic for artistic interpretation (in fact, it is the central theme of the ZEROl Biennial). I'm comfortable in many disparate worlds -tech, business, art -which I believe could be an asset in this role. I'm able to combine people from different backgrounds, which is what Palo Alto needs. I'm all about bringing people together and creating experiences that build a culture and introduce new perspectives. I'm incredibly passionate about how contemporary art can playa role in this. In terms of specific expertise, I believe I can, bring the following three things to the Public Art Commission: First, I have in-depth and real-time knowledge of the contemporary art world. I am highly networked across galleries, museums, art fairs, private art dealers, artist communities, and art e-commerce start-ups. I have my finger on the pulse of the art world and that would inform my opinions on the Commission. Second, I have a strong online presence personally as well as the ability to build a robust online presence for the Public Art Commission. I would be happy to create and build a following for Palo Al to's public art programs on Twitter, Facebook, and Instagram which would increase awareness, engagement, and visibility of the Commission's work. Third, I have strong ties to Stanford University broadly, and the Stanford MFA vi sua I arts program specifically. These are passionate young artists working locally and looking for opportunities to build their career, which could make for an interesting partnership with the Public Art Commission. How would you see your role as board member when recommending policy and working wi th the Council? If it were necessary to change current roles, how would you approach making such changes? When recommending policy and working with the Council, I would keep in mind that I won't have the level of insight or context into the situation as more tenured individuals might, nor do I have experience 2 Lindsay Russell City of Palo ~to Public Art Commission -APPLICATION December 2012 in city management. I would view my role as part of a team that contributes to a broad, complex city organization. I would defer to the professional managers of the city and their vision for Palo Alto, while still leveraging my own ideas. I am a natural consensus builder and seek cooperative relationships, starting by default from a place of respect. High-energy, I bring a lot to any team I'm a part of. I'm a natural relationship builder with strong interpersonal skills, and I thrive in cross-team collaborations. If it were necessary to change current roles, I would keep an open mind and a flexible attitude. I'm accustomed to working in dynamic environments where roles, responsibilities, and organizational structure can and do change. I'm interested in the opportunity to think about art in the civic life of Palo Alto residents in a structured way with the support and mandate of the city behind it. The exact title or structure of that role doesn't matter to me. What are the current issues facing the Public Art Commission? In my opinion, the issue facing the Public Art Commission is not anything problematic currently happening, but rather something that is not happening. There is a missed opportunity to strategically use public art to brand Palo Alto as the epicenter of innovation, intelligence, new ideas and creati vi ty. Do we want to be just another wealthy suburb, or do we want to be a global destination? We're both, but the public art feels more the former than the latter. The Public Art Commission plays a critical role in a broader city branding exercise that I believe is crucial to Palo Alto's continued relevance on the global stage. Public art and the word-of-mouth buzz it can create is a lever that Palo Alto can and should pull to excite a younger, hipper demographic and stem the brain drain of start-up talent to San Francisco. The physical environment of Palo Alto and cultural vibe should feel more contemporary and future-facing than it currently does. Another issue I would love to discuss is how strong of a mandate the Public Art Commission has. I noticed that arts and culture was not listed among the Palo Alto City Council's 2012-2013 priorities. Without budget and political support, the Commission is limited in what it can accomplish -which would certainly be an issue. What are your feelings about Palo ~ to's current inventory/collection of Art in Public Places? What suggestions would you have for increasing the availability of more Art in Public Places? I'm impressed with the size of the collection! I'm always pleasantly surprised when I find public art in Palo Alto, and I know that it has been thoughtfully and purposefully placed. However, I feel that Palo Alto's current inventory of public art lacks a certain contemporary aesthetic and lacks a diversity of mediums. Many of the pieces are large outdoor sculptures, such as the "Digital DNA" in Lytton Plaza, "Rrun" on Alma Street, or "Sun Flowers" on California Avenue -which make sense since we have so much great outdoor space and temperate weather on the Peninsula. However, I would love to experiment with new mediums and more experiential artworks. I know there is an initiative to commission more temporary artwork, and I think that is great. I 3 Lindsay Russell City of Palo Alto Public Art Commission -APPLICATION December 2012 would also be interested in experience-based art. For example, the Conflict Kitchen (www.conflictkitchen.org) is a take-out restaurant in Pittsburgh that only serves cuisine from countries with which the U.S. is in conflict, such as Iran, Cuba, or Venezuela. It is a wonderfully unique and thought-provoking commentary on U.S.-international relations -plus a source of great food! And the creator of the Conflict Kitchen is Dawn Weleski, an artist with the Stanford MFA program! I would love to see temporary video installations, crowd-sourced photography exhibits, or more experience-based works like this produced in downtown Palo Alto. Finally, in studying the current collection, I noticed that many of the artists are local from places like Santa Cruz -which is great, but has created a slightly homogenous feel to the collection. There are many global artists coming through the Bay Area art scene from other art centers around the world and calling places like Palo Alto, San Francisco, and Oakland home. It would be exciting to incorporate their different ideas and aesthetics, too. If appointed, what specific goals would you like to see the Public Art Commission achieve? If appointed, my goal would be to build an ecosystem to support a robust creative community in Palo Al to. I f we believe people li ke Barack Obama and Thomas Friedman, the future of America lies in our idea economy. Tech start-ups are one example of this, but artists are another -and they're getting no support. The creative community - artists, creators, makers -is full of ideas but there is no ecosystem to support it like in the start-up world. What about an artist- populated idea incubator? Or a rotating pop-up storefront working studio, a collaborative work space that invites community members in and helps spark ideas and creativity? I'd be interested in seeing the Public Art Commission use its vantage point to create some infrastructure around the creative community. Artists could represent a new economy and a new future for Palo Alto: Palo Alto 2.0. I'm passionate about advocating for artists and the role that the creative community in an idea economy, like how artists and designers are dri ving a new economy in Detroit. I hope to work with the Innovation Council on arts, culture, and nightlife initiatives, and also consider interesting partnerships with the local tech start-up scene. Finally, I would love to see a sophisticated social media presence built for Palo Alto public art, to build, connect, and engage with Palo Alto residents and spark an interactive dialogue. 4 ... ~. rOtt n~ , QC) \'\So.. I ve S ~ . 7~ . v C~er4 ~.CIl~ t,~"lJ.--l/~ .. ~': ~ V CITY OF PALO ALTO Please Return to: Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2571 PUBLIC ART COMMISSION SupPLEMENTAL QUESTIONNAIRE Name: Robin Theil Date: March 14,20011 Please print or type your answers to the following questions and submit with your completed application. You may submit additional sheets, ifnecessary, to complete your answers. 1. Have you attended the following meeting? Yes No • Public Art Commission (Date: ____ ~) x 2. How did you Learn about the vacancy on the Public Art Commission? Community Group:· _x_ Palo Alto Weekly: __ Palo Alto Weekly Online: __ .j t . Email from City Clerk: __ Library Bulletin Board: __ Fogster.com: __ Other, Please SpecifY: 3. . I>escn'be your involvement in community activities, volunteer and civic organizations: For the past two years I have been a Block Preparedness Coordinator for my block. I have gone through over six hours of_ins for this volunteer position and participated in numerous practice exercises. This is s city program that helps to 1r8in and educate local citizens in how to respond in the event of a Dl!ior Earth quake. Another local neighborhood project I've been involved in was in initiating the call for replacing 1he park benches that were removed from a mini-"Docket park" at 1he entrance to Barron Park. It .... ' ... 4. What is it about the Public Art Commission that interests you? What qualities, experience and expertise would you bring to the Public Art Commission? I have always been in1erested in public art. I think it is important that citizens have art in their communities. Public art brings happiness to the many people that get to see it in the course of their average days. I think public art is very important to a community as it adds to the community's civility and culture. I am very artistic. I have taken many different art classes in my lift/Mle. -1- .. . ... 5. How would you see your role as board member when recommending policy and working with 1he Council? If it were necessary to change current roles, how would you approach making such changes? I see my role as representing the citizens of Palo Alto in trying to bring more public art to the City. I see my role as representing all ages, genders, cultures and races that make up the citizens of Palo Alto. I see myroJe as researching all the different possibilities (art forms) of public art available in order to be able to nresept M many different gptiop. in pnbJic art as possible I see my roto as working together with the other Council members; being cooperative; alwaystlying to see the other team membera' .pojnb! of view Making decjsjons on public art II got to be a collaborative Process I don't understand the second question about if it wOre necessary to change roles •.• how would I approach mllking such cbgnges. That would depend on what the _gea were. 6. What a'O the current issues facing the Public Art Commission? I am not tully aware of all of the current issues facing the Public Art Commission. I would imagine fUnding would be ODe of the big issues. I would .IDIe that fipdIDg ayailable sites would be another issue. Another issue might be choosing art that is representative of the diversity of cultures living in Palo Alto. 7. What are your feelings about Palo Alto's current inventory/conection of Art in Public Places? What suggestions would you have for increasing the availability of more Art in Public Places? I like Palo Alto's CUl'l'ent collection of art in public places, but it seems to be concentrated in the downtown area apd Qillfurnia Avenue. rm not aWare ofany PUblic art in Midtown along Middlefield where the Sateway Shopping area is. I am. hoping that there will be some public art included in the new Mitchell Park Library. I Jmow there jl &lready lIQIDe public art in MjtpheU Park The public schools could all use more public art. I have noticed that some (if not most) of the schools do not have any public art on their ground. ' .. .. 8. If appointed. what specific goals woulcl you like to see the Public Art Commission achieve? Including more public art that represents and appeals to the different age groups, i.e. children, teens, seniors. Including art representative of the different cultures of people who live here. Finding ways of getting more public art hi the public schools. -2- CITY OF PALO ALTO OFFICE OF THE CITY CLERK January 14, 2013 The Honorable City Council Palo Alto, California Selection of Candidates to be Interviewed for the Parks and Recreation Commission for Two Terms Ending on December 31, 2015 Attached are six applications submitted for two terms, ending on December 31, 2015 on the Parks and Recreation Commission. Staff requests that the City Council determine which candidates to interview. Interviews will be scheduled as a special meeting with the date to be determined. Copies of all applications are attached. Some applications may be redacted at the request of the applicant. A full set of non-redacted applications will be emailed to Council Members directly. The applicants are as follows: 1. Tricia Baker 2. Ginny Coles 3. Abby Knopper 4. Elaine Poplingher 5. Keith Reckdahl 6. Nounou Taleghani ATTACHMENTS:  Baker Application (PDF)  Coles Application (PDF)  Knopper Applicaiton (PDF)  Poplingher Application (PDF)  Reckdahl Application (PDF)  Taleghani Application (PDF) Department Head: Donna Grider, City Clerk Page 2 ) Please Return to: Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2571 ) ) CITY OF PALO ALTO PARK AND RECREATION COMMISSION SUPPLEMENTAL QUESTIONNAIRE Name: Tricia Baker Date: 6 September 2011 Please print or type your answers to the following questions and submit with your completed application. You may submit additional sheets, if necessary, to complete your answers. 1. Have you attended the following meeting? • Park and Recreation Commission Yes D (nate: <;ep 'l7, 'Zi)J I No [2J 2. How did you Learn about the vacancy on the Park and Recreation Commission? Community Group: D Palo Alto Weekly: D The Daily Post: D Email from City Clerk: D Library Bulletin Board: D FlyerlBookmark: D ) Other, Please Specify: CEO Chamber, Dan Dykwel ) 3. Describe your involvement in community activities, volunteer and civic organizations: Questions answered on separate sheet 4. What is it about the Park and Recreation Commission that interests you? What qualities, experience and expertise would you bring to the Park and Recreation Commission? Bds/Commissions -702-23 8/26/2011 ) ) 5. How would you see your role as commissioner when recommending policy and working with the Council? If it ) were necessary to change current roles, how would you approach making such changes? 6. What are the current issues facing the Park and Recreation Commission? ) 7. If appointed, what specific gollls would you like to see the Parks and Recreations Commission achieve? ) Bds/Commissions -702-23 8/26/2011 ~-------------------'~j-------------------- ) TRICIA BAKER 1810 Fulton Street· Palo Alto, CA (408) 596-1609 • baker.paloalto@.com 3. Describe your involvement in community activities, volunteer and civic organizations During the last decade I have volunteered at diverse organizations, including global, technical and education efforst, from UNESCO and Anita Borg to Habitat for Humanity and Second Harvest. However, my passion for the last five years has been focused on four organizations relating to recreation, education and the environmental interests of Palo Alto. These organizations and my roles include: Canopy (c.anopy.org) -Volunte.e.r in Tr~ Planting (Ea~ Palo Tre.e. I,nitiative.),,6dwcation and OtAtread.l Canopy is a small environmental nonprofit dedicated to planting and protecting trees in parks, schools, and along streets of Palo Alto and neighboring communities Garden Club of Palo Alto (garclenclubofpaloalto.org) -Active Member and Volunteer for Community Outreach, Conservation and Horticulture GCPC f:ncouragf1$ an intIJ,,$( in garc1IJn;ngi hQrtiql,lltLl~, artistic LIse of flow~rs anel plants, cOnservation of natural resources and allied subjects; to educate the community on these subjects; and to assist in the beautification of public areas of the City of Palo Alto and sUfTOunding communities. Gamble Garden (gamblegarden.org) -Member and Volunteer for Community Day, Garden Tours, Holiday Affair and Teas ) The Elizabeth Gamble Garden is a non-:profit community horticulture foundation serving Palo Alto and surrounding communities. Parents Club of Palo Alto I PAMP (pampclub.org) -Online Community Operations, Moderator and Spedal Events Volunteer PAMP is a diverse parents organization (3200+ members) with the goal of enriching the lives of families with children through community outreach programs, educational programs, cultural celebrations and knowledge sharing. 4. What is it about the Park and Recreation Commission that interests you? What qualities, experience and expertise would you bring to the Park and Recreation CommiSsion? I am interested in the Park and Recreation Commission in order to serve the City of Palo Alto through community outreach and alignment and by ensuring continued and enhanced community services. Palo Alto is one of the most unique communities due to its natural resources, community facilities, cultural centers and wonderful parks and libraries serving numerous demographics. I am paSSionate about our community and have a vested interest in it's future due to my 3.5 year old daughter. As part of the Commission I will dedicate my time and contribute my skills including: operations, budgeting, organizing, -teamwork, community engagement, and; \ policy management. -) In my professional career as Director of Operations at Cisco, I am a proven expert at managing cross-functional teams in diverse environments to successfully complete mission-critical projects. I'm a pragmatic, focused professional who implements advanced analytical and problem-solving skills to effectively address business, operational, and policy issues. I quickly assess situations and utilize appropriate responses to meet the specific needs of the business requirement at hand. I fully expect to bring these qualities and my experience to the role of Commisioner. In addition to my professional skills and experience, I am a long-term resident of Palo Alto. I initially moved to Palo Alto in 1994 after graduating fram toll. at The 01'\10 State unlversi1y. A year ago, we moved to Christmas Tree lane, a tight knit community who celebrates many holidays, induding Christmas, through neighborhood solidarity. Finally, my daughter and I, along with my parents who live in Old Palo Alto, enjoy our community resources including, but not limited to: Biking to parks, open spaces including the Baylands, Duck Pond and local farmers markets Attending swim lessons at Rinconada Learning Art at the Art Center Visiting the Mitchell and Children's libraries Taking dance and piano lessons at Cubberly Playing at our neighborhood parks Playing tennis and golf at our local facilities Hiking and running on our local trails '!! And, attending local events such as the Black & White ElaU, May Fete parade and the annual Art Festival My years of living in Palo Alto provide me with a depth of understanding of the City and it's goals. ,5. How would you see your role as commissioner when recommending policy and working with the ) Council? My role as Commissioner would be to advise the City Council on matters relating to the Parks and Golf Division and the Recreation, Open Space and Sciences Division. This would indude planning and policy suggestions for optimally achieving the goals of the Commision, reviewing state legislative proposals related to the Community Services Division and reviewing the City Manager's proposed budget for improvements and operations. 6. What are the current issues facing the Park and Recreation Commission? The Park and Recreation Commi$$iQn oversee a proad $et of i$SllEl$. The top i$$lIe$ today inclydt' Project Safety Net, the Magial Bridge Playground, connections to local parks and recreation areas (including bikeways), the libraries and ensuring alignment to the Master Plan for the Baylands (for example, the Recyding Center) and the related budgets. 7. If appointed~ wbatsPQC;ific. goals would you like to see the Parks and Recreatioos CQmmission achieve? There are many policies initiated and underway for which I envision results and impact during my 3-year term. The specific goals I hope to see realized or major milestones achieved indude: A. Project Safety Net -I hope to see meaningful results based upon the Teen Programs I Youth ) Forums. I envision a drop in teens stress, increased number of effective programs for teens (such as The Drop), and increased trust built with our teens and youth based upon our Boards and Youth Council. Finally, I wish to See continuation of the breadth of programs and partnerships for local youth sports programs. ") B. Magical Bridge Playground -I envision funding complete ($800,000 total), Phase 1 built out arid a ribbon cutting ceremony within the three years. This playground could become one of many unique showcases for Palo Alto's parks and recreation facilities. ) ) C. Local Partnerships -Many of our programs and events are only made possible through strong partnerships with local businesses and non-profits. I envision a continued and evolved list of community partners, aligned to the goals of the Community Services Division. One of my personal goals (and perhaps extendable to tM CoMmisSion) is to continuously learn and eaueate peeple on how to create beautiful, practical xeroscape environments. This would help keep Palo Alto green, reduce C02 and work towards our community interests for conservation. D. Community Garden -While this is very specific, I envision the Community Garden program being enhanced to become a more valued resource. I'd like to see the plots fully utilized and people donating abundant food to organizations such as Ample Harvest. Partnerships with Gamble Garden and the Garden Ctub of Pato woutd hefp achieve this vision. E. Neighborhood Parks -Our parks are a major draw for families with young children. Recently, individuals in local parents groups have reported deep appreciation for the parks and yet occasional incidents of graffiti, overflowing refuse and needed repairs at local parks. I'd like to end my 3 year term with high quality parks and the utmost pride for our parks and recreation facilities and for being a Commissioner. Please Return to: Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2571 CITY OF PALO ALTO PARK AND RECREATION COMMISSION SUPPLEMENTAL QUESTIONNAIRE Name: Virginia ("Ginny") Coles Date: 12-21-12 Please print or type your answers to the following questions and submit with your completed application. You may submit additional sheets, if necessary, to complete your answers. 1. Have you attended the following meeting? Yes No • Park and Recreation Commission c==J (Dme: ~----------~ [l] 2. How did you Learn about the vacancy on the Park and Recreation Commission? Community Group: D Palo Alto Weekly: c==J The Daily Post: D Website: DIfyeS, please identify website: _______________ __ Email from City Clerk: [l] Library Bulletin Board: D FlyerIBookmark: D Other, Please Specify: _________________________ -'--__ 3. Describe your involvement in community activities, volunteer and civic organizations: Long-time resident of Palo Alto (30+ years, including attending Stanford University for 7 years) Two children (now 16 and 12) who have attended Palo Alto public schools and have participated in many parks and recreation events, summer camps, etc. Extensive volunteer work at Walter Hayes Elementary School and Jordan Middle School Member of University Club of Palo Alto, where I served on the Fitness Committee and was an active volunteer in the UC swim programs when my daughters were swimming competitively. Board member and Treasurer of non-profit Association of Corporate Counsel, San Francisco Bay Area chapter 4. What is it about the Park and Recreation Commission that interests you? What qualities, experience and expertise would you bring to the Park and Recreation Commission? My family has spent countless hours enjoying Palo Alto's wonderful park system and participating in other recreational activities. The Commission has a unique opportunity to provide healthy, wholesome programs to the youth in Palo Alto to help build a life-long interest in recreational activities. These . programs and services can be especially valuable for teens, to give them an alternative to unstructured "hanging out" with friends that can often result in dangerous behaviors. I would bring my leadership and teamwork experiences in other organizations to the Commission. My training as a lawyer has developed my skills of being able to assess a situation, get to the heart of the ----matterqaickly-anctsolve-problems-creatively. ·I·think·outsidetlfihe box,·never feeling·constrained··by1he "this-is1he way we have always done it" perspective. I'm articulate; and in group settings I often seem to express points of view that others tell me they were thinking, but didn't know how to express. Bds/Commissions -702-23 9/13/2011 5. How would you see your role as commissioner when recommending policy and working with the Council? Ifit were necessary to change current roles, how would you approach making such changes? I'm not familiar enough with the Commission's current protocols for recommending policy changes arid working with the City Council to be able to answer this questions. 6. What are the current issues facing the Park and Recreation Commission? Providing programs and services to the community that are timely, relevant and meet the evolving desires of a diverse community, all in a cost-efficient manner. 7. If appointed,· what specific goals would you like to see the Parks and Recreations Commission achieve? Achieving a reputation among teens in the community of for being "cool" while providing programs that their parents view as fun and safe. . Bds/Commissions -702-23 9/13/2011 Please Return to: CITY OF PALO ALTO PARK AND RECREATION COMMISSION SUPPLEMENTAL OUESTIONNAlRE Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2571 Name: Aloia ~ !{ n (DOpd --~~-=~~--~~-=~~~/------------ Date: __ /_J--L/_/_g---~/_I_L-______ _ Please print or type your answers to the following questions and submit with your completed application You may submit additional sheets, if necessary, to complete your answers. 1. Have you attended the following meeting? • Park and Recreation Commission Yes c==J (D&e: ------------~ No ~ 2. How did you Learn about the vacancy on the Park and RecreMion Commission? Community Group: D Palo Alto Weekly: D The Daily Post: D Website: DIfyeS, please identify website: _________________________ _ Email from City Cletk: D Libnuy Bulletin Board: c==J FlyerlBookmark: D Other, Please Specify: \yo", FC;gfer: Cl-Fr/~V1.d iold pv}.e, . , 3. Describe your involvement in community activities, volunteer and civic organizations: ~ee cvtt-CZcMeLL·- 3. Describe you 1Dvolvement 1D commlUlity activities, vollUlteer and cIvic or~lJlI.UatioZJS: I was extremely active in the Duveneck Elementary School community, culminating as co-President of the Duveneck PTA Board. During the three years prior, I was co-President-elect andVP, Ways and Means. I am. currently enrolled in the 2012/13 class of Leadership Palo Alto and serving my second year on the Public Information COmmittee for.the Jewish Family Children Services organization. I recently worked with Melissa Baten Caswell on her successful re-election campaign for PAUSD school board. 4. 'WIJat is It about tile Park and .Beoreatio.D ColIJmisslo.D t1Jat 1Dterests you? fiat quallties, experience and eqertlse TIITOuld you brlzJ6 to tile Park and Becreatlo.D Commisslo.D' I bring to the CommiSSion the perspective of a park and open space user. I am. a mother of an II-year old who has always enjoyed the local parks. We live between Eleanor Pardee and Ricona.nda. We have a dog who enjoys the park too (on leash I ). We are an "outdoors" family and have participated in camping trips to Foothills Park With Cub Scouts, nature hikes, etc. I am extremely passionate about preserving open space and the environmental impact of optimal usage of our natural resources. I also have an interest in participating on a Commission that can provide policy reoommendations for the various needs of the diverse Palo Alto community (babies to seniors). 5.lIow would you see yow:-role as commissioner when recommending policy and working TllTitb. tb.e Council? The commissioner's role is to be taken very seriously given its impact on economic viability, property value, and general community well-being. The access that we provide for current and future residents to open space, parks and services provides tremendous "livability" benefits to our city. I would bring that serious and important perspective to my decision making when making policy recommendations to the Council. If it TllTere necessary to cbauge roles, how would you approach . maldng such cb.anges? If by change you mean to say, am I amiable and open minded to working on other projects, I would answer "yes". Having worked in corporate America in the media industry for 15 years it required a flexibility, open mindedness and resiliency in order to achieve success. I consider myself always open to change if it is based on fact and necessity. 6. 'W'lJat are tb.e current issues facing the Parle and Becreation Commission? My sense is that the largest issue for the Commission is the necessary analysis and review of the Palo Alto park system for the preparation of a long-range Parks and Recreation Master Plan to be provided to the Council. Other action items on the Commission agenda are the golf course reconfiguration, field use issues and always the dog park issues, among others. 7. I£ alllJOmted, w.lJat specUfc Soals TN'Ould you like to see tlJe Parks IUJd B.ecreatioZ1S Oommission acJdeve' I think this a diffioult question to answer until I have the opportunity to roll up my sleeves and delve into the issues ourrently on the Commission's agenda. From a personal perspeotive, I woUld like to have the issue of more open spaoe available for off-leash dog areas disoussed. Additionally, I want 'to make sure that the Park and Reoreation division does not suffer finanoially in this time of tight fisoal budgets for the City. Please Return to: Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2571 \ l \ Y CITY OF PALO ALTO PARK AND RECREATION COMMISSION SUPPLEMENTAL QUESTIONNAIRE Name: Poplingher Elaine Date: 12.16.2012 Please print or type your answers to the following questions and submit with your completed application. You may submit additional sheets, if necessary, to complete your answers. 1. Have you attended the following meeting? Yes No • Park and Recreation Commission D (Date: _____ --.L) [l] 2. How did you Learn about the vacancy on the Park and Recreation Commission? Community Group: D Palo Alto Weekly: D The Daily Post: 0 Website: [lJlfyeS, please identifY website: _c_it_yo_f_p_a_lo_a_lt_o_.o_rg ______ _ Email from City Clerk: D Library Bulletin Board: D FlyernBOOkmark:~ Other, Please SpecifY: _________________________ _ 3. Describe your involvement in community activities, volunteer and civic organizations: Mid Peninsula Educational Center, Stratford School -taught classes: Why buildings stand up and why buildings fall down, How to build the tallest structure 4th grade, Bridges and other structures build to span 6th grade Palo Alto Art Center -special events, art exhibitions organization Palo Alto Historical Association -Main Library files organization 4. What is it about the Park and Recreation Commission that interests you? What qualities, experience and expertise would you bring to the Park and Recreation Commission? It is committed to improving the quality of life for all the Palo Alto residents by expanding access to the natural beauty, rich culture and history, recreational and educational opportunities offered by 162 developed acres of urban park land, almost 4000 acres of open space, all landscaped areas for libraries, community centers, business districts, etc. An unconditional love and respect for nature, an extensive experience and knowledge in the field of art, architecture and interior deSign, urban planning and a great desire to be involved with and support the community that I am living in since 1989. Bds/Commissions -702-23 9/13/2011 ) 5. How would you see your role as commissioner when recommending policy and working with the Council? If it were necessary to change current roles, how would you approach making such changes? Representing the Park and Recreational Commission, as part of a team of knowledgeable and experienced people that care about the community they represent and the Palo Alto residents who know very well their town and its needs, etc. Based on comprehensive data and information, I will present a proposal regarding the change(s) to the board members and ask for their opinion in order to do what it is in the best interest of the community that the Commission represents. 6. What are the current issues facing the Park and Recreation Commission? A more high-tech informative approach of each and every issue to the Palo Alto community members; also, more people and more resources need to be involved in a constructive way in order to achieves all goals in a timely manner in the present economy and under the global climate changes~ Other issues: the Arts and Innovation District Master Plan and its implications with regards to the EI Camino Park, if the Julia Morgan Building I McArthur is to be relocated. Accessibility for all population group ages with special needs for more of the open spaces, parks and recreational area, as provided for the Magical Bridge Playground in Mitchell's Park. 7. If appointed, what specific goals would you like to see the Parks and Recreations Commission achieve? Education about open space, parks, recreational areas, etc., as part of the environment in which the Palo Alto community members live and its necessary measures to protect it, should be an integral part of each and every individual knowledge. Same with the Global Climate Changes, Air Pollution, etc., and their consequences, so all citizen would bring their contribution to protect and save our open spaces, and parks, landscaped and recreational areas. The Park and Recreation Commission should commit to the improvement of the quality of life for the Palo Alto community by expending the access to the natural beauty, rich culture and history, recreational and education opportunities in order for people to explore, recreate and relax in open space as part of the development of any human being. Bds/Cornrnissions -702-23 9/13/2011 Please Return to: Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2571 CITY OF PALO ALTO PARK AND RECREATION COMMISSION SUPPLEMENTAL QUESTIONNAIRE Name: Keith Reckdahl Date: October 11, 2012 Please print or type your answers to the following questions and submit with your completed application. You may submit additional sheets, if necessary, to complete your answers. 1. Have you attended the following meeting? • Park and Recreation Commission Yes D (Date: _____ --1.) 2. How did you Learn about the vacancy on the Park and Recreation Commission? No o Community Group: 0 Palo Alto Weekly: D The Daily Post: 0 Website: DIfyeS, please identify website: ____________ _ Email from City Clerk: 0 Library Bulletin Board: D FlyerlBookmark: D Other, Please Specify: suggested by Jen Hetterly 3. Describe your involvement in community activities, volunteer and civic organizations: Member of the Charleston Meadows Association board the last 4 years 4. What is it about the Park and Recreation Commission that interests you? What qualities, experience and expertise would you bring to the Park and Recreation Commission? We have two children (ages 11 and 13) and we extensively use the city parks and open space. Our kids rely on our neighborhood parks for recreation, so we understand the importance of city parks and how they affect our quality of life. I periodically bike to work, which has made me much more aware of the advantages and challenges of bicycle commuting. For my kids, their bikes are the lifeline to the outside world. Without safe and convenient bike routes, they would require much more parental driving, which would reduce their independence and increase car traffic. Bds/Commissions -702-23 9/13/2011 5. How would you see your role as commissioner when reconunending policy and working with the Council? If it were necessary to change current roles, how would you approach making such changes? I see my role as a community conduit and an impartial advocate of park issues. The City Council maintains a big picture view, while the Park and Rec staff are working in the trenches. I would help the staff shape the Council's vision, while also helping the staff to implement the Council's vision within the departments' many constraints. 6. What are the current issues facing the Park and Recreation Conunission? The increasing population of Palo Alto and the valley is increasing the demand on Palo Alto parks and recreation, while tight city budgets make it difficult to maintain the status quo, much less improve facilities or programs. For example, the huge demand for athletic fields and the limited land and money to build additional fields. Similarly, Arastradero Preserve has become so popular that it is difficult to find parking on weekends. 7. If appointed, what specific goals would you like to see the Parks and Recreations Commission achieve? Making Palo Alto even more bike friendly, by increasing the number of bike routes and increased number and quality of bike racks in parks and shopping areas. Improving shade for spectators at athletic fields. Constructing a covered play structure, to provide recreation for stir-crazy kids on rainy days. Bds/Commissions -702-23 9/13/2011 5. How would you see your role as commissioner when recommending policy and working with the Council? Ifit were necessary to change current roles, how would you approach making such changes? 6. What are the current issues facing the Park and Recreation Commission? 7. If appointed, what specific goals would you like to see the Parks and Recreations Commission achieve? Bds/commissions -702-23 9/13/2011 CITY OF PALO ALTO OFFICE OF THE CITY CLERK January 14, 2013 The Honorable City Council Palo Alto, California Selection of Candidates to be Interviewed for the Planning and Transportation Commission for One Unexpired Term Ending on July 31, 2014. Attached are eight applications submitted for one unexpired term, ending on July 31, 2014 on the Planning and Transportation Commission. Staff requests that the City Council determine which candidates to interview. Interviews will be scheduled as a special meeting with the date to be determined. Copies of all applications are attached. Some applications may be redacted at the request of the applicant. A full set of non-redacted applications will be emailed to Council Members directly. The applicants are as follows: 1. Jeff Brown 2. Leonard Ely 3. Tzuchi Fan 4. Kyu Kim 5. Carl King 6. Doria Summa 7. Elaine Uang 8. Henry Wong ATTACHMENTS:  : Brown Application (PDF)  : Ely Application (PDF)  : Fan Application (PDF)  : Kim Application (PDF)  : King Application (PDF)  : Summa Application (PDF)  : Uang Application (PDF)  : Wong Application (PDF) Department Head: Donna Grider, City Clerk Page 2 12/20/2012 12:33 5505040350 TSA PAGE 01/05 [Iff I1</tN:7 /Yl J SS ION --11 ':::..,. /6 ~ kONIIf 4 0-DtJ 54LVt;;.S CtR5'o) 3;ZZ-5(;,3/ f1'<OffJ,' JE PF 6 (Go fA) f\{ l f.t:, S-D) 6 D tl --(g (9 L / tit) Ice parr: 12/20 /12 (J /J.(ft;. :5 % Po LL oW; S f';1 ~-o > C>e:J ) ) CITY OF PALO ALTO PLANNING AND TRANSPORTATION COMMISSION Please Return to: Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2571 SUPPLEMENTAL QUESTIONNAIRE NaDie: Leonard W. Ely III Date: August 17, 2011 Please·print or type your answers to the following questions and submit with your completed application. You may submit additiQDal sheets, ifnecessary, to complete your answers. 1. Have you attended the following meeting? . Yes • Planning & Transportation Commission!.... (Date: various No ) 2. How did you Learn about the vacancy on the Planning and Transpmtation Commission? Rotary Club; _ Emaif from City Clerk: X . Palo Alto Weekly; _ Palo Alto Weekly Online: _ Fogster~com: _._ . ~,~S~;_.·_· __ ~ ______________________ ~ __________ __ 3. Describe.yout involvement in community activiti~, vohmteer and civic organizations; . I have been involved with various Non~PrOfits in Palo· Alto. Graduate of leadership. Palo AltO. sat on the CommunItY BlOCK Grant grant committee. Curreritlya member of Rotary C' 'rrentiy Co-Treas, ,rer of the Walter hays PTA 4. What is it about the Planning & Transportation Commission that interests you? What qualities, experience and expertise would you bring 10 the PJamUng & Transportation CommissiOn? I would bring 61 years of living, going to school and working in Palo Alto. I believe that the planning process needs to have hlndslgm as well as taKing a longer range ylew I" Irtber believe that decisioDS Deed to be made and changed if Decessary to fd: the community good. We can't always have the one size fits all mentality. ~ feel that I would .brlng a dIfferent outlOOk to the process. ) ) ) ., ) 5. How would you see your role as board member when recommending policy and working with the Council? If it Wete necessary to change current roles, how would yoU 8pproach makiIig S1:Wh chang\lS? I firmly believe that the Council should give direction to the Planning and lransportaflon Committee and men It Ismls committee's charge to follow that dirediop or advise the COllncll why their position is POt ip the IQPg term best iPterest ofthe city. .. 6. What are the ~t issues facing the Planning & Transporta~on Commission? Stanford. Housing and personal property land use. Cubberley. Traffic. 7. If appointed, what specific goak would you like to see the Planning & Transportation Commission achieve? I would like to start by trying to have the committee think libout the community as a whole. D~slons need to be made based on me 10ta!" communitY rather man small vocal groups or persons I wOllid like to worktoward givipg tbe "ptBnpers" more responsibility in interpret the "Code". I would also like to see the local neighbors InvolVed or at least consulted In matteN or design andtor wrlances. . .J 5. How would you see your role as board member when recommending policy and working with the Council? If it were necessary to cbange current roles, how would you approach making such changes? A well planning can benefits huge population in the city and can even benefit other cities too. In am assigned to ;.' •. ··jj;'"·::=:Q;·.vru~.l_41i,*LtQ,DJW ;ithe·.gU·JW;d(i~"e.·:AltO . ·=nts :a.,: I want to gather residentsF opiril0ri~ :d'ideas arid pres!rit them to the CollriCiLI;Q liKe to ." make sure that the COllncil really understands what are the opinions from the residents. And make the best suggestions to the Council so that the Council can make a good or right decision for the residents. If needto make any changes, fwould provide sufficient reas()rito make charigeffiat is bas~d on research and . . interview with residents and collecting their opinions. 6. What are'the current issues facing the Planning & Transportation Commission? Environmental review for the city constructions, both for public and residential. Lack of frequent and high capacity public trarisportations.. High demanding in a.llocate more spaces for elementary schools • . Comprehensive planning and amendment. 7. If appointed, what specific goals would you like to see the Planning & Transportation Commission achieve? A clear communication channel build up between re~i.d~ts and the Commission -... Do Dlore public promotion thru mass media to let people know what is Cotnnlissionhavedolle for the residents and the projections what we want the city to be like? Clear reports on wha.t have been done by the conrinissionto the public such as city construCtions,new development in Palo Alto andete. Bds/Commissions -702-23 9/1/2011 CITY OF PALO ALTO PLANNING AND TRANSPORTATION COMMISSION Please Return to: Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2571 SUPPLEMENTAL OUESTIONNAIRE Name: Kyu Young Kim Date: 12117/2012 Please print or type your answers to the following questions and submit with your completed application. You may submit additional sheets, if necessary, to complete your answers. 1. Have you attended the following meeting? Yes No • Planning & Transportation Commission D (Date: _____ --J.) lZI 2. How did you Learn about the vacancy on the Planning and Transportation Commission? Rotary Club: D Palo Alto Weeldy: D The Daily Post: D Email from City Clerk: D AlA: D FlyerlBookmark: D Other, Please Specify: rBlock) C. H'f vJe.l:8ite.. 3. Describe your involvement in community activities, volunteer and civic organizations: Would very much like to get involved in the City of Palo Alto as someone who has grown up in this city we call home. I am currently attending and serving at New Community Baptist Church in Mountain View. I serve as a kindergarten teacher, cell small group leader, and as a church facilities coordinator. While living in Korea, I volunteered at the Bundang Community Center teaching English to less privileged children in the area outside of Seoul. 4. What is it about the Planning & Transportation Commission that interests you? What qualities, experience and expertise would you bring to the Planning & Transportation Commission? I believe I bring a fresh face and perspective on Planning & Transportation in the City of Palo Alto as a younger candidate for a position on the commission. As an architectural deSigner, I have always been interested in Planning & Transportation issues, especially in analyzing how to solve problems from a design-thinking point of view. I also actively follow Planning & Transportation news from around the world and having lived abroad in a diverse range of places, I believe my experience with Planning & Transportation globally contributes to what I can bring to the commission here in Palo Alto. Bds/Commissions -702-23 9/1/2011 5. How would you see your role as board. member when recommending policy and working with the Council? If it were necessary to change current roles, how would you approach making such changes? As a potential board member, I see my role as a servant and will be servant-minded. In making recommendations to the Council, I realize I am not the ultimate decision maker, but that it will be my job to fully think through each and every situation brought to the commission and to make a recommendation that best serves the City of Palo Alto and its residents. If it were necessary to change current roles, I would approach it in a way that is respectful of the parties involved and in a way that is most efficient and productive. I realize that being picked for a position on the commission is not for leisure and namesake, but in order to best serve and in making the best recommendations for the City of Palo Alto. 6. What are the current issues facing the Planning & Transportation Commission? Some of the main issues facing the Planning & Transportation Commission right now are centered around downtown development. Beginning with parking, the city finds itself lacking enough parking spaces for those who currently work downtown leaving residents in the immediate surrounding areas frustrated that their typically quiet neighborhoods are clogged with parked cars. To further frustrate many residents, the downtown area has been rapidly developing more office spaces, but not necessarily more parking spaces for those who will work in those buildings. There are also ideas of making part of University Avenue a pedestrian parkway, a proposed office & movie complex on the site of Julia Morgan's historic building, and the proposed pedestrianlbike bridge over 101 to replace the current underpass to the baylands off West Bayshore Road. 7. If appointed, what specific goals would you like to see the Planning & Transportation Commission achieve? If apPOinted, I would specifically like to see the commission change and evolve for the better of the city's future in a way that is actively productive. While Palo Alto is a historic city and the past and present civil servants have done their best to bring us where we are, I believe the city needs to continue to adopt ways of setting itself up to prosper and succeed in being a place our residents are proud to call home, as the birthplace of the Silicon Valley. Though some might wish for Palo Alto to stay only as populated as it is (or even was), it is inevitable that our City will continue to grow. We must make the best recommendations to the Council to not only prosper in growth, but so that even as we're growing, we're always staying one step ahead. Bds/Commissions -702-23 9/1/2011 CITY OF PALO ALTO PLANNING AND TRANSPORTATION COMMISSION Please Return to: Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2571 SUPPLEMENTAL QUESTIONNAIRE Name: Carl King Date: 12/20/2012 Please print or type your answers to the following questions and submit with your completed application. You may submit additional sheets, if necessary, to complete your answers. 1. Have you attended the following meeting? Yes • Planning & Transportation Commission [{] (Date:· 9/9/2012 ) No D 2. How did you Learn about the vacancy on the Planning and Transportation Commission? Rotary Club: D Palo ~lto Weekly: D The Daily Post: D I Email from City Clerk: [{] AlA: D FlyerlB~Okmark: D Other, Please Specify: _________________________ _ 3. Describe your involvement in community activities, volunteer and civic organizations: Sempervirens Fund Board Member 2007 -present Project GO Volunteer Raft Guide 2008-present YMCA and NJB Youth Basketball Coach 2006-present . Member Palo Alto Rotary Club Palo Alto Parks and Recreation Commission 2007-2010 Hidden Villa Farm Tour guide 1993-1994, 2006-2008 Hidden Villa Board Member 1995-2003, Board Chair 1998-2002 Acterra Be the Change Program Advisor 2006-2010 Leadership Midpeninsula mentor 1999 Leadership Midpeninsula graduate class of 1994 . 4. What is it about the Planning & Transportation Commission that interests you? What qualities, experience and expertise would you bring to the Planning & Transportation Commission? I grew up in the sprawl of the Sacramento area, then lived in .the well-planned density of Berkeley, at which time I became aware of the choices and impacts of urban planning. I've taken interest in Palo Alto's planning decisions as it has changed since I moved here in 1984, when downtown was basically deserted at night. I believe we are struggling to figure out how and where to develop density in a community and transportation infrastructure that were originally developed as suburban use. Our historic 6000 square foot lot density creates a challenge in implementing mass transit options, and in avoiding degradation of vehicle travel for many residents and workers as a result of increased density .. 1 have developed competence in board and commission work over over 15 years of participation and leadership. I am analytical and typically act independently but with goal of consensus, and have a healthy skepticism to avoid the groupthink that can beset collegial volunteer bodies. Bds/Commissions -702-23 9/1/2011 5. How would you see your role as board member when recommending policy and working with the Council? If it were necessary to change current roles, how would you approach making such changes? In my previous role as Parks and Rec Commissioner, I developed my opinion that a commission's task is to actively encourage and listen to public and stakeholder input, then review and analyze an issue or policy (or in the case of the PTC, project) to the best of our abilities to produce for Council a summary, and where appropriate, consensus recommendation of the commission, supported by the source information and analysis, as well as the dissenting opinions within the commission. Direction from Council can avoid wasted efforts by commissions, but due to Brown Act limitations and typicallydiverse opinions of council members, it is not practical to expect clear direction prior to analysis of specific issues. 6. What are the current issues facing the Planning & Transportation Commission? Parking issues associated with continued growth, Highway 101 Pedestrian Bicycle Overpass, Support to the Council of their review of the Transportation Section of the Comp Plan update, Draft Density Bonus Ordinance, 27 University Master Plan, Palo Alto Golf Course proposed changes, Jay Paul Company proposal for CA Avenue District 7. If appointed, what specific goals would you like to see the Planning & Transportation Commission achieve? 1) Clarity of the planning process for stakeholders: I have personal experience from building my residence in Palo Alto, and from observation of other developments, of the frustration and costs that can beset a WOUld-be individual or professronal developer when the development process lacks clarity. 2) Alignment of any land use changes with the needs of the City. particularly as articulated by the Comp Plan. Unless major changes occur, we have significant development of housing required to meet ABAG goals. I hope we can use any upzoning to encourage meeting the goals, ideally with housinf units unlikley to add significant pressure on schools and infrastructure. 3)Encouragement of bicycle safety and use. I typically use my bike for my sole transportation 3-4 days a week, and would like to see policies which encourage Palo Alto as a bike commuting leader. Bds/Cornrnissions -702-23 9/1/2011 Gonsalves, Ronna From: Sent: To: Carl King <ck3@mayfieldmortgage.com> Thursday, December 20, 2012 5:29 PM Gonsalves, Ronna Subject: RE: Planning and Transportation Commission Attachments: PTC Application-Supplemental-Consent-Updated 8-11.pdf Thanks, wet signature to come. Warm Regards, Carl King, MBA Mortgage Advisor http://www.linkedin.com/in/carlking CA ORE License 01155622 I NMLS 285941 Phone: 650.494.7470 Fax: 800.301.9921 (my personal efax; no cover sheet required) From: Gonsalves, Ronna [mailto:Ronna.Gonsalves@CityofpaloAlto.org] Sent: Wednesday, December 19, 2012 10:03 AM To: Carl King Cc: Gonsalves, Ronna Subject: RE: Planning and Transportation Commission Thanks for the email! I will attach an application. You are welcome to fill it out and email it to me prior to the deadline (5:30 Thursday). However, if you do not have an electronic signature I will need the hard copy with a wet signature at some point. I'll take the electronic one to get you in and we can work out getting the wet signature at some point after the holidays. Thanks! Ronna Jojola Gonsalves 650-329-2267 From: Carl King [mailto:ck3@mayfieldmortgage.com] Sent: Wednesday, December 19, 2012 9:42 AM To: Gonsalves, Ronna Subject: Planning and Transportation Commission Hi Ronna, Please send me the application packet. Can it be delivered electronically or must be hand- delivered by 5:30 Thursday? Thanks! 1 Warm Regards, Carl King, MBA Mortgage Advisor http://www.linkedin.com!in!carlking CA ORE License 011556221 NMLS 285941 Phone: 650.494.7470 Fax: 800.301.9921 (my personal efax; no cover sheet required) 2 CITY OF PALO ALTO PLANNING AND TRANSPORTATION COMMISSION Please Return to: Office ofthe City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2571 SUPPLEMENTAL QUESTIONNAIRE Name: Doria Summa Date: 12/19/2012 Please print or type your answers to the following questions and submit with your completed application. You may submit additional sheets, if necessary, to complete your answers. 1. Have you attended the following meeting? Yes No • Planning & Transportation Commission [l] (Date: ______ --L D 2. How did you Learn about the vacancy on the Planning and Transportation Commission? Rotary Club: D Palo Alto Weekly: D The Daily Post: D Email from City Clerk: [{] AlA: D FlyerlBookmark: D Other, Please Specify: ____________________________ _ 3. Describe your involvement in community activities, volunteer and civic organizations: I have attended many City Council, Board and Commission meetings. I am presently serving as a member of the Development Center Customer Advisory Group (DCAG) as a resident representative. I have been engaged In the College Terrace Residents' Association (CTRA) for many years as a volunteer and as a board member. I have attended and contributed to many community meetings ranging from City Council meetings to Planning and Transportation Committee Meetings to Palo Alto Neighborhoods (PAN) meetings. I have worked with city staff to help design and implement the College Terrace Traffic Calming program and the College Terrace Residential Parking Permit Program. I also worked on the Califomia Avenue tree replanting and maintenance. I am a Canopy volunteer and I worked on a special committee for Wildlife Rescue. I worked with Planning staff to evaluate parking needs In the mixed use (CN) zone of College Terrace. I recently served as a representative of the DCAG on a panel to interview Chief Building Official applicants. I am the CTRA representative to the Stanford Community Resource Group (CRG). I avail myself of opportunities to lean more about planning and transportation issues, and the history and natural environment of Palo Alto and the surrounding region. I have been asked by three different Palo Alto neighborhood associations to consult on parking and planning issues. 4. What is it about the Planning & Transportation Commission that interests you? What qualities, experience and expertise would you bring to the Planning & Transportation Commission? As a 25-year resident of Palo Alto, I have a great appreciation for the quality of life that we enjoy. We are fortunate to live in a setting of tremendous natural beauty and we are the beneficiaries of thoughtful planning by previous city administrations. I believe that . maintaining our quality of life requires a careful balance among the needs of businesses, residents and the environment. I am interested in working on the Comprehensive Plan update to reflect this balance. I am passionate about maintaining these high standards for all stakeholders. Through my civic engagement, I have gained a deep appreciation of the importance of good planning and the complexity of the decisions involved. Bds/Commissions -702-23 9/1/2011 5. How would you see your role as board member when recommending policy and working with the Council? If it were necessary to change current roles, how would you approach making such changes? I believe that the primary role of a commission member is to evaluate proposed projects with respect to their consistency with City policies and the Comprehensive Plan. The commission serves as an advisory body to the City Council on planning and transportation matters including land use, development and zoning. The City Council has decision making-authority on all of these matters. 6. What are the current issues facing the Planning & Transportation Commission? ·1 believe that some of the key issues currently facing the Planning and Transportation Commission are: -The Comprehensive Plan Update -Regional housing needs -High-speed rail, Caltrain and the intermodal transit center -Transporation and parking needs; multi-modal transporation -Implementation of the bike and pedestrian Master Plan 7. If appointed, what specific goals would you like to see the Planning & Transportation Commission achieve? The commission should work to maintain the appropriate balance between the built environment and the natural environment --that is enabling economic vitality and growth while preserving the character and "feel" of Palo Alto. I would like to see the commission promote more community involvement; getting members of the public more involved in planning issues in a positive way early in the process. Bds/Commissions -702-23 9/1/2011 BOARD AND COMMISSION APPLICATION SUBMIT TO: Office of the City Clerk 250 Hamilton Avenue, Palo Alto, CA 94301 (650) 329-2571 Please print or type answers to all questions and place NI A in those areas that do not apply. Be sure that you fill out the attached supplement and return it with your signed application. NAME: Uang Last Elaine First RESIDENCE 321 Kipling Street ADDRESS: ______ ~~~ ____________________ __ Street Palo Alto CA City State Education: BA, Human Biology, Stanford University, 2000 M.Arch, University of Virginia, 2006 94301 Zip HOME PHONE: 650.384.0692 WORK PHONE: 4152521441 x22 CELL PHONE: 650.814.9882 EMAIL: elaine.uang@gmail.com List relevant training and experience, certificates of training, licenses, or professional registration: LEED AP Bds/Commissions -702-23 9/1/2011 Please print or type your answers to the following questions and submit with your completed application. You may submit additional sheets, if necessary, to complete your answers. 1. Have you attended the following meeting? Yes • Planning & Transportation Commission [l] (Date: 12/12/2012) No D 2. How did you Learn about the vacancy on the Planning and Transportation Commission? Rotary Club: D Palo Alto Weekly: D The Daily Post: D Email from City Clerk: D AlA: D FlyerlBookmark: D Other, Please Specity: City of Palo Alto Website 3. Describe your involvement in community activities, volunteer and civic organizations: Palo Alto Farmers Market, Board member, 2007-2010, part of a 15-20 person board responsible for the operations of the downtown Palo Alto Farmers Market, located at Gilman and Hamilton Streets. Active member for the marketing and education committees, responsible for web development graphic design, developing events and programs such as the Customer Appreciation day, local chef demonstrations, and book signings. Architecture for Humanity, SF Chapter, Co-founder and Steering Committee Member, 2009-2011 Architecture for Humanity chapter to develop and promote opportunities for local designers to engage in built projects that benefit local communities in need. Project examples include the conceptual design of People's Community Market in West Oakland, furniture for farmers markets, pocket park and streetscape renovations in the Portola neighborhood of San Francisco, murals around the Mission district Rebuilding Together, Volunteer in Oakland in 2007, volunteer in San Francisco in 2008 and2012. 4. What is it about the Planning & Transportation Commission that interests you? What qualities, experience and expertise would you bring to the Planning & Transportation Commission? I am trained as an architect, but have always fell that my strength has not been In designing buildmgs, but underatendlng the broader contexts in which we situate our buildings· urban and landscape design, transportatlon Issues, land use, pubUc space. While the bulk of my architectural design experience Is residential (affordable housing and single family), in that capaciIy, I'Ve had eJCpOllUre to several municipal zoning codes, planning and building departments In the Bay Area, which has led me to conclude that local government Is an Important force In shaping our buHt environment. I'm very Interested how local government fosters that process, questioning how policy and codes can lneent or discourage good design and built form, and following the process of how these policies develop. I'm also curious what long term strategies Palo Alto has for maintaining a good public sphere for all residents, empioyeesiemployers, businesses and visitors to enjoy, and would very much be Interested In taking an active role In participating In that process here in Palo Alto. continuing efforts I began in graduate school. While pursing my M.Arch at the University of Virginia, I was actively involved in meny efforts to develop new ways to Improve the built environment of the Univefslty. With several planning and landscape architecture students, I helped found the Green Grounds Group, an organization dedicated to promoHng SUSlainable development on campus. I also worked in the Office 01 the Architec:l, (which was led by David Neumann the lormer University Archltec:l of Stanford 1989-2003). With the plamlng stsff and asslstsnce of many Green Grounds members, we Inldated a preliminary bicycle usage and pathway study for the UVA and greater Chilriollesville. II selected for the Planning and Transportation Commission, I feel that my academic and professional background and general personal Interests would be well suited to understanding many of the complex Issues being brought forth. Bds/Commissions -702-23 9/1/2011 6. What are the current issues facing the Planning & Transportation Commission? Managing growth -Palo Alto is blessed to be a desirable community. But particularly in areas of density, it is important to be able keep attracting/retaining a good mix of businesses, get ahead of circulation issues such as traffic, parking and transit to handle the influx of employees and visitors, while maintaining livability & vitality for residents, planning for and providing necessary infrastructure (roads, bridges, multimoda.1 paths, utilities, water supply and wastewater management) Several large development projects throughout the city are raising many of these issues at once, and PTC should serve as a strong force in creating the right planning framework to help staff & City Council assess these projects. Regional Transportation Connectivity· As a major employment hub with significant retail centers, Palo Alto sees a huge influx of people each day, and the connectivity between Palo Alto and the surrounding municipalities is critical to the city's continued viability as successful employment and retail node. There is a critical need for dialogue with regional planning and transportation groups and more sophisticated ways to evaluate current development, transport preSSUres within city limits and connectivity to surrounding areas. PTe is heavily reliant on staff for much of this information, but given the criticality of this issue, this may be a good time for more direct interface or participation in staff discussions with these regional agencies. Equity -Palo Alto is blessed with significant affluence, but it is a challenge to provide opportunities for all. This includes maintaining a mix of good businesses (many are now priced out such as mom and pop retailers, child care centers, food businesses) and a good mix of affordable housing options. Palo Alto is trending toward being a selVed town, with essential selVices personnel, teachers, health care workers, public selVants, and service workers who serve Palo Alto pushed out of the community 7 _ If appointed, what specific goals would you like to see the Planning & Transportation Commission achieve? Development of a new Comprehensive Plan, to provide Council, staff, and other commissions with a strong framework for future decision making. I understand this is already in progress, but it is a critically important effort, and the basis for evaluating policy for many of the issues facing the city. Be more visionary: It would be great to see Palo Alto become more leading edge in planning, just as Silicon Valley and Palo Alto has become a springboard for startups and world leader in various technologies over the years. This is no easy undertaking, but the PTe can set the bar, increasing expectations to encourage new ideas & policies. It important to start with staff and understanding the hurdles they face with respect to development & implementation of policy, and communicating to Council the value of any new ideas, approaches. Bds/Commissions -702-23 9/1/2011 Garage Technology Ventures5M Henry H. Wong -Venture Partner Henry@garage.com Henry H. Wong has been a prolific and successful entrepreneur, executive, and venture investor in Silicon Valley for over 25 years. Henry applies his operational experience, investment talent, and his China expertise to advise, invest in, and build high technology companies with a global vision. He is the founder of Diamond TechVentures, and was a venture partner at Crystal Ventures, where he was actively involved with companies including SMIC, LGC Wireless & Infmera. As an entrepreneur, Henry has had several significant successes, including SS8 Networks Inc., where he was the founder, CEO and Chairman, as well as IP Communications, XaQti Semiconductor, CNet Technology Inc., and Combinet (ISDN Systems), all of which he co-founded and led. In 2002, Henry was a fmalist for the Ernst & Young "Entrepreneur of the Year Award." He is an advisor to several non-profit organizations and is active in community organizations. Henry holds a B.Sc. degree in Business from the University of Utah and a MBA in Telecom Management from Golden Gate University. He is also a Mentor in the Stanford Graduate School of Business GSB S-356 MBA Program, and a Team Mentor in the Technology Venture Formation course MS&E 273 & E145 at Stanford's School of Engineering. City of Palo Alto (ID # 3405) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/14/2013 City of Palo Alto Page 1 Summary Title: Annual Status Report on Developers' Fees FY 2012 Title: Review and Acceptance of Annual Status Report on Developers' Fees for Fiscal Year 2012 and Adoption of Resolution Making Findings Regarding Continuing Need for Unexpended Parkland Development Fees in the Amount of $38,729; Community Center Development Fees in the Amount of $562,329; Library Development Fees in the Amount of $213,729 From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that the City Council review and accept the Annual Report on Developers' Fees for the period ending June 30, 2012 (Attachment A). In addition, staff recommends that the City Council adopt the attached resolution (Attachment B) regarding the continuing need for unexpended funds in the Park Dedication Fund, Community Centers Development Fund and Libraries Development Fund. Background State law (Government Code Section 66006) requires each local agency that imposes development impact fees prepare an annual report providing specific information about those fees. This requirement is part of the law commonly referred to as AB 1600. It codifies the legal requirement that fees on new development must have the proper nexus to any project on which they are imposed. In addition, AB 1600 imposes certain accounting and reporting requirements with respect to the fees collected. The fees, for accounting purposes, must be segregated from the general funds of the City and from other funds or accounts containing fees collected for other improvements. Interest on each development fee fund or account must be credited to that fund or account and used only for the purposes for which the fees were collected. Government Code Section 66006 contains comprehensive annual reporting requirements for development impact fees. This statute requires that, within 180 days after the close of the City of Palo Alto Page 2 fiscal year, the agency that collected the fees must make available to the public the following information regarding each fund or account: o A brief description of the type of fee in the fund. o The amount of the fee. o The beginning and ending balance for the fiscal year in the fund. o The amount of fees collected and interest earned. o An identification of each public improvement on which fees were expended and the amount of the expenditure on each improvement, including the total percentage of the cost of the public improvement that was funded with fees. o An identification of an approximate date by which the construction of a public improvement will commence, if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement. o A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the loaned funds will be expended, and in the case of an interfund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive on the loan. o The amount of any refunds made due to inability to expend fees within the required time frame. This report must also be reviewed by the City Council at a regularly scheduled public meeting not less than 15 days after the information is made available to the public. In addition, notice of the time and place of the meeting shall be mailed at least 15 days prior to the meeting to any interested party who files a written request with the local agency for such a mailed notice. An early packet consisting of Attachment A only was made available to the public and included in the packet for the December 10, 2012 meeting of the City Council. City of Palo Alto Page 3 The law also provides that, for the fifth fiscal year following the first deposit into the fund and every five years thereafter, the local agency shall make findings with respect to any portion of the fee remaining unexpended, whether committed or uncommitted. The finding must: identify the purpose to which the fee is to be put; demonstrate a nexus between the fee and the purpose for which it was originally charged; and identify all sources and amounts of funding anticipated to complete financing of incomplete improvements along with the approximate dates on which the anticipated funding is expected to be deposited into the fund. If the agency no longer needs the funds for the purposes collected, or if the agency fails to make required findings, or to perform certain administrative tasks prescribed by AB 1600, the agency may be required to refund, on a prorated basis to owners of the properties upon which the fees for the improvement were imposed, the monies collected for that project and any interest earned on those funds. Discussion The City of Palo Alto development fees covered by AB 1600, and documented in Attachment A, include the following: o Stanford Research Park/El Camino Real traffic impact fees (PAMC Ch. 16.45): Fee for new nonresidential development in the Stanford Research Park/El Camino Real Service Commercial zone, to fund capacity improvements at eight intersections. o San Antonio/West Bayshore Area traffic impact fees (PAMC Ch. 16.46): Fee for new nonresidential development in the San Antonio/West Bayshore area to fund capacity improvements at four intersections. o Housing impact fees imposed on commercial developments (PAMC Ch. 16.47): Fee on commercial and industrial development to contribute to programs that increase the City's low income and moderate-income housing stock. o Parking in-lieu fees for University Avenue Parking District (PAMC Ch. 16.57): Fee on new non-residential development in the University Avenue Parking Assessment District in lieu of providing required parking spaces. o Parks, Community Centers, and Libraries impact fees (PAMC Ch. 16.58): Fee on new residential and non-residential development to provide community facility funds for parks, community centers and libraries. City of Palo Alto Page 4 o Residential housing in-lieu fees (PAMC Ch. 16.47): Fee on residential developments in- lieu of providing required below-market rate units to low and moderate income households. o Charleston-Arastradero Corridor pedestrian and bicyclist safety fees (PAMC Ch. 16.59): Fee on new development and re-development within the Charleston-Arastradero Corridor to provide for pedestrian and bicyclist improvements. o Parkland dedication fees (Quimby Act) (California Government Code Section 66477): Fees or parkland dedication imposed on new residential and non-residential development. o Water and sewer capacity fees (California Government Code Section 66000): Fee on developments adding load to water and sewer systems. o Citywide Transportation impact fee (PAMC Ch 16.59): Fee on development in all parts of the City to fund transportation projects and programs to reduce congestion. AB 1600 requires the City to make specified findings in the event any funds are not expended within five fiscal years of collection and every five years thereafter. While there are several funds containing collected fees that have not been expended in five years, the required statutory carryover findings have already been made for those funds and no further findings are required. There are three categories of fees that require statutory findings. (These proposed findings are contained in Attachment B.) The Parkland Dedication Fund has an unexpended fund balance of $38,729 that was collected in fiscal year 2007 and prior. The Community Centers Development Fund has an unexpended fund balance of $562.329 that was collected in fiscal year 2007 and prior. The Libraries Development Fund has an unexpended fund balance of $213,729 that was collected in fiscal year 2007 and prior. The San Antonio/West Bayshore Fund, Stanford Research Park/El Camino Real Fund, University Avenue In-Lieu Parking Fund, and Community Center and Library Development Funds contain development impact fees that remain unexpended. In fiscal year 2008 (CMR 107:09) the City Council made the required findings that there was a continued need for the San Antonio/West Bayshore funds for a right turn lane at the intersection of westbound Charleston at San Antonio. In fiscal year 2008, Council also found a continued need for the Stanford Research Park/El Camino Real fund for major intersection improvements at the Page Mill/Hanover City of Palo Alto Page 5 intersection and a continued need for the University Avenue In-Lieu Parking funds for the purpose of construction of public parking spaces. In the case of housing impact fees from commercial development, developers impact fees for Charleston/Arastradero pedestrian/bike safety fees, and citywide transportation impact fees, the funds on hand as of June 30, 2012 have all been received within the past four years. Therefore, no findings are required for those fees. This report does not account for fees received after June 30, 2012. Fees received as part of the large Stanford University Medical Center expansion will be reflected in next year’s report. The City received fee payments for the Stanford project in December 2012 and will be detailed in an upcoming report to the City Council related to the Stanford/City development agreement funds. Resource Impact If the Council does not make the findings contained in Attachment B, the development fees described therein might be required to be refunded. This would have a fiscal impact of $814,817. Policy Implications This report does not represent any change to existing City policies. Environmental Review Presentation of this annual report is not a project under the California Environmental Quality Act; accordingly, no environmental assessment is required. Attachments:  Attachment A: Developer Fees (XLS)  Attachment B: Resolution Adopting Findings with Respect to Unspent Impact Fees (DOCX) Attachment A City of Palo Alto Annual Report on Developers' Fees for Period Ending June 30, 2012 Stanford Research Park/San Antonio/West FUND El Camino Fund Bayshore Fund Purpose and Authority Traffic impact fees imposed on new Traffic impact fees imposed on new for Collection nonresidential development in the nonresidential development in the Stanford Research Park/El Camino San Antonio/West Bayshore Areas Real CS zone to fund improvements to fund capacity improvements at at eight identified intersections.four identified intersections. PAMC Ch. 16.45 PAMC Ch. 16.46 Amount of the Fee $10.84 per square foot $2.23 per square foot Fund Balance July 1, 2011 $2,733,213 $779,420 Activity in 2011-12 Revenues Fees Collected 551,306 0 Interest Earnings 84,483 20,933 Unrealized Gain/Loss Investments 19,569 1,639 Transfer In from Gas Tax Fund Transfer In from CIP Fund ------------------------------------------------------------------------------------------------------------------- Total Revenues $655,358 $22,572 Expenditures Other 0 0 Charleston/Arastradero Corridor Improvements 0 0 (PL-05002) ------------------------------------------------------------------------------------------------------------------- Total Expenditures 0 0 ------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2012 $3,388,571 $801,992 Net Funds Available $3,388,571 $801,992 Unexpended balance after five years 0 0 USE OF FEES:USE OF FEES: No expenditures have been made from this fund in Fiscal Year 2012. Fees are planned to be used for Gunn High School entrance near Foothill/Arastradero. No expenditures have been made from this fund in Fiscal Year 2012. Fees are planned to be used for specific traffic improvements in the Charleston/San Antonio Road area, but have been delayed by a related project to be constructed by the State Department of Transportation. Page 1 of 8 1/9/2013 Attachment A City of Palo Alto Annual Report on Developers' Fees for Period Ending June 30, 2012 University Avenue Commercial Housing Parking Assessment District FUND In-Lieu Fund In-Lieu Fund Purpose and Authority Fees imposed on large commercial Fees collected from non-residential for Collection and industrial development to development within the University Ave. contribute to programs that increase Parking Assessment District in lieu of the City's low income and moderate-providing the required number of income housing stock.parking spaces. PAMC Ch.16.47 PAMC Ch 16.57 Amount of the Fee $17.97 per square foot $67,100 per space Fund Balance July 1, 2011 $2,451,820 $105,014 Activity in 2011-12 Revenues Other Revenue from Other Agencies 1,057,420 536,800 Interest Earnings 55,625 5,040 Unrealized Gain/Loss Investments (3,528)11,139 From State of California 0 ------------------------------------------------------------------------------------------------------------------- Total Revenues 1,109,517 552,979 Expenditures Purchase of 801 Alma property 0 0 Consultant Fees 0 ------------------------------------------------------------------------------------------------------------------- Total Expenditures 0 0 ------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2012 $3,561,337 $657,993 Other Commitments/Appropriations Encumbrances 0 Reserve for unrealized gain on investments (76,076)(15,561) Net Funds Available $3,485,261 $642,432 Unexpended balance after five years 0 0 USE OF FEES:USE OF FEES: No expenditure of funds have been made from this fund in Fiscal Year 2012. No expenditure of funds have been made from this fund in Fiscal Year 2012. Page 2 of 8 1/9/2013 Attachment A City of Palo Alto Annual Report on Developers' Fees for Period Ending June 30, 2012 Residential & Non-Residential Housing Residential & Non-Residential Housing Community Facilities Community Facilities FUND Parks Community Centers Purpose and Authority Fees imposed on new residential and Fees imposed on new residential and for Collection non-residential development approved non-residential development approved after Jan 28, 2002 for Parks. after Jan 28, 2002 for Community Centers. PAMC Ch. 16.58 PAMC Ch. 16.58 Amount of the Fee Residential: Single family $10,410/residence (or $15,545/residence larger than 3,000 sq ft); Multifamily $6,814/unit (or $3,446/unit smaller than or equal to 900 sq ft) Residential: Single family $2,699/residence (or $4,040/residence larger than 3,000 sq ft); Multifamily $1,776/unit (or $896/unit smaller than or equal to 900 sq ft) Nonresidential: Commercial/industrial $4,420 per 1,000 sq ft; Hotel/Motel $1,999 per 1,000 sq ft Nonresidential: Commercial/industrial $250 per 1,000 sq ft; Hotel/Motel $113 per 1,000 sq ft Fund Balance July 1, 2011 $2,813,254 $1,551,316 Activity in 2011-12 Revenues Fees Collected 278,221 22,430 Interest Earnings 80,845 42,020 Unrealized Gain/Loss 11,688 4,752 Transfer In from CIP Fund 0 0 ------------------------------------------------------------------------------------------------------------------- Total Revenues $370,754 $69,203 Operating Transfer to Capital Projects Fund 0 0 ------------------------------------------------------------------------------------------------------------------- Total Expenditures 0 0 ------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2012 $3,184,008 $1,620,518 Other Commitments/AppropriationsReserve for unrealized gain on investments (119,301)(62,244)------------------------------------------------------------------------------------------------------------------- Net Funds Available $3,064,707 $1,558,274 Unexpended balance after five years 0 $562,329 USE OF FEES:USE OF FEES: No expenditure of funds have been made from this Fund in Fiscal Year 2012. No expenditure of funds have been made from this Fund in Fiscal Year 2012. Page 3 of 8 1/9/2013 Attachment A City of Palo Alto Annual Report on Developers' Fees for Period Ending June 30, 2012 (INFORMATION ONLY) Residential & Non-Residential Housing Residential Housing Community Facilities In-Lieu Fund FUND Libraries Purpose and Authority Fees imposed on new residential and Fees collected from residential for Collection non-residential development approved developments of three or more units in after Jan 28, 2002 for Libraries. lieu of providing the required below- market rate unit(s) to low and moderate PAMC Ch. 16.58 income households. PA Comprehensive Plan and PAMC Chapter 18 Amount of the Fee Residential: Single family $942/residence (or $1,403/residence larger than 3,000 sq ft); Multifamily $563/unit (or $309/unit smaller than or equal to 900 sq ft)Varies Nonresidential: Commercial/industrial $238 per 1,000 sq ft; Hotel/Motel $100 per 1,000 sq ft Fund Balance July 1, 2011 $552,502 $7,337,176 Activity in 2011-12 Revenues Fees Collected 16,764 5,369,089 Webster Wood In-Lieu Payment 0 4,425 Palo Alto Bimmer In-Lieu Payment 0 0 Interest Earnings 15,147 97,065 Unrealized Gain/Loss Investments 1,839 47,178 Tax Credit Refund 0 ------------------------------------------------------------------------------------------------------------------- Total Revenues $33,750 $5,517,757 Expenditures Legal (718) Housing Program Expense 0 (160,000) Principal Retired (119,999) Grants (200,000) ------------------------------------------------------------------------------------------------------------------- Total Expenditures 0 (480,718) ------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2012 $586,252 $12,374,215 Other Commitments/Appropriations (1,863)Reserve for unrealized gain on investments (22,477)(140,049) Reserve for Notes Receivable include $375,000 for 3053 Emerson, $3,804,300 for Tree House Apts, $585,126 for Oak Manor, $756,819 for Sheridan Apts. and $1,863,854 for 801 Alma.(7,385,099) ------------------------------------------------------------------------------------------------------------------- Net Funds Available $563,775 $4,847,205 Unexpended balance after five years $213,729 0 Page 4 of 8 1/9/2013 Attachment A City of Palo Alto Annual Report on Developers' Fees for Period Ending June 30, 2012 USE OF FEES:USE OF FEES: No expenditure of funds have been made from this Fund in Fiscal Year 2012. Expenditures in Fiscal Year 2012 include $160,000 to Palo Alto Housing Corp for BMR fees, $119,999 for Oak Manor Apts loan forgiveness, and $200,000 to Housing Trust of SC County for affordable housing. Page 5 of 8 1/9/2013 Attachment A City of Palo Alto Annual Report on Developers' Fees for Period Ending June 30, 2012 Parkland Dedication Charleston-Arastradero Corridor Pedestrian and Bicyclist Safety FUND Purpose and Authority Fees on parkland dedication imposed Fees collected from new development and for Collection on new residential and non-residential re-development within the Charleston- development Arastradero Corridor to provide for pedest- rian and bicyclist safety improvements. Govt Code Sec.66477 (Quimby Act) PAMC Ch. 16.60 Amount of the Fee Varies Residential: $1,091.09 per unit; Commercial: $0.32 per sq ft Fund Balance July 1, 2011 $572,689 $414,749 Activity in 2011-12 Revenues Fees Collected 172,819 338,255 Interest Earnings 17,361 16,296 Unrealized Gain/Loss Investments 9,719 4,787 ------------------------------------------------------------------------------------------------------------------- Total Revenues $199,899 $359,339 Expenditures Operating Transfer to Capital Projects Fund 0 (47,400) ------------------------------------------------------------------------------------------------------------------- Total Expenditures 0 (47,400) ------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2012 $772,588 $726,688 Other Commitments/Reappropriations Reserve for unrealized gain on investments 0 0 ------------------------------------------------------------------------------------------------------------------- Net Funds Available $772,588 $726,688 Unexpended balance after five years $38,789 0 USE OF FEES:USE OF FEES: No expenditure of funds have been made from this Fund in Fiscal Year 2012. Budgeted transfers in the amount of $47,400 were made the the Capital Improvement Fund in Fiscal Year 2012 for the Corridor Plan (PL-05002). Page 6 of 8 1/9/2013 Attachment A City of Palo Alto Annual Report on Developers' Fees for Period Ending June 30, 2012 Citywide Transportation FUND Purpose and Authority for Collection Transportation impact fees imposed on new development in all parts of the City to fund congestion reduction projects. PAMC Ch. 16.59 Amount of the Fee $2,987 per net new PM peak hour trip Fund Balance July 1, 2011 $237,378 Activity in 2011-12 Revenues Fees Collected 232,674 Interest Earnings 11,003 Unrealized Gain/Loss Investments 8,190 -------------------------------------------------------- Total Revenues $251,867 ExpendituresOperating Transfer to Capital Projects Fund 0 Operating Transfer to BMR Fund Principal Retired -------------------------------------------------------- Total Expenditures 0 -------------------------------------------------------- Ending Balance June 30, 2012 $489,245 Other Commitments/Reappropriations Reserve for unrealized gain on investments 0 -------------------------------------------------------- Net Funds Available $489,245 Unexpended balance after five years 0 USE OF FEES: No expenditure of funds have been made from this Fund in Fiscal Year 2012. Page 7 of 8 1/9/2013 Attachment A City of Palo Alto Annual Report on Developers' Fees for Period Ending June 30, 2012 (INFORMATION ONLY) FUND Water and Wastewater Collection Purpose and Authority Capacity fees charged to developers that for Collection are adding load to the water and sewer systems effective July 1, 2005. California Government Code Sect 66000 Amount of the Fee Water Domestic: 5/8 in., 3/4 in. $5,000, 1 in. $9,400, 1 1/2 in. $18,850, 2 in. by est. $125/FU, 3 in. by est. $125/FU , 4 in. by est. $125/FU , 6 in. by est. $125/FU Water Fire Service: 2 in. $750, 4 in. $9,000, 6 in. $22,530, 8 in. $43,080, 10in. $69,510 Sewer: 4 in. $10,500 first 50 FU, $210/FU additional, 6 in. by est. $210/FU, 8 in. by est. $210/FU FU is fixture unit Activity in 2011-12 Capacity Fees Collected Water $911,660 Wastewater Collection 404,659 Total $1,316,319 USE OF FEES: The fees are used exclusively for water and sewer system improvements Page 8 of 8 1/9/2013 Attachment B NOT YET APPROVED 1 120927 jb 0131001 Resolution No. _______ Resolution of the Council of the City of Palo Alto Making Findings Regarding Continuing Need for Unexpended Community Center Development Fees in the Amount of $562,329; Library Development Fees in the Amount of $213,729 and Park Dedication Fees in the Amount of $38,789 R E C I T A L S A. Government Code Section 66001(d) requires the City to make certain findings with respect to development fees collected which remain unexpended or uncommitted five of more fiscal years after deposit of such fees; and B. As authorized under Chapter 16.58 of the Palo Alto Municipal Code, the City has collected a development fee known as the “Community Center Impact Fee” for the purpose of funding development and improvements to community centers; and C. The sum of $562,329, representing fees collected pursuant to Chapter 16.58 since January 2002, together with accrued interest thereon, remains unexpended five or more years after deposit of the fees (“unexpended Community Center Impact development fees”); and D. As authorized under Chapter 16.58 of the Palo Alto Municipal Code, the City has collected a development fee known as the “Library Impact Fee” for the purpose of funding development and improvements to libraries; and E. The sum of $213,729, representing fees collected pursuant to Chapter 16.58 since January 2002, together with accrued interest thereon, remains unexpended five or more years after deposit of the fees (“the unexpended Library development fees”); F. As authorized under Chapter 16.58 of the Palo Alto Municipal Code, the City has collected a development fee known as the “Park Dedication Fee” for the purpose of funding acquisition of land and improvements for neighborhood and district parks; and G. The sum of $38,789, representing fees collected pursuant to Chapter 16.58 since January 2007, together with accrued interest thereon, remains unexpended five or more years after deposit of the fees (“the unexpended Park Dedication fees”). The Council of the City of Palo Alto RESOLVES as follows: SECTION 1. The Council makes the following findings: NOT YET APPROVED 2 121113 jb 0131001 Community Center Fees 1. The Community Center fees were collected pursuant to Chapter 16.58 of the Palo Alto Municipal Code, to be used for the purpose of funding construction of community centers. 2. The unexpended Community Center fees in the amount of $562,329 are intended to be used to fund the joint Mitchell Park Library and Community Center, and renovation of the Palo Alto Art Center but have not been expended to date for the following reasons:  An expenditure plan for the Mitchell Park Center is still being finalized and is expected to include gifts from non-profit library and recreation organizations with established alliances with the City of Palo Alto.  Expenditures include acquisition of building furnishings and amenities. The transfer of funds is being timed to align with completion and opening of full operation of the Mitchell Park Center and is expected to be made by FY 2015. 3. The need for the improvements for which the Community Center fees were collected was identified in an Environmental Impact Report (“EIR”) certified by the City Council on January 13, 1986. 4. The Community Center fees continue to be required in order to fund the improvements specified in Chapter 16.58 and in this resolution. 5. Based on the foregoing, a continuing need for the Community Center fees has been demonstrated. Library Fees 6. The Library fees were collected pursuant to Chapter 16.58 of the Palo Alto Municipal Code, to be used solely for the purpose of funding the development of libraries. 7. The City plans to spend the unexpended Library fees in the amount of $213,729 on the development of two Measure N building projects; the new facility at the Mitchell Park Library and Community Center and the renovation of the Main Library. This development may include the expansion of print and electronic materials. The funding plan is still being finalized but is expected to include gifts from non-profit library organizations and possibly community development fees. The transfer of funds is being timed to align with the Measure N construction schedules and is expected to be made by FY 2015. 8. The need for the improvements for which the Library fees were collected was identified in an Environmental Impact Report (“EIR”) certified by the City Council on January 13, 1986. NOT YET APPROVED 3 121113 jb 0131001 9. The Library fees continue to be required in order to fund the improvements specified in Chapter 16.58 and in this resolution. 10. Based on the foregoing, a continuing need for the Library fees has been demonstrated. Park Dedication Fees 11. The Park Dedication fees were collected pursuant to Chapter 16.58 of the Palo Alto Municipal Code to be used for the purpose of acquiring land to build a recreation park in underserved communities. 12. The unexpended balance of $38,789 in Parkland Dedication fees has not been used for the following reasons:  Although the City has identified potential properties for building a park, none have been placed on the market.  The City desires to acquire land in underserved communities, but has not been able to identify large enough plots to build a useable recreation park.  At $1M+ per acre, $38K is insufficient to purchase any useable land for a park. 13. The fees continue to be required in order to fund the improvements specified in Chapter 16.58 and in this resolution. 14. Based on the foregoing, a continuing need for the Park Dedication fees has been demonstrated. // // // // // // // // // NOT YET APPROVED 4 121113 jb 0131001 SECTION 2. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: ______________________________ ______________________________ City Clerk Mayor APPROVED AS TO FORM: ______________________________ City Manager ________________________________ ______________________________ Senior Asst. City Attorney Director of Administrative Services ______________________________ Director of Planning and Community Environment City of Palo Alto (ID # 3343) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/14/2013 City of Palo Alto Page 1 Summary Title: BAO and New Landfill Gas Flare Title: Adoption of Budget Amendment Ordinance in the Amount of $167,734 and Approval of Enterprise Refuse Fund Contract with GSE Construction Company, Inc. in the Total Amount of $704,220 for the New Landfill Gas Flare Project at Regional Water Quality Control Plant - Capital Improvement Program Project RF-10002 From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1. Approve the attached Budget Amendment Ordinance (BAO) in the amount of $167,734 (Attachment A) to provide an additional appropriation for the New Landfill Gas Flare Project (RF-10002); 2. Approve and authorize the City Manager or his designee to execute the attached Enterprise Refuse Fund contract with GSE Construction Company, Inc. (Attachment B) in the total amount of $640,200 for the New Landfill Gas Flare Project at the Regional Water Quality Control Plant (CIP RF- 10002); and 3. Authorize the City Manager or his designee to negotiate and execute one or more change orders to the contract with GSE Construction Company, Inc. for related, additional but unforeseen work which may develop during the project, the total value of which shall not exceed $64,020. City of Palo Alto Page 2 Executive Summary The existing landfill gas flare is located in Byxbee Park on a closed section of the Palo Alto landfill. The existing flare has reached the end of its useful life and it is not optimally sized to allow for maximum use of the landfill gas at the Regional Water Quality Control Plant (RWQCP), where it is used in the sewage sludge incinerator afterburners. Therefore, this project has the twin goals of moving the flare off Byxbee Park to the RWQCP, and upgrading it so that use of the landfill gas will be maximized and flaring minimized. Background On May 4, 2009, Council approved a contract with Golder Associates, Inc. (CMR:221:09) to design, permit, and prepare construction bid documents for a new low profile landfill gas flare station at the adjacent RWQCP. The new flare station will replace the old flare station that is located on the landfill footprint within Byxbee Park. The existing flare station needs replacement due to: 1) The flare is aged and degraded. The stack is rusted and leaning to one side, and the blowers and internal parts are no longer working as efficiently as they should; 2) The flare is oversized for the amount of landfill gas now being generated. The flare capacity was sized for the maximum gas flow generated in the early 1990s, about 1,000 cubic feet per minute (cfm). The current optimal flow is approximately 200 cfm; and 3) The current flare does not have flexibility to burn excess landfill gas that RWQCP incinerator afterburners can not accept. That is, the flare cannot work efficiently in conjunction with the incinerators to fully utilize the total amount of gas being generated by the landfill. On November 1, 2011, initial bids received exceeded the project budget available in the Refuse Fund, Capital Improvement Program Project (CIP) RF-10002, and an award to the lowest bidder was not made [Invitation for Bids (IFB) #143677]. On April 9, 2012, Council approved an amendment to the Golder Contract (C09129898) to develop an alternate design and prepare construction bid documents that included an optional conventional landfill gas flare as well as the City of Palo Alto Page 3 original low profile flare. Due to the significant cost savings of the conventional flare over a low-profile flare (i.e., $189,000), and the proposed conventional flare is about 5 feet taller than the low profile flare (24 feet tall and 19 feet tall respectively), the conventional flare is recommended for installation. Discussion Project Description The work to be performed under this contract is to procure and install two blowers, one filter/knockout pot, a condensate sump, a conventional flare, all interconnecting piping with instrumentation, and control software. The work involves mechanical and electrical equipment, conduit installation, and minor site and structure modifications to accommodate the new flare equipment. Summary of Bid Process Bid Name/Number New Landfill Gas Flare Project IFB #148208 Proposed Length of Project 9 months Number of Bids Mailed to Contractors 8 Number of Bids Mailed to Builder’s Exchanges 13 Total Days to Respond to Bid 36 Pre-Bid Meeting Yes Number of Company Attendees at Pre-Bid Meeting 8 Number of *Bids Received: 5 Base Bid Price Range – Low Profile Flare From a low of $805,345 to a high of $1,095,000. Alternate Bid Price Range – Conventional Flare From a low of $640,200 to a high of $993,000. *Bid summary provided in Attachment C. City of Palo Alto Page 4 The low bid for the conventional flare (excluding the 10% contingency) is $189,200 (or 22.8%) lower than that for the low profile flare. The bid for conventional flare was requested as an alternate to the base bid low profile flare to get competitive pricing. Staff has reviewed all bids submitted and in accordance with the award criteria in IFB for the lowest responsible bidder, recommends that the bid of $640,200 submitted by GSE Construction Company, Inc. (GSE) for conventional flare be accepted and that GSE be declared the lowest responsible bidder. The bid is 13% below the engineer's estimate of $738,031 for the conventional flare. The change order amount of $64,020 (which equals 10% of the total contract) is requested for related, additional but unforeseen work which may develop during the project. Staff confirmed with the Contractor's State License Board that the contractor has an active license on file. Staff checked references supplied by the contractor for previous work performed and found no significant complaints. Timeline The construction work is planned to be completed by December 31, 2013. Resource Impact A portion of the funds ($700,000) required for the construction of the New Landfill Gas Flare Project is currently available in Capital Improvement Program Project RF-10002. The remaining funds will be added to the project budget via the attached BAO. Design - Committed or spent to date (mostly design and permitting) $152,014 Additional design/permitting consulting needed $ 7,500 Planning fees $4,000 Construction low bid $640,200 City of Palo Alto Page 5 Contingency @10% $ 64,020 Total Project Costs $867,734 Project Budget Budget to date RF-10002 $700,000 Transfer from the Refuse Fund Reserve(BAO) $167,734 TOTAL $867,734 As a result of this transaction, the fund balance in the Enterprise Refuse Fund will decrease by $167,734 to $3,187,150. There is $167,734 net change in the reserves of the Enterprise Refuse Fund. Policy Implications Authorization of this project does not represent a change in existing City policies. Environmental Review The recommended action is exempt from the provisions of the California Environmental Quality Act pursuant to Section 15303, (a Class 3 exemption) which involves construction and location of limited numbers of new, small facilities or structures. Attachments:  Attachment A: Budget Amendment Ordinance (DOC)  Attachment B: C13148208_GSE_Landfill Gas Flare (DOC)  Attachment C: IFB 148208 Bid Summary (PDF) Attachment A ORDINANCE NO.xxxx ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 2013 TO PROVIDE AN ADDITIONAL APPROPRIATION OF $167,734 TO CAPITAL IMPROVEMENT PROGRAM PROJECT NUMBER RF- 10002, FLARE RELOCATION PROJECT, FOR THE NEW LANDFILL GAS FLARE 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 18, 2012 did adopt a budget for fiscal year 2013; and B. In fiscal years 2009 and 2011, the Council appropriated a total of $700,000 for CIP Project RF-10002, Flare Relocation Project, to relocate the landfill gas flare in Byxbee Park to the Regional Water Quality Control Plant; and C. An Invitation for Bid was solicited to procure and install the new landfill gas flare. Bids were received from five qualified vendors and GSE Construction Company, Inc. was selected with a bid of $640,200 for the conventional flare, plus a 10 percent contingency of $64,020 for unforeseen work which may develop during the project; and D. Costs of $7,500 for additional design, permitting, and consulting services, and $4,000 for planning fees are anticipated; and E. The current available balance for CIP Project RF- 10002 is $547,986. An additional appropriation of $167,734 is needed to complete the project; and F. City Council authorization is needed to amend the 2013 budget as hereinafter set forth. SECTION 2. The sum of One Hundred Sixty-Seven Thousand Seven Hundred Thirty-Four Dollars ($167,734) is hereby transferred from the Rate Stabilization Reserve in the Refuse Fund, and appropriated to CIP Project RF-10002 Flare Relocation Project. SECTION 3. The Rate Stabilization Reserve in the Refuse Fund is hereby decreased by the sum of One Hundred Sixty-Seven Thousand Seven Hundred Thirty-Four Dollars ($167,734). As a result of this change, the Rate Stabilization Reserve in the Refuse Fund will decrease to a deficit of ($3,187,150). SECTION 4. As specified in Section 2.28.080(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 5. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. SECTION 6. The installation of the new landfill gas flare is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15303 as a Class 3 exemption which involves construction or conversion of small structures. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: APPROVED: ______________________________ ________________________________ City Clerk Mayor APPROVED AS TO FORM: ________________________________ City Manager ______________________________ ________________________________ Senior Assistant City Attorney Director of Public Works ____________________________________ Director of Administrative Services Invitation for Bid (IFB) Package 1 Rev. July 2012 CONSTRUCTION CONTRACT Attachment B CONSTRUCTION CONTRACT Contract No. C13148208 City of Palo Alto and G S E CONSTRUCTION COMPANY, INC. PROJECT NEW LANDFILL GAS FLARE Invitation for Bid (IFB) Package 2 Rev. July 2012 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT TABLE OF CONTENTS SECTION 1. INCORPORATION OF RECITALS AND DEFINITIONS……………………………….. .................... 5 1.1 Recitals .............................................................................................................. 5 1.2 Definitions .......................................................................................................... 5 SECTION 2. THE PROJECT……………………………………………………………………………… .............................. 5 SECTION 3. THE CONTRACT DOCUMENTS…………………………………………………………. ......................... 5 3.1 List of Documents …………………………………………………………………………………………. ..... 5 3.2 Order of Precedence …………………………………………………………………………… ............... 6 SECTION 4. THE WORK ………………………………………………………………………………….............................. 7 SECTION 5. PROJECT TEAM ………………………………………………………………………….. ............................. 7 SECTION 6. TIME OF COMPLETION ………………………………………………………………….. .......................... 7 6.1 Time Is of Essence ....................................................................................... ……… 7 6.2 Commencement of Work .................................................................................... 7 6.3 Contract Time ..................................................................................................... 7 6.4 Liquidated Damages ........................................................................................... 7 6.4.1 Entitlement……………………………………………………………………………………………. 7 6.4.2 Daily Amount…………………………………………………………………………………………. 8 6.4.3 Exclusive Remedy………………………………………………………………………………….. 8 6.4.4 Other Remedies…………………………………………………………………………………... 8 6.5 Adjustments to Contract Time ......................................................................... … 8 SECTION 7. COMPENSATION TO CONTRACTOR………………………………………………………………………... 8 7.1 Contract Sum ……………………………………………………………………………………………………… 8 7.2 Full Compensation …………………………………………………………………………………………….. 9 7.3 Compensation for Extra or Deleted Work …………………………………………………………….9 7.3.1 Self Performed Work………………………………………………………………………………… 9 7.3.2 Subcontractors…………………………………………………………………………………………. 9 SECTION 8. STANDARD OF CARE .................................................................................................. 9 SECTION 9. INDEMNIFICATION .................................................................................................... 10 9.1 Hold Harmless…………………………………………………………………………………………………….. 10 9.2 Survival………………………………………………………………………………………………………………. 10 SECTION 10. NONDISCRIMINATION ............................................................................................. 10 SECTION 11. INSURANCE AND BONDS ......................................................................................... 10 Invitation for Bid (IFB) Package 3 Rev. July 2012 CONSTRUCTION CONTRACT SECTION 12. PROHIBITION AGAINST TRANSFERS ......................................................................... 11 SECTION 13. NOTICES .................................................................................................................. 11 13.1 Method of Notice ………………………………………………………………………………………………..11 13.2 Notice Recipients ................................................................................................ 11 13.3 Change of Address .............................................................................................. 12 14.1 Resolution of Contract Disputes .......................................................................... 12 14.2 Resolution of Other Disputes .............................................................................. 12 14.2.1 Non-Contract Disputes ……………………………………………………………………………….12 14.2.2 Litigation, City Election ……………………………………………………...........................13 14.3 Submission of Contract Dispute …………………………………………………………………………..13 14.3.1 By Contractor …………………………………………………………………………………………. 13 14.3.2 By City ……………………………………………………………………………………………………. 13 14.4 Contract Dispute Resolution Process .............................................................. …… 13 14.4.1 Direct Negotiation………………………………………………………………………… ………….13 14.4.2 Deferral of Contract Disputes ………………………………………………………………… 14 14.4.3 Mediation ………………………………………………………………………………………………….14 14.4.4 Binding Arbitration ……………………………………………………………………………………15 14.5 Non-Waiver …………………………………………………………………………………………………………16 SECTION 15. DEFAULT ................................................................................................................. 16 15.1 Notice of Default ................................................................................................ 16 15.2 Opportunity to Cure Default ............................................................................... 16 SECTION 16. CITY'S RIGHTS AND REMEDIES ................................................................................. 16 16.1 Remedies Upon Default ...................................................................................... 16 16.1.1 Delete Certain Servic………………………………………………………...........................16 16.1.2 Perform and Withhold ……………………………………………………………………………. 16 16.1.3 Suspend The Construction Contract ………………………………………………………….16 16.1.4 Terminate the Construction Contract for Default ……………………………………..17 16.1.5 Invoke the Performance Bond ………………………………………………………………….17 16.1.6 Additional Provisions ……………………………………………………………………………….17 16.2 Delays by Sureties .............................................................................................. 17 16.3 Damages to City ................................................................................................. 17 16.3.1 For Contractor's Default …………………………………………………………………………..17 16.3.2 Compensation for Losses ………………………………………………………………………….17 16.5 Suspension by City for Convenience .................................................................... 18 16.6 Termination Without Cause ................................................................................ 18 Invitation for Bid (IFB) Package 4 Rev. July 2012 CONSTRUCTION CONTRACT 16.6.1 Compensation ………………………………………………………………………………………….18 16.6.2 Subcontractors …………………………………………………………………………………………18 16.7 Contractor’s Duties Upon Termination ................................................................ 19 SECTION 17. CONTRACTOR'S RIGHTS AND REMEDIES .................................................................. 19 17.1 Contractor’s Remedies ........................................................................................ 19 17.1.1 For Work Stoppage ………………………………………………………………………………….. 19 17.1.2 For City's Non-Payment …………………………………………………………………………… 19 17.2 Damages to Contractor ....................................................................................... 19 SECTION 18. ACCOUNTING RECORDS .......................................................................................... 19 18.1 Financial Management and City Access ......................................................... ……. 19 18.2 Compliance with City Requests ....................................................................... …. 20 SECTION 19. INDEPENDENT PARTIES ........................................................................................... 20 SECTION 20. NUISANCE ............................................................................................................... 20 SECTION 21. PERMITS AND LICENSES........................................................................................... 20 SECTION 22. WAIVER .................................................................................................................. 20 SECTION 23. GOVERNING LAW .................................................................................................... 20 SECTION 24. COMPLETE AGREEMENT .......................................................................................... 21 SECTION 25. SURVIVAL OF CONTRACT ......................................................................................... 21 SECTION 26. PREVAILING WAGES ................................................................................................ 21 SECTION 27. NON APPROPRIATION ............................................................................................. 21 SECTION 28. GOVERNMENTAL POWERS ...................................................................................... 21 SECTION 29. ATTORNEY FEES ...................................................................................................... 21 SECTION 30. COUNTERPARTS ...................................................................................................... 22 SECTION 31. SEVERABILITY .......................................................................................................... 22 Invitation for Bid (IFB) Package 5 Rev. July 2012 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT THIS CONSTRUCTION CONTRACT entered into on January 14, 2014 (“Execution Date”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("City"), and GSE CONSTRUCTION COMPANY, INC. ("Contractor"), is made with reference to the following: R E C I T A L S: A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. Contractor is a Corporation duly organized and in good standing in the State of California, Contractor’s License Number 401498. Contractor represents that it is duly licensed by the State of California and has the background, knowledge, experience and expertise to perform the obligations set forth in this Construction Contract. C. On 10/30/2012, City issued an Invitation for Bids (IFB) to contractors for the NEW LANDFILL GAS FLARE (“Project”). In response to the IFB, Contractor submitted a bid. D. City and Contractor desire to enter into this Construction Contract for the Project, and other services as identified in the Bid Documents for the Project upon the following terms and conditions. NOW THEREFORE, in consideration of the mutual promises and undertakings hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is mutually agreed by and between the undersigned parties as follows: SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS. 1.1 Recitals. All of the recitals are incorporated herein by reference. 1.2 Definitions. Capitalized terms shall have the meanings set forth in this Construction Contract and/or in the General Conditions. If there is a conflict between the definitions in this Construction Contract and in the General Conditions, the definitions in this Construction Contract shall prevail. SECTION 2 THE PROJECT. The Project is the construction of the NEW LANDFILL GAS FLARE ("Project"). SECTION 3 THE CONTRACT DOCUMENTS. 3.1 List of Documents. The Contract Documents (sometimes collectively referred to as “Agreement” or “Bid Documents”) consist of the following documents which are on file with the Purchasing Division and are hereby incorporated by reference. 1) Change Orders 2) Field Change Orders Invitation for Bid (IFB) Package 6 Rev. July 2012 CONSTRUCTION CONTRACT 3) Contract 4) Project Plans and Drawings 5) Technical Specifications 6) Special Provisions 7) Notice Inviting Bids 8) Instructions to Bidders 9) General Conditions 10) Bidding Addenda 11) Invitation for Bids 12) Contractor's Bid/Non-Collusion Affidavit 13) Reports listed in the Bidding Documents 14) Public Works Department’s Standard Drawings and Specifications dated 2007 and updated from time to time 15) Utilities Department’s Water, Gas, Wastewater, Electric Utilities Standards dated 2005 and updated from time to time 16) City of Palo Alto Traffic Control Requirements 17) City of Palo Alto Truck Route Map and Regulations 18) Notice Inviting Pre-Qualification Statements, Pre-Qualification Statement, and Pre- Qualification Checklist (if applicable) 19) Performance and Payment Bonds 20) Insurance Forms 3.2 Order of Precedence. For the purposes of construing, interpreting and resolving inconsistencies between and among the provisions of this Contract, the Contract Documents shall have the order of precedence as set forth in the preceding section. If a claimed inconsistency cannot be resolved through the order of precedence, the City shall have the sole power to decide which document or provision shall govern as may be in the best interests of the City. Invitation for Bid (IFB) Package 7 Rev. July 2012 CONSTRUCTION CONTRACT SECTION 4 THE WORK. The Work includes all labor, materials, equipment, services, permits, fees, licenses and taxes, and all other things necessary for Contractor to perform its obligations and complete the Project, including, without limitation, any Changes approved by City, in accordance with the Contract Documents and all Applicable Code Requirements. SECTION 5 PROJECT TEAM. In addition to Contractor, City has retained, or may retain, consultants and contractors to provide professional and technical consultation for the design and construction of the Project. The Project requires that Contractor operate efficiently, effectively and cooperatively with City as well as all other members of the Project Team and other contractors retained by City to construct other portions of the Project. SECTION 6 TIME OF COMPLETION. 6.1 Time Is of Essence. Time is of the essence with respect to all time limits set forth in the Contract Documents. 6.2 Commencement of Work. Contractor shall commence the Work on the date specified in City’s Notice to Proceed. 6.3 Contract Time. Work hereunder shall begin on the date specified on the City’s Notice to Proceed and shall be completed not later than . within Two Hundred Seventy-Four calendar days (274) after the commencement date specified in City’s Notice to Proceed. 6.4 Liquidated Damages. 6.4.1 Entitlement. City and Contractor acknowledge and agree that if Contractor fails to fully and satisfactorily complete the Work within the Contract Time, City will suffer, as a result of Contractor’s failure, substantial damages which are both extremely difficult and impracticable to ascertain. Such damages may include, but are not limited to: (i) Loss of public confidence in City and its contractors and consultants. (ii) Loss of public use of public facilities. (iii) Extended disruption to public. Invitation for Bid (IFB) Package 8 Rev. July 2012 CONSTRUCTION CONTRACT 6.4.2 Daily Amount. City and Contractor have reasonably endeavored, but failed, to ascertain the actual damage that City will incur if Contractor fails to achieve Substantial Completion of the entire Work within the Contract Time. Therefore, the parties agree that in addition to all other damages to which City may be entitled other than delay damages, in the event Contractor shall fail to achieve Substantial Completion of the entire Work within the Contract Time, Contractor shall pay City as liquidated damages the amount of $500 per day for each Day occurring after the expiration of the Contract Time until Contractor achieves Substantial Completion of the entire Work. The liquidated damages amount is not a penalty but considered to be a reasonable estimate of the amount of damages City will suffer by delay in completion of the Work. 6.4.3 Exclusive Remedy. City and Contractor acknowledge and agree that this liquidated damages provision shall be City’s only remedy for delay damages caused by Contractor’s failure to achieve Substantial Completion of the entire Work within the Contract Time. 6.4.4 Other Remedies. City is entitled to any and all available legal and equitable remedies City may have where City’s Losses are caused by any reason other than Contractor’s failure to achieve Substantial Completion of the entire Work within the Contract Time. 6.5 Adjustments to Contract Time. The Contract Time may only be adjusted for time extensions approved by City and agreed to by Change Order executed by City and Contractor in accordance with the requirements of the Contract Documents. SECTION 7 COMPENSATION TO CONTRACTOR. 7.1 Contract Sum. Contractor shall be compensated for satisfactory completion of the Work in compliance with the Contract Documents the Contract Sum of Six Hundred Forty Thousand And Two Hundred Dollars ($640,200.00) for the “B - Alternate Bid” item. The “A – Base Bid” item is not part of this award. / / / / Invitation for Bid (IFB) Package 9 Rev. July 2012 CONSTRUCTION CONTRACT 7.2 Full Compensation. The Contract Sum shall be full compensation to Contractor for all Work provided by Contractor and, except as otherwise expressly permitted by the terms of the Contract Documents, shall cover all Losses arising out of the nature of the Work or from the acts of the elements or any unforeseen difficulties or obstructions which may arise or be encountered in performance of the Work until its Acceptance by City, all risks connected with the Work, and any and all expenses incurred due to suspension or discontinuance of the Work. The Contract Sum may only be adjusted for Change Orders issued, executed and satisfactorily performed in accordance with the requirements of the Contract Documents. 7.3 Compensation for Extra or Deleted Work. The Contract Sum shall be adjusted (either by addition or credit) for Changes in the Work involving Extra Work or Deleted Work based on one or more of the following methods to be selected by City: 1. Unit prices stated in the Contract Documents or agreed upon by City and Contractor, which unit prices shall be deemed to include Contractor Markup and Subcontractor/Sub-subcontractor Markups permitted by this Section. 2. A lump sum agreed upon by City and Contractor, based on the estimated Allowable Costs and Contractor Markup and Subcontractor Markup computed in accordance with this Section. 3. Contractor’s Allowable Costs, plus Contractor Markup and Subcontractor Markups applicable to such Extra Work computed in accordance with this Section. Contractor Markup and Subcontractor/Sub-subcontractor Markups set forth herein are the full amount of compensation to be added for Extra Work or to be subtracted for Deleted Work that is attributable to overhead (direct and indirect) and profit of Contractor and of its Subcontractors and Sub-subcontractors, of every Tier. When using this payment methodology, Contractor Markup and Subcontractor/Sub-subcontractor Markups, which shall not be compounded, shall be computed as follows: 7.3.1 Markup Self-Performed Work. 10% of the Allowable Costs for that portion of the Extra Work or Deleted Work to be performed by Contractor with its own forces. 7.3.2 Markup for Work Performed by Subcontractors. 15% of the Allowable Costs for that portion of the Extra Work or Deleted Work to be performed by a first Tier Subcontractor. SECTION 8 STANDARD OF CARE. Contractor agrees that the Work shall be performed by qualified, experienced and well-supervised personnel. All services performed in connection with this Construction Contract shall be performed in a manner consistent with the standard of care under California law applicable to those who specialize in providing such services for projects of the type, scope and complexity of the Project. Invitation for Bid (IFB) Package 10 Rev. July 2012 CONSTRUCTION CONTRACT SECTION 9 INDEMNIFICATION. 9.1 Hold Harmless. To the fullest extent allowed by law, Contractor will defend, indemnify, and hold harmless City, its City Council, boards and commissions, officers, agents, employees, representatives and volunteers (hereinafter collectively referred to as "Indemnitees"), through legal counsel acceptable to City, from and against any and all Losses arising directly or indirectly from, or in any manner relating to any of, the following: (i) Performance or nonperformance of the Work by Contractor or its Subcontractors or Sub- subcontractors, of any tier; (ii) Performance or nonperformance by Contractor or its Subcontractors or Sub- subcontractors of any tier, of any of the obligations under the Contract Documents; (iii) The construction activities of Contractor or its Subcontractors or Sub-subcontractors, of any tier, either on the Site or on other properties; (iv) The payment or nonpayment by Contractor to any of its employees, Subcontractors or Sub-subcontractors of any tier, for Work performed on or off the Site for the Project; and (v) Any personal injury, property damage or economic loss to third persons associated with the performance or nonperformance by Contractor or its Subcontractors or Sub- subcontractors of any tier, of the Work. However, nothing herein shall obligate Contractor to indemnify any Indemnitee for Losses resulting from the sole or active negligence or willful misconduct of the Indemnitee. Contractor shall pay City for any costs City incurs to enforce this provision. Nothing in the Contract Documents shall be construed to give rise to any implied right of indemnity in favor of Contractor against City or any other Indemnitee. 9.2 Survival. The provisions of Section 9 shall survive the termination of this Construction Contract. SECTION 10 NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, Contractor certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. Contractor acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and will comply with all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 11 INSURANCE AND BONDS. On or before the Execution Date, Contractor shall provide City with evidence that it has obtained insurance and Performance and Payment Bonds satisfying all requirements in Article 11 of the General Conditions. Failure to do so shall be deemed a material breach of this Construction Contract. Invitation for Bid (IFB) Package 11 Rev. July 2012 CONSTRUCTION CONTRACT SECTION 12 PROHIBITION AGAINST TRANSFERS. City is entering into this Construction Contract based upon the stated experience and qualifications of the Contractor and its subcontractors set forth in Contractor’s Bid. Accordingly, Contractor shall not assign, hypothecate or transfer this Construction Contract or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any assignment, hypothecation or transfer without said consent shall be null and void. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor or of any general partner or joint venturer or syndicate member of Contractor, if the Contractor is a partnership or joint venture or syndicate or co-tenancy shall result in changing the control of Contractor, shall be construed as an assignment of this Construction Contract. Control means more than fifty percent (50%) of the voting power of the corporation or other entity. SECTION 13 NOTICES. 13.1 Method of Notice. All notices, demands, requests or approvals to be given under this Construction Contract shall be given in writing and shall be deemed served on the earlier of the following: (i) On the date delivered if delivered personally; (ii) On the third business day after the deposit thereof in the United States mail, postage prepaid, and addressed as hereinafter provided; (iii) On the date sent if sent by facsimile transmission; (iv) On the date sent if delivered by electronic mail; or (v) On the date it is accepted or rejected if sent by certified mail. 13.2 Notice Recipients. All notices, demands or requests (including, without limitation, Claims) from Contractor to City shall include the Project name and the number of this Construction Contract and shall be addressed to City at: To City: City of Palo Alto City Clerk 250 Hamilton Avenue P.O. Box 10250 Palo Alto, CA 94303 Copy to: City of Palo Alto Public Works Administration 250 Hamilton Avenue Palo Alto, CA 94301 Attn: Padmakar M. Chaobal Or City of Palo Alto Utilities Engineering 250 Hamilton Avenue Palo Alto, CA 94301 Attn: Invitation for Bid (IFB) Package 12 Rev. July 2012 CONSTRUCTION CONTRACT In addition, copies of all Claims by Contractor under this Construction Contract shall be provided to the following: Palo Alto City Attorney’s Office 250 Hamilton Avenue P.O. Box 10250 Palo Alto, California 94303 All Claims shall be delivered personally or sent by certified mail. All notices, demands, requests or approvals from City to Contractor shall be addressed to: GSE Construction Company, Inc. 6950 Preston Ave., Livermore, CA 94551 Attn: Orlando Gutierrez, President 13.3 Change of Address. In the event of any change of address, the moving party shall notify the other party of the change of address in writing. Each party may, by written notice only, add, delete or replace any individuals to whom and addresses to which notice shall be provided. SECTION 14 DISPUTE RESOLUTION. 14.1 Resolution of Contract Disputes. Contract Disputes shall be resolved by the parties in accordance with the provisions of this Section 14, in lieu of any and all rights under the law that either party have its rights adjudged by a trial court or jury. All Contract Disputes shall be subject to the Contract Dispute Resolution Process set forth in this Section 14, which shall be the exclusive recourse of Contractor and City for such Contract Disputes. 14.2 Resolution of Other Disputes. 14.2.1 Non-Contract Disputes. Contract Disputes shall not include any of the following: (i) Penalties or forfeitures prescribed by statute or regulation imposed by a governmental agency; (ii) Third party tort claims for personal injury, property damage or death relating to any Work performed by Contractor or its Subcontractors or Sub-subcontractors of any tier; (iii) False claims liability under California Government Code Section 12650, et. seq.; (iv) Defects in the Work first discovered by City after Final Payment by City to Contractor; (v) Stop notices; or (vi) The right of City to specific performance or injunctive relief to compel performance of any provision of the Contract Documents. Invitation for Bid (IFB) Package 13 Rev. July 2012 CONSTRUCTION CONTRACT 14.2.2 Litigation, City Election. Matters that do not constitute Contract Disputes shall be resolved by way of an action filed in the Superior Court of the State of California, County of Santa Clara, and shall not be subject to the Contract Dispute Resolution Process. However, the City reserves the right, in its sole and absolute discretion, to treat such disputes as Contract Disputes. Upon written notice by City of its election as provided in the preceding sentence, such dispute shall be submitted by the parties and finally decided pursuant to the Contract Dispute Resolution Process in the manner as required for Contract Disputes, including, without limitation, City’s right under Paragraph 14.4.2 to defer resolution and final determination until after Final Completion of the Work. 14.3 Submission of Contract Dispute. 14.3.1 By Contractor. Contractors may commence the Contract Dispute Resolution Process upon City's written response denying all or part of a Claim pursuant to Paragraph 4.2.9 or 4.2.10 of the General Conditions. Contractor shall submit a written Statement of Contract Dispute (as set forth below) to City within seven (7) Days after City rejects all or a portion of Contractor's Claim. Failure by Contractor to submit its Statement of Contract Dispute in a timely manner shall result in City’s decision by City on the Claim becoming final and binding. Contractor’s Statement of Contract Dispute shall be signed under penalty of perjury and shall state with specificity the events or circumstances giving rise to the Contract Dispute, the dates of their occurrence and the asserted effect on the Contract Sum and the Contract Time. The Statement of Contract Dispute shall include adequate supporting data to substantiate the disputed Claim. Adequate supporting data for a Contract Dispute relating to an adjustment of the Contract Time shall include both of the following: (i) All of the scheduling data required to be submitted by Contractor under the Contract Documents to obtain extensions of time and adjustments to the Contract Time and (ii) A detailed, event-by-event description of the impact of each event on completion of Work. Adequate data to support a Statement of Contract Dispute involving an adjustment of the Contract Sum must include both of the following: (a) A detailed cost breakdown and (b) Supporting cost data in such form and including such information and other supporting data as required under the Contract Documents for submission of Change Order Requests and Claims. 14.3.2 By City. City's right to commence the Contract Dispute Resolution Process shall arise at any time following City's actual discovery of the circumstances giving rise to the Contract Dispute. City asserts Contract Disputes in response to a Contract Dispute asserted by Contractor. A Statement of Contract Dispute submitted by City shall state the events or circumstances giving rise to the Contract Dispute, the dates of their occurrence and the damages or other relief claimed by City as a result of such events. 14.4 Contract Dispute Resolution Process. The parties shall utilize each of the following steps in the Contract Dispute Resolution Process in the sequence they appear below. Each party shall participate fully and in good faith in each step in the Contract Dispute Resolution Process, and good faith effort shall be a condition precedent to the right of each party to proceed to the next step in the process. 14.4.1 Direct Negotiations. Designated representatives of City and Contractor shall meet as soon as possible (but not later than ten (10) Days after receipt of the Statement of Contract Dispute) in a good Invitation for Bid (IFB) Package 14 Rev. July 2012 CONSTRUCTION CONTRACT faith effort to negotiate a resolution to the Contract Dispute. Each party shall be represented in such negotiations by an authorized representative with full knowledge of the details of the Claims or defenses being asserted by such party in the negotiations, and with full authority to resolve such Contract Dispute then and there, subject only to City’s obligation to obtain administrative and/or City Council approval of any agreed settlement or resolution. If the Contract Dispute involves the assertion of a right or claim by a Subcontractor or Sub-subcontractor, of any tier, against Contractor that is in turn being asserted by Contractor against City (“Pass-Through Claim”), then the Subcontractor or Sub-Subcontractor shall also have a representative attend the negotiations, with the same authority and knowledge as described above. Upon completion of the meeting, if the Contract Dispute is not resolved, the parties may either continue the negotiations or any party may declare negotiations ended. All discussions that occur during such negotiations and all documents prepared solely for the purpose of such negotiations shall be confidential and privileged pursuant to California Evidence Code Sections 1119 and 1152. 14.4.2 Deferral of Contract Disputes. Following the completion of the negotiations required by Paragraph 14.4.1, all unresolved Contract Disputes shall be deferred pending Final Completion of the Project, subject to City’s right, in its sole and absolute discretion, to require that the Contract Dispute Resolution Process proceed prior to Final Completion. All Contract Disputes that have been deferred until Final Completion shall be consolidated within a reasonable time after Final Completion and thereafter pursued to resolution pursuant to this Contract Dispute Resolution Process. The parties can continue informal negotiations of Contract Disputes; provided, however, that such informal negotiations shall not be alter the provisions of the Agreement deferring final determination and resolution of unresolved Contract Disputes until after Final Completion. 14.4.3 Mediation. If the Contract Dispute remains unresolved after negotiations pursuant to Paragraph 14.4.1, the parties shall submit the Contract Dispute to non-binding mediation before a mutually acceptable third party mediator. .1 Qualifications of Mediator. The parties shall endeavor to select a mediator who is a retired judge or an attorney with at least five (5) years of experience in public works construction contract law and in mediating public works construction disputes. In addition, the mediator shall have at least twenty (20) hours of formal training in mediation skills. .2 Submission to Mediation and Selection of Mediator. The party initiating mediation of a Contract Dispute shall provide written notice to the other party of its decision to mediate. In the event the parties are unable to agree upon a mediator within fifteen (15) Days after the receipt of such written notice, then the parties shall submit the matter to the American Arbitration Association (AAA) at its San Francisco Regional Office for selection of a mediator in accordance with the AAA Construction Industry Mediation Rules. .3 Mediation Process. The location of the mediation shall be at the offices of City. The costs of mediation shall be shared equally by both parties. The mediator shall provide an independent assessment on the merits of the Contract Dispute and recommendations for resolution. All discussions that occur during the mediation and all documents prepared solely for the purpose of the mediation shall be confidential and privileged pursuant to California Evidence Code Sections 1119 and 1152. Invitation for Bid (IFB) Package 15 Rev. July 2012 CONSTRUCTION CONTRACT 14.4.4 Binding Arbitration. If the Contract Dispute is not resolved by mediation, then any party may submit the Contract Dispute for final and binding arbitration pursuant to the provisions of California Public Contract Code Sections 10240, et seq. The award of the arbitrator therein shall be final and may be entered as a judgment by any court of competent jurisdiction. Such arbitration shall be conducted in accordance with the following: .1 Arbitration Initiation. The arbitration shall be initiated by filing a complaint in arbitration in accordance with the regulations promulgated pursuant to California Public Contract Code Section 10240.5. .2 Qualifications of the Arbitrator. The arbitrator shall be approved by all parties. The arbitrator shall be a retired judge or an attorney with at least five (5) years of experience in public works construction contract law and in arbitrating public works construction disputes. In addition, the arbitrator shall have at least twenty (20) hours of formal training in arbitration skills. In the event the parties cannot agree upon an arbitrator, the provisions of California Public Contract Code Section 10240.3 shall be followed in selecting an arbitrator possessing the qualifications required herein. .3 Hearing Days and Location. Arbitration hearings shall be held at the offices of City and shall, except for good cause shown to and determined by the arbitrator, be conducted on consecutive business days, without interruption or continuance. .4 Hearing Delays. Arbitration hearings shall not be delayed except upon good cause shown. .5 Recording Hearings. All hearings to receive evidence shall be recorded by a certified stenographic reporter, with the costs thereof borne equally by City and Contractor and allocated by the arbitrator in the final award. .6 Limitation of Depositions. The parties may conduct discovery in accordance with the provisions of section 10240.11 of the Public Contract Code; provided, however, that depositions shall be limited to both of the following: (i) Ten (10) percipient witnesses for each party and 5 expert witnesses per party. Upon a showing of good cause, the arbitrator may increase the number of permitted depositions. An individual who is both percipient and expert shall, for purposes of applying the foregoing numerical limitation only, be deemed an expert. Expert reports shall be exchanged prior to receipt of evidence, in accordance with the direction of the arbitrator, and expert reports (including initial and rebuttal reports) not so submitted shall not be admissible as evidence. .7 Authority of the Arbitrator. The arbitrator shall have the authority to hear dispositive motions and issue interim orders and interim or executory awards. Invitation for Bid (IFB) Package 16 Rev. July 2012 CONSTRUCTION CONTRACT .8 Waiver of Jury Trial. Contractor and City each voluntarily waives its right to a jury trial with respect to any Contract Dispute that is subject to binding arbitration in accordance with the provisions of this Paragraph 14.4.4. Contractor shall include this provision in its contracts with its Subcontractors who provide any portion of the Work. 14.5 Non-Waiver. Participation in the Contract Dispute Resolution Process shall not waive, release or compromise any defense of City, including, without limitation, any defense based on the assertion that the rights or Claims of Contractor that are the basis of a Contract Dispute were previously waived by Contractor due to Contractor’s failure to comply with the Contract Documents, including, without limitation, Contractor’s failure to comply with any time periods for providing notice of requests for adjustments of the Contract Sum or Contract Time or for submission of Claims or supporting documentation of Claims. SECTION 15 DEFAULT. 15.1 Notice of Default. In the event that City determines, in its sole discretion, that Contractor has failed or refused to perform any of the obligations set forth in the Contract Documents, or is in breach of any provision of the Contract Documents, City may give written notice of default to Contractor in the manner specified for the giving of notices in the Construction Contract. 15.2 Opportunity to Cure Default. Except for emergencies, Contractor shall cure any default in performance of its obligations under the Contract Documents within two (2) Days (or such shorter time as City may reasonably require) after receipt of written notice. However, if the breach cannot be reasonably cured within such time, Contractor will commence to cure the breach within two (2) Days (or such shorter time as City may reasonably require) and will diligently and continuously prosecute such cure to completion within a reasonable time, which shall in no event be later than ten (10) Days after receipt of such written notice. SECTION 16 CITY'S RIGHTS AND REMEDIES. 16.1 Remedies Upon Default. If Contractor fails to cure any default of this Construction Contract within the time period set forth above in Section 15, then City may pursue any remedies available under law or equity, including, without limitation, the following: 16.1.1 Delete Certain Services. City may, without terminating the Construction Contract, delete certain portions of the Work, reserving to itself all rights to Losses related thereto. 16.1.2 Perform and Withhold. City may, without terminating the Construction Contract, engage others to perform the Work or portion of the Work that has not been adequately performed by Contractor and withhold the cost thereof to City from future payments to Contractor, reserving to itself all rights to Losses related thereto. 16.1.3 Suspend The Construction Contract. City may, without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, suspend all or any portion of this Construction Contract for as long a period of time as City determines, in its sole discretion, appropriate, in which event City shall have no Invitation for Bid (IFB) Package 17 Rev. July 2012 CONSTRUCTION CONTRACT obligation to adjust the Contract Sum or Contract Time, and shall have no liability to Contractor for damages if City directs Contractor to resume Work. 16.1.4 Terminate the Construction Contract for Default. City shall have the right to terminate this Construction Contract, in whole or in part, upon the failure of Contractor to promptly cure any default as required by Section 15. City’s election to terminate the Construction Contract for default shall be communicated by giving Contractor a written notice of termination in the manner specified for the giving of notices in the Construction Contract. Any notice of termination given to Contractor by City shall be effective immediately, unless otherwise provided therein. 16.1.5 Invoke the Performance Bond. City may, with or without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, exercise its rights under the Performance Bond. 16.1.6 Additional Provisions. All of City’s rights and remedies under this Construction Contract are cumulative, and shall be in addition to those rights and remedies available in law or in equity. Designation in the Contract Documents of certain breaches as material shall not waive the City’s authority to designate other breaches as material nor limit City’s right to terminate the Construction Contract, or prevent the City from terminating the Agreement for breaches that are not material. City’s determination of whether there has been noncompliance with the Construction Contract so as to warrant exercise by City of its rights and remedies for default under the Construction Contract, shall be binding on all parties. No termination or action taken by City after such termination shall prejudice any other rights or remedies of City provided by law or equity or by the Contract Documents upon such termination; and City may proceed against Contractor to recover all liquidated damages and Losses suffered by City. 16.2 Delays by Sureties. Without limiting to any of City’s other rights or remedies, City has the right to suspend the performance of the Work by Contractor’s sureties in the event of any of the following: (i) The sureties’ failure to begin Work within a reasonable time in such manner as to insure full compliance with the Construction Contract within the Contract Time; (ii) The sureties’ abandonment of the Work; (iii) If at any time City is of the opinion the sureties’ Work is unnecessarily or unreasonably delaying the Work; (iv) The sureties’ violation of any terms of the Construction Contract; (v) The sureties’ failure to perform according to the Contract Documents; or (vi) The sureties’ failure to follow City’s instructions for completion of the Work within the Contract Time. 16.3 Damages to City. 16.3.1 For Contractor's Default. City will be entitled to recovery of all Losses under law or equity in the event of Contractor’s default under the Contract Documents. 16.3.2 Compensation for Losses. In the event that City's Losses arise from Contractor’s default under the Contract Documents, City shall be entitled to withhold monies otherwise payable to Contractor until Final Completion of the Project. If City incurs Losses due to Contractor’s default, then the amount of Losses shall be deducted from the amounts withheld. Should the amount withheld exceed the amount deducted, the balance will be paid to Contractor or its designee upon Final Completion of the Project. If the Losses incurred by City exceed the amount withheld, Contractor shall be liable to City for the difference and shall promptly remit same to City. Invitation for Bid (IFB) Package 18 Rev. July 2012 CONSTRUCTION CONTRACT 16.4 Suspension by City for Convenience. City may, at any time and from time to time, without cause, order Contractor, in writing, to suspend, delay, or interrupt the Work in whole or in part for such period of time, up to an aggregate of fifty percent (50%) of the Contract Time. The order shall be specifically identified as a Suspension Order by City. Upon receipt of a Suspension Order, Contractor shall, at City’s expense, comply with the order and take all reasonable steps to minimize costs allocable to the Work covered by the Suspension Order. During the Suspension or extension of the Suspension, if any, City shall either cancel the Suspension Order or, by Change Order, delete the Work covered by the Suspension Order. If a Suspension Order is canceled or expires, Contractor shall resume and continue with the Work. A Change Order will be issued to cover any adjustments of the Contract Sum or the Contract Time necessarily caused by such suspension. A Suspension Order shall not be the exclusive method for City to stop the Work. 16.5 Termination Without Cause. City may, at its sole discretion and without cause, terminate this Construction Contract in part or in whole by giving thirty (30) Days written notice to Contractor. The compensation allowed under this Paragraph 16.5 shall be the Contractor’s sole and exclusive compensation for such termination and Contractor waives any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect or incidental damages of any kind resulting from termination without cause. 16.5.1 Compensation. Following such termination and within forty-five (45) Days after receipt of a billing from Contractor seeking payment of sums authorized by this Paragraph 16.5, City shall pay the following to Contractor as Contractor’s sole compensation for performance of the Work : .1 For Work Performed. The amount of the Contract Sum allocable to the portion of the Work properly performed by Contractor as of the date of termination, less sums previously paid to Contractor. .2 For Close-out Costs. Reasonable costs of Contractor and its Subcontractors and Sub-subcontractors for: (i) Demobilizing and (ii) Administering the close-out of its participation in the Project (including, without limitation, all billing and accounting functions, not including attorney or expert fees) for a period of no longer than thirty (30) Days after receipt of the notice of termination. .3 For Fabricated Items. Previously unpaid cost of any items delivered to the Project Site which were fabricated for subsequent incorporation in the Work. 16.5.2 Subcontractors. Contractor shall include provisions in all of its subcontracts, purchase orders and other contracts permitting termination for convenience by Contractor on terms that are consistent with this Construction Contract and that afford no greater rights of recovery against Contractor than are afforded to Contractor against City under this Section. Invitation for Bid (IFB) Package 19 Rev. July 2012 CONSTRUCTION CONTRACT 16.6 Contractor’s Duties Upon Termination. Upon receipt of a notice of termination for default or for convenience, Contractor shall, unless the notice directs otherwise, do the following: (i) Immediately discontinue the Work to the extent specified in the notice; (ii) Place no further orders or subcontracts for materials, equipment, services or facilities, except as may be necessary for completion of such portion of the Work that is not discontinued; (iii) Provide to City a description, in writing no later than fifteen (15) days after receipt of the notice of termination, of all subcontracts, purchase orders and contracts that are outstanding, including, without limitation, the terms of the original price, any changes, payments, balance owing, the status of the portion of the Work covered and a copy of the subcontract, purchase order or contract and any written changes, amendments or modifications thereto, together with such other information as City may determine necessary in order to decide whether to accept assignment of or request Contractor to terminate the subcontract, purchase order or contract; (iv) Promptly assign to City those subcontracts, purchase orders or contracts, or portions thereof, that City elects to accept by assignment and cancel, on the most favorable terms reasonably possible, all subcontracts, purchase orders or contracts, or portions thereof, that City does not elect to accept by assignment; and (v) Thereafter do only such Work as may be necessary to preserve and protect Work already in progress and to protect materials, plants, and equipment on the Project Site or in transit thereto. SECTION 17 CONTRACTOR'S RIGHTS AND REMEDIES. 17.1 Contractor’s Remedies. Contractor may terminate this Construction Contract only upon the occurrence of one of the following: 17.1.1 For Work Stoppage. The Work is stopped for sixty (60) consecutive Days, through no act or fault of Contractor, any Subcontractor, or any employee or agent of Contractor or any Subcontractor, due to issuance of an order of a court or other public authority other than City having jurisdiction or due to an act of government, such as a declaration of a national emergency making material unavailable. This provision shall not apply to any work stoppage resulting from the City’s issuance of a suspension notice issued either for cause or for convenience. 17.1.2 For City's Non-Payment. If City does not make pay Contractor undisputed sums within ninety (90) Days after receipt of notice from Contractor, Contractor may terminate the Construction Contract (30) days following a second notice to City of Contractor’s intention to terminate the Construction Contract. 17.2 Damages to Contractor. In the event of termination for cause by Contractor, City shall pay Contractor the sums provided for in Paragraph 16.5.1 above. Contractor agrees to accept such sums as its sole and exclusive compensation and agrees to waive any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect and incidental damages, of any kind. SECTION 18 ACCOUNTING RECORDS. 18.1 Financial Management and City Access. Contractor shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management under this Construction Contract in accordance with generally Invitation for Bid (IFB) Package 20 Rev. July 2012 CONSTRUCTION CONTRACT accepted accounting principles and practices. City and City's accountants during normal business hours, may inspect, audit and copy Contractor's records, books, estimates, take-offs, cost reports, ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to this Project. Contractor shall retain these documents for a period of three (3) years after the later of (i) final payment or (ii) final resolution of all Contract Disputes and other disputes, or (iii) for such longer period as may be required by law. 18.2 Compliance with City Requests. Contractor's compliance with any request by City pursuant to this Section 18 shall be a condition precedent to filing or maintenance of any legal action or proceeding by Contractor against City and to Contractor's right to receive further payments under the Contract Documents. City many enforce Contractor’s obligation to provide access to City of its business and other records referred to in Section 18.1 for inspection or copying by issuance of a writ or a provisional or permanent mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such court, without the necessity of oral testimony. SECTION 19 INDEPENDENT PARTIES. Each party is acting in its independent capacity and not as agents, employees, partners, or joint ventures’ of the other party. City, its officers or employees shall have no control over the conduct of Contractor or its respective agents, employees, subconsultants, or subcontractors, except as herein set forth. SECTION 20 NUISANCE. Contractor shall not maintain, commit, nor permit the maintenance or commission of any nuisance in connection in the performance of services under this Construction Contract. SECTION 21 PERMITS AND LICENSES. Except as otherwise provided in the Special Provisions and Technical Specifications, The Contractor shall provide, procure and pay for all licenses, permits, and fees, required by the City or other government jurisdictions or agencies necessary to carry out and complete the Work. Payment of all costs and expenses for such licenses, permits, and fees shall be included in one or more Bid items. No other compensation shall be paid to the Contractor for these items or for delays caused by non-City inspectors or conditions set forth in the licenses or permits issued by other agencies. SECTION 22 WAIVER. A waiver by either party of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character. SECTION 23 GOVERNING LAW. This Construction Contract shall be construed in accordance with and governed by the laws of the State of California. Invitation for Bid (IFB) Package 21 Rev. July 2012 CONSTRUCTION CONTRACT SECTION 24 COMPLETE AGREEMENT. This Agreement represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This Agreement may be amended only by a written instrument, which is signed by the parties. SECTION 25 SURVIVAL OF CONTRACT. The provisions of the Construction Contract which by their nature survive termination of the Construction Contract or Final Completion, including, without limitation, all warranties, indemnities, payment obligations, and City’s right to audit Contractor’s books and records, shall remain in full force and effect after Final Completion or any termination of the Construction Contract. SECTION 26 PREVAILING WAGES. This Project is not subject to prevailing wages. The Contractor is not required to pay prevailing wages in the performance and implementation of the Project, because the City, pursuant to its authority as a chartered city, has adopted Resolution No. 5981 exempting the City from prevailing wages. The City invokes the exemption from the state prevailing wage requirement for this Project and declares that the Project is funded one hundred percent (100%) by the City of Palo Alto. Or The Contractor is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the California Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from the Director of the Department of Industrial Relations. Copies of these rates may be obtained at cost at the Purchasing office of the City of Palo Alto. Contractor shall provide a copy of prevailing wage rates to any staff or subcontractor hired, and shall pay the adopted prevailing wage rates as a minimum. Contractor shall comply with the provisions of Sections 1775, 1776, 1777.5, 1810, and 1813 of the Labor Code. SECTION 27 NON APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that the City does not appropriate funds for the following fiscal year for this event, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Construction Contract are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 28 AUTHORITY. The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. SECTION 29 ATTORNEY FEES. Each Party shall bear its own costs, including attorney’s fees through the completion of mediation. If the claim or dispute is not resolved through mediation and in any dispute described in Paragraph 14.2, 22 Invitation for Bid (IFB) Package Rev. July 2012 CONSTRUCTION CONTRACT the prevailing party in any action brought to enforce the provision of this Agreement may recover its reasonable costs and attorney’s fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorney’s’ fees paid to third parties. SECTION 30 COUNTERPARTS This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement. SECTION 31 SEVERABILITY. In case a provision of this Construction Contract is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not be affected. IN WITNESS WHEREOF, the parties have caused this Construction Contract to be executed the date and year first above written. CITY OF PALO ALTO ____________________________ Purchasing Manager City Manager APPROVED AS TO FORM: ___________________________ Senior Asst. City Attorney APPROVED: ___________________________ Public Works Director G S E Construction Company, Inc. By:___________________________ Name:_________________________ Title:________________________ IFB 148208 Attachment C Bid Summary New LFG Flare Bid Description Engineer's Estimate GSE Construction R. J. Gordon, Inc. Pacific Infrastructure SCS Field Services California Plus Engineering, Inc. Remarks Base Total Base Bid (low profile flare)897,930 829,400 805,345 839,000 982,000 1,095,000 Alt.Total Alternate Bid (conventional flare)738,031 640,200 671,070 819,500 782,800 993,000 Grand -Total Both Bids (for evalution/award purpose only)1,635,961 1,469,600 1,476,415 1,658,500 1,764,800 2,088,000 City of Palo Alto (ID # 3153) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/14/2013 City of Palo Alto Page 1 Summary Title: BAO & Contract for Household Hazardous Waste Station Improvement Project Title: Adoption of a Budget Amendment Ordinance in the Amount of $205,150 to Capital Improvement Program Project RF-070001 and Approval of Contract with American Asphalt Repair and Resurfacing Co., Inc. in the Amount Not to Exceed $376,200 for Improvements to the Existing Household Hazardous Waste Station Located at the Entrance to the Regional Water Quality Control Plant From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1. Adopt the attached Budget Amendment Ordinance (BAO) in the amount of $205,150 for improvements to the Household Hazardous Waste Station (Attachment A) Project RF-07001; 2. Approve and authorize the City Manager or his designee to execute the attached contract with American Asphalt Repair and Resurfacing Co., Inc. (Attachment B) in the amount of $342,000 for improvements to the Household Hazardous Waste Station, located at 2501 Embarcadero Way, Palo Alto, CA; and 3. Authorize the City Manager or his designee to negotiate and execute one or more change orders to the contract with American Asphalt Repair and City of Palo Alto Page 2 Resurfacing Co., Inc. for related, additional, but unforeseen work which may develop during the project, the total value of which shall not exceed $34,200. Background Palo Alto’s Household hazardous waste (HHW) program began in 1983 when Palo Alto became the second jurisdiction in the state to provide collection of household hazardous wastes to its residents in response to community concerns about toxic wastes in the environment. The objectives of the HHW program were to provide a point of contact for educating the public about the safe use, storage, disposal and alternatives to HHW products, and to help reduce the release of HHW to storm drains, landfill and the sanitary sewer. In 1986, the Tanner Bill (AB 2948) was passed requiring counties to establish hazardous waste management plans (Health & Safety Code 25135-25135.9). In 1987, the Greene Bill (SB 477) was passed requiring each City to either adopt a city hazardous waste management plan or incorporate the County’s plan into the City’s plan. HHW Element - In 1989, AB 939 was passed mandating that cities adopt and submit a HHW Element (HHWE), a document that sets policies, objectives, and programs for collection of HHW in compliance with state mandates. Palo Alto’s HHWE (June, 1991) evaluated HHW alternatives and led to the development of a permanent HHW facility to phase out the monthly collection events that were taking place during that time. Since Palo Alto’s program predated the Santa Clara County program, and since Palo Alto had a mature well-run HHW program, Palo Alto decided to continue its own program instead of joining the Santa Clara County HHW Program. In the early 1990’s, the City’s Regional Water Quality Control Plant (RWQCP) became a permitted permanent HHW collection facility, focusing on the collection and proper disposal of target wastes that directly affected the waste water effluent such as photo chemicals, mercury wastes, certain types of pesticides and more recently pharmaceutical wastes. In 2008, the RWQCP upgraded its hazardous wastes storage structures by adding a new hazardous waste storage locker (and related improvements) at the entrance to the RWQCP. This new City of Palo Alto Page 3 storage locker allows the RWQCP to store both plant generated hazardous wastes as well as HHW collected through the permanent facility permit. In December 2011 Council approved the closure of the City’s Recycling Center (RC) effective February 2012. Staff had originally intended to combine a new RC with the existing HHW Station at the Plant. Materials previously accepted at the RC included HHW materials which are now being accepted by the HHW program. To mitigate the impact of the RC closure and to improve the availability of the HHW program to residents, staff needs to augment the HHW Station by adding additional storage, consolidating various current collection points, and improving stormwater protection and safety. The additional storage capacity allows the HHW Station to be open more frequently. Staff contracted with Siegfried Engineering to complete the design for these HHW Station improvements. Discussion The goal of improving the City’s existing HHW station is to add storage capacity so that the facility can be open to residents more often as well as to be able to store additional wastes. Residents are now allowed to drop-off motor oil, antifreeze, fluorescent lamps, household/automotive batteries, and cooking oil at the HHW Station for proper disposal. By making it more convenient for residents to drop- off their HHW, the City hopes to increase the participation rate and reduce the amount of illegally disposed HHW. Currently, the City holds HHW drop-off events twice per month. Storage capacity is measured by the number of vehicle loads that the facility can accommodate before the accumulated HHW must be off-loaded. The station only has enough storage capacity for approximately 40 vehicles to drop-off HHW. After the improvements are made the HHW Station is anticipated to have enough storage space to accept over 200 vehicles worth of HHW enabling the station to be open weekly. The additional weekday car trips will not impact peak hour traffic. Improvements include adding one, new flammables shed, a new asphalt area to be used for temporary roll-off bins (for paint storage), two new materials cabinets (to store good household products for residents to take and use) and a new City of Palo Alto Page 4 storage container for supplies. These improvements will allow the station to be open more frequently and increase participation by residents and reduce the amount of improper disposal of household wastes. New concrete, canopy footings and security fencing will also be constructed. It is expected that the improvements to the existing HHW station will result in: better overall efficiencies; improved convenience to residents and small businesses; cost offsets to the HHW program because of staffing, storage and shipping improvements (i.e. will not need to ship partially filled containers); and by increasing safety and operational performance at the existing HHW station. In 2007, capital project RF-07001 was budgeted for the relocation of facilities located on the landfill footprint. These facilities included the City’s recycling center, the landfill office, scalehouse and scale. Included in this scope the relocation of the RC at the RWQCP adjacent to an improved HHW station. With the closure of the recycling center the funding was removed from the project and the HHW Station improvements were reduced in scope and size. In 2011 the City was awarded a $150,000 grant from the California Department of Resources Recycling and Recovery (CalRecycle). The grant is to assist the City’s Household Hazardous Waste Program implement improvements to the City’s existing HHW collection station and reimbursement must be requested no later than April 15, 2013. The request for the BAO will fund these improvements with a reimbursement of $150,000 in April, 2013 when construction is substantially completed. Bid Process On December 5, 2012, a notice inviting formal bids (IFB) for the Improvements to the Household Hazardous Waste Station Project was posted by City Hall, and a total of 46 bid packages were sent out. Bids were received from three (3) contractors on December 18, 2012. City of Palo Alto Page 5 Bid Name/Number Household Hazardous Waste Station Improvement Project /IFB #147362 Proposed Length of Project 90 calendar days Number of Bid Packages Transmitted 46 Total Days to Respond to Proposal 14 Pre-bid Meeting No Number of Proposals Received: 3 Bid Price Range $342,000 to $437,900 (base bid) Staff has reviewed all submitted bids. Base bid prices ranged from a low of $342,000 to a high $437,900, 44.2% to 84.6% above the engineer’s cost estimate of $237,186. Selection of a contractor is based on the lowest base bid. The lowest base bid totaling $342,000 was submitted by American Asphalt Repair and Resurfacing Co., Inc. Work includes mobilization/demobilization; site preparation; installation of utilities, lighting, concrete, asphalt, fencing and gates; installation of sheds; and the installation of canopy footings. Due to the high cost Add Alternate A01 (above ground canopy structure work) was not selected to be done as part of this contract. Add Alternative A01 work included the installation of columns, beams, roof, lighting, fire sprinklers, piping, gutters, downspouts, bubblers, fittings, valves, signage, paint, stripping and appurtenances. The above ground canopy structure work will be done as a separate project. A 10 percent contingency in the amount of $34,200 is requested for related, additional, but unforeseen work which may develop during the project. Resource Impact Staff recommends adoption of a BAO in the amount of $205,150 per below CIP Budget RF-07001 $ 620,818 Actual & Commitments to date ($433,127) Available Budget $ 187,691 City of Palo Alto Page 6 Construction Contract $ 342,000 Contingency $ 34,200 Building Permit fee $ 5,711 Public Art $ 3,530 Tree work (City crews) $ 2,400 Sprinklers/electrical gate, misc. $ 5,000 Total Construction Costs $ 392,841 BAO needed $ 205,150 CalRecycle Grant Reimbursement ($150,000) Refuse Fund Reallocation $55,150 The BAO will be funded from the Refuse Fund Reserve with $150,000 reimbursement back to the reserve from the CalRecycle grant once received, and a reallocation of $55,150 from non-salary expense in the Refuse Fund operating budget. Policy Implications This project is in conformance with the City’s policies and goals and does not represent any changes to existing City policies. Environmental Review This work is exempt from the California Environmental Quality Act (CEQA) under Class 1 categorical exemptions Article 19, Section 15301 and has received a Notice of CEQA exemption from the City’s Planning Department. This work involves improvement and maintenance of existing facilities. Attachments: City of Palo Alto Page 7  Attachment A - Budget Amendment Ordinance (DOC)  Attachment B - Contract C12147362 (DOC) ORDINANCE NO.xxxx ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 2013 TO PROVIDE AN APPROPRIATION OF $205,150 TO CAPITAL IMPROVEMENT PROGRAM PROJECT NUMBER RF-07001, RELOCATION OF LANDFILL FACILITIES, FOR HOUSEHOLD HAZARDOUS WASTE STATION IMPROVEMENTS 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 18, 2012 did adopt a budget for fiscal year 2013; and B. In fiscal years 2008 and 2009, the Council appropriated a total of $1,500,000 for CIP project RF-07001, Relocation of Landfill Facilities, to relocate the existing recycling drop-off center, tollbooth, scale, and administrative trailer at the landfill in order to begin landfill closure; and C. The scope of CIP RF-07001 is now modified to add storage capacity and upgrade the existing household hazardous waste (HHW) station located at the entrance to the Regional Water Quality Control Plant (RWQCP). The original scope of CIP RF-07001 was to design and construct a new Recycling Center that had been located on the landfill in order to begin landfill closure. A combined Recycling Center/HHW Station was meant to be located at the RWQCP. However, due to budgetary constraints, it was decided to not construct the Recycling Center portion of the project, leaving only the HHW station work within the project. Accordingly, in fiscal year 2012, a mid-year adjustment was made to reduce the budget for CIP RF- 07001 by $879,473; and D. Following a formal bid process, American Asphalt Repair and Resurfacing Co., Inc. was selected to perform work for improvements to the HHW station. The contract amount is $342,000. An additional amount of $34,200 is needed to cover contingency for installing the canopy footings and for any unforeseen work; and E. Additional amounts of $5,711 for building permit fees, $3,530 for public art, $5,000 for sprinkler and electrical costs, and $2,400 for tree work are needed for the improvements to the HHW station; and F. The current available appropriation balance of $187,691 for CIP RF-07001 is not sufficient to cover the costs of the improvements to the HHW station, and an additional appropriation of $205,150 is needed to complete the project; and G. The total additional appropriation of $205,150 for the project will be funded by a grant reimbursement of $150,000 from the California Department of Resources Recycling and Recovery, and by a reallocation of $55,150 in non-salary expenses from the Refuse Fund operating budget. H. City Council authorization is needed to amend the 2013 budget as hereinafter set forth. SECTION 2. The sum of Two Hundred Five Thousand One Hundred Fifty Dollars ($205,150) is hereby appropriated to CIP Project RF-07001, Relocation of Landfill Facilities, for improvements to the Household Hazardous Waste Station. SECTION 3. The Refuse Fund will be reimbursed by grant funding from the California Department of Resources Recycling and Recovery in the amount of One Hundred Fifty Thousand Dollars ($150,000). SECTION 4. The sum of Fifty-Five Thousand One Hundred Fifty Dollars ($55,150) is hereby reallocated from the Refuse Fund operating budget to CIP Project RF-07001. SECTION 5. The transactions above will have no net impact on the balance of the Refuse Fund Rate Stabilization Reserve. SECTION 6. As specified in Section 2.28.080(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 7. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. SECTION 8. Work related to the improvements to the HHW Station is exempt from the California Environmental Quality Act (CEQA) under Class 1 categorical exemptions Article 19, Section 15301 of the CEQA Guidelines as repair, maintenance and/or minor alteration of the existing facilities and no further environmental review is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: APPROVED: ______________________________ ________________________________ City Clerk Mayor APPROVED AS TO FORM: ________________________________ City Manager ______________________________ ________________________________ Senior Assistant City Attorney Director of Public Works ____________________________________ Director of Administrative Services Invitation for Bid (IFB) Package 1 Rev. May 1, 2012 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT Contract No. C12147362 City of Palo Alto and American Aspahlt Repair and Resurfacing Co., Inc. PROJECT Improvements to the Household Hazardous Waste Station - Palo Alto Regional Water Quality Control Plant, Invitation for Bids (IFB) No. 147362 Invitation for Bid (IFB) Package 2 Rev. May 1, 2012 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT TABLE OF CONTENTS SECTION 1. INCORPORATION OF RECITALS AND DEFINITIONS……………………………….. .................... 5 1.1 Recitals .............................................................................................................. 5 1.2 Definitions .......................................................................................................... 5 SECTION 2. THE PROJECT……………………………………………………………………………… .............................. 5 SECTION 3. THE CONTRACT DOCUMENTS…………………………………………………………. ......................... 5 3.1 List of Documents …………………………………………………………………………………………. ..... 5 3.2 Order of Precedence …………………………………………………………………………… ............... 6 SECTION 4. THE WORK ………………………………………………………………………………….............................. 6 SECTION 5. PROJECT TEAM ………………………………………………………………………….. ............................. 7 SECTION 6. TIME OF COMPLETION ………………………………………………………………….. .......................... 7 6.1 Time Is of Essence ....................................................................................... ……… 7 6.2 Commencement of Work .................................................................................... 7 6.3 Contract Time ..................................................................................................... 7 6.4 Liquidated Damages ........................................................................................... 7 6.4.1 Entitlement……………………………………………………………………………………………. 7 6.4.2 Daily Amount…………………………………………………………………………………………. 8 6.4.3 Exclusive Remedy………………………………………………………………………………….. 8 6.4.4 Other Remedies…………………………………………………………………………………... 8 6.5 Adjustments to Contract Time ......................................................................... … 8 SECTION 7. COMPENSATION TO CONTRACTOR………………………………………………………………………... 8 7.1 Contract Sum ………………………………………………………………………………………………………8 7.2 Full Compensation …………………………………………………………………………………………….. 9 7.3 Compensation for Extra or Deleted Work …………………………………………………………….9 7.3.1 Self Performed Work…………………………………………………………………………………9 7.3.2 Subcontractors………………………………………………………………………………………….9 SECTION 8. STANDARD OF CARE .................................................................................................. 9 SECTION 9. INDEMNIFICATION .................................................................................................... 10 9.1 Hold Harmless ……………………………………………………………………………………………………..10 9.2 Survival ……………………………………………………………………………………………………………….10 SECTION 10. NONDISCRIMINATION ............................................................................................. 10 SECTION 11. INSURANCE AND BONDS ......................................................................................... 10 Invitation for Bid (IFB) Package 3 Rev. May 1, 2012 CONSTRUCTION CONTRACT SECTION 12. PROHIBITION AGAINST TRANSFERS ......................................................................... 11 SECTION 13. NOTICES .................................................................................................................. 11 13.1 Method of Notice ………………………………………………………………………………………………..11 13.2 Notice Recipients ................................................................................................ 11 13.3 Change of Address .............................................................................................. 12 14.1 Resolution of Contract Disputes .......................................................................... 12 14.2 Resolution of Other Disputes .............................................................................. 13 14.2.1 Non-Contract Disputes …………………………………………………………………………………….13 14.2.2 Litigation, City Election …………………………………………………………...........................13 14.3 Submission of Contract Dispute …………………………………………………………………………..13 14.3.1 By Contractor …………………………………………………………………………………………. 13 14.3.2 By City ……………………………………………………………………………………………………. 14 14.4 Contract Dispute Resolution Process .............................................................. …… 14 14.4.1 Direct Negotiation…………………………………………………………………………………….14 14.4.2 Deferral of Contract Disputes ………………………………………………………………… 14 14.4.3 Mediation …………………………………………………………………………..14 14.4.4 Binding Arbitration ………………………………………………………………..15 14.5 Non-Waiver …………………………………………………………………………………………………………16 SECTION 15. DEFAULT ................................................................................................................. 16 15.1 Notice of Default ................................................................................................ 16 15.2 Opportunity to Cure Default ............................................................................... 16 SECTION 16. CITY'S RIGHTS AND REMEDIES ................................................................................. 17 16.1 Remedies Upon Default ...................................................................................... 17 16.1.1 Delete Certain Services …………………………………………………………...........................17 16.1.2 Perform and Withhold ……………………………………………………………………………. 17 16.1.3 Suspend The Construction Contract ………………………………………………………….17 16.1.4 Terminate the Construction Contract for Default ……………………………………..17 16.1.5 Invoke the Performance Bond ………………………………………………………………….17 16.1.6 Additional Provisions ……………………………………………………………………………….17 16.2 Delays by Sureties .............................................................................................. 18 16.3 Damages to City ................................................................................................. 18 16.3.1 For Contractor's Default …………………………………………………………………………..18 16.3.2 Compensation for Losses ………………………………………………………………………….18 16.5 Suspension by City for Convenience .................................................................... 18 16.6 Termination Without Cause ................................................................................ 18 16.6.1 Compensation ………………………………………………………………………………………….18 16.6.2 Subcontractors …………………………………………………………………………………………19 16.7 Contractor’s Duties Upon Termination ................................................................ 19 Invitation for Bid (IFB) Package 4 Rev. May 1, 2012 CONSTRUCTION CONTRACT SECTION 17. CONTRACTOR'S RIGHTS AND REMEDIES .................................................................. 19 17.1 Contractor’s Remedies ........................................................................................ 19 17.1.1 For Work Stoppage …………………………………………………………………………………..20 17.1.2 For City's Non-Payment …………………………………………………………………………… 20 17.2 Damages to Contractor ....................................................................................... 20 SECTION 18. ACCOUNTING RECORDS .......................................................................................... 20 18.1 Financial Management and City Access ......................................................... ……. 20 18.2 Compliance with City Requests ....................................................................... …. 20 SECTION 19. INDEPENDENT PARTIES ........................................................................................... 20 SECTION 20. NUISANCE ............................................................................................................... 20 SECTION 21. PERMITS AND LICENSES........................................................................................... 21 SECTION 22. WAIVER .................................................................................................................. 21 SECTION 23. GOVERNING LAW .................................................................................................... 21 SECTION 24. COMPLETE AGREEMENT .......................................................................................... 21 SECTION 25. SURVIVAL OF CONTRACT ......................................................................................... 21 SECTION 26. PREVAILING WAGES ................................................................................................ 21 SECTION 27. NON APPROPRIATION ............................................................................................. 22 SECTION 28. GOVERNMENTAL POWERS ...................................................................................... 22 SECTION 29. ATTORNEY FEES ...................................................................................................... 22 SECTION 30. COUNTERPARTS ...................................................................................................... 22 SECTION 31. SEVERABILITY .......................................................................................................... 22 Invitation for Bid (IFB) Package 5 Rev. May 1, 2012 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT THIS CONSTRUCTION CONTRACT entered into on Tbd (“Execution Date”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("City"), and AMERICAN ASPHALT REPAIR AND RESURFACING CO., INC. ("Contractor"), is made with reference to the following: R E C I T A L S: A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. Contractor is a corporation duly organized and in good standing in the State of California, Contractor’s License Number 439591. Contractor represents that it is duly licensed by the State of California and has the background, knowledge, experience and expertise to perform the obligations set forth in this Construction Contract. C. On December 5, 2012, City issued an Invitation for Bids (IFB) to contractors for the Improvements To The Household Hazardous Waste Station (“Project”). In response to the IFB, Contractor submitted a bid. D. City and Contractor desire to enter into this Construction Contract for the Project, and other services as identified in the Bid Documents for the Project upon the following terms and conditions. NOW THEREFORE, in consideration of the mutual promises and undertakings hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is mutually agreed by and between the undersigned parties as follows: SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS. 1.1 Recitals. All of the recitals are incorporated herein by reference. 1.2 Definitions. Capitalized terms shall have the meanings set forth in this Construction Contract and/or in the General Conditions. If there is a conflict between the definitions in this Construction Contract and in the General Conditions, the definitions in this Construction Contract shall prevail. SECTION 2 THE PROJECT. The Project is the construction of the Improvements to the Household Hazardous Waste Station ("Project"). SECTION 3 THE CONTRACT DOCUMENTS. 3.1 List of Documents. The Contract Documents (sometimes collectively referred to as “Agreement” or “Bid Documents”) consist of the following documents which are on file with the Purchasing Division and are hereby incorporated by reference. 1) Change Orders Invitation for Bid (IFB) Package 6 Rev. May 1, 2012 CONSTRUCTION CONTRACT 2) Field Change Orders 3) Contract 4) Project Plans and Drawings 5) Technical Specifications 6) Special Provisions 7) Notice Inviting Bids 8) Instructions to Bidders 9) General Conditions 10) Bidding Addenda 11) Invitation for Bids 12) Contractor's Bid/Non-Collusion Affidavit 13) Reports listed in the Bidding Documents 14) Public Works Department’s Standard Drawings and Specifications dated 2007 and updated from time to time 15) Utilities Department’s Water, Gas, Wastewater, Electric Utilities Standards dated 2005 and updated from time to time 16) City of Palo Alto Traffic Control Requirements 17) City of Palo Alto Truck Route Map and Regulations 18) Notice Inviting Pre-Qualification Statements, Pre-Qualification Statement, and Pre- Qualification Checklist (if applicable) 19) Performance and Payment Bonds 20) Insurance Forms 3.2 Order of Precedence. For the purposes of construing, interpreting and resolving inconsistencies between and among the provisions of this Contract, the Contract Documents shall have the order of precedence as set forth in the preceding section. If a claimed inconsistency cannot be resolved through the order of precedence, the City shall have the sole power to decide which document or provision shall govern as may be in the best interests of the City. SECTION 4 THE WORK. The Work includes all labor, materials, equipment, services, permits, fees, licenses and taxes, and all other things necessary for Contractor to perform its obligations and complete the Project, including, without Invitation for Bid (IFB) Package 7 Rev. May 1, 2012 CONSTRUCTION CONTRACT limitation, any Changes approved by City, in accordance with the Contract Documents and all Applicable Code Requirements. SECTION 5 PROJECT TEAM. In addition to Contractor, City has retained, or may retain, consultants and contractors to provide professional and technical consultation for the design and construction of the Project. The Project requires that Contractor operate efficiently, effectively and cooperatively with City as well as all other members of the Project Team and other contractors retained by City to construct other portions of the Project. SECTION 6 TIME OF COMPLETION. 6.1 Time Is of Essence. Time is of the essence with respect to all time limits set forth in the Contract Documents. 6.2 Commencement of Work. Contractor shall commence the Work on the date specified in City’s Notice to Proceed. 6.3 Contract Time. Work hereunder shall begin on the date specified on the City’s Notice to Proceed and shall be completed not later than . within 90 calendar days ( ) after the commencement date specified in City’s Notice to Proceed. 6.4 Liquidated Damages. 6.4.1 Entitlement. City and Contractor acknowledge and agree that if Contractor fails to fully and satisfactorily complete the Work within the Contract Time, City will suffer, as a result of Contractor’s failure, substantial damages which are both extremely difficult and impracticable to ascertain. Such damages may include, but are not limited to: (i) Loss of public confidence in City and its contractors and consultants. (ii) Loss of public use of public facilities. (iii) Extended disruption to public. Invitation for Bid (IFB) Package 8 Rev. May 1, 2012 CONSTRUCTION CONTRACT 6.4.2 Daily Amount. City and Contractor have reasonably endeavored, but failed, to ascertain the actual damage that City will incur if Contractor fails to achieve Substantial Completion of the entire Work within the Contract Time. Therefore, the parties agree that in addition to all other damages to which City may be entitled other than delay damages, in the event Contractor shall fail to achieve Substantial Completion of the entire Work within the Contract Time, Contractor shall pay City as liquidated damages the amount of $500 per day for each Day occurring after the expiration of the Contract Time until Contractor achieves Substantial Completion of the entire Work. The liquidated damages amount is not a penalty but considered to be a reasonable estimate of the amount of damages City will suffer by delay in completion of the Work. 6.4.3 Exclusive Remedy. City and Contractor acknowledge and agree that this liquidated damages provision shall be City’s only remedy for delay damages caused by Contractor’s failure to achieve Substantial Completion of the entire Work within the Contract Time. 6.4.4 Other Remedies. City is entitled to any and all available legal and equitable remedies City may have where City’s Losses are caused by any reason other than Contractor’s failure to achieve Substantial Completion of the entire Work within the Contract Time. 6.5 Adjustments to Contract Time. The Contract Time may only be adjusted for time extensions approved by City and agreed to by Change Order executed by City and Contractor in accordance with the requirements of the Contract Documents. SECTION 7 COMPENSATION TO CONTRACTOR. 7.1 Contract Sum. Contractor shall be compensated for satisfactory completion of the Work in compliance with the Contract Documents the Contract Sum of Three Hundred Forty Two Thousand Dollars ($342,000). [This amount includes the Base Bid and Add Alternates .] / / / / Invitation for Bid (IFB) Package 9 Rev. May 1, 2012 CONSTRUCTION CONTRACT 7.2 Full Compensation. The Contract Sum shall be full compensation to Contractor for all Work provided by Contractor and, except as otherwise expressly permitted by the terms of the Contract Documents, shall cover all Losses arising out of the nature of the Work or from the acts of the elements or any unforeseen difficulties or obstructions which may arise or be encountered in performance of the Work until its Acceptance by City, all risks connected with the Work, and any and all expenses incurred due to suspension or discontinuance of the Work. The Contract Sum may only be adjusted for Change Orders issued, executed and satisfactorily performed in accordance with the requirements of the Contract Documents. 7.3 Compensation for Extra or Deleted Work. The Contract Sum shall be adjusted (either by addition or credit) for Changes in the Work involving Extra Work or Deleted Work based on one or more of the following methods to be selected by City: 1. Unit prices stated in the Contract Documents or agreed upon by City and Contractor, which unit prices shall be deemed to include Contractor Markup and Subcontractor/Sub-subcontractor Markups permitted by this Section. 2. A lump sum agreed upon by City and Contractor, based on the estimated Allowable Costs and Contractor Markup and Subcontractor Markup computed in accordance with this Section. 3. Contractor’s Allowable Costs, plus Contractor Markup and Subcontractor Markups applicable to such Extra Work computed in accordance with this Section. Contractor Markup and Subcontractor/Sub-subcontractor Markups set forth herein are the full amount of compensation to be added for Extra Work or to be subtracted for Deleted Work that is attributable to overhead (direct and indirect) and profit of Contractor and of its Subcontractors and Sub-subcontractors, of every Tier. When using this payment methodology, Contractor Markup and Subcontractor/Sub-subcontractor Markups, which shall not be compounded, shall be computed as follows: 7.3.1 Markup Self-Performed Work. 10% of the Allowable Costs for that portion of the Extra Work or Deleted Work to be performed by Contractor with its own forces. 7.3.2 Markup for Work Performed by Subcontractors. 15% of the Allowable Costs for that portion of the Extra Work or Deleted Work to be performed by a first Tier Subcontractor. SECTION 8 STANDARD OF CARE. Contractor agrees that the Work shall be performed by qualified, experienced and well-supervised personnel. All services performed in connection with this Construction Contract shall be performed in a manner consistent with the standard of care under California law applicable to those who specialize in providing such services for projects of the type, scope and complexity of the Project. Invitation for Bid (IFB) Package 10 Rev. May 1, 2012 CONSTRUCTION CONTRACT SECTION 9 INDEMNIFICATION. 9.1 Hold Harmless. To the fullest extent allowed by law, Contractor will defend, indemnify, and hold harmless City, its City Council, boards and commissions, officers, agents, employees, representatives and volunteers (hereinafter collectively referred to as "Indemnitees"), through legal counsel acceptable to City, from and against any and all Losses arising directly or indirectly from, or in any manner relating to any of, the following: (i) Performance or nonperformance of the Work by Contractor or its Subcontractors or Sub- subcontractors, of any tier; (ii) Performance or nonperformance by Contractor or its Subcontractors or Sub- subcontractors of any tier, of any of the obligations under the Contract Documents; (iii) The construction activities of Contractor or its Subcontractors or Sub-subcontractors, of any tier, either on the Site or on other properties; (iv) The payment or nonpayment by Contractor to any of its employees, Subcontractors or Sub-subcontractors of any tier, for Work performed on or off the Site for the Project; and (v) Any personal injury, property damage or economic loss to third persons associated with the performance or nonperformance by Contractor or its Subcontractors or Sub- subcontractors of any tier, of the Work. However, nothing herein shall obligate Contractor to indemnify any Indemnitee for Losses resulting from the sole or active negligence or willful misconduct of the Indemnitee. Contractor shall pay City for any costs City incurs to enforce this provision. Nothing in the Contract Documents shall be construed to give rise to any implied right of indemnity in favor of Contractor against City or any other Indemnitee. 9.2 Survival. The provisions of Section 9 shall survive the termination of this Construction Contract. SECTION 10 NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, Contractor certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. Contractor acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and will comply with all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 11 INSURANCE AND BONDS. On or before the Execution Date, Contractor shall provide City with evidence that it has obtained insurance and Performance and Payment Bonds satisfying all requirements in Article 11 of the General Conditions. Failure to do so shall be deemed a material breach of this Construction Contract. Invitation for Bid (IFB) Package 11 Rev. May 1, 2012 CONSTRUCTION CONTRACT SECTION 12 PROHIBITION AGAINST TRANSFERS. City is entering into this Construction Contract based upon the stated experience and qualifications of the Contractor and its subcontractors set forth in Contractor’s Bid. Accordingly, Contractor shall not assign, hypothecate or transfer this Construction Contract or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any assignment, hypothecation or transfer without said consent shall be null and void. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor or of any general partner or joint venturer or syndicate member of Contractor, if the Contractor is a partnership or joint venture or syndicate or co-tenancy shall result in changing the control of Contractor, shall be construed as an assignment of this Construction Contract. Control means more than fifty percent (50%) of the voting power of the corporation or other entity. SECTION 13 NOTICES. 13.1 Method of Notice. All notices, demands, requests or approvals to be given under this Construction Contract shall be given in writing and shall be deemed served on the earlier of the following: (i) On the date delivered if delivered personally; (ii) On the third business day after the deposit thereof in the United States mail, postage prepaid, and addressed as hereinafter provided; (iii) On the date sent if sent by facsimile transmission; (iv) On the date sent if delivered by electronic mail; or (v) On the date it is accepted or rejected if sent by certified mail. 13.2 Notice Recipients. All notices, demands or requests (including, without limitation, Claims) from Contractor to City shall include the Project name and the number of this Construction Contract and shall be addressed to City at: To City: City of Palo Alto City Clerk 250 Hamilton Avenue P.O. Box 10250 Palo Alto, CA 94303 Copy to: City of Palo Alto Public Works Administration 250 Hamilton Avenue Palo Alto, CA 94301 Attn: John Montenero Or Invitation for Bid (IFB) Package 12 Rev. May 1, 2012 CONSTRUCTION CONTRACT City of Palo Alto Utilities Engineering 250 Hamilton Avenue Palo Alto, CA 94301 Attn: In addition, copies of all Claims by Contractor under this Construction Contract shall be provided to the following: Palo Alto City Attorney’s Office 250 Hamilton Avenue P.O. Box 10250 Palo Alto, California 94303 All Claims shall be delivered personally or sent by certified mail. All notices, demands, requests or approvals from City to Contractor shall be addressed to: City Of Palo Alto Attn: Chuck Muir P.O. Box 10250 Palo Alto, Ca 94303 (650) 496-6980 13.3 Change of Address. In the event of any change of address, the moving party shall notify the other party of the change of address in writing. Each party may, by written notice only, add, delete or replace any individuals to whom and addresses to which notice shall be provided. SECTION 14 DISPUTE RESOLUTION. 14.1 Resolution of Contract Disputes. Contract Disputes shall be resolved by the parties in accordance with the provisions of this Section 14, in lieu of any and all rights under the law that either party have its rights adjudged by a trial court or jury. All Contract Disputes shall be subject to the Contract Dispute Resolution Process set forth in this Section 14, which shall be the exclusive recourse of Contractor and City for such Contract Disputes. Invitation for Bid (IFB) Package 13 Rev. May 1, 2012 CONSTRUCTION CONTRACT 14.2 Resolution of Other Disputes. 14.2.1 Non-Contract Disputes. Contract Disputes shall not include any of the following: (i) Penalties or forfeitures prescribed by statute or regulation imposed by a governmental agency; (ii) Third party tort claims for personal injury, property damage or death relating to any Work performed by Contractor or its Subcontractors or Sub-subcontractors of any tier; (iii) False claims liability under California Government Code Section 12650, et. seq.; (iv) Defects in the Work first discovered by City after Final Payment by City to Contractor; (v) Stop notices; or (vi) The right of City to specific performance or injunctive relief to compel performance of any provision of the Contract Documents. 14.2.2 Litigation, City Election. Matters that do not constitute Contract Disputes shall be resolved by way of an action filed in the Superior Court of the State of California, County of Santa Clara, and shall not be subject to the Contract Dispute Resolution Process. However, the City reserves the right, in its sole and absolute discretion, to treat such disputes as Contract Disputes. Upon written notice by City of its election as provided in the preceding sentence, such dispute shall be submitted by the parties and finally decided pursuant to the Contract Dispute Resolution Process in the manner as required for Contract Disputes, including, without limitation, City’s right under Paragraph 14.4.2 to defer resolution and final determination until after Final Completion of the Work. 14.3 Submission of Contract Dispute. 14.3.1 By Contractor. Contractors may commence the Contract Dispute Resolution Process upon City's written response denying all or part of a Claim pursuant to Paragraph 4.2.9 or 4.2.10 of the General Conditions. Contractor shall submit a written Statement of Contract Dispute (as set forth below) to City within seven (7) Days after City rejects all or a portion of Contractor's Claim. Failure by Contractor to submit its Statement of Contract Dispute in a timely manner shall result in City’s decision by City on the Claim becoming final and binding. Contractor’s Statement of Contract Dispute shall be signed under penalty of perjury and shall state with specificity the events or circumstances giving rise to the Contract Dispute, the dates of their occurrence and the asserted effect on the Contract Sum and the Contract Time. The Statement of Contract Dispute shall include adequate supporting data to substantiate the disputed Claim. Adequate supporting data for a Contract Dispute relating to an adjustment of the Contract Time shall include both of the following: (i) All of the scheduling data required to be submitted by Contractor under the Contract Documents to obtain extensions of time and adjustments to the Contract Time and (ii) A detailed, event-by-event description of the impact of each event on completion of Work. Adequate data to support a Statement of Contract Dispute involving an adjustment of the Contract Sum must include both of the following: (a) A detailed cost breakdown and (b) Supporting cost data in such form and including such information and other supporting data as required under the Contract Documents for submission of Change Order Requests and Claims. Invitation for Bid (IFB) Package 14 Rev. May 1, 2012 CONSTRUCTION CONTRACT 14.3.2 By City. City's right to commence the Contract Dispute Resolution Process shall arise at any time following City's actual discovery of the circumstances giving rise to the Contract Dispute. City asserts Contract Disputes in response to a Contract Dispute asserted by Contractor. A Statement of Contract Dispute submitted by City shall state the events or circumstances giving rise to the Contract Dispute, the dates of their occurrence and the damages or other relief claimed by City as a result of such events. 14.4 Contract Dispute Resolution Process. The parties shall utilize each of the following steps in the Contract Dispute Resolution Process in the sequence they appear below. Each party shall participate fully and in good faith in each step in the Contract Dispute Resolution Process, and good faith effort shall be a condition precedent to the right of each party to proceed to the next step in the process. 14.4.1 Direct Negotiations. Designated representatives of City and Contractor shall meet as soon as possible (but not later than ten (10) Days after receipt of the Statement of Contract Dispute) in a good faith effort to negotiate a resolution to the Contract Dispute. Each party shall be represented in such negotiations by an authorized representative with full knowledge of the details of the Claims or defenses being asserted by such party in the negotiations, and with full authority to resolve such Contract Dispute then and there, subject only to City’s obligation to obtain administrative and/or City Council approval of any agreed settlement or resolution. If the Contract Dispute involves the assertion of a right or claim by a Subcontractor or Sub-subcontractor, of any tier, against Contractor that is in turn being asserted by Contractor against City (“Pass-Through Claim”), then the Subcontractor or Sub-Subcontractor shall also have a representative attend the negotiations, with the same authority and knowledge as described above. Upon completion of the meeting, if the Contract Dispute is not resolved, the parties may either continue the negotiations or any party may declare negotiations ended. All discussions that occur during such negotiations and all documents prepared solely for the purpose of such negotiations shall be confidential and privileged pursuant to California Evidence Code Sections 1119 and 1152. 14.4.2 Deferral of Contract Disputes. Following the completion of the negotiations required by Paragraph 14.4.1, all unresolved Contract Disputes shall be deferred pending Final Completion of the Project, subject to City’s right, in its sole and absolute discretion, to require that the Contract Dispute Resolution Process proceed prior to Final Completion. All Contract Disputes that have been deferred until Final Completion shall be consolidated within a reasonable time after Final Completion and thereafter pursued to resolution pursuant to this Contract Dispute Resolution Process. The parties can continue informal negotiations of Contract Disputes; provided, however, that such informal negotiations shall not be alter the provisions of the Agreement deferring final determination and resolution of unresolved Contract Disputes until after Final Completion. 14.4.3 Mediation. If the Contract Dispute remains unresolved after negotiations pursuant to Paragraph 14.4.1, the parties shall submit the Contract Dispute to non-binding mediation before a mutually acceptable third party mediator. Invitation for Bid (IFB) Package 15 Rev. May 1, 2012 CONSTRUCTION CONTRACT .1 Qualifications of Mediator. The parties shall endeavor to select a mediator who is a retired judge or an attorney with at least five (5) years of experience in public works construction contract law and in mediating public works construction disputes. In addition, the mediator shall have at least twenty (20) hours of formal training in mediation skills. .2 Submission to Mediation and Selection of Mediator. The party initiating mediation of a Contract Dispute shall provide written notice to the other party of its decision to mediate. In the event the parties are unable to agree upon a mediator within fifteen (15) Days after the receipt of such written notice, then the parties shall submit the matter to the American Arbitration Association (AAA) at its San Francisco Regional Office for selection of a mediator in accordance with the AAA Construction Industry Mediation Rules. .3 Mediation Process. The location of the mediation shall be at the offices of City. The costs of mediation shall be shared equally by both parties. The mediator shall provide an independent assessment on the merits of the Contract Dispute and recommendations for resolution. All discussions that occur during the mediation and all documents prepared solely for the purpose of the mediation shall be confidential and privileged pursuant to California Evidence Code Sections 1119 and 1152. 14.4.4 Binding Arbitration. If the Contract Dispute is not resolved by mediation, then any party may submit the Contract Dispute for final and binding arbitration pursuant to the provisions of California Public Contract Code Sections 10240, et seq. The award of the arbitrator therein shall be final and may be entered as a judgment by any court of competent jurisdiction. Such arbitration shall be conducted in accordance with the following: .1 Arbitration Initiation. The arbitration shall be initiated by filing a complaint in arbitration in accordance with the regulations promulgated pursuant to California Public Contract Code Section 10240.5. .2 Qualifications of the Arbitrator. The arbitrator shall be approved by all parties. The arbitrator shall be a retired judge or an attorney with at least five (5) years of experience in public works construction contract law and in arbitrating public works construction disputes. In addition, the arbitrator shall have at least twenty (20) hours of formal training in arbitration skills. In the event the parties cannot agree upon an arbitrator, the provisions of California Public Contract Code Section 10240.3 shall be followed in selecting an arbitrator possessing the qualifications required herein. .3 Hearing Days and Location. Arbitration hearings shall be held at the offices of City and shall, except for good cause shown to and determined by the arbitrator, be conducted on consecutive business days, without interruption or continuance. .4 Hearing Delays. Arbitration hearings shall not be delayed except upon good cause shown. .5 Recording Hearings. All hearings to receive evidence shall be recorded by a certified stenographic reporter, with the costs thereof borne equally by City and Contractor and allocated by the arbitrator in the final award. Invitation for Bid (IFB) Package 16 Rev. May 1, 2012 CONSTRUCTION CONTRACT .6 Limitation of Depositions. The parties may conduct discovery in accordance with the provisions of section 10240.11 of the Public Contract Code; provided, however, that depositions shall be limited to both of the following: (i) Ten (10) percipient witnesses for each party and 5 expert witnesses per party. Upon a showing of good cause, the arbitrator may increase the number of permitted depositions. An individual who is both percipient and expert shall, for purposes of applying the foregoing numerical limitation only, be deemed an expert. Expert reports shall be exchanged prior to receipt of evidence, in accordance with the direction of the arbitrator, and expert reports (including initial and rebuttal reports) not so submitted shall not be admissible as evidence. .7 Authority of the Arbitrator. The arbitrator shall have the authority to hear dispositive motions and issue interim orders and interim or executory awards. .8 Waiver of Jury Trial. Contractor and City each voluntarily waives its right to a jury trial with respect to any Contract Dispute that is subject to binding arbitration in accordance with the provisions of this Paragraph 14.4.4. Contractor shall include this provision in its contracts with its Subcontractors who provide any portion of the Work. 14.5 Non-Waiver. Participation in the Contract Dispute Resolution Process shall not waive, release or compromise any defense of City, including, without limitation, any defense based on the assertion that the rights or Claims of Contractor that are the basis of a Contract Dispute were previously waived by Contractor due to Contractor’s failure to comply with the Contract Documents, including, without limitation, Contractor’s failure to comply with any time periods for providing notice of requests for adjustments of the Contract Sum or Contract Time or for submission of Claims or supporting documentation of Claims. SECTION 15 DEFAULT. 15.1 Notice of Default. In the event that City determines, in its sole discretion, that Contractor has failed or refused to perform any of the obligations set forth in the Contract Documents, or is in breach of any provision of the Contract Documents, City may give written notice of default to Contractor in the manner specified for the giving of notices in the Construction Contract. 15.2 Opportunity to Cure Default. Except for emergencies, Contractor shall cure any default in performance of its obligations under the Contract Documents within two (2) Days (or such shorter time as City may reasonably require) after receipt of written notice. However, if the breach cannot be reasonably cured within such time, Contractor will commence to cure the breach within two (2) Days (or such shorter time as City may reasonably require) and will diligently and continuously prosecute such cure to completion within a reasonable time, which shall in no event be later than ten (10) Days after receipt of such written notice. Invitation for Bid (IFB) Package 17 Rev. May 1, 2012 CONSTRUCTION CONTRACT SECTION 16 CITY'S RIGHTS AND REMEDIES. 16.1 Remedies Upon Default. If Contractor fails to cure any default of this Construction Contract within the time period set forth above in Section 15, then City may pursue any remedies available under law or equity, including, without limitation, the following: 16.1.1 Delete Certain Services. City may, without terminating the Construction Contract, delete certain portions of the Work, reserving to itself all rights to Losses related thereto. 16.1.2 Perform and Withhold. City may, without terminating the Construction Contract, engage others to perform the Work or portion of the Work that has not been adequately performed by Contractor and withhold the cost thereof to City from future payments to Contractor, reserving to itself all rights to Losses related thereto. 16.1.3 Suspend The Construction Contract. City may, without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, suspend all or any portion of this Construction Contract for as long a period of time as City determines, in its sole discretion, appropriate, in which event City shall have no obligation to adjust the Contract Sum or Contract Time, and shall have no liability to Contractor for damages if City directs Contractor to resume Work. 16.1.4 Terminate the Construction Contract for Default. City shall have the right to terminate this Construction Contract, in whole or in part, upon the failure of Contractor to promptly cure any default as required by Section 15. City’s election to terminate the Construction Contract for default shall be communicated by giving Contractor a written notice of termination in the manner specified for the giving of notices in the Construction Contract. Any notice of termination given to Contractor by City shall be effective immediately, unless otherwise provided therein. 16.1.5 Invoke the Performance Bond. City may, with or without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, exercise its rights under the Performance Bond. 16.1.6 Additional Provisions. All of City’s rights and remedies under this Construction Contract are cumulative, and shall be in addition to those rights and remedies available in law or in equity. Designation in the Contract Documents of certain breaches as material shall not waive the City’s authority to designate other breaches as material nor limit City’s right to terminate the Construction Contract, or prevent the City from terminating the Agreement for breaches that are not material. City’s determination of whether there has been noncompliance with the Construction Contract so as to warrant exercise by City of its rights and remedies for default under the Construction Contract, shall be binding on all parties. No termination or action taken by City after such termination shall prejudice any other rights or remedies of City provided by law or equity or by the Contract Documents upon such termination; and City may proceed against Contractor to recover all liquidated damages and Losses suffered by City. Invitation for Bid (IFB) Package 18 Rev. May 1, 2012 CONSTRUCTION CONTRACT 16.2 Delays by Sureties. Without limiting to any of City’s other rights or remedies, City has the right to suspend the performance of the Work by Contractor’s sureties in the event of any of the following: (i) The sureties’ failure to begin Work within a reasonable time in such manner as to insure full compliance with the Construction Contract within the Contract Time; (ii) The sureties’ abandonment of the Work; (iii) If at any time City is of the opinion the sureties’ Work is unnecessarily or unreasonably delaying the Work; (iv) The sureties’ violation of any terms of the Construction Contract; (v) The sureties’ failure to perform according to the Contract Documents; or (vi) The sureties’ failure to follow City’s instructions for completion of the Work within the Contract Time. 16.3 Damages to City. 16.3.1 For Contractor's Default. City will be entitled to recovery of all Losses under law or equity in the event of Contractor’s default under the Contract Documents. 16.3.2 Compensation for Losses. In the event that City's Losses arise from Contractor’s default under the Contract Documents, City shall be entitled to withhold monies otherwise payable to Contractor until Final Completion of the Project. If City incurs Losses due to Contractor’s default, then the amount of Losses shall be deducted from the amounts withheld. Should the amount withheld exceed the amount deducted, the balance will be paid to Contractor or its designee upon Final Completion of the Project. If the Losses incurred by City exceed the amount withheld, Contractor shall be liable to City for the difference and shall promptly remit same to City. 16.4 Suspension by City for Convenience. City may, at any time and from time to time, without cause, order Contractor, in writing, to suspend, delay, or interrupt the Work in whole or in part for such period of time, up to an aggregate of fifty percent (50%) of the Contract Time. The order shall be specifically identified as a Suspension Order by City. Upon receipt of a Suspension Order, Contractor shall, at City’s expense, comply with the order and take all reasonable steps to minimize costs allocable to the Work covered by the Suspension Order. During the Suspension or extension of the Suspension, if any, City shall either cancel the Suspension Order or, by Change Order, delete the Work covered by the Suspension Order. If a Suspension Order is canceled or expires, Contractor shall resume and continue with the Work. A Change Order will be issued to cover any adjustments of the Contract Sum or the Contract Time necessarily caused by such suspension. A Suspension Order shall not be the exclusive method for City to stop the Work. 16.5 Termination Without Cause. City may, at its sole discretion and without cause, terminate this Construction Contract in part or in whole by giving thirty (30) Days written notice to Contractor. The compensation allowed under this Paragraph 16.5 shall be the Contractor’s sole and exclusive compensation for such termination and Contractor waives any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect or incidental damages of any kind resulting from termination without cause. 16.5.1 Compensation. Following such termination and within forty-five (45) Days after receipt of a billing from Contractor seeking payment of sums authorized by this Paragraph 16.5, City shall pay the following to Contractor as Contractor’s sole compensation for performance of the Work : Invitation for Bid (IFB) Package 19 Rev. May 1, 2012 CONSTRUCTION CONTRACT .1 For Work Performed. The amount of the Contract Sum allocable to the portion of the Work properly performed by Contractor as of the date of termination, less sums previously paid to Contractor. .2 For Close-out Costs. Reasonable costs of Contractor and its Subcontractors and Sub-subcontractors for: (i) Demobilizing and (ii) Administering the close-out of its participation in the Project (including, without limitation, all billing and accounting functions, not including attorney or expert fees) for a period of no longer than thirty (30) Days after receipt of the notice of termination. .3 For Fabricated Items. Previously unpaid cost of any items delivered to the Project Site which were fabricated for subsequent incorporation in the Work. 16.5.2 Subcontractors. Contractor shall include provisions in all of its subcontracts, purchase orders and other contracts permitting termination for convenience by Contractor on terms that are consistent with this Construction Contract and that afford no greater rights of recovery against Contractor than are afforded to Contractor against City under this Section. 16.6 Contractor’s Duties Upon Termination. Upon receipt of a notice of termination for default or for convenience, Contractor shall, unless the notice directs otherwise, do the following: (i) Immediately discontinue the Work to the extent specified in the notice; (ii) Place no further orders or subcontracts for materials, equipment, services or facilities, except as may be necessary for completion of such portion of the Work that is not discontinued; (iii) Provide to City a description, in writing no later than fifteen (15) days after receipt of the notice of termination, of all subcontracts, purchase orders and contracts that are outstanding, including, without limitation, the terms of the original price, any changes, payments, balance owing, the status of the portion of the Work covered and a copy of the subcontract, purchase order or contract and any written changes, amendments or modifications thereto, together with such other information as City may determine necessary in order to decide whether to accept assignment of or request Contractor to terminate the subcontract, purchase order or contract; (iv) Promptly assign to City those subcontracts, purchase orders or contracts, or portions thereof, that City elects to accept by assignment and cancel, on the most favorable terms reasonably possible, all subcontracts, purchase orders or contracts, or portions thereof, that City does not elect to accept by assignment; and (v) Thereafter do only such Work as may be necessary to preserve and protect Work already in progress and to protect materials, plants, and equipment on the Project Site or in transit thereto. SECTION 17 CONTRACTOR'S RIGHTS AND REMEDIES. 17.1 Contractor’s Remedies. Contractor may terminate this Construction Contract only upon the occurrence of one of the following: Invitation for Bid (IFB) Package 20 Rev. May 1, 2012 CONSTRUCTION CONTRACT 17.1.1 For Work Stoppage. The Work is stopped for sixty (60) consecutive Days, through no act or fault of Contractor, any Subcontractor, or any employee or agent of Contractor or any Subcontractor, due to issuance of an order of a court or other public authority other than City having jurisdiction or due to an act of government, such as a declaration of a national emergency making material unavailable. This provision shall not apply to any work stoppage resulting from the City’s issuance of a suspension notice issued either for cause or for convenience. 17.1.2 For City's Non-Payment. If City does not make pay Contractor undisputed sums within ninety (90) Days after receipt of notice from Contractor, Contractor may terminate the Construction Contract (30) days following a second notice to City of Contractor’s intention to terminate the Construction Contract. 17.2 Damages to Contractor. In the event of termination for cause by Contractor, City shall pay Contractor the sums provided for in Paragraph 16.5.1 above. Contractor agrees to accept such sums as its sole and exclusive compensation and agrees to waive any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect and incidental damages, of any kind. SECTION 18 ACCOUNTING RECORDS. 18.1 Financial Management and City Access. Contractor shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management under this Construction Contract in accordance with generally accepted accounting principles and practices. City and City's accountants during normal business hours, may inspect, audit and copy Contractor's records, books, estimates, take-offs, cost reports, ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to this Project. Contractor shall retain these documents for a period of three (3) years after the later of (i) final payment or (ii) final resolution of all Contract Disputes and other disputes, or (iii) for such longer period as may be required by law. 18.2 Compliance with City Requests. Contractor's compliance with any request by City pursuant to this Section 18 shall be a condition precedent to filing or maintenance of any legal action or proceeding by Contractor against City and to Contractor's right to receive further payments under the Contract Documents. City many enforce Contractor’s obligation to provide access to City of its business and other records referred to in Section 18.1 for inspection or copying by issuance of a writ or a provisional or permanent mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such court, without the necessity of oral testimony. SECTION 19 INDEPENDENT PARTIES. Each party is acting in its independent capacity and not as agents, employees, partners, or joint ventures’ of the other party. City, its officers or employees shall have no control over the conduct of Contractor or its respective agents, employees, subconsultants, or subcontractors, except as herein set forth. SECTION 20 NUISANCE. Contractor shall not maintain, commit, nor permit the maintenance or commission of any nuisance in connection in the performance of services under this Construction Contract. Invitation for Bid (IFB) Package 21 Rev. May 1, 2012 CONSTRUCTION CONTRACT SECTION 21 PERMITS AND LICENSES. Except as otherwise provided in the Special Provisions and Technical Specifications, The Contractor shall provide, procure and pay for all licenses, permits, and fees, required by the City or other government jurisdictions or agencies necessary to carry out and complete the Work. Payment of all costs and expenses for such licenses, permits, and fees shall be included in one or more Bid items. No other compensation shall be paid to the Contractor for these items or for delays caused by non-City inspectors or conditions set forth in the licenses or permits issued by other agencies. SECTION 22 WAIVER. A waiver by either party of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character. SECTION 23 GOVERNING LAW. This Construction Contract shall be construed in accordance with and governed by the laws of the State of California. SECTION 24 COMPLETE AGREEMENT. This Agreement represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This Agreement may be amended only by a written instrument, which is signed by the parties. SECTION 25 SURVIVAL OF CONTRACT. The provisions of the Construction Contract which by their nature survive termination of the Construction Contract or Final Completion, including, without limitation, all warranties, indemnities, payment obligations, and City’s right to audit Contractor’s books and records, shall remain in full force and effect after Final Completion or any termination of the Construction Contract. SECTION 26 PREVAILING WAGES. This Project is not subject to prevailing wages. The Contractor is not required to pay prevailing wages in the performance and implementation of the Project, because the City, pursuant to its authority as a chartered city, has adopted Resolution No. 5981 exempting the City from prevailing wages. The City invokes the exemption from the state prevailing wage requirement for this Project and declares that the Project is funded one hundred percent (100%) by the City of Palo Alto. Or The Contractor is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the California Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from the Director of the Department of Industrial Relations. Copies of these rates may be obtained at cost at the Purchasing office of the City of Palo Alto. Contractor shall provide a copy of prevailing wage rates to any staff or subcontractor hired, and shall pay the adopted prevailing wage rates as a minimum. Invitation for Bid (IFB) Package 22 Rev. May 1, 2012 CONSTRUCTION CONTRACT Contractor shall comply with the provisions of Sections 1775, 1776, 1777.5, 1810, and 1813 of the Labor Code. SECTION 27 NON APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that the City does not appropriate funds for the following fiscal year for this event, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Construction Contract are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 28 AUTHORITY. The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. SECTION 29 ATTORNEY FEES. Each Party shall bear its own costs, including attorney’s fees through the completion of mediation. If the claim or dispute is not resolved through mediation and in any dispute described in Paragraph 14.2, the prevailing party in any action brought to enforce the provision of this Agreement may recover its reasonable costs and attorney’s fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorney’s’ fees paid to third parties. SECTION 30 COUNTERPARTS This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement. SECTION 31 SEVERABILITY. In case a provision of this Construction Contract is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not be affected. IN WITNESS WHEREOF, the parties have caused this Construction Contract to be executed the date and year first above written. Invitation for Bid (IFB) Package 23 Rev. May 1, 2012 CONSTRUCTION CONTRACT CITY OF PALO ALTO ____________________________ Purchasing Manager City Manager APPROVED AS TO FORM: ___________________________ Senior Asst. City Attorney APPROVED: ___________________________ Director Public Works CONTRACTOR STEVE AGUIRRE By:___________________________ Name:_________________________ Title:________________________ CITY OF PALO ALTO OFFICE OF THE CITY CLERK January 14, 2013 The Honorable City Council Palo Alto, California Second Reading: Adoption of an Ordinance Establishing Underground Utility District No. 47 (Middlefield Road/Addison Avenue/Cowper Street/ Homer Avenue) by Amending Section 12.16.02 of the Palo Alto Municipal Code (First Reading: 12/10/2012, Passed: 8-0 Holman not participating) No Report is necessary as this is a second reading of the Ordinance and there were no changes made by Council. Department Head: Donna Grider, City Clerk 8 Packet Pg. 311 City of Palo Alto (ID # 3429) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/14/2013 City of Palo Alto Page 1 Summary Title: Second Reading Rezoning of 423-451 Page Mill Road Title: Second Reading: Adoption of an Ordinance Amending the Zoning Map to Change the Zoning Designation for 423-451 Page Mill Road from R-1 Single Family Residential Zone to C-S Service Commercial Zone with Site and Design (D) Review Combining District (First Reading: 12/10/2012, Passed: 9-0) From: City Manager Lead Department: Planning and Community Environment Recommendation Adopt the attached ordinance (Attachment A) on second reading. Background On December 3, 2012 the City Council approved the rezoning request from Single Family Residential (R-1) to Service Commercial (CS), the amendment of the Comprehensive Plan Land Use Designation from Single Family Residential to Service Commercial, and approved the Negative Declaration. The City Council also added the Site and Design Combining District (D) overlay to the subject properties to insure that any future commercial development of the site would be reviewed by the City Council, such that the adjacent Single Family residential properties would not be adversely impacted by new development. A redlined version of the revised ordinance is provided in Attachment A. The Negative Declaration has been amended to include the (D) Combining District. The City Council also directed staff to investigate the need for any easements on the 423-451 Page Mill Road properties for the extension of the double left turn lane on Page Mill Road at El Camino Real. Discussion 9 Packet Pg. 313 City of Palo Alto Page 2 Oregon Expressway/Page Mill Road falls within the County of Santa Clara’s jurisdiction. The City’s Transportation Division staff has discussed with County staff the potential need for widening and improvements to the expressway in the vicinity of the site. The County’s current plans and budgeted improvements plans include extending the shorter left turn lane about 70 feet to the east, which would not affect the need for additional right-of-way adjacent to the rezoned site. The County may, however, explore funding in the near future for further extension of the left turn lanes. It appears that the most impactful scenario if such an improvement were desired and funded would require removal of the parking on the south side of Page Mill Road and relocation of the curb up to two feet toward the site. The existing Public Right-of-Way between the face of curb and the property line is approximately 12 feet wide. With a five-foot sidewalk and a five-foot planter strip, the two additional feet needed would already be available to move the curb face back and not impact the property. A worst-case scenario for the site is that the two foot of right-of-way would be needed on the subject property. The County expects to finalize conceptual improvements in the spring of 2013. The owner and applicant are aware of the potential need for a two-foot wide easement across the frontage of the subject properties, and will be incorporating that added setback into the conceptual site and building design. The Planning and Transportation Commission and City Council will have an opportunity to review and require appropriate setbacks and street frontage design with the Site and Design review at that time. Staff therefore believes that no action is appropriate currently regarding right-of-way or setbacks, but that the project setbacks should be considered upon future Site and Design review. Attachments:  : Attachment A: Ordinance Rezoning 423-451 Page Mill to CS(D) (DOC) 9 Packet Pg. 314 NOT YET APPROVED 1 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 Approximately 0.6 Acre at 423-451 Page Mill Road, from Single-Family Residential (R-1) to Service Commercial with Site and Design Review Combining District (CS)(D). 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, after duly noticed public hearings on August 29, 2012 and on October 3, 2012 has recommended that the City Council rezone approximately 0.60 acre of land at 423-451 Page Mill Road from “R-1 Single-Family Residential” to “CS Service Commercial”; 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 rezoning the parcel to Service Commercial (CS) zoning is in accord with the Palo Alto Comprehensive Plan, in that the Comprehensive Plan Policy L-31 encourages the Cal Ventura area to be developed as a well- designed mixed use area; and D. The Council has held a duly noticed public hearing on the matter on December 3, 2012, and has reviewed the environmental documents prepared for the project and all other relevant information, including staff reports, and all testimony, written and oral, presented on the matter. City Council approved the Comprehensive Plan Amendment by Resolution, and added the D combining district to the CS Zone district rezoning requested by the applicant. SECTION 2. The Council finds that the public interest, health and welfare would be furthered by an amendment to the Zoning Map of the City of Palo Alto as set forth in Section 3. SECTION 3. The Council hereby amends the Zoning Map of the City of Palo Alto to place 423-451 Page Mill Road, 0.6 acre of land, within the “CS Service Commercial Zone District with Site and Design (D) Review Combining District.” 9.a Packet Pg. 315 At t a c h m e n t : A t t a c h m e n t A : O r d i n a n c e R e z o n i n g 4 2 3 - 4 5 1 P a g e M i l l t o C S ( D ) ( 3 4 2 9 : S e c o n d R e a d i n g R e z o n i n g o f 4 2 3 - 4 5 1 P a g e M i l l R o a d ) NOT YET APPROVED 2 SECTION 4. The Council hereby finds that this rezoning is subject to environmental review under provisions of the California Environmental Quality Act (CEQA). An environmental impact assessment and Negative Declaration were prepared and approved for the project and it has been determined that, no potentially adverse impacts would result from the rezoning of the property; therefore, the project would have no significant impact on the environment. SECTION 5. This ordinance shall be effective upon the thirty-first day after its passage and adoption. INTRODUCED PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: _________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: ____________________________ City Manager __________________________ Sr. Assistant City Attorney ____________________________ Director of Planning and Community Environment 9.a Packet Pg. 316 At t a c h m e n t : A t t a c h m e n t A : O r d i n a n c e R e z o n i n g 4 2 3 - 4 5 1 P a g e M i l l t o C S ( D ) ( 3 4 2 9 : S e c o n d R e a d i n g R e z o n i n g o f 4 2 3 - 4 5 1 P a g e M i l l R o a d ) City of Palo Alto (ID # 3395) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/14/2013 City of Palo Alto Page 1 Summary Title: JMZ Friends Agreement Term 2 Title: Approval of Amendment No. 1 to Mutual Cooperation and Support Agreement Between the City of Palo Alto and Friends of the Palo Alto Junior Museum & Zoo to Extend Term for Another Three Years From: City Manager Lead Department: Community Services Recommendation Staff requests the Council’s approval of Amendment No. 1 to Mutual Cooperation and Support Agreement (Amendment, Attachment A), to extend the term of the Agreement with the Friends of the Palo Alto Junior Museum and Zoo for a period of three years. Background The Friends of the Palo Alto Junior Museum and Zoo (Friends) have played an integral role in the support and operation of the Palo Alto Junior Museum and Zoo (JMZ) since their inception in 1962. Parenthetically, from 1962 through 1990 the group was called the Junior Museum and Zoo Associates. In 2002, the Friends approached the City to create a public-private partnership with the intent to raise the capital funds required to renovate the JMZ facility. (CMR 442:02) In February 2007, a Council Colleagues memo from then Vice-Mayor Klein and Council Members Beecham and Mossar requested that staff work with the Friends to explore the possibility of a new public/nonprofit partnership that would strengthen the ties between the City and the Friends, and projected that the outcome of any partnership agreement would be contingent upon the completion of a revised public/private partnership policy. That policy was revised and approved by the Council in June 2007. 10 Packet Pg. 317 City of Palo Alto Page 2 In November 2007, the Council approved an Agreement for Mutual Cooperation and Support with the Friends of the Palo Alto Junior Museum & Zoo (Agreement, Attachment B). The first three-year term of the Agreement ended in February 2011. Approving a second three-year term by the Amendment would extend the term of the Agreement until February 2014. Discussion In order to enhance their efforts as a support organization, the Friends proposed a concept whereby the City/Friends partnership would be strengthened by written agreement that provides the Friends a greater opportunity to play a role in program planning. By being more engaged in the decision-making process, the Friends’ Board and staff believe the potential for outside funding is increased by enhancing the JMZ program’s organizational capabilities and by providing a higher degree of ‘program ownership’ by the Friends’ Board of Directors and its Members. This partnership concept is based on a model, the successful arrangement that is the Randall Museum. It is operated by the Parks and Recreation Department of the City of San Francisco, that is quite similar to the JMZ program and as with the Randall Museum Friends, has a 501(c)3 nonprofit corporation for a partner. That agreement unites the efforts of the Randall Friends’ group with the Randall Museum staff to improve the museum and its uses. The Randall Museum Friends support the mission of the museum by serving as its fundraising arm and by providing volunteer resources, while working closely and cooperatively with City-paid museum management and staff. The attached agreement provides a framework whereby the Friends’ Board Members and staff are closely integrated in the operation of the JMZ. The Agreement provides the opportunity for the Friends to participate in short- and long-term planning efforts, have use of the facility for administrative and fundraising efforts, and permits the Friends’ staff to attend the JMZ Executive Director’s staff meetings. The Friends’ responsibility is to be fully committed to raising the outside funds and providing volunteer resources required to meet a mutually developed annual work plan. To further unite the partnership, the City plays a more active role with the Friends. Examples of City participation include nominating the JMZ manager as an ex-officio member of the Friends’ Board, asking the Council to provide a liaison to the Friends’ Board, and enabling the City-paid staff to collaboratively work with the Friends’ staff to realize mutual goals. 10 Packet Pg. 318 City of Palo Alto Page 3 Final responsibility for the planning and operation of the JMZ continue to lie with the City, but the Friends participate at a higher level of engagement in planning and implementing JMZ activities than was practicable in the past. Resource Impact No additional City resources have been required and this partnership has lead to enhanced program and capital funding over the life of the Agreement. Annually, the Friends and the JMZ Executive Director develop a fundraising plan and a spending plan. Since February 2008, when the agreement was approved, the Friends have provided over $1 million in goods and services to the JMZ in the following categories: Indoor Children’s Interactive Exhibits $ 83,648 Out-door Exhibits and Animal Habitats $ 612,437 Planning, Architectural and Engineering Services $ 224,195 Teacher Support, East Palo Alto Science Programs, and Volunteer Programs $ 129,189 Total $1,049,469 The Friends also advocate for the JMZ in the community and provide leadership support through their Board of Directors. Policy Implications This partnership is categorized as a Joint Venture under the City’s Public/Private Partnership Policy. As the Parties have continued unabated their collaboration in accordance with the terms and conditions of the Agreement, they wish to amend the Agreement to extend the initial term for an additional term of three (3) years. Environmental Review This is not a project for purposes of the California Environmental Quality Act, CEQA Guidelines, therefore, no environmental assessment is required. Attachments: 10 Packet Pg. 319 City of Palo Alto Page 4  : Attachment A: Amendment No. 1 to Agreement Friends of Junior Museum and Zoo (PDF)  : Attachment B: Final Signed Agreement Between CPA and JM&Z (PDF) 10 Packet Pg. 320 *NOT YET APPROVED* 1 121126 dm 00710138 AMENDMENT NO. 1 TO MUTUAL COOPERATION AND SUPPORT AGREEMENT BETWEEN THE CITY OF PALO ALTO AND FRIENDS OF THE PALO ALTO JUNIOR MUSEUM AND ZOO THIS AMENDMENT NO. 1 TO MUTUAL COOPERATION AND SUPPORT AGREEMENT (this “Amendment No. 1”), dated, for convenience, December 3, 2012 (the “Effective Date”), is entered into by the CITY OF PALO ALTO, a California chartered municipal corporation (the "CITY"), and the FRIENDS OF THE PALO ALTO JUNIOR MUSEUM AND ZOO, a California public benefit corporation (the “Friends”) (individually, a “Party” and, collectively, the “Parties”), in reference to the following facts: RECITALS: A. In 2007, the Parties entered into a Mutual Cooperation and Support Agreement (the “Agreement”), by which the Parties would more closely collaborate and support each other to improve, enhance, and sustain the capacity of the Palo Alto Junior Museum and Zoo. The initial term of the Agreement was three years, and the Parties could extend the initial term for an additional three years. B. As the Parties have continued unabated their collaboration in accordance with the terms and conditions of the Agreement, they wish to amend the Agreement to extend the initial term for an additional three (3) years. AGREEMENT: SECTION 1. Section 1.2 of TERM; EXTENSION; TERMINATION is hereby amended to read: “1.2 The Term shall be extended by the Parties for a period of three (3) years, commencing with the first day of the expiration date of the initial term. No additional extension terms are provided for hereunder.” SECTION 2. Except as amended hereunder, the terms and conditions of the Agreement that are not amended or otherwise affected by this Amendment No. 1 shall remain in full force and effect. // // // 10.a Packet Pg. 321 At t a c h m e n t : A t t a c h m e n t A : A m e n d m e n t N o . 1 t o A g r e e m e n t F r i e n d s o f J u n i o r M u s e u m a n d Z o o ( 3 3 9 5 : J M Z F r i e n d s A g r e e m e n t T e r m 2 ) *NOT YET APPROVED* 2 121126 dm 00710138 IN WITNESS WHEREOF, the Parties have by their duly appointed representatives executed this Amendment No. 1 to Mutual Support Agreement as of the Effective Date. CITY OF PALO ALTO FRIENDS OF THE PALO ALTO JUNIOR MUSEUM AND ZOO ___________________________ ___________________________ City Manager Member APPROVED AS TO FORM ___________________________ Member ___________________________ Senior Asst. City Attorney APPROVED: ____________________________ Director of Administrative Services ____________________________ Director of Community Services 10.a Packet Pg. 322 At t a c h m e n t : A t t a c h m e n t A : A m e n d m e n t N o . 1 t o A g r e e m e n t F r i e n d s o f J u n i o r M u s e u m a n d Z o o ( 3 3 9 5 : J M Z F r i e n d s A g r e e m e n t T e r m 2 ) 10.b Packet Pg. 323 At t a c h m e n t : A t t a c h m e n t B : F i n a l S i g n e d A g r e e m e n t B e t w e e n C P A a n d J M & Z ( 3 3 9 5 : J M Z F r i e n d s A g r e e m e n t T e r m 2 ) Contract No. C08125982 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND THE FRIENDS OF THE PALO ALTO JUNIOR MUSEUM AND ZOO FOR MUTUAL COOPERATION AND SUPPORT Dated as of_~F..;....eb;;..;;;.r...;.;;.u~ary~6-,-, .;.;.;;.,20.;;...,;0...;;.,8 __ 071031 jb 0072940 10.b Packet Pg. 324 At t a c h m e n t : A t t a c h m e n t B : F i n a l S i g n e d A g r e e m e n t B e t w e e n C P A a n d J M & Z ( 3 3 9 5 : J M Z F r i e n d s A g r e e m e n t T e r m 2 ) T ABLE OF CONTENTS Section Description Page 1 Term; Extension; Termination 3 2 Responsibilities of the Parties 4 "'I General License to the Friends 6 .) 4 Insurance 6 5 Indemnity 8 6 Waiver 9 7 No Property Rights 9 8 Assignment 9 9 Independent Contractor 9 10 N ondiscrilnination 9 11 Notices 10 12 Miscellaneous 10 Exhibit "A" Insurance Requirements Exhibit "B" Certification of Nondiscrimination 071031 jb 0072940 2 10.b Packet Pg. 325 At t a c h m e n t : A t t a c h m e n t B : F i n a l S i g n e d A g r e e m e n t B e t w e e n C P A a n d J M & Z ( 3 3 9 5 : J M Z F r i e n d s A g r e e m e n t T e r m 2 ) AGREEMENT BETWEEN THE CITY OF PALO ALTO AND THE FRIENDS OF THE PALO ALTO JUNIOR MUSEUM AND ZOO FOR MUTUAL COOPERATION AND SUPPORT This MUTUAL COOPERATION AND SUPPORT AGREEMENT (the "Agreelnent"), dated, for convenience, Decenlber 17,2007 (the "Effective Date"), is entered into by and between the CITY OF PALO ALTO, a California chartered nlunicipal corporation (the "City"), and the FRIENDS OF THE PALO ALTO JUNIOR MUSEUM AND ZOO, a California public benefit corporation organized under the California Nonprofit Public Benefit Corporation Law (the "Friends") (individually, a "Party" and, collectively, the "Parties"), in reference to the following facts and circunlstances: RECITALS: 1. The City owns and operates the Junior Museum (the "Museuln") and Zoo (collectively, the "JMZ"), located at 1451 Middlefield Road, Palo Alto, CA 94301. The JMZ is a program of the City's Community Services Department (the "Department") and exists within the Departlnent's Arts and Sciences division. 2. The Friends have assisted the City's JMZ staffin supporting and advocating on behalf of JMZ operations, programs and activities over the past thirty-eight years. The Friends intend to benefit the City and the Palo Alto community by providing certain services, which the Parties intend to be rendered in accordance with the general scope of the City's policy on Public/Private Partnerships. By this Agreement, the Friends will, at the direction of the City Manager, or designee, and through the use of both City and/or Department employees and JMZ staff-supervised and unpaid community volunteers, support the operations-and education-related programs, activities and opportunities offered by or within the JMZ. 3. The Parties wish to more closely collaborate and mutually cooperate and support each other in the future, to improve, enhance and sustain the capacity of the JMZ to develop and provide educational opportunities and related services to the Palo Alto comlnunity. AGREEMENT: NOW, THEREFORE, in consideration of the foregoing recitals and the following covenants, terms, conditions and provisions of this Agreement, the Parties agree: SECTION 1. TERM~ EXTENSION; TERMINATION 1.1 This Agreement will commence on the Effective Date, and the initial term is three (3) years (the "Term"), unless it is earlier terminated by a Party as herein provided. 1.2 The Term may be extended by the Parties for one (1) additional term of three (3) years 071031 jb 0072940 10.b Packet Pg. 326 At t a c h m e n t : A t t a c h m e n t B : F i n a l S i g n e d A g r e e m e n t B e t w e e n C P A a n d J M & Z ( 3 3 9 5 : J M Z F r i e n d s A g r e e m e n t T e r m 2 ) (the "Extension Term"); provided, however, the City may require the City Council's approval of the Extension Term. 1.3 A Party may temlinate for convenience this Agreement, in whole or in part, by giving the other Party no less than ninety (90) days' prior written notice. 1.4 This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code (the "PAMC"). This Agreement will terminate without penalty: (A) at the end of any fiscal year in the event that funds are not appropriated for the JMZ progranl for the following fiscal year; or (B) at any time within a fiscal year in the event that funds are appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section 1.4 will take precedence in the event of a conflict with any other covenant, tenn, condition or provision of this Agreelnent and the Exhibits. Nothing in this Section 1.4 is intended to affect the Friends' rights and remedies as may be available under applicable laws. SECTION 2. RESPONSIBILITIES OF THE PARTIES 2.1 The responsibilities of the City will include the following: A. The management of the JMZ facilities, programs and the City's staff enlployees, including any and all City-hired contractors, subcontractors, consultants and volunteers. The City will hire, supervise, evaluate and otherwise exercise supervision and control of its employees. The City may permit the Friends' duly authorized representatives to participate in the interview process for the hiring of a manager of the JMZ (the "JMZ Manager"); B. The feeding, care and Inaintenance of the JMZ wildlife residents and basic Inaintenance and repair of the JMZ facilities as well as the furnishing of internal and external landscaping and utility services to the JMZ; C. The selection of one or more individuals to serve as the City's liaison(s) to the Friends' board of directors and/or any board comlnittees (the "Board"), including (1) a Council Member, if any, who will serve as the official liaison of the City to the Board, and (2) the JMZ Manager, whose duties may include providing assistance to the Friends, including the Board, in selected fundraising activities, as may be directed or approved by the City Manager, or designee; D. The review of all comlnunity-related activities that the Friends may propose for inclusion in the JMZ programs. All activities of the Friends will be pre-approved by the JMZ Manager, or designee; E. Develop and provide educational programs relating to JMZ and supervise community volunteers in connection therewith; F. Manage the JMZ collections and supervise the accessioning, deaccessioning, cataloging, and conservation of the JMZ permanent collection in accordance with City, Department, Museum, state, and federal laws and applicable professional standards; and 071031 jb 0072940 4 10.b Packet Pg. 327 At t a c h m e n t : A t t a c h m e n t B : F i n a l S i g n e d A g r e e m e n t B e t w e e n C P A a n d J M & Z ( 3 3 9 5 : J M Z F r i e n d s A g r e e m e n t T e r m 2 ) G. Any other obligation(s) that the City, Depmiment or the Museum may undertake in accordance with this Agreelnent, upon reasonable notice to the Friends; provided, however, any such undertaking will be melnorialized, in writing, by an amendment to this Agreement, in order that such undertaking will be binding upon the City. 2.2 The responsibilities of the Friends will include the following: A. The supervision and managelnent of its directors, officers, employees, volunteers, contractors, subcontractors and consultants, while they, and each of them, are performing obligations on behalf of the Friends pursuant to this Agreement; B. The rendering of assistance to the JMZ Manager (through the Board and/or staff), at the JMZ Manager's request, including voluntary attendance and contribution at stafflneetings of the JMZ Manager; C. The provision and staffing of programs to educate the public about the JMZ and its programs and amenities, and the mobilization of volunteers for JMZ projects and programs; D. The development and implementation of a development plan for the JMZ (the "Friends Plan"), that is consistent with the JMZ strategic plan, referred to in Section 2.3(A), and the annual work planes), referred to in Section 2.3(B). The Development Plan will include donor acknowledgment and activities consistent with City policies and practices; and E. The rendering of other services beyond those spelled out in the annual JMZ Plan and related to the preservation, protection and enhancement of the JMZ, will be approved, in writing, by the JMZ Manager. 2.3 The responsibilities of the Parties will include the following: A. Under the direction of the JMZ Manager, develop a long-term strategic plan to enhance and improve the vision of the JMZ (the "Strategic Plan"); B. Under the direction of the JMZ Manager and consistent with the Strategic Plan, develop an annual work plan (the "JMZ Plan"), and, on an mmual basis, effective July 1 of each year, establish program, budget, fundraising and administrative and operational priorities and activities for each fiscal year of operations. The JMZ Plan will delineate the rights and obligations of the Parties and identify each Party's duly authorized representative. The JMZ Plan will include, without limitation, specific cash handling procedures to be followed by the Parties and the dispute resolution procedures for informally resolving differences of opinion of each Party regarding the substance and/or implementation of the JMZ Plan; and C. In regard to the JMZ Plan, the Parties will review, on a quarterly basis, in the status of reaching and/or exceeding the goals of the JMZ Plan, including budget goals. The Parties will evaluate, annually, the JMZ Plan. 071031 jb 0072940 5 10.b Packet Pg. 328 At t a c h m e n t : A t t a c h m e n t B : F i n a l S i g n e d A g r e e m e n t B e t w e e n C P A a n d J M & Z ( 3 3 9 5 : J M Z F r i e n d s A g r e e m e n t T e r m 2 ) 2.4 The responsibility of either Party or the Parties in regard to any capital improvement project ("CIP") for the JMZ will not be established by this Agreement. The Parties agree to reserve for future consideration any existing or future CIP for the JMZ, including the scope of a capital fundraising program and the responsibilities of each Party in regard to thereto. The provision of any CIP may be addressed by amendment to this Agreement or by separate instrument, as determined by the Parties. 2.5 To the extent this Section 2 does not specifically identify the Party who will be primarily responsible for any action or decision in regard to the JMZ, the Parties agree that the City will be the party to assume all rights and obligations in connection with such decision. SECTION 3. GENERAL LICENSE TO THE FRIENDS 3.1 The City hereby grants the Friends, its directors, officers, employees, contractors, subcontractors and consultants a nonexclusive license to enter upon and use the JMZ facilities in connection with the Friends' execution of its individual and/or joint responsibilities established by the JMZ Plan, including, but not limited to, organizing small group meetings and large group/community meetings and events at the JMZ, such as fundraising events, programs, and tours of the JMZ facilities, and using the office space afforded to the Friends for their use at the JMZ facilities in connection with this Agreement. Any use of the JMZ facilities will be approved by the JMZ Manager in regards to program scheduling, space availability, and the functionality of shared JMZ spaces for staffuse. The City will provide to the employees of the Friends security card access to the JMZ; any additional cards will be approved by the JMZ Manager, upon request, in writing. SECTION 4. INSURANCE 4.1 As of the Effective Date, the Friends, at its sole cost and expense, will obtain and maintain the following insurance coverage, and as further described in Exhibit "A," acceptable to the City's insurance risk manager (the "Risk Manager") in full force and effect during the Tenn, insuring not only the Friends but, with the exception of worker's cOlnpensation and elnployer's liability insurance, naming the City as an additional insured, concerning the Friends' participation under this Agreement. POLICY A. B. 071031 jb 0072940 WORKER'S COMPENSA TION COMPREHENSIVE AUTOMOBILE LIABILITY MINIMUM LIMITS OF LIABILITY Statutory Bodily Injury $1,000,000 ea. person Property Damage $1,000,000 each person, including owned, hired, and non-owned automobiles 6 10.b Packet Pg. 329 At t a c h m e n t : A t t a c h m e n t B : F i n a l S i g n e d A g r e e m e n t B e t w e e n C P A a n d J M & Z ( 3 3 9 5 : J M Z F r i e n d s A g r e e m e n t T e r m 2 ) C. COMPREHENSIVE GENERAL LIABILITY Bodily Injury $1,000,000 each person, $1,000,000 each occurrence, $1,000,000 aggregate including products, Property Damage $1,000,000 each occurrence & con1pleted operations, Personal Injury $1,000,000 each occurrence, broad form contractual, and personal injury. 4.2 Any deductibles or self-insured retentions must be declared to and approved by the Risk Manager. At the City's option, the insurer will reduce or eliminate such deductibles or self- insured retentions as respects the City. The Friends' insurance will be carried in full force and effect on or before the Effective Date. Every insurance policy required by this Agreement will contain the following or substantially similar clauses: A. "This insurance shall not be canceled, limited in scope of coverage or nonrenewed until after thirty (30) days written notice has been given to: City of Palo Alto/Junior Museuln and Zoo Manager, P.O. Box 10250, Palo Alto, CA 94303". B. "All rights of subrogation are hereby waived against the City of Palo Alto and the Inembers of the City Council and elective or appointive officers or employees, when acting within the scope of their emploYlnent or appointment." C. "The City of Palo Alto is added as an additional insured as respects operations of the named insured at or from the JMZ." D. "It is agreed that any insurance maintained by the City of Palo Alto will apply in excess of, and not contribute to, insurance provided by this policy." 4.3 Evidence of Insurance Coverage and/or Changes will be, as follows: A. Certificate of Insurance. The Friends agree to deposit with the JMZ Manager before the effective date of this Agreement, certificates of insurance necessary to satisfy the City that the insurance provisions of this Agreement have been complied with, and to ensure that such insurance is kept in effect, with the certificates on deposit with the City, during the Term. Should the Friends fail to provide evidence of such required coverage at least three (3) days prior to the expiration of any existing insurance coverage, the City Inay purchase such insurance, on behalf of and at the sole expense of the Friends, to provide an additional six-month period of coverage. B. Review of Coverage. The City will retain the right, at any tin1e, to review the coverage, form, and amount of the insurance required hereby. If, in the opinion of the Risk Manager, the insurance provisions in this Agreement do not provide adequate protection for the City and for members of the public using the JMZ, the City Manager, or designee, may require an amount to provide adequate protection as 071031 jb 0072940 7 10.b Packet Pg. 330 At t a c h m e n t : A t t a c h m e n t B : F i n a l S i g n e d A g r e e m e n t B e t w e e n C P A a n d J M & Z ( 3 3 9 5 : J M Z F r i e n d s A g r e e m e n t T e r m 2 ) determined by the Risk Manager. The City's requirelnents shall be reasonable and shall be designed to assure protection from and against the kind and extent of risk which exists at the time a change in insurance is required. C. Changes in Coverage. The City Manager, or designee, will notify the Friends, in writing, of any change( s) in the insurance requirements; if the Friends does not deposit copies of acceptable insurance policies (or certificates) with the City, to the attention of the Risk Manager, incorporating such changes within sixty (60) days of receipt of such notice, or in the event the Friends fail to ensure that the required insurance coverage is maintained in effect, the City Inay terminate this Agreement in accordance with Section 1. D. No Limit of Liability. The procuring of such required policy or policies of insurance will not be construed to limit the Friends' liability hereunder or to fulfill the indenlnification provision and requirements of this Agreement. Notwithstanding the policy or policies of insurance, the Friends will be obligated for the full and total alnount of any danlage, injury, or loss caused by or connected with this Agreement, with the Friends' use of the JMZ. E. Acceptability of Insurers. Insurance shall be placed with insurers with a current A.M. Best's rating of no less than A:X. SECTION 5. INDEMNITY 5.1 Except as provided under Section 5.2, the Friends hereby waive all clainls, liability and recourse against the City, including the right of contribution for loss or damage of or to persons or property arising from, growing out of, or in any way connected with or related to this Agreelnent. The Friends will protect, indemnify, hold harmless and defend the City, its officials, officers, employees, representatives and agents, from and against any and all claims, losses, liability, demands, damages, costs, expenses or attorneys' fees, caused by or arising out of the Friends' negligent acts or omissions, or willful Inisconduct, in the performance or nonperformance of its obligations under the covenants, terms, conditions and provisions of this Agreelnent. The preceding sentence notwithstanding, no personal liability will attach to ally Board member under the provisions of this Section 5 for any negligent action or inaction. In the event the City is named as co-defendant, the Friends will notify, in writing, the City, to the attention of the City's City Attorney (the "City Attorney"), of such fact and it will represent the City in such legal action, unless the City undertakes to represent itself as co-defendant in such legal action, in which event the Friends will pay to the CITY its reasonable litigation costs and expenses, including reasonable attorneys' fees. 5.2 The City will protect, indemnify, hold harmless and defend the Friends, its directors. officers, employees and agents, against any and all claims, losses, liability, demands, damages, costs, expenses or attorneys' fees arising out of the City'S negligent performance or nonperformance of its obligations under the terms of this Agreement. 071031 jb 0072940 8 10.b Packet Pg. 331 At t a c h m e n t : A t t a c h m e n t B : F i n a l S i g n e d A g r e e m e n t B e t w e e n C P A a n d J M & Z ( 3 3 9 5 : J M Z F r i e n d s A g r e e m e n t T e r m 2 ) SECTION 6. WAIVER 6.1 The waiver by either Party of any breach or violation of any covenant, term, or condition of this Agreement or of the provisions of the PAMC or other City law, rule or regulation, will not be deemed to be a waiver of any such covenant, term, condition, or provision or of any subsequent breach or violation of the same or any other covenant, term, condition, or provision. The subsequent acceptance by either Party of any consideration which may become due or payable hereunder will not be deemed to be a waiver of any preceding breach or violation by the other Party SECTION 7. NO PROPERTY RIGHTS 7.1 The Pmiies agree that this Agreement will not confer any property right upon the Friends, its directors, officers, employees, volunteers, contractors, subcontractors or consultants. Any work perfonned for the benefit of the JMZ and any improvements placed or constructed at the JMZ will conform to the City's standards and approved by the City Manager, or designee, and will, upon acceptance, become the property of the City. SECTION 8. ASSIGNMENT 8.1 Neither Party may assign, transfer, or convey this Agreement or any interest that it Inay have in this Agreen1ent without the other Party's express consent or approval. Any attempted assignment without the required consent or approval will be void and will confer no right, title, or interest in or to this Agreement, or part thereof. In the event of an unauthorized assignment, at the option of the Party not making the assigrunent, this Agreen1ent Inay be terminated upon reasonable notice to the Party Inaking the assignment. SECTION 9. INDEPENDENT CONTRACTOR 9.1 In the exercise of its rights and responsibilities under this Agreelnent, the Friends act at all times as an independent contractor and not as an employee of the City. Nothing in this Agreement will be construed to establish a partnership, joint venture, group, pool, syndicate or agency between the Parties. No provision contained herein will be construed as authorizing or empowering either Party to aSSUlne or create any obligation or responsibility whatsoever, express or implied, on behalf, or in the name of, the other Party in any mmmer, or to Inake any representation, warranty or commitment on behalf of the other Party. In no event will either Party be liable for (a) any loss incurred by the other Party in the course of its performance hereunder, or (b) any debts, obligations or liabilities of the other Party, whether due or to become due. SECTION 10. NONDISCRIMINATION 10.1 The PAMC prohibits discrilnination in the employment of any individual under this Agreement because of race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of that person. The Foundation acknowledges that it has read and understands the provisions of PAM C Chapter 2.30 relating to nondiscrimination in employment and the penalties for violations thereof, and it agrees to 071031 jb 0072940 9 10.b Packet Pg. 332 At t a c h m e n t : A t t a c h m e n t B : F i n a l S i g n e d A g r e e m e n t B e t w e e n C P A a n d J M & Z ( 3 3 9 5 : J M Z F r i e n d s A g r e e m e n t T e r m 2 ) comply with all requirements of P AMC Chapter 2.30 pertaining to nondiscrimination in employment, including the cOlnpletion, execution and submission to the City of the Certification of NondiscriInination, as described in Exhibit "B." SECTION 11. NOTICES 11.1 Any notice, request, consent or approval by a Party that is required to be furnished by this Agreelnent, will be given, in writing, and delivered by personal service, the United States Postal Service, mailed, first class, postage prepaid, or by facsin1ile transmission, to the following: To CITY: City Clerk City of Palo Alto P.O. Box 10250 Palo Alto, CA 94303 with a copy to: Manager, Junior Museum and Zoo City of Palo Alto P.O. Box 10250 Palo Alto, CA 94303 SECTION 12. MISCELLANEOUS To FRlENDS: Executive Director Friends of the Palo Alto Junior MuseUln and Zoo 1451 Middlefield Road Palo Alto, CA 94303-4303 12.1 This Agreement will be governed by and construed in accordance with the laws of the State of Cali fomi a and the Charter of the City of Palo Alto and the Palo Alto Municipal Code. The Parties will comply with all applicable federal, state and local laws in the exercise of their rights and the performance of their obligations under this Agreement. 12.2 All covenants, terms, conditions, and provisions of this Agreement, whether covenants or conditions, will be deemed to be both covenants and conditions. 12.3 This Agreement represents the entire agreement between the Parties and supersedes all prior negotiations, representations and contracts, written or oral. This Agreement may be amended by an instrument, in writing, signed by the Parties. 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. 12.4 All exhibits referred to in this Agreement are by such references incorporated in this Agreement and made a part hereof. The following exhibits are (or will be) made a part of this Agreement: 071031 jb 0072940 10 10.b Packet Pg. 333 At t a c h m e n t : A t t a c h m e n t B : F i n a l S i g n e d A g r e e m e n t B e t w e e n C P A a n d J M & Z ( 3 3 9 5 : J M Z F r i e n d s A g r e e m e n t T e r m 2 ) Exhibit "A" -Insurance Requirements Exhibit "B" -Certification of Nondiscrimination. 12.5 At the request of the City, the Friends will furnish to the City Attorney for the City's review and approval copies of its articles of organization, operating agreelnent, and other information relating to its organization status. 12.6 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 Agreelnent, the Exhibits, or any amendment thereto. 12.7 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 or in the United States District Court for the Northern District of California in the County of Santa Clara, State of California. 12.8 The prevailing Party in any action brought to enforce the provisions of this Agreement Inay recover its reasonable costs and attorneys' fees expended in comlection with that action. 12.9 If a court of competent jurisdiction finds or rules that any provision of this Agreement, the Exhibits, or any amendment thereto, is void or unenforceable, the unaffected provisions of this Agreelnent, the Exhibits, or any amendment thereto, will relnain in full force and effect. 12.10 The tenn "day" means a calendar day, unless a "business day" is specified; for the purposes of this Agreement, "business day" excludes any "Regular Holiday" or "Other Special Day" referred to in PAMC Section 2.08.100 or any Friday that is considered a '9/80' day, when the City does not require elnployees, electing to work nine (9) business days in a ten-business days biweekly period, to work on such days. II II II II II II II II 071031 jb 0072940 11 10.b Packet Pg. 338 At t a c h m e n t : A t t a c h m e n t B : F i n a l S i g n e d A g r e e m e n t B e t w e e n C P A a n d J M & Z ( 3 3 9 5 : J M Z F r i e n d s A g r e e m e n t T e r m 2 ) 071031 jb 0072940 EXHIBIT "A" INSURANCE REQUIREMENTS 14 10.b Packet Pg. 341 At t a c h m e n t : A t t a c h m e n t B : F i n a l S i g n e d A g r e e m e n t B e t w e e n C P A a n d J M & Z ( 3 3 9 5 : J M Z F r i e n d s A g r e e m e n t T e r m 2 ) COMMERCIAL LIABILITY CGL -ENDORSEMENTS INSURED POLICY NUMBER INSURANCE COMPANY Friends Of The Palo Alto Jr. 12184NPO COMMERCIAL GENERAL LIABILITY Non-Profit Insurance AlHance This Endorsement Changes The Policy. Please Read It Carefully. ADDITIONAL INSURED MANAGERS OR LESSORS OF PREMISES This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE 1) Designation Of Premises (Part leased To You) : 250 Hamilton Ave Palo Alto, Ca. 94301 2) Name Of Person Or Organization (Additional Insured} : City of Palo Alto 3) AddItional Premium: (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the schedulet but only with respect to liability arising out of the ownershipt maintenance or use of that part of the premises leased to you and shown in the schedule and subject to the following additional exclusions : This insurance does not apply to: a) Any "occurrence" which takes place after you cease to be a tenant in that premises. b) Structural alterationst hew construction or demolition operations performed by or on behalf of the person or organization shown in the schedule. CG 20 11 01 96 10.b Packet Pg. 342 At t a c h m e n t : A t t a c h m e n t B : F i n a l S i g n e d A g r e e m e n t B e t w e e n C P A a n d J M & Z ( 3 3 9 5 : J M Z F r i e n d s A g r e e m e n t T e r m 2 ) 071031 jb 0072940 EXHIBIT "B" CERTIFICATION OF NONDISCRIMINATION 15 City of Palo Alto (ID # 3252) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/14/2013 City of Palo Alto Page 1 Summary Title: Tree Pruning and Removal Services Contract Title: Approval of a Three Year Contract with West Coast Arborists, Inc. in a Total Amount Not to Exceed $1,050,000 for Tree Pruning and Removal Services From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council approve and authorize the City Manager or his designee to execute the attached three year contract with West Coast Arborists, Inc. (Attachment A) in a total amount not to exceed $1,050,000 for Tree Pruning and Removal Services. Background Contract tree maintenance work by area was started in FY 2000 and has provided a pro-active cycle of basic tree maintenance for the city. These area contracts have helped free up City tree maintenance personnel for the varied responsive work tasks they perform including tree removals, tree plantings, and tree pruning requests from other parts of the City not included in the current year’s contract maintenance area. Discussion Project Description The work to be performed under this contract includes routine pruning, tree removal, and stump grinding. The primary focus of the first year of the project will be routine pruning for clearance and safety in Maintenance Area 4 City of Palo Alto Page 2 (Attachment B). Included within Area 4 is the University Avenue gateway corridor from U.S Highway 101 to Middlefield Road. Should an emergency or other priority situation arise, contract crews from West Coast Arborists, Inc. may be utilized in other areas of the city as well. Subsequent years will focus on Maintenance Areas 5 and 6. Tree maintenance operations will be conducted in accordance with current standards as established by the American National Standard Institute (ANSI). Specifically, current ANSI A300 (Tree, Shrub and other Woody Plant Maintenance – Standard Practices), ANSI Z133 (Safety Requirements for Arboricultural Operations) and accompanying “Best Management Practices” publications will be adhered to. Each contract crew will be led by an International Society of Arboriculture (ISA) Certified Tree Worker and an ISA Certified Arborist supervising employee will be provided for every six contract employees. Bid Process (Intergovernmental Cooperative Purchase) In August 2012, the City of Sacramento completed a competitive solicitation process to select a contractor for tree pruning and removal services. West Coast Arborists, Inc. was determined to be the most qualified contractor and was awarded a one-year contract with two one-year renewal options. To streamline the solicitation process and take advantage of the favorable pricing obtained in the Sacramento solicitation process, staff recommends utilizing the Purchasing Ordinance’s “piggyback” provision as allowed in Palo Alto Municipal Code section 2.30.360(k). In order to utilize another governmental or public agency’s solicitation these four criteria must be met: (I) the agency used a solicitation method substantially similar to the method required by this chapter; The City of Sacramento solicitation methodology and award of contract (Attachments C and D) are substantially similar to those of the City of Palo Alto. (ii) The contract allows other agencies to utilize or the vendor authorizes the city to utilize; the vendor (West Coast Arborists, Inc.) has authorized the City of Palo Alto to utilize the contract (Attachment E). City of Palo Alto Page 3 (iii) the contract is consistent with requirements specified in this code; The contract (Attachment D) between the City of Sacramento and West Coast Arborists, Inc. is consistent with the requirements of the Palo Alto Municipal Code. (iv) there is an overall value to the city's utilizing the contract versus the city performing it's own solicitation; The City of Palo Alto will benefit from a fee schedule that was bid on a larger (250%) scale project resulting in significant cost savings; there will be a significant time savings in putting a contract in place; and Administrative Services and Public Works staff will be freed up for work on other solicitations and projects. Public Works staff worked directly with the Purchasing Division in Administrative Services to ensure compliance with the Palo Alto Municipal Code for this solicitation. The City has checked references and West Coast Arborists, Inc. has a good record, including some jobs in Palo Alto such as the University Avenue Street Tree Project in 2004. More recently, in FY 2011-12, West Coast Arborists, Inc. successfully completed the Parks & Facilities Tree Maintenance Services contract and the Street Tree Maintenance Services contract also in Palo Alto. Resource Impact Funds for the first year of this project are available in the FY 2013 Public Services Division and Refuse Fund operating budgets of the Public Works Department. The Refuse Fund contributes $25,000 annually to ensure limbs are cleared for street sweepers to avoid damage to low hanging limbs. . Funding for each additional year is contingent upon Council approval of that Fiscal Year’s budget. Policy Implications This recommendation does not represent any change to existing City policies. City of Palo Alto Page 4 Environmental Review The recommended action is exempt from review under the California Environmental Quality Act pursuant to CEQA Guidelines Section 15301(h) (maintenance of existing landscape). Attachments:  Attachment A - Contract (DOC)  Attachment B _ Area 4 Map (PDF)  Attachment C _ Sacramento Request For Proposal (PDF)  Attachment D _ Sacramento Council Report and Contract (PDF)  Attachment E _West Coast Arborists (PDF) Rev. July 11, 2011 CITY OF PALO ALTO CONTRACT NO. C13148075 ATTACHMENT A CITY OF PALO ALTO CONTRACT NO. C13148075 GENERAL SERVICES AGREEMENT THIS AGREEMENT made and entered into on the 14th day of JANUARY, 2013, by and between the CITY OF PALO ALTO, a California Chartered Municipal Corporation (“CITY”), and WEST COAST ARBORISTS, INC., a partnership, located at 2200 E. Via Burton Street, Anaheim, CA 92806, Telephone Number: 800-521-3714 (“CONTRACTOR”). In consideration of their mutual covenants, the parties hereto agree as follows: 1. SERVICES. CONTRACTOR shall provide or furnish the services (“Services”) described in the Scope of Services, attached as Exhibit A. 2. EXHIBITS. The following exhibits are attached to and made a part of this Agreement: “A” - Scope of Services “B” - Schedule of Performance “C” - Compensation “D” - Insurance Requirements CONTRACT IS NOT COMPLETE UNLESS ALL EXHIBITS ARE ATTACHED. 3. TERM. The term of this Agreement is from 1/14/2013 to 6/30/2015 inclusive, subject to the provisions of Sections Q and V of the General Terms and Conditions. 4. SCHEDULE OF PERFORMANCE. CONTRACTOR shall complete the Services within the term of this Agreement in a reasonably prompt and timely manner based upon the circumstances and direction communicated to CONTRACTOR, and if applicable, in accordance with the schedule set forth in the Schedule of Performance, attached as Exhibit B. Time is of the essence in this Agreement. 5. COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees to accept as not to exceed compensation for the full performance of the Services and reimbursable expenses, if any, a sum calculated in accordance with the fee schedule set forth in Exhibit C, not to exceed a total maximum compensation amount of one million fifty thousand dollars ($1,050,000.00). CONTRACTOR agrees that it can perform the Services for an amount not to exceed the total maximum compensation set forth above. Any hours worked or services performed by CONTRACTOR for which payment would result in a total exceeding the maximum amount of compensation set forth above for performance of the Services shall be at no cost to CITY. The City has set aside the sum of dollars ($ ) for Additional Services. CONTRACTOR shall provide Additional Services only by advanced, written authorization from the City Manager or designee. CONTRACTOR, at the CITY’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONTRACTOR’s proposed maximum compensation, including reimbursable expense, for such services. Compensation shall be based on the hourly rates set forth above or in Exhibit C (whichever is applicable), or if such rates are not applicable, a negotiated lump sum. CITY shall not authorize and CONTRACTOR shall not perform any Additional Services for which payment would exceed the amount set forth above for Additional Services. Payment for Additional Services is subject to all requirements and restrictions in Rev. July 11, 2011 CITY OF PALO ALTO CONTRACT NO. C13148075 this Agreement. 6. COMPENSATION DURING ADDITIONAL TERMS. CONTRACTOR compensation rates for each additional term shall be the same as the original term. 7. INVOICING. Send all invoices to the CITY, Attention: Project Manager. The Project Manager is: Eugene Segna, Dept.: Public Works, Public Services division, P.O. Box 10250, Palo Alto, CA 94303 Telephone: 650-496-6946. Invoices shall be submitted in arrears for Services performed. Invoices shall not be submitted more frequently than monthly. Invoices shall provide a detailed statement of Services performed during the invoice period and are subject to verification by CITY. CITY shall pay the undisputed amount of invoices within 30 days of receipt. GENERAL TERMS AND CONDITIONS A. ACCEPTANCE. CONTRACTOR accepts and agrees to all terms and conditions of this Agreement. This Agreement includes and is limited to the terms and conditions set forth in sections 1 through 6 above, these general terms and conditions and the attached exhibits. B. QUALIFICATIONS. CONTRACTOR represents and warrants that it has the expertise and qualifications to complete the services described in Section 1 of this Agreement, entitled “SERVICES,” and that every individual charged with the performance of the services under this Agreement has sufficient skill and experience and is duly licensed or certified, to the extent such licensing or certification is required by law, to perform the Services. CITY expressly relies on CONTRACTOR’s representations regarding its skills, knowledge, and certifications. CONTRACTOR shall perform all work in accordance with generally accepted business practices and performance standards of the industry, including all federal, state, and local operation and safety regulations. C. INDEPENDENT CONTRACTOR. It is understood and agreed that in the performance of this Agreement, CONTRACTOR and any person employed by CONTRACTOR shall at all times be considered an independent CONTRACTOR and not an agent or employee of CITY. CONTRACTOR shall be responsible for employing or engaging all persons necessary to complete the work required under this Agreement. D. SUBCONTRACTORS. CONTRACTOR may not use subcontractors to perform any Services under this Agreement unless CONTRACTOR obtains prior written consent of CITY. CONTRACTOR shall be solely responsible for directing the work of approved subcontractors and for any compensation due to subcontractors. E. TAXES AND CHARGES. CONTRACTOR shall be responsible for payment of all taxes, fees, contributions or charges applicable to the conduct of CONTRACTOR’s business. F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services comply with all applicable federal, state and local laws, ordinances, regulations, and orders. G. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole expense, repair in kind, or as the City Manager or designee shall direct, any damage to public or private property that occurs in connection with CONTRACTOR’s performance of the Services. CITY may decline to approve and may withhold payment in whole or in part to such extent as may be necessary to protect CITY from loss because of defective work not remedied or other damage to the CITY occurring in connection with CONTRACTOR’s performance of the Services. CITY shall submit written documentation in support of such withholding upon CONTRACTOR’s request. When the grounds described above are removed, payment shall be made for amounts withheld because of them. Rev. July 11, 2011 CITY OF PALO ALTO CONTRACT NO. C13148075 H. WARRANTIES. CONTRACTOR expressly warrants that all services provided under this Agreement shall be performed in a professional and workmanlike manner in accordance with generally accepted business practices and performance standards of the industry and the requirements of this Agreement. CONTRACTOR expressly warrants that all materials, goods and equipment provided by CONTRACTOR under this Agreement shall be fit for the particular purpose intended, shall be free from defects, and shall conform to the requirements of this Agreement. CONTRACTOR agrees to promptly replace or correct any material or service not in compliance with these warranties, including incomplete, inaccurate, or defective material or service, at no further cost to CITY. The warranties set forth in this section shall be in effect for a period of one year from completion of the Services and shall survive the completion of the Services or termination of this Agreement. I. MONITORING OF SERVICES. CITY may monitor the Services performed under this Agreement to determine whether CONTRACTOR’s work is completed in a satisfactory manner and complies with the provisions of this Agreement. J. CITY’S PROPERTY. Any reports, information, data or other material (including copyright interests) developed, collected, assembled, prepared, or caused to be prepared under this Agreement will become the property of CITY without restriction or limitation upon their use and will not be made available to any individual or organization by CONTRACTOR or its subcontractors, if any, without the prior written approval of the City Manager. K. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for three (3) years from the date of final payment, CONTRACTOR’s records pertaining to matters covered by this Agreement. CONTRACTOR agrees to maintain accurate books and records in accordance with generally accepted accounting principles for at least three (3) following the terms of this Agreement. L. NO IMPLIED WAIVER. No payment, partial payment, acceptance, or partial acceptance by CITY shall operate as a waiver on the part of CITY of any of its rights under this Agreement. M. INSURANCE. CONTRACTOR, at its sole cost, shall purchase and maintain in full force during the term of this Agreement, the insurance coverage described in Exhibit D. Insurance must be provided by companies with a Best’s Key rating of A-:VII or higher and which are otherwise acceptable to the City’s Risk Manager. The City’s Risk Manager must approve deductibles and self-insured retentions. In addition, all policies, endorsements, certificates and/or binders are subject to approval by the Risk Manager as to form and content. CONTRACTOR shall obtain a policy endorsement naming the City of Palo Alto as an additional insured under any general liability or automobile policy. CONTRACTOR shall obtain an endorsement stating that the insurance is primary coverage and will not be canceled or materially reduced in coverage or limits until after providing 30 days prior written notice of the cancellation or modification to the City’s Risk Manager. CONTRACTOR shall provide certificates of such policies or other evidence of coverage satisfactory to CITY’s Risk Manager, together with the required endorsements and evidence of payment of premiums, to CITY concurrently with the execution of this Agreement and shall throughout the term of this Agreement provide current certificates evidencing the required insurance coverages and endorsements to the CITY’s Risk Manager. CONTRACTOR shall include all subcontractors as insured under its policies or shall obtain and provide to CITY separate certificates and endorsements for each subcontractor that meet all the requirements of this section. The procuring of such required policies of insurance shall not operate to limit CONTRACTOR’s liability or obligation to indemnify CITY under this Agreement. N. HOLD HARMLESS. To the fullest extent permitted by law and without limitation by the provisions of section M relating to insurance, CONTRACTOR shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents from and against any and all demands, claims, injuries, losses, or liabilities of any nature, including death or injury to any person, property damage or any other loss and including without limitation all damages, penalties, fines and judgments, associated investigation and administrative expenses and defense costs, including, but not limited to reasonable attorney’s fees, courts costs and costs of alternative dispute resolution), arising out of, or resulting in any way from or in connection with the performance of this Agreement. The Rev. July 11, 2011 CITY OF PALO ALTO CONTRACT NO. C13148075 CONTRACTOR’s obligations under this Section apply regardless of whether or not a liability is caused or contributed to by any negligent (passive or active) act or omission of CITY, except that the CONTRACTOR shall not be obligated to indemnify for liability arising from the sole negligence or willful misconduct of the CITY. The acceptance of the Services by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section survive the completion of the Services or termination of this Contract. O. NON-DISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONTRACTOR certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONTRACTOR acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. P. WORKERS' COMPENSATION. CONTRACTOR, by executing this Agreement, certifies that it is aware of the provisions of the Labor Code of the State of California which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and certifies that it will comply with such provisions, as applicable, before commencing and during the performance of the Services. Q. TERMINATION. The City Manager may terminate this Agreement without cause by giving ten (10) days’ prior written notice thereof to CONTRACTOR. If CONTRACTOR fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided by law, the City Manager may terminate this Agreement immediately upon written notice of termination. Upon receipt of such notice of termination, CONTRACTOR shall immediately discontinue performance. CITY shall pay CONTRACTOR for services satisfactorily performed up to the effective date of termination. If the termination is for cause, CITY may deduct from such payment the amount of actual damage, if any, sustained by CITY due to Contractor’s failure to perform its material obligations under this Agreement. Upon termination, CONTRACTOR shall immediately deliver to the City Manager any and all copies of studies, sketches, drawings, computations, and other material or products, whether or not completed, prepared by CONTRACTOR or given to CONTRACTOR, in connection with this Agreement. Such materials shall become the property of CITY. R. ASSIGNMENTS/CHANGES. This Agreement binds the parties and their successors and assigns to all covenants of this Agreement. This Agreement shall not be assigned or transferred without the prior written consent of the CITY. No amendments, changes or variations of any kind are authorized without the written consent of the CITY. S. CONFLICT OF INTEREST. In accepting this Agreement, CONTRACTOR covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of this Contract. CONTRACTOR further covenants that, in the performance of this Contract, it will not employ any person having such an interest. CONTRACTOR certifies that no City Officer, employee, or authorized representative has any financial interest in the business of CONTRACTOR and that no person associated with contractor has any interest, direct or indirect, which could conflict with the faithful performance of this Contract. CONTRACTOR agrees to advise CITY if any conflict arises. T. GOVERNING LAW. This contract shall be governed and interpreted by the laws of the State of California. U. ENTIRE AGREEMENT. This Agreement, including all exhibits, represents the entire agreement between the parties with respect to the services that may be the subject of this Agreement. Any variance in the exhibits does not affect the validity of the Agreement and the Agreement itself controls over any conflicting provisions in the exhibits. This Agreement supersedes all prior agreements, representations, statements, negotiations and undertakings whether oral or written. Rev. July 11, 2011 CITY OF PALO ALTO CONTRACT NO. C13148075 V. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Contract are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Contract. W. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONTRACTOR shall comply with the City’s Environmentally Preferred Purchasing policies which are available at the City’s Purchasing Department which are incorporated by reference and may be amended from time to time. CONTRACTOR shall comply with waste reduction, reuse, recycling and disposal requirements of the City’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, Contractor shall comply with the following zero waste requirements:  All printed materials provided by Contractor to City generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by the City’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable based inks.  Goods purchased by Contractor on behalf of the City shall be purchased in accordance with the City’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Office.  Reusable/returnable pallets shall be taken back by the Contractor, at no additional cost to the City, for reuse or recycling. Contractor shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. X. AUTHORITY. The individual(s) executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. Y. CONTRACT TERMS: All unchecked boxes do not apply to this Contract. IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO WEST COAST ARBORISTS, INC. ______________________________________ By________________________________________ City Manager or Designee (Required on contracts $85,000 and over) Name _____________________________________ ____________________________________ Purchasing Manager or Designee Title_______________________________________ Approved as to form: _____________________________________ Telephone: _______________________________ Rev. July 11, 2011 CITY OF PALO ALTO CONTRACT NO. C13148075 EXHIBIT A SCOPE OF SERVICES CITY OF PALO ALTO CONTRACT NO. C13148075 TREE PRUNING AND REMOVAL SERVICES The scope of services shall consist of pruning, removal, stump grinding and other maintenance operations of trees, palms and other woody plants, at various locations within the City of Palo Alto, hereafter referred to as the City. Work will be administered and approved by representatives of the Public Works Department, Public Services Division - Urban Forestry Section. Contractor shall furnish all labor, materials, and equipment necessary to perform the work described herein in strict accordance with these specifications and subject to the terms and conditions of the contract. All work shall be performed by a tree care contractor who shall be licensed by the State of California Contractors State License Board (Classification C-61/Category D-49) to provide such contract services within the State of California. GENERAL General Provisions The General Provisions for this work shall be in accordance with the General Provisions of the City of Palo Alto Standard Drawings and Specifications. In case of conflict, this scope of services shall take precedence over the City of Palo Alto Standard Drawings and Specifications. Debris Removal The work shall include removal and disposal of brush and debris generated by said work. Waste material shall be disposed of at the contractor’s expense at a location designated and/or approved by the City. Waste material shall not be given away or sold as firewood. Waste material shall not be landfilled. Recycling of wood and wood chips through sustainable uses is strongly encouraged. Contractor shall furnish data to the City on a monthly basis listing the type, quantity and disposal location of all debris generated by the work. Debris resulting from contractor’s operations shall not be left on any work sites overnight. Upon completion of work the site shall be left in a clean and orderly condition. Tool Sanitation and Disease Transmittal Contractor’s tools that have potential to transmit pests or diseases to other trees shall be disinfected prior to initiating work within the City, after working on any potentially diseased trees, and prior to reinitiating work after any work outside of City-contracted services. In addition, pruning tools shall be disinfected before and after pruning any Elm (Ulmus species) tree. Rev. July 11, 2011 CITY OF PALO ALTO CONTRACT NO. C13148075 Due to disease concerns regarding Canary Island Date Palms (Phoenix canariensis) and California Fan Palms (Washingtonia filifera), live fronds, flowers and fruit parts shall only be pruned with handsaws. Chain saws and handsaws shall be disinfected with Lysol or a 10% mixture of water and household bleach. Chain saws shall have the clutch cover removed and the chain, bar, and clutch area shall be sprayed. Damage to Property Public or private property damaged as a result of contractor’s operations shall be repaired or replaced at the contractor’s expense to the originally existing condition. Inspection Prior to Invoicing Contractor shall contact Urban Forestry staff to request inspection of all work performed. All work shall be approved by an Urban Forestry representative prior to submittal of invoices for payment. Equipment All vehicles and equipment used in the performance of work assigned under this contract shall be in good working order and in compliance with all local, state and federal laws. Vehicles shall display signage noting the contractor’s name, telephone number, and “City of Palo Alto Urban Forestry Contractor”. City identification signs shall not be displayed when performing any work outside of this contract. Invoicing Contractor shall invoice Urban Forestry monthly in a City-furnished MS Excel format, or approved equivalent. All invoices shall reference the contract number. General Safety Requirements Contractor shall comply with applicable state and federal regulations regarding safety, including the use of personal protective equipment and training. All work within 10 feet of any overhead high voltage electrical conductors shall be referred to the City by the contractor. Work shall be scheduled by the contractor in cooperation with the City and shall be conducted in such a manner as to minimize disruption of service and disturbance of residents. Tree care operations that involve climbing or other aerial work may be temporarily suspended during inclement weather with prior approval from the Urban Forestry Section. Rev. July 11, 2011 CITY OF PALO ALTO CONTRACT NO. C13148075 Temporary Street Parking Closure Contractor shall provide barricades with signage (City-furnished) noting parking restrictions and days and times of scheduled tree care operations at least 72 hours in advance of the work. All barricades and signage must be approved by Urban Forestry staff. Holiday Moratoriums and Special Events Certain streets may be temporarily closed to construction and maintenance projects during the period from the Thanksgiving holiday through the New Year’s holiday and during special events. Work shall not be scheduled at these locations and times. Parking and Traffic Violations Parking and traffic citations as a result of violations shall be the responsibility of the contractor. Work Week The normal work week shall be Monday through Friday, 7:00 a.m. to 4:30 p.m., excluding City holidays. Allocation and Completion of Work Orders Work orders shall be allocated by Urban Forestry based on actual service requirements and available funding. All work orders will be assigned on an as- needed basis as determined by Urban Forestry. It is possible that no services may be required by the City from a contractor during all or any portion of the contract term. All work orders assigned to the contractor shall be completed within thirty (30) days except where otherwise noted. Qualified Personnel The contractor shall provide qualified supervisory staff. 1. Each crew shall be led by at least one employee with current certification as a Western Chapter International Society of Arboriculture Certified Tree Worker. 2. A minimum of one supervising employee with current certification as an International Society of Arboriculture Certified Arborist shall be provided for every six (6) contractor employees assigned to City work. Rev. July 11, 2011 CITY OF PALO ALTO CONTRACT NO. C13148075 Uniforms and Identification All contractor personnel shall be required to wear uniforms bearing the contractor’s company name while completing City work assignments. Uniforms shall consist of a shirt and/or jacket with company and employee name neatly screen printed or embroidered and conspicuous. TREE CARE OPERATIONS Services The contractor shall provide the following services as requested by Urban Forestry: 1. Demand Pruning. 2. Programmed Pruning. 3. Crown Reduction. 4. Palm Pruning. 5. Tree Removal. 6. Stump Grinding. 7. Hourly Crew Services. 8. Crane Services. Standards Tree care operations shall be in accordance with current standards as established by the American National Standard Institute (ANSI). Specifically, current ANSI A300 (Tree, Shrub and Other Woody Plant Maintenance – Standard Practices), ANSI Z133 (Safety Requirements for Arboricultural Operations) and accompanying “Best Management Practices” publications shall be adhered to. Tree climbing spurs shall not be used except where trees are to be removed, in the case of emergencies or upon written authorization of Urban Forestry. With the exception of work requested on a time and materials basis, all pruning orders shall be based on complete pruning of the entire tree. Tree Pruning Programmed and Demand Based Pruning: Work orders for programmed pruning are based on street block areas within the City of Palo Alto boundaries. Generally, programmed pruning areas are planned as contiguous areas. Work orders for demand based pruning are based on service requests with specific objectives in various locations with the City of Palo Alto boundaries and may or may not be at contiguous locations. Notwithstanding the referenced ANSI standards, trees and palms shall be pruned as follows: Rev. July 11, 2011 CITY OF PALO ALTO CONTRACT NO. C13148075 Mature Trees: Tree crowns shall be cleaned, raised, reduced, thinned or any combination of these methods to achieve the following objectives: 1. Remove dead branches that are greater than 1 inch in diameter at the point of attachment. 2. Remove diseased, decayed, broken, weakly attached, and/or crossing branches. 3. Remove mistletoe and/or vines growing on the tree. 4. Improve tree growth and form to maximize safety, structural integrity, and health. 5. Prune to provide eventual clearance of 14 feet over roadways; 8 feet over pedestrian pathways; 10 feet around buildings and other structures. 6. Prune to clear line of sight for streetlights, traffic signs and signals, and street signs. In achieving the above objectives, the contractor shall not remove more of the tree crown than necessary. Under no circumstances shall more than 25 percent of the crown be removed without approval from Urban Forestry staff. When reducing the length of a limb, the resulting terminal branch should be at least one-third (1/3) the diameter of the parent limb. Young Trees (less than 8 inches dbh): Young trees shall be pruned to achieve the following objectives: 1. Remove dead branches. 2. Remove diseased, decayed, broken, weakly attached, and/or crossing branches. 3. Develop strong central leader and radially and vertically symmetric distribution of branches as appropriate for the species. 4. Encourage trunk taper by retaining temporary branches until diameter at the point of attachment is approximately one-third of the diameter of the parent branch. 5. Select and develop permanent branches. 6. Retain foliage in the lower portion of the canopy as long as possible. 7. Prune to avoid conflicts with pedestrians, vehicles, and sight-lines at street intersections. Palms: 1. Remove dead and dying fronds. 2. Prune palm crown to no narrower than a 9 and 3 o’clock position. 3. Remove loose frond sheaths along the entire length of the trunk. 4. Remove fruit and flowers. Rev. July 11, 2011 CITY OF PALO ALTO CONTRACT NO. C13148075 Tree Removal Notwithstanding the referenced ANSI standards, trees, palms and other woody plants shall be removed as follows: 1. Remove all tree parts in a safe and efficient manner. Where necessary, tree parts shall be lowered by rope, crane, or other suitable means to avoid damage to surrounding property, including adjacent trees. 2. Ropes or other rigging shall not be placed so as to cause damage to adjacent property or trees. 3. Tree shall be removed to within six (6) inches of grade, measured from the soil line where the trunk meets the ground. Stump Removal 1. Stumps shall be ground to a depth of 20 inches. Contractor shall also grind out all surface roots 2 inches or greater in diameter within a 6 foot radius of the stump. Stump grindings shall be removed to a maximum depth of 20 inches or as directed by Urban Forestry staff. 2. Contractor shall backfill the hole with a topsoil blend consisting of 50% compost by weight. 3. Contractor shall compact topsoil to minimize settlement. 4. Contractor is responsible for notifying Underground Service Alert prior to stump grinding or excavating. 5. Contractor shall respond to all non-urgent stump grinding work orders within 5 working days. Stump grinding work orders related to sidewalk repairs shall be completed within 3 working days. 6. Where stump grinding is being performed to accommodate a replacement sidewalk all surface roots within the footprint of the sidewalk shall be ground to a depth of 6 inches. Rev. July 11, 2011 CITY OF PALO ALTO CONTRACT NO. C13148075 EXHIBIT B SCHEDULE OF PERFORMANCE CITY OF PALO ALTO CONTRACT NO. C13148075 TREE PRUNING AND REMOVAL SERVICES CONTRACTOR shall perform the Services so as specified in the Scope of Services, Exhibit A. The time to complete the task may be increased or decreased by mutual written agreement of the project managers for CONTRACTOR and CITY so long as all work is completed within the term of the Agreement. Upon request CONTRACTOR shall provide a detailed schedule of work consistent with the schedule below: Task Completion Date 1. On-going tree pruning and removal services June 30, 2015 Rev. July 11, 2011 CITY OF PALO ALTO CONTRACT NO. C13148075 EXHIBIT C SCHEDULE OF FEES CITY shall compensate CONTRACTOR for performance of the Services according to the following three (3) year schedule of $350,000.00 per year with the maximum amount of compensation not to exceed one million fifty thousand dollars ($1,050,000.00) over the three year term: Demand Pruning Year 1 Year 2 Year 3 Size Class Unit Price Unit Price Unit Price 4 - 6 dbh $65.00 $65.00 $65.00 7 - 12 dbh $65.00 $65.00 $65.00 13 - 24 dbh $145.00 $145.00 $145.00 25 - 36 dbh $145.00 $145.00 $145.00 37 - 48 dbh $290.00 $290.00 $290.00 49+ dbh $290.00 $290.00 $290.00 Program Pruning Year 1 Year 2 Year 3 Size Class Unit Price Unit Price Unit Price 4 - 6 dbh $45.00 $45.00 $45.00 7 - 12 dbh $45.00 $45.00 $45.00 13 - 24 dbh $65.00 $65.00 $65.00 25 - 36 dbh $65.00 $65.00 $65.00 37 - 48 dbh $95.00 $95.00 $95.00 49+ dbh $95.00 $95.00 $95.00 Crown Reduction Year 1 Year 2 Year 3 Size Class Unit Price Unit Price Unit Price 25 - 36 dbh $350.00 $350.00 $350.00 37 - 48 dbh $350.00 $350.00 $350.00 49+ dbh $350.00 $350.00 $350.00 Rev. July 11, 2011 CITY OF PALO ALTO CONTRACT NO. C13148075 Palm Pruning Year 1 Year 2 Year 3 Size Class Unit Price Unit Price Unit Price Date palm under 55' working height. $165.00 $165.00 $165.00 Date palm over 55' working height. $240.00 $240.00 $240.00 Washingtonia species under 55' working height. $65.00 $65.00 $65.00 Washingtonia species over 55' working height. $65.00 $65.00 $65.00 Tree Removal Year 1 Year 2 Year 3 Size Class Unit Price Unit Price Unit Price 4 - 6 dbh $50.00 $50.00 $50.00 7 - 12 dbh $100.00 $100.00 $100.00 13 - 24 dbh $200.00 $200.00 $200.00 25 - 36 dbh $500.00 $500.00 $500.00 37 - 48 dbh $900.00 $900.00 $900.00 49+ dbh $900.00 $900.00 $900.00 Stump Grinding Year 1 Year 2 Year 3 Size Class Unit Price Unit Price Unit Price 4 - 6 dbh $40.00 $40.00 $40.00 7 - 12 dbh $65.00 $65.00 $65.00 13 - 24 dbh $150.00 $150.00 $150.00 25 - 36 dbh $240.00 $240.00 $240.00 37 - 48 dbh $240.00 $240.00 $240.00 49+ dbh $350.00 $350.00 $350.00 Rev. July 11, 2011 CITY OF PALO ALTO CONTRACT NO. C13148075 Hourly Rate w/ 3 Man Crew and Bucket Year 1 Year 2 Year 3 Hourly Rate Hourly Rate Hourly Rate Emergency / After hours work. $225.00 $225.00 $225.00 Scheduled work. $174.00 $174.00 $174.00 Crane Services Year 1 Year 2 Year 3 Hourly Rate Hourly Rate Hourly Rate Emergency / After hours work. $125.00 $125.00 $125.00 Scheduled work. $95.00 $95.00 $95.00 All Payments are based upon City’s acceptance of Contractor’s performance of the phase as evidenced by successful completion of the Deliverable for that Phase. City shall have no obligation to pay unless Contractor has successfully completed and City has approved the Project Phase for which payment is due. Rev. July 11, 2011 CITY OF PALO ALTO CONTRACT NO. C13148075 EXHIBIT D INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 NO PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE Rev. July 11, 2011 CITY OF PALO ALTO CONTRACT NO. C13148075 WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON- PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303                 REQUEST FOR PROPOSAL:  TREE PRUNING SERVICES    P12151811001    Proposals are due by 2:00 p.m., Wednesday, July 11, 2012 City of Sacramento DOT Street Services 5730 24th Street, Bldg. 9 Sacramento, CA95822 Attention: Azadeh Doherty RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page2of31  REQUEST FOR PROPOSAL  TREE PRUNING SERVICES    TABLE OF CONTENTS AIntroduction3 1. Purpose 2. Deadline 3. Background 3 3 3 BSELECTION3 1. SelectionProcess 2. SelectionSchedule 4 4 CSERVICESREQUIRED5 DPROPOSALSUBMITTALREQUIREMENTS 5Ͳ6 ENONPROFESSIONALSERVICESAGREEMENT 6 FADDENDAANDSUPPLEMENTS7 GBUSINESSOPERATIONSTAXCERTIFICATE(B.O.T.C) 7 HMISCELLANEOUS7Ͳ8  AppendixA–ProposalEvaluationCriteria  9 AppendixB–SpecificationsandScopeofWork 10Ͳ15  OTHERREQUIREDDOCUMENTS  Attachment1 Attachment2 Attachment3 Attachment4 Attachment5 Attachment6 Attachment7 Attachment8 Attachment9 ItemsRequiringResponse LicensesCertificationsandRegistrations DrugFreeWorkplacePolicyandAffidavit CertificationofEnvironmentallyPreferableProducts StatementofHeadquarters,CityofSacramentoBoycottofArizona PricingSchedule EquipmentList RelevantWorkExperience Staffing 16Ͳ17 18 19 20 21 22Ͳ25 26Ͳ28 29Ͳ30 31   RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page3of31   REQUEST FOR PROPOSAL  TREE PRUNING SERVICES    A. INTRODUCTION  1. Purpose  The City of Sacramento Department of Transportation, Urban Forestry Division, intends to hire a Tree Pruning contractor to perform tree pruning maintenance services, on an as needed basis.  The City is requesting Proposal from tree pruning contractors who have significant experience in the delivery of a wide-breadth of high-quality tree pruning services. The City will be reviewing the proposals to identify a contractor best suited to provide the required services and the greatest value.  Interested contractors are invited to submit a Proposal in accordance with the requirements with the format and information listed in Section D.  2. Deadline  Proposals are to be received by 2:00 p.m. on July 11, 2012, as described in Section D of this RFP.  3. Background  The City has approximately 100,000 public trees that are located in the right-of- way, such as in planter strips between the curb and sidewalk. In a few areas, the right-of-way extends beyond that and into front yards. Tree pruning and maintenance are routinely performed by the Urban Forest operational staff. Over the past year contracted tree pruning and removal services have been used to supplement the work performed by City staff. In order to continue to support the work of the Urban Forest staff, create more flexibility and provide the most cost efficient/ quality service for the City residents, DOT is seeking to select a contractor to continue to provide these services. Tree Pruning service contractors are funded by fees from the Citywide Landscaping & Lighting District. There are no General Funds allocated for these services.  B. SELECTION  The City will evaluate proposals on a qualitative basis. The evaluation will include a thorough examination of each firm’s range of capabilities, proven record of successfully delivering quality service, their relative value, and the firm’s completeness and timeliness in its response to us. Any contract resulting from this RFP shall be effective from the date of award, through August 15, 2013. If mutually agreeable to both parties, this contract may be extended on a year-to-year basis; however, in no case shall the renewal extend beyond three (3) years from date of the award of the original contract. The RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page4of31  Contactor shall be capable of performing all tree pruning services as outlined in the Scope of Services and in conformance with the contract contained herein. A Pre-Bid Meeting will be held at 10:00 a.m., on June 29, 2012 at the City of Sacramento, South Area Corp Yard, Building 3, 5730 24th Street, Sacramento, CA 95822. 1. Selection Process  After the submittal deadline has passed, a selection committee will review and rate each of the proposals received and rank them according to the criteria provided in Appendix 1, Evaluation Criteria, including consideration of expertise, knowledge, and experience, as well as value. The evaluation may include discussions with other clients. The committee will also interview prospective contractors to obtain additional information.  At the conclusion of the selection process, staff will request that City Council award a Nonprofessional Services Agreement to the top-ranked contractor.  Emerging and Small Business Enterprise (ESBE) participation will be considered during Proposal evaluation as indicated on Appendix 1, Evaluation Criteria. For more information see Attachment 1, Items Requiring Response.  The issuance of this RFP shall not be interpreted as, and does not constitute, a representation by the City that any specific contractor or contractors will be retained to perform any of the services described herein, and a contractor shall not acquire any right or entitlement to be retained for such purpose by virtue of submitting a proposal in response to this RFP.  The City reserves the right to issue additional RFP(s) for the performance of these services during the service period specified below. The City also reserves the option to cancel or modify this RFP and the selection process at any time.  2. Selection Schedule  RFP issued June 20, 2012 Last day to ask questions (if necessary) June 29, 2012 Pre-Bid Meeting June 29, 2012 Last Addendum posting date (if necessary) July 5, 2012 Proposals due July 11, 2012, at 2:00 p.m. Evaluation by selection panel July 12, 2012 –July 17, 2012 Interview (tentative) July 18, 2012 Contract preparation July 18, 2012-August 1, 2012 Contract award by City Council (tentative) August 14, 2012 First work assigned (on or after) August 20, 2012  It is important that the contractors selected be able to respond quickly during contract preparation phase, to facilitate the timely approval by City Council. Any delay in submitting required contract and/or insurance documents may result a delay in award.  RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page5of31  C. SERVICES REQUIRED  Contractor must provide all labor, material, tools, and equipment necessary to complete assigned projects.  All work performed shall conform to the City of Sacramento tree pruning specifications and Scope of Work of this RFP as detailed in Appendix B. A digital copy of the document is available, upon request, from the Project Manager.  D. PROPOSAL SUBMITTAL REQUIREMENTS  Contractors interested in submitting a proposal for this project should respond to this RFP by submitting a written proposal providing all the information requested below. The proposal will be considered complete only if all of the items listed in this section are included in the submittal. Five (5) copies of the proposal and an electronic copy on CD shall be submitted no later than 2:00 p.m., July 11, 2012 to: City of Sacramento Department of Transportation Street Services 5730 24th Street, Bldg. 9 Sacramento, CA95822  Attention: Azadeh Doherty Re: RFP for Tree Pruning Services  Hand deliveries of proposals must be received and time/date stamped by the receptionist at the front desk of the Street Services Division, in building 9, prior to the submission deadline or risk being disqualified.  Proposals should be prepared simply and economically, providing a straight forward, concise description of provider capabilities to satisfy the requirements of the RFP. Emphasis should be on completeness and clarity of content.  An authorized representative of the firm must complete and sign the proposal. Please provide and present, in the order listed, the following information: 1. Company name, including corporate office and local office address, city, state, zip code, telephone number, fax number and web site address. Include brief company history, background, specialties, and ownership.  2. Proposal’s contact person, address, telephone number, and eǦmail address.  3. Introductory letter describing company’s basic understanding of the services identified. This letter should also contain an expression of the company’s interest in the work, a statement regarding the qualifications of the contractor to do the work, and any summary information that may be useful or informative to the City and the evaluation committee.  4. A list all tree pruning contracts, both currently engaged in and completed, for the RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page6of31  last three years. Include the name and address of the contracting agency or party, inclusive dates, a summary of the scope of work, and the agency or contracting party’s Project Manager and phone number (see Attachment 8).  5. Organizational chart identifying key employees, including the anticipated contract manager and field supervisors.  6. A summary of the expertise and qualifications of key employees who will be responsible for providing the services described in Section C, above.  7. Complete and attach the following documents: Attachment 1: Items Requiring Response Attachment 2: Licenses, Certifications, and Registrations  Attachment 3: Emerging Business Enterprise (EBE) or Small Business Enterprise (SBE) certifications  Attachment 4: Certification of Environmentally Preferable Products  Attachment 5: Drug Free Workplace Policy and Affidavit  Attachment 6: Statement of Headquarters, City of Sacramento Boycott of Arizona  Attachment 7: Pricing Schedule  E. NONPROFESSIONAL SERVICES AGREEMENT  A copy of the City’s Non-Professional Services Agreement that the selected contractors will be required to sign is provided as Attachment 9. The copy is for information only and is not a required component of the proposal. Please note that any contractor selected will be required to comply with the standard provisions set forth in Exhibit D of the Agreement; section 11.A provides information on minimum scope and limits of insurance coverage, and section 11.B provides information on additional insured coverage.  The selected firm will need to provide insurance certificate(s) for Commercial General Liability, Automobile Liability, Workers’ Compensation and Employer’s Liability, and Professional Liability Insurance for this project. Endorsement(s) signed by an authorized representative of the insurance carrier will also be needed for Commercial General Liability and Automobile Liability insurance, with language included in the endorsement(s) that the City, its officials, employees and volunteers shall be covered as additional insured. If the insurance certificate(s) are provided by an insurance broker, the insurance company will also need to provide verification of coverage.  The selected contractors will be required to complete and submit an IRS Form WǦ9 and CA Form 590. RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page7of31  F. ADDENDA AND SUPPLEMENTS  The City of Sacramento reserves the right to cancel, postpone, extent or revise this RFP or the RFP process at any time. If it becomes necessary to revise any part of this RFP, an Addendum to the RFP will be provided on the City’s Bid website at:  http://www.cityofsacramento.org/finance/bids/.  G. BUSINESS OPERATIONS TAX CERTIFICATE (B.O.T.C.)  Sacramento City Code Chapter 3.08 requires any person or firm conducting business within or with the City of Sacramento to pay a Business Operations Tax and have a current Business Operations Tax Certificate.  To obtain information about the Business Operations Tax Certificate, contact the City of Sacramento Revenue Division, 915 I Street, Sacramento, CA 95814, or telephone 916Ǧ808Ǧ8500.  H. MISCELLANEOUS  All material submitted shall become the property of the City of Sacramento, may be reviewed and evaluated as part of this RFP process by any persons at the discretion of the City of Sacramento, and may be publicly disclosed as required by law.  Written Questions concerning this RFP must be submitted in writing to: City of Sacramento Department of Transportation Street Services 5730 24th Street, Bldg. 9 Sacramento, CA 95822  Attention: Azadeh Doherty Email: adoherty@cityofsacramento.org  Written Questions concerning the Scope of Work must be submitted in writing to: City of Sacramento Department of Transportation 5730 24th Street, Building 12A Sacramento, California 95822 Attn: Todd Martin  Fax: (916) 808-4005  Email: tmartin@cityofsacramento.org  Copies of written questions and the corresponding responses of a substantive nature will be shared with all participants who provide an eǦmail address and/or fax number when downloading the RFP from the City of Sacramento. RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page8of31  The City will NOT accept questions after 3:00 p.m., June 29, 2012. Contractors submitting written questions are encouraged to verify the questions were received by contacting Todd Martin at (916) 808Ǧ8074. The City of Sacramento assumes no responsibility for delayed, misdirected, partial delivery or failure to deliver any questions. The City will not respond to any questions arriving after the aforementioned deadline set forth in this RFP.  RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page9of31  REQUEST FOR PROPOSALS APPENDIX A TREE PRUNING SERVICES PROPSALS EVALUATION CRITERIA    The City will screen all proposals and generally evaluate them on the criteria outlined below: x Responsiveness: The City will consider the material submitted by each firm to determine whether the proposal is in compliance with the request.  x Responsibility: The City will consider the material submitted by each firm and other evidence it may obtain to determine their demonstrated ability to provide the required scope of services.  x Comparative ranking:  1. The relative value offered by each firm by means of competitive pricing. (Weighted 50%)  2. The firm’s relative capabilities, qualifications, and experience. (Weighted 25%)  3. Satisfactory references. Preference will be given to local government client references. (Weighted 25 %)  x The City will also consider availability of other related services, as well as any other information provided that the City deems valuable. RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page10of31  REQUEST FOR PROPOSALS APPENDIX B TREE PRUNING SERVICES SPECIFICATIONS AND SCOPE OF WORK   The scope of contracted work shall consist of removal, pruning, and other maintenance operations of trees, palms and other woody plants, in various locations within the City of Sacramento, hereafter referred to as the City. Work shall be supervised and approved by representatives of the Department of Transportation, Urban Forestry staff. GENERAL REQUIREMENTS Contractor shall be aware of and shall comply with the Sacramento City Codes governing tree pruning work, traffic control and any other regulations that may affect operations. Refer to City of Sacramento’s Standard Specifications, Section 6-18. Contractor shall furnish all labor, materials, and equipment necessary to perform the work described herein in strict accordance with these specifications and subject to the terms and conditions of the contract. All work is to be performed by a tree care contractor, who shall be licensed by the California Contractors State License Board (Classification C-61/Category D-49) to provide such contract services within the State of California and the City of Sacramento. Debris Removal The scope of work shall include removal and disposal of brush and debris generated by said work. Waste material shall be disposed of at the contractor’s expense at a location designated and/or approved by the City. Waste material shall not be given away or sold as firewood. Waste material (excepting trees affected by Dutch Elm Disease as noted below) shall not be landfilled. Recycling of wood and wood chips through sustainable uses is strongly encouraged. Contractor shall provide wood or trunk samples if requested by Urban Forestry staff. In the case of trees suspected of being infected with Dutch Elm Disease, the contractor shall comply with Sacramento City Code, Title 12, Chapter 12.60 – Dutch Elm Disease. The contractor shall dispose of all wood and debris and ensure that all material is processed through a wood waste grinder, wood chipper, or buried at a landfill facility within 48 hours. Material that is processed through wood waste grinders or wood chippers does not require burial. Debris resulting from contractor’s operations shall not be left on any work sites overnight. Upon completion of a work, the site shall be left in a clean and orderly condition. Tool Sanitation and Disease Transmittal Contractor’s tools that have potential to transmit pests or diseases to other trees shall be disinfected prior to initiating work within the City, after work on any potentially diseased trees, and prior to re- initiating work after any work outside of City-contracted services. All lead workers that supervise tree care operations under the terms and conditions of this contract shall attend a Dutch Elm Disease awareness and training class, provided by Urban Forestry, prior to any work on species susceptible to the disease. Disposal sites and methods for Dutch Elm Disease RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page11of31  -infected tree parts shall be approved by Urban Forestry staff. Due to disease concerns regarding Canary Island Date Palms (Phoenix canariensis) and California fan palms (Washington filifera), live fronds, flowers and fruit parts must be pruned with handsaws. Chain saws and hand saws shall be disinfected with a 10% mixture of water and household bleach. Chain saw shall have the clutch cover removed and the chain, bar, and clutch area shall be sprayed. Handsaws are to be completely disinfected after each use. Chain saws and hand saws shall be disinfected with each use before pruning the next tree. Damage to Property Public or private property damaged as a result of contractor’s operations shall be repaired or replaced at the contractor’s expense to the originally existing condition. Inspection Prior to Invoicing Contractor shall contact Urban Forestry staff to request inspection of all work performed. All work shall be approved by an Urban Forestry representative prior to submittal of invoices for payment Equipment All vehicles and equipment used in the performance of work assigned under this contract shall be in good working order and in compliance with all local, state and federal laws. Vehicles shall display signage noting the contractor’s name, telephone number, and “City of Sacramento Urban Forestry Contractor”. City identification signs shall not be displayed when performing any work outside of this contract. Record Keeping & Invoicing The contractor shall invoice Urban Forestry monthly in a MS Excel format as provided by the City. This format shall be used for each invoice and must be completed in its entirety. General Safety Requirements Contractor shall comply with applicable state and federal regulations regarding safety, including the use of personal protective equipment and training. All work within 10 feet of any overhead high voltage electrical conductors shall be referred to the Sacramento Municipal Utility District (SMUD) by the contractor. Work shall be scheduled by the contractor in cooperation with SMUD and shall be the conducted in such a manner as to minimize disruption of service and disturbance of residents. Tree care operations that involve climbing or other aerial work may be temporarily suspended during inclement weather with prior approval from Urban Forestry Services. Temporary Street Parking Closure Contractor shall provide barricades with signage noting parking restrictions and days and times of scheduled tree care operations at least 72 hours in advance of work. All barricades and signage RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page12of31  must be approved by Urban Forestry staff. Parking closure signs shall not be attached to trees. Parking closure signs shall not indicate TOW AWAY zones. Holiday Moratoriums and Special Events Certain streets may be temporarily closed to construction and maintenance projects during the period from the Thanksgiving holiday through the New Year’s holiday and during special events. The contractor shall abide by City regulations in regards to any necessary work subject to those restrictions by obtaining prior authorization through the City of Sacramento Department of Transportation. Parking and Traffic Violations Parking and traffic citations as a result of violations shall be the responsibility of the contractor. Work Week The normal work week shall be Monday through Friday, or Tuesday through Saturday, 7:00 A.M. to 3:30 P.M. Where traffic, parking or other constraints exist, the work week may be modified to the same hours on Tuesday through Saturday. All work week modifications shall be approved by Urban Forestry staff. Allocation and Completion of Work Orders Work Orders shall be allocated by Urban Forestry based on actual service requirements and available funding. All work orders will be assigned on an as-needed basis as determined by Urban Forestry. It is possible that no services may be required by the City from a Contractor during all or any portion of the contract term. All work orders assigned to the contractor shall be completed within thirty (30) days except where otherwise noted. Annual Expected Budget The expected budget for Tree Pruning Services will not exceed $1,000,000.00 annually. Actual budget will be based upon availability of funds and anticipated annual services requirements. Contract A. The contract(s) shall be effective from the date of award through June 30, 2013. B. If mutually agreed by both parties, the contract may be extended on a year-to-year basis, however, in no case shall the renewals extend beyond June 30, 2015. The expected budget for the initial term and two optional extensions will not exceed $3 million. Qualified Personnel The contractor shall provide qualified supervisory staff. 1. Each crew shall be led by at least one employee with current certification as a Western Chapter International Society of Arboriculture Certified Tree Worker. RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page13of31  2. A minimum of one supervising employee with current certification as an International Society of Arboriculture Certified Arborist shall be provided for every six (6) contractor employees assigned to City work. Uniforms and Identification All contractor personnel shall be required to wear uniforms bearing the contractor’s company name while completing City work assignments. Uniforms shall consist of a shirt and/or jacket with company and employee name neatly screen printed or embroidered and conspicuous. The CONTRACTOR shall provide the following services as requested by Urban Forestry: 1. Demand Pruning 2. Programmed Pruning 3. Crown Reduction/Crown Clean for English Elms 4. Palm Pruning 5. Tree Removal 6. Stump Grinding 7. Crane Services 8. Unscheduled Work or Storm/Emergency Work Crew Services 9. Note: English elms not requiring a crown reduction will be billed at Programmed or Demand based pruning rates. Tree care operations shall be in accordance with current standards as established by the American National Standard Institute (ANSI). Specifically, current ANSI A300 (Tree, Shrub and Other Woody Plant Maintenance-Standard Practices), ANSI Z133 (Safety Requirements for Arboricultural Operations) and accompanying “Best Management Practices” publications shall be adhered to. Tree climbing spurs shall not be used except where trees are to be removed, where trees cannot otherwise be safely accessed, or in the case of emergencies. With the exception of work requested on a time and materials basis, all pruning orders shall be based on complete pruning of the entire tree. Tree Pruning Programmed and Demand Based Pruning Work orders for programmed pruning are based on street block areas within the City of Sacramento boundaries. Generally, programmed pruning areas are planned as contiguous areas. Work orders for demand-based pruning are based on service requests with specific objectives in various locations within the City of Sacramento boundaries and may or may not be at contiguous locations. Notwithstanding the referenced ANSI standards, trees and palms shall be pruned as follows: Mature Trees Tree crowns shall be cleaned, raised, reduced, thinned or any combination of these methods to RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page14of31  achieve the following objectives: 1. Remove dead branches that are greater than 1 inch at the point of attachment. 2. Remove diseased, decayed, broken, weakly attached, and/or crossing branches. 3. Remove mistletoe and/or vines growing on the tree. 4. Improve tree growth and form to maximize safety, structural integrity, and health. 5. Prune to provide eventual clearance of 14 feet over roadways; prune to provide eventual clearance of 8 feet over pedestrian pathways; prune to provide eventual clearance of 5 feet around buildings and other structures, including, but not limited to roofs, gutters, fireplaces, television antennas, and utility service connections. 6. Prune to clear line of sight for streetlights, traffic signs and signals, and street signs. In achieving the above objectives, the contractor shall not remove more of the tree crown than necessary. Under no circumstances shall more than 25 percent of the crown be removed without approval from Urban Forestry Services. When reducing the length of a limb, the resulting terminal branch should be at least one-third (1/3) the diameter of the parent limb. Young Trees Young trees (under eight inches) shall be pruned to achieve the following objectives: 1. Remove dead branches. 2. Remove diseased, decayed, broken, weakly attached and/or crossing branches. 3. Develop strong central leader and radially and vertically symmetric distribution of branches as appropriate for the species. 4. Encourage trunk taper by retaining temporary branches until diameter at the point of attachment is approximately one third of the diameter of the parent branch. 5. Select and develop permanent branches. 6. Retain foliage in the lower portion of the canopy as long as possible. 7. Prune to avoid conflicts with pedestrians, vehicles, and sight-lines at street intersections. Palms 1. Remove dead and dying fronds. 2. Prune palm crown to no narrower than a 9 and 3 o’clock position. 3. Remove loose frond sheaths along the entire length of the trunk. 4. Remove fruit and flowers. Tree Removal Notwithstanding the referenced ANSI Standards, trees, palms and other woody plants shall be removed as follows: 1. Remove all tree parts in a safe and efficient manner. Where necessary, tree parts shall be lowered by rope, crane, or other suitable means to avoid damage to surrounding property, including adjacent trees. 2. Ropes or other rigging shall not be placed so as to cause damage to adjacent property or trees 3. Trees shall be removed to within six (6) inches of grade, measured from the soil line where the trunk meets the ground. RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page15of31  Stump Removal 1. Stumps shall be ground to a depth of 20 inches. Contractor shall also grind out all surface roots 2” inches or greater within a 6’ foot radius of the stump. Stump grindings shall be removed to a depth of 20 inches. 2. Contractor shall, backfill the hole with a top soil blend consisting of 50% compost by weight. 3. Contractor shall compact soil to allow for settling. 4. Contractor is responsible for notifying Underground Service Alert prior to grinding stumps or digging anywhere within the public right-of-way or city property. 5. Contractor shall respond to all non-urgent stump grinding work orders within 5 working days. Stump grinding work orders related to sidewalk repairs shall be completed within 3 working days. 6. Where stump grinding is being performed to accommodate a new replacement sidewalk, all surface roots within the footprint of the sidewalk shall be ground to a depth of 6 inches. RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page16of31  Attachment 1  ITEMS REQUIRING RESPONSE  NOTE: Contractors must provide responses where indicated to the following items. Failure to provide a response to each of the items in this section may be grounds for rejection of proposal.  1. SBE/EBE FIVE PERCENT (5%) BID EVALUATION PREFERENCE  On February 9, 1999, the Sacramento City Council adopted an Emerging and Small Business Development program to provide enhanced opportunities for the participation of small business enterprises (SBEs) and emerging business enterprises (EBEs) in the City’s contracting and procurement activities. Any Proposal submitted by a firm that is certified as a SBE by the City of Sacramento, or that is certified as an EBE by the City of Sacramento, will receive a five percent (5%) evaluation preference for the purpose of determining the relative value of a contractor (see Appendix A of this RFP). If, after applying the 5% price evaluation preference, the SBE/EBE firm receiving such preference is subsequently awarded a contract, the amount of the contract will be based upon the actual amount quoted in the Pricing Schedule. To receive this evaluation preference, a firm must be certified as a SBE or EBE at the time of Proposal due date. Questions regarding eligibility for SBE/EBE certification should be addressed to the City of Sacramento Procurement Division, at (916) 808-6747.  A. SMALL BUSINESS ENTERPRISE (SBE) CERTIFICATION  Is the firm submitting the proposal certified by the City of Sacramento as a small business enterprise? Check the appropriate block below:  YES – Our firm is certified by the City of Sacramento as a small business enterprise. NO -Our firm submitting is not certified by the City of Sacramento as a small business enterprise. If the response to the above is YES, provide the City of Sacramento Certification Number .  B. EMERGING BUSINESS ENTERPRISE (EBE) CERTIFICATION  Is the firm submitting the proposal certified by the City of Sacramento as an emerging business enterprise? Check the appropriate block below:  YES - Our firm is certified by the City of Sacramento as an emerging business enterprise.  NO - Our firm is not certified by the City of Sacramento as an emerging business enterprise.  If the response to the above is YES, provide the City of Sacramento Certification Number: _.   2. PAYMENT DISCOUNT  Will you offer a prompt payment discount? Yes [ ] or No [ ] (Net 30 days)  If Yes, the Payment Discount is % for payment within calendar days, which will be computed from the date delivery is made and is accepted by the City, or the date a proper invoice is received, whichever is later. RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page17of31  PAYMENT DISCOUNTS WILL BE CONSIDERED IN THE EVALUATION OF THE PROPOSALS. In connection with any cash discount specified on this bid, time will be computed from the date of complete delivery of the supplies or equipment as specified, or from date correct invoices are received in the City Accounting Office, if the latter date is later than the date of delivery. For the purpose of earning the discount, payment is deemed to be made on the date of mailing of the City warrant or check.   Cash discounts offered for payment in less than 20 days will not be considered.  RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012 Attachment 2 LICENSES, CERTIFICATES, AND REGISTRATIONS  Page18of31   Contractor represents and warrants to the City of Sacramento that the following licenses, certificates and registrations are currently in force. The Contractor who is awarded the bid shall provide upon request photocopies of the documents listed below. All said documents will remain in force during the term of the resulting agreement with the City; failure to maintain will result in suspension or possibly termination of contract.  LICENSES/CERTIFICATES/REGISTRATION DOCUMENT # EXPIRATION DATE   STATE OF CALIFORNIA C-61 D-49 LICENSE ISA CERTIFIED ARBORIST NUMBER(S) ISA CERTIFIED TREE WORKER NUMBER(S) OTHER: (please specify)          I DECLARE UNDER PENALTY OF PERJURY, THAT THE FOREGOING IS TRUE AND CORRECT:   CONTRACTOR: signature DATE:   printed name title   COMPANY:   ADDRESS: RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012 Attachment 3  Page19of31  DRUG FREE WORKPLACE POLICY AND AFFADAVIT  BID PROPOSAL MAY BE DECLARED NONRESPONSIVE IF THIS FORM (COMPLETED) IS NOT ATTACHED. Pursuant to City Council Resolution CC90-498 dated 6/26/90 the following is required.  The undersigned contractor certifies that it and all subcontractors performing under this Agreement will provide a drug-free workplace by:  1. Publishing a "Drug-Free Workplace" statement notifying employees that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the contractor's workplace and specifying the actions that will be taken against employees for violations of such prohibition.  2. Establishing a Drug-Free Awareness Program to inform employees about:  a. The dangers of drug abuse in the workplace. b. The contractor's policy of maintaining a drug-free workplace. c. Any available drug counseling, rehabilitation, and employee assistance program. d. The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace.  3.Notify employees that as a condition of employment under this Agreement, employees will be expected to:  a. Abide by the terms of the statement. b. Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace.  4.Making it a requirement that each employee to be engaged in the performance of the Agreement be given a copy on the "Drug- Free Workplace" statement.  5. Taking one of the following appropriate actions, within thirty (30) days of receiving notice from an employee or otherwise receiving such notice, that said employee has received a drug conviction for a violation occurring in the workplace:  a. Taking appropriate disciplinary action against such an employee, up to and including termination; or b. Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a federal, state, or local health, law enforcement or other appropriate agency. *I certify that no person employed by this company, corporation, or business has been convicted of any criminal drug statute violation on any job site or project where this company, corporation or business was performing was within three years of the date of my signature below.  EXCEPTION: Date Violation Type Place of Occurrence  If additional space is required use back of this form.  * The above statement will also be incorporated as a part of each subcontract agreement for any and all subcontractors selected for performance on this project.  IN THE EVENT THIS COMPANY, CORPORATION, OR BUSINESS IS AWARDED A CONTRACT, AS A RESULT OF THIS BID; THE CONTRACTOR WITH HIS/HER SIGNATURE REPRESENTS TO THE CITY THAT THE INFORMATION DISCLOSED IN THIS DOCUMENT IS COMPLETE AND ACCURATE. IT IS UNDERSTOOD AND AGREED THAT FALSE CERTIFICATION IS SUBJECT TO IMMEDIATE TERMINATION BY THE CITY.  The Representations Made Herein On This Document Are Made Under Penalty Of Perjury.  CONTRACTOR'S NAME:  BY: Date: Signature Title  Effects of violations: a. suspension of payments under the Agreement. b.Suspension or termination of the Agreement. c.Suspension or debarment of the contractor from receiving any Agreement from the City of Sacramento for a period not to exceed five years. RFP: TREE PRUNING SERVICES P12151811011 June 20, 2012 Attachment 4  Page20of31   SECTION II – CONTRACT DOCUMENTS A. SPECIAL PROVISIONS ENVIRONMENTALLY PREFERABLE PROCUREMENT The City has adopted a “Sustainable Procurement Policy (SPP) and program. The goal is to encourage the procurement of products and services that help minimize environmental impact resulting from use and disposal of these products. Contractors are encouraged to offer Energy Star, Green Seal, EcoLogo, EPEAT, or products that meet FEMP (Federal Energy Management Program) standards for energy consumption. City also encourages contractors to offer products that are produced with recycled materials, where appropriate, unless otherwise requested in this IFB. Contractors will offer products that have minimal virgin materials and maximum use of recycled products. Contractor must work with the City to attain these goals. Notwithstanding the above, the Contractor agrees to supply the City of Sacramento with environmentally preferable and effective products in compliance with the specifications in this solicitation and provide services that help minimize environmental impact resulting from use and disposal of products specified in this bid. The Contractor further agrees that its products specified in this bid do not contain any items, ingredients or components prohibited under the City’s SPP Policy. The City may terminate this contract or take other appropriate actions if the contractor fails to comply or provide adequate supporting documentation to substantiate compliance with the City’s SP Policy and requirements specified in the bid. The City’s SPP Policy is available on line at: http://www.cityofsacramento.org/generalservices/procurement/documents/SustainablePurchasing_P olicy_SPP.pdf or by contacting the Procurement Services Division at (916) 808-6240. RFP: TREE PRUNING SERVICES P12151811011 June 20, 2012 Attachment 5  Page21of31  CITY OF SACRAMENTO BOYCOTT OF ARIZONA–HEADQUARTERED BUSINESSES  On June 15, 2010, the Sacramento City Council adopted Resolution No. 2010-346 opposing two Arizona laws (SB 1070 and HB 2162) that will allow Arizona police to arrest individuals suspected of being unlawfully present in the United States and to charge immigrants with a state crime for not carrying immigration documents. Sacramento City Council Resolution No. 2010-346 also called for a boycott of the State of Arizona and businesses headquartered in Arizona until Arizona repeals or a court nullifies SB 1070 and HB 1262. Resolution No. 2010- 346 provides, in pertinent part, that “where practicable and where there is no significant additional cost to the City, the City of Sacramento shall not enter into any new, amended, extended or supplemental contracts to purchase or procure goods or services from any business or entity that is headquartered in Arizona ...”  Pursuant to the provisions of Resolution No. 2010-346, the City may determine that a bid from a business or entity that is headquartered in Arizona is nonresponsive and the City may reject the bid on that basis.  Bidders that are headquartered in the United States shall certify in the space below the state where the bidder is headquartered:   State Where Bidder is Headquartered  RFP: TREE PRUNING SERVICES P12151811011 June 20, 2012  Page22of31  Attachment 6 PRICING SCHEDULE  In compliance with the Specifications and Scope of Work, and the Contract Documents, the Contractor hereby proposes to furnish all required labor, materials, supervision, transportation, equipment, services, taxes and incidentals required for Tree Pruning Services. CONTRACTOR billable rates are contained in the tables below. DEMAND PRUNING Size Class Quantity Cost per Tree Year 1 Cost per Tree Year 2 Cost per Tree Year 3 Total Cost for Contract 4 – 6 d.b.h. 20 $ $ $ $ 7 - 12 d.b.h. 20 $ $ $ $ 13 - 24 d.b.h. 20 $ $ $ $ 25 - 36 d.b.h. 100 $ $ $ $ 37 - 48 d.b.h. 50 $ $ $ $ 49+ d.b.h. 50 $ $ $ $ Totals 280 $ $ $ $ PROGRAM PRUNING Size Class Quantity Cost per Tree Year 1 Cost per Tree Year 2 Cost per Tree Year 3 Total Cost for Contract 4 – 6 d.b.h. 800 $ $ $ $ 7 - 12 d.b.h. 1,100 $ $ $ $ 13 - 24 d.b.h. 1,500 $ $ $ $ 25 - 36 d.b.h. 1,200 $ $ $ $ 37 - 48 d.b.h. 500 $ $ $ $ 49+ d.b.h. 400 $ $ $ $ Totals 6,000 $ $ $ $ RFP: TREE PRUNING SERVICES P12151811011 June 20, 2012  Page23of31  CROWN REDUCTION (ENGLISH ELMS) Size Class Quantity Cost per Tree Year 1 Cost per Tree Year 2 Cost per Tree Year 3 Total Cost for Contract 25 - 36 d.b.h. 40 $ $ $ $ 37 - 48 d.b.h. 40 $ $ $ $ 49+ d.b.h. 60 $ $ $ $ Subtotal 140 $ $ $ $ PALM PRUNING Size Class Quantity Cost per Tree Year 1 Cost per Tree Year 2 Cost per Tree Year 3 Total Cost for Contract Date Palm under 55' working height 100 $ $ $ $ Date Palm over 55' working height 20 $ $ $ $ Washingtonia species under 55' working height 50 $ $ $ $ Washingtonia .species over 55' working height 125 $ $ $ $ Totals 295 $ $ $ $ RFP: TREE PRUNING SERVICES P12151811011 June 20, 2012  Page24of31  TREE REMOVAL TO 6” INCHES ABOVE SOIL LINE Size Class Quantity Cost per Tree Year 1 Cost per Tree Year 2 Cost per Tree Year 3 Total Cost for Contract 0 – 3 d.b.h. 0 $ $ $ $ 4 – 6 d.b.h. 50 $ $ $ $ 7 - 12 d.b.h. 100 $ $ $ $ 13 - 24 d.b.h. 200 $ $ $ $ 25 - 36 d.b.h. 100 $ $ $ $ 37 - 48 d.b.h. 100 $ $ $ $ 49+ d.b.h. 50 $ $ $ $ Totals 600 $ $ $ $ STUMP GRINDING Size Class Quantity Cost per Tree Year 1 Cost per Tree Year 2 Cost per Tree Year 3 Total Cost for Contract 0 – 3 d.b.h. 0 $ $ $ $ 4 – 6 d.b.h. 50 $ $ $ $ 7 - 12 d.b.h. 100 $ $ $ $ 13 - 24 d.b.h. 200 $ $ $ $ 25 - 36 d.b.h. 100 $ $ $ $ 37 - 48 d.b.h. 100 $ $ $ $ 49+ d.b.h. 50 $ $ $ $ Totals 600 $ $ $ $ RFP: TREE PRUNING SERVICES P12151811011 June 20, 2012  Page25of31  Service Hours 3 person crew /w Bucket Cost per Hour Year 1 Cost per Hour Year 2 Cost per Hour Year 3 Total Cost for Contract Hourly Rates for Unscheduled Work or Storm/Emergency Work Billable Rates Crane Services 100 $ $ $ $ *General Crew Rate 100 $ $ $ $ Total $ $ $ $ *NOTE: The estimated hours and dollar amount for hourly rates are for bid evaluation purposes only. Unscheduled work (storm or other emergency work) shall be billed portal to portal, not to exceed l.5 hours, round trip. Rates should be based on a typical three-person crew, including a qualified lead worker. Equipment needs should include a truck equipped with a chip box and an aerial lift with a minimum working height of 55 feet, a brush chipper, and all associated tools and equipment to complete a typical tree pruning or removal assignment per the General Requirements that follow in this document. The hourly labor rates quoted must be all inclusive. Quotes will be based on an hourly rate, based upon the time the Contractor begins work on site. Cost for travel time should be built in to the hourly rate that is quoted. No surcharges or additional costs will be allowed.  In determining the amount quoted by each contractor, the City shall disregard mathematical errors in addition, subtraction, multiplication, and division that appear obvious on the face of the Proposal. When such a mathematical error appears on the face of the Proposal, the City shall have the right to correct such error and to compute the total amount bid by said bidder on the basis of the corrected figure or figures.  When an item price is required to be set forth in the Proposal, and the total for the item set forth separately does not agree with a figure which is derived by multiplying the item price times the Project Manager's estimate of the quantity of work to be performed for said item, the item price shall prevail over the sum set forth as the total for the item unless, in the sole discretion of the City, such a procedure would be inconsistent with the policy of the bidding procedure. The total paid for each such item of work shall be based upon the item price and not the total price. Should the Proposal contain only total price for the item and the item price is omitted, the City shall determine the item price by dividing the total price for the item by the Project Manager's estimate of the estimated quantities of work to be performed as items of work. If the Proposal contains neither the item price nor the total price for the item, then it shall be deemed incomplete and the Proposal shall be disregarded. RFP: TREE PRUNING SERVICES P12151811011 June 20, 2012  Page26of31  Attachment 7 Equipment List Proposals must provide the following information regarding all equipment that will be readily available (within 24 hours) to complete this contract. Please enter the number of units for each specific piece of equipment listed below. If you do not have a specific unit listed below place a “0” (zero) in the space provided, do not leave blank. Chippers Make Size # of units Bucket Trucks Make/model Height # of units RFP: TREE PRUNING SERVICES P12151811011 June 20, 2012  Page27of31  Chipper Trucks Make Cubic Yards # of units Stump Grinders Make and Model Max Depth # of units Crane Make and Model Capacity # of units RFP: TREE PRUNING SERVICES P12151811011 June 20, 2012  Page28of31  Dump trucks Make and Model Cubic Yards # of units RFP: TREE PRUNING SERVICES P12151811011 June 20, 2012  Page29of31  Attachment 8 Relevant Work Experience In this section please provide information regarding your relevant experience and responsibilities on similar work or projects. In addition, the following form will allow you to fill out a listing of your previous work and current work commitments. Please include telephone numbers of personal references. References will be contacted as part of the selection process. Previous Contracts Name: City, State Government Municipality: Work Description: Similarities to the City of Sacramento: Terms of Contract: Reference Name: Agency: Phone Number: E-mail: RFP: TREE PRUNING SERVICES P12151811011 June 20, 2012  Page30of31  Current Contracts City, State Government Municipality: Work Description: Similarities to the City of Sacramento: Terms of Contract Reference Name: Agency: Phone Number: E-mail: RFP: TREE PRUNING SERVICES P12151811011 June 20, 2012  Page31of31  Attachment 9 Staffing ISA Certified tree Workers Name Certification # ISA Certified Arborists Name Certification #                 REQUEST FOR PROPOSAL:  TREE PRUNING SERVICES    P12151811001    Proposals are due by 2:00 p.m., Wednesday, July 11, 2012 City of Sacramento DOT Street Services 5730 24th Street, Bldg. 9 Sacramento, CA95822 Attention: Azadeh Doherty RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page2of31  REQUEST FOR PROPOSAL  TREE PRUNING SERVICES    TABLE OF CONTENTS AIntroduction3 1. Purpose 2. Deadline 3. Background 3 3 3 BSELECTION3 1. SelectionProcess 2. SelectionSchedule 4 4 CSERVICESREQUIRED5 DPROPOSALSUBMITTALREQUIREMENTS 5Ͳ6 ENONPROFESSIONALSERVICESAGREEMENT 6 FADDENDAANDSUPPLEMENTS7 GBUSINESSOPERATIONSTAXCERTIFICATE(B.O.T.C) 7 HMISCELLANEOUS7Ͳ8  AppendixA–ProposalEvaluationCriteria  9 AppendixB–SpecificationsandScopeofWork 10Ͳ15  OTHERREQUIREDDOCUMENTS  Attachment1 Attachment2 Attachment3 Attachment4 Attachment5 Attachment6 Attachment7 Attachment8 Attachment9 ItemsRequiringResponse LicensesCertificationsandRegistrations DrugFreeWorkplacePolicyandAffidavit CertificationofEnvironmentallyPreferableProducts StatementofHeadquarters,CityofSacramentoBoycottofArizona PricingSchedule EquipmentList RelevantWorkExperience Staffing 16Ͳ17 18 19 20 21 22Ͳ25 26Ͳ28 29Ͳ30 31   RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page3of31   REQUEST FOR PROPOSAL  TREE PRUNING SERVICES    A. INTRODUCTION  1. Purpose  The City of Sacramento Department of Transportation, Urban Forestry Division, intends to hire a Tree Pruning contractor to perform tree pruning maintenance services, on an as needed basis.  The City is requesting Proposal from tree pruning contractors who have significant experience in the delivery of a wide-breadth of high-quality tree pruning services. The City will be reviewing the proposals to identify a contractor best suited to provide the required services and the greatest value.  Interested contractors are invited to submit a Proposal in accordance with the requirements with the format and information listed in Section D.  2. Deadline  Proposals are to be received by 2:00 p.m. on July 11, 2012, as described in Section D of this RFP.  3. Background  The City has approximately 100,000 public trees that are located in the right-of- way, such as in planter strips between the curb and sidewalk. In a few areas, the right-of-way extends beyond that and into front yards. Tree pruning and maintenance are routinely performed by the Urban Forest operational staff. Over the past year contracted tree pruning and removal services have been used to supplement the work performed by City staff. In order to continue to support the work of the Urban Forest staff, create more flexibility and provide the most cost efficient/ quality service for the City residents, DOT is seeking to select a contractor to continue to provide these services. Tree Pruning service contractors are funded by fees from the Citywide Landscaping & Lighting District. There are no General Funds allocated for these services.  B. SELECTION  The City will evaluate proposals on a qualitative basis. The evaluation will include a thorough examination of each firm’s range of capabilities, proven record of successfully delivering quality service, their relative value, and the firm’s completeness and timeliness in its response to us. Any contract resulting from this RFP shall be effective from the date of award, through August 15, 2013. If mutually agreeable to both parties, this contract may be extended on a year-to-year basis; however, in no case shall the renewal extend beyond three (3) years from date of the award of the original contract. The RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page4of31  Contactor shall be capable of performing all tree pruning services as outlined in the Scope of Services and in conformance with the contract contained herein. A Pre-Bid Meeting will be held at 10:00 a.m., on June 29, 2012 at the City of Sacramento, South Area Corp Yard, Building 3, 5730 24th Street, Sacramento, CA 95822. 1. Selection Process  After the submittal deadline has passed, a selection committee will review and rate each of the proposals received and rank them according to the criteria provided in Appendix 1, Evaluation Criteria, including consideration of expertise, knowledge, and experience, as well as value. The evaluation may include discussions with other clients. The committee will also interview prospective contractors to obtain additional information.  At the conclusion of the selection process, staff will request that City Council award a Nonprofessional Services Agreement to the top-ranked contractor.  Emerging and Small Business Enterprise (ESBE) participation will be considered during Proposal evaluation as indicated on Appendix 1, Evaluation Criteria. For more information see Attachment 1, Items Requiring Response.  The issuance of this RFP shall not be interpreted as, and does not constitute, a representation by the City that any specific contractor or contractors will be retained to perform any of the services described herein, and a contractor shall not acquire any right or entitlement to be retained for such purpose by virtue of submitting a proposal in response to this RFP.  The City reserves the right to issue additional RFP(s) for the performance of these services during the service period specified below. The City also reserves the option to cancel or modify this RFP and the selection process at any time.  2. Selection Schedule  RFP issued June 20, 2012 Last day to ask questions (if necessary) June 29, 2012 Pre-Bid Meeting June 29, 2012 Last Addendum posting date (if necessary) July 5, 2012 Proposals due July 11, 2012, at 2:00 p.m. Evaluation by selection panel July 12, 2012 –July 17, 2012 Interview (tentative) July 18, 2012 Contract preparation July 18, 2012-August 1, 2012 Contract award by City Council (tentative) August 14, 2012 First work assigned (on or after) August 20, 2012  It is important that the contractors selected be able to respond quickly during contract preparation phase, to facilitate the timely approval by City Council. Any delay in submitting required contract and/or insurance documents may result a delay in award.  RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page5of31  C. SERVICES REQUIRED  Contractor must provide all labor, material, tools, and equipment necessary to complete assigned projects.  All work performed shall conform to the City of Sacramento tree pruning specifications and Scope of Work of this RFP as detailed in Appendix B. A digital copy of the document is available, upon request, from the Project Manager.  D. PROPOSAL SUBMITTAL REQUIREMENTS  Contractors interested in submitting a proposal for this project should respond to this RFP by submitting a written proposal providing all the information requested below. The proposal will be considered complete only if all of the items listed in this section are included in the submittal. Five (5) copies of the proposal and an electronic copy on CD shall be submitted no later than 2:00 p.m., July 11, 2012 to: City of Sacramento Department of Transportation Street Services 5730 24th Street, Bldg. 9 Sacramento, CA95822  Attention: Azadeh Doherty Re: RFP for Tree Pruning Services  Hand deliveries of proposals must be received and time/date stamped by the receptionist at the front desk of the Street Services Division, in building 9, prior to the submission deadline or risk being disqualified.  Proposals should be prepared simply and economically, providing a straight forward, concise description of provider capabilities to satisfy the requirements of the RFP. Emphasis should be on completeness and clarity of content.  An authorized representative of the firm must complete and sign the proposal. Please provide and present, in the order listed, the following information: 1. Company name, including corporate office and local office address, city, state, zip code, telephone number, fax number and web site address. Include brief company history, background, specialties, and ownership.  2. Proposal’s contact person, address, telephone number, and eǦmail address.  3. Introductory letter describing company’s basic understanding of the services identified. This letter should also contain an expression of the company’s interest in the work, a statement regarding the qualifications of the contractor to do the work, and any summary information that may be useful or informative to the City and the evaluation committee.  4. A list all tree pruning contracts, both currently engaged in and completed, for the RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page6of31  last three years. Include the name and address of the contracting agency or party, inclusive dates, a summary of the scope of work, and the agency or contracting party’s Project Manager and phone number (see Attachment 8).  5. Organizational chart identifying key employees, including the anticipated contract manager and field supervisors.  6. A summary of the expertise and qualifications of key employees who will be responsible for providing the services described in Section C, above.  7. Complete and attach the following documents: Attachment 1: Items Requiring Response Attachment 2: Licenses, Certifications, and Registrations  Attachment 3: Emerging Business Enterprise (EBE) or Small Business Enterprise (SBE) certifications  Attachment 4: Certification of Environmentally Preferable Products  Attachment 5: Drug Free Workplace Policy and Affidavit  Attachment 6: Statement of Headquarters, City of Sacramento Boycott of Arizona  Attachment 7: Pricing Schedule  E. NONPROFESSIONAL SERVICES AGREEMENT  A copy of the City’s Non-Professional Services Agreement that the selected contractors will be required to sign is provided as Attachment 9. The copy is for information only and is not a required component of the proposal. Please note that any contractor selected will be required to comply with the standard provisions set forth in Exhibit D of the Agreement; section 11.A provides information on minimum scope and limits of insurance coverage, and section 11.B provides information on additional insured coverage.  The selected firm will need to provide insurance certificate(s) for Commercial General Liability, Automobile Liability, Workers’ Compensation and Employer’s Liability, and Professional Liability Insurance for this project. Endorsement(s) signed by an authorized representative of the insurance carrier will also be needed for Commercial General Liability and Automobile Liability insurance, with language included in the endorsement(s) that the City, its officials, employees and volunteers shall be covered as additional insured. If the insurance certificate(s) are provided by an insurance broker, the insurance company will also need to provide verification of coverage.  The selected contractors will be required to complete and submit an IRS Form WǦ9 and CA Form 590. RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page7of31  F. ADDENDA AND SUPPLEMENTS  The City of Sacramento reserves the right to cancel, postpone, extent or revise this RFP or the RFP process at any time. If it becomes necessary to revise any part of this RFP, an Addendum to the RFP will be provided on the City’s Bid website at:  http://www.cityofsacramento.org/finance/bids/.  G. BUSINESS OPERATIONS TAX CERTIFICATE (B.O.T.C.)  Sacramento City Code Chapter 3.08 requires any person or firm conducting business within or with the City of Sacramento to pay a Business Operations Tax and have a current Business Operations Tax Certificate.  To obtain information about the Business Operations Tax Certificate, contact the City of Sacramento Revenue Division, 915 I Street, Sacramento, CA 95814, or telephone 916Ǧ808Ǧ8500.  H. MISCELLANEOUS  All material submitted shall become the property of the City of Sacramento, may be reviewed and evaluated as part of this RFP process by any persons at the discretion of the City of Sacramento, and may be publicly disclosed as required by law.  Written Questions concerning this RFP must be submitted in writing to: City of Sacramento Department of Transportation Street Services 5730 24th Street, Bldg. 9 Sacramento, CA 95822  Attention: Azadeh Doherty Email: adoherty@cityofsacramento.org  Written Questions concerning the Scope of Work must be submitted in writing to: City of Sacramento Department of Transportation 5730 24th Street, Building 12A Sacramento, California 95822 Attn: Todd Martin  Fax: (916) 808-4005  Email: tmartin@cityofsacramento.org  Copies of written questions and the corresponding responses of a substantive nature will be shared with all participants who provide an eǦmail address and/or fax number when downloading the RFP from the City of Sacramento. RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page8of31  The City will NOT accept questions after 3:00 p.m., June 29, 2012. Contractors submitting written questions are encouraged to verify the questions were received by contacting Todd Martin at (916) 808Ǧ8074. The City of Sacramento assumes no responsibility for delayed, misdirected, partial delivery or failure to deliver any questions. The City will not respond to any questions arriving after the aforementioned deadline set forth in this RFP.  RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page9of31  REQUEST FOR PROPOSALS APPENDIX A TREE PRUNING SERVICES PROPSALS EVALUATION CRITERIA    The City will screen all proposals and generally evaluate them on the criteria outlined below: x Responsiveness: The City will consider the material submitted by each firm to determine whether the proposal is in compliance with the request.  x Responsibility: The City will consider the material submitted by each firm and other evidence it may obtain to determine their demonstrated ability to provide the required scope of services.  x Comparative ranking:  1. The relative value offered by each firm by means of competitive pricing. (Weighted 50%)  2. The firm’s relative capabilities, qualifications, and experience. (Weighted 25%)  3. Satisfactory references. Preference will be given to local government client references. (Weighted 25 %)  x The City will also consider availability of other related services, as well as any other information provided that the City deems valuable. RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page10of31  REQUEST FOR PROPOSALS APPENDIX B TREE PRUNING SERVICES SPECIFICATIONS AND SCOPE OF WORK   The scope of contracted work shall consist of removal, pruning, and other maintenance operations of trees, palms and other woody plants, in various locations within the City of Sacramento, hereafter referred to as the City. Work shall be supervised and approved by representatives of the Department of Transportation, Urban Forestry staff. GENERAL REQUIREMENTS Contractor shall be aware of and shall comply with the Sacramento City Codes governing tree pruning work, traffic control and any other regulations that may affect operations. Refer to City of Sacramento’s Standard Specifications, Section 6-18. Contractor shall furnish all labor, materials, and equipment necessary to perform the work described herein in strict accordance with these specifications and subject to the terms and conditions of the contract. All work is to be performed by a tree care contractor, who shall be licensed by the California Contractors State License Board (Classification C-61/Category D-49) to provide such contract services within the State of California and the City of Sacramento. Debris Removal The scope of work shall include removal and disposal of brush and debris generated by said work. Waste material shall be disposed of at the contractor’s expense at a location designated and/or approved by the City. Waste material shall not be given away or sold as firewood. Waste material (excepting trees affected by Dutch Elm Disease as noted below) shall not be landfilled. Recycling of wood and wood chips through sustainable uses is strongly encouraged. Contractor shall provide wood or trunk samples if requested by Urban Forestry staff. In the case of trees suspected of being infected with Dutch Elm Disease, the contractor shall comply with Sacramento City Code, Title 12, Chapter 12.60 – Dutch Elm Disease. The contractor shall dispose of all wood and debris and ensure that all material is processed through a wood waste grinder, wood chipper, or buried at a landfill facility within 48 hours. Material that is processed through wood waste grinders or wood chippers does not require burial. Debris resulting from contractor’s operations shall not be left on any work sites overnight. Upon completion of a work, the site shall be left in a clean and orderly condition. Tool Sanitation and Disease Transmittal Contractor’s tools that have potential to transmit pests or diseases to other trees shall be disinfected prior to initiating work within the City, after work on any potentially diseased trees, and prior to re- initiating work after any work outside of City-contracted services. All lead workers that supervise tree care operations under the terms and conditions of this contract shall attend a Dutch Elm Disease awareness and training class, provided by Urban Forestry, prior to any work on species susceptible to the disease. Disposal sites and methods for Dutch Elm Disease RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page11of31  -infected tree parts shall be approved by Urban Forestry staff. Due to disease concerns regarding Canary Island Date Palms (Phoenix canariensis) and California fan palms (Washington filifera), live fronds, flowers and fruit parts must be pruned with handsaws. Chain saws and hand saws shall be disinfected with a 10% mixture of water and household bleach. Chain saw shall have the clutch cover removed and the chain, bar, and clutch area shall be sprayed. Handsaws are to be completely disinfected after each use. Chain saws and hand saws shall be disinfected with each use before pruning the next tree. Damage to Property Public or private property damaged as a result of contractor’s operations shall be repaired or replaced at the contractor’s expense to the originally existing condition. Inspection Prior to Invoicing Contractor shall contact Urban Forestry staff to request inspection of all work performed. All work shall be approved by an Urban Forestry representative prior to submittal of invoices for payment Equipment All vehicles and equipment used in the performance of work assigned under this contract shall be in good working order and in compliance with all local, state and federal laws. Vehicles shall display signage noting the contractor’s name, telephone number, and “City of Sacramento Urban Forestry Contractor”. City identification signs shall not be displayed when performing any work outside of this contract. Record Keeping & Invoicing The contractor shall invoice Urban Forestry monthly in a MS Excel format as provided by the City. This format shall be used for each invoice and must be completed in its entirety. General Safety Requirements Contractor shall comply with applicable state and federal regulations regarding safety, including the use of personal protective equipment and training. All work within 10 feet of any overhead high voltage electrical conductors shall be referred to the Sacramento Municipal Utility District (SMUD) by the contractor. Work shall be scheduled by the contractor in cooperation with SMUD and shall be the conducted in such a manner as to minimize disruption of service and disturbance of residents. Tree care operations that involve climbing or other aerial work may be temporarily suspended during inclement weather with prior approval from Urban Forestry Services. Temporary Street Parking Closure Contractor shall provide barricades with signage noting parking restrictions and days and times of scheduled tree care operations at least 72 hours in advance of work. All barricades and signage RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page12of31  must be approved by Urban Forestry staff. Parking closure signs shall not be attached to trees. Parking closure signs shall not indicate TOW AWAY zones. Holiday Moratoriums and Special Events Certain streets may be temporarily closed to construction and maintenance projects during the period from the Thanksgiving holiday through the New Year’s holiday and during special events. The contractor shall abide by City regulations in regards to any necessary work subject to those restrictions by obtaining prior authorization through the City of Sacramento Department of Transportation. Parking and Traffic Violations Parking and traffic citations as a result of violations shall be the responsibility of the contractor. Work Week The normal work week shall be Monday through Friday, or Tuesday through Saturday, 7:00 A.M. to 3:30 P.M. Where traffic, parking or other constraints exist, the work week may be modified to the same hours on Tuesday through Saturday. All work week modifications shall be approved by Urban Forestry staff. Allocation and Completion of Work Orders Work Orders shall be allocated by Urban Forestry based on actual service requirements and available funding. All work orders will be assigned on an as-needed basis as determined by Urban Forestry. It is possible that no services may be required by the City from a Contractor during all or any portion of the contract term. All work orders assigned to the contractor shall be completed within thirty (30) days except where otherwise noted. Annual Expected Budget The expected budget for Tree Pruning Services will not exceed $1,000,000.00 annually. Actual budget will be based upon availability of funds and anticipated annual services requirements. Contract A. The contract(s) shall be effective from the date of award through June 30, 2013. B. If mutually agreed by both parties, the contract may be extended on a year-to-year basis, however, in no case shall the renewals extend beyond June 30, 2015. The expected budget for the initial term and two optional extensions will not exceed $3 million. Qualified Personnel The contractor shall provide qualified supervisory staff. 1. Each crew shall be led by at least one employee with current certification as a Western Chapter International Society of Arboriculture Certified Tree Worker. RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page13of31  2. A minimum of one supervising employee with current certification as an International Society of Arboriculture Certified Arborist shall be provided for every six (6) contractor employees assigned to City work. Uniforms and Identification All contractor personnel shall be required to wear uniforms bearing the contractor’s company name while completing City work assignments. Uniforms shall consist of a shirt and/or jacket with company and employee name neatly screen printed or embroidered and conspicuous. The CONTRACTOR shall provide the following services as requested by Urban Forestry: 1. Demand Pruning 2. Programmed Pruning 3. Crown Reduction/Crown Clean for English Elms 4. Palm Pruning 5. Tree Removal 6. Stump Grinding 7. Crane Services 8. Unscheduled Work or Storm/Emergency Work Crew Services 9. Note: English elms not requiring a crown reduction will be billed at Programmed or Demand based pruning rates. Tree care operations shall be in accordance with current standards as established by the American National Standard Institute (ANSI). Specifically, current ANSI A300 (Tree, Shrub and Other Woody Plant Maintenance-Standard Practices), ANSI Z133 (Safety Requirements for Arboricultural Operations) and accompanying “Best Management Practices” publications shall be adhered to. Tree climbing spurs shall not be used except where trees are to be removed, where trees cannot otherwise be safely accessed, or in the case of emergencies. With the exception of work requested on a time and materials basis, all pruning orders shall be based on complete pruning of the entire tree. Tree Pruning Programmed and Demand Based Pruning Work orders for programmed pruning are based on street block areas within the City of Sacramento boundaries. Generally, programmed pruning areas are planned as contiguous areas. Work orders for demand-based pruning are based on service requests with specific objectives in various locations within the City of Sacramento boundaries and may or may not be at contiguous locations. Notwithstanding the referenced ANSI standards, trees and palms shall be pruned as follows: Mature Trees Tree crowns shall be cleaned, raised, reduced, thinned or any combination of these methods to RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page14of31  achieve the following objectives: 1. Remove dead branches that are greater than 1 inch at the point of attachment. 2. Remove diseased, decayed, broken, weakly attached, and/or crossing branches. 3. Remove mistletoe and/or vines growing on the tree. 4. Improve tree growth and form to maximize safety, structural integrity, and health. 5. Prune to provide eventual clearance of 14 feet over roadways; prune to provide eventual clearance of 8 feet over pedestrian pathways; prune to provide eventual clearance of 5 feet around buildings and other structures, including, but not limited to roofs, gutters, fireplaces, television antennas, and utility service connections. 6. Prune to clear line of sight for streetlights, traffic signs and signals, and street signs. In achieving the above objectives, the contractor shall not remove more of the tree crown than necessary. Under no circumstances shall more than 25 percent of the crown be removed without approval from Urban Forestry Services. When reducing the length of a limb, the resulting terminal branch should be at least one-third (1/3) the diameter of the parent limb. Young Trees Young trees (under eight inches) shall be pruned to achieve the following objectives: 1. Remove dead branches. 2. Remove diseased, decayed, broken, weakly attached and/or crossing branches. 3. Develop strong central leader and radially and vertically symmetric distribution of branches as appropriate for the species. 4. Encourage trunk taper by retaining temporary branches until diameter at the point of attachment is approximately one third of the diameter of the parent branch. 5. Select and develop permanent branches. 6. Retain foliage in the lower portion of the canopy as long as possible. 7. Prune to avoid conflicts with pedestrians, vehicles, and sight-lines at street intersections. Palms 1. Remove dead and dying fronds. 2. Prune palm crown to no narrower than a 9 and 3 o’clock position. 3. Remove loose frond sheaths along the entire length of the trunk. 4. Remove fruit and flowers. Tree Removal Notwithstanding the referenced ANSI Standards, trees, palms and other woody plants shall be removed as follows: 1. Remove all tree parts in a safe and efficient manner. Where necessary, tree parts shall be lowered by rope, crane, or other suitable means to avoid damage to surrounding property, including adjacent trees. 2. Ropes or other rigging shall not be placed so as to cause damage to adjacent property or trees 3. Trees shall be removed to within six (6) inches of grade, measured from the soil line where the trunk meets the ground. RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page15of31  Stump Removal 1. Stumps shall be ground to a depth of 20 inches. Contractor shall also grind out all surface roots 2” inches or greater within a 6’ foot radius of the stump. Stump grindings shall be removed to a depth of 20 inches. 2. Contractor shall, backfill the hole with a top soil blend consisting of 50% compost by weight. 3. Contractor shall compact soil to allow for settling. 4. Contractor is responsible for notifying Underground Service Alert prior to grinding stumps or digging anywhere within the public right-of-way or city property. 5. Contractor shall respond to all non-urgent stump grinding work orders within 5 working days. Stump grinding work orders related to sidewalk repairs shall be completed within 3 working days. 6. Where stump grinding is being performed to accommodate a new replacement sidewalk, all surface roots within the footprint of the sidewalk shall be ground to a depth of 6 inches. RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page16of31  Attachment 1  ITEMS REQUIRING RESPONSE  NOTE: Contractors must provide responses where indicated to the following items. Failure to provide a response to each of the items in this section may be grounds for rejection of proposal.  1. SBE/EBE FIVE PERCENT (5%) BID EVALUATION PREFERENCE  On February 9, 1999, the Sacramento City Council adopted an Emerging and Small Business Development program to provide enhanced opportunities for the participation of small business enterprises (SBEs) and emerging business enterprises (EBEs) in the City’s contracting and procurement activities. Any Proposal submitted by a firm that is certified as a SBE by the City of Sacramento, or that is certified as an EBE by the City of Sacramento, will receive a five percent (5%) evaluation preference for the purpose of determining the relative value of a contractor (see Appendix A of this RFP). If, after applying the 5% price evaluation preference, the SBE/EBE firm receiving such preference is subsequently awarded a contract, the amount of the contract will be based upon the actual amount quoted in the Pricing Schedule. To receive this evaluation preference, a firm must be certified as a SBE or EBE at the time of Proposal due date. Questions regarding eligibility for SBE/EBE certification should be addressed to the City of Sacramento Procurement Division, at (916) 808-6747.  A. SMALL BUSINESS ENTERPRISE (SBE) CERTIFICATION  Is the firm submitting the proposal certified by the City of Sacramento as a small business enterprise? Check the appropriate block below:  YES – Our firm is certified by the City of Sacramento as a small business enterprise. NO -Our firm submitting is not certified by the City of Sacramento as a small business enterprise. If the response to the above is YES, provide the City of Sacramento Certification Number .  B. EMERGING BUSINESS ENTERPRISE (EBE) CERTIFICATION  Is the firm submitting the proposal certified by the City of Sacramento as an emerging business enterprise? Check the appropriate block below:  YES - Our firm is certified by the City of Sacramento as an emerging business enterprise.  NO - Our firm is not certified by the City of Sacramento as an emerging business enterprise.  If the response to the above is YES, provide the City of Sacramento Certification Number: _.   2. PAYMENT DISCOUNT  Will you offer a prompt payment discount? Yes [ ] or No [ ] (Net 30 days)  If Yes, the Payment Discount is % for payment within calendar days, which will be computed from the date delivery is made and is accepted by the City, or the date a proper invoice is received, whichever is later. RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012  Page17of31  PAYMENT DISCOUNTS WILL BE CONSIDERED IN THE EVALUATION OF THE PROPOSALS. In connection with any cash discount specified on this bid, time will be computed from the date of complete delivery of the supplies or equipment as specified, or from date correct invoices are received in the City Accounting Office, if the latter date is later than the date of delivery. For the purpose of earning the discount, payment is deemed to be made on the date of mailing of the City warrant or check.   Cash discounts offered for payment in less than 20 days will not be considered.  RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012 Attachment 2 LICENSES, CERTIFICATES, AND REGISTRATIONS  Page18of31   Contractor represents and warrants to the City of Sacramento that the following licenses, certificates and registrations are currently in force. The Contractor who is awarded the bid shall provide upon request photocopies of the documents listed below. All said documents will remain in force during the term of the resulting agreement with the City; failure to maintain will result in suspension or possibly termination of contract.  LICENSES/CERTIFICATES/REGISTRATION DOCUMENT # EXPIRATION DATE   STATE OF CALIFORNIA C-61 D-49 LICENSE ISA CERTIFIED ARBORIST NUMBER(S) ISA CERTIFIED TREE WORKER NUMBER(S) OTHER: (please specify)          I DECLARE UNDER PENALTY OF PERJURY, THAT THE FOREGOING IS TRUE AND CORRECT:   CONTRACTOR: signature DATE:   printed name title   COMPANY:   ADDRESS: RFP: TREE PRUNING SERVICES P12151811001 June 20, 2012 Attachment 3  Page19of31  DRUG FREE WORKPLACE POLICY AND AFFADAVIT  BID PROPOSAL MAY BE DECLARED NONRESPONSIVE IF THIS FORM (COMPLETED) IS NOT ATTACHED. Pursuant to City Council Resolution CC90-498 dated 6/26/90 the following is required.  The undersigned contractor certifies that it and all subcontractors performing under this Agreement will provide a drug-free workplace by:  1. Publishing a "Drug-Free Workplace" statement notifying employees that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the contractor's workplace and specifying the actions that will be taken against employees for violations of such prohibition.  2. Establishing a Drug-Free Awareness Program to inform employees about:  a. The dangers of drug abuse in the workplace. b. The contractor's policy of maintaining a drug-free workplace. c. Any available drug counseling, rehabilitation, and employee assistance program. d. The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace.  3.Notify employees that as a condition of employment under this Agreement, employees will be expected to:  a. Abide by the terms of the statement. b. Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace.  4.Making it a requirement that each employee to be engaged in the performance of the Agreement be given a copy on the "Drug- Free Workplace" statement.  5. Taking one of the following appropriate actions, within thirty (30) days of receiving notice from an employee or otherwise receiving such notice, that said employee has received a drug conviction for a violation occurring in the workplace:  a. Taking appropriate disciplinary action against such an employee, up to and including termination; or b. Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a federal, state, or local health, law enforcement or other appropriate agency. *I certify that no person employed by this company, corporation, or business has been convicted of any criminal drug statute violation on any job site or project where this company, corporation or business was performing was within three years of the date of my signature below.  EXCEPTION: Date Violation Type Place of Occurrence  If additional space is required use back of this form.  * The above statement will also be incorporated as a part of each subcontract agreement for any and all subcontractors selected for performance on this project.  IN THE EVENT THIS COMPANY, CORPORATION, OR BUSINESS IS AWARDED A CONTRACT, AS A RESULT OF THIS BID; THE CONTRACTOR WITH HIS/HER SIGNATURE REPRESENTS TO THE CITY THAT THE INFORMATION DISCLOSED IN THIS DOCUMENT IS COMPLETE AND ACCURATE. IT IS UNDERSTOOD AND AGREED THAT FALSE CERTIFICATION IS SUBJECT TO IMMEDIATE TERMINATION BY THE CITY.  The Representations Made Herein On This Document Are Made Under Penalty Of Perjury.  CONTRACTOR'S NAME:  BY: Date: Signature Title  Effects of violations: a. suspension of payments under the Agreement. b.Suspension or termination of the Agreement. c.Suspension or debarment of the contractor from receiving any Agreement from the City of Sacramento for a period not to exceed five years. RFP: TREE PRUNING SERVICES P12151811011 June 20, 2012 Attachment 4  Page20of31   SECTION II – CONTRACT DOCUMENTS A. SPECIAL PROVISIONS ENVIRONMENTALLY PREFERABLE PROCUREMENT The City has adopted a “Sustainable Procurement Policy (SPP) and program. The goal is to encourage the procurement of products and services that help minimize environmental impact resulting from use and disposal of these products. Contractors are encouraged to offer Energy Star, Green Seal, EcoLogo, EPEAT, or products that meet FEMP (Federal Energy Management Program) standards for energy consumption. City also encourages contractors to offer products that are produced with recycled materials, where appropriate, unless otherwise requested in this IFB. Contractors will offer products that have minimal virgin materials and maximum use of recycled products. Contractor must work with the City to attain these goals. Notwithstanding the above, the Contractor agrees to supply the City of Sacramento with environmentally preferable and effective products in compliance with the specifications in this solicitation and provide services that help minimize environmental impact resulting from use and disposal of products specified in this bid. The Contractor further agrees that its products specified in this bid do not contain any items, ingredients or components prohibited under the City’s SPP Policy. The City may terminate this contract or take other appropriate actions if the contractor fails to comply or provide adequate supporting documentation to substantiate compliance with the City’s SP Policy and requirements specified in the bid. The City’s SPP Policy is available on line at: http://www.cityofsacramento.org/generalservices/procurement/documents/SustainablePurchasing_P olicy_SPP.pdf or by contacting the Procurement Services Division at (916) 808-6240. RFP: TREE PRUNING SERVICES P12151811011 June 20, 2012 Attachment 5  Page21of31  CITY OF SACRAMENTO BOYCOTT OF ARIZONA–HEADQUARTERED BUSINESSES  On June 15, 2010, the Sacramento City Council adopted Resolution No. 2010-346 opposing two Arizona laws (SB 1070 and HB 2162) that will allow Arizona police to arrest individuals suspected of being unlawfully present in the United States and to charge immigrants with a state crime for not carrying immigration documents. Sacramento City Council Resolution No. 2010-346 also called for a boycott of the State of Arizona and businesses headquartered in Arizona until Arizona repeals or a court nullifies SB 1070 and HB 1262. Resolution No. 2010- 346 provides, in pertinent part, that “where practicable and where there is no significant additional cost to the City, the City of Sacramento shall not enter into any new, amended, extended or supplemental contracts to purchase or procure goods or services from any business or entity that is headquartered in Arizona ...”  Pursuant to the provisions of Resolution No. 2010-346, the City may determine that a bid from a business or entity that is headquartered in Arizona is nonresponsive and the City may reject the bid on that basis.  Bidders that are headquartered in the United States shall certify in the space below the state where the bidder is headquartered:   State Where Bidder is Headquartered  RFP: TREE PRUNING SERVICES P12151811011 June 20, 2012  Page22of31  Attachment 6 PRICING SCHEDULE  In compliance with the Specifications and Scope of Work, and the Contract Documents, the Contractor hereby proposes to furnish all required labor, materials, supervision, transportation, equipment, services, taxes and incidentals required for Tree Pruning Services. CONTRACTOR billable rates are contained in the tables below. DEMAND PRUNING Size Class Quantity Cost per Tree Year 1 Cost per Tree Year 2 Cost per Tree Year 3 Total Cost for Contract 4 – 6 d.b.h. 20 $ $ $ $ 7 - 12 d.b.h. 20 $ $ $ $ 13 - 24 d.b.h. 20 $ $ $ $ 25 - 36 d.b.h. 100 $ $ $ $ 37 - 48 d.b.h. 50 $ $ $ $ 49+ d.b.h. 50 $ $ $ $ Totals 280 $ $ $ $ PROGRAM PRUNING Size Class Quantity Cost per Tree Year 1 Cost per Tree Year 2 Cost per Tree Year 3 Total Cost for Contract 4 – 6 d.b.h. 800 $ $ $ $ 7 - 12 d.b.h. 1,100 $ $ $ $ 13 - 24 d.b.h. 1,500 $ $ $ $ 25 - 36 d.b.h. 1,200 $ $ $ $ 37 - 48 d.b.h. 500 $ $ $ $ 49+ d.b.h. 400 $ $ $ $ Totals 6,000 $ $ $ $ RFP: TREE PRUNING SERVICES P12151811011 June 20, 2012  Page23of31  CROWN REDUCTION (ENGLISH ELMS) Size Class Quantity Cost per Tree Year 1 Cost per Tree Year 2 Cost per Tree Year 3 Total Cost for Contract 25 - 36 d.b.h. 40 $ $ $ $ 37 - 48 d.b.h. 40 $ $ $ $ 49+ d.b.h. 60 $ $ $ $ Subtotal 140 $ $ $ $ PALM PRUNING Size Class Quantity Cost per Tree Year 1 Cost per Tree Year 2 Cost per Tree Year 3 Total Cost for Contract Date Palm under 55' working height 100 $ $ $ $ Date Palm over 55' working height 20 $ $ $ $ Washingtonia species under 55' working height 50 $ $ $ $ Washingtonia .species over 55' working height 125 $ $ $ $ Totals 295 $ $ $ $ RFP: TREE PRUNING SERVICES P12151811011 June 20, 2012  Page24of31  TREE REMOVAL TO 6” INCHES ABOVE SOIL LINE Size Class Quantity Cost per Tree Year 1 Cost per Tree Year 2 Cost per Tree Year 3 Total Cost for Contract 0 – 3 d.b.h. 0 $ $ $ $ 4 – 6 d.b.h. 50 $ $ $ $ 7 - 12 d.b.h. 100 $ $ $ $ 13 - 24 d.b.h. 200 $ $ $ $ 25 - 36 d.b.h. 100 $ $ $ $ 37 - 48 d.b.h. 100 $ $ $ $ 49+ d.b.h. 50 $ $ $ $ Totals 600 $ $ $ $ STUMP GRINDING Size Class Quantity Cost per Tree Year 1 Cost per Tree Year 2 Cost per Tree Year 3 Total Cost for Contract 0 – 3 d.b.h. 0 $ $ $ $ 4 – 6 d.b.h. 50 $ $ $ $ 7 - 12 d.b.h. 100 $ $ $ $ 13 - 24 d.b.h. 200 $ $ $ $ 25 - 36 d.b.h. 100 $ $ $ $ 37 - 48 d.b.h. 100 $ $ $ $ 49+ d.b.h. 50 $ $ $ $ Totals 600 $ $ $ $ RFP: TREE PRUNING SERVICES P12151811011 June 20, 2012  Page25of31  Service Hours 3 person crew /w Bucket Cost per Hour Year 1 Cost per Hour Year 2 Cost per Hour Year 3 Total Cost for Contract Hourly Rates for Unscheduled Work or Storm/Emergency Work Billable Rates Crane Services 100 $ $ $ $ *General Crew Rate 100 $ $ $ $ Total $ $ $ $ *NOTE: The estimated hours and dollar amount for hourly rates are for bid evaluation purposes only. Unscheduled work (storm or other emergency work) shall be billed portal to portal, not to exceed l.5 hours, round trip. Rates should be based on a typical three-person crew, including a qualified lead worker. Equipment needs should include a truck equipped with a chip box and an aerial lift with a minimum working height of 55 feet, a brush chipper, and all associated tools and equipment to complete a typical tree pruning or removal assignment per the General Requirements that follow in this document. The hourly labor rates quoted must be all inclusive. Quotes will be based on an hourly rate, based upon the time the Contractor begins work on site. Cost for travel time should be built in to the hourly rate that is quoted. No surcharges or additional costs will be allowed.  In determining the amount quoted by each contractor, the City shall disregard mathematical errors in addition, subtraction, multiplication, and division that appear obvious on the face of the Proposal. When such a mathematical error appears on the face of the Proposal, the City shall have the right to correct such error and to compute the total amount bid by said bidder on the basis of the corrected figure or figures.  When an item price is required to be set forth in the Proposal, and the total for the item set forth separately does not agree with a figure which is derived by multiplying the item price times the Project Manager's estimate of the quantity of work to be performed for said item, the item price shall prevail over the sum set forth as the total for the item unless, in the sole discretion of the City, such a procedure would be inconsistent with the policy of the bidding procedure. The total paid for each such item of work shall be based upon the item price and not the total price. Should the Proposal contain only total price for the item and the item price is omitted, the City shall determine the item price by dividing the total price for the item by the Project Manager's estimate of the estimated quantities of work to be performed as items of work. If the Proposal contains neither the item price nor the total price for the item, then it shall be deemed incomplete and the Proposal shall be disregarded. RFP: TREE PRUNING SERVICES P12151811011 June 20, 2012  Page26of31  Attachment 7 Equipment List Proposals must provide the following information regarding all equipment that will be readily available (within 24 hours) to complete this contract. Please enter the number of units for each specific piece of equipment listed below. If you do not have a specific unit listed below place a “0” (zero) in the space provided, do not leave blank. Chippers Make Size # of units Bucket Trucks Make/model Height # of units RFP: TREE PRUNING SERVICES P12151811011 June 20, 2012  Page27of31  Chipper Trucks Make Cubic Yards # of units Stump Grinders Make and Model Max Depth # of units Crane Make and Model Capacity # of units RFP: TREE PRUNING SERVICES P12151811011 June 20, 2012  Page28of31  Dump trucks Make and Model Cubic Yards # of units RFP: TREE PRUNING SERVICES P12151811011 June 20, 2012  Page29of31  Attachment 8 Relevant Work Experience In this section please provide information regarding your relevant experience and responsibilities on similar work or projects. In addition, the following form will allow you to fill out a listing of your previous work and current work commitments. Please include telephone numbers of personal references. References will be contacted as part of the selection process. Previous Contracts Name: City, State Government Municipality: Work Description: Similarities to the City of Sacramento: Terms of Contract: Reference Name: Agency: Phone Number: E-mail: RFP: TREE PRUNING SERVICES P12151811011 June 20, 2012  Page30of31  Current Contracts City, State Government Municipality: Work Description: Similarities to the City of Sacramento: Terms of Contract Reference Name: Agency: Phone Number: E-mail: RFP: TREE PRUNING SERVICES P12151811011 June 20, 2012  Page31of31  Attachment 9 Staffing ISA Certified tree Workers Name Certification # ISA Certified Arborists Name Certification # Sandra Talbott, Interim City Attorney Shirley Concolino, City Clerk Russell Fehr, City Treasurer John F. Shirey, City Manager City of Sacramento City Council 915 I Street, Sacramento, CA, 95814 www.CityofSacramento.org Meeting Date:8/14/2012 Report Type:Consent Title: Contract: Tree Pruning and Removal Services Report ID: 2012-00647 Location:Citywide Recommendation: Pass a Motion 1) awarding a one-year contract with two one-year renewal options to West Coast Arborist, Inc. for tree pruning and removal services in a total amount not to exceed $2,642,000 for a potential maximum three year term; and 2) authorizing the City Manager or the City Manager’s designee to execute the contract with West Coast Arborist, Inc. and exercise the renewal options specified above provided that sufficient funds are available in the budget adopted for the applicable fiscal year(s). Contact: Todd Martin, Operations General Supervisor, (916) 808-8074; Juan Montanez, Maintenance Services Manager, (916) 808-2254, Department of Public Works. Presenter: None Department: Public Works Department Division:Urban Forestry Dept ID:15001811 Attachments:_____________________________________________________________________________________________________________ 1- Description/Analysis 2 -Background 3 -West Coast Arborist Contract _________________________________________________________________________ City Attorney Review Approved as to Form Gerald Hicks 8/3/2012 9:56:44 AM City Treasurer Review Reviewed for Impact on Cash and Debt Russell Fehr 7/30/2012 9:49:10 AM Approvals/Acknowledgements Department Director or Designee: Jerry Way -8/1/2012 4:15:20 PM 1 of 578 8 Description/Analysis Issue:Contracted tree pruning and removal services supplement the work performed by City staff and are needed to address maintenance of the urban forest in an efficient and timely manner. The recommended contract will provide scheduled and emergency tree pruning and tree removal services. Policy Considerations:The recommendations in this report are consistent with City Code Section 3.56 and Resolution 2010-346 prohibiting the City from entering into any contract to purchase goods or services from any business or entity headquartered in Arizona. The Equal Benefits Ordinance and Living Wage Ordinance are applicable to this contract and the contractor has affirmed its intent to comply. Economic Impacts:None. Environmental Considerations: California Environmental Quality Act (CEQA): The current proposal involves the purchasing of tree pruning and removal services. This is not a ‘project’ and is not subject to Section 15378(b) (2) of the CEQA Guidelines. Therefore, as determined by the City’s Environmental Services Planning Manager, no environmental review is necessary. Sustainability Considerations: The current proposal is consistent with the Sustainability Master Plan goal to maintain and expand the urban forest. Other: None. Commission/Committee Action: None. Rationale for Recommendation:On June 20, 2012, the Maintenance Services Division of Public Works with the approval of the City Council released a Request for Proposal (RFP) to solicit qualified contractors to procure tree pruning and removal services. The City received three (3) proposals and the most qualified contractor was determined to be West Coast Arborist, Inc. A summary of the RFP process is provided in Background. Contracted tree pruning and removal services supplement the work performed by City staff and are needed to address the maintenance of the urban forest in an efficient and timely manner. The recommended contract will provide scheduled and emergency tree pruning and tree removal services. Financial Considerations:Funding for tree pruning and removal services is provided through Urban Forestry’s operating budget, provided by the City-wide Landscape and Lighting Assessment District. There is sufficient money in the FY2012/13 operating budget to purchase tree pruning and removal services. The extension of the contract for each of the additional contract years is subject to the funding availability in the adopted budget for the applicable fiscal year. The total contract amount over the three year term is based on an analysis of prior year 2 of 57 work orders and the anticipated city-wide maintenance needs of the urban forest including the aging English Elm tree population and a number of trees infected with Dutch elm disease. Emerging Small Business Development (ESBD): West Coast Arborist, Inc. is not certified as an emerging/small business enterprise. 3 of 57 Background On June 19, 2012, the City Council suspended competitive bidding for Tree Pruning Services and authorized staff to release a Request for Proposal (RFP) to solicit qualified contractors for the procurement of tree pruning and removal services. On June 20, 2012, the Maintenance Services Division of Public Works released a Request for Proposal (RFP) to solicit qualified contractors and received three (3) proposals from the following tree care service firms: West Coast Arborist, Inc.,George Salinas Tree Preservation,and The Grove Total Tree Care. Staff reviewed and evaluated the proposals. In addition, on July 18, 2012, staff interviewed all three firms. Based on a complete evaluation process using the following criteria which were established in the RFP process, West Coast Arborists, Inc. was selected as the most qualified contractor to provide tree pruning services. Selection Criteria 1.The relative value offered by each firm by means of competitive pricing. (Weighted 50%) 2.The firm’s relative capabilities,qualifications,and experience.(Weighted 25%) 3.Satisfactory references. Preference will be given to local government client references.(Weighted 25 %) 4 of 57 Pricing Proposal Tree Pruning Services Proposal 1 Proposal 2 Proposal 3 West Coast Arborists, Inc.The Grove Total Tree Care George Salinas Tree Pres. PRICING SECTION QTY Item Description UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE 1 Demand Pruning $ 49,000.00 $ 49,000.00 $ 134,870.00 $ 134,870.00 $ 55,650.00 $ 55,650.00 1 Program Pruning 346,500.00 346,500.00 706,500.00 706,500.00 412,500.00 412,500.00 1 Crown Reduction 49,000.00 49,000.00 1,270,075.00 1,270,075.00 94,500.00 94,500.00 1 Palm Pruning 32,675.00 32,675.00 251,100.00 251,100.00 29,875.00 29,875.00 1 Tree Removal to 6 Inches 237,500.00 237,500.00 250,000.00 250,000.00 336,450.00 336,450.00 1 Stump Grinding 104,000.00 104,000.00 67,875.00 67,875.00 86,250.00 86,250.00 1 Hourly Rate with 3 man Crew 39,900.00 39,900.00 20,350.00 20,350.00 30,000.00 30,000.00 1 Crane Services 22,000.00 22,000.00 87,500.00 87,500.00 20,000.00 20,000.00 Total $880,575.00 $2,788,270.00 $1,065,225.00 5 of 57 6 of 57 7 of 57 8 of 57 9 of 57 10 of 57 11 of 57 12 of 57 13 of 57 14 of 57 15 of 57 16 of 57 17 of 57 18 of 57 19 of 57 20 of 57 21 of 57 22 of 57 23 of 57 24 of 57 25 of 57 26 of 57 27 of 57 28 of 57 29 of 57 30 of 57 31 of 57 32 of 57 33 of 57 34 of 57 35 of 57 36 of 57 37 of 57 38 of 57 39 of 57 40 of 57 41 of 57 42 of 57 43 of 57 44 of 57 45 of 57 46 of 57 47 of 57 48 of 57 49 of 57 50 of 57 51 of 57 52 of 57 53 of 57 54 of 57 55 of 57 56 of 57 57 of 57 City of Palo Alto (ID # 3383) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/14/2013 City of Palo Alto Page 1 Summary Title: BAO and Biosolids Facility Plan Title: Adoption of a Budget Amendment Ordinance in the amount of $173,231 to Provide an Additional Appropriation for the Biosolids Facility Plan Project at the Regional Water Quality Control Plant (WQ-10001); and Approval of a Wastewater Treatment Enterprise Fund Contract with CH2M HILL Engineers, Inc. in a Total Amount Not to Exceed $421,678 for the Biosolids Facility Plan at the Regional Water Quality Control Plant-Capital Improvement Program WQ-10001 From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1. Adopt the Budget Amendment Ordinance in the amount of $173,231 (Attachment A) to transfer funds from CIP Project WQ-04011, Facility Condition Assessment and Retrofit and to provide an additional appropriation for the Biosolids Facility Plan Project at the Regional Water Quality Control Plant (WQ-10001); and 2. Approve and authorize the City Manager or his designee to execute the attached contract with CH2M HILL Engineers, Inc. (Attachment B) not to exceed amount of $421,678 for professional services for the Biosolids Facility Plan Project at the Regional Water Quality Control Plant - Capital Improvement Program Project WQ-10001; including $405,586 for basic services and $16,092 for additional services. City of Palo Alto Page 2 Discussion The Regional Water Quality Control Plant’s (Plant) sewage sludge incinerators were constructed in 1972. The incinerators have been in operation for 41 years. The incinerators treat the biosolids originating in Palo Alto, the owner and operator of the Plant, as well as from five partner agencies (i.e., Mountain View, Los Altos, Los Altos Hills, Stanford University, and the East Palo Alto Sanitary District). Treated biosolids are reduced to inert ash and hauled to a hazardous waste landfill in Beatty, Nevada. On July 2, 2012, Council accepted the Plant’s Long Range Facilities Plan (LRFP) (staff report ID # 2914). Council directed staff to: 1) prepare this Biosolids Facility Plan to finalize a biosolids treatment and disposal option; 2) retire the Plant’s incinerators as soon as practical; and 3) evaluate biosolids treatment options including potential yard trimmings, food scraps, and other organic treatment options arising from the Energy/Compost Facility evaluation. The final four options from the LRFP along with any viable biosolids treatment or disposal options arising from private company proposals in the Energy/Compost Facility RFP process (staff report ID # 3269) will be evaluated in the Biosolids Facility Plan. The Biosolids Facility Plan will allow for finalization of options developed in the LRFP. Staff expects to return to Council in February 2014 with a final recommendation on treatment and/or disposal options for biosolids, food waste, and yard trimmings. Retiring Incinerators The Biosolids Facility Plan is needed to determine the best option for the Plant’s next biosolids handling system. The City is one of two agencies still running a biosolids incinerator in California. Palo Alto incinerator retirement is being planned for 2019, when the incinerators will have been in service for 47 years. The incinerators are of an older generation and are not amenable for conversion to a renewable bioenergy facility that would recover energy from the biosolids. The Biosolids Facility Plan will evaluate anaerobic digestion and gasification options. The current incinerators are the largest source of greenhouse gas (GHG) emissions from City facilities. In contrast to incinerators, which release the City of Palo Alto Page 3 greenhouse gas carbon dioxide to atmosphere, gasification or anaerobic digestion convert carbon from the biosolids into renewable fuel. Additionally, staff expects the existing incinerators to have difficulty meeting future air regulations; the incinerators currently produce hazardous waste ash and are becoming more difficult to operate and maintain due to decreasing reliability. Biosolids Schedule A timeline of next steps for biosolids is shown below: Item Anticipated Completion Solids Technology/Disposal Recommendation in conjunction with Energy/Compost Facility to Council February 2014 Biosolids Facility Plan Completion July 2014 CEQA Environmental Review Fall 2015 Biosolids Facility Design 2017 Startup New Biosolids Facility 2019 Scope of Services Description Given the need to retire the incinerators, the LRFP narrowed down the solids handling options to four solutions: onsite anaerobic digestion, offsite anaerobic digestion at the San Jose/Santa Clara Water Pollution Control Plant, onsite gasification, and offsite gasification through a regional coalition of wastewater agencies [i.e., the Bay Area Biosolids to Energy coalition that Palo Alto joined on December 10, 2012 (staff report ID # 3254)]. Final evaluation of these options will be completed in the Biosolids Facility Plan. The Biosolids Facility Plan will identify a recommended solids handling treatment technology and disposal option for Council approval leading into the CEQA process, design, and construction. City of Palo Alto Page 4 The scope of work includes development of planning criteria, alternative screening and analysis, coordination with the Energy/Compost Facility evaluation, financial plans, community outreach, report completion, development of a scope of work for CEQA environmental review, and a predesign report for a biosolids dewatering/truck loadout facility. Summary of Solicitation Process Proposal Title/Number Consulting Services for Biosolids Facility Plan Project at the Regional Water Quality Control Plant - RFP No. 147733 Proposed Length of Project 18 months Number of Solicitations for Proposal mailed &/or emailed 7 Total Days to Respond to Proposal 41 Pre-proposal Meeting Date October 16, 2012 Number of Company Attendees at Pre-proposal Meeting 7 firms Number of Proposals Received: 3 Number of Companies Interviewed 3 Range of Proposal Amounts Submitted $400,000 to $466,426 Evaluation of Proposals An evaluation committee consisting of the Public Works Department Environmental Services Division staff reviewed the proposals. Three firms were invited to participate in oral interviews on November 16 and 19, 2012. The City of Palo Alto Page 5 committee carefully reviewed each firm's qualifications and submittal in response to the criteria identified in the RFP. 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. CH2M HILL Engineers, Inc. was selected because of its innovations, experienced project staffing, understanding of project requirements, relevant project experience, and knowledge of project solutions. Resource Impact The project is funded by the Wastewater Treatment Fund capital budget WQ- 10001. Partners will share in the planning and design costs. Funding in the amount of $173,231 from CIP Project WQ-04011, Facility Condition Assessment and Retrofit, will be transferred to CIP Project WQ-10001, Long Range Facilities Plan, via the attached Budget Amendment Ordinance (BAO). The additional funds from the BAO will cover the cost of the contract with CH2M HILL Engineers, Inc. There is no net change in the reserves of the Wastewater Treatment Fund. Funds needed to construct future replacement biosolids handling facilities will be provided by the Wastewater Treatment Fund; the estimated capital cost for a biosolids project in the LRFP ranged between $13 million and $89 million. The Wastewater Treatment Fund recovers costs from the Palo Alto Wastewater Collection Fund and from the City’s five partners. The Wastewater Treatment Fund’s debt service expenses are recovered through partner billing; the billing share is based on contract-defined flow capacity allocation. Funding of design and construction will likely require debt financing. The design and construction project will need to be approved by the Mountain View and Los Altos City Councils, Stanford University, and the Board of the East Palo Alto Sanitary District as part of an agreement requirement with each of the Plant partners. The agreement with Los Altos Hills does not require partner approval for the construction project. The partners are aware of the upcoming projects and the City continues to keep them informed of our progress. City of Palo Alto Page 6 Policy Implications Authorization of this project does not represent a change in existing policies. Environmental Review The Biosolids Facility Plan is exempt from review under the California Environmental Quality Act pursuant to Section 15262. A CEQA environmental review will be completed for any project resulting from the Biosolids Facility Plan. Attachments:  Attachment A: Budget Amendment Ordinance (DOC)  Attachment B: C13147733 Contract with CH2MHill (PDF) Attachment A ORDINANCE NO.xxxx ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 2013 TO PROVIDE AN ADDITIONAL APPROPRIATION OF $173,231 TO CAPITAL IMPROVEMENT PROGRAM PROJECT NUMBER WQ- 10001, LONG RANGE FACILITIES PLAN, FOR THE BIOSOLIDS FACILITY PLAN PROJECT 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 18, 2012 did adopt a budget for fiscal year 2013; and B. In fiscal years 2010, 2011 and 2013, the Council appropriated a total of $1,381,266 for CIP Project WQ-10001, Long Range Facilities Plan (previously named Plant Master Plan), to address capital replacement needs for existing plant facilities considering life-span, regulatory, land-use, economic, and environmental issues; and C. Included in CIP Project WQ-10001 is the biosolids facility plan to study alternatives to replace the sewage sludge incinerators with technologies such as anaerobic digestion, gasification, or regional solutions using similar technologies; and D. A Request for Proposal was solicited for consulting services for the biosolids facility plan. Bids were received from three qualified vendors and CH2M HILL Engineers, Inc. was selected with a bid of $405,586 for basic services, and $16,092 for additional services; and E. The available balance of $248,447 for CIP Project WQ- 10001 is not sufficient to cover the costs of the contract with CH2M HILL Engineers, Inc. An additional appropriation of $173,231 is needed; and F. Funding of $173,231 from CIP Project WQ-04011, Facility Condition Assessment and Retrofit, will be transferred to CIP Project WQ-10001, Long Range Facilities Plan. G. City Council authorization is needed to amend the 2013 budget as hereinafter set forth. SECTION 2. The sum of One Hundred Seventy-Three Thousand Two Hundred Thirty-One Dollars ($173,231) is hereby transferred from CIP Project WQ-04011, Facility Condition Assessment and Retrofit, to CIP Project WQ-10001, Long Range Facilities Plan. SECTION 3. The sum of One Hundred Seventy-Three Thousand Two Hundred Thirty-One Dollars ($173,231) is hereby appropriated to CIP Project WQ-10001, Long Range Facilities Plan, for the biosolids facility plan. SECTION 4. As specified in Section 2.28.080(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 5. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. SECTION 6. The biosolids facility plan is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15262. A CEQA environmental review will be completed for any project resulting from the biosolids facility plan. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: APPROVED: ______________________________ ________________________________ City Clerk Mayor APPROVED AS TO FORM: ________________________________ City Manager ______________________________ ________________________________ Senior Assistant City Attorney Director of Public Works ____________________________________ Director of Administrative Services Professional Services Rev. June 2, 2010 1 CITY OF PALO ALTO CONTRACT NO. C13147733 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND CH2M HILL ENGINEERS FOR PROFESSIONAL SERVICES This Agreement is entered into on this 14th day of January, 2013, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and CH2M HILL ENGINEERS, INC. (CH2M HILL), a Corporation, located at 1737 North 1st Street, Suite 300, San Jose, CA 95112 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to develop a plan to retire the city's 40 year old sewage sludge incinerators at the Palo Alto Regional Water Quality Control Plant (“Project”) and desires to engage a consultant to evaluate onsite and regional biosolids handling solutions, advise staff, and report on recommendations 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. 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. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit “B”, attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of Professional Services Rev. June 2, 2010 2 U:\John_Purch\PW Environmental Services Division\147733 Biosolids Facility Plan\147733 Contract with CH2MHill.doc 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 four hundred and five thousand five hundred and eighty-six dollars ($405,586.00). In the event Additional Services are authorized, the total compensation for services and reimbursable expenses shall not exceed sixteen thousand and ninety-two dollars ($16,092.00). The applicable rates and schedule of payment are set out in Exhibit “C-1”, 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 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 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-1”). 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 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 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. Professional Services Rev. June 2, 2010 3 U:\John_Purch\PW Environmental Services Division\147733 Biosolids Facility Plan\147733 Contract with CH2MHill.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 CONSULTANT has prepared plans and specifications or other design documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of construction 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 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 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. Option A: No Subcontractor: 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. Option 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: 1. RMC Water and Environment 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 David Green as the Project Manager to have supervisory responsibility for the performance, progress, and execution of Professional Services Rev. June 2, 2010 3 U:\John_Purch\PW Environmental Services Division\147733 Biosolids Facility Plan\147733 Contract with CH2MHill.doc the Services and during the day-to-day work on the Project. If circumstances cause the substitution of the project manager or any other key personnel for any reason, the appointment of a substitute project manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. The City’s project manager is James Allen, Public Works Department, Environmental Services Division, Water Quality Control Plant, 2501 Embarcadero Way, Palo Alto, CA 94303, Telephone: 650-329-2243. 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 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. [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. [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 Professional Services Rev. June 2, 2010 5 U:\John_Purch\PW Environmental Services Division\147733 Biosolids Facility Plan\147733 Contract with CH2MHill.doc 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 of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be 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 Professional Services Rev. June 2, 2010 6 U:\John_Purch\PW Environmental Services Division\147733 Biosolids Facility Plan\147733 Contract with CH2MHill.doc 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 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 of his/her 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 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 and Project Manager To CONSULTANT: Attention of the project manager at the address of CONSULTANT recited above Professional Services Rev. June 2, 2010 7 U:\John_Purch\PW Environmental Services Division\147733 Biosolids Facility Plan\147733 Contract with CH2MHill.doc SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will 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. 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 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 Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of the City’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, Consultant shall comply with the following zero waste requirements:  All printed materials provided by Consultant to City generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by the City’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable based inks.  Goods purchased by 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 Professional Services Rev. June 2, 2010 8 U:\John_Purch\PW Environmental Services Division\147733 Biosolids Facility Plan\147733 Contract with CH2MHill.doc 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 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 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 or in the Professional Services Rev. June 2, 2010 9 U:\John_Purch\PW Environmental Services Division\147733 Biosolids Facility Plan\147733 Contract with CH2MHill.doc security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City’s express written consent. / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / Professional Services Rev. June 2, 2010 11 U:\John_Purch\PW Environmental Services Division\147733 Biosolids Facility Plan\147733 Contract with CH2MHill.doc EXHIBIT “A” SCOPE OF SERVICES 1    Scope of Work Professional Services for the Biosolids Facility Plan City of Palo Alto RFP Number 147733 Introduction This scope of work modifies and reflects the scope of work from the REQUEST FOR PROPOSAL (RFP) NUMBER 147733 FOR PROFESSIONAL SERVICES for the BIOSOLIDS FACILITY PLAN (BFP) at the Regional Water Quality Control Plant (RWQCP). The tasks included in this scope incorporate the design criteria identified in RFP Number 147733. The biosolids options identified in RFP Number 147733 (4 hauling options and 4 onsite options) are incorporated into Task 3 – Screen for Viable Alternatives, below. Task 1 – Kickoff Meeting, Chartering, and Values Definition City and CONSULTANT will hold a kickoff meeting. The CONSULTANT will prepare and distribute the kickoff meeting agenda and the meeting summary. Task 1 will create a Working Group (involved with day-to-day decisions and project reviews) as well as a Steering Team (made up of City and Consultant staff that will provide periodic review and work to represent the various stakeholder groups).  Project team/attendee introductions  Project organization and communications o Formation of Working Group and Steering Team  Summary of workplan and goals for the project o Develop/Refine Values, Goals and Objectives  Key project issues  CONSULTANT’s informational needs o Coordinate with ARI – identify ARI needs for E/C RFP and evaluation process o Identify initial data needs  Project schedule and key schedule factors. Communicate to the attendees anything the project team needs to know to keep the project moving on budget and on schedule. Assumptions: Assume one meeting with travel for Project Manager, Assistant Project Manager, Technical Lead, and Biosolids Expert. Deliverable: Kickoff meeting, agenda, (draft and final) meeting summary Task 2 – Develop and Define Planning Criteria The purpose of this task is to assemble the planning criteria needed for evaluating options and comparing alternative technologies. Assume that draft chapters/tech memos will be developed for CITY review prior to holding a single workshop to review all the planning criteria developed in Task 2. 2.1 Characterization of Biosolids The purpose of this sub task is to assemble the data needed for evaluating options and comparing alternative technologies. These data include current and projected quantities. Projections will be made from current levels through 2048. 2    2.1.1 Compile relevant data for alternative analysis including:  Sizing criteria for facilities: Peak and average day and month incinerator inflow solids tonnage (wet/dry) and percent solids  Hauling contract analysis/contract operator options: Annual average sludge tonnage (wet / dry)  O&M Unit costs (update and expand these costs, as needed, from LRFP Appendix M, Table 8)  Fats, oils, grease characteristics and loading assumptions  Plant Electricity Use  Plant Natural Gas Use 2.1.2 Determine sludge loadings. The values from the LRFP are conservative and will need to be modified for population forecasts that differ from ABAG 2009 Projections. Assumptions: Assume that data necessary for this task is readily available. CONSULTANT will provide CITY with a detailed data request, including a request for flow and load data. CITY will collect and provide data necessary to characterize biosolids. CONSULTANT will rely on data and projections from the LRFP, as well as direction from the CITY in regards to the range of alternative growth projections. CONSULTANT will review and advise CITY on data and projections provided. Assume that the range of growth projections are similar to that being used in the ARI vendor proposals (70-100% of the ABAG projections). Assume that variability in growth projections does not alter the base planning criteria nor the alternatives evaluation criteria. A sensitivity analysis will be conducted after selection of the preferred alternative to determine the impact and/or timing of improvements. Deliverable: Completed chapter, (draft and final) 2.2 – Regulatory and Environmental Criteria Building on the work in the LRFP, the CONSULTANT will identify and evaluate relevant federal, state, and local regulations, permits, and ordinances. Both current and likely future regulations should be evaluated for air, water, and solids. The impact analysis shall analyze risk factors, short-term/long-term issues in decision making, what-if scenarios, and probabilities associated with potential future requirements. As regulatory action evolves over time, the CONSULTANT shall help Plant staff envision long term possibilities for treatment and sludge disposal, trade-offs, and decision making issues. CITY shall provide CONSULTANT with copies of local regulations that are pertinent to the BFP. Deliverable: Completed chapter (draft and final) 2.3 – Other Environmental, Partnership, and Community Criteria The purpose of this task is to identify other criteria that are critical to conducting the Biosolids Facilities Plan – both nonmonetary criteria and criteria that can be monetized – and with the Working Group and the Steering Team on relevant criteria and how they’ll be applied to developing and evaluating the biosolids alternatives. 3    As part of this task, CONSULTANT will define the current status of potential partner agencies, the current status of their biosolids projects, and their potential/interest in partnering with the Palo Alto RWQCP. As part of this task, CONSULTANT will define the available/potential outside funding opportunities and incentive programs that might be applicable to the biosolids-oriented alternatives. (Formerly Task 6.1 in the RFP.) Deliverable: Completed chapter (draft and final)  2.4 – Definition of Alternatives Evaluation Process, Key Criteria, and Decision Process The purpose of this task is to develop the evaluation process, summarize key criteria (developed in the subtasks above), and define the Decision Process to be used to conduct the Biosolids Facilities Plan. As part of this task, CONSULTANT will provide typical hauling contracts for staff use; CONSULTANT will advise on key contract terms. CONSULTANT will advise, by tech memo, on diversification recommendations and risks for sludge disposal options. (Formerly Task 4.3 in the RFP) 2.4.1 Develop criteria for screening viable alternatives and review the criteria and screening process (to be used in Task 3) with the Working Group and the Steering Team 2.4.2 Finalize alternatives evaluation criteria (to be used in Task 4 for the Most Viable Alternatives) with CITY, noting need for consistency with the evaluation criteria established in the E/C Facility RFP. (Formerly Task 4.4 in the RFP) Effort for a single Workshop to review evaluation criteria and other planning criteria is included in this scope item. At a minimum, evaluation criteria and methodology will be as listed below. CITY and CONSULTANT may add additional criteria, or modify, as necessary. Evaluation criteria should include, but are not limited to:  KEY Criteria: Costs o Life cycle NPV (30 year analysis for 2019-2049) o Capital Cost o Debt Service Values with City financing 20-year SRF Load 30-year Water Revenue Bond o Hauling Contract Costs o Disposal Costs o Plant O&M Costs o Offsetting energy or other revenues o Outside funding possibilities  KEY Criteria: Risk Analysis including technical feasibility, contractual risks, technology track record, and implementation complexity  KEY Criteria: Energy Use and Production  KEY Criteria: Size of facility / footprint 4     KEY Criteria: Environmental considerations, GHG analysis, and carbon footprint impacts  KEY Criteria: Community impacts: traffic, odors, noise, and aesthetics.  KEY Criteria: Qualifications of private company providing service, as applicable  Secondary Criteria o Operational Changes to operational staffing levels Redundancy, reliability, longevity Ease of operation and safety Ease of maintenance Treatment capacity and scalability to future sludge loads Reliability and technology readiness level for Palo Alto o Impacts on adjacent land uses (e.g. visual, odors, height, noise, traffic, etc.) o Constructability o Other differentiators Assumptions: Assume one meeting with travel for Project Manager, Assistant Project Manager, and Technical Lead. Deliverable: Completed chapter (draft and final), Workshop with Meeting Summary notes  Task 3 – Screen for Viable Alternatives The purpose of this task is to review the possible alternatives for Biosolids-only solutions and screen those alternatives to create a list of the most viable alternatives (up to 5) which will then be carried into the full Alternatives Evaluation task (Task 4). Utilize the screening process developed above (Task 2.4.1) to screen the following alternatives:  Hauling options 1 through 5 listed in the RFP  Onsite gasification options 1 and 2 listed in the RFP (pending outcome of Subtask 3.1)  Onsite anaerobic digestion options 3 and 4 listed in the RFP coupled with hauling options 1 through 4  The “no project” scenario (for CEQA and SRF Funding analyses) (as required in Task 4 in the RFP).  Other options identified in Subtask 3.2 below. 3.1 Screen Gasification Technology for Biosolids (previously Task 4.2.2 in the RFP) Prepare a technical memorandum recommending whether a biosolids only gasification / pyrolysis technology can be recommended at the highest level for approval as (a) ready for implementation, (b) ready at full scale with no other disposal options, (c) suitably reliable, and (d) adequately proven for use in federal, state, and local regulatory environments. Palo Alto is supporting the pilot scale gasification system at San José/Santa Clara WPCP should Harvest Power proceed with construction. If the City of San Jose does not recommend this technology in their tech memo for Palo Alto and CITY concurs with these findings, then the overall alternative analysis will not include gasification / pyrolysis analysis unless it is a vendor proposal. 5    3.2 Identify other alternatives not identified in the RFP that may provide benefits comparable or superior to the options identified in the RFP (up to 4). These may include anaerobic digestion with thermal hydrolysis pretreatment, thermal drying, or additional hauling/partnership opportunities. 3.3 Screening Workshop This screening effort will be conducted during a four hour workshop with the following information available prior to the workshop:  Biosolids Characteristics/Criteria  Regulatory criteria  Outside Funding/incentive opportunities  Gasification Technical Memorandum  Definition of evaluation process Assumptions: Assume one meeting with travel for Project Manager, Assistant Project Manager, Technical Lead, and Biosolids Expert. Assume additional technical resources are available via conference call or video conference. Deliverable: (Draft and Final) Technical Memorandum Identifying the 5 Most Viable Alternatives that move forward to Task 4 and documenting the Screening process Workshop with Meeting Summary notes Task 4 – Alternative Analysis Assume that up to 5 Alternatives are carried forward from Task 3. Task 4.1 – Evaluate Biosolids-Only Alternatives The BFP timeframe will be 30 years. Except for Hauling and Disposal Option 1 to 3 (as listed in the RFP), the operational start year will be 2019 and the CONSULTANT will perform a life- cycle analysis ending in 2049. Many options include 20-year contracts (e.g., from vendors, Bay Area Biosolids -to- Energy (BAB2E), San José/Santa Clara Water Pollution Control Plant, gasifier owner/operators, etc.) and the CONSULTANT shall assume those contracts/bids are renewed and extended for the full 30-year life of a facility. For contract operated options, assume a 20-year contract with capital repairs made in year 20 to extend the facility to a 30-year life; CONSULTANT will determine these mid-life capital repair costs for the alternative analysis. The options (except for Option 2 in the RFP) shall be evaluated on a 30-year life cycle basis. The list of options in the RFP reflects numerous base options on a 30-year life cycle, one hybrid option involving early implementation and deferral of long-term contracts/costs, and potential additional options from the Energy / Compost Facility Evaluation. The four hauling and disposal options listed in the RFP only need one capital improvement project involving the Dewatering Facility / Truck Loading Facility supplemented by various options of hauling/disposal. The onsite options need more extensive onsite capital improvement in addition to the Dewatering Facility / Truck Loading facilities and various hauling options. The dewatering and truck loading facilities are common to all options, however the location is either at the WQCP or at the 10-acre site. 6    (From Task 4.2.2 in the RFP) Provide sound technical analysis, evaluate the above alternatives and present findings to CITY staff in a clear way, based on criteria discussed below. Provide all backup spreadsheets for CITY staff analysis. Prepare an analysis of the alternatives in such a way that staff can receive community input (e.g., easy to understand graphics) at a public meeting. Assumptions: Assume one meeting with travel for Project Manager, Assistant Project Manager, and Technical Lead. Deliverable: Chapter (draft and final) describing the evaluation results and Recommended ‘Biosolids-only’ alternative Workshop with Meeting Summary notes Task 4.2 Recommend a dewatering approach for the Recommended ‘Biosolids-only’ alternative Provide a brief technical memorandum recommending a dewatering approach (i.e., centrifuge, belt filter presses, screw press, rotary press, or plate and frame filter) for the dewatering facility. Deliverable: Technical Memorandum on dewatering approach (draft and final) Task 5 - Coordinate with ARI and evaluate biosolids-related vendor proposals resulting from the Energy /Compost Facility RFP Alternative Resources, Inc. (ARI) is the consultant managing the Energy/Compost (E/C) Facility RFP vendor solicitation process for the CITY. The purpose of this task is to coordinate with ARI to achieve consistency of evaluation and biosolids criteria between the Biosolids and E/C alternatives, and to work alongside the CITY and ARI to develop an integrated biosolids and organics strategy for Palo Alto. 5.1 – Coordination with Energy / Compost (E/C) Facility Evaluation Consultant ARI Alternative Resources, Inc. (ARI) is the consultant managing the RFP vendor solicitation process. The Consultant will be expected to take initiative to work closely with ARI. Consultant will share technical analysis and evaluation criteria and other information critical to the integrated work. General Coordination:  Coordinate (by conference call) with ARI consultants about the Energy / Compost Facility Evaluation and vendor proposals.  Provide draft copies of reports to ARI when City staff receive draft documents, to facilitate coordination. Alternative Analysis Coordination:  Provide quantities of biogas from onsite options that may be used in a shared gas handling system.  Coordinate evaluation criteria. Deliverable: Technical Memorandum on alternatives evaluation to be integrated into ARI’s documentation (draft and final) 7    5.2 Evaluate Vendor Proposals The purpose of this subtask is to evaluate the biosolids-related vendor proposals resulting from the E/C Facility RFP to determine the technical viability and readiness. Consultant will support analysis of green waste and food waste treatment options as they relate to the use of biosolids and process gas handling. Assume that ARI will be leading the review of the proposals and that ARI is evaluating the proposals for conformance to the RFP requirements (including financial stability, acceptable contractual terms, etc.). Consultant will support ARI with the technical review of the E/C proposals that relate to the use of biosolids. Based on criteria agreed upon with City staff, the Consultant will again go through a two-step process:  Screen all proposals to identify those that are technically viable  Evaluate the remaining proposals for costs and comparison to the ‘biosolids-only proposals. The objective of Consultant’s work will be to provide recommendations (and raise concerns) about technical issues, reliability and viability of proposed technologies, and suitability for Palo Alto. Consultant will also reconcile differences in alternatives evaluation approach in vendor proposals with Biosolids-only alternatives. The intent of the reconciliation process is to determine a side-by-side analysis of all the alternatives being considered. Consultant will provide analysis for Biosolids-only alternatives developed in Task 4 and work with ARI with the objective of determining the optimal Integrated Organics Waste Option. CONSULTANT will:  Review vendor proposals (provided by CITY from ARI) for biosolids management.  Provide findings of review to ARI and CITY staff about recommended options for side- by-side evaluation along with preset baseline options in Task 4. Assumptions:  It is expected that most biosolids options will be either wet anaerobic digestion or gasification and covered by onsite options 2 and 4 (from Task 4, Item 11 in the RFP)  The evaluation will include cost and O&M in analysis for capital facilities at WQCP site to store, blend, transport, and meter dilute sludge, sludge cake, scum, and/or bio-gas to E/C Facility for further processing by E/C Facility vendor solution(s). (from Task 4, Item 11 in the RFP)  No workshop budgeted – review comments will be forwarded to CITY and ARI. Deliverable: (draft and final)Chapter on screening process, evaluation results, and comparison to Biosolids Only solutions (from Task 4) 8    Task 6 – Financial Plans CONSULTANT will prepare the BFP in a way that maximizes financial benefits to the CITY. Financial planning work will only be conducted for one Recommended Alternative from Task 4. Task 6.1 The BFP alternative analysis and report shall be completed in a manner that meets the requirements of the SWRCB Division of Financial Assistance’s Clean Water State Revolving Fund program requirements for an SRF loan. The BFP report will serve as the facilities planning document to meet the program requirements of an SRF loan approval process. At a minimum include the following: 1. A cost-effectiveness evaluation of alternative project concepts. 2. An estimate of the total capital costs and annual operation and maintenance costs. 3. A map of the service area. 4. A written record of the required public meeting. 5. A discussion of the selected alternative that includes the following: • A detailed description of the selected alternative. • A statement of the relevant design criteria. • The estimated construction cost and annual operation and maintenance cost, and a description of how the local costs will be financed. • Dedication of an identified source of revenue to repay the loan (this will be done later by council resolution, report can simply mention it) • A discussion of the non-monetary benefits of the project. • A discussion of any interagency service agreements necessary to construct, operate, and maintain the system. 6. An implementation schedule for completion of the project. 7. A construction financial plan (year by year expenditures and finances) Task 6.2 Because the decision on project financing has not yet been made, the CONSULTANT will show debt service values for both an SRF loan, debt service values for a water revenue bond, or private contractor tipping and per ton fees. Private contracts will be 20-year term with two 5-year extensions on mutually agreeable terms, for a total potential contract of 30-years. Task 7 – Community Outreach The Community Outreach effort is an important part of the planning process. Outreach will be conducted with public, partner staff, and elected officials. Staff has already received substantial community input during the LRFP. The CITY desires ongoing input from the community to continue informing the decision making process. The purpose of this task is for the CONSULTANT to provide technical support to the Community Outreach effort. CITY staff will be responsible for organizing and conducting the community meetings. The CONSULTANT will attend the meetings to support City staff on technical, regulatory or community/environmental matters. The CONSULTANT’s primary involvement in the Community Outreach effort will be to 9    1) perform technical, regulatory and community/environmental analyses to prepare for the Community Outreach effort, 2) prepare slides, handouts and/or other materials for the community meetings, including adjustments to graphics and tables used in the BFP, and 3) during the outreach process, perform additional technical, regulatory and/or community/environmental analyses to support the ongoing community meetings. Presentations to Boards or Councils will be given by CITY staff with Q&A assistance by the CONSULTANT. 7.1 The CONSULTANT should assume involvement in the following meetings: 7.2 Assist CITY staff in developing and maintaining a project website. CITY staff will take the lead in developing and maintaining the website, with the CONSULTANT’s effort expected to be limited to preparing text and graphics of a more technical nature for uploading to the website. The website will be active the duration of the project. 7.3 Summarize the community outreach process and results in an appendix of the Final Report. Assumptions: Assume up to five meeting with travel for Project Manager, and/or other project team members who attend. Deliverables: Materials and handouts for community meetings  Summary of community meetings  Materials for CITY developed and maintained website  Presentation materials for City Council and partner agency meetings Timeframe Type of Meeting Consultant Expected to Attend Expectation Jan 14, 2013 Palo Alto Council Meeting Study Session on E/C Facility RFP and Landfill Capping Issues No stay informed with project manager Spring 2013 Community Meeting Input on Organics Resource & Recovery Strategy No stay informed with project manager Spring 2013 E/C Facility RFP Community Meeting on E/C No stay informed with project manager End of 2013 Facility RFP Proposals and Biosolids Facility Plan Technology and Disposal Solutions Yes Technical assistance; premeeting review of presentation Feb 2014 Palo Alto Council Meeting Final Biosolids, Green Waste, and Food Waste Recommendations Yes Technical assistance; premeeting review of presentation TBD Partner Council Meeting Yes Technical assistance TBD Community Meeting Yes Technical assistance TBD 2nd Palo Alto Council Meeting Yes Technical assistance   10     Summary of the Community Outreach process. Task 8 – BFP Report The BFP will encompass a 30 year time period ending in the year 2049. The City will print the final report. The BFP Report (report) will have text and graphics covering all the elements of this study, generally including the following elements:  Standalone Summary Report for use with community and Council presentations  Main Report (preliminary outline) o Executive Summary o Introduction o Waste Characterization and Loads o Regulatory Issues o Alternative Evaluation o Recommendations o Financial Details o Appendices 1. Meeting presentations 2. Tech memos  Graphics: Graphics shall be adaptable to use in PowerPoint presentations by City staff  For printing of reports, provide electronic versions. Assume CITY will pay for reprographics and coordinate production o Reports will be electronically transmitted o Report will be a clean PDF without scanning graphics o Report will also be a Microsoft Word version with graphics o Report will be suitable for web posting and forwarding via email o Use of color in report is to be limited to essential graphics and tables to reduce printing costs; use of ledger size drawings shall be only where useful o Provide City staff a proof copy for the printer to match transmitted PDF copy o The proof copy of the report is to be organized and tabbed Assumptions: 1. Assume that existing survey and geotech information is adequate, and available for this work. 2. Assume that City standards for demolition/salvage are provided. Deliverables  Completed chapters  Administrative Draft Report (available to city staff and partner staff)  Interim Draft Report (available to public for comment)  Final Draft Report (available to Council for review)  Summary Report (standalone summary for use with elected officials and public meetings)  Final Report Task 9 – Project Management 11    CONSULTANT will provide necessary administration, project accounting, meeting summaries, proper invoicing, budget control, project controls, quality assurance and reviews, and professional oversight of the project. Project staffing shall be maintained at acceptable levels to keep the project on schedule, ensure continuity of information, and satisfy the requirements of the scope of work. 9.1 Project Schedule:  Prepare a baseline project schedule with milestones, and update regularly. 9.2 Project Progress Meetings: Biweekly progress meetings will be held via teleconference. CONSULTANT will provide call-in information. The meetings will generally be as follows.  Agenda driven  The CONSULTANT will lead the meetings.  The CONSULTANT will prepare the meeting summaries in a format acceptable to the CITY and distribute them via email. 9.3 Submit invoices monthly. 9.3.1 Submit a draft of invoice format for CITY review prior to submitting the first invoice. The invoice shall itemize, by task, a) the person and/or staff job classification, b) hourly rate, c) subconsultant fees, d) reimbursable costs (itemized by type), and e) Consultants markup. 9.3.2 The invoice package shall contain the following:  Subconsultant and/or materials invoices, and any other backup which clarifies charges.  Updated project schedule (if needed).  Monthly Progress Report: Brief descriptions of work performed and milestones accomplished, organized by task. Task 10 – Scope of Work for CEQA Environmental Review It is anticipated that a California Environmental Quality Act (CEQA) analysis will be prepared in conjunction with the BFP. The CEQA analysis would be done via contract amendment, or as a separate project, and is expected to start before the BFP project is finished. The CONSULTANT shall prepare the Scope of Work for the CEQA review. The CONSULTANT will work with Plant staff to coordinate with the City Planning Department and the City Attorney’s Office to determine the level of CEQA review required (ND, MND, or EIR) and the planned/recommended facilities to be included in the CEQA review. The finished Scope of Work shall be in a form such that it can be directly included in a Request for Proposals, describing in detail all the work involved in preparing the CEQA document and the deliverables required. Expect three meetings with City attorneys and three meetings with City planners by conference call. It should be noted that a preliminary CEQA checklist is being prepared by ARI in regard to the E/C facility. That document will be available in the Fall of 2012. Assumptions: Meetings are by conference call. 12    Deliverable: A Technical Memorandum generally describing the major issues for the environmental review, with an attached Scope of Work for the CEQA analysis. 5 hardcopies and the Word file(s) Task 11 – Dewatering Facility / Truck Loadout Facility at WQCP: Predesign Create a predesign report for a dewatering facility and truck loadout facility. The predesign report shall include:  Predesign cost estimate  Basic process piping site plan with key yard piping identified  Basic process piping and layout drawing for the new facility  Building plan and elevation and key structural components  Odor control plan  Truck loading requirements (turning, exhaust, etc.)  Preliminary P&ID  Equipment type recommendations  Sizing for: o scum concentrator o dewatering equipment o polymer system o conveyors o pumps o storage units o sludge and scum loadout system o HVAC o electrical 12kV load center o backup diesel generator o MCC  A demolition narrative and facility relocation, reuse, and salvaging requirements  A narrative on automation, control, and SCADA strategy  Industry standard information for a predesign report Assumptions: 1. Assume that existing survey and geotech information is adequate, and available for this work. 2. Assume that City standards for demolition/salvage are provided. Deliverable: Electronic transmission of completed predesign report in PDF (with Word files), with customary PDF drawings. Report shall be for easy re-distribution or download. ADDITIONAL ASSUMPTIONS 1. The CONSULTANT will provide draft meeting summaries and draft technical memoranda for review by the CITY. CITY staff will collect, organize and adjudicate CITY review comments and provide those to CONSULTANT in one consolidated document. CONSULTANT will then finalize document and document CONSULTANT’S response to CITY review comments. 13    2. Deliverables will be in electronic pdf format with Word files made available. TASK 12 - ADDITIONAL SERVICES The CITY may elect to have the CONSULTANT perform any or all of the following additional services. The CONSULTANT shall perform these services only if pre-authorized in writing by the CITY Project Manager. For each item (i.e. the deliverable), provide a skeletal approach and/or work plan with assumptions, an estimate of the cost of service and an hourly rate sheet in your proposal. 1. Additional meetings (community meetings or working meetings), graphics, hard copies of deliverables, or other miscellaneous unforeseen expenses. 2. Additional alternative evaluation work 3. Additional work associated with Pre-design Professional Services Rev. June 2, 2010 12 U:\John_Purch\PW Environmental Services Division\147733 Biosolids Facility Plan\147733 Contract with CH2MHill.doc EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone by the date specified below. The date 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. Milestones Completion Date 1. Agreement on best biosolids alternative November 2013 2. Completed decision model based on E/C evaluation November 2013 3. Palo Alto Council Meeting Presenting Recommendation February 2014 4. Final Biosolids Facility Plan Report June 30, 2014 Professional Services Rev. June 2, 2010 14 U:\John_Purch\PW Environmental Services Division\147733 Biosolids Facility Plan\147733 Contract with CH2MHill.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-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 $405,586.00. 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 $16,092.00. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, does not exceed $405,586.00 and the total compensation for Additional Services does not exceed $16,092.00. TASK NOT TO EXCEED AMOUNT Task 1 Meetings and Administration $18,985.00 Task 2 Develop and Define Planning Criteria $47,840.00 Task 3 Screen for Viable Alternatives $44,482.00 Task 4 Alternative Analysis $82,122.00 Task 5 Coordination with Energy / Compost Facility Evaluation Consultant $34,026.00 Task 6 Financial Plans $15,918.00 Task 7 Community Outreach $41,475.00 Task 8 Biosolids Facility Plan Report $33,659.00 Task 9 Project Management $45,050.00 Task 10 Scope of Work for CEQA Environmental Review $10,420.00 Task 11 Dewatering / Truck Loadout Facility Predesign Report $31,609.00 Sub-total Basic Services $405,586.00 Additional Services (Not to Exceed) $16,092.00 Maximum Total Compensation $421,678.00 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. Professional Services Rev. June 2, 2010 15 U:\John_Purch\PW Environmental Services Division\147733 Biosolids Facility Plan\147733 Contract with CH2MHill.doc A. Travel shall be reimbursed at actual cost without markup.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. Delivery costs, outside printing, 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-1. 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: 1. Additional meetings with the community 2. Additional working meetings Professional Services Rev June 2, 2010 18 U:\John_Purch\PW Environmental Services Division\147733 Biosolids Facility Plan\147733 Contract with CH2MHill.doc EXHIBIT “C-1” HOURLY RATE SCHEDULE See attached CH2M HILL rate schedule. EXHIBIT C-1 - HOURLY RATE SCHEDULE PALO ALTO BIOSOLIDS FACILITY PLAN RFP #147733 CH2M HILL Person Role Hourly Rate Dave Green Project Manager $249.00 Susan Dennis Asst. Project Manager $236.00 Dru Whitlock Technical Lead $205.00 Peter Burrowes Biogassification Expert $268.00 Tom Kraemer Integrated Waste Expert $249.00 Steve Jenkins Integrated Waste Expert-Gasification $249.00 Dave Oerke Dewatering Expert $249.00 Todd Williams Composting Expert $249.00 Tim Bauer Biosolids Drying Expert $205.00 Brett Riestead Mechanical Lead $176.00 Scott Cowden Odor Control Expert $205.00 Robert Lawson Cost Estimating Lead $205.00 Kathy Rosinski Sr. Professional II $196.00 TBD - design Project Professional 1 $152.00 TBD - design Engineering Technician $148.00 Leswin D'Cunha Staff Engineer $129.00 Meagan L-Bishop Editor $110.00 Administration Project Assistant $88.00 Project Accounting Project Accountant $88.00 RMC Person Role Hourly Rate David Richardson Financial Lead $265.00 Natalie Sierra Regulatory Lead $200.00 Marc Nakamoto Technical Analysis Lead $219.00 Robin Cort Environmental/CEQA Lead $225.00 Administration Admin and Graphics and Accounting $95.00 1. Rates include, direct labor costs, overhead rate elements and fee. 2. Rates are valid through June 30, 2014 3. Subconsultant rates do not include mark-ups Professional Services Rev June 2, 2010 19 U:\John_Purch\PW Environmental Services Division\147733 Biosolids Facility Plan\147733 Contract with CH2MHill.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 WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: MINIMUM LIMITS REQUIRED TYPE OF COVERAGE REQUIREMENT EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $2,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. CITY APPROVES CH2M HILL’S PROFESSIONAL LIABILITY DEDUCTIBLE OF $750,000 AND COMMERICAL GENERAL LIABILITY DEDUCTIBLE OF $500,000, WHICH EXCEED THE CITY’S STANDARD $5,000 DEDUCTIBLE REQUIREMENT. 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 Professional Services Rev June 2, 2010 20 U:\John_Purch\PW Environmental Services Division\147733 Biosolids Facility Plan\147733 Contract with CH2MHill.doc INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303 City of Palo Alto (ID # 3391) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/14/2013 City of Palo Alto Page 1 Summary Title: FY 2013 COPS Grant Title: Approval of the Acceptance and Expenditure of Citizens Options for Public Safety (COPS) Funds on Various Law Enforcement Equipment From: City Manager Lead Department: Police Recommendation Staff recommends that Council approve the acceptance and expenditure of Citizens Options for Public Safety (COPS) funds in the amount of $105,397 and the approval of the expenditure of an additional $87,803 in prior year’s COPS funds for the purchase of Tactical Thermal Binoculars, Replacement Electronic Control Devices (Tasers), Two-way Authentication Equipment, Cell Phone Analyzer Equipment, Crime Prevention Software, Additional Equipment for the Designated Rifle Officer Program, a Crisis Negotiation Team Phone Console, and a Law Enforcement Personnel Training System. Background Since 1997, the California State Budget Act has included allocations to counties and cities for the COPS program. This funding is intended to fill the need for additional resources at the local level to ensure public safety. Under the provisions of Government Code Section 30061, a percentage of the funds are allocated to counties and cities, based upon population, for law enforcement services. Funds must supplement existing services and cannot be used to supplant any existing funds. Each city is also required to deposit the funds into a separate SLESF so that these funds are not intermingled with General Fund dollars. Previous uses of COPS funds have included the purchase of a replacement K-9 unit, crime scene evidence collection vehicle, safety equipment, surveillance equipment, evidence collection equipment, mobile data terminals, youth program activities, upgrades to the telecommunications infrastructure, upgrades to the patrol vehicle and traffic motorcycle programs, an additional sergeant position for the Special Problems Team, and a Captain position and associated training to assist in the City’s homeland security efforts. Last year, City of Palo Alto Page 2 Council approved COPS funding for the purchase of replacement firearms, firearm instructor hearing protection, interview recording system, encrypted jump drives, and property and evidence operational and security improvements. The Police Department has received funds each year under this program since its inception in 1998. Annual allocations have averaged $100,000 over the last few years. Discussion Staff proposes to use COPS funds in the following manner: Tactical Thermal Night Vision Binoculars/Camera: $10,000 Handheld thermal imaging binoculars/cameras are a relatively new and powerful tool in the fight against crime. The thermal binoculars/cameras let law enforcement officers see clearly in total darkness, smoke, dust and fog. Because these systems are thermal, they do not require any ambient light to be effective. These systems can be used for a variety of situations including but not limited to search and rescue operations for missing persons and disasters, searching for dangerous suspects hiding in the darkness, fire incidents and surveillance. Electronic Control Devices Replacement: $75,000 Electronic Control Devices (ECDs), also known as Tasers, have been utilized by the police department since 2007. The Tasers are a critical component for officers in the category of less lethal force options when dealing with a variety of circumstances. The primary reasons for the use of Tasers is to reduce officer and suspect injuries, reduce litigation by injured suspects, and reduce the use of deadly force situations. The Department’s current Tasers has outlived the manufacturer’s warranty. Based on the results of a Department needs assessment and review of current Taser technology, the Department will either replace the current Taser inventory with new units of the model the Department is currently using or upgrade to the newest Taser device. Two-Factor Authentication Equipment: $25,000 Two-Factor authentication provides additional security for authorized users attempting to access sensitive or restricted information. Two-factor authentication will be a requirement for all law enforcement personnel to access DOJ information effective September 1, 2013. There are a number of solutions including security tokens and biometrics that can be used and the Department will work with IT to select the most effective solution. Cellebrite Physical Cell Phone Analyzer: $7,600 City of Palo Alto Page 3 The collection of evidence from mobile phones is becoming increasingly important to criminal investigations. The advent of new mobile device security measures is making it more difficult for detectives to access the data contained in the device. A Cellebrite Physical Analyzer will allow detectives to defeat many of these new security measures, and extract better and more consistent data results. Crime Prevention Software: $20,000 Crime prevention software is at the cutting-edge of law enforcement and will be an important tool in preventing crime during a period of fiscal constraint. Crime prevention software aggregates historical data and uses advanced mathematics and computer learning to generate predictions of where and when future crime may occur. A number of law enforcement agencies have deployed this tool and achieved measurable reductions in crime Additional Equipment for Designated Rifle Officer Program: $25,000 An increasing level of fire power and body armor is being utilized by criminal suspects in hostage situations and terrorism threats. Police officers must be prepared to act decisively to defend innocent lives. The Department currently has authorized the use of tactical rifles by a specialized trained group of officers. These officers must qualify on an annual basis, and attend special training which includes guidelines for deploying the rifle. Staff proposes using $25,000 to purchase additional rifles to expand the program to include all officers. Crisis Negotiation Team Phone Console: $20,000 Communicating with and monitoring a hostage-taker or other barricaded subject is a critical component of crisis negotiation and resolution. A real-time audio and video feed aids in intelligence gathering by the department’s hostage negotiation team, thereby increasing the probability of peacefully resolving a crisis through negotiation. It also provides crucial tactical information for the department’s SWAT team. The Department’s existing two-way crisis communication system does not meet current video or audio recording standards. It does not have wireless capability; making deployment more difficult, it records audio only via audio- cassette, and it has no internal mechanism for recording video. Newer systems meet all of the criteria required for effective recording, playback, archiving and duplication while maintaining data integrity. The proposed system would be wireless and would work in conjunction with computer software that records and manages the data. Staff proposes using $20,000 replace the existing two-way crisis communication system. Law Enforcement Automated Personnel System: $10,000 Currently, the Field Training Officer (FTO) Program of the Police Department functions using hard copy personnel records for all aspects related to the documentation of an officer’s training City of Palo Alto Page 4 performance. For each new police officer, the FTO is responsible for completing roughly 72 Daily Observation Reports (DORs), nine bi-weekly performance evaluations and one final evaluation. Staff would like to purchase software which manages all personnel and training files for the FTO program. This is specifically designed and customized software, based on the California Peace Officers Standards in Training (POST) Field Training guidelines. The purpose is to avoid the possibility of lost documents, maintain restricted access, reduce waste and ensure a speedy review of all DORs. This software allows electronic completion, review and approval of all documents. An electronic personnel file would be accessible at any time, by any member of the department, who has permission to view it. Built in notifications can be set-up to remind FTOs and alert FTO administrators if forms are not completed or submitted within specified time frames. RESOURCE IMPACT A total of $192,600 of expenditures are anticipated, all of which will be covered by grant funding, and remaining balances in the Supplemental Law Enforcement Service Fund (SLESF). There will be no impact to the General Fund or the Budget Stabilization Reserve. The City received the official notice from the California Department of Finance in September 2012 that the City’s COPS allocation for Fiscal Year 2013 is $105,397. Revenues and expenses of $105,397 will be budgeted in the City’s SLESF as part of the mid-year budget report. The remaining $87,203 in expenditures will be funded by existing accumulated interest and residual funds from prior years already in the SLESF. There is sufficient funding in the SLESF to cover these expenditures. At the close of FY2012 the SLESF had a balance of $248,852, and with recent activity in FY13 the estimated fund balance as of December 17, 2012 is $240,577. POLICY IMPLICATIONS Expenditures of funds associated with COPS funds are consistent with City Policy. ENVIRONMENTAL ASSESSMENT Acceptance of COPS funding and the proposed expenditures for public safety equipment are not projects subject to CEQA requirements. City of Palo Alto (ID # 3292) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/14/2013 City of Palo Alto Page 1 Summary Title: BAO and Award of Contract for Vehicle Replacements Title: Adoption of a Budget Amendment Ordinance in the Amount of $182,902 to Fund the Purchase of Two Ford F-250 Pickup Trucks, One Chevrolet Express 350 Cargo Van, Two Regenerative Air Sweepers and $16,000 for Vehicle Outfitting Work and Approval of Purchase Orders with 1) Towne Ford in an Amount Not to Exceed $52,146 for Purchase of Two Ford F- 250 Pickup Trucks; 2) Courtesy Chevrolet in an Amount Not to Exceed $39,756 for Purchase of One Chevrolet Express 3500 Cargo Van; and 3) Municipal Maintenance Equipment in an Amount Not to Exceed $539,646 for Purchase of Two Regenerative Air Sweepers; (Capital Improvement Program project VR-13000) From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1. Approve the attached Budget Amendment Ordinance (BAO) in the amount of $182,902 (Attachment A) to provide an appropriation for the purchase of replacement vehicles and any additional work needed to make vehicles ready for service; 2. Approve and authorize the City Manager or designee to execute a purchase order with Towne Ford Sales in the amount of $52,145.88 for the purchase of two Ford F250 pick-up trucks; 3. Approve and authorize the City Manager or designee to execute a purchase order with Courtesy Chevrolet in the amount of $39,755.98 for the purchase of a Chevrolet 3500 van; 4. Approve and authorize the City Manager or designee to execute a purchase order with Municipal Maintenance Equipment in the amount of City of Palo Alto Page 2 $539,645.74 for the purchase of two street sweepers; and 5. Approve and authorize $26,354 to add tool boxes and other features needed to outfit the vehicles. Background The vehicle and equipment replacement policy described in City Policy and Procedures 4-1 (Vehicle and Equipment Use, Maintenance, and Replacement), provides for the on-going replacement of City fleet vehicles and equipment. Replacements are scheduled using guidelines based on age, mileage accumulation and obsolescence. Audit of Vehicle Utilization and Replacement These purchases are being conducted with full consideration for the Audit of Vehicle Utilization and Replacement which was conducted by the City Auditor. The vehicles being replaced through this purchase have, on average, greatly exceeded the minimum mileage accumulation of 2,500 miles or 50 usage hours annually. All purchases were brought before the Fleet Review Committee (FRC). Discussion The FRC has reviewed all of the vehicles proposed for replacement and has authorized their replacement. The FRC approved the replacement of these vehicles in accordance with the audit recommendations. The approval was based on: An examination of each vehicle’s current usage; An analysis of each vehicle’s operating and replacement costs; A comparison of the age, mileage, operating cost and performance of each vehicle with others in the class; and An analysis of alternatives to ownership, such as mileage reimbursement; pooling/sharing; the reassignment of another underutilized vehicle, or renting; and An assessment if a more cost effective type/style of vehicle can be utilized. Ford F250 Pick-up trucks (2 vehicles) The first vehicle in this group will replace one pick-up truck that has already been removed from the fleet because of expiring CNG fuel tanks. That vehicle is used by the Supervising Inspector of Public Works who travels throughout the City on a City of Palo Alto Page 3 daily basis inspecting all construction projects for compliance with City policies. The second vehicle is to be used by the Utilities Department and is a scaled down replacement for an existing utility van. Staff is recommending the elimination of a larger walk-in van and replacement with a smaller and more efficient pick- up truck. The van being replaced is a 1992 model with 85,000 miles. Maintenance cost per mile on this van has doubled in the last year because of the age of the vehicle. This vehicle exceeds the replacement criteria for both mileage and age. Chevrolet 3500 van A Utilities Department CNG van with an odometer reading of 130,000 miles was removed from the fleet on November 1st because of expiring fuel tanks. This vehicle exceeds the replacement criteria for both mileage and age. Staff recommends the purchase of another CNG van to replace this vehicle. Since there was no replacement vehicle available when the CNG tank on the van expired, the Utilities Department began using the only available pick-up truck in the City vehicle pool. Not having a pick-up truck in the Municipal Services Center pool has proved problematic in the ability to meet Public Works and Utilities Department operational needs. Replacing this vehicle will restore a CNG van used by Utilities and will also allow for the much needed return of a pick-up truck to the pool so that it is once again available for use by maintenance crews. Street Sweeper (2 vehicles) Due to the complexity of street sweeping equipment the Vehicle Replacement Policy identifies 7-years or 60,000 miles as the recommended replacement criteria based on usage, operational costs, and downtime. The two sweepers recommended for replacement are both well beyond the replacement guidelines. The funding for these two street sweepers was approved as part of CIP VR-13000. The process of street sweeping requires the operator to clean at speeds of under 10-miles per hour. Multiple moving parts within the sweeping equipment combined with the slow speed and stop and go nature of the operation results in significant wear on the equipment. The wear and tear of 60,000 miles put on street sweepers can equate to roughly double the number miles of wear on an average car. The FRC determined that there are no alternatives to outright replacement of the vehicles included in this report. They are each used on a continuous daily basis, are at remote locations, and/or are already being used as part of the shared pool City of Palo Alto Page 4 system. There are no similar, underutilized vehicles available to use as replacements for these vehicles. Funding for these two street sweepers were approved by Council during the FY 2013 budget adoption in Capital Improvement Program project VR-13000. Solicitations were sent out and the bids that were received were $64,646 over the projected replacement costs for the street sweepers. Approval of the BAO (Attachment A) will provide adequate funding to purchase the two street sweepers in CIP VR-13000 and provide funding for additional equipment. Funding in the amount of $26,354 for additional equipment to outfit all of the vehicles described above is also being requested. Bidding and Selection Process Ford Pick-up (2 vehicles) A Request for Quotation (RFQ) for two Ford pick-up trucks was sent to four vendors on December 5, 2012. Bids were received from one qualified vendor on December 18, 2012, as listed on the attached bid summary (Attachment B). Staff has reviewed all bids submitted and recommends that the bid submitted by Towne Ford be accepted and that Towne Ford be declared the lowest responsible bidder. Staff has checked references supplied by the vendor for previous contracts and has found no significant complaints. Chevrolet 3500 CNG van A Request for Quotation (RFQ) for a Chevrolet CNG Van was sent to three vendors on December 5, 2012. Bids were received from two qualified vendors on December 18, 2012, as listed on the attached bid summary (Attachment B). Bids ranged from a high of to $39,755.98 to a low bid of $37,465.73. Staff has reviewed all bids submitted and recommends that the bid submitted by Courtesy Chevrolet be accepted and that Courtesy Chevrolet be declared the lowest responsible bidder. Staff has checked references supplied by the vendor for previous contracts and City of Palo Alto Page 5 has found no significant complaints. Street Sweeper (2 vehicles) A Request for Quotation (RFQ) for two street sweepers was sent to three vendors on September 28, 2012. Bids were received from one qualified vendor on October 16, 2012, as listed on the attached bid summary (Attachment B). Staff has reviewed all bids submitted and recommends that the bid submitted by Municipal Maintenance Equipment Inc. be accepted and that Municipal Maintenance Equipment Inc. be declared the lowest responsible bidder. Staff has checked references supplied by the vendor for previous contracts and has found no significant complaints. Resource Impact Funding for the two street sweepers was included in the Vehicle Replacement Fund FY 2013 Capital Improvement Program project VR-13000 however solicitations were sent out and the bids that were received were $64,646 over the projected replacement costs for the street sweepers. A BAO is being requested to transfer funding for this amount, funding for two trucks and one van as well as $26,354 for additional equipment to the vehicles described above. Funding for Street Sweepers $ 64,646 Two Ford Trucks $ 52,146 One Van $ 39,756 Outfitting $ 26,354 Total BAO $182,902 The attached Budget Amendment Ordinance will provide for the transfer of funding from the Vehicle Replacement Fund Reserve into the current year’s Scheduled Vehicle and Equipment Replacement CIP (VR-13000). The Vehicle Replacement Fund Reserve will decrease to $8,457,077 as a result of this appropriation. Policy Implications Authorization of the contract does not represent any change to the existing policy. Purchase of these vehicles supports Comprehensive Plan(s) N5, N40 and City of Palo Alto Page 6 N41 by supporting the use of alternative fuel vehicles and also removing older, more polluting vehicles from the roadways and replacing them with newer, more efficient ones. Environmental Review The vehicles being supplied are in conformance with all applicable emissions laws and regulations. Accordingly, this purchase is exempt from the California Environmental Quality Act under the CEQA guidelines (Section 15061). Attachments:  Attachment B: Bid Summary (DOC)  Attachment A: BAO- VR-13000 Pick-up trucks-van-street sweepers (DOC) Attachment B ATTACHMENT B BID SUMMARY Ford F-250XL Supercab 4x2 Pickup Truck RFQ148197 Towne Ford Sales Bid Total $52,145.88 Chevrolet Express 3500 CNG Powered Cargo Van RFQ148263 Courtesy Chevrolet Bid Total $39,755.98 Winner Chevrolet Bid Total $37,465.73 Regenerative Air Sweepers RFQ147861 Muncipal Maintenance Equipment Bid Total $539,645.74 ORDINANCE NO.xxxx ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 2013 TO PROVIDE AN ADDITIONAL APPROPRIATION OF $182,902 TO CAPITAL IMPROVEMENT PROGRAM PROJECT NUMBER VR- 13000, SCHEDULED VEHICLE AND EQUIPMENT REPLACEMENTS 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 18, 2012 did adopt a budget for fiscal year 2013; and B. City policy on vehicle and equipment replacement provides for the on-going replacement of City fleet vehicles and equipment. Specifically, Policy 4-1 prescribes replacement intervals using guidelines based on age, mileage accumulation, and obsolescence; and C. The Fleet Review Committee (FRC) approved the purchase of two Ford F250 pick-up trucks for $52,146 to replace one pick-up truck and one utility van. Funding for the two pick- up trucks was not included in VR-13000 Scheduled Vehicle and Equipment Replacements; and D. The FRC approved the purchase of a Chevrolet 3500 CNG van for $39,756 to replace an existing CNG van. Funding for this van was not included in CIP Project VR-13000 Scheduled Vehicle and Equipment Replacements; and E. The FRC approved the purchase of two street sweepers for $539,646 to replace two existing street sweepers. Funding of $475,000 for the two street sweepers was originally included in CIP Project VR-13000 Scheduled Vehicle and Equipment Replacements. An additional $64,646 is needed because the bids received were $64,646 over the projected replacement costs of the street sweepers. F. Funding of $26,354 is needed to outfit the vehicles described above; and G. These purchases are being conducted with full consideration for the Audit of Vehicle Utilization and Replacement which was conducted by the City Auditor; and H. City Council authorization is needed to amend the 2013 budget as hereinafter set forth. SECTION 2. The sum of One Hundred Eighty-Two Thousand Nine Hundred Two Dollars ($182,902) is hereby appropriated to CIP Project Number VR-13000. SECTION 3. The Vehicle Replacement Fund Reserve is hereby reduced by One Hundred Eighty-Two Thousand Nine Hundred Two Dollars ($182,902) to Eight Million Four Hundred Fifty-Seven Thousand Seventy-Seven Dollars ($8,457,077). SECTION 4. As specified in Section 2.28.080(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 5. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. SECTION 6. The vehicles being purchased are in compliance with all applicable emissions laws and regulations. Accordingly, this purchase is exempt from the California Environmental Quality Act under the CEQA guidelines (Section 15061). INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: APPROVED: City Clerk Mayor APPROVED AS TO FORM: City Manager Senior Assistant City Attorney Director of Public Works Director of Administrative Services City of Palo Alto (ID # 3431) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/14/2013 City of Palo Alto Page 1 Summary Title: Office of Economic Development Policy Title: Policy and Services Committee Recommendation to Approve a Policy for the Office of Economic Development From: City Manager Lead Department: City Manager Recommendation The Policy and Services Committee and Staff recommend that Council adopt the attached Policy for the Office of Economic Development (Attachment 1). Background In March 2011, the Economic Development Manager presented a draft Economic Development Strategic Plan to the Policy & Services Committee for discussion and direction. After returning in June 2011 with updates, staff met with Policy & Services again in October of 2011 and presented a draft of two separate documents: a Council Policy for Economic Development, and a Staff Action Plan relating to the policy. In response to Committee Member comments, staff returned in November of 2011 with a further revision to these two documents. The Staff Action Plan identified strategic areas of focus that align with the goals of the Economic Development Policy. While staff action plans aren’t typically referred to Committee/ Council for review, staff believed that at that stage of early policy formulation the Staff Action Plan served as an indicator of staff’s interpretation of the City’s goals for Economic Development and would help the Committee/ Council indicate whether or not we were “on track”. After further dialogue, the Committee asked staff to include Committee Member’s comments and return for further discussion of the Policy. City of Palo Alto Page 2 Staff returned to the Policy and Services committee again in October 2012 with an updated draft of an Economic Development policy. The Committee directed staff to make final revisions to the policy, including changing the name to The Policy of the Office of Economic Development, and incorporating comments from the Committee Members. Minutes of the 10-23-12 meeting are included (Attachment 2). Additional background documents and minutes are available online using the following link: http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=31584 Discussion The purpose of the Council policy is to state the goals and the guiding principles of the Office of Economic Development for the City and to provide the policy framework to ensure that the City’s limited resources are applied in the most effective manner. Resource Impact None Attachments:  Attachment 1: Econ Dev Policy Draft 1-14-13 (DOCX)  Attachment 2: P&S Excerpt Minutes 10-23-12 (PDF) Purpose This Council policy sets forth the goals and guiding principles for the City of Palo Alto’s Office of Economic Development. Policy Goal Statement for the Office of Economic Development It is the Policy of the City to create an environment that attracts, retains, and encourages growth of businesses aligned with Palo Alto values that: 1) provide revenues through sales, transient occupancy and property taxes, and other revenue streams to support the delivery of services and infrastructure for the City; and/or 2) are innovative companies and enterprises with a special focus on technology or the services associated with technology, or other innovation based endeavors. Further, it is the Policy of the City that all such businesses should be operated in a manner that is: 1) consistent with the City’s sustainability goals and practices; and are 2) consistent with the livability and residential quality of our community. The City government economic development strategy and practices will be guided by: Perspective and Guiding Principles 1. Key City staff resources should focus on attracting and retaining businesses aligned with Palo Alto values while providing needed revenue to the City. 2. Sustainability and economic development can be complimentary, mutually reinforcing, and value generating. Sustainability and Economic Development go hand-in-hand in Palo Alto. 3. Innovation and creativity are essential components of the city’s “brand” and fostering business that reflect that spirit maintains Palo Alto’s attractiveness and appeal. 4. At the same time, Palo Alto’s economy is sustained through a diverse mix of existing and emerging industries and services. 5. Local-serving businesses are an integral part of the character and livability of Palo Alto. 6. Small businesses and emerging start-ups have an important role in the creation of jobs and economic growth. City of Palo Alto Office of Economic Development Policy December January 2013 7. Collaborative efforts are essential to fostering innovation with an economic impact, especially with creative economic engines like Stanford University and Stanford Medical Center and Lucille Packard Children’s Hospital. Discussion The City of Palo Alto has a reputation as a world leader in technology and innovation and is a major employment center for the Bay Area. Thousands of companies are located here, delivering a wide range of products and services, from technology and its associated enterprises to community-serving businesses. Through the payment of various taxes, many of these companies directly contribute to City revenues and the delivery of needed services and infrastructure in our city. There are also numerous secondary and tertiary financial benefits as well (i.e. transient occupancy tax (TOT) generated from business trips, sales tax generated from business lunches, etc.). Our primary economic development goal is focused on supporting and attracting the businesses that support and grow our tax base, with an understanding that City values and policies help shape our economic development strategy and practice. Significant contributors to our position as a major employment center are our great local schools, access to talented people from institutions such as Stanford University, Stanford Medical Center and Lucille Packard Children’s Hospital; strong neighborhoods (many with historic qualities), with quality executive housing; access to transit; a temperate climate; a beautiful tree canopy and access to parks and open space; a diverse and highly educated populace; interesting and walk-able business districts; City ownership of the suite of utilities including fiber optics; strong cultural amenities including community services, performance and visual arts; and good government. But the City government and the services it provides face numerous challenges. The disconnect between economic growth and local government tax structure limits the revenue yield that could be available to the City and fiscal challenges at the state/federal level continue to put cities at risk. City revenues in California are restricted by law and cities lack flexibility, full home rule, and some taxing authority to raise municipal revenues in an economy such as ours (no income tax, sales taxes on services, etc.). A number of other factors which impact our community must be considered as part of the City’s economic development strategy. These include: managing growing employment demand at the right scale and pace; increasing access to public transit and enhancing its effectiveness; limited availability of commercial properties; affordable housing; City infrastructure; traffic and parking congestion; transitioning to low a carbon economy; population growth anticipated in young families and seniors into the next decade; and maintaining high quality schools. These challenges require balancing economic development goals and community values. The City’s limited Economic Development staff is taking a more proactive role in supporting the attraction of new business to Palo Alto, while helping to retain and grow existing enterprises. Staff focus is on understanding and meeting the needs of revenue-generating companies (i.e. retail, hotel, business- to-business, etc.) that help to fund vital city services. Also, by serving as an advocate with other City departments such as the Development Services, Planning, Fire, and Utilities, Economic Development staff will work to facilitate the appropriate growth of companies in Palo Alto by helping make development and location processes as transparent and predictable as possible. Our Economic Development approach also champions the innovative spirit of our businesses and community to ensure Palo Alto maintains its leadership position as a global center for innovation and an attractive place to launch new ideas and businesses. Some companies in the “innovation” space may provide little direct revenue benefit (i.e. taxable sales, etc.) to the City’s general fund. Nonetheless, on the “soft side”, maintaining the City’s brand as a place where people’s creative ideas can become world- renowned businesses keeps small city Palo Alto a globally competitive city, with indirect revenue benefits and economic, social, and community multipliers of real value. Policy and Services Committee MINUTES 1 Special Meeting Tuesday, October 23, 2012 ROLL CALL Chairperson Holman called the meeting to order at 6:11 P.M. in the Council Chambers, 250 Hamilton Avenue, Palo Alto, California. Present: Holman (Chair), Espinosa, Klein, Schmid Absent: ORAL COMMUNICATIONS None AGENDA ITEMS 1. Recommendation on Economic Development Policy and Input on Outreach and Development Process for Update of Comprehensive Plan Business and Economics Element James Keene, City Manager hoped the Policy and Services Committee (Committee) would provide direction for Staff to proceed with the Business and Economics Element of the Comprehensive Plan. He asked the Committee to allow him to provide a redraft of the item reflecting the content directives offered by the Committee. If the rewrite was acceptable, it could then be forwarded to the Council. If the rewrite was not acceptable, the Committee could place it on their Agenda for further discussion. He wanted the Committee to focus on establishing Policies and Guiding Principles and to articulate an Economic Development Policy. Thomas Fehrenbach, Economic Development Manager reported the Committee had two documents for consideration: the Policy document and the Comprehensive Plan update. The Policy document reflected Palo Alto's assets and the economic development challenge demonstrated Staff's focus on revenue generation and retention and Palo Alto's long-term identity as a place of innovation. He invited the Committee's feedback regarding Guiding Principles in particular. A subcommittee of the Planning and Transportation MINUTES 2 October 23, 2012 Commission (P&TC) and Staff were engaging stakeholders and the community regarding an update of the Business and Economics Element of the Comprehensive Plan. He asked the Committee to provide input on questions for the strategy and outreach questionnaire and thoughts on the process for updating the Business Element. Chair Holman noted questions remained from the prior meeting and requested responses. The first question was the relationship between Economic Development Policy and Staff's update of the Comprehensive Plan. The second question was Staff's response of the direction from the City Council regarding a Business Element of the Comprehensive Plan. Mr. Fehrenbach stated at the prior meeting Staff proposed continuing the update of the Comprehensive Plan which could drive some of the Economic Development Policy. Tonight, Staff proposed considering the Comprehensive Plan update and Policy in tandem. Mr. Keene indicated there was nothing in the Staff program regarding a major redraft involving complex outreach processes for the Business Element of the Comprehensive Plan. An Economic Development Policy had to align with language in the existing Comprehensive Plan Business Element. Staff proposed a simple and general Economic Development Policy. In discussions with the P&TC and the City Council, questions could arise that would be broader or deeper than the proposed Policy language. In that case, Staff would need to seek Council direction. Council Member Klein agreed with the City Manager's approach to the language of the document. The Economic Development Plan should 1) keep and expand businesses that generate sales tax and transient occupancy tax (TOT) revenues; 1a) keep and expand innovative technology companies; 2) indicate all such business should be consistent with the City's sustainability principles, and 3) indicate all such businesses should maintain the residential quality of the community. Development of the Stanford Medical Center was a potential driver, not the primary driver, of economic growth. Council Member Schmid could not comment on alignment with the Comprehensive Plan or its relevance because information regarding the old Comprehensive Plan, the new Comprehensive Plan, and P&TC actions were not included in the packet. The purpose of an Economic Development Plan was to provide context for Council decisions regarding major development projects. The goal of focusing on supporting and attracting businesses that support and grow the City's tax base was a good foundation principle. However, each major development project presented to the Council during MINUTES 3 October 23, 2012 the last year generated less revenue for the City than five single family residences would have. If the goal was to attract elements to grow the tax base the City should approve projects to build single family residences rather than offices. The linkage between successful businesses and a successful City was the attraction of new families who paid property taxes and sales taxes. The City should attract businesses that contribute to the quality of life in the City. The Economic Development Plan did not discuss that aspect. If his economic model was correct Staff should reach out to new residents to learn what attracted them to the City. Discussions of business development should center on benefits rather than problems. He inquired whether Staff agreed with his economic model. Mr. Keene felt those were good points. In many communities’ single family residences cost more in services than they generated in taxes and offices provided the revenue gain for cities. Council Member Schmid recalled Staff's estimate that the total taxable income from four floors of office and retail space would be between $70,000 and $90,000 annually. The 195 Project would provide total income to the City of $68,000 annually. Fire and police services would exceed that amount. From a revenue perspective large office projects did not pay for the services they received. Mr. Keene reported the Office of Economic Development had no direction or goals. Mr. Fehrenbach proposed meeting with the Committee to articulate his goals. He was prepared to discuss the focus for the Office of Economic Development and not necessarily the other issues mentioned. If the Committee wished to discuss the larger issues he needed to prepare a different proposal and conversation. Council Member Schmid explained that the introductory comments indicated a discussion of the Comprehensive Plan and the business development part of the Comprehensive Plan, which led to a discussion of how the Council made decisions regarding business developments. Mr. Keene wanted a policy formally established by the Council to guide Staff's work in the Office of Economic Development. Staff wanted to ensure the Policy language was reconciled with language in the Comprehensive Plan. If larger issues emerged Staff would have to review the entire project. Council Member Schmid raised important questions and they would be considered in future discussions. MINUTES 4 October 23, 2012 Council Member Espinosa agreed the Policy statement was simple and did not disagree with Council Member Klein's suggested wording. He suggested the Policy statement be moved to the beginning of the document. The Policy Statement should provide clear goals and strategies and advocate a work plan for the Office of Economic Development. The list of questions for outreach was good and would provide helpful information. He suggested outreach to new and existing businesses, small and large businesses, start- up businesses, and business incubators. Council Member Schmid inquired which statement Council Member Espinosa suggested be moved. Council Member Espinosa indicated the Economic Policy statement, whether or not it included Council Member Klein's changes, should be stated at the beginning of the document. Council Member Klein felt it was a fallacy to think businesses moved to Palo Alto and their employees followed. Mr. Fehrenbach's job was to keep existing businesses happy and to bring new businesses into the City. The discussion was an attempt to help him focus on the types of businesses to recruit. Council Member Espinosa had talked with two business incubators who wanted to work within the City but needed help. He referred them to Mr. Fehrenbach, who assisted them and provided solutions. Both groups were appreciative of Mr. Fehrenbach's guidance. Chair Holman stated it was the Committee's responsibility to provide direction and set expectations. Because she was unaware of the intention to update the Comprehensive Plan Business Element she had concerns about the process to engage the public regarding the update. Prior Comprehensive Plan updates included broad outreach. She felt the update of the Business Element would be included on a P&TC Agenda and asked for Staff's input. The Policy's strong emphasis on innovation spaces and innovative companies was the driver of Council Member Schmid's comments. The Policy lacked a statement about providing an economic climate to encourage and support local, independent businesses. Local, independent businesses enhanced a community's individuality and drew residents to a community to shop. What were not mentioned in the Policy were the types of services and businesses reflective of the needs of the community. She felt they should be included. Other topics she wanted included in the Policy were adjacency, a sustainable environmental community, and a business registry. Knowing the kinds of MINUTES 5 October 23, 2012 businesses located within the City was critical to understanding community needs and the type of business that generated the most sales tax. Mr. Keene indicated a discussion of economic development with the Council would require more resources. To respond to the questions posed, he would need to return with a different proposal. Chair Holman clarified she was not asking for Staff to perform studies or research. The topics were simply what she wanted incorporated into the Policy document. Mr. Keene could take liberties with Chair Holman's comments and include an umbrella statement regarding specific revenue sources. Being known as a headquarters capital or start-up capital had some value, although it did not provide direct revenue. Staff was not in a position to define every aspect of the Policy but wanted it as a guide with respect to the citizens' needs. He would not ask Mr. Fehrenbach to work on mixed-use or adjacency issues because those issues were not in his area. If the Council wanted to discuss the larger economic issues he needed to provide the Committee with a different proposal. The Committee could adopt some of the framework of the Policy or he could return with a new plan and proposal. He needed clarification from the Committee regarding the actions Staff needed to take. Chair Holman explained a business registry would allow the Committee to understand the types of businesses located within Palo Alto and the more profitable businesses. She wanted the basic business plan to support adjacencies in existing businesses in order to promote thriving retail areas. These were statements she wanted included; they were not meant to create additional work for Staff. Council Member Schmid stated Mr. Keene wanted a Policy for the Office of Economic Development. The prime goal and function of that office was to facilitate relationships between the City and the business community by providing information, fostering public-private partnerships, speeding the Development Center process, and helping small businesses and foreign visitors. That role would not set City policy, develop a new Comprehensive Plan, or deal with zoning and such topics. The current discussion concerned a Policy for the Office of Economic Development. All other topics were appropriate for a different discussion at a different time. He asked if his interpretation was correct. MINUTES 6 October 23, 2012 Mr. Keene felt it was a useful way to divide the topics so the Committee could proceed. Some functions of the Office of Economic Development would reach beyond the office; however, for the current discussion, that was a useful division. Council Member Klein agreed with Council Member Schmid's suggestion. A broader discussion would not be useful. The Committee's responsibility was setting policy; the City Manager's responsibility was implementing policy. He did not want the City involved in top-down economic planning. Council Member Espinosa recalled Staff originally requested feedback on the plan and suggested presenting a plan was no longer a goal for Staff. He favored presenting the current Policy statement with changes made during the discussion to the Council. He inquired about the Comprehensive Plan discussion returning to the Committee, so Staff could receive information and guidance. Mr. Keene reported he could redraft the Policy, moving the Policy statement to the beginning and including an umbrella statement to express intent. He requested permission to submit the redraft on an exception basis. Regarding the Comprehensive Plan, perhaps Staff could answer some Policy questions through a Comprehensive Plan amendment process rather than a complete revision of the Business Element. If the Council adopted a Policy change or clarification, they would expect Staff to review the existing Comprehensive Plan to ensure the Policy aligned. Staff was not requesting a redraft of the Business Element. He suggested the Committee recommend the Policy to the Council and discuss the Comprehensive Plan and larger policies related to the Business Element and economic issues in a separate forum. Staff wanted to ensure the Committee did not take an action that conflicted with language in the Comprehensive Plan. Council Member Klein moved adoption of Part A of Mr. Keene's comments. Part B concerned the Comprehensive Plan, which had not been agendized. Chair Holman inquired about the meaning of Part A. Council Member Espinosa stated the Council would review the Office of Economic Development Policy statement. Council Member Klein indicated the statement would be revised by the City Manager's Office and would contain as its lead the Policy statement listed on page 2. MINUTES 7 October 23, 2012 Council Member Espinosa added the Policy statement would incorporate comments made by the Committee. Mr. Keene indicated it was a matter of organizing and expressing clearly the Policy document. The document provided a guidance that Staff did not have, even though Staff was operating from the principles stated in the Policy document. Council Member Klein suggested naming the document the Policy of the Office of Economic Development. Staff should provide the redraft to the Committee in sufficient time for review and comment before discussion by the Council; however, the redraft would not be agendized for a Committee meeting. Council Member Klein moved, seconded by Council Member Espinosa to: 1) create a separate policy for the Economic Development Department and economic development portion of the Comp Plan, 2) create a new “Policy of the Economic Development Department”, 3) move the Policy Statement for Economic Development from Page 2 to the beginning of the new policy. Council Member Espinosa stated the goal of the document was to have all involved parties working towards the same objective in terms of the end results for the Office of Economic Development. He hoped the material would provide focus and guidance for Mr. Fehrenbach. Council Member Schmid supported the Motion because he believed it was helpful in clarifying how the discussion could move the process forward. He encouraged the City Manager to the process; context and strategy of economic decision making that may include items such as Planned Communities (PCs), public benefits, ground floor retail, mixed use, Pedestrian Transit Oriented Development (PTOD), parking, and retail versus office. MOTION RESTATED: Direct Staff to: 1) revise the Economic Development Plan and rename it- The Policy of the Office of Economic Development, 2) P&S Members will review the updated policy prior to it going to full Council for review, 3) the revised policy incorporates comments by P&S members, 4) the policy statement for economic development- It is the Policy of the City to create an environment that attracts new businesses, and retains and encourages growth of existing businesses that provide revenues to support the delivery of services and infrastructure for the City and/or; 2) ensure that Palo Alto continues to be a global center of technology and innovation, is moved to the front of the new policy document. MINUTES 8 October 23, 2012 Mr. Keene felt the intent was to move the statement to the beginning; however, Staff would be moving other parts as well. Council Member Klein indicated the intent of the Motion was that Staff could change the wording; however, the concept should be at the beginning of the document. MOTION PASSED: 4-0 Erik Nichol, Fire Chief introduced himself. He was from a special district in Marin County that focused solely on fire and emergency services where he progressed through the ranks. He used data to make solid decisions and wanted to use data to predict risk and calls for service. He looked forward to working with the Council. 2. Fire Utilization Study Recommendations Update Pam Antil, Assistant City Manager noted the update was overdue; however, the Policy and Services Committee (Committee) would be pleased with work performed by the team. Dennis Burns, Public Safety Director, recalled in 2010 the City contracted with International City/County Management Association (ICMA) for the Center for Public Safety Excellence and Tri Data to evaluate the Palo Alto Fire Department. After six months of study the consultants provided 48 recommendations to improve the quality of the Palo Alto Fire Department. At the beginning of 2012, a second study focused solely on Emergency Medical Services (EMS) and provided 23 recommendations. Staff consolidated the command and support Staff for the Police and Fire Departments. With the elimination of shift-wide minimum staffing, the Department could deploy Staff and resources based on available Staff. This reduced overtime and removed from service at most one piece of apparatus when absences fell below a certain number. Ian Hagerman, Senior Management Analyst, developed a tool for Fire Department Command Staff to use in monitoring response times for each shift and each station. The Fire Department previously had a second medic for only 12 hours per day staffed through overtime. By shifting personnel, the second ambulance was staffed fulltime while increasing EMS revenue and reducing overtime. The Department had accomplished a great deal in training and development. Deputy Chief Capriles developed an annual training plan to prioritize training for all positions within the Fire Department, developed task books for various positions to ensure personnel met Department standards, and developed a City of Palo Alto (ID # 3220) City Council Staff Report Report Type: Action ItemsMeeting Date: 1/14/2013 City of Palo Alto Page 1 Summary Title: Weed Abatement Public Hearing Title: Public Hearing: on Objections to Weed Abatement and Adoption of Resolution Ordering Weed Nuisance Abated From: City Manager Lead Department: Fire Recommendation Staff recommends that Council hold a public hearing to hear and consider any objections to the proposed destruction and removal of weeds, and adopt the attached Resolution ordering the abatement of weed nuisances in the City of Palo Alto. Executive Summary The City of Palo Alto contracts with Santa Clara County Agriculture and Resource Management to remove and destroy weeds, as defined in Chapter 8.08 of the Palo Alto Municipal Code. This hearing allows all those affected and listed on the County’s 2012 Weed Abatement Program Commencement Report to be heard and have their objections and comments considered by Council before the Council adopts a resolution ordering the abatement of weed nuisances in the City. Background The Council adopted Resolution 9303 on December 10, 2012 and declared weeds to be a nuisance and ordered the abatement of that nuisance as called for in Chapter 8.08 of the Palo Alto Municipal Code. The Resolution provided for a public hearing date of January 7, 2013 and required notice to interested property owners and the public. Discussion The Santa Clara County Department of Agriculture and Resource Management administers the contract for abatement of weeds within the City of Palo Alto. Upon notification of the City Council’s December 10, 2012 action declaring weeds to be a nuisance and ordering abatement City of Palo Alto Page 2 thereof, the Department of Agriculture and Resource Management took proper steps to notify each property owner by mail of the proposed weed abatement action on respective properties and posted, on the public notice bulletin board, a list of the properties affected. The Department of Agriculture and Resource Management has furnished copies of the property listing to the City Clerk and the City Fire Marshal. The City Clerk also posted and published notice of the hearing as required. At this public hearing, property owners may appear and object to the proposed weed destruction or removal. After the hearing and consideration of any objections, the council may allow or overrule any or all objections. If objections are overruled, the Council is deemed to have acquired jurisdiction to proceed with abatement of weed nuisances upon Council Adoption of the attached resolution. The County will be asked to perform the abatement work to destroy and remove any weeds. Resource Impact All Charges for the weed abatement services are included as a special assessment on bills for property taxes levied against the respective lots and parcels of land, which are considered liens on these properties. Policy Implications This procedure is consistent with existing City policies and Chapter 8.08 of the Municipal Code. Environmental Review Santa Clara County has determined the Weed Abatement Program to be Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA guidelines Sections 15308. Attachments: Attachment A - Resolution (PDF) Attachment B - Property List (PDF) Situs APN CITY/STATE 2013 WEED ABATEMENT PROGRAM COMMENCEMENT REPORT CITY OF PALO ALTO EXHIBIT A T GOUYET ALBERT AND CALISA C 931 GUINDA ST PALO ALTO CA 94301-3319 0931GUINDAST003-34-006 KODA, ROSS K TRUSTEE P O BOX 156 SOUTH DOS PALOS, CA 93665 6733RAMONAST120-27-063 "BEN EFRAIM, AMIR TRUSTEE & ET 2021 WEBSTER ST PALO ALTO CA 94301-0000 02021WEBSTERST124-03-070 "KHAN, ANWAR AND KHAN, 2341 FALLING WATER CT SANTA CLARA CA 95054-1316 0128KINGSLEYAV124-15-038 "STELL, BRIAN W AND STELL, 2030 PARK BL PALO ALTO CA 94306-1142 02030PARKBL124-27-002 "TEICHER, ZELMA TRUSTEE PO BOX 899 PALO ALTO CA 94302-0899 0790MONTROSEAV127-16-028 "LAWS, LILY M AND LAWS, 4064 SUTHERLAND DR PALO ALTO CA 94303-4728 04064SUTHERLANDDR127-18-046 "HUANG, HSING YI ET AL 1113 TRINITY LN PALO ALTO CA 94303-0000 0739COLORADOAV127-34-101 BANQUE RAYMOND J 780 CLARA DR PALO ALTO, CA 94303-3905 0780CLARADR127-35-030 ZHANG, LIBIN 3984 WASHINGTON BLVD # FREMONT CA 94538 63101MIDDLEFIELDRD127-53-007 WINDY HILL PV 3 LP 1950 UNIVERSITY AV #220 PALO ALTO CA 94303 03085MIDDLEFIELDRD127-53-008 ESSEX PARK BLVD LLC 925 E MEADOW DR PALO ALTO CA 94043 02785PARKBL132-31-042 "HARRISON, MICHAEL TRUSTEE 375 OLIVE AV PALO ALTO CA 94306-2224 0375OLIVEAV132-32-026 "SMITH, BOYD C AND SMITH, JILL 3201 ASH ST PALO ALTO CA 94306 0315OLIVEAV132-32-029 SI 43 LLC 10600 N DE ANZA BL STE 200 CUPERTINO CA 95014 0OLIVEAV132-32-037 HOHBACH REALTY CO LP 29 LOWERY DR ATHERTON CA 94027 02901PARKBL132-32-052 HOHBACH REALTY CO LP 29 LOWERY DR ATHERTON CA 94027 0195PAGE MILL RD 132-32-054 KUMANO, TADAHIKO 486 JAMES RD UNIT 11 PALO ALTO CA 94306 63370PARKBLV132-33-049 AT&T COMMUNICATIONS INC. 870 N. McCARTHY BLVD MILPITAS CA 95035-5125 6132-33-050 REHABILITATION HOUSING 1796 BAY RD EAST PALO ALTO CA 94303 0325FERNANDOAV132-34-012 ELLIS, BESS TRUSTEE ETAL 6223 FRANCISCAN WY SAN JOSE, CA 95120-4420 6405CURTNERAV132-41-072 4041 EL CAMINO WAY LLC 664 GILMAN ST PALO ALTO CA 94301 64035EL CAMINO WA 132-43-139 ETON CAPITAL LLC 2521 SOUTH CT PALO ALTO CA 94301-4241 04073EL CAMINO 132-46-107 HALL LOIS M TRUSTEE 1135 HOPKINS AV PALO ALTO, CA 94301-3435 62120COLUMBIAST137-06-088 Page 1Santa Clara County Weed Abatement Program25Records Situs APN CITY/STATE 2013 WEED ABATEMENT PROGRAM COMMENCEMENT REPORT CITY OF PALO ALTO EXHIBIT A T "ENT LLC,CAMINO REAL DEVELOPM P.O. BOX 60177 PALO ALTO CA 94306 03606EL CAMINO 137-08-080 ONAGA ATSUO & KAZUKO 754 MATADERO AV PALO ALTO, CA. 94306-2734 0754MATADEROAV137-09-059 KSS INVESTMENT LLC 1380 MIRAVALLE AV LOS ALTOS CA 94024-5744 03700EL CAMINO 137-11-078 "HAMLETT, MILDRED 4031 AMARANTA AV PALO ALTO CA 94306-3103 04031AMARANTAAV137-21-034 "YANG, MICHAEL X AND XU, YING-ZI 4197 BAKER AV PALO ALTO CA 94306-3908 04197BAKERAV137-25-038 "LC,HILLVIEW PALO ALTO L 13155 NOEL RD STE 500 DALLAS TX 75240 03460HILLVIEWRD142-16-059 "NIV BOARD,LELAND STANFORD JR 150 PORTOLA RD PORTOLA VALLEY CA 94025 03495DEER CREEK RD 142-16-062 "NIVERSITY BOARD OF TR,LELAND 2755 SAND HILL RD STE 100 MENLO PARK CA 94025 03500DEER CREEK RD 142-16-066 VAN ZANT, STEVEN L 262 WHITCLEM DR PALO ALTO CA 94306-4112 0262WHITCLEMDR148-02-044 "VINCENT, LUC MAURICE ANTONIN 4237 MANUELA AV PALO ALTO CA 94306-3705 04237MANUELAAV175-02-045 "WEAKLAND, JOHN H AND 620 SAND HILL RD APT 300C PALO ALTO CA 94304 04247MANUELACT175-02-051 "WEAKLAND, ANNA WU TRUSTEE & 620 SAND HILL RD 300 C PALO ALTO CA 94304 04243MANUELACT175-02-053 "SMITHWICK, ALTON D AND PO BOX 60065 PALO ALTO CA 94306 04103OLD TRACE RD 175-20-078 "COLBERT, JAMES L AND COLBERT, 1825 FARDON AV LOS ALTOS CA 94024 0890MOCKINGBIRDLN175-20-082 "LIVINGSTON, DANIEL S AND 900 MOCKINGBIRD LN PALO ALTO CA 94306-3719 0900MOCKINGBIRDLN175-20-083 "SELKER, EDWIN J AND SHAY, ELLEN 910 MOCKINGBIRD LN PALO ALTO CA 94306-3719 0910MOCKINGBIRDLN175-20-084 "GROVE, EVA R AND GROVE, 171 MAIN ST #278 LOS ALTOS CA 94022 0OLD ADOBE RD 175-20-092 RADUCHEL, WILLIAM J TRUSTEE 615 KENTLAND DR GREAT FALLS VA 22066-1017 63111ALEXISDR182-43-018 hwa, george & eileen 29 Ventris Rd B-4 9/f, San Hong Kong China 6ALEXISDR182-43-034 Page 2Santa Clara County Weed Abatement Program43Records City of Palo Alto (ID # 3416) City Council Staff Report Report Type: Action Items Meeting Date: 1/14/2013 City of Palo Alto Page 1 Summary Title: TEFRA Hearing and Approval for Tax-Exempt Financing for Albert L. Schulz Jewish Community Center Title: Public Hearing: TEFRA Hearing and Approval of Conduit Refunding Obligations for the Oshman Family Jewish Community Center Through the California Development Authority Relating to Facilities Located at 3921 Fabian Way, Palo Alto, California 94303 From: City Manager Lead Department: Administrative Services Recommendation Conduct a public hearing under the requirements of the Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”) and the Internal Revenue Code of 1986, as amended (the “Code”); and Adopt a resolution approving the issuance of tax-exempt refunding obligations by the California Enterprise Development Authority (“CEDA”) for the benefit of Oshman Family Jewish Community Center (the “Borrower”) and authorize the Mayor, City Manager (or such other designated signatory) to execute the Joint Exercise of Powers of Agreement with the CEDA. Background On July 23, 2007, the City of Palo Alto conducted a public hearing (the “TEFRA Hearing”) at the request of the Oshman Family Jewish Community Center (“OFJCC”) to provide members of the community an opportunity to speak in favor of or against the issuance of tax-exempt bonds to finance the acquisition, construction and equipping of facilities located at 3921 Fabian Way, Palo Alto, California 94303 (the “Project”). On August 16, 2007, the ABAG Finance Authority for Nonprofit Corporations issued $134,915,000 of variable rate revenue bonds (the “2007 Bonds”) to enable the OFJCC to finance the Project. Currently, $55,000,000 of the 2007 Bonds are outstanding. City of Palo Alto Page 2 The OFJCC is seeking to refinance the 2007 Bonds with tax-exempt refunding obligations (the “Refunding Bonds”) to be issued through the California Enterprise Development Authority (“CEDA”), a California Joint Powers Agency created by the California Association for Local Economic Development). The Refunding Bonds may have a longer final maturity than the 2007 Bonds and may be sized to include the financing of transaction costs. In order for interest on the Refunding Bonds to qualify as tax-exempt, the City of Palo Alto must conduct another TEFRA with respect to the Project. As with the first TEFRA Hearing, reasonable notice must be provided to the members of the community and, following the close of the TEFRA Hearing, an “applicable elected representative” of the governmental unit hosting the Project must provide its approval of the issuance of the Refunding Bonds. Discussion Since the facilities to be refinanced with the proceeds of the Refunding Bonds are located within the jurisdiction of the City of Palo Alto, the City has been asked to conduct a TEFRA Hearing, and adopt a resolution (Attachment A) that approves both the issuance of the Refunding Bonds by CEDA for the benefit of OFJCC and authorizes the Mayor, City Manager (or such other designated signatory) to join CEDA. As cited in the published notice of December 28, 2012, the public hearing is simply an opportunity for all interested persons to speak or to submit written comments concerning the proposal to issue the Refunding Bonds and the nature or location of the facility to be financed; however, there is no formal obligation on the part of the Borrower or the Council to respond to any specific comments made during the hearing or submitted in writing. The Refunding Bonds will refinance no more than $50 million of the outstanding portion of the 2007 Bonds (approximately $55,000,000) and the associated transaction costs. The 2007 Bonds were issued to: (a) finance all or a portion of the costs of acquiring, constructing and equipping a 142,000 square foot community center that includes a social/cultural hall, pre-school, studios/meeting rooms, indoor and outdoor pools, a fitness center, gymnasium, teen center, café, gift center and regional offices; (b) fund capitalized interest on the 2007 Bonds; (c) fund a debt service reserve fund and (d) pay the costs of issuance of the Bonds (collectively, the “Project”). The recommendation includes consideration of the City’s membership in CEDA. The CEDA is a Joint Powers Authority created on May 1, 2006 by the California Association for Local Economic Development to assist businesses and non-profit organizations with tax-exempt and taxable financing. In order for the CEDA to have the authority to serve as the issuer of the Refunding Bonds for the Project, it is necessary for the City of Palo Alto to become a member. Adoption of City of Palo Alto Page 3 the Resolution (Attachment A) allows the City to join CEDA. For information purposes, a copy of the Joint Exercise of Powers Agreement to be executed by a designated signatory of the City is attached to this report (Attachment B). Currently, 59 different communities in California, including the County of Santa Clara and the City of San José, are members of CEDA. The Joint Exercise of Powers Agreement provides that the CEDA is a public entity, separate and apart from each member executing such agreement. The debts, liabilities and obligations of the CEDA do not constitute debts, liabilities or obligations of the members executing such agreement. The Refunding Bonds to be issued by the CEDA for the Project will be the sole responsibility of the Borrower, and the City of Palo Alto will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Refunding Bonds. All financing documents with respect to the issuance of the Refunding Bonds will contain clear disclaimers that the Refunding Bonds are not obligations of the City of Palo Alto or the State of California, but are to be paid for solely from funds provided by the Borrower. The City will in no way become exposed to any financial liability by reason of its membership in the CEDA. In addition, participation by the City in the CEDA will not impact the City’s appropriations limits and will not constitute any type of indebtedness by the City. Outside of holding the TEFRA hearing, adopting the required resolution and executing the Joint Exercise of Powers Agreement of the CEDA, no other participation or activity of the City or the City Council with respect to the issuance of the Refunding Bonds will be required. Based on the benefits of the projects to the Palo Alto community and the lack of any financial obligations on the part of the City, staff recommends that Council approve the attached resolution and membership in the CEDA. Resource Impact As stated, the City will incur no financial obligation from approval of the recommendations. The City, in fact, will be remunerated for the administrative costs associated with the preparation, delivery, and approval of documents presented to the Council. Such grant may be used for any lawful purpose of the City. Policy Implications Actions recommended in this report are consistent with Council’s prior actions in supporting non-profit financings by conducting TEFRA Hearings, including a prior TEFRA Hearing for the OFJCC in 2007. City of Palo Alto Page 4 Environmental Review Action on this item does not require environmental review. Attachments:  Attachment A: Resolution Approving Issuance of TEFRA Bonds (PDF)  Attachment B: Resolution Approving Associate Membership in CEDA (PDF) Not Yet Approved  1  130108 jb 0131029   Resolution No. ___  Resolution of the Council of the City of Palo Alto Regarding Approval of  the Issuance of Tax‐Exempt Obligations by the California Enterprise  Development Authority to Refinance Bonds Previously Issued to  Acquire, Construct, Install and Equip a Community Center and Certain  Other Matters Related Thereto    R E C I T A L S A. The ABAG Finance Authority For Nonprofit Corporations, a joint exercise of  powers agency established under the laws of the State of California, previously issued and sold  its variable rate demand revenue bonds in an aggregate face amount of $134,915,000 (the  “Prior Bonds”) for the purpose of making a loan to Oshman Jewish Community Center, a  California nonprofit public benefit corporation (the “Borrower”); and   B.  The Borrower used the proceeds of the Prior Bonds loaned to it to finance the  acquisition of land and construction of a 142,000 square foot community center that included a  social/cultural hall, pre‐school, studios/meeting rooms, indoor and outdoor pools, a fitness  center, gymnasium, teen center, café, gift center and regional offices located at 3921 Fabian  Way (the “Project”) in the City of Palo Alto (the "City"); and   C.  The Prior Bonds and the Project had been approved in accordance with Section  147(f) of the Internal Revenue Code of 1986, as amended (the “Code”);   D.  Interest on the Prior Bonds qualified for tax exemption under Section 103 of the  Code; and   E.  The Borrower wishes to refinance the Prior Bonds with tax‐exempt refunding  bonds or other obligations with a longer maturity (the “Refunding Obligations”) to be issued by  the California Enterprise Development Authority (the “Authority”);   F.  The City has jurisdiction over the entire area in which the Project is located; and    G.  The City Council (the “Council”) is the elected legislative body of the City, and as  such is required to approve the issuance of the Bonds under Section 147(f) of the Code, and the  Authority has requested the Council to approve the issuance and sale of the Refunding  Obligations in order to satisfy the public approval requirements of Section 147(f) of the Code;  and   H.  The City has caused a notice of public hearing to be held by the Council with  respect to the issuance of the Refunding Obligations, which notice has been published once in a  newspaper of general circulation in the City at least 14 days prior to the date set for the hearing  and which notice provided a reasonable opportunity for persons of differing views to appear  and be heard at the hearing; and  Not Yet Approved  2  130108 jb 0131029    I.  The Council has duly held the public hearing described above on the date of  adoption of this Resolution, and a reasonable opportunity was provided for all persons present  to be heard and to comment on the issuance and sale of the Refunding Obligations and the  Project.   The Council of the City of Palo Alto RESOLVES as follows:  SECTION 1. Recitals.  This City Council does hereby find and declare that the  above referenced recitals are true and correct.  SECTION 2. Public Hearing.  Pursuant to Section 147(f) of the Code, the City  Council held a public hearing on January 14, 2013 and provided an opportunity to present  arguments both for and against the issuance of the Refunding Obligations and the nature and  location of the Project.  The City Council has further considered all testimony and comments  submitted in connection with the issuance of the Refunding Obligations and the nature and  location of the Project at the public hearing.  SECTION 3. Approval of Refunding Obligation Issue.  After consideration of  comments received at the public hearing, the City Council hereby approves the issuance and  sale of the Refunding Obligations by the Authority for the purpose of providing refinancing for  the Project.  It is the purpose and intent of the Council that this Resolution constitute approval  of the Refunding Obligations by the applicable elected representative of the governmental unit  (a) on behalf of which the Refunding Obligations will be issued, and (b) having jurisdiction over  the area in which the Project is located, in accordance with Section 147(f) of the Code.  //  //  //  //  //  //  //  //  //  //  //  Not Yet Approved  3  130108 jb 0131029   SECTION 4. Authorization.  The officers of the City are hereby authorized and  directed, jointly and severally, to do any and all things and to execute and deliver any and all  documents which they deem necessary or advisable in order to carry out, give effect to and  comply with the terms and intent of this Resolution and the financing transaction approved  hereby.   SECTION 5. Limitation of Liability.  The debts, liabilities and obligations of the  Authority and the Borrower shall not be the debts, liabilities and obligations of the City.    INTRODUCED AND PASSED:       AYES:       NOES:    ABSENT:        ABSTENTIONS:     ATTEST:          ___________________________    ______________________________  City Clerk       Mayor    APPROVED AS TO FORM:    APPROVED:    ___________________________    ______________________________  Senior Asst. City Attorney    City Manager            ______________________________          Director of Administrative           Services Not Yet Approved  1  130107 jb 0131028  Resolution No. _____  Resolution of the Council of the City of Palo Alto Approving Associate  Membership by the City of Palo Alto in the California Enterprise  Development Authority and the Execution of an Associate Membership  Agreement Relating to Associate Membership of the City in the  Authority    R E C I T A L S      A.  The Oshman Family Jewish Community Center (the “Participant”), a nonprofit,  public benefit corporation organized and existing under the laws of the State of California, has  requested that the City conduct a public hearing in order to comply with certain legal  requirements relating to the refinancing of a certain community center developed by the  Participant in and to the benefit of the City;     B.  To facilitate such request, the City desires to become an associate member of  the California Enterprise Development Authority (the “Authority”); and     C.  The form of associate membership agreement (the “Associate Membership  Agreement”) between the City and the Authority has been filed with the City, and the members  of the Council, with the aid of its staff, have reviewed the Associate Membership Agreement;     D.  The City is not a party to the financing agreements and, as such, the debt will not  be secured by any form of taxation or any obligation of the City, it will not represent or  constitute a general obligation of the City;     The Council of the City of Palo Alto RESOLVES as follows:     SECTION 1.   Associate Membership in the Authority.  The Council hereby approves  associate membership by the City in the Authority.      SECTION 2.   Approval of Associate Membership Agreement.  The Council hereby  approves the form of, and authorizes the Mayor, the City Manager or any designee of such  officers to execute the Associate Membership Agreement and authorizes the City Clerk to attest  to such signature, in substantially the form on file with the City Clerk, together with any  changes therein deemed advisable by the official signing the Associate Membership  Agreement.     SECTION 3.   Official Action.  The Mayor, City Manager, City Clerk and other officers  and officials of the City are hereby authorized and directed to take all action and do all things  necessary or desirable hereunder with respect to associate membership pin the Authority  including but not limited to the execution and delivery of any and all agreements, certificates  instruments and other documents which they, or any of them, may deem necessary or  desirable and not inconsistent with the purposes of this resolution.  Not Yet Approved  2  130107 jb 0131028      SECTION 4.   No Liability.  The City has no financial responsibility in connection with  the financing agreements and shall not be obligated on the debt.     INTRODUCED AND PASSED:       AYES:       NOES:    ABSENT:        ABSTENTIONS:     ATTEST:       APPROVED:    __________________________    ______________________________  City Clerk       Mayor    APPROVED AS TO FORM:    ______________________________          City Manager  __________________________     Senior Asst. City Attorney    _____________________________          Director of Administrative Services    City of Palo Alto (ID # 3269) City Council Staff Report Report Type: Action Items Meeting Date: 1/14/2013 City of Palo Alto Page 1 Summary Title: Energy/Compost Facility and Export Options Request for Proposals Approval Title: Energy-Compost Facility and Export Option RFP Approval and Recommendation for the Landfill Capping Considerations From: City Manager Lead Department: Public Works Recommendations Staff recommends that Council: 1. Approve the issuance of the Request for Proposals (RFP) for the development of an Energy/Compost Facility or Export Option; 2. Direct staff to seek regulatory approval for the partial capping of approximately 34 acres of landfill and postponing the capping of approximately 17 acres; 3. Direct Staff to procure a construction contractor to construct landfill cap over the approximate 34 acres in Summer/Fall 2013 with an add alternate to cap the balance of the site; and 4. If regulatory agencies deny the request for postponement of the 17 acres, then direct Staff to proceed with the capping of the entire 51 acres. Executive Summary City of Palo Alto Page 2 This staff report proposes issuance of the attached Request for Proposals (RFP) for an Energy/Compost Facility in Palo Alto or an Export Option and recommends capping most, but not all, of the remaining uncapped portion of the now closed Palo Alto Landfill. The two are related because Palo Alto’s voter-approved Measure E specified a specific 10-acre portion of the former Landfill for consideration of an Energy/Compost Facility. This RFP would continue to implement the Action Plan and Timeline accepted by Council on July 2, 2012 (Staff Report ID # 2557) for consideration of an Energy Compost facility in Palo Alto. The timeline also includes coordination with the Regional Water Quality Control Plant’s (RWQCP) preparation of a Biosolids Facility Plan (Staff Report ID # 3383). Background On April 5, 2010, Council directed staff to initiate a feasiblity study for an Energy/Compost Facility in Palo Alto. Council approved a contract with Alternative Resources, Inc. (ARI) to conduct the study (Staff Report ID # 333:10) in August 2010. In September 2011, a Final Feasibility Report was presented to Council (Staff Report ID # 2557). The Feasibility Report recommended that if the site at Byxbee Park becomes available through the passage of Ballot Measure E, then the City should take further actions to consider anaerobic digestion and other technologies for managing the City’s food scraps, yard trimmings, and biosolids at the site. In November 2011, Palo Alto voters passed Measure E, which removes a 10-acre parcel of land adjacent to the wastewater treatment plant from dedication as parkland for a 10-year term, only for the limited use as an Energy/Compost Facility. Approximately 8-acres of this 10-acre parcel are on the uncapped portion of the Palo Alto Landfill. On February 6, 2012, Council approved Amendment No. 1 to ARI’s contract to allow ARI to assist the City in developing an Action Plan and Timeline (Attachment A) for consideration of an Energy/Compost Facility on the 10-acre parcel or a portion thereof (Staff Report ID # 2557). Also, staff was directed to work with regulatory agencies to obtain approval for postponing the final capping of the landfill for one construction season and to cease the existing composting operation at the landfill as soon as possible. A public meeting to review the Action Plan and Timeline and to obtain community feedback was held on April 25, 2012. City of Palo Alto Page 3 The Action Plan and Timeline for Consideration of an Energy/Compost Facility were developed with the assistance of ARI and were approved by Council on July 2, 2012 (Staff Report ID # 2557). Council also approved Amendment No. 2 with ARI to develop an RFP that will allow the City to obtain firm pricing from vendors interested in providing technologies to manage the City’s food scraps, yard trimmings, and biosolids. This RFP (Attachments D and E) also includes soliciting pricing for export options to allow comparison with the City’s current export pricing for food scraps and yard trimmings. A public meeting was held on October 17, 2012, to discuss the performance specifications for the RFP. Staff addressed community concerns related to odors, greenhouse gas analysis, and financing. On August 6, 2012, staff entered into a Stipulated Notice and Order No. LEA– 2012-01 with the Santa Clara County Department of Environmental Health (i.e., the landfill’s Local Enforcement Agency), which allowed the postponment of the landfill capping until the 2013 construction season. The California Regional Water Quality Control Board (RWQCB) and the California Department of Resources Recycling and Recovery (CalRecycle) also approved this postponement. Discussion Landfill Capping As mentioned above, the City has received regulatory approval for a one year postponement in capping of the final 51-acre Phase IIC of the Palo Alto Landfill. The Landfill is part of Byxbee Park, and the remaining uncapped area can be opened to the public once the capping process is completed. Staff is seeking Council approval on a staff recommended approach to address the current uncapped area as it relates to the Energy/Compost Facility. Staff has identified three options: Option 1 – Seek Approval to Postpone Any Further Capping Staff would contact the regulatory agencies and request another postponment of City of Palo Alto Page 4 the cap construction for all of Phase IIC (see Attachment B for map) until a decision has been made by Council on a Energy/Compost Facility (in early 2014). In terms of site planning, this option provides the greatest flexibility. However, staff has discussed this option with the regulatory agencies and is uncertain that another postponement of the entire uncapped area (51 acres) will be granted without an approved project. Option 2 – Cap Entire Remainder of the Landfill Staff would hire a contractor to cap the entire remainder of the landfill during 2013. This option would place a cap over the full 51 acres currently uncapped and ultimately open up 43 acres as parkland. The 8-acre Measure E area would be capped but not available as parkland until the Energy/Compost Facility has been considered. With this option, if an Energy/Compost Facility is approved by Council, there would be additional project costs to remove the cap, re-grade the landfill to build a pad and construct another cap. The additional cost estimates to remove and reconstruct the cap (after regrading) range from no cost (3.8 acre or smaller option) to $3 million (largest 10 acre option). (These costs do not include site development costs, that depend on the size of the Energy/Compost Facility, only “re-capping” costs ). A 3.8-acre or smaller facility would not require any disturbance of the landfill cap. Option 3 – Capping 34 acres and Seeking Approval to Postpone Capping on Remaining 17 acres Staff would hire a contractor to cap most of the remaining landfill and leave an area open for an Energy/Compost Facility (see Attachment C for map). Staff also would propose to the regulatory agencies that 34 acres would be capped and opened up to the public. The remaining 17-acre area would be available for the development of an Energy/Compost Facility and allow enough uncapped area available to receive garbage spoils from a 5-acre Energy/Compost facility. Should a 10-acre site ultimately by required, removal and reconstruction of the cap for this option is estimated to be approximately $2 million depending on the regrading configuration. No such re-capping costs would occur if the area needed was 5 acres or less. City of Palo Alto Page 5 The selection of any of these landfill capping options will not limit the potential size or functionality of an Energy/Compost Facility because some cap can be removed if a larger facility is selected. However, options that result in the removal and subsequent reconstruction of cap acreage would increase the overall development costs for the Energy/Compost facility. Staff is recommending Option 3 because it allows for an optimal 5-acre Energy/Compost Facility that is the most feasible from an engineering perspective, it eliminates the need for any “recapping” costs for a 5-acre site without drastically changing the character of the landfill’s grading plan, and it opens up an additional 34 acres of parkland. If regulatory agencies deny the request for postponement of the 17 acres, the City will need to comply with the current regulatory requirements and be required to proceed with the capping of the remaining 51 acres. Project Concept and RFP Process to Obtain Pricing for Energy/Compost and Export Options The Energy/Compost Facility or Export Option RFP (Attachments D and E) includes the project concepts, goals, and performance specifications. The performance specifications, which include factors such as size limits, acceptable technologies, business arrangements, and preferences for energy production and compost quality, will be used in the RFP to define the scope of a potential project. Proposals received from vendors will be evaluated and evaluations presented to Council for a decision on whether to: 1) move forward with an Energy/Compost Facility; 2) utilize a vendor-provided export option; 3) continue with current programs for food scrap and yard trimmings management; 4) address biosolids separately on the RWQCP site; or 5) select a combination of two or more strategies. The RFP requires a proposal for all three feedstocks: biosolids, yard trimmings, and food scraps. The RFP also requires a proposal for just yard trimmings and food scraps. This alternative proposal is designed to provide an option for the City to pursue a publicly financed and operated biosolids facility outside of the RFP process. The Biosolids Facility Plan consultant team (see Staff Report ID # 3383) will analyze the Energy/Compost Facility or Export Option proposals and provide a recommendation as to whether the biosolids should be included as a feedstock or City of Palo Alto Page 6 addressed through a RWQCP-funded capital improvement project. The proposals may also provide alternative projects that address one or some other combination of the feedstocks (e.g., a possible alternative may include wet anaerobic digestion for biosolids and food scraps). The RFP asks proposers to provide onsite solutions using anaerobic digestion (wet and/or dry) or gasification technologies. Only technologies proven at full scale will be considered. In order to compare costs, the RFP is requesting that proposers provide solutions that include the design, build (construction), financing, ownership, and operations of an Energy/Compost Facility. If such a facility is approved by Council, the City will enter into a long-term contract (20-30 years) guaranteeing a minimum amount of the feedstock at a set tipping fee. This type of agreement is similar to the agreements the City already has with the Sunnyvale Materials and Recovery Transfer (SMaRT) Station and Kirby Canyon Landfill. The RFP process allows for a selection of a proposal that best meets the needs of the City. The City also will retain the right to reject all proposals. An initial environmental review process is expected to be run concurrently with the RFP process. A preliminary California Environmental Quality Act (CEQA) Checklist is included for review (Attachment F). Much of the foundational work for the environmental review process can be completed before the proposals are received, but to ensure that all possible environmental impacts (and benefits) are fully evaluated, the environmental process will be finalized after a proposal and contract has been accepted by Council. See the Timeline (Attachment A) for details. The Project Concept and RFP process includes multiple points for Council and public input as well as Council approval. Public meetings are included in the Action Plan and Timeline for review of project concepts, project goals, and performance specifications, and for review of the draft RFP. The public will also have the opportunity to comment on the environmental impacts, which will include a full environmental analysis of the proposals. Implementation of Selected Strategy City of Palo Alto Page 7 Following Council’s decision, the City will implement either an Energy/Compost Facility option or an export option. Export options may be those provided by vendors through the RFP process or continuing current practice. The Biosolids Facility Plan will help determine whether the biosolids will be managed as part of an Energy/Compost Facility, through an export option, or through an onsite management option at the RWQCP. Timeline Upon Council approval, the proposed RFP timeline is:  Issue RFP Early February 2013  Mandatory Pre-Proposal Meeting March 12, 2013  Last Date for Submittal of Written Questions July 12, 2013  Proposal Submission Due Date July 31, 2013  Proposal Evaluation August 2013 to January 2014  City Council Review of Options February 2014  CEQA Approval Prior to award of contract  Selection of Preferred Approach/Proposer February 2014  Company Contract Negotiation Mid 2015  Operations no later than July 1, 2017 for Export of Biosolids, Food Scraps and Yard Trimmings; No later than January 1, 2019 for E/C Facility Resource Impact The funds required to evaluate the Energy/Compost Facility or Export Option proposals were included in the $290,224 for ARI contract Amendment No. 2 and were funded by the Refuse Fund, Wastewater Treatment Fund, and Electric Fund as well as the Biosolids Facility Plan consultant contract under consideration (See Staff Report ID # 3383). No additional appropriation from the Wastewater Treatment Fund or Electric Fund is needed. City of Palo Alto Page 8 The funding for the actual capping of the landfill will be addressed when Staff returns to Council with a construction contract. The funds to prepare the design and construction documents have already been approved by Council. Policy Implications Recommendations of this staff report are consistent with existing City policies including the Zero Waste Plan, Baylands Master Plan, and Comprehensive Plan as amended by Ballot Measure E on November 8, 2011. Environmental Review The RFP process itself does not constitute a project under CEQA. A preliminary CEQA checklist (Attachment F) for the purpose of providing information to proposers about potential environmental measures to address is included with the attached RFP. CEQA compliance for the cap construction impacts for the next phase of the landfill is currently being completed. Attachments:  Attachment A - Energy/Compost Facility or Export Option & Biosolids Facility Plan Timeline (PDF)  Attachment B - Existing Conditions Map (PDF)  Attachment C - Partial Landfill Closure Map (PDF)  Attachment D - Final RFP (DOC)  Attachment E - Final RFP Appendices (DOC)  Attachment F - Preliminary CEQA Checklist (DOC) ID EC Facility & Biosolids Facility Plan Timeline Start Finish 1 1. Action Plan Development.Thu 2/2/12 Tue 7/31/12 7 2. LRFP-RWQCP.Fri 6/1/12 Fri 12/14/12 14 3. Organics Resource Recovery Strategy (ORRS).Tue 7/3/12 Mon 3/3/14 15 A. Prepare RFP for waste characterization. Tue 7/3/12 Wed 10/3/12 16 B. City prepares draft ORRS. Tue 7/3/12 Thu 1/31/13 17 C. Pilot residential food scrap collection.Sun 3/3/13 Mon 3/3/14 18 D. Public review of draft ORRS.Thu 1/31/13 Thu 1/31/13 19 E. Forward draft ORRS to City Council.Mon 4/1/13 Mon 4/1/13 24 4. Combined Project Concept/Vendor RFP Process for E/C Facility and Export Op Tue 7/3/12 Mon 5/18/15 25 A. Finalize project concepts and goals;performance specifications; vendor surv Tue 7/3/12 Mon 12/31/12 26 1. Prepare preliminary performance specifications. Tue 7/3/12 Mon 12/31/12 31 2. Prepare local and regional surveys; Analyze survey data.Tue 7/3/12 Wed 9/19/12 35 B. Public review of project concept, goals, and performance specification Wed 10/24/12 Wed 10/24/12 36 C. Draft CEQA checklist & initial study (informational only to be used forperformance specifications).Tue 7/3/12 Mon 10/1/12 37 D. Prepare Vendor RFP.Tue 7/3/12 Mon 12/3/12 38 E. City Council presentation of final Vendor RFP/Authorize release.Mon 1/14/13 Mon 1/14/13 39 F. Mandatory Pre-Proposal Conference Tue 3/12/13 Tue 3/12/13 40 G. Last Day to Submit Written Questions Fri 7/12/13 Fri 7/12/13 41 H. Companies prepare proposals.Mon 2/18/13 Wed 7/31/13 42 I. Proposal evaluation & financial analysis.Thu 8/1/13 Mon 2/3/14 43 J. Public review of proposal evaluation & financial analysis.Tue 2/4/14 Tue 2/4/14 44 K. City Council decision on E/C Facility or Export & Biosolids recommendations/Provide results of biosolids management solutions to RWQCP. Mon 2/17/14 Mon 2/17/14 45 L. Contract negotiation. Thu 2/20/14 Mon 5/18/15 46 1. If City Council selects E/C Facility option.Thu 2/20/14 Mon 5/18/15 47 a. E/C Facility contract negotiation.Thu 2/20/14 Mon 5/18/15 48 b. Contract consideration by City Council withholding contract award until after CEQA is completed. Wed 2/18/15 Sun 5/17/15 49 c. Contract approval by City Council.Mon 5/18/15 Mon 5/18/15 50 2. If City Council selects Export option.Thu 2/20/14 Mon 8/18/14 51 a. Export contract renegotiation and biosolids contract negotiation.Thu 2/20/14 Mon 8/18/14 52 b. Contract approval by City Council.Mon 8/18/14 Mon 8/18/14 75 5. Biosolids Facility Planning.Tue 7/3/12 Mon 7/14/14 76 A. Additional Option Development.Tue 7/3/12 Wed 1/8/14 77 1. Gasification: Monitor San Jose Pilot Study.Tue 7/3/12 Wed 1/8/14 78 2. Gasification: Contact Owners & Vendors of Exist. Gasification Systems.Tue 7/3/12 Fri 11/16/12 79 3. Potential Option to Contract with San Jose - Discussion with SJ Staff.Tue 7/3/12 Wed 1/8/14 80 4. Monitor BAB2E Project Development.Tue 7/3/12 Wed 1/8/14 81 B. Consultant Procurement.Thu 9/20/12 Sun 2/16/14 82 1. Prepare & advertise RFP.Thu 9/20/12 Tue 10/30/12 83 2. Consultant Selection, Award & Contract Negotiation.Wed 11/7/12 Mon 1/14/13 84 3. Consultant evaluates options.Mon 1/14/13 Sun 2/16/14 85 C. Prepare Biosolids Facility Plan (Consultant).Mon 2/17/14 Mon 7/14/14 86 1. Prepare biosolids facility plan.Mon 2/17/14 Mon 7/14/14 87 a. E/C Facility provides results of proposal evaluations to Biosolids Facility Plan. Mon 2/17/14 Mon 2/17/14 88 b. Present biosolids management solutions to City Council.Mon 2/17/14 Mon 2/17/14 89 c. Finalize biosolids facility plan. Wed 2/19/14 Mon 7/14/14 90 d. City Council accepts Biosolids Facility Plan.Mon 7/14/14 Mon 7/14/14 20 6. Landfill Capping.Mon 1/14/13 Fri 12/27/13 21 A. City Council decision on capping design.Mon 1/14/13 Mon 1/14/13 22 B. Design closure.Mon 1/14/13 Thu 3/28/13 23 C. Construct closure.Mon 4/1/13 Fri 12/27/13 53 7. Project Implementation.Tue 7/15/14 Fri 5/13/22 54 A. If E/C facility then (combined):Tue 7/15/14 Tue 12/31/19 55 1. CEQA & Permitting.Tue 7/15/14 Fri 2/19/16 56 a. Scoping and Checklist.Tue 7/15/14 Thu 10/9/14 57 b. EIR Preparation.Tue 7/15/14 Tue 7/14/15 58 c. City Council approval of CEQA.Mon 5/18/15 Mon 5/18/15 59 d. Permitting.Thu 2/19/15 Fri 2/19/16 60 2. Design/Construction.Tue 5/19/15 Fri 5/25/18 61 3. Operations.Fri 3/30/18 Tue 12/31/19 62 C. If export (combined):Tue 7/15/14 Fri 5/13/22 63 1. Continue service with Green Waste or Modify organics management.Tue 7/15/14 Mon 5/20/19 64 2. New Export Option Sat 7/1/17 Wed 7/15/20 65 3. Transition/Handling/Startup of biosolids.Mon 8/18/14 Fri 6/30/17 66 4. Service commences for biosolids.Sat 7/1/17 Fri 5/13/22 67 B. If Biosolids Project Implementation (separate).Tue 7/15/14 Tue 12/31/19 68 1. CEQA EIR.Tue 7/15/14 Tue 8/18/15 69 2. City Council accepts CEQA document. Tue 8/18/15 Tue 8/18/15 70 3. Bid and Award. Tue 8/18/15 Fri 12/18/15 71 4. Design Development and Final Design. Fri 10/16/15 Wed 2/15/17 72 5. Construction. Fri 2/17/17 Sat 12/15/18 73 6. Testing, Performance Verification and Startup.Mon 10/15/18 Sat 12/15/18 74 7. Full Operation (retire incinerators when ready). Sat 12/15/18 Tue 12/31/19 F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M JHalf 1, 2012 Half 2, 2012 Half 1, 2013 Half 2, 2013 Half 1, 2014 Half 2, 2014 Half 1, 2015 Half 2, 2015 Half 1, 2016 Half 2, 2016 Half 1, 2017 Half 2, 2017 Half 1, 2018 Half 2, 2018 Half 1, 2019 Half 2, 2019 Half 1, 2020 Half 2, 2020 Half 1, 2021 Half 2, 2021 Half 1, 20222012201320142015201620172018201920202021 2 Update: Wed 1/2/13 Energy-Compost Facility & Biosolids Facility Plan TimelineJanuary 14, 2013 Design Grade Park Maintenance Road/Trail Phase Boundary Landfill Border Park Trails Temporary Fenceline Open to the Public Vegetative Soil W A T E R Q U A L I T Y C O N T R O L P L A N T Temporary Vegetative Soil Stockpile Approximately 100 ft Wide. Byxbee Park Restroom and Parking 51 Acres Revised 11/19/12 BYXBEE PARK LEGEND PARTIAL CAPPING OPTION FOR 2013 REVISED FINAL COVER GRADING PLAN PALO ALTO LANDFILL FIGURE 1 45 ACRES (OPENED IN 2011) 29 ACRES (OPENED IN 1991) NOTES APPROXIMATELY 1 ACRE TEMPORARY VEGETATIVE SOIL STOCKPILE 34.4 ACRES (AREA OF NEAR-TERM CLOSURE CAP) 5.3 ACRES 16.8 ACRES LEFT UNCAPPED 1784-13d Request for Proposals to Establish an Energy/Compost Facility or Export Food Scraps, Yard Trimmings and Biosolids Issued by: City of Palo Alto, California February 2013 Attachment D FINAL 12/28/12 i Table of Contents Definitions ...................................................................................................................... D-1 1.0 INTRODUCTION .................................................................................................. 1-1 1.1 Background ................................................................................................. 1-1 1.2 Intent of Request for Proposals .................................................................. 1-2 1.3 Quantity and Characteristics of Feedstocks ................................................ 1-3 1.4 Sites ............................................................................................................ 1-4 1.5 RFP Approach ............................................................................................ 1-5 1.6 Summary of Services Requested ............................................................... 1-5 1.7 Financing .................................................................................................... 1-8 1.8 Site Lease and Rent ................................................................................... 1-9 1.9 Option to Purchase E/C Facility, Require E/C Facility Removal ................. 1-9 1.10 Contract Administration............................................................................... 1-9 1.11 Schedule ..................................................................................................... 1-9 1.12 Evaluation of Proposals ............................................................................ 1-10 1.13 Consultant Team ...................................................................................... 1-11 1.14 Content of RFP ......................................................................................... 1-11 2.0 DESCRIPTION OF SITES AND EXISTING FACILITIES ..................................... 2-1 2.1 Landfill Site ................................................................................................. 2-1 2.2 Regional Water Quality Control Plant Site and Facilities ............................ 2-3 3.0 FEEDSTOCK SUPPLY AND CHARACTERISTICS ............................................. 3-1 3.1 Yard Trimmings and Food Scraps .............................................................. 3-1 3.2 Biosolids ..................................................................................................... 3-2 4.0 DESCRIPTION OF PROPOSED PROJECT, SCOPE OF SERVICES AND SCHEDULE ........................................................... 4-1 4.1 General Description of Project .................................................................... 4-1 4.1.1 E/C Facility ....................................................................................... 4-2 4.1.2 Export ............................................................................................... 4-4 4.2 Scope of Services and Schedule ................................................................ 4-5 4.2.1 Role of City ...................................................................................... 4-5 4.2.2 Role of Contractor in General .......................................................... 4-6 4.2.3 Permitting Process ........................................................................... 4-8 4.2.4 Utilities ............................................................................................. 4-8 Table of Contents (Continued) FINAL 12/28/12 ii 4.2.5 City Option to Purchase E/C Facility, Require E/C Facility Removal ...................................................... 4-11 4.2.6 Schedule for Delivery of Services .................................................. 4-11 4.3 E/C Facility Requirements ........................................................................ 4-12 4.4 General Design and Construction Standards ............................................ 4-13 4.5 Design Requirements ............................................................................... 4-13 4.6 Environmental Design and Performance Requirements ........................... 4-13 4.7 Construction Requirements ...................................................................... 4-15 4.8 Start-up Test and Acceptance Test Requirements ................................... 4-16 4.8.1 Start-up Testing .............................................................................. 4-16 4.8.2 Acceptance Test ............................................................................ 4-16 4.9 Operation and Maintenance Requirements .............................................. 4-19 4.10 Records and Reports ................................................................................ 4-20 4.11 Staffing ...................................................................................................... 4-20 4.12 Training ..................................................................................................... 4-20 4.13 Community Relations ................................................................................ 4-20 4.14 Public Information Program ...................................................................... 4-21 4.15 Performance Guarantees .......................................................................... 4-21 5.0 KEY TERMS AND CONDITIONS OF CONTRACT .............................................. 5-1 5.1 Feedstock Delivery Requirements .............................................................. 5-1 5.1.1 Minimum Annual Deliveries .............................................................. 5-1 5.1.2 Maximum Annual Deliveries ............................................................. 5-2 5.1.3 Application of Acceptable Tipping Fee and Excess Tonnage Fee ... 5-2 5.1.4 Minimum and Maximum Deliveries Specified ................................... 5-2 5.1.5 Periodic Delivery Reset .................................................................... 5-4 5.1.5.1 Periodic Delivery Reset of Assuming 20-Year Operating Period ................................................. 5-4 5.1.5.2 Periodic Delivery Reset of Assuming 30-Year Operating Period ................................................. 5-5 5.2 Fees, Payments and Compensation ........................................................... 5-5 5.2.1 Construction-Related Payments to Contractor ................................. 5-5 5.2.2 Operations Payment to Contractor ................................................... 5-6 5.2.3 Processing Service Fee ................................................................... 5-7 5.2.4 Contractor Payments and Costs ...................................................... 5-9 5.2.5 Most Favored Pricing ..................................................................... 5-10 5.2.6 Host Community Payment for Spot Market Feedstock ................... 5-11 5.2.7 Cost Savings Sharing ..................................................................... 5-12 5.2.8 Payment ......................................................................................... 5-13 Table of Contents (Continued) FINAL 12/28/12 iii 5.2.9 Compensation Adjustments ........................................................... 5-13 5.2.10 Annual True-up/Settlement Process ............................................ 5-14 5.3 Ownership and Financing ......................................................................... 5-15 5.4 Option to Acquire or Remove the E/C Facility ........................................... 5-16 5.5 Failure to Achieve Project Financing ........................................................ 5-16 5.6 Design and Construction of the E/C Facility .............................................. 5-17 5.6.1 Design-Construct Responsibility .................................................... 5-17 5.6.2 Permits and Licenses ..................................................................... 5-17 5.6.3 Applicable Employment Laws ........................................................ 5-17 5.6.4 Site Conditions ............................................................................... 5-17 5.6.5 Capital Modifications and Improvements ....................................... 5-18 5.7 Operations and Maintenance .................................................................... 5-18 5.7.1 Operations Generally ..................................................................... 5-18 5.7.2 Maintenance Generally .................................................................. 5-20 5.7.3 Safety and Security ........................................................................ 5-20 5.7.4 No Nuisance .................................................................................. 5-20 5.8 Performance ............................................................................................. 5-21 5.8.1 Performance Guarantees ............................................................... 5-21 5.8.2 Compliance and Remedies ............................................................ 5-21 5.8.3 Damage Provisions ........................................................................ 5-22 5.9 Default, Termination and Dispute Resolution ............................................ 5-22 5.9.1 Remedies for Breach ..................................................................... 5-22 5.9.2 Events of Default by the Contractor without Further Notice and Cure Opportunity ............................... 5-22 5.9.3 Events of Default by the Contractor with Notice and Cure Opportunity ........................................................ 5-22 5.9.4 Purchase of E/C Facility in Event of Default ....................................................................................................... 5-23 5.9.5 Events of Default by the City .......................................................... 5-23 5.9.6 No Consequential or Punitive Damages ........................................ 5-23 5.9.7 City Step-In Rights ......................................................................... 5-23 5.10 General Provisions ................................................................................... 5-24 5.10.1 Term ......................................................................................... 5-24 5.10.2 Comprehensive Inspections...................................................... 5-24 5.10.3 Contract Security – Guaranty.................................................... 5-25 5.10.4 Contract Security – Construction Performance Bond ............... 5-25 5.10.5 Contract Security – Operations Bond ....................................... 5-25 Table of Contents (Continued) FINAL 12/28/12 iv 5.10.6 Contract Security – E/C Facility Demolition, Removal and Site Restoration Financial Assurance .............................. 5-26 5.10.7 Contract Security – Letter of Credit ........................................... 5-27 5-10-8 Compost Production and Provision to City Residents ............... 5-27 5.10.9 Local Goods and Services ........................................................ 5-28 5.10.10 Required Insurance .................................................................. 5-28 5.10.11 Indemnification by the Contractor ............................................. 5-29 5.10.11.1 E/C Facility Engineering and Design ........................... 5-29 5.10.11.2 E/C Facility Construction and Operation ..................... 5-30 5.10.11.3 Export .......................................................................... 5-30 5.10.12 Assignment ............................................................................... 5-30 5.10.13 Uncontrollable Circumstances .................................................. 5-30 5.10.14 Ground Lease ........................................................................... 5-31 5.10.15 Governing Law .......................................................................... 5-32 5.10.16 Forum and Venue ..................................................................... 5-32 5.10.17 Changes in Law ........................................................................ 5-32 5.10.18 Product Risks ............................................................................ 5-33 5.10.19 Dispute Resolution .................................................................... 5-33 6.0 PROCUREMENT PROCESS ................................................................................ 6-1 6.1 Overview of Procurement Process ............................................................ 6-1 6.2 General Conditions of Procurement ............................................................ 6-1 6.2.1 Mandatory Pre-Proposal Meeting .................................................. 6-1 6.2.2 Proposal Submission ..................................................................... 6-2 6.2.2.1 Proposal Deadline and Submittal Format ........................... 6-2 6.2.2.2 Completeness ..................................................................... 6-2 6.2.3 Contact Person .............................................................................. 6-2 6.2.4 Additional Information/Questions ................................................... 6-3 6.2.5 Access to RWQCP and Potential Landfill Site ............................... 6-4 6.2.6 Modified Submissions.................................................................... 6-4 6.2.7 Late Submissions/Late Modifications ............................................ 6-4 6.2.8 RFP Postponement/Cancellation .................................................. 6-4 6.2.9 Withdrawal from Procurement Process ......................................... 6-5 6.2.10 Costs Incurred by Proposer ........................................................... 6-5 6.2.11 Oral Presentation/Interview ........................................................... 6-5 6.2.12 Exceptions to this RFP .................................................................. 5-5 6.2.13 Proprietary/Confidential Information .............................................. 5-6 6.2.14 Rules, Regulations, and Licensing Requirements ......................... 5-6 6.2.15 Disclosure ...................................................................................... 5-7 6.2.16 Personnel ...................................................................................... 5-7 6.2.17 Responsible Wages and Benefits .................................................. 5-7 Table of Contents (Continued) FINAL 12/28/12 v 6.2.18 Period of Acceptance and Proposal Bond or Alternative Security Requirements .......................................... 5-7 6.2.19 City Rights and Options ................................................................. 5-8 6.3 Procurement Schedule ............................................................................. 5-10 6.4 Conflicts of Interest and Lobbying Prohibition ........................................... 5-11 7.0 PROPOSAL EVALUATION .................................................................................. 7-1 7.1 Evaluation Process ..................................................................................... 7-1 7.2 Minimum Evaluation Criteria ....................................................................... 7-2 7.3 Comparative Evaluation Criteria ................................................................. 7-4 7.4 Clarification of Proposals ............................................................................ 7-4 7.5 Contract Negotiations ................................................................................. 7-5 7.6 Contract Authorization ................................................................................ 7-5 8.0 PROPOSAL REQUIREMENTS ............................................................................. 8-1 8.1 Proposal Submission .................................................................................. 8-1 8.1.1 Proposal Deadline and Submission Address ................................... 8-1 8.1.2 Proposers Must Submit Base Case Proposal and Alternative Proposal for Food Scraps and Yard Trimmings ............................. 8-2 8.1.3 Number of Copies, Format and Electronic Version .......................... 8-3 8.2 Transmittal Letter, Proposal Security ......................................................... 8-4 8.2.1 Proposal Transmittal Letter and Signature Requirements ................ 8-4 8.2.2 Proposal Bond or Alternative Security .............................................. 8-5 8.3 General Format, Organization and Content of Proposal ............................ 8-6 8.4 Volume I: Executive Summary .................................................................. 8-7 8.5 Volume II: Technical Qualifications Proposal ............................................. 8-8 8.5.1 Experience of Proposer in Permitting, Financing, Design, Construction and Operation of Similar Solid Waste Facilities and Services .................................................................. 8-8 8.5.2 Regulatory, Permitting Experience ................................................. 8-9 8.5.3 Regulatory Compliance .................................................................. 8-9 8.5.4 Product Sales Experience............................................................. 8-10 8.5.5 Record of Contract Performance .................................................. 8-10 8.5.6 Labor Relations ............................................................................. 8-10 8.5.7 Safety Record ............................................................................... 8-10 8.5.8 References and Reference Project Descriptions .......................... 8-10 8.5.9 Additional Qualifications Information ............................................. 8-12 8.5.10 Proposal Forms ............................................................................ 8-12 Table of Contents (Continued) FINAL 12/28/12 vi 8.6 Volume III: Technical Approach Proposal ............................................... 8-12 8.6.1 Project Management and Staffing Plan ....................................... 8-12 8.6.2 Record of Performance and Reliability of Technology Proposed ............................................................ 8-12 8.6.3 Permitting Plan ............................................................................ 8-13 8.6.4 Design, Construction and Start-Up Plan ...................................... 8-13 8.6.5 Operation and Maintenance Plan ................................................ 8-15 8.6.5.1 Operation and Maintenance ............................................. 8-15 8.6.5.2 Repair and Replacement .................................................. 8-16 8.6.5.3 Residuals Management .................................................... 8-17 8.6.5.4 Odor Control ................................................................. 8-1617 8.6.5.5 Noise Control .................................................................... 8-17 8.6.5.6 Light Impact Mitigation ...................................................... 8-17 8.6.6 Product Marketing Plan ............................................................... 8-18 8.6.7 Community Relations Plan .......................................................... 8-18 8.6.8 Proposed Project Schedule ......................................................... 8-18 8.6.9 Additional Technical Information ................................................. 8-18 8.6.10 Proposal Forms ........................................................................... 8-18 8.7 Volume IV: Business Proposal ................................................................ 8-19 8.7.1 Proposer’s Organization ................................................................. 8-19 8.7.2 Conformance to Business and Contractual Terms and Risk Assumed by Proposer ................................................... 8-19 8.7.3 Limits on Guarantor Liability, if Any ................................................ 8-20 8.7.4 Financial Resources and Strength of Proposer/Guarantor ............. 8-20 8.7.5 Experience as Guarantor ............................................................... 8-21 8.7.6 Financing Plan ............................................................................... 8-21 8.7.7 Additional Business Information – Use of Local Labor, Goods and Services ..................................................................... 8-23 8.7.8 Proposal Forms – General ............................................................. 8-23 8.8 Volume V: Price and Pricing Proposal Forms ......................................... 8-23 9.0 APPENDICES ....................................................................................................... 9-1 Appendix A: Proposal Forms Appendix B: Pricing Proposal Forms Appendix C: Landfill Site Information, Capping Plans, Preliminary Site Preparation and Anticipated Cost, Landfill Gas Projections Appendix D: RWQCP Site Information, RWQCP Energy Needs Table of Contents (Continued) FINAL 12/28/12 vii Appendix E: Quantity and Characteristics of City Food Scraps, Yard Trimmings and Biosolids Appendix F: Appendix F-1: E/C Facility and Export Requirements Appendix F-2: Utility Information Appendix G: Preliminary CEQA Checklist Appendix H: Reserved for Future Use Appendix I: Assignment Provisions Appendix J: Appendix J-1: Form of Guaranty Agreement (Example for E/C Facility) Appendix J-2: Form of Guaranty Agreement (Example for Export) Tables Table 3-1: Projected Quantities of Biosolids ................................................................ 3-2 Table 5-1: Minimum Annual Delivery Requirements and Maximum Annual Delivery Thresholds...................................................... 5-4 Table 7-1: Minimum Evaluation Criteria ...................................................................... 7-3 Table 7-2: Non-Cost Proposal Comparative Evaluation Criteria .................................. 7-6 FINAL 12/28/12 D-1 DEFINITIONS “Acceptable Feedstock” means source separated food scraps, yard trimmings and biosolids from municipal wastewater treatment that are available for delivery to the E/C Facility for processing or for Export, and is not Unprocessibles, pathological or toxic material, liquid wastes, or any material listed by the State or a Federal agency as hazardous waste. Acceptable Feedstock includes residential, commercial and industrial waste that meets the criteria defined above, clean wood waste that is not painted or pressure treated, and agricultural waste suitable for anaerobic digestion or gasification. “Acceptable Feedstock Tipping Fee” or “AFTF” or “Tip Fee” means the amount paid by the City for each ton of City Acceptable Feedstock delivered to the E/C Facility or for Export, as set forth in Section 5 of this RFP. “Acceptance” means approval by the City that the Contractor has successfully performed the Acceptance Tests and successfully met the Acceptance Standards for the E/C Facility or Export. “Acceptance Date” means the date on which Acceptance of the E/C Facility or Export occurs or is deemed to have occurred. “Acceptance Standards” or “Acceptance Criteria” means the performance standards for the E/C Facility or Export based on this RFP, the Contractor's response to this RFP and any subsequent Contract, which the Contractor will meet in order to achieve Acceptance. “Acceptance Tests” means the tests for Acceptance, which will be developed between the parties and incorporated into the Contract. “Adjustment Factor” means the change in the Consumer Price Index (as such shall be applied to a coming Contract Year) for the preceding 12 months, calculated as of May 1 of every Contract Year, and applied to costs, fees and prices as described in Section 5 of this RFP. “Anaerobic Digestion” means for purposes of this RFP, a biological process that converts the biodegradable portion of Acceptable Feedstock to biogas and digestate in an environment absent oxygen. The biogas is typically used to generate electricity and heat, or to manufacture a fuel. The digestate may be further composted and cured. “Annual True-Up/Settlement Process” means the annual reconciliation performed for each Contract Year between the payments made during the Contract Year by the City to the Contractor and by the Contractor to the City and the actual amount(s) calculated to be payable by each to the other, such calculation being made after the end of the respective Contract Year. The Annual True-Up/Settlement Process is described in Section 5. “Annual Feedstock Throughput Guarantee” means the amount of Acceptable Feedstock that the Contractor and Guarantor shall guarantee to be processed annually at the E/C Facility or accepted for Export. FINAL 12/28/12 D-2 “Appendix” means an appendix to this RFP. “Applicable Law” means any law, rule, code, standard, regulation, requirement, consent decree, consent order, consent agreement, permit, guideline, action, determination or order of, or legal entitlement issued or deemed to be issued by, any Governmental Body having jurisdiction, applicable from time to time to any activities associated with the siting, design, construction, equipping, financing, ownership, start-up testing, Acceptance, operation, maintenance, repair and replacement of any part of the E/C Facility or Export, the transfer, handling, transportation, marketing, disposal or processing of products and Residuals, and any other obligations of the parties under the Contract. “Availability Guarantee” means the percentage of Rated Capacity of the E/C Facility that shall be available for processing Acceptable Feedstock on average during any Contract Year as guaranteed by the Contractor and Guarantor. ‘‘Biosolids” means the wastewater residuals generated at the Regional Water Quality Control Plant. Biosolids include: solids separated during the wastewater treatment process; scum which is skimmed from the surface of the wastewater treatment tanks. Biosolids may be dewatered biosolids (at approximately 26% solids) or undewatered biosolids (at approximately 3.3% solids). Biosolids also includes Fats, Oils & Grease (FOG) which is delivered to the RWQCP for further treatment. “Business Day” means any day when City governmental offices are open to serve the public and which is not a Saturday, Sunday or legal holiday under Applicable Law. “Bypassed Feedstock” means Acceptable Feedstock delivered to the E/C Facility which could not be processed at the E/C Facility and must be directed to another management or disposal facility. Bypassed Feedstock includes both Acceptable Feedstock diverted from the E/C Facility before unloading and Acceptable Feedstock accepted, unloaded but not processed at the E/C Facility, and reloaded and diverted. “Change-in-Law” means any of the following acts, events, or circumstances to the extent that compliance therewith materially increases or decreases the cost of performing or materially increases or decreases the scope of a party's obligations under the Contract: (1) the adoption, amendment, promulgation, issuance, modification, repeal or written change in administrative or judicial interpretation of any Applicable Law on or after the Contract Date, unless such Applicable Law was on or prior to the Contract Date duly adopted, promulgated, issued or otherwise officially modified or changed in interpretation, in each case in final form to become effective without any further action by any Governmental Body; (2) the order or judgment of any Governmental Body issued on or after the Contract Date (unless such order or judgment is issued to enforce compliance with Applicable Law which was effective as of the Contract Date) to the extent such order or judgment is not the result of willful or negligent action, error or omission or lack of reasonable diligence of the Contractor or of any of the FINAL 12/28/12 D-3 City, whichever is asserting the occurrence of a Change in Law; provided, however, that the contesting in good faith or failure in good faith to contest any such order or judgment shall not constitute or be construed as such a willful or negligent action, error or omission or lack of reasonable diligence; or (3) except with respect to any Governmental Approval required for the Facility as provided in item (b) below pertaining to exclusions from "Change in Law", the denial of an application for, a delay in the review, issuance or renewal of, or the suspension, termination, or interruption of any Governmental Approval, or the imposition of a term, condition or requirement which is more stringent or burdensome than the Contract Standards in connection with the issuance, renewal or failure of issuance or renewal of any Governmental Approval, to the extent that such occurrence is not the result of willful or negligent action, error or omission or a lack of reasonable diligence of the Contractor or the City, whichever is asserting the occurrence of a Change in Law; provided, however, that the contesting in good faith or the failure in good faith to contest any such occurrence shall not be construed as such a willful or negligent action or lack of reasonable diligence. It is specifically understood, however, that none of the following shall constitute a "Change in Law"; (1) a change in the nature or severity of the actions typically taken by a Governmental Body to enforce compliance with Applicable Law which was effective as of the Contract Date; (2) all matters relating to the Contractor's assumption of the permitting risk for the E/C Facility or Export in connection with obtaining and maintaining Federal, State or Local Governmental Approvals of the design, construction and operation of the Facility; and (3) any event that affects generally applicable working conditions or standards that is not specific to the solid waste and wastewater management industry. “Change Order” means any approved request or written authorization that is agreed to by the parties in writing that authorizes or requires additional or extra services or work or deletes or omits services or work. A Change Order may also modify a schedule of performance or otherwise alter the services or work to be performed. “City” means the City of Palo Alto, California. “Commencement Date” means the date on which (1) all Conditions Precedent have been satisfied for a particular project activity, including but not limited to the issuance of a Notice to Proceed for that activity, and (2) the Contractor commences services for that activity as described in the Contract. "Commercial Operation Date" means that date on which commercial operations commence; i.e., the Acceptance Date. FINAL 12/28/12 D-4 “Conditions Precedent” means all conditions that must be satisfied by the Contractor and by the City prior to the issuance of a Notice to Proceed to the Contractor to commence service. "Construction" or “Construction Work” means all work and materials for permitting, financing (if required), design, construction, start-up and acceptance testing of the E/C Facility or Export, and all work required for Acceptance of the E/C Facility or Export, under the terms of the Contract. “Consumer Price Index” or “CPI” means the Consumer Price Index, as defined by the Department of Labor, U.S. Bureau of Labor Statistics, All Items, Not Seasonally Adjusted, for San Francisco-Oakland-San Jose (Series No. CUURA422SA0LE), or its successor. “Contract” means the agreement between the City and the Contractor for satisfying the obligations of the parties as specified by this RFP and as further negotiated and made part of the agreement. “Contract Date” means the date of delivery of the Contract as executed by the parties thereto. “Contract Principles” means the Contract Principles set forth in Section 5 of this RFP, upon which the Contract will be based. “Contract Services” means all services necessary to be provided by the Contractor to satisfy the obligations of the Contract. "Contract Standards" means the terms, conditions, methods, techniques, practices and standards imposed or required by: (1) Applicable Law; (2) the Design Requirements; (3) the Performance Guarantees; (4) Good Engineering and Construction Practice; (5) Good Industry Practice; (6) the Operation and Maintenance Manual; (7) applicable equipment manufacturers' specifications; (8) applicable Insurance Requirements; and (9) any other standard, term, condition or requirement specifically provided in this Contract to be observed by the Contractor. The Contractor shall be obligated to comply only with those Contract Standards which are applicable in any particular case. Where more than one Contract Standard applies to any particular performance obligation of the Company hereunder, each such applicable Contract Standard shall be complied with. In the event there are different levels of stringency among such applicable Contract Standards, the most stringent of the applicable Contract Standards shall govern. “Contract Year” means a 365/366-day period commencing on July 1 of each calendar year and ending on June 30 of each succeeding calendar year, except that the first Contract Year shall begin upon the Commencement Date and shall end upon the succeeding June 30, and the final Contract Year shall terminate upon the conclusion of twenty (20) years of operation, plus any renewals or extensions. “Contractor” means the entity executing the Contract with the City. FINAL 12/28/12 D-5 “Corrective Maintenance” means non-routine and unscheduled repair activities required for operational continuity, safety, and performance generally due to failure or to avert failure of the equipment, vehicles or facilities or some component thereof. “Day” means a calendar day of twenty-four hours measured from midnight to the next midnight. “Design Criteria” means the requirements as set forth in Section 4 and Appendix F of this RFP. “Design Requirements” means the Design Standard of Care, the Design Criteria and all regulatory requirements relating to the design of any such particular work as to which this term may be applied. “Design Standard of Care” means those methods, techniques, standards and practices which, at the time they are to be employed and in light of the circumstances known or reasonably believed to exist at such time, are generally accepted as Good Industry Practice in the municipal solid waste and wastewater industries as practiced in the United States and the State, and are consistent with the same degree of skill and care ordinarily exercised by the members of this profession. “Design Work” means engineering and architectural design services provided with respect to any portion of the Facility which are by the terms of the Contract required to be undertaken in compliance with the Design Requirements. “E/C Facility” or “Facility” is the anaerobic digestion facility and/or gasification facility to be developed by the Contractor, as defined in Section 4 and Appendix F of this RFP. “Effluent” means wastewater discharged to the City’s sanitary sewer system from the E/C Facility. “Effluent Requirements” means any wastewater effluent limitations required by Applicable Law. “Environmental Performance Guarantee” shall mean the Contractor’s guarantee of environmental performance as described in Section 4 of this RFP. It shall include noise, odor and other environmental performance guarantees. “Evaluation Committee” means the committee formed by the City to evaluate Proposals as set forth in Section 7 of this RFP. “Event of Default” has the meaning set forth in the Contract Principles. “Excess Tonnage Fee” means fee paid by the City to the Contractor for Acceptable Feedstock delivered (or caused to be delivered) above the Maximum Annual Delivery Threshold, as set forth in Section 5 of this RFP. FINAL 12/28/12 D-6 “Exit Transition Plan” means the transition services, including plans for temporary, short-term, operational procedures and activities relating to and after contract termination, to be undertaken by the Contractor as more fully specified in Section 4 and Appendix F of this RFP. “Export” means the transport and processing/management of Acceptable Feedstock outside of the RWQCP Site or 10-acre Landfill Site in Palo Alto in accordance with the requirements of this RFP. “Feedstock Throughput Guarantee” or “Acceptable Feedstock Throughput Guarantee” means the tons of Acceptable Feedstock that the Contractor and Guarantor shall guarantee the E/C Facility or Export shall be capable of processing daily, in accordance with the Rated Capacity. “Fiscal Year” means a year commencing on July 1st and ending on June 30th. “Food Scraps” means material resulting from the production, processing or purchase of food for consumption, but is no longer intended for such consumption, and food-soiled paper. Food scraps includes residential and commercial food waste from residential food scrap collection, as well as from commercial food facilities, food processing establishments, grocery stores, institutional cafeterias (e.g., schools and hospitals), restaurants, concessions (e.g., from sporting and entertainment venues), and related sources. “Gasification” means for purposes of this RFP, a thermal process operated as sub- stoichiometric conditions theoretically necessary for complete combustion that changes the composition of the organic portion of Acceptable Feedstock to produce a synthesis gas, typically for conversion to electricity, heat, and/or fuel. It includes pyrolysis, high and low temperature gasification and plasma gasification. It does not include incineration or combustion of feedstock at stociometric conditions necessary for complete combustion of carbon and hydrogen for conversion to CO2 and water, or with use of excess air above stoichiometric conditions to achieve complete combustion. “Good Industry Practice” means those methods, techniques, standards and practices which, at the time they are to be employed and in light of the circumstances known or reasonably believed to exist at such time, are generally accepted as prudent in the municipal solid waste and municipal wastewater industries as practiced in California and in the United States. “Good and Accepted Construction Practice” means the methods, techniques, standards and practices which, at the time they are to be employed and in light of the circumstances known or reasonably believed to exist at such time, are generally recognized and accepted as a good workman-like manner in the construction industry as practiced in California and the United States, including that for municipal solid waste management and municipal wastewater treatment. "Good and Accepted Operating Practice" means the methods, techniques, standards and practices which, at the time they are to be employed and in light of the circumstances FINAL 12/28/12 D-7 known or reasonably believed to exist at such time, are generally recognized and accepted as good industry practices in the solid waste management industry and municipal wastewater treatment industry as practiced in California and the United States. "Governmental Approval” means any approval by a Governmental Body necessary for the provision of services to be performed by the parties under the Contract. “Governmental Body” means any government entity with jurisdiction in whole or in part regarding services to be performed by the parties under the Contract. Governmental bodies include, but are not limited to, City, County, State and Federal agencies and all successors thereto. “Guarantor” means the entity that will execute the Guaranty. “Guaranty” means the Guaranty Agreement between the Contractor and the Guarantor guarantying the performance by the Contractor of its obligations to the City under the Contract. “Hazardous Waste” has the meaning given such term under the Resource Conservation and Recovery Act, 42 USC § 690 et seq., and any similar Applicable Law, including regulations of any State agencies with jurisdiction over the project and/or the Facility. “Landfill” means the City Landfill. “Landfill Site” means the parcel of land at the City Landfill as described in Section 2 of this RFP that is to be leased by the City to the Contractor for purposes of developing and operating the E/C Facility. Such parcel shall be limited to restrictions as included in Measure E, limiting such parcel to 10 acres. “Legal Entitlement” means all permits, licenses, approvals, authorizations, consents and entitlements of whatever kind and however described which are required under Applicable Law (of the United States, the State of California, Santa Clara County, the City or other jurisdictions) to be obtained or maintained by any person with respect to the construction of the E/C Facility, operation of the E/C Facility, or providing Export services, or the performance of any other obligation of the Contractor under the Contract. “LEED” means Leadership in Energy and Environmental Design as defined by the U.S. Green Building Council. “Maintenance” means those routine and/or repetitive activities required or recommended by the equipment manufacturers or by the Contractor to maximize the service life of the E/C Facility, consistent with Good Industry Practice, and Corrective Maintenance, Preventive Maintenance and Predictive Maintenance. “Maximum Annual Delivery Threshold” means the amount of Acceptable Feedstock the City shall be allowed to deliver (or cause to be delivered) each Contract Year before incurring Excess Tonnage Fees, as set forth in Section 5 of this RFP. FINAL 12/28/12 D-8 “Minimum Annual Delivery Requirement” means the amount of Acceptable Feedstock the City shall be required to deliver (or cause to be delivered) each Contract Year, as set forth in Section 5 of this RFP. “Noise Guarantee” means the guarantee, as included in the Environmental Performance Guarantee and guaranteed by the Contractor and Guarantor based on the Noise Control Plan proposed. “Notice to Proceed” means the written authorization issued to the Contractor by the City, requiring the Contractor to commence the design and construction of the E/C Facility, the operation of the E/C Facility, Export, or some other activity as applicable. “NPDES” means National Pollution Discharge Elimination System. “Odor Guarantee” means the guarantee, as included in the Environmental Performance Guarantee and guaranteed by the Contractor and Guarantor based on the Odor Control Plan proposed. “O&M” means Operation, Maintenance and Management of the E/C Facility or Export in accordance with Good Industry Practice, Good and Accepted Operating Practice, and the terms of the Contract. “Participating Firm” means all firms that will be significant participants in providing the services required by the Contract as set forth in Proposal Form 7. “Performance Guarantees” has the meaning as set forth in Section 4 and Section 5 of this RFP. “Periodic Delivery Reset” means the periodic reset of the Minimum Annual Delivery Requirement and the Maximum Annual Delivery Threshold as set forth in Section 5 of this RFP. “Plant Manager” means the manager employed by the Contractor to manage the operation and maintenance of the E/C Facility or Export. “Predictive Maintenance” means those non-repetitive and non-routine maintenance activities that are identified as necessary during annual testing and inspections conducted in accordance with the O&M manual that are outside of Preventive Maintenance and Corrective Maintenance. “Preferred Proposer” means the Proposer(s) selected by the City with which it intends to enter into Contract negotiations. “Preventive Maintenance” means those maintenance activities that are routine or repetitive in nature required by the equipment or facility manufacturer or the Contractor to maximize the service life and operational efficiency of the equipment, vehicles and facility, listed in the O&M manual, required by warranties or otherwise identified as necessary or desirable in accordance with Good Industry Practice. FINAL 12/28/12 D-9 “Processing Service Fee” or “PSF” means the monthly amount paid to the Contractor by the City, consisting of the sum of various fees and costs as set forth in Section 5 of this RFP. “Project Schedule” means the Contractor’s schedule for completing construction; i.e., the scope of work during permitting, financing, design, construction, start-up and acceptance testing for the E/C Facility or commencing Export. “Proposal” means a document(s) submitted for consideration in response to this RFP. “Proposal Form” means any one of the proposal forms attached to this RFP in Appendices A and B and which must be included by Proposers in their Proposals. “Proposer” means the entity submitting a Proposal in response to this RFP, including the Guarantor and all entities sponsoring the Proposal or proposing to act as a Participating Firm. “Rated Capacity” means the rate (tons per day) at which tons of Acceptable Feedstock can be processed on a continuous basis over a sustained period of time assuming no allowances for scheduled or forced outage. “Required Insurance” means the insurance coverage set forth in Section 5 of this RFP. “Residue” or “Residuals” means waste materials or products that result from processing Acceptable Feedstock at the E/C Facility or Export, which the Contractor cannot beneficially use and market and which must be disposed of. Residue does not include Unprocessible Feedstock or Bypassed Feedstock. “RFP” or “Request for Proposals” means this Request for Proposals as originally issued and as amended and supplemented. “RWQCP” or "Regional Water Quality Control Plant" means the City wastewater treatment plant. “RWQCP Site” means the parcel of land at the RWQCP as described in Section 2 of this RFP that is to be leased by the City to the Contractor for purposes of developing and operating the E/C Facility. “Scheduled Acceptance Date” means the date by which the Contractor and the Guarantor guarantee completion of the acceptance phase of Construction and on which Acceptance (as defined by this RFP) occurs for the E/C Facility or Export. “Services” means all of the duties, obligations and services to be provided by the Contractor. “Shortfall Charge” means charges incurred by the City for failure to meet the Minimum Annual Delivery Requirements as set forth in Section 5 of this RFP. FINAL 12/28/12 D-10 “Site” means the Landfill Site and/or the RWQCP Site. "Site Lease" means the agreement between the City and the Contractor leasing the Site to the Contractor for the Term of the Contract. “Spot Market Feedstock” means Acceptable Feedstock delivered to the E/C Facility or Export by or on behalf of parties other than the City as set forth in Section 5 of this RFP. “Start-up Test” means all the testing required, to the extent practical, of all or any component of the E/C Facility or Export after construction for the purpose of demonstrating that the E/C Facility or Export or the component being tested operates properly over the full range for which it was designed and in accordance with the design specifications. “State” means the State of California. “Subcontractor” means any third party engaged by the Contractor in performance of services for this Contract. “Term” has the meaning set forth in the Contract Principles, and includes the time from the Contract Date through Construction and Acceptance of the E/C Facility or Export, plus operation of the E/C Facility or Export after Acceptance, plus any renewals of the Contract. “Tons” means short tons, 2000 pounds. “TPD” means tons per day. “TPY” means tons per year. “Unacceptable Feedstock” means feedstock that is not Acceptable Feedstock. “Uncontrollable Circumstance” means any act, event or condition that is beyond the reasonable control of the party relying thereon as justification for not performing an obligation or complying with any condition required of such party under the Contract, and that materially interferes with or materially increases the cost of performing its obligations hereunder (other than payment obligations), to the extent that such act, event or condition is not the result of the willful or negligent act, error or omission, failure to exercise reasonable diligence, or breach of the Contract on the part of such party. Such acts or events may include, but shall not be limited to, the following: (A) naturally occurring events (except weather conditions normal for the Palo Alto area) such as landslides, underground movement, earthquakes, fires, tornadoes, floods, epidemics, and other acts of God; (B) explosion, sabotage or similar occurrence, acts of a declared public enemy, extortion, war, blockade or insurrection, riot or civil disturbance; FINAL 12/28/12 D-11 (C) labor disputes, except labor disputes involving employees of the Contractor, its affiliates, or Subcontractors which affect the performance of the Contract services; (D) the failure of any Subcontractor or supplier, other than the Contractor, the Guarantor or any affiliate of either, to furnish services, materials, chemicals or equipment on the dates agreed to, but only if such failure is the result of an event which would constitute an Uncontrollable Circumstance if it affected the Contractor directly, and the Contractor is not able after exercising all reasonable efforts to timely obtain substitutes; (E) the failure of any appropriate Governmental Body or private utility having operational jurisdiction in the area in which the E/C Facility or Export is located to provide and maintain utilities to the E/C Facility or Export which are required for the performance of the Contract; (F) any failure of title to the Site or Export processing/management location or any enforcement of any encumbrance on the Site or Export processing/management location not consented to in writing by, or arising out of any action or agreement entered into by, the party adversely affected thereby; (G) the preemption of materials or services by a Governmental Body in connection with a public emergency or any condemnation or other taking by eminent domain of any material portion of the E/C Facility or Export; and (H) a Change-in-Law. It is specifically understood that, without limitation, none of the following acts, events or circumstances shall constitute Uncontrollable Circumstances: (1) any act, event or circumstance with respect to which the Contractor has assumed the "as-is" risk under the Contract; (2) any act, event or circumstance that would not have occurred if the affected party had complied with its obligations under the Contract; (3) changes in interest rates, inflation rates (other than those provided for in the Contract), labor costs, insurance costs, commodity prices, currency values, exchange rates or other general economic conditions; (4) changes in the financial condition of the City, the Contractor, the Guarantor, or their affiliates or Subcontractors affecting the ability to perform their respective obligations; (5) the consequences of error, neglect or omissions by the Contractor, the Guarantor, any Subcontractor, any of their affiliates or any other person in the performance of the Contract Services; FINAL 12/28/12 D-12 (6) union or labor work rules, requirements or demands which have the effect of increasing the number of employees employed at the E/C Facility or Export or otherwise increasing the cost to the Contractor for performing the Contract Services, provided that such are not the result of a Change-in-Law; (7) mechanical failure of equipment; (8) power outages not caused by third party utilities; (9) any impact of prevailing wage or similar laws, customs or practices on the Contractor's costs; (10) reasonably anticipated weather conditions for the geographic region of Palo Alto or for Export, the transport to or processing/management facility for Acceptable Feedstock; (11) any act, event, circumstance or Change-in-Law occurring outside the United States of America; (12) failure of the Contractor to secure applicable patents, provided that such failure is due to the acts, omissions or negligence of the Contractor; (13) a Change-in-Law pertaining to taxes; or (14) any Change-in-Law (including the issuance of any Governmental Approval, the enactment of any statute, or the promulgation of any regulation) the terms and conditions of which do not impose more stringent or burdensome requirements on the Contractor than are imposed by the Contract Standards. “Unprocessibles” or “Unprocessible Feedstock” means any material arriving at the E/C Facility or Export that cannot be processed because of its size or its characteristics; e.g., oversized, bulky items, and is diverted from the E/C Facility or Export for disposal. “USEPA” or “EPA” means the United States Environmental Protection Agency. “Yard Trimmings” means material generated by residential and commercial sources associated with landscaping of gardens and lawns, pruning of trees and shrubs, and other related activities that generate woody/vegetative debris. Yard trimmings specifically include branches and stumps that are less than six-inches in diameter and shorter than four-feet in length; flowers, plants and shrubs; grass clippings and leaves; holiday trees (seasonal only; undecorated, unflocked, with stands removed and with tree sections not exceeding four- feet in length); and lumber, sawdust, wood chips and wood waste (untreated/unpainted). Yard trimmings does not include animal waste, bamboo, cactus, dirt, flax, ivy, painted or treated wood, palm, pampas grass, poison oak, sod, stable bedding and yucca. “Year” means a calendar year commencing on January 1st and ending on December 31st. FINAL 12/28/12 1-1 1.0 INTRODUCTION 1.1 Background In September 2011, the City of Palo Alto, California (City) completed a comprehensive feasibility study (Feasibility Study) assessing options to manage source separated organics (Food Scraps, Yard Trimmings and biosolids). The study found that constructing a facility in the City or exporting materials to an out of City facility may be equally competitive economically; in-City options, however, offered environmental benefits as related to a reduction in greenhouse gas emissions resulting from reduced truck transport. In November 2011, voters in the City approved Measure E, allowing a 10-acre parcel at the City Landfill to be considered for use for an Energy/Compost Facility (E/C Facility). Concurrent with the Feasibility Study, the City completed a Long Range Facilities Plan (LRFP) for the Regional Water Quality Control Plant (RWQCP), part of which recommended phasing out the existing, multiple hearth incinerators used for biosolids disposal and considering in-City and export options for biosolids management. City Council directed staff to prepare an Action Plan to consider integration of these efforts and through the ensuing process to determine if there were benefits that would result from integrating management of Food Scraps, Yard Trimmings and biosolids. On July 2, 2012, City Council approved the Action Plan, including preparation of a Request for Proposals (RFP), this document, to seek firm technical and price proposals from interested companies to design, build and operate an E/C Facility in the City or to export materials to a facility outside the Sites identified in this RFP (Export). Both Anaerobic Digestion and Gasification technologies were to be considered for the E/C Facility. Two Sites are available for an in- City facility, a site at the RWQCP (approximately 1 acre in size after the existing incinerators and related air pollution control equipment are removed) and the site approved by Measure E, a 10-acre parcel at the City Landfill adjacent to the RWQCP. Although the E/C Facility is limited to anaerobic digestion and gasification, the choice of technology(ies) and Site will be left open in the RFP to allow companies to propose the system they feel is best to address the City’s needs. For Export, Proposers may use traditional composting, as well as anaerobic digestion and gasification as the means of processing Acceptable Feedstock. Proposers may propose an E/C Facility or Export, or a combination of these approaches. The City will evaluate the proposals received to determine the most beneficial means for the City to manage the aforementioned materials. Selection of an E/C Facility or Export will entail CEQA review and contract negotiations followed by implementation of the selected project. Copies of the Feasibility Study (updated in April 2012), the LRFP, the Action Plan and related City Staff reports and documents can be found on the City’s web site. Energy/Compost Feasibility Study http://www.cityofpaloalto.org/news/displaynews.asp?NewsID=1586&TargetID=65 Energy/Compost Facility Consideration http://www.cityofpaloalto.org/news/displaynews.asp?NewsID=1978&TargetID=65 FINAL 12/28/12 1-2 Energy/Compost Facility Consideration http://www.cityofpaloalto.org/energycompost Long Range Facilities Plan for Regional Water Quality Control Plant http://www.cityofpaloalto.org/news/displaynews.asp?NewsID=2101&TargetID=65 1.2 Intent of Request for Proposals Through this RFP, the City is seeking Proposals from interested companies to permit (except for CEQA review which will be performed by the City), design, finance, build, own and operate an E/C Facility to be located at the RWQCP Site and/or the City Landfill Site to manage Food Scraps, Yard Trimmings and biosolids, or to export these feedstocks for disposal or use outside of the RWQCP Site or 10-acre Landfill Site in Palo Alto. The E/C Facility can utilize either Anaerobic Digestion, Gasification, or a combination of these technologies. For Export, traditional composting, as well as Anaerobic Digestion and Gasification can be used. Proposers may propose on either an E/C Facility or Export, or may use a combination of these methods. With Anaerobic Digestion, the E/C Facility may digest Food Scraps, Yard Trimmings and biosolids in separate digesters, or it may co-digest biosolids with Food Scraps and/or Yard Trimmings. The E/C Facility may generate electricity or produce fuels. Digestate may be composted on site or outside of the RWQCP Site or 10-acre Landfill Site. For compost, 1,000 tons per year will be made available to the City and its residents at no charge. Electricity will be purchased by the City as further explained in Section 4, or electricity may be wheeled to another utility. Fuels will not be purchased by the City. Any fuels produced must be transported from the Site and sold off Site. Gas from the City Landfill will be provided to the E/C Facility without charge to supplement the biogas produced from the E/C Facility that is used for electricity or fuels production. For either an E/C Facility or Export, Services are to be provided for a 20-year period following the commencement of full-scale operations. An option for a 30-year operating period can be proposed for either an E/C Facility or Export, and, in addition, for Export, a five-(5) year option can be proposed. The City’s objectives are to contract with an experienced party with a reliable technology and the resources and financial capacity to:  successfully develop an E/C Facility or Export the materials to provide a reliable, long-term solution for organics management;  enhance the beneficial use of organic waste materials through materials recovery and/or conversion of feedstocks into marketable products (including production of renewable energy);  reduce landfill disposal as a means of managing organic materials, thereby increasing diversion;  operate in an environmentally acceptable manner (including consideration for reduction of greenhouse gas emissions); FINAL 12/28/12 1-3  provide services in an economically competitive manner; and  allow the City to phase out the existing incinerator for biosolids. This RFP requires that Proposers prepare a Proposal inclusive of technical and financial qualifications, technical approach, business approach, and price. The City will evaluate the Proposals, and if found advantageous, select a Preferred Proposer with which it will enter into Contract negotiations. 1.3 Quantity and Characteristics of Feedstocks Estimated quantities (tons per year-tpy) of Food Scraps and Yard Trimmings to be generated in the City at the start of the Contract are:  Food Scraps: 12,100-15,500 tpy; likely estimate: 13,800 tpy  Yard Trimmings: 13,500-14,300 tpy; likely estimate: 14,025 tpy These estimates are expected to remain flat over the Contract period. Projected estimates for biosolids based on 100% of the RWQCP output are as follows: 2015 2040 2050  Biosolids (approximately 26% solids, tpy) 32,288 39,448 41,975  Biosolids (as liquid, approximately 3.3% solids, millions of gallons per year) 59.81 73.07 77.75 These estimates for biosolids do not include FOG and scum which are presented in Section 3.2 of this RFP. It should be noted that the City will deliver Food Scraps and Yard Trimmings as separate materials or combined, depending on the needs of the technology selected for the E/C Facility. In regard to biosolids, either dewatered biosolids (approximately 26% solids) or liquid biosolids (approximately 3.3% solids, not dewatered) will be delivered to an E/C Facility, depending on the needs of the technology selected for the E/C Facility. Fats, oils and grease and scum will be included with biosolids to be managed by the selected company. The costs for additional City effort to meet the needs of the Proposer’s technology will be taken into account when comparing the economic competitiveness of Proposals. The City will be responsible for the construction cost of dewatering facilities without adding said costs for Proposal evaluation, but the costs for operating these facilities will be considered when comparing the economic competitiveness of Proposals. For Export, the City will dewater biosolids and provide for storage and loading facilities for truck transport. The City will also be responsible for loading Contractor vehicles. The City will be responsible for the construction costs of these facilities without adding said costs for Proposal evaluation, but the costs for operating these facilities and services will be considered when comparing the economic competitiveness of Proposals. FINAL 12/28/12 1-4 If there is a benefit to the City, the City will consider a Regional E/C Facility capable of managing both City Acceptable Feedstock and Acceptable Feedstock from other sources outside of the City. Such a larger, Regional Facility will only be considered by the City, if proposed as an option to a proposed City only facility. Further information regarding the quantity and characteristics of organic feedstocks can be found in Section 3 and Appendix E of this RFP. 1.4 Sites Two Sites are available in the City for an E/C Facility. These include the RWQCP Site (approximately a 1-acre parcel after the existing incinerators and associated air pollution equipment are removed) and the 10-acre Landfill Site (Measure E site) at the City Landfill adjacent to the RWQCP. Significant portions of the Landfill Site include fill material. In addition, the City prefers that the existing Landfill postclosure facility located on the Landfill Site not be moved. The footprint for this facility is 80 feet by 100 feet, excluding the landscape berm. Detailed Site information can be found in Section 2 and Appendices C and D of this RFP. Proposers may use one or both of these Sites. It should be noted that use of the Landfill Site is a sensitive issue to City residents since it borders Byxbee Park. Proposers should consider means to design the E/C Facility to minimize use of space at the Landfill Site, consider “terracing” site use to allow a more gradual transformation to the landfill slope and minimize retaining wall requirements, and utilize other means, such as use of buffer areas, to address these issues. Use of the highest retaining wall scenario assessed by the City, i.e., 20 feet, may present permitting issues with the regulatory agency, and its approval is not certain. Further, it should be noted that the Landfill is no longer receiving waste, and the City is in the process of designing the closure of the Landfill. Integration of the E/C Facility site needs and the Landfill closure are important considerations for the City. For purposes of this RFP, Proposers should assume that the City will prepare a site pad for use by the E/C Facility that is integrated with Landfill closure. The site pad will not include foundations, utility connections, stormwater management, security, or final site grading and landscaping needed by the selected company. The City has prepared cost estimates for preparing different size site pads for various scenarios involving different amounts of acreage that may required for the E/C Facility (see Appendix C). The cost for site preparation will be taken into account by the City when it evaluates Proposals and the need for space. It should also be noted that landfill gas is currently collected and piped to the RWQCP where it is used to fuel the existing incinerator. When the incinerators are phased out, the City will require, to the extent practical, that the landfill gas be used in a common heat and power generation system or fuel production system at the E/C Facility, to avoid flaring at the Landfill. The City will provide for delivery of the landfill gas to the E/C Facility at no charge. Information on landfill gas generation can be found in Appendix C of this RFP. FINAL 12/28/12 1-5 1.5 RFP Approach This RFP requires Proposers to provide a Base Case Proposal for Food Scraps, Yard Trimmings and Biosolids, and an Alternative Proposal for Food Scraps and Yard Trimmings only to satisfy requirements as set forth in this RFP. In addition, Proposers are invited to submit additional Alternative Proposals. Additional acceptable alternatives that will be considered are identified in Section 1.6 of this RFP. Proposers that do not provide a Base Case Proposal for Food Scraps, Yard Trimmings and Biosolids, and an Alternative Proposal for Food Scraps and Yard Trimmings only will not be considered for additional Alternative Proposals. It is intended that this RFP be a performance-based request, and that the Contract that results will be a performance-based contract. 1.6 Summary of Services Requested The selected private company with which the City will enter into a Contract for the requested Services is referred to herein as the Contractor. For purposes of this RFP, the Contractor may be that for the E/C Facility or for Export, whichever the City finds most beneficial in meeting its needs. The E/C Facility may include Anaerobic Digestion and Gasification technologies as defined by this RFP. See the Definitions section of this RFP for a description of these technologies. For Export, the processing facility may include conventional composting, Anaerobic Digestion or Gasification technologies. For either an E/C Facility or Export, the processing facility will recycle and/or convert Acceptable Feedstock into marketable materials or products (including fuel, electricity, compost or other marketable products). Such a facility may have front-end processing to remove and recover recyclable materials and prepare the feedstock for conversion, and/or back-end processing for recovery of recyclables and marketable products. Neither the E/C Facility nor Export shall include conventional waste- to-energy or incineration. If the E/C Facility or Export includes Anaerobic Digestion, the digestate from the Anaerobic Digestion facility may be marketed directly if it meets California and Federal digestate standards for beneficial use or is used to produce renewable energy, or may be composted, and if composted, must yield compost that meets CalRecycle compost standards and, for biosolids or a combination of biosolids with Food Scraps and/or Yard Trimmings, that meets US EPA Exceptional Quality Standards for metals and Class A for pathogen reduction. It should be noted that CalRecycle is currently in the process of developing digestate standards. For Export, if a traditional compost facility is utilized, the compost must meet the standards described above. The City will lease to the Contractor either the RWQCP Site or the City Landfill Site, or both of these areas, as needed for the E/C Facility. The City may prepare a site pad at the Landfill Site, as previously described in Section 1.4, or it may require the Contractor to prepare a site pad (for Proposal purposes, Proposers should assume that the City will prepare the site pad). The City will be responsible for remediation of existing contamination at the Site, if needed. FINAL 12/28/12 1-6 The City will provide Acceptable Feedstock to the E/C Facility. At its discretion, for the E/C Facility, the City may provide support to the Contractor for product marketing, project financing, and other activities that are the Contractor’s responsibility. For example, the City has committed to purchasing electricity from the E/C Facility at market prices for renewable energy (see Section 4 of this RFP for further information). As another example, the City could support Contractor efforts to obtain Federal and State grants, low interest loans, and capacity allocation within the State for tax-exempt financing for the E/C Facility. Also, for example, the City could, where appropriate, encourage use of suitable E/C Facility products, such as compost, in public projects. Proposers should specify the type of support desired for consideration by the City The Contractor will permit (with the exception of CEQA approval), finance, design, build, operate, and own the E/C Facility. The Contractor will be responsible for the cost associated with transporting and disposing of Residue and Bypassed Feedstock from the E/C Facility. The Contractor will be responsible for marketing all products and materials generated, recovered or beneficially used. The Contractor will be entitled to revenues for products and responsible for the cost associated with transporting and disposing of any such materials that are not marketed. For Export, the Contractor will be responsible for picking up, transporting and managing Acceptable Feedstock. The City will provide handling, storage and loading facilities for biosolids at the RWQCP and will load the Contractor’s vehicles. The City will be responsible for permitting activities for these facilities at the RWQCP Site, as they may be needed to implement Export. For Food Scraps and Yard Trimmings, the Contractor will be responsible for transport and management of these Acceptable Feedstocks, assuming the City will deliver these feedstocks to a Contractor transfer or processing facility no more than 18 miles from City Hall. The Contractor shall provide a staff of qualified and experienced employees to operate and maintain the E/C Facility and/or to provide Export services, and shall give consideration to hiring staff from the local labor force. The Contractor will be responsible for maintaining positive community relations, and shall assist the City with their public information programs by providing information and participating in activities to support those programs. For the E/C Facility, the Contractor shall be responsible for guaranteeing a financing and construction schedule, including time required for Acceptance. Acceptance shall occur by January 1, 2019, after which the Contractor shall be responsible for accepting City Acceptable Feedstock at the E/C Facility, or at a facility designated by the Contractor and approved by the City if the E/C Facility is not operable by that date, or for any time thereafter during the operating period. After Acceptance, there will be a 20-year operating period, with two, five-year renewal options. The project development period, design and construction period and the operating period, including any renewals, shall comprise the Contract Term. The Contract will include an option for City purchase of the E/C Facility at the completion of the Term or earlier (see Section 1.9 and Section 5). For Export, the Contractor shall be responsible for transport and all facilities needed for management of Acceptable Feedstocks, such transport services and facilities are to be available for a 20-year operating period, plus two, five-year renewal options. For Food FINAL 12/28/12 1-7 Scraps and Yard Trimmings, the City will deliver these feedstocks to a Contractor transfer or processing facility no more than 18 miles from City Hall. For biosolids, the City will construct and operate biosolids handling, storage and loading facilities at the RWQCP, and load the Contractor’s vehicles. For all Acceptable Feedstock, as an option, Alternative Proposals for Export will be considered for a shorter operating term, but no less than a 5-year operating period. For Export, the Contractor shall commence operations no later than July 1, 2017. As with the E/C Facility, once operations commence, the Contractor shall be responsible for accepting City Acceptable Feedstock at the primary facility(ies) designated by the Contractor, or at a Contractor designated/ City approved facility if the primary facility is not operable by that date, or for any time thereafter during the operating period. Pricing for the Base Case Proposal for both the E/C Facility and Export must include all three Acceptable Feedstocks-Food Scraps, Yard Trimmings and biosolids. For the required Alternative Proposal for Food Scraps and Yard Trimmings only, pricing is to be provided for Food Scraps and Yard Trimmings only, for an E/C Facility or Export. Further instruction regarding pricing is provided in Section 8.8 of this RFP. Additional Alternative Proposals can be provided at the option of the Proposer. Additional Alternative Proposals will be accepted by the City for the following:  Proposals for accepting Food Scraps and biosolids only, Food Scraps only, Yard Trimmings only, or biosolids only;  a larger E/C Facility size (Regional E/C Facility), to receive and process Acceptable Feedstock beyond that available from the City, if (i) related site and environmental issues can be successfully addressed to the City’s satisfaction, (ii) financial benefits such as host community payments to the City are considered sufficiently advantageous, (iii) such supplemental feedstock results in no or limited Bypassed Feedstock and no or limited Unacceptable Feedstock being landfilled; and (iv) Contractor is responsible for providing all Acceptable Feedstock not available from the City without recourse to the City if there is a shortfall in such feedstock;  for the E/C Facility or Export, a term for the operating period to be 30 years, plus two, five-year renewal options; and  for Export, a term of 5 years. The City will consider Alternative Proposals only for those cases identified in this RFP or by Addenda to this RFP. Prior to the deadline for submitting written questions, a Proposer may request approval from the City to submit Alternative Proposals based on technical or business options not listed in this RFP or Addenda. If the City agrees to consider other Alternative Proposals, all parties that have received the RFP will be so informed by an Addendum to this RFP. 1.7 Financing The Contractor shall finance and own the E/C Facility. The City will not be a party to, and shall have no rights or obligations regarding E/C Facility financing and ownership, except FINAL 12/28/12 1-8 for the option to purchase, as described in Section 1.9 and Section 5 of this RFP. The City will support the Contractor in its efforts to obtain financing, including supporting initiatives to obtain grants and tax-exempt financing, and similar initiatives. For Export, the City will finance and construct facilities needed to handle, store and load biosolids to the Contractor’s vehicles. The Contractor will be responsible for financing any vehicles and disposal/management facilities for the Acceptable Feedstock. 1.8 Site Lease and Rent The Landfill Site and/or RWQCP Site will be leased to the Contractor for an E/C Facility. The amount of the Site Lease Payment is specified in Section 5 of this RFP. 1.9 Option to Purchase E/C Facility, Require E/C Facility Removal The Contract will include an option for the City to purchase the E/C Facility from the Contractor at the end of the Term or earlier, as further described in Section 5 of this RFP. The Contract will also include step-in rights for the City, allowing for the City to fix or to purchase the E/C Facility if certain schedule or performance requirements are not met (see Section 5 of this RFP). If the City does not exercise its option to purchase the E/C Facility, the City shall have the right to require the Contractor to remove the E/C Facility from the Landfill Site and/or RWQCP Site and restore the Site to a condition that is safe and useable, as further described in Section 5 of this RFP. 1.10 Contract Administration The City will provide Contract administration and day-to-day operational oversight of the Contract. The City may retain the services of an engineer, financial analyst and/or legal counsel, as necessary, to assist in monitoring Export activities or the E/C Facility design, construction and operation for conformance to Contract technical, environmental and financial requirements. 1.11 Schedule The following project schedule has been established:  Issue RFP On or about February 4, 2013  Mandatory Pre-Proposal Meeting 9:00 AM PST, March 12 , 2013  Last Date for Submittal of Written Questions July 12 , 2013  Proposal Submission Due Date 3:00 PM PST , July 31, 2013  Proposal Evaluation August 2013-January 2014  City Council Review of Options February 2014  Selection of Preferred Proposer February 2014  Anticipated CEQA Approval By February 2016  Company Contract Negotiations Completed By February 2016 FINAL 12/28/12 1-9  Operations no later than July 1, 2017 for Export; No later than January 1, 2019 for E/C Facility There will be a mandatory Pre-Proposal Information Meeting in Palo Alto at 9:00 AM on March 12, 2013 to discuss this RFP. A tour of the RWQCP Site and the Landfill Site will be conducted after the meeting. See Section 6.3 for further information. Interested parties may attend or participate by conference call. 1.12 Evaluation of Proposals The City will establish an Evaluation Committee to review Proposals. The Evaluation Committee will be supported by legal, technical and financial advisors as the City deems necessary. Proposals will be evaluated in accordance with the evaluation procedures and the evaluation criteria described in this RFP, Section 7. Proposals must meet Minimum Evaluation Criteria as specified in Section 7. Proposals that do not meet the Minimum Evaluation Criteria will be considered unacceptable and will not be considered responsive and responsible for comparative ranking. Comparative ranking of non-cost elements of Proposals will be completed using a point-based ranking system as described in Section 7. The Proposal prices will be evaluated concurrently with non-cost elements of the Proposals. At the discretion of the City, Proposal prices may be evaluated separately. A value ranking, including consideration of both non-cost comparative ranking and price will be conducted to determine which Proposal is most advantageous, overall, to the City. The City is not obligated to select a Proposal based solely on price. In addition to price, the City will consider such factors as the quality of the Proposal, how well Proposals meet the goals and objectives of the procurement, the technical and financial resources and experience of the Proposer, the record of performance and reliability of the proposed technology, the soundness of the technical and business approaches, conformance to terms and conditions of the Contract (as reflected in the Contract Principles in this RFP, Section 5), the level of risk which the Proposer is assuming and asking the City to assume, and other factors as are further described in this RFP. The Proposer whose Proposal is found most advantageous, based on the value ranking, will be selected for contract negotiations (Preferred Proposer). If negotiations are not satisfactory, negotiations may be initiated with the next-highest ranked Proposer. Although not currently contemplated, the City reserves the right to conduct simultaneous negotiations with more than one Proposer. Subsequent award of a Contract will be made after CEQA certification, and such award will require City Council approval. Proposers are encouraged to hire workers from the local labor force and purchase goods and services locally and in the region to the extent practical, as described in Section 6 of this RFP. FINAL 12/28/12 1-10 1.13 Consultant Team The City has retained the services of Alternative Resources, Inc. (ARI) as management, technical and financial advisor. 1.14 Content of RFP Included in the remainder of this RFP are: a description of the Site and existing facilities; information on Acceptable Feedstock supply and characteristics; a description of the project, scope of services and schedule; key terms and conditions of the contemplated Contracts (Contract Principles); a description of the procurement procedures and process; a description of the procedures and evaluation criteria that will be used for reviewing and evaluating Proposals, and instructions to Proposers for preparing Technical and Price Proposals. Appendices contain forms and certificates that must be completed by Proposers as well as documents and information that will facilitate Proposal preparation. Upon request, forms in the Appendices will be provided in Microsoft “Word” format and a “CAD” drawing of the City Landfill Site and the RWQCP Site will be provided. FINAL 12/28/12 2-1 2.0 DESCRIPTION OF SITE AND EXISTING FACILITIES Proposals submitted in response to this RFP for an E/C Facility shall be based on development of the E/C Facility at the Landfill Site, the RWQCP Site, or both as defined in this RFP and as described herein. The Landfill Site and the RWQCP Site are further described below. For the purposes of this RFP, the word “Site” means the Landfill Site and/or the RWQCP Site. For Export, for Biosolids, it is anticipated that the RWQCP Site will be used by the City for dewatering Biosolids, and constructing storage and loading facilities for Contractor vehicles. For Export, for Food Scraps and Yard Trimmings, the Contractor will be responsible for transport and management of these Acceptable Feedstocks, assuming the City will deliver these feedstocks to a Contractor transfer, processing, or other facility no more than 18 miles from City Hall. The City will be responsible for permitting activities at the RWQCP Site, as they may be needed to implement Export. For either an E/C Facility or Export, access to both the Landfill Site and the RWQCP Site will be via Embarcadero Way from Embarcadero Road. The City will widen Embarcadero Way and will extend it as a paved roadway to the Site boundary. The City will also be responsible for bringing utility lines (water, stormwater, sewer, electricity, natural gas) to the boundary of the Site. Additional information on utilities is provided in Section 4.2.4 of this RFP, and Appendix F-2. 2.1 Landfill Site The Landfill Site is located at 2380 Embarcabero Road in the City of Palo Alto, in Santa Clara County, California, east of U.S. Highway 101 and south of Embarcadero Road. The Landfill Site is adjacent to the RWQCP and is located on a portion of the former City Landfill, which stopped receiving waste in 2011. The Landfill includes a leachate collection and control system and a landfill gas collection system. The Landfill Site is owned by the City of Palo Alto. The Landfill Site footprint consists of approximately 10 acres. The land on which the Landfill Site sits was dedicated to Byxbee Park. In November 2011, as a result of a City ballot question (Measure E), approximately 10 acres of land were undedicated to Byxbee Park for the purpose of considering building an E/C Facility. Use of the Landfill Site is a sensitive issue to local residents since it borders Byxbee Park. Design, construction and operation of an E/C Facility on the Landfill Site shall minimize aesthetic, visual, noise, odor and lighting impacts on surrounding land users, as futher described in Section 4 of this RFP. Proposers should consider means to design the E/C Facility to minimize use of space at the Landfill Site, incorporate effective use of buffer areas, consider “terracing” the Landfill Site to allow a more gradual transformation to the Landfill slope and minimize retaining wall requirements, and utilize other means to address these issues. Further, it should be noted that the Landfill is no longer receiving waste, and the City is in the process of designing the closure of the Landfill. There is an existing Landfill post-closure facility located within the 10-acre Landfill Site, as shown on Figure 1 in Appendix C. The footprint for this facility is approximately 80 feet by 100 feet, excluding a landscape berm. The City prefers that this existing Landfill post-closure facility not be moved. Integration of the E/C Facility site needs and the Landfill closure are important considerations for the City. FINAL 12/28/12 2-2 In conjunction with closure activities at the Landfill, the City will prepare a site pad for use by the E/C Facility that is integrated with Landfill closure. The site pad will not include foundations, utility connections, stormwater management, security or final site grading and landscaping needed by the selected company. The City has prepared grading plans and cost estimates for preparing different size site pads for various scenarios involving different amounts of acreage that may be required for the E/C Facility. Four different grading plan scenarios have been prepared, accommodating site pads ranging from 3.8 acres up to 10 acres. For all of the grading scenarios, there is a portion of the site pad (approximately 2 acres) that is outside the Landfill footprint, i.e., not over fill material to be excavated for purposes of closure. The remaining area of each site pad configuration is located within the landfill footprint. The site pad is expected to include 4-foot overexcavation of existing refuse, backfilled with engineered fill; some amount of refuse will remain below the engineered fill. These closure scenarios and site pad configurations, including delineation of the landfill footprint, are provided in Appendix C and generally described below. Appendix C also includes an illustrative cross section generally applicable to all of the site pad configurations, and an estimate of City costs to construct the pad and complete other Site preparation activities. At the mandatory Pre-Proposal meeting scheduled for this RFP (see Section 6.2), the City will provide a web link, FTP site, or other means for interested Proposers to access a CAD drawing for the Landfill Site. One of the grading plans (Appendix C, Figure 1) is for a 10-acre site pad. One of the grading plans (Appendix C, Figure 2) is for a 7-acre site pad. The 10-acre site pad and the 7-acre site pad include a 20-foot high retaining wall to separate the site pad from the landfill side slope. Regulatory approval for use of a 20-foot high retaining wall is not certain, and Proposers should investigate means to reduce the heighth of the retaining wall for these scenarios. One grading plan (Appendix C, Figure 3) is for a 5.4-acre site pad, with a 10.5-foot retaining wall at the boundary with the landfill slope. One grading plan (Appendix C, Figure 4) is for a 3.8 acre site pad, with no retaining wall. Proposers shall give appropriate consideration to requirements for foundations for structures and equipment built on the site pad, not only as a result of building on previously filled and subsequently backfilled material, but also because of the geotechnical properties of the underlying natural sediment of San Francisco Bay. Available subsurface geotechnical data is provided in Appendix C, including a 1989 geotechnical investigation prepared by BSK & Associates and a 2008 geotechnical report by Jensen-Van Lienden Associates. Also, the site pad is located in the Special Flood Hazard Area (Zone AE) with a base flood elevation of 10.5 feet above mean sea level (NAVD88). The site pad configurations provided in Appendix C show the pad is predominantly at elevations from 10.5 feet above mean sea level up to approximately 18 feet above mean sea level, with limited areas of the site pad at elevations below 10.5 feet. For Proposal purposes, Proposers shall assume that the final pad will be at an elevation of 10.5 feet or higher so as not to trigger requirements for construction within Zone AE. Landfill gas is currently collected and piped to the RWQCP, where it is used to fuel the existing multiple hearth incinerator. When the incinerator is phased out, the City will require, to the extent practicable, that the Landfill gas be used in a common power generation system or fuel production system at the E/C Facility, to avoid flaring at the FINAL 12/28/12 2-3 Landfill. The City will be responsible for delivering Landfill gas to the E/C Facility Site at no charge. Information on Landfill gas generation projections through the year 2042 (Landfill gas generation, Landfill gas recovery, and percent methane) is presented in Appendix C. 2.2 Regional Water Quality Control Plant (RWQCP) Site and Facilities The Regional Water Quality Control Plant (RWQCP) Site is located at the RWQCP, adjacent to and southeast of the existing multiple hearth incinerator, and northwest of the primary settling tanks. If the incinerator and associated air pollution control equipment are demolished in order to use the area for the E/C Facility, the Proposer will be responsible for interim handling, processing, and disposal of the RWQCP Biosolids during the period from the shutdown of the incinerator to the startup of the E/C Facility. The size of the RWQCP Site is 0.52 acres before demolition of the incinerator and associated air pollution control equipment. The 0.52-acre area is an open gravel lot, without structures. If the incinerator and associated air pollution control equipment are demolished, the area of the RWQCP Site will be approximately 1.1 acres. The incinerator is a free standing multiple hearth incinerator, and the air pollution control equipment is housed within a reinforced concrete building 50-feet tall with an adjacent air pollution control system supported by a steel superstructure; both facilities are pile supported. Site plans which show the extent of the RWQCP and the RWQCP Site (both before and after demolition of the incinerator and associated air pollution equipment) are included in Appendix D. The City has prepared a summary of energy use at the RWQCP, for the period 2004 – 2011. The summary includes electricity use, natural gas use, and landfill gas use. The summary is included in Appendix D. Electricity use ranged from 17,554,400 kWh in 2004 to 16,310,202 kWh in 2011. Natural gas use ranged from 705,588 therms in 2004 to 382,289 therms in 2011. Landfill gas use ranged from 286,432 therms in 2008 to 204,864 therms in 2011. Landfill gas is used to fuel the existing multiple hearth biosolids incinerators. Information on current and projected quantity and characteristics of Biosolids produced at the RWQCP are provided in Section 3 and Appendix E. FINAL 12/28/12 3-1 3.0 FEEDSTOCK SUPPLY AND CHARACTERISTICS As further defined in the Definitions section of this RFP, Acceptable Feedstock includes Food Scraps and Yard Trimmings from residential, commercial and industrial sources, and Biosolids from municipal wastewater treatment including fats, oils and grease (FOG) as well as scum. This section provides available information on City Acceptable Feedstock. 3.1 Yard Trimmings and Food Scraps GreenWaste of Palo Alto is currently the City's contractor for waste and recycling collection, transportation and processing services through June 30, 2017 with the City option to extend the contract up to four years in single year increments. GreenWaste has an exclusive agreement to collect residential waste, recyclables and Yard Trimmings. For commercial users, GreenWaste has an exclusive agreement with the City to collect waste only. However, GreenWaste has entered into separate contracts to collect the remaining waste streams (i.e., recyclables, Food Scraps and Yard Trimmings) with many of the City's commercial users. The City currently has a three-container residential curbside collection program. Recyclable materials are collected in a blue container and are delivered to GreenWaste's material recycling facility in San Jose. Yard Trimmings are collected in a green container. Through March 2012, Yard Trimmings were delivered for composting at a traditional, open windrow compost facility at the Landfill. Currently, GreenWaste delivers Yard Trimmings to the SMaRT Station. All other materials, including residential Food Scraps, are collected in a third container (as refuse) and taken to the SMaRT Station, and subsequently transported to and disposed at the Kirby Canyon Landfill in South San Jose. In the future, the City will be initiating curbside collection of source-separated residential Food Scraps (either mixed with Yard Trimmings or separately from Yard Trimmings, depending on the requirements of the proposed E/C Facility or Export). Commercial Food Scraps are collected separately, transported to and composted in Gilroy. Yard Trimmings collected include the following items:  Branches and stumps (less than 6-inches in diameter and shorter than 4-feet in length)  Flowers, plants and shrubs  Grass clippings and leaves  Holiday trees (seasonal only; undecorated, unflocked, with stands removed and with tree sections not exceeding 4-feet in length)  Lumber, sawdust, wood chips and wood waste (untreated/unpainted) Items not currently accepted with Yard Trimmings and disposed of as waste are animal waste, bamboo, cactus, dirt, flax, ivy, painted or treated wood, palm, pampas grass, poison oak, sod, stable bedding and yucca. The City will deliver Acceptable Feedstock to the E/C Facility for processing or otherwise deliver such Acceptable Feedstock for Export, in accordance with the Minimum Annual FINAL 12/28/12 3-2 Delivery Requirements and Maximum Annual Delivery Thresholds specified in Section 5 of this RFP. Notwithstanding the requirements and thresholds specified in Section 5, for informational purposes only, the likely projected annual tonnage of Yard Trimmings to be delivered by the City to the E/C Facility or for Export is 14,025 tons per year, and the likely projected annual tonnage of Food Scraps is 13,800 tons per year, both of which are projected to remain level during the Term of the Contract. Appendix E includes a summary of quantities and/or estimates of Yard Trimmings and Food Scraps generated in Palo Alto for Fiscal Year 2012. Appendix E also includes, for informational purposes, the City's overall projections of the range of organics that are anticipated over the Term of the Contract, including from commercial, residential and City sources. 3.2 Biosolids Acceptable Feedstock includes Biosolids from municipal wastewater treatment, including FOG and scum. Biosolids are generated by the City at the RWQCP, and are currently incinerated at the RWQCP. Biosolids will be dewatered by the City to support Export, as applicable, or if required by the Contractor for processing of Biosolids at the E/C Facility. Notwithstanding the requirements and thresholds specified in Section 5 of this RFP regarding Minimum Annual Delivery Requirements and Maximum Annual Delivery Thresholds, for informational purposes only, the projected quantity of Biosolids to be delivered by the City to the E/C Facility either dewatered or not, or for Export as dewatered feedstock, is summarized in Table 3-1 below for the years 2015, 2040, and 2050. The projected quantity of Biosolids summarized in Table 3-1 is presented as a range, representing 70% of the RWQCP output (low end of range) up to 100% of the RWQCP output (high end of range). Appendix E contains additional information regarding projections for Biosolids, as well as information on metals content and volatile solids levels. Table 3-1. Projected Quantities of Biosolids(1) 2015 2040 2050 Dewatered Biosolids at 26% solids (wet tons per day)(2) 62.0 - 88.5 75.7 - 108.1 80.5 - 115.0 Dewatered Biosolids at 26% solids (wet tons per year)(2) 22,602 - 32,288 27,614 - 39,448 29,383 - 41,975 Undewatered Liquid Biosolids at 3.3% solids (gallons per day)(2) 114,703 - 163,862 140,137 - 200,196 149,114 - 213,020 Undewatered Liquid Biosolids at 3.3% solids (million gallons per year)(2) 41.87 - 59.81 51.15 - 73.07 54.43 - 77.75 FOG and Scum (tons per year at 55% solids and 94% VSS) 158 - 226 158 - 226 158 - 226 1. Projected quantities of Biosolids, FOG and scum are presented as a range based on 70% of the RWQCP output (low end) up to 100% of the RWQCP output (high end) 2. Excludes FOG and scum. FINAL 12/28/12 3-3 City records of the existing quantity of Biosolids produced at the RWQCP and projections for future quantities (for 5-year increments from 2010 through 2050) are included in Appendix E. Information about the metals content of the Biosolids and the volatile solids content of the Biosolids is also provided in Appendix E. Scum originates in the sewage sludge, and it is also brought to the RWQCP in grease trucks by two permitted waste haulers, primarily from restaurant grease traps in the region. The grease from waste haulers is pumped into a “scum pit” that can handle about two truckloads per day. The grease deliveries from waste haulers in FY10 totaled 672,000 gallons per year. Scum is also collected within the treatment process, primarily from the primary treatment tanks. Scum includes anything less dense than water and can include grease, oils and plastics. Floating scum is collected, transported, and ultimately concentrated into a thick grease of 35 to 50% solids. The concentrated scum has a high heat content; when incinerated, it reduces the auxiliary fuel (natural gas) demand in the incinerator’s combustion zone. The concentrated scum is pre-mixed with Biosolids, so that flash fires do not occur in the upper drying zones of the incinerator, and fed to the incinerator at a consistent rate. The total quantity of scum (inclusive of FOG) generated within the treatment plant, is approximately 158 gallons per day at 55% solids and 94% VSS (at 100% of the RWQCP output). This is equivalent to 226 tons of concentrated scum per year (at 100% of the RWQCP output). These quantities are projected to remain level during the Term of the Contract. FINAL 12/28/12 4-1 4.0 DESCRIPTION OF PROPOSED PROJECT, SCOPE OF SERVICES AND SCHEDULE As described in this RFP, the City is soliciting proposals for either an E/C Facility at the Site designated in this RFP or for the Export of Acceptable Feedstock to a processing facility or facilities located outside of the City. This section of the RFP establishes the scope of services, schedule and design requirements, and applies to both the E/C Facility and Export, unless specific requirements are outlined for the E/C Facility or Export. The scope of services, schedule and design requirements outlined herein for the E/C Facility and, as applicable, Export, include: 1) general specifications which must be met by all of the proposed projects; and 2) more detailed specifications, where appropriate, for specific technologies. These more detailed design requirements are included in Appendix F-1. Proposers shall respond as required for their specific technology(ies). Appendix F-1 also includes construction requirements, design document review and construction review procedures, testing requirements, and operation and maintenance requirements. A summary of such requirements is included in this Section 4, along with a general description of the project, schedule requirements, and performance guarantees. 4.1 General Description of Proposed Project The proposed project is to be a system for managing the City of Palo Alto's Food Scraps, Yard Trimmings, and Biosolids (Acceptable Feedstock), consisting of an E/C Facility to be developed, owned, operated and maintained by the Contractor and located at the RWQCP Site and/or the Landfill Site or Export of Acceptable Feedstock to a processing facility or facilities located outside of the RWQCP Site or Landfill Site in Palo Alto. Among other objectives (see Section 1), the E/C Facility or Export is intended to allow for the phasing-out of the existing biosolids incinerator at the RWQCP and is intended to enhance beneficial use of organics by producing useable products and renewable energy, reduce landfill disposal of Food Scraps and Yard Trimmings and reduce greenhouse gas emissions. The E/C Facility or Export shall provide for reliable and efficient management of the Acceptable Feedstock and for compliance with environmental standards as required herein. This RFP requires Proposers to provide a Base Case Proposal for Food Scraps, Yard Trimmings and Biosolids, and a required Alternative Proposal for Food Scraps and Yard Trimmings only to satisfy requirements as set forth in this RFP. In addition, Proposers are invited to submit additional Alternative Proposals that are identified in Section 1.6 of this RFP. If there is a benefit to the City, the City will consider a Regional E/C Facility capable of managing both City Acceptable Feedstock and Acceptable Feedstock from other sources outside of the City. As proposed, the E/C Facility or Export shall be designed to manage the current and projected quantities of Acceptable Feedstock to be delivered by the City. As further detailed in Section 3 and Section 5 of this RFP, this includes: up to 15,500 tons per year of Food Scraps; up to 14,300 tons per year of Yard Trimmings; up to 32,288 tons per year of Biosolids in 2015 (at 26% solids), which is projected to increase over the initial Term of the Contract to approximately 38,900 tons per year in 2038; and up to 288 tons per year of FOG and scum. FINAL 12/28/12 4-2 4.1.1 E/C Facility The E/C Facility can utilize Anaerobic Digestion, Gasification, or a combination of these technologies. The E/C Facility shall not include conventional waste-to-energy combustion or incineration systems. The E/C Facility can be located at the RWQCP Site and/or the Landfill Site. The City will deliver Acceptable Feedstock to the E/C Facility. The City will install or upgrade dewatering facilities at the RWQCP, and will dewater Biosolids, as necessary, prior to delivery to the E/C Facility. If a proposed technology, such as low solids Anaerobic Digestion, does not require Biosolids to be dewatered, the City will deliver Biosolids that are not dewatered. The City may provide for separation of Food Scraps and Yard Trimmings during collection if required for the E/C Facility. The E/C Facility shall recycle and/or convert Acceptable Feedstock into marketable materials or products including fuel, electricity, compost and/or other marketable products. The E/C Facility shall include any necessary preprocessing to remove and recover recyclables and other materials and to prepare the Acceptable Feedstock for conversion, and/or back-end processing and recovery of recyclables, marketable products and energy, as applicable. The E/C Facility can include any type of energy production (e.g., electricity, gas, fuel), except that injection of biogas into the City's natural gas distribution system is not allowed, and if a fuel is produced it must be exported for sale (i.e., the City does not plan to purchase fuel generated by the E/C Facility). Electricity can be sold to the City or exported to a third party. To the extent practical, the E/C Facility shall include the beneficial use of landfill gas generated at the City Landfill. In such instance, the City will deliver the landfill gas to the E/C Facility for use by the Contractor. The Contractor will be responsible for cleaning the gas as needed for use. For Anaerobic Digestion, the E/C Facility may digest Biosolids separately from Food Scraps and Yard Trimmings or may co-digest these materials. The digestate generated by the E/C Facility can be composted and cured either on the Site or at another location. The E/C Facility shall make available to the City and its residents, at no charge, 1,000 tons per year of compost that meets CalRecycle Compost Standards and, for compost generated from Biosolids, US EPA Exceptional Quality Standards for metals and Class A requirements for pathogen reduction. The E/C Facility, including all technologies incorporated into the E/C Facility, must be designed to meet or exceed all applicable Federal, State and local codes, standards, and requirements of Applicable Law for such facilities, including air emissions requirements. Control of process air emissions and emissions from engines or other energy generation equipment shall meet the requirements of the Bay Area Air Quality Management District. For Gasification systems that generate electricity with on-site combustion of synthesis gases, the E/C Facility must comply with Federal standards contained in 40 CRF Part 60, Subpart Eb, Standards of Performance for Municipal Waste Combustors, in addition to State and local standards. If a stack is needed, the E/C Facility must be designed with a Good Engineering Practice stack height in accordance with regulatory requirements. FINAL 12/28/12 4-3 The E/C Facility shall have totally enclosed feedstock receiving, storage and processing areas including negative pressure on the receiving area with odor control of the collected air, and adequate odor control for all other areas of the E/C Facility, to ensure there are no objectionable odor impacts off the Site. As applicable, composting and curing areas shall be enclosed or otherwise have covers for such operations with collection of air and odor control of the collected air. There shall be no “outside” placement or storage of feedstock, products, or Residue. All truck movements and processing areas shall be located on the Site so as to minimize exposure and related impacts on the surrounding area. Equipment shall be located in enclosed buildings or structures with control for noise mitigation. The E/C Facility design and operation shall ensure that noise levels conform to the City Comprehensive Plan, which currently limits noise level to 70 dB as a "normal level" and 70-85 dB as a "conditionally acceptable" level for an industrially-zoned area. The E/C Facility shall be designed to minimize consumptive water use using recycled water to the extent possible. The E/C Facility shall be designed to minimize process wastewater discharge (with a goal of zero discharge). To the extent possible, process wastewater shall be reused within the E/C Facility to reduce consumptive water needs. City sewer limits shall be met for any sewer discharge. The E/C Facility shall include stormwater collection for surface water run-off from buildings, impervious surfaces and other, disturbed areas. The Contractor can direct clean stormwater to the City's stormwater collection system with discharge of any contaminated stormwater (or potentially contaminated stormwater, e.g., from the presence of Biosolids operating areas) to the sanitary sewer, or the Contractor can contain stormwater in on-site basins/ponds designed for on-site treatment and control of stormwater. Catch basins used for stormwater collection shall include oil and grease traps and allow for sediment collection. The E/C Facility shall be designed, at a minimum, for a 30-year operating life. It shall include redundant design features, as appropriate, to meet the proposed annual availability guarantee and to minimize the need for emergency management of Acceptable Feedstock. It shall include adequate storage of incoming feedstock and outgoing products to meet feedstock delivery schedules and product shipments to markets, and to provide for efficient operation. The E/C Facility shall include a public education center and necessary administrative office areas, laboratories and maintenance facilities, as further outlined in Appendix F-1. Buildings shall be designed to meet at least minimum LEED certification requirements, as appropriate. The E/C Facility shall be arranged on the Site to minimize aesthetic, visual, noise, odor and lighting impacts on surrounding land users, including effective use of buffer areas. For the RWQCP Site and for the Landfill Site adjacent to the RWQCP, the E/C Facility (including its architectural treatment) shall be designed to be compatible with existing buildings and structures at the RWQCP. For the Landfill Site, for all areas except that adjacent to the RWQCP, the E/C Facility (including its architectural treatment) shall be designed to be compatible with a park setting, with landscaping and buffers to minimize visual impacts. Design of buffer areas shall take into account measures to mitigate noise, lighting and potential odors, as well as visual impacts, including the use of landscaping and/or vegetated berms. As previously FINAL 12/28/12 4-4 described, the E/C Facility shall have totally enclosed feedstock receiving, storage and processing areas with no outside placement or storage of feedstock, products, or Residue, to mitigate potential impacts including reducing aviation hazards associated with the Palo Alto Airport, located directly north of the RWQCP. For the Landfill Site, design of the E/C Facility should minimize use of site space and must be integrated with plans for Landfill capping as well as consideration of minimizing impacts on Byxbee Park. Such integration should consider terracing of the Landfill Site to minimize the height of any headwall needed for Landfill integration. The Contractor will be responsible for design and construction of foundations, as well as providing for routing of on-site utilities, stormwater management, roads and other necessary Site infrastructure and ensuring that these needs are satisfied in a manner to protect the integrity of the Landfill cap. Additional information on environmental mitigation measures is provided in the Preliminary CEQA Checklist (Initial Study) included in Appendix G of this RFP. 4.1.2 Export For Export, the Contractor will be responsible for transporting and managing Acceptable Feedstock using traditional composting, Anaerobic Digestion, Gasification, or a combination of these technologies to recycle and/or convert Acceptable Feedstock into marketable materials or products. The City will dewater Biosolids, provide handling, storage and loading facilities for dewatered Biosolids and will load the Contractor’s vehicles. Liquid Biosolids will not be exported. For Food Scraps and Yard Trimmings, the City will deliver these feedstocks to a Contractor transfer, processing or other facility located no more than 18 miles from City Hall. The Contractor will be responsible for transport and management of these Acceptable Feedstocks delivered by the City. For Export to facilities that produce a compost product, the compost must meet CalRecycle Compost Standards. Compost produced from Biosolids must meet US EPA Exceptional Quality Standards for metals and Class A requirements for pathogen reduction. Export shall not include export to conventional waste-to-energy or incineration systems. 4.2 Scope of Services and Schedule The services and schedule described herein are for the Base Case Proposal. For the Base Case Proposal, Proposers are to propose a system to manage only City Acceptable Feedstock, including Food Scraps, Yard Trimmings and Biosolids (including FOG and scum with the Biosolids). The system may be an E/C Facility, Export or a combination of these approaches. For an E/C Facility, the Base Case Proposal may include Anaerobic Digestion, Gasification, or both technologies, and the E/C Facility may be located at the Landfill Site, the RWQCP Site, or both. For Export, the Base Case Proposal may include conventional composting, Anaerobic Digestion or Gasification. Proposers are required to submit a required Alternative Proposal for Food Scraps and Yard Trimmings only, and can submit additional Alternative Proposals as described in this RFP. FINAL 12/28/12 4-5 4.2.1 Role of City For the Base Case Proposal, the City will provide the Landfill Site and the RWQCP Site for the E/C Facility and will lease one or both of the Sites, as applicable, to the Contractor for the Term of the Contract. The City will bring utilities (water, stormwater, sewer, natural gas, and electricity at 75KVA @ 480V) to the boundary of the Site. The City will widen Embarcadero Way and extend it as a paved roadway to the Site boundary. The City will be responsible for subsurface conditions at the Site, including existing subsurface soil contamination and the presence and consequences of natural or man-made contamination, infrastructure and existing construction, and shall be responsible for remediating existing contamination at the Site, if any. For the Landfill Site, the City is in the process of designing the closure of the Landfill. For purposes of responding to this RFP, Proposers should assume that the City will cap the Landfill, and will prepare a site pad (up to 10 acres) for use by the E/C Facility that is integrated with Landfill closure. The site pad will not include foundations, utility connections, stormwater management, security, or final grading and landscaping needed by the Contractor. The City will complete CEQA activities for the E/C Facility and Export, including preparation of CEQA-related studies, documentation and applications. For Export, the City will also be responsible for permitting activities for dewatering of Biosolids, and storage and loading facilities for Biosolids at the RWQCP Site. The City will be responsible for permitting for Landfill capping, including integration of the site pad with the Landfill cap. For the E/C Facility, the City will deliver landfill gas to the E/C Facility. The Contractor will be responsible for cleaning the gas for use in making energy products, either fuel or electricity. The City will install or upgrade, at its own cost, dewatering facilities at the RWQCP, and will dewater Biosolids. For Export of Biosolids, the City will provide handling, storage and loading facilities for Biosolids at the RWQCP, and will load Biosolids into Contractor vehicles. For Export of Food Scraps and Yard Trimmings, the City will deliver such feedstock to a Contractor transfer, processing or other facility located no more than 18 miles from City Hall. For the E/C Facility, the City will deliver Acceptable Feedstock to the E/C Facility. The City may provide for separation of Food Scraps and Yard Trimmings during collection if required for the proposed project. The Contractor will be responsible for disposing any Unacceptable Feedstock delivered to and accepted at the E/C Facility by the City or on its behalf, but the City shall pay the Contractor for disposal of any such Unacceptable Feedstock. For energy products generated by the E/C Facility, the City of Palo Alto's electric utility will buy electricity at prevailing market rates, but at no less than $0.077/kWh over the Contract Term. The City's current estimate of the market price is $0.094/kWh over the Contract Term. The Proposer has the freedom to choose the most economic use of the energy, either to sell such electricity to the City or to wheel the power out of Palo Alto for sale to another utility. The City does not intend to buy FINAL 12/28/12 4-6 any fuel generated by the E/C Facility, and will not allow the injection of biogas into the City's natural gas distribution system. At its discretion, the City may provide support to the Contractor for product marketing, project financing and other activities that are the Contractor’s responsibility. For example, the City could support Contractor efforts to obtain federal and State grants, low interest loans, and capacity allocation within the State for tax-exempt financing for the E/C Facility. Also, for example, the City could, where appropriate, encourage use of suitable E/C Facility products, such as compost, in public projects. Proposers should clearly specify the type of support desired for consideration by the City. The City will, during the course of the Contract, conduct design review and construction monitoring activities, review start-up and acceptance testing and monitor performance during operations. 4.2.2 Role of Contractor in General For the E/C Facility, the Contractor shall lease the Site from the City and shall be responsible for surface conditions, construction of surface infrastructure, foundations, utility connections, drainage systems, roads and the like, including new construction of subsurface infrastructure, such as foundations and utilities, necessary for the E/C Facility and compatible with Landfill capping. For the E/C Facility, the Contractor shall accept and process Acceptable Feedstock from the City, permit (with the exception of CEQA approval), finance, design, construct, start-up, acceptance test, own, operate and maintain the E/C Facility, all in accordance with the requirements of this RFP and the Contract to be negotiated; Federal, State and local laws, regulations and policies; Good Industry Practice; Good and Accepted Construction Practice, and Good and Accepted Operating Practice. In addition, the Contractor shall be responsible for marketing all materials recovered or beneficially used, and transporting and disposing of any materials that cannot be marketed (Residue). Contractor shall be responsible for the costs of transporting all marketable materials as well as the costs for transporting and disposing all Residue. The Contractor shall be responsible for testing the Residue in accordance with local, State and Federal guidelines to ensure that it meets appropriate disposal requirements. For the E/C Facility, the Contractor shall include, to the extent practical, the beneficial use of landfill gas generated at the City Landfill and delivered by the City to the E/C Facility. The Contractor will be responsible for cleaning the gas for use in making energy products, either fuel or electricity. For Export, the Contractor shall be responsible for picking up Biosolids at the RWQCP, which will be dewatered and loaded into the Contractor's vehicles by the City, and for transporting and processing the Biosolids. The Contractor shall be responsible for transporting and managing other Acceptable Feedstock (Food FINAL 12/28/12 4-7 Scraps and Yard Trimmings) delivered by the City to a Contractor transfer or processing facility located no more than 18 miles from City Hall. For both the E/C Facility and Export, the Contractor shall be responsible for management of Acceptable Feedstock at all times over the Term of the Contract, during normal operations and during periods when the E/C Facility or primary Export option is inoperable. The Contractor shall provide alternative management/processing locations for periods when the E/C Facility or primary Export option is inoperable, subject to City approval of such alternative facilities. The Contractor shall be responsible for disposing any Unacceptable Feedstock delivered to and accepted at the E/C Facility by the City or on its behalf, but the City shall pay the Contractor for disposal of any such Unacceptable Feedstock. The Contractor shall be responsible for maintaining positive community relations, and shall assist the City with their public information programs by providing information and participating in activities to support those programs. 4.2.3 Permitting Process As stated previously, the City will complete CEQA activities for the E/C Facility and Export and will be responsible for permitting activities for facilities at the RWQCP Site for Biosolids, as may be needed for Export. The City will also be responsible for permitting activities for Landfill closure. Otherwise, the Contractor shall be responsible for obtaining all Federal, State and local permits and approvals needed for construction and operation of the E/C Facility and for implementing Export, as applicable. To assist the Proposer understand key environmental issues, a preliminary CEQA checklist is provided in Appendix G. The information provided in Appendix G is not necessarily all inclusive and the Contractor is responsible for defining permitting requirements specific to its Proposal, obtaining said permits and complying with permit requirements. The City will support the Contractor in obtaining permits and approvals. Note, however, that the role of the City shall in no way mean implicit approval of local permits and approvals. 4.2.4 Utilities The City will bring utilities (natural gas, water, sanitary sewer, stormwater and electricity) to the boundary of the Site, for connection by the Contractor. The following utilities are currently available inside or adjacent to the Landfill Site:  Natural gas - 4-inch line (capped)  Potable water - 1-inch line (in use)  Reclaimed water - 4-inch or 6-inch line (in use)  Sanitary sewer - 4-inch line and 52-inch main trunk (in use) FINAL 12/28/12 4-8  Electricity - 75kVA, 277/280V transformer (3-phase), and 50kVA, 120/240V transformer (in use) As described previously, the Contractor can direct clean stormwater to the City's stormwater collection system with discharge of any contaminated stormwater (or potentially contaminated stormwater, e.g., from the presence of Biosolids operating areas) to the sanitary sewer, or the Contractor can contain all stormwater in on-site basins/ponds designed for on-site treatment and control of stormwater. A drawing showing the stormwater collection system at the Landfill is provided in Appendix F-2. The system consists of storm drain inlets that feed to an 8-inch diameter stormwater pipe. The pipe discharges to a surface drain and flows out to the bay. If the Contractor will need the City to supply the utilities identified above to the project, those purchases will be subject to the applicable utility rate schedule. All non-residential rates are available through the following web link: http://www.cityofpaloalto.org/gov/depts/utl/business/rates.asp As further described in Section 5 of this RFP, the City shall bear the risk of increases in utility rates but not for increases in consumption of utility services, as agreed to in the Contract. If the E/C Facility generates electricity, the City of Palo Alto’s electric utility will purchase it at prevailing market prices, but at no less than $0.077/kWh. The City's current estimate of the market price is $0.094/kWh over the Contract Term; this is an indicative price, and does not represent a commitment on the part of the City. Any sale of electricity to the City of Palo Alto would include both the energy and the renewable attributes (RECs). Electricity could also be sold to offset the electric needs of the RWQCP. Historical electrical usage for the RWQCP is provided in Appendix D. Electricity sold to offset needs of the RWQCP would be at a discount to the rates provided in Utility Rate Schedule E 7, provided in Appendix F-2 and also available through the web link provided above. If proposing to use the energy from the E/C Facility to offset E/C Facility electricity use, any on- Site use will be subject to standby charges as shown in the applicable Utilities Rate Schedule (e.g., E-7 for Large Commercial Electric Service), available through the web link provided above. The Contractor would not be subject to standby charges, but will be subject to interruptible power supply conditions, if the E/C Facility provides its own backup power using a system that ensures no power is drawn from the utility. The Proposer has the freedom to choose the most economic use of the energy, either to sell such electricity to the City or to wheel the power out of Palo Alto for sale to another utility. If proposing to sell electricity to another utility, the wheeling of electricity will be subject to a wheeling charge. FINAL 12/28/12 4-9 Proposers are advised that Palo Alto is not in PG&E’s service territory. If the Proposer is assuming participation in a PG&E procurement program, the Proposer must confirm the applicability of that program to the Site. E/C Facilities that will connect a generator to the City’s electric distribution system, regardless of whether the electricity will be sold or used on Site, must obtain all necessary permits and approvals, including approvals from the City’s Building Division and Bay Area Air Quality Management District, and must request an interconnection agreement from the City’s Electric Engineering Division pursuant to Utilities Rule and Regulation 27 (Generator Interconnection). This Rule and Regulation is available online through the following web link: http://www.cityofpaloalto.org/gov/depts/utl/about/rules.asp A copy of the City’s standard interconnection agreement may be found in Appendix F-2. For purposes of Proposal preparation, Proposers shall assume that the term of the interconnection agreement will be consistent with both the Term of the Contract and the term of the power sales agreement to be negotiated with the City, and shall assume a cost of $100,000 for interconnection construction. Generators considered by the California Independent System Operator (CAISO) to be “Participating Generators” (typically those larger than 1 MW) may also be subject to CAISO scheduling requirements. Although the City of Palo Alto, not CAISO, will be responsible for generator interconnection, the CAISO may require the generation owner to enter into a “Participating Generator” and/or “Meter Services Agreement for CAISO Metered Entities”. If the Proposer plans to sell electricity to the City and is subject to CAISO scheduling requirements, the City is open to arrangements where either the City provides Scheduling Coordinator services, or the developer/owner of the project provides these services. The City uses the Northern California Power Agency (NCPA) as its Scheduling Coordinator. Unless specified otherwise in the Proposal, it will be assumed that Palo Alto will provide any necessary Scheduling Coordinator services and bear the associated costs. NCPA’s scheduling protocols are attached in Appendix F-2. As previously stated, the City will not consider proposals involving injection of biogas into the City’s gas distribution system. Proposers may produce fuels, but such fuels must be transported off Site for sale. The City will not purchase fuels from the Contractor. Proposers are advised that the RWQCP does not currently have any significant uses for waste heat that may be generated by the E/C Facility. FINAL 12/28/12 4-10 4.2.5 City Option to Purchase E/C Facility, Require E/C Facility Removal Upon the expiration of the initial operating Term or any renewals thereof, or upon Contract termination, the City shall have an option to purchase the E/C Facility from the Contractor, as further described in Section 5 of this RFP. As further described in Appendix F-1, at the end of the Contract, whether at its stated expiration or by earlier termination for whatever reason, the Contractor shall provide services necessary for a smooth uninterrupted transition of services to the City or its designated contractor. The Contractor shall prepare an Exit Transition Plan describing such services, which shall be provided to the City prior to initiating Services. If the City does not exercise its option to purchase the E/C Facility, the Contractor shall remove the E/C Facility from the Site and restore the Site to a condition reasonably equivalent to its condition before construction of the E/C Facility, as further described in Section 5 of this RFP. 4.2.6 Schedule for Delivery of Services It is anticipated that the Contract Date will occur upon completion of CEQA, estimated to be by February 2016. The Contractor shall complete the permitting, financing, design, construction and Acceptance Testing of the E/C Facility, or implementation of Export, as applicable, in accordance with a guaranteed schedule to be specified in the Contract. The schedule shall be based on the schedule proposed by the Proposer and as negotiated with the City. For Export, Biosolids operations are required to commence no later than July 1, 2017, and for Food Scraps and Yard Trimmings, operations shall commence on July 1, 2017, upon expiration of the current franchise agreement. For the E/C Facility, commercial operation is required no later than January 1, 2019. Earlier completion of the E/C Facility is encouraged. After E/C Facility Acceptance, the Contractor shall be responsible for E/C Facility operations and maintenance for 20 years, with options for two five-year renewals by mutual consent. As applicable, Export services shall be provided for 20 years, with options for two, five year renewals by mutual consent. These operating periods are for Base Case Proposals, with options for other operating terms under Alternate Proposals. 4.3 E/C Facility Requirements The E/C Facility shall include all elements necessary to receive, store, recycle, process, and convert Acceptable Feedstock to marketable products and store products prior to shipping. In general, these elements include:  an access road to the Site which may share existing Landfill and RWQCP roadways, as applicable; FINAL 12/28/12 4-11  a weigh station;  an enclosed receiving building and storage facilities for Acceptable Feedstock;  transfer facilities for Unacceptable Feedstock, Bypassed Feedstock, Unprocessible Feedstock, Residue, and marketable materials or products;  pre-conversion feedstock recycling and processing facilities (as applicable);  a minimum of two independent conversion process trains, or other methods to provide adequate redundancy of processing equipment for purposes of meeting the annual throughput requirements and reducing the frequency and extent of Bypassed Feedstock;  synthesis gas, biogas and landfill gas cleaning systems (as applicable);  post-conversion composting, curing, product screening, and product recovery facilities (if applicable);  enclosed product storage area(s);  heat recovery and power generating equipment (if applicable);  fuel production and storage facilities (if applicable)  enclosed Residue processing and Residue recycling facilities (if applicable);  air pollution control (APC) equipment (if applicable);  stack (if applicable);  noise and odor control;  water use and wastewater reuse and control equipment;  electrical interconnection for sale of electricity, as applicable;  interconnection of all necessary utilities to meet E/C Facility needs;  instrumentation and controls;  a control room;  administrative offices;  public education center;  general facility features – buildings and grounds, utility, chemical and supplemental fuel handling;  stormwater collection and control of all surface water run-off from buildings, impervious surfaces and other disturbed areas, with catch basins that include oil and grease traps and allow for sediment collection, and discharge to the City's stormwater or sanitary sewer system ( for contaminated stormwater) or use of stormwater basins/ponds that are designed for on-site control of stormwater;  maintenance facilities;  laboratory facilities; and FINAL 12/28/12 4-12  all appurtenances and equipment thereto. 4.4 General Design and Construction Standards The E/C Facility shall be designed and constructed in accordance with Applicable Law, Good Industry Practice, Good and Accepted Construction Practice, and applicable design and construction codes and standards (see Appendix F-1). Proposers shall take note of the local climatology, subsurface conditions, seismology and Site-specific characteristics and conditions (see Section 2 and Appendices C and D), and shall design the E/C Facility accordingly for anticipated conditions and in accordance with related codes and requirements. All materials and equipment shall be new and unused, be of heavy-duty construction and of quality suitable and commonly used for high availability, long-term service in utility applications. The E/C Facility shall be designed and constructed utilizing equipment and processes proven to be reliable in similar applications. The E/C Facility shall be designed and constructed for a minimum useful life of thirty (30) years. Buildings should be designed to meet at least minimum LEED certification requirements to the extent possible. 4.5 Design Requirements Design requirements are provided in Appendix F-1 for specific E/C Facility components. 4.6 Environmental Design and Performance Requirements The Contractor shall, at a minimum, meet the environmental design and performance specifications as required by all Federal, State and local permits and approvals required to construct and operate the E/C Facility, including any mitigation measures required by CEQA (see Appendix G, Preliminary CEQA Checklist, for additional information on potential mitigation measures). If not required by a permit or approval, the E/C Facility shall still, at a minimum, meet the requirements specified herein. For Proposal purposes, the requirements described below shall be the minimum basis for design and performance. AIR EMISSIONS Specification: – Compliance with Federal, State and local permit requirements. – Compliance with requirements for good combustion practices, as applicable. – Implementation of Best Management Practices as applicable during construction and operations ODOR Specification: – Fully enclosed facilities – Feedstock receiving and storage area, recycling and pre-processing area, intermediate storage area(s) (if any), product storage areas, and Residue handling and storage areas shall be maintained under negative air pressure; FINAL 12/28/12 4-13 – Digestate composting and curing areas, as applicable, shall be enclosed or covered with collection of air and odor treatment; – Conformance to Odor Impact Minimization Plan or Odor Management Plan, as applicable, to be prepared during permitting, with no objectionable odor beyond site boundary. NOISE Specification: – Compliance with noise standards as established during permitting by appropriate State and local agencies, including conformance to City Comprehensive Plan currently limiting noise level to 70 dB as a "normal level" and 70-85 dB as a "conditionally acceptable" level for an industrially-zoned area. AESTHETICS/ LIGHTING Specification: – Design and arrangement of the E/C Facility on the Site, including use of buffer areas and integration of landscaping and/or vegetated berms, shall minimize aesthetic, visual and lighting impacts on surrounding land users. – Any lighting shall be hooded and directed onto the project site. WATER USE Specification: – Design must minimize water use. WASTEWATER Specification: – Design must minimize process wastewater discharge. – Sanitary discharge to be treated and reused or discharged to the sewer in accordance with City sewer limits. STORMWATER Specification: – Design must include stormwater collection for surface water run-off from buildings, impervious surfaces and other disturbed areas, with on-site treatment and control or with use of the City's stormwater collection system for clean stormwater and discharge of any contaminated stormwater to the sanitary sewer. – Catch basins shall include oil and grease traps and allow for sediment collection. – Development and compliance with a Stormwater Pollution Prevention Plan. RESIDUE Specification: – Residue must be routinely tested and disposed of appropriately. COMPOST Specification: – Compost must meet CalRecycle Compost Standards. – Compost from Biosolids (including compost from Biosolids co-digested with Food Scraps FINAL 12/28/12 4-14 and Yard Trimmings) must also meet US EPA Exceptional Quality Standards for metals and Class A requirements for pathogen reduction. The compost specifications identified above as a minimum requirement shall also apply to Export. 4.7 Construction Requirements The Contractor shall perform the Construction Work in accordance with the Design Work and using Good and Accepted Construction Practice and shall have exclusive responsibility for providing all construction means, methods, techniques, sequences, start-up, and Acceptance Tests, and all procedures necessary and desirable for the correct, prompt and orderly conduct and completion of the Construction Work as required by the E/C Facility. Construction shall be scheduled and conducted, as practical, to minimize impacts and disruptions on existing operations at Byxbee Park, the RWQCP and other surrounding land users. The Contractor's exclusive responsibility to provide all construction means shall include, but is not limited to, providing the following construction requirements: temporary power, light and other utilities; temporary offices and construction trailers; a room for on-site, project review meetings; a furnished office with telephone and computer hook up for use by the City's on-site resident engineer; required design certifications; required approvals; field document control and filing system for the control of all submittals and project communications; quality control and testing; independent laboratory testing services; weather protection for stored materials; site cleanup and housekeeping; construction trade management; temporary parking; safety and first aid facilities; correction or compensation for defective work or equipment; equipment and materials storage areas; workshops and warehouses; temporary fire protection for the construction site; site security; potable water; telephone and portable two-way communication; subcontractor coordination and control; receipt and unloading of delivered materials and equipment; erection rigging; temporary supports, and coordination of all construction activities of the Contract. The Contractor warrants to the City that materials and equipment incorporated in the E/C Facility will be new unless otherwise specified, and in conformance with the Contract documents. The Contractor shall fully cooperate with the City and its designated representatives to allow the City to monitor and review construction progress, design documents and any proposed changes to design. The Contractor shall apply Federal, State and local wage and hour laws to the extent required by Applicable Law. For purposes of its Proposal, the Proposer should assume that prevailing wages will be required for the E/C Facility and Export. The Contractor shall make a good faith effort to employ staff from the local and regional labor markets. Appendix F-1 specifies requirements for Construction Work Monitoring, Testing and Observation; correction of Construction Work; provision of record drawings and documents; FINAL 12/28/12 4-15 procedures for design document review and construction review; and start-up requirements. 4.8 Start-Up Test and Acceptance Test Requirements Testing of equipment and systems installed, as part of the E/C Facility, will occur in two phases: the start-up testing and the Acceptance Test. The City will provide Acceptable Feedstock during both test(s), upon receipt of reasonable notice from the Contractor. 4.8.1 Start-up Testing In the initial phase, start-up testing of equipment and systems will be completed to demonstrate that each is installed correctly, functions as intended and meets the applicable conditions specified. Start-up testing will occur once the equipment or system has been installed and is mechanically and electrically complete. The City or its representatives shall have the right to observe any start-up testing. 4.8.2 Acceptance Test Upon successful completion of the start-up testing, the Acceptance Test will occur. The Contractor shall prepare an Acceptance Test Plan and conduct an Acceptance Test. The Acceptance Test is to demonstrate that the E/C Facility functions as intended to meet Performance Guarantees, including permit limits. The Acceptance Test Plan is defined here as a plan for conduct of the Acceptance Test, which is to include sequencing of operations, test methodologies, and scheduling of the testing. No temporary equipment will be allowed to operate during the Acceptance Test. The Acceptance Test shall be repeated in its entirety at the Contractor's expense if there are any permit violations, or if the Contractor is forced to use temporary equipment to maintain operation. A Draft Acceptance Test Plan shall be submitted to the City a minimum of 120 days prior to the start of the Acceptance Test. A Final Acceptance Test Plan shall be submitted to the City a minimum of 30 days prior to the start of the Acceptance Test. Acceptance Testing shall not commence prior to receipt of the City's approval of the Final Acceptance Test Plan. Note that prior to conducting the Environmental Compliance Test, EPA and State and local regulatory agencies, as appropriate, must approve the environmental testing component of the Acceptance Test Plan. If the Contractor will use landfill gas delivered to the E/C Facility by the City, the Acceptance Test Plan shall incorporate the use of the landfill gas during the Acceptance Test, as appropriate. The Contractor must satisfy the following Acceptance Test requirements, as applicable to the proposed technology:  Reliability Test – a test to be conducted over a continuous 14-day period (or alternate duration, as appropriate for the technology and as agreed to FINAL 12/28/12 4-16 by the City) to demonstrate that the E/C Facility can operate as intended while processing Acceptable Feedstock over a sustained period of time. During the Reliability Test, the E/C Facility shall process ninety five percent (95%) of the Rated Capacity of Acceptable Feedstock over a continuous 14-day period (or alternate duration, as appropriate for the technology and as agreed to by the City), on a batch or continuous operating schedule depending on the design and intended operation of the E/C Facility. As applicable, the fuel and/or power generation equipment shall be on-line, producing (and exporting, as applicable) energy for a minimum of 95% of the duration of the Reliability Test.  Capacity Test – a test to be conducted over a continuous 48-hour period (or alternate duration, as appropriate for the technology and as agreed to by the City), to demonstrate that the E/C Facility can process one hundred percent (100%) of the Rated Capacity of Acceptable Feedstock during that time. The Capacity Test shall be conducted simultaneously with the Material Recovery Test and the Diversion Test, as appropriate for the technology. During the Capacity Test, the E/C Facility shall operate in compliance with parameters as measured by the continuous emission monitoring system, as applicable.  Regulatory Environmental Compliance Test – a test to demonstrate that the E/C Facility can meet air emissions compliance limits in its permits and other environmental approvals as well as contractual performance proposed and included in the Contract.. The Environmental Compliance Test shall be conducted using standard State and EPA testing methods (40 CFR, Part 60, Appendix A) and/or methods otherwise approved in advance by the City, the EPA, and applicable State and local regulatory agencies. The appropriate regulatory agency(ies) shall approve the environmental testing component of the Acceptance Test Plan prior to conducting the Environmental Compliance Test.  Electric Output Test – a test for those facilities that produce electricity for export to the City or another utility or to the RWQCP, to be conducted over a continuous 24-hour period (or alternate duration, as appropriate for the technology and agreed to by the City) to demonstrate the E/C Facility can meet the contractual performance proposed and included in the Contract, for the production rate of electricity for sale.  Fuel Output Test – a test for those facilities that produce fuel for export, to be conducted over a continuous 24-hour period (or alternate duration, as appropriate for the technology and agreed to by the City) to demonstrate the E/C Facility can meet the contractual performance proposed and included in the Contract for the production rate of fuel for sale.  Material Recovery Test – a test to be conducted over a continuous 48-hour period (or alternate duration, as appropriate for the technology and agreed to by the City), to demonstrate the E/C Facility can meet the contractual performance proposed and included in the Contract for quantity and quality of materials and products recovered by the pre- FINAL 12/28/12 4-17 processing, conversion, and post-processing systems of the E/C Facility, as applicable. The Material Recovery Test shall be conducted simultaneously with the Capacity Test, as appropriate for the technology.  Diversion Test – a test to be conducted over a continuous 48-hour period (or alternate duration, as appropriate for the technology and agreed to by the City), to demonstrate the E/C Facility can meet the contractual performance proposed and included in the Contract for landfill diversion. The Diversion Test shall be conducted simultaneously with the Capacity Test, as appropriate for the technology.  Ambient Noise – a test to be conducted while all equipment is operating, consisting of ambient noise measurements taken at appropriate locations to demonstrate that noise levels are in compliance with all State and local regulations and in accordance with the requirements of this RFP and the Contract.  Ambient Odor – a test to be conducted while all equipment is operating, consisting of ambient odor measurements taken at appropriate locations to demonstrate that no objectionable odors from the E/C Facility are detectable beyond the Site boundaries in accordance with the requirements of this RFP and the Contract. The duration and sequencing of the Acceptance Test procedures shall be as described above or otherwise as appropriate for the type of technology used in the E/C Facility, and as agreed to by the City. In all cases, the schedule and sequencing shall allow for proper administration and complete documentation of the tests, and shall be customary for industry practices for the technology used. The Contractor shall propose the schedule and sequencing of the Acceptance Test in the Acceptance Test Plan, which shall be subject to review and approval by the City. 4.9 Operation and Maintenance Requirements Operation and maintenance (O&M) requirements for the E/C Facility and service requirements for Export, as applicable, are provided in Appendix F-1. These requirements include the following, which are applicable to both the E/C Facility and Export unless otherwise noted as being specifically applicable to one or the other of the two:  providing services necessary for a smooth start-up for operation and maintenance of the E/C Facility or for start-up and provision of Export services;  providing continuous, full-service operation and maintenance services and asset management for the E/C Facility, in accordance with an approved O&M manual and in accordance with the Contract and Good Industry Practices, whichever is most stringent;  providing a staff of qualified and experienced employees, and providing appropriate training of staff; FINAL 12/28/12 4-18  acquiring and holding all required Federal, State and local approvals, licenses, and certifications necessary to operate, maintain and manage the E/C Facility, or, as applicable, to receive, transport and process Acceptable Feedstock delivered by the City for Export;  administering operation and maintenance activities for the E/C Facility using computerized operations and maintenance management system provided by the Contractor;  maintaining records and preparing reports;  preparing an Emergency Preparedness Plan (EPP) in accordance with Federal and State regulations governing emergency action and fire prevention plans and in cooperation with Federal, State and local officials and public safety departments;  preparing and implementing a technical and safety training plan and program in accordance with OSHA requirements, Good Industry Practice and the Contractor standard practices, whichever are most stringent;  meeting the requirements of Applicable Law and minimizing noise impacts on surrounding land use for the E/C Facility, and, as appropriate for Contractor vehicles using the Site for Biosolids Export;  managing odors from the E/C Facility such that no objectionable odor can be detected beyond the Site boundaries, and investigating and satisfying odor complaints and correcting any odor problems should they occur, and, as appropriate for Contractor vehicles using the Site for Biosolids Export;  performing all required sampling, testing and laboratory analyses and preparing and filing the required reports;  providing information and other support to assist the City in their public education programs;  maintaining positive community relations, and  preparing an Exit Transition Plan and providing services necessary for a smooth, uninterrupted transition of service to the City or its designated contractor (at the end of the Contract, whether at its stated expiration or by earlier termination for whatever reason). 4.10 Records and Reports The Contractor shall maintain records and prepare reports as described in Appendix F-1, including reports to the City documenting (as applicable) Export activities, operation and maintenance of the E/C Facility, regulatory activities, and other relevant information. Reports shall include a monthly and an annual operations and maintenance report, a monthly complaint log reporting any and all complaints relating to the E/C Facility or Export activities and a description of the response, and a monthly statement verifying payments due and/or owed (with supporting information). FINAL 12/28/12 4-19 4.11 Staffing As further described in Appendix F-1, the Contractor shall provide a staff of qualified and experienced employees in accordance with the plan for staffing and shall provide such additional third-party support as may be needed to perform its duties and obligations. 4.12 Training The Contractor shall provide, as appropriate, overall career development and support to its staff through the use of training programs. Training programs shall cover specialized areas such as safety, community relations, and emergency preparedness. As described in Appendix F-1, the Contractor shall notify the City in advance of any such training programs held by the Contractor, and shall allow participation by the City up to the class size prescribed by the Contractor’s training policy. 4.13 Community Relations As further described in Appendix F-1, the Contractor shall maintain positive community relations within the community. At a minimum, the Contractor will provide a 24-hour telephone hotline and email address for those who wish to comment on areas of concern, and will report to the City any complaints related to the E/C Facility or Export activities. 4.14 Public Information Program The Contractor shall be responsible for assisting the City with their public information programs by providing information to support those programs. The Contractor shall describe its proposed efforts, which may include activities such as:  Creation of a Web Page informing the public of the status of the E/C Facility or Export activities and various public education materials and programs available associated with the E/C Facility or Export activities.  Issuance of newsletters and/or press releases to inform the public of the Contractor's activities related to the E/C Facility or Export.  Preparation of fact sheets and household guides explaining State and local community regulations and activities at the E/C Facility or through Export that positively affect recycling and renewable energy generation.  Presentations to local civic, environmental and other groups or at public events, which will include presentation of available videos.  Providing a repository of publications pertaining to policies, programs and related information associated with generation and management of Food Scraps, Yard Trimmings, and Biosolids, including information on products generated from the management of such feedstock. Such publications shall be available to interested parties at the E/C Facility or another location agreed to by the City. Such repository shall be inclusive of information or guides generated and provided by the City. FINAL 12/28/12 4-20  Hosting of E/C Facility open houses and scheduled tours for interested members of the public.  Technical assistance on source and waste toxicity reduction to target users of concern.  Participation in public hearings, public meetings, and meetings of elected officials and interested groups.  Participation in State and local community public events. 4.15 Performance Guarantees The Contractor shall meet Performance Guarantees for the E/C Facility, no less stringent than the limits specified below and as proposed by the Proposer on Proposal Form 10 (provided in Appendix A). Confirmation for agreeing to meet these guarantees shall be provided by completing, signing and submitting the Guarantor Acknowledgement (Proposal Form 4) and E/C Facility Performance Guarantees (Proposal Form 10) provided in Appendix A. Feedstock Throughput Guarantee The Contractor and Guarantor shall guarantee that the E/C Facility shall be capable of processing the Rated Capacity of Acceptable Feedstock, as specified by the Proposer and included in the Contract. Availability Guarantee The Contractor and Guarantor shall guarantee that the percentage of Rated Capacity of the E/C Facility available during any Contract Year shall be at least eighty-five percent (85%). Availability shall be measured as a percentage of Rated Capacity. Annual Feedstock Throughput Guarantee The Contractor and Guarantor shall guarantee that the E/C Facility shall process an annual quantity of Acceptable Feedstock that is no less than the Availability Guarantee (which shall be no less than 85%) multiplied by the Rated Capacity of Acceptable Waste per year. Electric Generating Guarantee For E/C Facilities that generate electricity for sale to the City (including offset of the electric needs of the RWQCP) or export to another utility, the Contractor and Guarantor shall guarantee that the E/C Facility shall be capable of generating for export, on average, a minimum amount of electricity measured in terms of kilowatt hours (kWh) of electric power per ton of as-received Acceptable Feedstock processed, as specified by the Proposer and included in the Contract. Annual Electric Output Guarantee For E/C Facilities that generate electricity for sale to the City (including offset of the electric needs of the RWQCP) or export to another utility, the Contractor and Guarantor shall guarantee that the E/C Facility shall deliver annually for sale a FINAL 12/28/12 4-21 quantity of electricity calculated by multiplying the Annual Feedstock Throughput Guarantee by the Electric Generating Guarantee. Fuel Generating Guarantee For E/C Facilities that generate fuel for sale, the Contractor and Guarantor shall guarantee that the E/C Facility shall be capable of generating for sale, on average, a minimum amount fuel measured in terms of units of fuel per ton of as-received Acceptable Feedstock processed, as specified by the Proposer and included in the Contract. Annual Fuel Output Guarantee For E/C Facilities that generate fuel for sale, the Contractor and Guarantor shall guarantee that the E/C Facility shall deliver annually for sale a quantity of fuel calculated by multiplying the Annual Feedstock Throughput Guarantee by the Fuel Generating Guarantee. Material Recovery Guarantee As applicable, the Contractor and Guarantor shall guarantee that the E/C Facility shall be capable of producing or otherwise recovering for sale or beneficial use a minimum quantity of materials and/or products per ton of Acceptable Feedstock processed, with the Proposer to specify the materials and/or products to be recovered/produced and the guaranteed quantity and quality of each such material or product. Diversion Guarantee The Contractor and Guarantor shall guarantee that the E/C Facility shall achieve an annual diversion rate to be specified by the Proposer, which rate shall be no less than 80 %. The diversion rate shall be calculated annually as the total tons of Acceptable Feedstock processed less the tons of Residue disposed, divided by the tons of Acceptable Feedstock processed. Environmental Performance Guarantee The Contractor and Guarantor shall guarantee that the E/C Facility is operated and maintained in compliance with Applicable Law and all Environmental Performance Requirements included in the Contract. It shall include noise, odor and other required environmental performance guarantees. Scheduled Acceptance Date Guarantee The Contractor and Guarantor shall guarantee the successful completion and Acceptance of the E/C Facility by the Acceptance Date, as proposed by the Proposer. The Acceptance Date proposed by the Proposer shall be based on the Proposer's schedule to permit, design and construct the E/C Facility, as agreed to by the City, and shall not be any later than January 1, 2019. For Export, the Contractor shall be responsible for meeting performance obligations as specified below. Confirmation for agreeing to meet these performance obligations shall be provided by completing, signing and submitting the Guarantor Acknowledgement (Proposal Form 4). FINAL 12/28/12 4-22 Annual Feedstock Throughput Obligation The Contractor and Guarantor shall annually Export Acceptable Feedstock delivered by or on behalf of the City up to and including the Maximum Annual Delivery Thresholds of Acceptable Feedstock specified in Section 5 of this RFP, over the Contract Term. Environmental Performance Obligation The Contractor and Guarantor shall provide Export services in compliance with Applicable Laws, regulations and standards and all Environmental Performance Requirements included in the Contract, as negotiated Guaranteed Schedule for Commencing Export Services For Export, the Contractor and Guarantor shall guarantee to commence Export services no later than July 1, 2017. FINAL 12/28/12 5-1 5.0 KEY TERMS AND CONDITIONS OF CONTRACT Key terms and conditions (the Contract Principles) of the Contract are presented in this Section. The Contract Principles presented below have been developed as a summary of the significant cost and risk provisions that the City expects will be included in the Contract. These should be used by the Proposer as a guide to the responsibilities that are to be undertaken by the Contractor, to enable the Proposer to assess the risks associated with specific performance obligations and to develop pricing. The City expects that the Proposer will include in its Business Proposal any comments, exceptions or requested modifications regarding the Contract Principles, and the City shall assume that the Proposer’s pricing is based on the Contract Principles, as the Proposer may request to modify. Although modifications to the Contract Principles are acceptable, the extent of deviation from the provisions of this RFP will be an important Proposal evaluation consideration. Certain provisions of the RFP are required. These provisions are listed in Section 6.2.12. As described in this RFP, the City is soliciting proposals for either an E/C Facility at the Site designated in this RFP or for Export of Acceptable Feedstock to a processing facility or facilities located outside of the City. In the discussion of key terms and conditions that follows, Proposer’s should note that terms apply to both the E/C Facility and Export, unless specific terms and conditions are described for either the E/C Facility or Export. As described elsewhere in this RFP, for an E/C Facility Proposal, the Contractor will be responsible for permitting, designing, constructing and operating an E/C Facility. The Contractor shall also finance and own the E/C Facility. For the Base Case Proposal, Acceptable Feedstock includes food scraps, yard trimmings and biosolids from the City. For the required Alternative Proposal, Acceptable Feedstock includes food scraps and yard trimmings from the City. This Section of the RFP addresses associated terms and conditions of Contract for the Base Case Proposal. 5.1 Feedstock Delivery Requirements 5.1.1 Minimum Annual Deliveries The City shall be required to deliver (or cause to be delivered) a minimum quantity of Acceptable Feedstock each Contract Year (the Minimum Annual Delivery Requirement), or shall be subject to a Shortfall Charge. If the Contractor accepts Spot Market Feedstock in response to the City’s inability to meet its Minimum Annual Delivery Requirement, any Shortfall Charge that may be due from the City shall be reduced by the total amount of revenues realized by the Contractor from any such Spot Market Feedstock. 5.1.2 Maximum Annual Deliveries The City shall be allowed to deliver (or cause to be delivered) in each Contract Year a quantity of Acceptable Feedstock up to the Maximum Annual Delivery Threshold before incurring Excess Tonnage Fees, as described in this Section 5. FINAL 12/28/12 5-2 5.1.3 Application of Acceptable Feedstock Tipping Fee(s) and Excess Tonnage Fee For the E/C Facility or Export, the Proposer may provide separate tipping fees for each type of Acceptable Feedstock or a single combined tipping fee that encompasses all Acceptable Feedstock. As described under “Annual True-Up/Settlement Process,” below, all tonnage in excess of the Maximum Annual Delivery Thresholds shall be subject to the Excess Tonnage Fee, should there be one. 5.1.4 Minimum and Maximum Deliveries Specified The Minimum Annual Delivery Requirements and Maximum Annual Delivery Thresholds are identified below in Table 5-1: While the Contractor may accept and process all types of Acceptable Feedstock, such as clean wood waste that is not painted or pressure treated, and agricultural waste suitable for anaerobic digestion or gasification, these materials shall not be included in the City’s Minimum Annual Delivery Requirement or Maximum Annual Delivery Threshold, and the City shall have no obligations or liabilities regarding the delivery to the Contractor of such materials, or the amounts or characteristics of such materials. 5.1.5 Periodic Delivery Reset 5.1.5.1 Periodic Delivery Reset Assuming 20-Year Operating Period The Minimum Annual Delivery Requirements and Maximum Annual Delivery Thresholds shall be in effect for the first ten (10) Contract Years following the Acceptance Date. Effective with the eleventh (11th) Contract Year, the City may, without penalty or cost, implement a one-time reset of its Minimum Annual Delivery Requirements and/or Maximum Annual Delivery Thresholds, provided that such resets for either are no more nor less than 10% of the previously established Minimum Annual Delivery Requirements and Maximum Annual Delivery Thresholds, respectively. In the event such resets result in additional capacity becoming available at the E/C Facility or Export or any individual component of the E/C Facility or Export, the Contractor may contract for Spot Market Feedstock on whatever terms it deems appropriate, and the Most Favored Pricing provisions of the Contract shall not apply to the quantity of Acceptable Feedstock that is affected by the reset. FINAL 12/28/12 5-3 Table 5-1 MINIMUM ANNUAL DELIVERY REQUIREMENTS AND MAXIMUM ANNUAL DELIVERY THRESHOLDS Participant Contractual Requirements Minimum Annual Delivery Requirement (Tons/Year) (1) Maximum Annual Delivery Threshold (Tons/Year) (1) Food Scraps 12,100 15,500 Yard Trimmings 13,500 14,300 Biosolids (Dewatered to 26% Solids, excluding FOG and scum) 22,602-Year 2015 27,614-Year 2040 29,382-Year 2050 32,288-Year 2015 39,448-Year 2040 41,975-Year 2050 Biosolids (Liquid @ Approx. 3.3% Solids, excluding FOG and scum) FOG and scum 41.87-Year 2015 51.15-Year 2040 54.42-Year 2050 158 59.81-Year 2015 73.07-Year 2040 77.75-Year 2050 226 (1) All quantities are expressed in tons per year except for liquid Biosolids, which are expressed in millions of gallons/year . Minimum Annual Delivery Requirement for Biosolids (excluding FOG and scum) represents 70% of RWQCP output. Maximum Annual Delivery Threshold for Biosolids (excluding FOG and scum) represents 100% of RWQCP output. 5.1.5. Second Periodic Delivery Reset Assuming 30-Year Optional Operating Period The Minimum Annual Delivery Requirements and Maximum Annual Delivery Thresholds as may have been reset under Section 5.1.5.1 of this RFP shall be in effect for the first twenty (20) Contract Years following the Acceptance Date. Effective with the twenty first (21st) Contract Year, the City may, without penalty or cost , implement an additional reset of its Minimum Annual Delivery Requirements and/or Maximum Annual Delivery Thresholds, provided that such resets for either are no more nor less than 10% of the previously established Minimum Annual Delivery Requirements and Maximum Annual Delivery Thresholds, respectively. In the event such resets result in additional capacity becoming available at the E/C Facility or Export or any individual component of the E/C Facility or Export, the Contractor may contract for Spot Market Feedstock on whatever terms it deems FINAL 12/28/12 5-4 appropriate, and the Most Favored Pricing provisions of the Contract shall not apply to the quantity of Acceptable Feedstock that is affected by the reset. 5.2 Fees, Payments and Compensation 5.2.1 Construction Payments to Contractor E/C Facility The Contractor shall fund all E/C Facility construction through the financing implemented under its financing plan. The City shall have no obligation to contribute or provide any funds for construction of the E/C Facility and shall have no role or involvement in or liability regarding the management or disbursement of construction funds. The City shall provide utility service to the Site as described in this RFP. Export The Contractor shall fund all construction for any facilities required outside of the City. The City shall have no obligation to contribute or provide any funds for construction of any facilities or equipment, except as otherwise described in this RFP for construction of biosolids storage and loading facilities in the City, and the City shall have no role or involvement in or liability regarding the management or disbursement of construction funds for any facilities required outside of the City. 5.2.2 Operations Payments to Contractor E/C Facility For the E/C Facility, the Contractor shall be compensated monthly through a Processing Service Fee, plus, annually, any payments or adjustments that might be due the Contractor as a result of the annual settlement process provided for in this Section. Such compensation and payments or adjustments that result from the annual settlement process shall be the only compensation paid to the Contractor and shall include and provide for all costs of the Contractor, including payments due from the Contractor to the City as described under “Contractor Payments and Costs,” below. No other source of payment or cost recovery shall be allowed the Contractor. Export The Contractor shall be paid monthly a Processing Service Fee plus, annually, any payments or adjustments that might be due the Contractor as a result of the annual settlement process provided for in this Section. The Processing Service Fee and payments or adjustments that result from the annual settlement process shall be the only compensation paid to the Contractor and shall include and provide for all costs of the Contractor. No other source of payment or cost recovery shall be allowed the Contractor. FINAL 12/28/12 5-5 5.2.3 Processing Service Fee E/C Facility The Processing Service Fee (PSF) shall be the monthly amount represented in the following formula for the Processing Service Fee. PSF = (AFC + MADJ) Where: Acceptable Feedstock Charge (AFC) means the product of the per ton fee for the Contractor’s acceptance and processing of all Acceptable Feedstock that is delivered to the Contractor (the Acceptable Feedstock Tipping Fee/AFTF) times the quantity of Acceptable Feedstock that is actually delivered or caused to be delivered by the City to the Contractor during a monthly billing period. The annual settlement process shall provide procedures for: (a) the calculation of any Excess Tonnage Fee, if proposed, in the event that the deliveries of individual types of Acceptable Feedstocks to the Contractor during a Contract Year from the City exceed the Maximum Annual Delivery Thresholds; and, (b) the calculation of any Shortfall Charge in the event that the deliveries of individual types of Acceptable Feedstock to the Contractor during a Contract Year from the City are less than the Minimum Annual Delivery Requirements (taking into account revenues from Spot Market Waste, as provided for under Section 5.2.6). The Acceptable Feedstock Tipping Fee shall include all costs associated with the recovery and/or amortization of the financing of the E/C Facility and all costs associated with the operation and maintenance of the E/C Facility, and the provision of services to the City, including all costs due from the Contractor as described under “Contractor Payments and Costs,” Section 5.2.4. The Acceptable Feedstock Tipping Fee shall be subject to adjustment by the Adjustment Factor. The Acceptable Feedstock Tipping Fee may be adjusted in the event of agreed-to capital improvements or modifications and in the event of certain financing-related events (such as a debt refinancing which lowers interest costs to the Contractor). Expressed as a formula: AFC = AFTF X monthly tonnage delivered Monthly Adjustments (MADJ) means adjustments and other payments that may be due the Contractor for conditions, events and causes as may be provided for in the Contract, such as Uncontrollable Circumstances or Change in Law. Export The Processing Service Fee (PSF) shall be the monthly amount represented in the following formula. FINAL 12/28/12 5-6 PSF = (AFC + MADJ) Where: Acceptable Feedstock Charge (AFC) means the product of the per ton fee for the Contractor’s acceptance and processing of Acceptable Feedstock that is delivered to the Contractor (the Acceptable Feedstock Tipping Fee/AFTF) times the quantity of Acceptable Feedstock that is actually delivered or caused to be delivered by the City to the Contractor during a monthly billing period. The annual settlement process shall provide procedures for: (a) the calculation of any Excess Tonnage Charge, if proposed, in the event that the deliveries of individual types of Acceptable Feedstocks to the Contractor during a Contract Year from the City exceed the Maximum Annual Delivery Thresholds; and, (b) the calculation of any Shortfall Charge in the event that the deliveries of individual types of Acceptable Feedstock to the Contractor during a Contract Year from the City are less than the Minimum Annual Delivery Requirements (taking into account revenues from Spot Market Waste, as provided for under Section 5.2.6). The Acceptable Feedstock Tipping Fee shall include all costs for pick up, transport, and management/disposal of Acceptable Feedstock, and for Contractor Payments and Costs as specified in Section 5.2.4. Expressed as a formula: AFC = AFTF X monthly tonnage delivered Monthly Adjustments (MADJ) means adjustments and other payments that may be due the Contractor for conditions, events and causes as may be provided for in the Contract. 5.2.4 Contractor Payments and Costs E/C Facility  For RFP purposes, the following Landfill Site and RWQCP Site lease payments shall be assumed for use of these sites: Landfill Site Lease Payment of $10,800 per acre per year, payable in equal monthly installments on the first business day of each month after the E/C Facility financing.  RWQCP Site Lease Payment of $1.00 per year per year after E/C Facility financing, payable in equal monthly installments on the first business day of each month. Export This provision shall not apply to Export. FINAL 12/28/12 5-7 5.2.5 Most Favored Pricing E/C Facility If the E/C Facility has the capacity to accept and process Acceptable Feedstock from parties other than the City, the Contractor shall not, without the prior agreement of the City, enter into processing service agreements with terms of more than three (3) years with parties other than the City that include pricing that is more favorable to such parties than the then prevailing Acceptable Feedstock Tipping Fee that is being charged to the City. In the event that the Contractor desires to accept non-City Acceptable Feedstock for contract terms greater than three (3) years and at a more favorable price than the then prevailing Acceptable Feedstock Tipping Fee, it shall adjust the Acceptable Feedstock Tipping Fee charged to the City to equal the more favorable fee(s) to be charged to others. The Contractor may enter into processing service agreements with terms of less than three (3) years with other parties on any pricing basis that it determines to be prudent at the time. The most favored pricing provisions shall not apply to Spot Market Feedstock that is accepted by the Contractor in the event of a reduced delivery reset by the City. Moreover, the most favored nation pricing provisions shall not apply to Spot Market Feedstock that is accepted by the Contractor in the event that the City does not meet its Minimum Annual Delivery Requirements, for the duration of such period. In such case, the Shortfall Charge shall apply only to the extent that the total of the fees charged by the Contractor for such Spot Market Feedstock are less that the Shortfall Charge provided for in the Contract. Export The same provisions shall apply to Export 5.2.6 Host Community Payment for Spot Market Feedstock E/C Facility The Contractor shall pay the City a Host Community Payment of $__ per ton (as proposed by the Proposer in its Proposal), adjusted annually by the Adjustment Factor, for Spot Market Feedstock delivered to the E/C Facility, except that Host Community Benefits shall not apply to Spot Market Feedstock that is accepted by the Contractor in the event that the City does not meet its Minimum Annual Delivery Requirements or if the Contractor accepts Spot Market Feedstock in response to a reduced Periodic Delivery Reset (as provided for in section 5.1.5 above). Payments shall be made in accordance with the Annual True Up/ Settlement Process described in Section 5.2.10. Export The provision described above for spot market payments shall not apply to Export. FINAL 12/28/12 5-8 5.2.7 Cost Savings Sharing E/C Facility Should the cost of E/C Facility financing, construction or operation and maintenance be reduced below that proposed by the Contractor and provided for in the Contract , for example, through the adoption of more efficient or cost effective processes or systems, the Contractor shall provide an equitable reduction in the Acceptable Feedstock Tipping Fee and the Excess Tonnage Fee, as proposed in the Pricing Proposal Forms. Export This provision shall not apply to Export. 5.2.8 Payment The Contractor shall be paid the Processing Service Fee by the City on a monthly basis for services provided in the just concluded month, based upon invoices submitted by the Contractor to the City, and subject to City review and approval. The Contractor shall be paid other charges, if incurred, such as the Shortfall Charge and the Excess Tonnage Fee, as part of the Annual Adjustment process. 5.2.9 Compensation Adjustments E/C Facility Construction-Related Adjustments Construction related adjustments will be allowed for the E/C Facility, if appropriate and as negotiated with the City, as allowed by Contract, such as for Uncontrollable Circumstances, a Change in Law, or City directed design changes. Any such adjustment shall be made through an adjustment to the Processing Service Fee. Annual Adjustments The following fees and payments shall be subject to annual adjustment by the Adjustment Factor for the E/C Facility: 1. Acceptable Waste Tipping Fee (AWTF) 2. Excess Tonnage Fee (ETF) 3. Shortfall Charge (SC) 4. Host Community Benefit for Spot Market Feedstock. With the exception of the Host Community Benefit for Spot Market Feedstock, in the event that the application of the Adjustment Factor results in the reduction of a fee or cost, such fee or cost shall be so reduced. Other Adjustments The AFTF or Annual Service Fee, as appropriate, ETF, and SC shall be subject to equitable adjustment through negotiations in the event that causes specified in the FINAL 12/28/12 5-9 Contract, such as an Uncontrollable Circumstance or Change inLaw, act to increase or decrease the costs of the Contractor, except as provided for in Sections 5.10.13 and 5.10.17 regarding duration of such occurrences and except that the Contractor shall not be entitled to an adjustment of such fees if the costs associated with such Uncontrollable Circumstances or Changes-in-Law, individually, are less than $25,000 in the aggregate for Uncontrollable Circumstances or Changes-in-Law in any one Contract Year. The AFTF, ETF and SC may also be subject to equitable adjustment through negotiations in the event that the Contractor incurs additional costs due to City-directed changes. Export The Annual Adjustments described above shall also apply to Export, with the exception of the Host Community Benefit for Spot Market Feedstock which shall not apply to Export. 5.2.10 Annual True-up/Settlement Process Within 45 days of the conclusion of each Contract Year, the Contractor shall provide the City with an Annual Settlement Statement setting forth the determination of outstanding fees or obligations of the parties with respect to such Contract Year and a reconciliation of such amount with the amounts actually paid by each party with respect to such Contract Year. The Annual Settlement Statement shall include sufficient documentation to allow the City to verify quantities, unit prices, and all resulting costs and revenues as applicable. The City, or the Contractor, as appropriate, shall pay all undisputed amounts within 45 days after the receipt of such Annual Settlement Statement. If any amount is then in dispute, the Annual Settlement Statement shall identify the subject matter and reasons for such dispute, and include a good faith estimate of the amount in question. The appropriate party shall review any disputed matter within thirty (30) days of the receipt of the notice of dispute and, if the matter cannot be resolved through discussion and negotiation, shall refer the matter to dispute resolution. As a part of the settlement process, and subject to substantiation by the City, the following shall also be calculated and paid to the affected party, as appropriate:  Shortfall Charge. The Shortfall Charge shall be levied by the Contractor in the event that deliveries by the City during the Contract Year of Acceptable Feedstock are below the Minimum Annual Delivery Requirements set in the Contract. The Shortfall Charge shall be calculated by multiplying the Shortfall Charge ($___ per ton), as proposed by the Contractor in its Proposal and included in a subsequent Contract, times the difference between the amount of Acceptable Feedstock actually delivered and the minimum amount of Acceptable Feedstock that was required under the Contract to be delivered. The City shall retain the right to mitigate any shortfall tonnage in any individual Acceptable Feedstock by allocating any other excess feedstocks FINAL 12/28/12 5-10 delivered by the City that exceeds that Minimum Annual Delivery Requirement. In addition, the revenue from Spot Market Feedstock shall be used to mitigate any shortfall tonnage of the City.  Excess Tonnage Fee. The Excess Tonnage Fee, if proposed, shall be levied by the Contractor in the event that delivery by the City during the Contract Year of Acceptable Waste exceeds the Maximum Annual Delivery Thresholds set forth in the Contract. The total Excess Tonnage Fee due shall be calculated by multiplying the per ton Excess Tonnage Fee ($___ ), if proposed by the Contractor in its Proposal, times the amount of excess tonnage accepted by the Contractor during the Contract Year. The City shall retain the right to mitigate any excess tonnage by allocating any individual shortfall in excess Acceptable Feedstock delivered by the City.  Host Community Payments. The Annual Settlement Statement shall include the calculation of the host community payments to the City, as provided for in Section 5.2.6. 5.3 Ownership and Financing E/C Facility The Contractor shall finance and own the E/C Facility and improvements to the Site that it has made. The City shall retain ownership of the Site(s), subject to the Lease referenced in Section 1.4 of this Request for Proposals. The Contractor shall be solely responsible for the cost of the design, construction and operation of the E/C Facility and all components thereof. The Contractor itself, or through third-party financing or other equity contributions, shall provide in a timely manner all funds required to perform the design-build-operation work. Export The Contractor shall own any facilities that are used in the provision of transport and processing services under the Contract or, if it does not own such facilities, shall demonstrate to the satisfaction of the City that it has the right to deliver City Acceptable Feedstock to such facilities for the Term of the Contract. If the Contractor intends to expand existing facilities or construct new facilities in order to enable it to provide services under the Contract, it shall be solely responsible for the cost of design, construction and operation. 5.4 Option to Acquire or Remove the E/C Facility E/C Facility Upon the expiration of the Initial Term or any renewals thereof, or Contract termination, the City shall have the exclusive option, at its sole discretion, to acquire the E/C Facility or any components thereof and any other improvements made by the Contractor at the Site. If the right to purchase is exercised prior to the end of the Initial Term or any renewal, the City shall make payment equal to the then remaining debt service. If the right to purchase is exercised at the expiration of the initial Term, or any Contract renewal, the City shall make FINAL 12/28/12 5-11 payment of $1.00. If the City determines not to exercise such option, the Contractor shall remove the E/C Facility from the Site and restore the Site to a condition reasonably equivalent to its condition before construction of the E/C Facility within three hundred and sixty five (365) days from written notice from the City of its intention not to acquire the E/C Facility. The City shall provide the Contractor with at least one hundred eighty (180) days written notice of its intention to acquire or require the removal of the E/C Facility. In no event shall the Contractor be allowed to occupy the Site and operate the E/C Facility after termination or the expiration of the Term or any renewal(s) thereof except in the case of the execution of a new or amended contract between the City and the Contractor. Export This provision shall not apply to Export. 5.5 Failure to Achieve Project Financing E/C Facility If the Contractor has not obtained E/C Facility financing within one year from the date upon which financing is to occur in the Contractor's project schedule as set forth in the Contract, the City shall have the right to terminate the Contract at its convenience. Export In the event that the Contractor intends or needs to finance an expansion of existing facilities or the construction of a new facility(ies) in order to accept and process City Acceptable Feedstock, and if the Contractor has not obtained financing within one year from the date upon which financing is to occur in the Contractor’s project schedule as set forth in the Contract, the City shall have the right to terminate the Contract at its convenience . 5.6 Design and Construction of the E/C Facility 5.6.1 Design-Construct Responsibility The Contractor shall have complete responsibility for the design and construction of the E/C Facility. The Contract shall set forth the minimum design requirements for the E/C Facility based on the technical requirements set forth in Section 4 of this RFP and the Contractor's Proposal, as negotiated. The Contractor shall complete all design requirements for full capacity operation of the E/C Facility, and shall complete the E/C Facility according to the its final design. Construction shall be of the quality required by the Design Requirements and the Construction Requirements set forth in Section 4 of this RFP using Good and Accepted Construction Practice as defined by the definition section of this RFP, and the E/C Facility shall have a minimum useful life of 30 years. The Contractor shall be responsible for complying with all requirements imposed by Applicable Law relating to the development of the E/C Facility. For purposes of responding to this RFP, it should be assumed that the City will: close and cap the landfill; construct a retaining wall between the Site and the portions of the landfill that will not be used by the E/C Facility; relocate existing landfill leachate and landfill gas lines; construct utility services to the Site boundary (sewer, stormwater, water, gas, electricity); construct a stone or gravel pad on the FINAL 12/28/12 5-12 Site; and deliver landfill gas to the Site. Excavated material from E/C Facility Site will be placed in the landfill as part of landfill closure. All other Site preparations and/or Site improvements shall be the responsibility of the Contractor. 5.6.2 Permits and Licenses With exception of CEQA, the Contractor shall be responsible for all necessary permits and licenses to provide Services. 5.6.3 Applicable Employment Laws The Contractor shall apply federal, State and local wage and hour laws to the extent required by Applicable Law. For purposes of its Proposal, the Proposer should assume that prevailing wages will be required for the E/C Facility and Export. 5.6.4 Site Conditions The City shall be responsible for subsurface conditions, including existing subsurface soil contamination and the presence and consequences of natural or man-made contamination, infrastructure and existing construction. The Contractor shall be responsible for surface conditions, construction of surface infrastructure, foundations, drainage systems, roads and the like, including new construction of subsurface infrastructure, such as foundations, necessary for the E/C Facility and compatible with landfill capping. 5.6.5 Capital Modifications and Improvements E/C Facility City approval shall not be required for small-scale capital modifications or improvements under a Contract-specified cost ($50,000), provided that such will not reduce the capacity of or otherwise adversely affect the aesthetics, environmental impacts, operational integrity or performance of the E/C Facility. City approval shall be required for all other capital modifications or improvements, including the financing approach and costs for such capital modifications. If modifications or improvements are made in response to events or causes as may be specified in the Contract, such as an Uncontrollable Circumstance or Change in Law, Contractor service fees will be appropriately adjusted as per Section 5.2.9 of this RFP. If modifications or improvements are made at the City’s request, Contractor compensation shall be appropriately adjusted. If modifications are made at the Contractor’s request, as approved by the City, Contractor compensation shall be appropriately adjusted. If modifications or improvements result in cost savings, the Contract will specify standards for City/Contractor sharing of cost savings. Export The City shall finance and construct any facilities that may be needed to dewater, store and load biosolids into the Contractor’s vehicles at the Site. The Contractor shall be responsible for financing any vehicles required to accept and transport City FINAL 12/28/12 5-13 biosolids as well as any financing associated with the construction or improvement of any Contractor facility that is to receive Acceptable Feedstock, including site conditions associated with that facility. 5.7 Operations and Maintenance 5.7.1 Operations Generally E/C Facility Operation of the E/C Facility shall occur no later than the date for such operation as set forth in the Contract between the City and the Contractor, unless otherwise agreed to by the parties. Operation of the E/C Facility is described in Section 4 of this RFP. The Contractor, at its expense, shall provide uninterrupted operation of the E/C Facility in accordance with Applicable Law, Good Industry Practice, Good and Accepted Operating Practice, the Operation and Maintenance Manual, the Operations and Maintenance Standards set forth in the Contract, the Performance Guarantees, and any other applicable requirements of the Contract. At no time shall the Contractor use or permit the use of the E/C Facility for any purposes other than those contemplated by the Contract. Should the E/C Facility not be operable, for planned outage or unplanned outage, the Contractor shall be responsible after the dates specified in the Contract for alternative processing of Acceptable Feedstocks. In such an event, the Contractor shall transport and process Acceptable Feedstocks at facilities approved by the City. Such facilities shall meet the same processing requirements as those specified for the primary facilities, unless the City approves alternative processing requirements. The Contractor shall make a good faith effort to employ staff from the local and regional labor markets. The Contractor shall be responsible for arranging for the disposal of E/C Facility residuals and of unprocessed or by-passed Acceptable Feedstock received, except that the Contractor may refuse deliveries of Unacceptable Feedstock, the disposal of which shall be a City responsibility. Disposal sites and/or facilities shall be subject to the approval of the City, whether the sites and/or facilities are those originally contracted for by the Contractor or subsequently selected by the Contractor as replacements for the original sites and/or facilities. The City shall deliver landfill gas to the E/C Facility at no cost to the Contractor. The City shall provide to the Contractor the following utility services: water supply, wastewater treatment (with a surcharge for ammonia treatment), stormwater system access, electric power, and natural gas. With the exception of stormwater system access, the Contractor shall guarantee its annual consumption of such utility services (see Pricing Proposal Forms 1.5 and 1.6). The City shall bear the risk of increases in utility rates (i.e., it will allow tipping fee adjustments to accommodate increases in utility rates incurred by the Contractor, but not for increases in consumption of utility services, as agreed to in the Contract). FINAL 12/28/12 5-14 Should the Contractor plan to sell electric power to an electric utility other than the City, the City shall agree to provide wheeling services, at a per kWh rate to be determined during Contract negotiations. Standby charges will be required for backup electric service. Export The Contractor shall, at its own expense, provide for the uninterrupted provision of the Services through its operation of the its facility(ies) or use of third-party facilities, all of which must be approved by the City and meet the City’s primary processing requirements, unless otherwise approved by the City. For food scraps and yard trimmings, the City shall deliver these feedstocks to a Contractor transfer station, processing or other facility no more than 18 miles from City Hall. For biosolids, the City shall operate dewatering and storage facilities, and shall load the Contractor’s vehicles at the Site. 5.7.2 Maintenance Generally E/C Facility As set forth in further detail in Section 4 of this RFP, the Contractor, at its own expense, shall maintain the E/C Facility in good and acceptable condition in accordance with Applicable Law, Good Industry Practice, Good and Accepted Operating Practice, the Operations and Maintenance Manual, the Operations and Maintenance Standards set forth in the Contract, the Performance Guarantees, and any other applicable requirements of the Contract. The Contractor shall also be responsible for maintenance of the Site utilized by the Contractor, including all Site infrastructure, grass cutting, brush-cutting, and cleanup of litter on the Site, and for cleanup of any spills, leaks or contamination to the Site(s) resulting from construction and operation of the E/C Facility. Export The Contractor shall be responsible for cleanup of any spills, leaks or contamination to the Site resulting from its operations. 5.7.3 Safety and Security E/C Facility The Contractor shall maintain the safety of the E/C Facility at a level consistent with Applicable Law, all Required Insurance, the safety plan and Good Industry Practice. The Contractor shall provide for safe and orderly vehicular movement. The Contractor shall be responsible for maintaining the security of the E/C Facility and the Site, and shall take all responsible actions to prevent vandalism to the E/C Facility and the Site. Export The Contractor shall be responsible for safe and orderly vehicular movement on and off the RWQCP Site, and ensuring all such equipment meets the standards of FINAL 12/28/12 5-15 Applicable Law. The City shall not be liable for the safety or security of transportation equipment or management/disposal facilities used by the Contractor. 5.7.4 No Nuisance E/C Facility The Contractor shall be responsible for keeping the E/C Facility and the Site organized, clean, and litter-free at all times, to ensure that the operation of the E/C Facility does not create any impermissible odor, litter, noise, lighting, fugitive dust, vector or other adverse environmental effects constituting, with respect to each of the foregoing, a nuisance condition. Should any nuisance condition occur, the Contractor shall expeditiously remedy the condition, pay any regulatory fines and indemnify the City from any third-party nuisance claims. Export The provisions of this Section shall apply to the Contractor to any nuisance condition that results from Contractor activities on City property and/or required by Applicable Law. The City shall have no liability or obligations regarding the operation and maintenance or compliance with Applicable Law of the operation and maintenance of any Contractor equipment or facilities. 5.8 Performance 5.8.1 Performance Guarantees E/C Facility For the E/C Facility, the Contractor shall be responsible for meeting the Performance Guarantees as set forth in Section 4 of this RFP. In the event that the City elects to purchase the electric power generated by the E/C Facility, such purchase shall be provided for under a separate Power Purchase Agreement with the Contractor. Notwithstanding the potential City purchase of electric power, the Contractor shall, to the extent practicable, accept and use in its processes the gas generated by the City’s landfill. Export The Contractor shall be responsible for meeting the following performance obligations: 1) accepting, on schedules and at sites or facilities specified in the Contract, up to the Maximum Annual Delivery Thresholds of Acceptable Feedstock annually and as scheduled and applicable on a daily, weekly or monthly basis; 2) continuously providing any and all Contract-required handling, transportation, processing and/or disposal activities in compliance with Applicable Law, including all environmental laws and regulations; 3) initiating full Service on the Commercial Operation Date. 5.8.2 Compliance and Remedies The City may at any time it possesses reasonable cause to believe that the Contractor is not performing in accordance with the Performance Guarantees, FINAL 12/28/12 5-16 require the Contractor to provide reasonable assurances of compliance. The Contractor shall at all times comply with the Performance Guarantees, except to the extent compliance is prevented or excused by Uncontrollable Circumstances or Change in Law. If the Contractor fails to comply with any Performance Guarantee and is not prevented or otherwise excused from performance, the Contractor shall: (1) notify the City within 24 hours of the Contractor's having knowledge of any such non-compliance; (2) provide the City within 24 hours with copies of any notices sent to or received from any Governmental Body having regulatory jurisdiction with respect to any violations of Applicable Law; (3) pay any resulting direct damages, fines, judgments or awards, including liquidated damages, levies, assessments, impositions, penalties or other charges resulting therefrom; (4) at its own cost and expense, take any commercially practicable action (including, without limitation, making repairs, replacements and operating and management practices changes) necessary, in light of the nature, extent and repetitiveness of such noncompliance, in order to comply with such Performance Guarantee, to continue or resume performance hereunder and eliminate the cause of, and to reasonably assure that such non-compliance will not recur; (5) promptly prepare all public notifications required by Applicable Law, and submit such notifications to the required party and the City for publication; and (6) assist the City with all public relations matters necessary to adequately address any public concern caused by such non- compliance, including, but not limited to, preparation of press releases, attendance at press conferences, and participation in public information sessions and meetings. 5.8.3 Damage Provisions The Contract will provide for reasonable compensatory, consequential, and liquidated damage provisions between the parties consistent with comparable contracts for major works of public improvement under California law. 5.9 Default, Termination and Dispute Resolution 5.9.1 Remedies for Breach Except where damages for specific instances of breach or default are specified, the City may, in the event that the Contractor breaches any provision of the Contract, exercise any legal rights it has under the Contract, under the security instruments and under Applicable Law to recover damages or to secure specific performance. 5.9.2 Events of Default by the Contractor without Further Notice and Cure Opportunity The City shall have the right to terminate the Contract without additional notice and cure opportunity, and to the extent not excused by Uncontrollable Circumstances, upon the occurrence of the following events of default: • Abandonment of the E/C Facility ; FINAL 12/28/12 5-17 • Repeated failure by the Contractor to accept Acceptable Feedstock from the City; • Default of Guarantor; • Bankruptcy or insolvency of the Contractor or Guarantor; • Failure to maintain any financial security instrument; • Any intentional misrepresentation of information and facts relating to the Contractor's performance obligations and performance. 5.9.3 Events of Default by the Contractor with Notice and Cure Opportunity The City shall have the right to terminate the Contract with notice and cure opportunity, upon the occurrence of the following events of default: • Materially false or inaccurate representations or warranties made under the Contract or Guaranty. • Failure to pay amounts owed to the City within time specified in the Contract. • Failure to perform a material obligation under the Contract. 5.9.4 Purchase of E/C Facility in Event of Default E/C Facility Upon any termination for Contractor default, the City shall determine whether it desires to purchase the E/C Facility for the then remaining debt service on the E/C Facility on the date of default and such other costs as are set forth in the Contract. If the City determines not to purchase the E/C Facility, the Contractor shall, unless otherwise agreed to by the parties, complete removal of the E/C Facility from the Site within three-hundred-sixty-five (365) days from written notification by the City to remove the E/C Facility. Export These provisions do not apply to Export. 5.9.5 Events of Default by the City The following shall constitute an Event of Default by the City: Repeated and persistent failure or refusal by the City to perform its material obligations under the Contract, provided that: (i) the Contractor shall have given prior written notice of the breach of the Contract giving rise to the default, which is not excused by an Uncontrollable Circumstance or the fault of the Contractor, and (ii) such breach has not been corrected or the City has not taken reasonable steps to correct such breach within thirty (30) days of such notice. If the default results from the City failing to meet its Minimum Annual Delivery Requirements, then the default may be remedied by accounting for deliveries of other Acceptable Feedstock. In no event shall the City be in default for failure to meet Minimum Delivery Requirements in the FINAL 12/28/12 5-18 event that the Contractor is able to offset such amounts through other deliveries, including Spot Market Feedstock. 5.9.6 No Consequential or Punitive Damages No consequential or punitive damages shall be payable on any claim arising out of the performance or non-performance of obligations under the Contract by the City. 5.9.7 City Step-In Rights E/C Facility For the E/C Facility, in the event of default and termination of the Contractor, subject to approval of lenders and surety, the City shall have the right to step in and assume completion and/or operation of the E/C Facility (or engage a successor contractor and assume outstanding obligations to lenders), with full assignment of rights to use any proprietary or licensed technology involved (including any licensor technical support). The Contractor shall have “winding down” obligations during the transition to City completion and/or operation or completion and/or operation by a successor contractor. The City’s step-in rights shall enable a temporary City step-in to resolve specific difficulties or problems (with eventual return to Contractor activities). Export This provision shall not apply to Export. 5.10 General Provisions 5.10.1 Term E/C Facility Unless otherwise provided for, the Initial Term of the Contract shall commence on the Contract Date and shall remain in effect until the completion of twenty (20) years of operation. The City shall have the right to extend the Initial Term of the Contract for two additional five-year periods, under mutually agreeable terms and conditions. Provided a Base Case Proposal is submitted, a Proposer may propose as an option an Initial Term of 30 years of operation and Services provision, with renewal options for two five-year periods. Export This provision shall apply to Export. In addition, a Proposer may propose as an option a shorter operating term, but no less than five (5) years, provided a Base Case Proposal is submitted. 5.10.2 Comprehensive Inspections Upon reasonable written notice, the City or its designees, may periodically perform a comprehensive inspection of all facilities operated or controlled by the Contractor at FINAL 12/28/12 5-19 the Site, or in the case of Export, at facilities utilized by the Contractor for provision of Services, and relevant records of the Contractor, to determine compliance with the Contract and Applicable Law. The Contractor shall cooperate fully with such inspections, which shall not interfere unreasonably with the Contractor's performance of the Contract Services. 5.10.3 Contract Security – Guaranty E/C Facility The Guaranty shall provide that the Guarantor shall guarantee to the City in accordance with the Form of Guarantee (Appendix J, as appropriate for the E/C Facility or Export), that the Contractor will: (1) expeditiously make all payments required to be made or credited to the City under the Contract and (2) perform and observe all of the covenants and agreements it entered into under the Contract. The Guarantor may cap its financial liability, but during construction to no less than the full E/C Facility construction cost and, during operations to no less than the cost of one year of operation and maintenance of the E/C Facility. The Contractor and Guarantor shall immediately notify the City of any material decline in the Guarantor's credit standing. If a material decline in the Guarantor's credit standing occurs, the City may require the Guarantor to provide one of the following: (i) an increase in the value of the letter of credit to no less than a level equivalent to the minimum dollar value of the Guaranty as specified in this Section; or (ii) the substitution of the Guarantor by another guarantor acceptable to the City which shall enter into a guaranty agreement substantially the same in form and substance to the Guarantee. Export This provision shall apply to Export, with the exception that in the event that the Proposer specifies that the Guarantor will cap its liability, such cap shall be limited to a value of no less than one year of the cost for Services. 5.10.4 Contract Security – Construction Performance Bond E/C Facility As further security for the performance of the Contract, the Contractor shall provide a construction payment and performance bond in the amount of the estimated full cost of construction of the E/C Facility, securing the construction of the E/C Facility, in a form acceptable to the City. Such bond shall be in standard AlA form, and shall be issued by a surety company or companies rated "A" or better pursuant to current AM Best Company ratings and listed in the United States Treasury Department's Circular 570. Such surety shall be an admitted surety in California. Export This provision shall not apply to Export 5.10.5 Contract Security – Operations Bond E/C Facility FINAL 12/28/12 5-20 As further security for the performance of the Contract, the Contractor shall provide an operations payment and performance bond in the amount of the estimated full cost of annual operations and maintenance of the E/C Facility, securing the operations and maintenance of the E/C Facility, in a form acceptable to the City, and with the City named as a co-beneficiary, if agreed to by the surety. Such bond shall be in standard AlA form, and shall be issued by a surety company or companies rated "A" or better per current AM Best Company ratings and listed in the United States Treasury Department's Circular 570. Such surety shall be an admitted surety in California. Export This provision shall apply to Export in the amount equal to the annual value of the Contract. 5.10.6 Contract Security – E/C Facility Demolition, Removal and Site Restoration Financial Assurance E/C Facility For the E/C Facility, as further security for the performance of the Contract, the Contractor shall provide a bond or other surety device as set forth herein and acceptable to the City to cover the full cost of removal of the E/C Facility from the Site and restoration of the Site to a condition reasonably equivalent to its condition before construction of the E/C Facility, should it be required by the City at Contract expiration or earlier termination as set forth in the Contract. No later than the start of E/C Facility construction, the Contractor shall establish or obtain, and thereafter continuously maintain, financial assurance that is adequate to assure the City that the Contractor will be, at all times, financially capable of complying with the requirement to demolish and remove the E/C Facility, and restore the Site, should the City exercise its right to require such action. The type of financial assurance mechanism provided may be of the Contractor's choosing (e.g., a performance bond similar to a landfill closure bond or an alternative means subject to the City’s approval, such as a direct access letter of credit or a separate cash reserve account with direct access by the City), provided that the City shall be a party to the mechanism to the extent that the City shall have the right to obtain, without the consent of the Contractor, exclusive direction and control over the use and disbursement of the full financial value of the mechanism and, without limitation or interference, may apply such to E/C Facility demolition and removal and restoration of the Site in the event that the Contractor fails to, or is not able to, perform as required. As a part of its Proposal, the Contractor shall provide an estimate from a properly qualified expert of the cost at E/C Facility completion of E/C Facility demolition, removal and restoration of the Site. The Contractor shall revise the estimate every year and shall submit in written form a revised estimate from a properly qualified expert and, if necessary, adjust or reset (i.e., increase or decrease) the value of the mechanism to reflect such revised estimate. The mechanism shall similarly be adjusted or reset if any capital modifications made to the E/C Facility are of a nature FINAL 12/28/12 5-21 to materially affect the cost of demolition, removal and restoration of the Site. The Contractor may not terminate the mechanism or change the form or source of the mechanism without the prior consent of the City. In the event of the termination for Contractor default of the Contract once construction of the E/C Facility has begun, the ownership and control of the mechanism shall transfer in full to the City and the mechanism shall become the property of the City for its sole discretionary use. Export This provision shall not apply to Export. 5.10.7 Contract Security – Letter of Credit E/C Facility As further security for the performance of the Contract, for an E/C Facility the Contractor shall provide at the Financing Date an irrevocable, direct pay letter of credit to the benefit of the City in the amount of ten percent (10%) of the full cost of E/C Facility construction that shall be in force until Acceptance, at which time the value of the letter of credit shall be adjusted to be fifty percent (50%) of the full cost of annual operations (or, a new letter of credit of equivalent value is provided) during the operations period. Export This provision shall apply to Export in the amount of fifty percent (50%) of the annual Contract value. 5.10.8 Compost Production and Provision to City Residents E/C Facility Pursuant to Section 1.6 of this RFP, if the E/C Facility includes anaerobic digestion, and the Proposer elects to compost the digestate, such compost must meet Cal Recycle compost standards and, for biosolids, US EPA Exceptional Quality Standards for metals and Class A for pathogen reduction. Should anaerobic digestion technology be applied, the Contractor shall make available for use by City residents or the City 1000 tons per year of compost at no cost. Compost for City and City resident use shall meet the standards described above. If the E/C Facility does not compost digestate on the Site, digest composted off Site must meet the above requirements. If the E/C Facility intends to directly market and beneficially utilize digestate, the digestate shall be subject to CalRecycle standards for such use, including those currently under development by CalRecycle. Export The above requirement shall apply to Export, should either anaerobic digestion or composting technology be utilized for Acceptable Feedstock. FINAL 12/28/12 5-22 5.10.9 Local Goods and Services E/C Facility For the E/C Facility, the Contractor shall take all commercially reasonable steps to purchase materials, goods and services from in-City and regional vendors and businesses. Export This provision shall apply to Export to the extent practical. 5.10.10 Required Insurance E/C Facility The Contractor shall procure no later than start of construction for the E/C Facility and maintain at its expense until termination of the Contract insurance in the amounts shown below with insurance companies authorized to do business in the State of California. The Contractor shall name the City, and its employees, agents and contractors as additional insured parties on such insurance policies. Insurance coverage limits shall include: Design and Construction a. General Liability*: $5 million per occ/agg b. Workers Comp/Employers Liability: statutory limits c. Automobile Liability: $1 million d. Errors and Omissions (Professional Liability): $1 million per occ/ $2 million agg e. Environmental/Pollution Liability: $10 million per occ/agg *The City must be named as an additional insured. Operations a. General Liability*: $5 million per occ/agg b. Workers Comp/Employers Liability: statutory limits c. Automobile Liability: $1 million d. Errors and Omissions (Professional Liability): $1 million per occ/ $2 million agg e. Environmental/Pollution Liability: $10 million per occ/agg f. Property – All Risk Replacement Cost Coverage: full value of improvements and trade fixtures FINAL 12/28/12 5-23 * The City must be named as an additional insured. The City must be named as “loss payees” on the property policy All policies are required to be primary and non-contributory with any insurance or self-insurance programs carried or administered by the City. Any deductible or Self-Insured Retention (SIR) over $10,000 requires approval by the City. Export The Operations insurance requirements above shall apply to Export. 5.10.11 Indemnification by Contractor 5.10.11.1 E/C Facility Engineering and Design (a) To the fullest extent permitted by law, Contractor 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 Contractor, its officers, employees, agents or contractors under this Contract, regardless of whether or not it is caused in part by an Indemnified Party. (b) Notwithstanding the above, nothing in this Section shall be construed to require Contractor to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. (c) The acceptance of Contractor’s services and duties by City shall not operate as a waiver of the right of indemnification. The provisions of this Section shall survive the expiration or early termination of the Contract. 5.10.11.2 E/C Facility Construction and Operation To the fullest extent allowed by law, Contractor will defend, indemnify, and hold harmless City, its City Council, boards and commissions, officers, agents, employees, representatives and volunteers (hereinafter collectively referred to as "Indemnitees"), through legal counsel acceptable to City, from and against any and all Losses arising directly or indirectly from, or in any manner relating to any of, the following: (a) Performance or nonperformance of the Work by Contractor or its Subcontractors or Sub-subcontractors, of any tier; (b) Performance or nonperformance by Contractor or its Subcontractors or Sub-subcontractors of any tier, of any of the obligations under the Contract Documents; FINAL 12/28/12 5-24 (c) The construction and operations activities of Contractor or its Subcontractors or Sub-subcontractors, of any tier, either on the Site(s) or on other properties; (d) The payment or nonpayment by Contractor to any of its employees, Subcontractors or Sub-subcontractors of any tier, for Work performed on or off the Site(s) for the E/C Facility; and (e) Any personal injury, property damage or economic loss to third persons associated with the performance or nonperformance by Contractor or its Subcontractors or Sub-subcontractors of any tier, of the Work. However, nothing herein shall obligate Contractor to indemnify any Indemnitee for Losses resulting from the sole or active negligence or willful misconduct of the Indemnitee. Contractor shall pay City for any costs City incurs to enforce this provision. Nothing in the Contract Documents shall be construed to give rise to any implied right of indemnity in favor of Contractor against City or any other Indemnitee. The provisions of Section shall survive the termination of the Contract. 5.10.11.3 Export These same provisions shall apply for Export. 5.10.12 Assignment The Contract may not be assigned by either party without the express written consent of the other party. The Contract will include an assignment provision substantially in the form and content set forth in Appendix I. 5.10.13 Uncontrollable Circumstances Unless covered by insurance, in the event of an Uncontrollable Circumstance, the performance of the Contractor shall be excused (other than any Site Lease payment to the City) if the Contractor is unable to perform, provided such event was not caused by or contributed to by any act or omission of the Contractor and the effects of which could not have been prevented or avoided by due diligence if reasonable efforts had been expended by the Contractor. The Contractor shall provide prompt notice to the City of the commencement and cessation of an Uncontrollable Circumstance. At the conclusion of any such Uncontrollable Circumstance, the obligations of the Contractor shall resume in full force and effect. The Contractor shall use reasonable efforts to eliminate its cause and resume performance under the Contract as expeditiously as possible. The Contractor shall be liable for the payment of any fines and/or civil penalties levied against the Contractor or the City by any regulatory agency with jurisdictional activity should such agency find that the Contractor was negligent by its actions or lack of action in restoring service to required levels. The Contractor shall be responsible for all costs associated with FINAL 12/28/12 5-25 restoring operating service to meet performance criteria as specified by the Contract, recognizing that subsequent reimbursement and or a fee adjustment by the City may be provided for in the Contract. In any case, the Contractor shall be responsible for the first $25,000 in costs incurred annually in responding to one or more individual Uncontrollable Circumstances occurring in a Contract Year. The City may terminate the Contract if an Uncontrollable Circumstance results in the “total constructive loss” of the E/C Facility or Export facilities (i.e., damage or destruction is beyond repair), if the E/C Facility or Export facilities are inoperable for a period of six months or longer and/or the Uncontrollable Circumstance increases City costs above 10% in any year, or there is a cumulative increase of 35% over the Initial Term of the Contract or any renewals or extensions thereof. In the event of termination due to an Uncontrollable Circumstance, each party shall pay to the other any amounts due up to the time of termination, except that the City shall have no obligations regarding either any amount of outstanding Contractor debt, or any equity that may have been invested in the E/C Facility and remains unrecovered, at the time of Contract termination. If, based on notice of an Uncontrollable Circumstance, the unaffected party reasonably concludes that a Uncontrollable Circumstance or its impact on the affected party or the E/C Facility or Export facilities will continue (i) for a period of one hundred and twenty (120) or more consecutive calendar days, or (ii) for an aggregate period of one hundred and eighty (180) or more non-consecutive calendar days in the case of any claimed Uncontrollable Circumstance or series of claimed Uncontrollable Circumstance events, the unaffected party shall have the right to terminate the Contract effective upon notice to the affected party. 5.10.14 Ground Lease E/C Facility The Contractor and the City shall enter into a ground lease for the Site. Export This provision shall not apply to Export. 5.10.15 Governing Law The Contract shall be governed by and construed in accordance with the Laws of the State of California, without regard to the conflicts of laws or rules thereof. 5.10.16 Forum and Venue All legal actions and proceedings relating to the Contract or to any rights or any relationship between the parties arising therefrom shall be governed solely by the laws of California and shall solely and exclusively be initiated and maintained subject to the venue of the Santa Clara County Superior Court, State of California, or the United States District Court, Northern District. FINAL 12/28/12 5-26 5.10.17 Changes in Law Neither this Contract nor any provision hereof may be amended, waived, discharged or terminated except by an instrument in writing signed by the practices not already known or anticipated as of this Contract become effective, or changes in relevant permits materially alter the procedures applicable to the City or Contractor’s performance of their respective obligations hereunder, the parties will endeavor in good faith to negotiate appropriate and mutually agreeable amendments to the Contract or separate protocols to account for such changes, attempting in all events to restore or maintain for each party as nearly as possible, its respective rights and obligations and benefits under the Contract. Contractor shall be responsible for providing the City at least thirty (30) days written notice of any such Change in Law, including written documentation setting forth the basis for the Change in Law, the estimated costs of compliance, and a description of the actions that need to be taken to comply with the Change in Law. The Contractor shall be responsible for all costs associated with responding to the Change in Law to meet performance criteria as specified by the Contract, recognizing that subsequent reimbursement and or a fee adjustment by the City may be provided for in the Contract. In any case, the Contractor shall be responsible for the first $25,000 in costs incurred annually in responding to one or more Changes in Law in a Contract Year. The City may terminate the Contract if a Change in Law results if the E/C Facility or Export facilities being inoperable for six months or longer or increases City costs above 10% in any year, or results in a cumulative increase of 35% over the Term of the Contract. In the event of termination due to A Change-in-Law, each party shall pay to the other any amounts due up to the time of termination, except that the City shall have no obligations regarding either any amount of outstanding Contractor debt, or any equity that may have been invested in the E/C Facility and remains unrecovered, at the time of Contract termination. If, based on notice of a Change in Law, the unaffected party reasonably concludes that a Change in Law or its impact on the affected party will continue (i) for a period of one hundred and twenty (120) or more consecutive calendar days, or (ii) for an aggregate period of one hundred and eighty (180) or more non-consecutive calendar days in the case of any claimed Change in Law or series of claimed Change in Law events, the unaffected party shall have the right to terminate the Contract effective upon notice to the affected party. 5.10.18 Product Risks The Contractor shall bear all risks associated with product quantity, quality and marketability, without recourse to the City. The Contractor shall bear all comparable risks regarding feedstocks from non-City sources, if any, with no recourse to the City. All revenues earned from the sale of products shall be and remain the property of the Contractor. The Contractor shall bear all risks related to material declines in product prices. FINAL 12/28/12 5-27 5.10.19 Dispute Resolution There shall be three levels of dispute resolution: 1 discussions and negotiations between the principal representatives of the parties who are authorized to commit their respective parties; 2) if discussions and negotiations are not successful, the parties will proceed to non-binding mediation, facilitated by a certified contract mediator mutually acceptable to both parties; 3) if non-binding mediation is not successful in resolving the dispute, the dispute will be resolved via litigation. FINAL 12/28/12 6-1 6.0 PROCUREMENT PROCESS 6.1 Overview of Procurement Process This RFP is being issued to procure the Services of and will provide the basis for selecting the Preferred Proposer and negotiating a contract with said Preferred Proposer. The City will evaluate all responsive Proposals containing the information requested and prepared in the format required by this RFP. Upon evaluation of the Proposals submitted in response to this RFP and completion of the CEQA process, it is the intent of the City to enter into a Contract with the Proposer whose Proposal is responsive to this RFP, and is deemed most advantageous to the City. Although price is an important factor, it will not be the sole determining factor when identifying the Preferred Proposer. The City reserves the right to waive minor informalities in Proposals or to reject all Proposals or parts thereof, if deemed in the best interest of the City. The City reserves the right to solicit further Proposals if it deems such action to be in its own best interest. In the selection of a Preferred Proposer, the City reserves the right to waive portions of the RFP or to reject any and all Proposals or parts thereof for any reason deemed appropriate by the City in order to serve its best interests. As set forth in Proposal Form 1, by submitting a Proposal, a Proposer agrees, if selected as a Preferred Proposer, to negotiate in good faith and enter into the Contract based on this RFP and the Contract Principles as set forth in Section 5 herein. Neither the City, its staff, nor any of its consultants and advisors shall be liable in regard to the completeness and/or accuracy of any data and information presented during this procurement. The Proposer shall conduct all reviews, studies, inspections and fieldwork it believes necessary to verify information or gather new information necessary to prepare its Proposal. 6.2 General Conditions of Procurement 6.2.1 Mandatory Pre-Proposal Meeting Proposers are required to attend (or participate by call-in) a mandatory Pre-Proposal meeting which will be held at 9:00 AM on March 12, 2013. The Pre-Proposal meeting will be held at the Cubberley Community Center, Room H-1, 4000 Middlefield Road, Palo Alto, California, 94303. The meeting will be followed by a tour of the RWQCP, including the RWQCP Site, and the Landfill Site, including the area within the Landfill property designated for potential development of an E/C Facility. For those who cannot attend the meeting in person, a call-in number will be provided. Details regarding call-in logistics will be provided at least seven (7) days in advance of the meeting to those requesting participation by telephone. For planning purposes, Proposers are requested to notify the Contact Person by March 1, 2013, providing the names of the people who are planning to participate in the Pre-Proposal meeting and designating whether each person will participate in FINAL 12/28/12 6-2 person or by telephone. This notification is for planning purposes only, and can be changed by the Proposer as necessary. 6.2.2 Proposal Submission A Proposal submitted in response to this RFP must fully conform with and satisfy the submission requirements described in Section 8 of this RFP. 6.2.2.1 Proposal Deadline and Submittal Format All Proposals, including all attachments, must be received by the City, as described in Section 8, in a sealed package no later than 3:00 p.m. (local time) on July 31, 2013 (Proposal Submission Due Date). All Proposals submitted after the Proposal Submission Due Date will be marked "Received Late" and will be returned unopened to the Proposer along with an explanation of the reason for rejection. 6.2.2.2 Completeness Each of the instructions set forth in Sections 6, 7 and 8 of this RFP must be followed for a Proposal to be deemed responsive to this RFP. In all cases, the City reserves the right to determine, in their sole discretion, whether any aspect of the Proposal meets the submission requirements of this RFP and to waive minor informalities in Proposals. The City further reserves the right to reject any Proposal or part thereof which, in its sole judgment, does not comply with these Proposal requirements. 6.2.3 Contact Person Alternative Resources, Inc. (ARI) will serve as the designated Contact Person for this RFP. The primary and secondary Contact Persons at ARI will be: Primary Contact Person: Secondary Contact Person: Mr. James Osborn Alternative Resources, Inc. 1732 Main Street Concord, MA 01742 Tel: (978) 371-2054 Fax: (978) 371-7269 Email: josborn@alt-res.com Ms Susan Higgins Alternative Resources, Inc. 1732 Main Street Concord, MA 01742 Tel: (978) 371-2054 Fax: (978) 371-7269 Email: shiggins@alt-res.com Any explanation(s) desired by the Proposer(s) regarding the meaning or interpretation of information in this RFP must be requested from the Contact Person in writing, as is further described below. Only written responses from the Contact Person, in the form of an addendum to this RFP, shall be considered official responses concerning the meaning or interpretation of information in this RFP. Proposers shall not rely on any representations, FINAL 12/28/12 6-3 statements, or explanations unless same are conveyed in such a written response from the Contact Person. In order to maintain a fair and impartial process, the City will adopt procedures to assure that communications with Proposers during the Proposal preparation and evaluation periods involve all Proposers. The City will prepare summaries of all questions received and all answers given, without identifying the entity asking the question, and will send this information to all RFP recipients. 6.2.4 Additional Information/Questions Requests for additional information or clarifications may be discussed with the Contact Person, but must be made in writing (by mail, fax or email) no later than the date specified in this RFP schedule. Please address all such written requests to the designated Contact Person as specified in Section 6.2.3. A fax request must contain the RFP name, Proposer's name, address, phone number, facsimile number and number of pages transmitted. An email request must contain the RFP name, Proposer’s name, address, and telephone number. For administrative purposes, a copy of each written request submitted to the Contact Person shall also be emailed to: Mr. Matthew Krupp, AICP Zero Waste Administrator City of Palo Alto MSC, Building C 3201 E. Bayshore Road Palo Alto, California 94303 Tel: (650) 496-5958 Email: Matthew.Krupp@CityofPaloAlto.org The Contact Person will issue responses to inquiries and any other corrections or amendments deemed necessary by the City in written addenda prior to the Proposal Submission Due Date. Proposers should not rely on any representations, statements, or explanations other than those made in this RFP or in any written addenda to this RFP. Where there appears to be a conflict between this RFP and any addenda issued, the last addendum issued that addresses that specific issue will prevail. It is the Proposer's responsibility to assure receipt of all addenda. Prior to submitting its Proposal, the Proposer should verify with the designated Contact Person that all addenda have been received. Acknowledgement of receipt of addenda should be made with the Proposal in Proposal Form 1. FINAL 12/28/12 6-4 6.2.5 Access to RWQCP and Potential Landfill Site Proposers shall be provided access to the RWQCP and the Landfill Site by appointment only. Appointments will be made on a first-come, first-served basis, and will be limited to Monday through Thursday between the hours of 9:00 a.m. and 4:00 p.m. To arrange for access, Proposers shall contact: Mr. Matthew Krupp, AICP Zero Waste Administrator City of Palo Alto MSC, Building C 3201 E. Bayshore Road Palo Alto, California 94303 Tel: 650-496-5958 Email: Matthew.Krupp@CityofPaloAlto.org Requests for access to the RWQCP and Landfill Site shall be made in writing (email is acceptable) and shall include the date and time requested, an alternate date and time should the first request be unavailable, the purpose of the visit, the names and affiliations of Proposer representatives that will participate in the visit, and contact information (name, phone number, email address) of the person coordinating the visit on behalf of the Proposer. Written requests for access to the RWQCP and the Landfill Site shall provide at least three (3) business days advance notice for coordination and confirmation of an appointment. Copies of all written requests for access to the RWQCP and Landfill Site shall be emailed to the Contact Person identified in Section 6.2.3. 6.2.6 Modified Submissions A Proposer may submit a modified Proposal to replace all or any portion of a previously submitted Proposal up until the Proposal Submission Due Date. Only the latest version of the Proposal will be considered, and it must be received in complete, final form as of the date of the last version. 6.2.7 Late Submissions/Late Modifications Proposals and/or modifications received after the Proposal Submission Due Date and time will not be considered. 6.2.8 RFP Postponement/Cancellation The City may, at its sole and absolute discretion, reject any and all, or parts of any and all, Proposals; postpone or cancel at any time, this RFP process; or waive any minor irregularities in this RFP or in the responses received as a result of this RFP. FINAL 12/28/12 6-5 6.2.9 Withdrawal from Procurement Process A Proposer may withdraw its Proposal, prior to the Proposal Submission Due Date, if a written request to withdraw the Proposal is delivered to the Contact Person, by or on behalf of an authorized representative of the Proposer, or the request is delivered by certified mail. 6.2.10 Costs Incurred by Proposer All costs involved with the preparation and submission of responses to this RFP, or any work performed in connection therewith, clarifications requested, interviews, and negotiations that result therefrom shall be borne by the Proposer. No payment will be made for any responses received, or for any other effort required of or made by the Proposer, prior to commencement of work, as defined by the Contract. 6.2.11 Oral Presentation/Interview The City may require Proposers to make oral presentations in support of their Proposal or otherwise demonstrate the information contained therein. The City also reserves the right to visit facilities designed, constructed and/or operated by the Proposer and facilities utilizing the proposed technology. 6.2.12 Exceptions to this RFP Proposers may take exceptions to terms of this RFP, unless the RFP specifically states that exceptions may not be taken. All exceptions taken MUST BE specific, and the Proposers must indicate clearly what alternative is being offered and why it is being offered to allow the City a meaningful opportunity to evaluate Proposals. Any potential cost impacts (increases or decreases), or increased or decreased financial or other risks to the City, that are associated with or would result from the City’s acceptance of such exceptions must be enumerated by the Proposer. There are certain provisions of this RFP that are required, including:  that Proposers submit a Base Case Proposal and an Alternative Proposal for Food Scraps and Yard Trimmings only;  that only Alternative Proposals as specified in this RFP and Addenda will be considered;  that the Contractor provide all Services requested within the schedule and cost structure described in this RFP and Addenda;  that the Contractor meet all Performance Guarantees;  that the required Proposal Bond or alternative form of security as specified in this RFP be supplied with the Proposal;  that required insurance, bonding and other financial security means be provided by the Contractor regarding design, construction and operation of FINAL 12/28/12 6-6 the E/C Facility or providing Services with Export, whichever is proposed, with surety/insurance company letters of intent provided with the Proposal (see Proposal Forms 5 and 6, Appendix A);  that Proposers not take any exception(s) that will make financing dependent on a material increase in financial risk to the City;  that the required Guaranty Agreement be provided by the Contractor, the Contractor’s parent company or a third-party guarantor, with Proposers including the Guarantor Acknowledgement (Proposal Form 4) with the Proposal. If there is any question as to whether the City will consider an exception, it is suggested that Proposers provide a written list of proposed exceptions to the Contact Person prior to submitting their Proposals. The Contact Person will respond to all such questions or requests for clarification. Where exceptions are permitted, the City shall determine the acceptability of the proposed exceptions. The City, after completing evaluations, may accept or reject said exceptions. 6.2.13 Proprietary/Confidential Information Proposers are hereby notified that, except as more fully explained below, all information submitted as part of, or in support of Proposals, may be subject to the California Public Records Act, California Government Code section 6250 et seq. (PRA). Certain confidential and other proprietary and trade secret information may be exempt from disclosure under the PRA, and Proposers should, therefore, familiarize themselves with the applicable requirements and exemptions under the PRA. Any information submitted that a Proposer reasonably believes is exempt from disclosure under the PRA should be clearly identified as “confidential” or “proprietary and trade secret.” To the extent permitted by the PRA, the City will not voluntarily disclose such information so identified to persons other than the City’s employees, directors, members of an evaluation committee and any consultants or advisors involved in the evaluation of Proposals. In the event that any third party requests such information under the PRA, the Contact Person designated in this RFP or the City Attorney will promptly advise the Proposer of such request. The Proposer may thereafter, at its own expense, seek to legally enjoin the disclosure of such requested information; provided, however, the Proposer shall be obligated to indemnify the City from any and all liability, including attorneys’ fees, occasioned by the failure of the City in complying with the PRA based upon the Proposer’s assertion that the information requested is “confidential” or “proprietary and trade secret.” 6.2.14 Rules, Regulations, and Licensing Requirements The Proposer agrees to comply with Applicable Law. The Proposer shall obtain and maintain, entirely at its own expense, all licenses, certifications, permits, and inspections required for services to be provided in accordance with any forthcoming FINAL 12/28/12 6-7 Contract and shall comply with all laws, ordinances, and regulations applicable to the Services. Damages, penalties, and fines imposed on or incurred by the City, or the Proposer, for failure by the Proposer to obtain and keep current required licenses or permits, or to comply with laws, ordinances, or regulations, shall be borne by the Proposer. The Proposer agrees to abide and be governed by Federal, State, City and other local laws, regulations and/or ordinances, which may have a bearing on the work contemplated hereunder. 6.2.15 Disclosure A Proposer shall prepare a Disclosure Affidavit (Proposal Form 9) stating that except as disclosed, neither the Proposer nor its officers, principals, stockholders, and affiliates are debarred by the State of California which would prohibit them from entering into a Contracts with the City or are debarred by any state in the United States or its political subdivisions from entry into contracts with such government entities. Further, the Proposer must state that it will not use any contractors or subcontractors who are so debarred. Any Proposer who fails to prepare a Disclosure Affidavit shall not be considered by the City. Any person who willfully fails to disclose the required information or who knowingly discloses false information can be punished by civil or criminal penalties, or both, as provided for in the law, and will not be awarded a contract. 6.2.16 Personnel In submitting their Proposals, Proposers are representing that the personnel in their Proposal shall be available to perform the services described, barring illness, accident, or other unforeseeable events of a similar nature, in which case the Proposer must be able to provide a qualified replacement. 6.2.17 Responsible Wages and Benefits Per Section 5 of this RFP, Proposers are advised that the Contractor will be responsible for applying Federal, State, City and other local wage and labor laws to the extent required by Applicable Law. For Proposal purposes, the Proposer shall use prevailing wages in preparation of its Proposal. 6.2.18 Period of Acceptance and Proposal Bond or Alternative Security Requirements The Proposer must provide a Proposal Bond, in the amount of $100,000 payable to the City, upon submittal of its Proposal, or shall provide one of the following forms of alternative security: 1) a certified bank check payable to the City in the amount of $100,000; FINAL 12/28/12 6-8 2) a direct-pay, irrevocable letter of credit to the City with a bank chartered to do business in California; or 3) a certificate of deposit with the City as a beneficiary in the amount of $100,000 with a bank licensed to do business in California. A Proposer who withdraws its Proposal, except as allowed by this RFP, and a Preferred Proposer who fails to negotiate a Contract in good faith shall forfeit its Proposal Bond or alternative security to the City. If the Preferred Proposer fails to do so, the Surety will pay to the City, as liquidated damages, the full amount of the Proposal Bond, or for alternative securities, the City shall have rights to the applicable securities. The Proposal Bond or alternative security must be valid for a period from the Proposal Submission Due Date through February 2016, the date estimated for award of a Contract. If the Contract has not been executed prior to that time, the City may require the renewal of the Proposal Bond or retain the alternative security for an additional 180 days. No Proposal shall be considered unless accompanied by the required Proposal Bond or alternative security. The form of the Proposal Bond which must be submitted is included in Proposal Form 3 of this RFP. The surety which issues the Proposal Bond must be properly licensed to do business in the State of California. Alternative security measures should be from a bank chartered under the laws of the United States and authorized to conduct business in the State of California. Additional security beyond the Proposal Bond or alternative security requirements specified herein may be required from the Preferred Proposer if the Public Participants elect to negotiate a contract with the Preferred Proposer based on an Alternative Proposal. 6.2.19 City Rights and Options The City reserves, holds and may exercise, at its sole discretion, the following rights and conditions with regard to this RFP. By responding to this RFP, Proposers acknowledge and consent to the following conditions relative to the procurement process and the selection of the Preferred Proposer to negotiate the Contract:  This RFP does not obligate the City to procure or contract for any services.  The City reserves the right to change or alter the schedule for any events associated with this procurement upon notice to the Proposers, and a Proposer by submitting a Proposal agrees to be bound by any modification made by the City.  All costs incurred by a Proposer in connection with responding to this RFP, the evaluation and selection process undertaken in connection with FINAL 12/28/12 6-9 this procurement, and any negotiations entered into in connection with developing the Contract will be borne by the Proposer.  The City reserves the right to reject, for any reason, any and all Proposals and components thereof and to eliminate any and all Proposers responding to this RFP from further consideration for this procurement.  The City reserves the right to eliminate any Proposer who submits incomplete or inadequate responses or is not responsive to the requirements of this RFP.  The City reserves the right, at any time, to determine that any or all Proposers will not be selected for further consideration and to notify such Proposers of the City’s determination.  The City may require Proposers to send representatives to its offices for interviews and presentations.  The City reserves the right to discontinue negotiations with any Proposer.  The City reserves the right to negotiate with one or more Proposers, sequentially or concurrently.  The City may conduct clarification discussions, at any time following the submission of Proposals, with one or more Proposers.  The City reserves the right to receive questions concerning this RFP from Proposers and to provide such questions, and the City’s responses, if any, to all Proposers.  The City reserves the right, without prior notice, to supplement, amend or otherwise modify this RFP, or otherwise request additional information.  Any and all responses not received by the Proposal Submission Due Date, shall be rejected and returned unopened.  All Proposals become the property of the City and will not be returned.  All activities related to the project shall be subject to Applicable Law.  Neither the City,its staff, its representatives, nor any of its consultants or agents will be liable for the completeness or accuracy of any data or other information presented at any time and in any form in connection with this RFP. The Proposer shall be responsible for conducting any and all studies, investigations and tests necessary to prepare its Proposal.  Neither the City its staffs, its representatives, nor any of its consultants or agents will be liable for any claims or damages resulting from the solicitation, collection, review or evaluation of responses to this RFP.  The City (including its staff, representatives, consultants and agents) reserves the right to visit and examine any of the facilities referred to by the Proposer in its Proposal and to observe and investigate the operations of such facilities. FINAL 12/28/12 6-10  The City reserves the right to conduct investigations of the Proposers and their responses to this RFP and to request additional evidence to support the information included in any such response.  The City reserves the right to contact references and parties knowledgeable of the Proposer and its performance.  The City reserves the right to investigate the Disclosure Affidavit provided by the Proposer.  The City reserves all rights with respect to the evaluation, clarification, selection and negotiation process set forth in this RFP.  By submitting a Proposal, the Proposer waives its right to sue the City in the event the City does not select the Proposer. 6.3 Procurement Schedule A summary of the major activities associated with the procurement of the services described in this RFP is presented below. Please note that the dates indicated are subject to change. The City reserves the right to modify this schedule, as it may deem necessary, in its sole discretion. All changes to this RFP schedule will only be made by a formal, written addendum. ACTIVITY DATE  Release RFP On or about February 4, 2013  Mandatory Pre-Proposal information meeting 9:00 AM, March 12, 2013  Last date for submitting written questions July 12, 2013  Written responses from the City As questions received on questions received and Addenda to RFP  Proposal Submission Due Date 3:00 p.m., local time July 31, 2013  Review and evaluation of Proposals August 2013 to January 2014  Proposer Interviews (if required) September/October 2013  Selection of Preferred Proposer By February 2014  Anticipated CEQA Approval By February 2016  Complete Contract Negotiations By February 2016 FINAL 12/28/12 6-11 As described in Section 6.2.1, participation in the Pre-Proposal meeting is mandatory. Proposers are required to attend or participate by telephone call-in. The Pre-Proposal meeting will be held at 9AM at the Cubberley Community Center, Room H-1, 4000 Middlefield Road, Palo Alto, California 94303. The meeting will be followed by a tour of the RWQCP and Landfill Site including the area within the Landfill Site designated as the site for a E/C Facility. For those who cannot attend the meeting in person, a call-in number will be provided. Details regarding call-in logistics will be provided at least seven (7) days in advance of the meeting to those requesting participation by telephone. For planning purposes, Proposers are requested to notify the Contact Person by March 1, 2013, providing the names of the people who are planning to participate in the Pre-Proposal meeting and designating whether each person will participate in person or by telephone. This notification is for planning purposes only, and can be changed by the Proposer as necessary. 6.4 Conflicts of Interest and Lobbying Prohibition The proposed project is an important public project subject to significant political and public scrutiny. Transparency in the selection of the Contractor for this important public project is essential. In view of the potential conflicts of interest pursuant to California Government Code §1090 et seq., the inherent potential for lobbying and undue influence, and the need to preserve and protect confidential and trade secret information submitted in connection with the Proposals for the RFP, it is imperative that the RFP process be managed through a centrally managed communication process. Consequently, all communications from vendors and Proposers shall only be directed to the designated project point of contact or the City’s designated representatives. The designated representative for purposes of all communication from vendors and Proposers shall be the Contact Person identified in Section 6.2.3. Proposers shall complete Proposal Form 1 (Proposal Transmittal Letter) and Proposal Form 1A (Acknowledgement of Conflicts of Interest and Lobbying Prohibition) indicating the Proposer has reviewed and understands the requirements stated within this Section 6.4. FINAL 12/28/12 7-1 7.0 PROPOSAL EVALUATION Proposals received will be evaluated by the procedures and criteria described in this section for the purpose of determining which Proposal best meets the City’s objectives, is in the best interest of and is most advantageous to the City. Base Case Proposals and Alternative Proposals will be evaluated using the same evaluation process and criteria. 7.1 Evaluation Process Proposals received in response to this RFP will be evaluated based upon the Minimum Evaluation Criteria and Comparative Evaluation Criteria (see Sections 7.2 and 7.3). The City will establish an Evaluation Committee to review and evaluate the Proposals. The Evaluation Committee will be assisted by its consultants and advisors, as appropriate. The Evaluation Committee will prepare a report as to the ranking of Proposals and the selection of the Preferred Proposal. Proposals will be reviewed in two phases:  Phase 1 Review. Compliance with Minimum Evaluation Criteria (see Section 7.2, Table 7-1), to confirm that a Proposal is responsive and responsible. A Proposal that does not meet the Minimum Evaluation Criteria will be considered “unacceptable” and will not be considered for comparative review.  Phase 2 Review. For Proposals that meet the Minimum Evaluation Criteria, a comparative review generally following the Comparative Evaluation Criteria (see Section 7.3, Table 7-2) and the procedures described herein. Comparative ranking of non-cost elements of Proposals will utilize a point-based ranking system with weighting as identified below: Quality of Proposal: 5% (5 points) Proposer's Technical Resources and Experience: 15% (15 points) Financial Resources and Strength of Proposer: 15% (15 points) Record of Performance and Reliability of Technology: 25% (25 points) Technical Approach: 25% (25 points) Business Proposal (excluding price): 15%(15 points) TOTAL: 100% (100 points) The comparative review and evaluation will be based on all information submitted by a Proposer, inclusive of the Proposal, and, as applicable, responses to questions and requests for clarification, information provided in an interview, information provided by references and visits to reference facilities. The comparative review and evaluation will consider the qualifications of “Participating Firms”. “Participating Firms,” as used in this RFP, include as applicable for the E/C Facility or Export: (1) the Proposer; (2) the Guarantor; (3) a new company, if any, to be formed for the sole purpose of executing and performing the Contract; (4) the firm(s) that will actually operate, maintain and manage the E/C Facility; (5) the firm that will design the E/C Facility; (6) the firm that will construct the FINAL 12/28/12 7-2 E/C Facility; (7) the firm that will market the products; and (8) any other significant participant(s) in the transaction, including those who will permit and those who will finance the project. Proposal prices will be evaluated concurrently with non-cost elements of Proposals. A value ranking, including consideration of both non-cost comparative ranking and price will be conducted to determine which Proposal is most advantageous, overall, to the City. Prices included in the Proposals will be reviewed and ranked based on price and economic benefit to the City, using pricing information provided by the Proposers. A net present value analysis of annual projected cash flow, as proposed in the Pricing Proposal Forms will be completed, assuming an annual escalation factor of 2.50% and a discount factor of 4.00%. Consideration will be given to the cost of site preparation, including access, provision of utilities and preparing a pad for the E/C Facility and integration with the landfill cap. Estimates for such costs are provided in Appendix C for varying amounts of space required by the Proposer. These costs will be added by the City to the Proposal pricing when comparing individual Proposals for an E/C Facility and when comparing an E/C Facility to Export. In addition, the operating costs of dewatering biosolids will be added to Proposal pricing for those Proposals for an E/C Facility that receive dewatered biosolids and to Proposals for Export. For purposes of Proposal evaluation, the operating costs for dewatering biosolids to 28% solids will be $23 per ton of biosolids (2015$). The analysis will be conducted for the initial Term of the Contract, excluding Contract renewal options. Upon completion of the comparative review and ranking of non-cost Proposal elements and review and ranking of price, a value analysis will be completed to determine which Proposal is most advantageous to the City. The prices for management of Acceptable Feedstock are important factors in the evaluation and ranking of each Proposal; however, the City does not have to select the Proposal offering the lowest prices or highest economic benefit. 7.2 Minimum Evaluation Criteria In order for a Proposal to be considered responsive and responsible, it must meet the Minimum Evaluation Criteria identified in Table 7-1. FINAL 12/28/12 7-3 Table 7-1. Minimum Evaluation Criteria 1. Any considered E/C Facility or Export facility must be capable of processing the Maximum Annual Delivery Threshold of the City specified in Section 5.1.4, Table 5-1, for Food Scraps, Yard Trimmings and Biosolids, including FOG and scum. 2. Any considered E/C Facility or Export facility must be capable of operating for a minimum of 30 years. 3. Any considered E/C Facility or Export facility must be compatible with City solid waste management programs, including recycling and organics programs. 4. Any considered E/C Facility or Export facility must be capable of diverting at least 80% by weight of the Acceptable Feedstock received from Landfill disposal. 5. Any considered E/C Facility or Export facility must produce end products that have probable, identifiable or existing markets (including compost, electricity and/or fuel products). 6. Any considered E/C Facility or Export facility must conform to Applicable Law. 7. Any considered E/C Facility or Export facility must have been demonstrated at a minimum of one facility of similar size or with a minimum unit size of 20 tons per day (tpd), and shall have been in operation for at least six months (as of the Proposal Submission Due Date) processing Acceptable Feedstock. Demonstration facilities that have operated intermittently, but processed at least 1,000 tons of Acceptable Feedstock over a one-year period, will be considered to meet the requirement of this minimum criterion. 8. Any considered E/C Facility or Export facility must have a project team that has experience financing, designing, building and operating a solid waste management facility, either individually or as a team. 9. The Proposer must not be debarred from contracting in California 10. The Proposer has submitted a Base Case Proposal and a required Alternative Proposal for Food Scraps and Yard Trimmings only 11. If the Proposal is an Alternative Proposal, such Alternative Proposal was specified as allowable in the RFP or an Addendum to the RFP. 12. The Proposal is based on the Contractor providing all Services required within the schedule and cost structure described in the RFP and any Addenda to the RFP. 13. The Contractor will agree to meet all Performance Guarantees. FINAL 12/28/12 7-4 Table 7-1. Minimum Evaluation Criteria 14. For the E/C Facility, the Proposer must have bonding ability equal to the estimated cost of facility design and construction, and, during operation, equal to the estimated annual operating cost; must not be in bankruptcy; must provide evidence that it can acquire the letter of credit and facility demolition/site restoration financial assurance required; and, must provide a financing plan that reasonably demonstrates that it can offer private project financing. For Export, the Proposer must provide evidence of its ability to meet the financial security requirements as specified in Section 5 of this RFP. 15. Assurance that the required insurance, bonding and other financial security means, as required in Seciton 5 of this RFP for the E/C Facility or Export will be provided by the Contractor, with Proposal Forms 5 and 6 completed and included with the Proposal. 16. The Proposer has not taken any exception(s) that will make financing dependent on a material increase in financial risk to the City. 17. The required Guaranty Agreement will be provided by the Contractor, the Contractor’s parent company or a third-party guarantor, with the Guarantor Acknowledgement (Proposal Form 4 ) included with the Proposal. 18. The required Proposal Bond or alternative form of security as specified in the RFP has been provided. 7.3 Comparative Evaluation Criteria Comparative Evaluation Criteria are identified in Table 7-2, located at the end of this Section 7. Included in Table 7-2 is guiding language for application of the Comparative Evaluation Criteria. The Comparative Evaluation Criteria will be applied to evaluate, not only project approach, reliability of the technology, environmental issues (including an analysis of greenhouse gas emissions), the potential for beneficial use of organic materials and diversion from landfilling, and phase out of the existing biosolids incinerator, but also the experience, capability, qualifications and resources of the Proposer and each Participating Firm, based on the role proposed for the Participating Firm in the Proposal and the nature of the commitment that the Participating Firm is expected to make in ultimately performing the Services. The Proposal shall clearly distinguish among Participating Firms, where appropriate, in order to make clear whose qualifications are being offered and how the work will be divided. 7.4 Clarification of Proposals The Evaluation Committee may, at its sole discretion, prepare a written request for clarification to some or all Proposers for the purpose of clarifying any information submitted in a Proposal. The request may seek written clarification from the Proposer of any FINAL 12/28/12 7-5 ambiguities in its Proposal and additional information the Evaluation Committee believes is necessary to complete the evaluation process. The Evaluation Committee may, at its sole discretion, require some or all Proposers to attend individual interviews to clarify Proposals. The Evaluation Committee, or certain members thereof, may, at its sole discretion, visit reference facilities and speak with Proposers' references. The Evaluation Committee will complete its evaluation utilizing all of the information submitted by the Proposers, including the Proposals themselves, responses to questions and requests for clarification, information presented at interviews, and information gained in the process of conducting reference plant visits and calling Proposer's references. 7.5 Contract Negotiations Once the Preferred Proposer has been selected, the City will enter into contract negotiations with the Preferred Proposer, concurrent with completion of CEQA. Simultaneous negotiations with more than one Preferred Proposer may be conducted, although it is not currently the intent to do so. Contract award will be contingent on CEQA certification. The City, may, in its sole discretion and at any time, exclude a Proposer from further participation in the negotiation process if it determines that any proposed Contract with such Proposer would not be in the best interest of the City. Negotiations with another Proposer may be initiated, if negotiations with the Preferred Proposer are not satisfactory in the sole judgment of the City. The Preferred Proposer will receive written notification of any decision to discontinue negotiations with any such Proposer. A Proposer who fails to negotiate a Contract in good faith shall forfeit its Proposal Bond or alternative security. The Proposal Bond Requirements and alternative security options are set forth in Section 6. 7.6 Contract Authorization The Contract must be approved by the City Council. The City Council expressly reserves the right to reject any and or all Proposals. FINAL 12/28/12 7-6 Table 7-2 NON-COST PROPOSAL COMPARATIVE EVALUATION CRITERIA CRITERIA LOWEST VALUE MID VALUE HIGHEST VALUE 1. Quality of Proposal (5%, 5 points) Proposal includes limited detail, and/or contains inconsistencies that require significant clarification and request for submittal of supplemental information. Proposal is lacking definitive commitments such that Contract negotiations are anticipated to be laborious. Proposal is generally complete and responsive, with limited need to request clarification and/or supplemental information. Contract negotiations are anticipated to be less laborious. Proposal is complete and responsive, with information presented in a clear and organized manner and inclusive of supplemental, relevant information as applicable. Proposal includes definitive commitments and a level of detail sufficient for expeditious evaluation and contract negotiations. Overall, Proposal requires minimal clarification. 2. Proposer's Technical Resources and Experience (15%, 15 points) Note: Proposer means the entity submitting a Proposal in response to this RFP, including, as applicable, the Guarantor and all entities sponsoring the Proposal or preparing to act as a Participating Firm. 2.1 Experience of Proposer in Project Development, Permitting, Design and Construction of Municipal Solid Waste and Biosolids Facilities Proposer has successfully developed, permitted, designed and constructed, and put in operation a municipal solid waste management facility and biosolids facility, but not of similar technology as proposed. Proposer has successfully developed, permitted, designed and constructed, and put in operation one solid waste management facility of similar technology as proposed. Proposer has successfully developed, permitted, designed and constructed, and put into operation one facility of the same technology and similar size as proposed. 2.2 Experience of Proposer in Operation of Municipal Solid Waste and Biosolids Facilities Proposer has relevant experience in the successful operation and maintenance of a municipal solid waste management facility and biosolids facility, but not of similar technology. Proposer has relevant experience in the successful operation and maintenance of a solid waste management technology similar to that proposed. Proposer has successfully operated one facility of the same technology as proposed for at least one year, and at a similar facility size as proposed. FINAL 12/28/12 7-7 CRITERIA LOWEST VALUE MID VALUE HIGHEST VALUE 2.3 Experience of Proposer as Team with Municipal Solid Waste Facility Development, Design, Construction and Operation Proposer, Guarantor and Participating Firms have not worked together previously in development, permitting, design, construction and operation of a municipal solid waste management facility. Proposer, Guarantor and Participating Firms have worked together as a team in development, permitting, design, construction and operation of a solid waste management facility, but not of similar technology. Proposer, Guarantor and Participating Firms have worked together as a team in development, permitting, design, construction and operation of a similar solid waste management facility. 2.4 Depth and Location of Resources Proposer has requisite capabilities and resources to perform the requested services, but not primarily located in the U.S. Proposer has requisite capabilities and resources to perform the requested services, primarily located in the U.S. Proposer has requisite capabilities and resources to perform the requested services, primarily located in the U.S., and with significant resources in California. 2.5 Regulatory, Permitting Experience Proposer has permitted the construction and operation of a municipal solid waste management facility and biosolids facility, but not of a similar technology in the U.S. Proposer has permitted the construction and operation of a similar solid waste management facility in the U.S. Proposer has permitted the construction and operation of a solid waste management facility in the U.S., of the same technology as proposed, or of a similar technology in California. 2.6 Record of Regulatory Compliance Proposer has a satisfactory compliance record for a municipal solid waste management facility and biosolids, but not in the U.S. Proposer has a satisfactory compliance record for a similar solid waste management facility in the U.S. Proposer has a satisfactory compliance record in the U.S. for a solid waste management facility of the same technology as proposed, or of a similar technology in California. 2.7 Experience in Selling Products – Electricity, Fuels, Compost, Other Products Proposer does not have experience in the U.S. in marketing similar products as those proposed. Proposer has experience in the U.S. in marketing similar products as those proposed. Proposer has experience in the U.S., including California, in marketing similar products as those proposed. 2.8 Record of Contract Performance Proposer has a satisfactory contract performance record for a municipal solid waste management facility and biosolids facility, but not in the U.S. Proposer has a satisfactory contract performance record in the U.S. for a similar solid waste management facility. Proposer has a satisfactory contract performance record in the U.S. for a solid waste management facility of the same technology as that proposed, or of a similar technology in California. FINAL 12/28/12 7-8 CRITERIA LOWEST VALUE MID VALUE HIGHEST VALUE 2.9 Record of Labor Relations Proposer has a satisfactory record of labor relations for a municipal solid waste management facility and biosolids facility, but not in the U.S. Proposer has a satisfactory record of labor relations in the U.S. for a similar solid waste management facility. Proposer has a satisfactory record of labor relations in California for a similar solid waste management facility, or a record in the U.S. that exceeds industry standards for a similar solid waste management facility. 2.10 Safety Record Proposer has a satisfactory safety record for a municipal solid waste management facility and biosolids facility, but not in the U.S. Proposer has a satisfactory safety record in the U.S. for a similar solid waste management facility. Proposer has a satisfactory safety record in California for a similar solid waste management facility, or a record in the U.S. that exceeds industry standards for a similar solid waste management facility. 2.11 References and Reference Project Descriptions Proposer has identified and described at least one relevant municipal solid waste facility and biosolids facility that the Proposer has been involved with as a service provider, but not of similar technology to that proposed and/or with the Proposer having limited involvement with the project. Proposer has identified and described at least one relevant solid waste facility that the Proposer has been involved with as a service provider, of similar technology to that proposed. Proposer has identified and described two or more relevant solid waste facilities that the Proposer has been involved with as a service provider, with at least one being the same technology as that proposed. 3. Financial Resources and Strength of Proposer (15%, 15 points) Note: Proposer means the entity submitting a Proposal in response to this RFP, including, as applicable, the Guarantor and all entities sponsoring the Proposal or preparing to act as a Participating Firm. 3.1 Financial Strength of Proposer/ Guarantor Proposer did not have a positive net worth in any of the last three fiscal years, and/or other indicators suggest difficulty in completing project development, achieving full- scale facility operation and providing on-going financial benefits over time. Proposer had a positive net worth for the last fiscal year, with a current ratio of 1.2:1, or better, and/or supplied other evidence which, in the judgment of the City, demonstrates equivalent liquidity. Proposer had a positive net worth for the immediate past three fiscal years, with a current ratio of 1.6:1 or better, and/or supplied other evidence which, in the judgment of the City demonstrates equivalent liquidity. FINAL 12/28/12 7-9 CRITERIA LOWEST VALUE MID VALUE HIGHEST VALUE 3.2 Experience in Project Financing Proposer has not participated in a financing for a similar project as that proposed. Proposer has experience in the project financing of one similar project. Proposer has experience in the project financing of two or more similar projects. 3.3 Experience as Guarantor Proposer has limited experience as a guarantor. Proposer has experience as a guarantor on at least one comparable project that has operated for at least one year. Proposer has experience as a guarantor on more than one comparable project that has operated for at least two years. 3.4 Record of Business Integrity Not Applicable Strong record of business integrity and performance. Exemplary record of business integrity and performance. 4. Record of Performance and Reliability of Technology (25%, 25 points) Proposed technology has been demonstrated at minimum unit size for at least six months, but not at proposed project size. Proposed technology has been demonstrated at the proposed project size for at least six months, or proposed technology has been demonstrated at minimum unit size in the U.S. for at least six months. Proposed technology has been operating commercially for more than one year at either the minimum unit size or the proposed project size. 5. Technical Approach (25%, 25 points) 5.1 Project Management Plan Project Management Plan does not show strong understanding of key project development, permitting, financing, design, construction, operations, product marketing and public outreach issues, nor does it show a well thought out approach or commitment of key, experienced staff. Project Management Plan demonstrates strong understanding of key project development, permitting, financing, design, construction, operations, product marketing and public outreach issues, describes a well thought out approach and shows commitment of Proposer, including assignment of experienced staff to most key positions, to resolve issues and achieve project success. Project Management Plan demonstrates superior understanding of key project development, permitting, financing, design, construction, operations, product marketing and public outreach issues, describes superior approach and shows stronger commitment of Proposer, including assignment of experienced staff to all key positions, to resolve issues and achieve project success. 5.2 Permitting Plan Permitting Plan does not show strong understanding of key permitting requirements and issues, nor does it describe a well thought out approach to obtaining permit approvals. Permitting Plan demonstrates strong understanding of key permitting requirements and issues, and describes reasonable approach for obtaining permit approvals. Permitting Plan demonstrates superior understanding of permit requirements and issues, and demonstrates superior approach for obtaining permit approvals. FINAL 12/28/12 7-10 CRITERIA LOWEST VALUE MID VALUE HIGHEST VALUE 5.3 Environmental Mitigation Environmental mitigation measures do not meet those specified, but are judged to be satisfactory regarding environmental impact. Greenhouse gas emissions reductions are not significant. Environmental mitigation measures meet those required. Greenhouse gas emissions reductions are significant. Environmental mitigation measures exceed those required. Greenhouse gas emissions reductions are maximized. 5.4 Design, Construction, Start-up Plan Design, Construction, Start-up Plan does not show strong understanding of key design, construction and start-up elements and issues, nor does it describe a well thought out approach for addressing said elements and issues. Plan does not demonstrate strong consideration of integration with landfill capping and reducing visual/aesthetic impacts on surrounding land uses, including effective use of buffer areas. Design, Construction and Start-up Plan demonstrates strong understanding of key design, construction, and start-up elements and issues, and presents reasonable approach for addressing said elements and issues. Plan demonstrates strong consideration of integration with landfill capping and reducing visual/aesthetic impacts on surrounding land uses, including effective use of buffer areas. In addition to meeting the Mid Value Criterion, Design, Construction and Start-up Plan is based on Proposer’s demonstrated ability to achieve similar results on similar projects using proposed approach. Plan demonstrates exceptional consideration of integration with landfill capping and reducing visual/aesthetic impacts on surrounding land uses, including effective use of buffer areas. 5.5 Operation and Maintenance Plan Operation and Maintenance Plan does not demonstrate strong understanding of key operation and maintenance issues, nor does it describe a well thought out approach for addressing said issues. Operation and Maintenance Plan demonstrates strong understanding of issues and presents reasonable approach for addressing said issues. In addition to meeting theMid Value Criterion, Operation and Maintenance Plan is based on Proposer’s demonstrated ability to achieve similar results on similar projects using proposed approach. 5.6 Spot Market and/or Regional Acceptable Feedstock Acquisition Plan (as applicable) Proposal does not include a meaningful plan for acquisition of Spot Market and/or Regional Acceptable Feedstock, as applicable. Proposal includes a comprehensive plan for acquisition of Spot Market and/or Regional Acceptable Feedstock, as applicable. In addition to meeting the Mid Value Criterion, Proposer has demonstrated it has already taken steps towards acquiring Spot Market and/or Regional Feedstock, as applicable. 5.7 Product Marketing Plan Product Marketing Plan shows understanding of marketing issues and presents a plan for acquiring product markets, but Proposer has not been able to obtain Letters of Interest for purchase of key products. In addition to showing an understanding of marketing issues and presenting a plan for acquiring product markets, Proposer has provided Letters of Interest for purchase of key products. In addition to meeting the Advantageous Criterion, Proposer has provided Letters of Intent for purchase of key products. FINAL 12/28/12 7-11 CRITERIA LOWEST VALUE MID VALUE HIGHEST VALUE 5.8 Community Relations Plan Community Relations Plan does not demonstrate a strong understanding of the need to develop and maintain professional, responsible, and responsive working relationships. Community Relations Plan demonstrates a strong understanding of the need to develop and maintain professional, responsible, and responsive working relationships. Community Relations Plan demonstrates a superior understanding of the need to develop and maintain professional, responsible, and responsive working relationships. 5.9 Proposed Project Schedule Proposal includes a Project Schedule showing the E/C Facility or export option will be operational by dates specified in the RFP. Proposal includes a Project Schedule showing the E/C Facility or export option will be operational before dates specified in the RFP. Proposal includes a Project Schedule showing the E/C Facility or export option will be operational before dates specified in the RFP, with such schedule supported with clearly identified key milestones and critical path items. 6. Business Proposal (15%, 15 points) 6.1 Proposer's Organization Proposer has provided a description of project organization, but roles of all Participating Firms are not clearly/fully established. Proposer has provided a description of project organization, with roles of all Participating Firms clearly established. In addition to meeting the Mid Value Criterion, Proposer's project organization and corresponding description demonstrate a superior determination of defined roles and relationships. 6.2 Conformance to Business and Contractual Terms Proposer takes exception to key terms and conditions as set forth in the RFP but does not shift substantial risk to the City. Proposal conforms to key terms and conditions as set forth in the RFP. Exceptions to non-key terms and conditions are not significant and/or do not affect pricing or service quality or impose significant risk on the City. Proposal provides satisfactory discussion of reasons for exceptions. Proposal fully conforms to all terms and conditions in the RFP; no exceptions taken. 6.3 Strength of Financial Security Proposes project security measures including required bonds, letter of credit, insurance, and corporate guarantee, but caps liability to full construction cost and one year of O&M cost, or less. Proposes corporate guarantee(s), RFP-required bonds, insurance, and letter of credit and, while proposing a financial limit or cap on the guarantor’s(s’) liabilities, will be greater than amounts to cover full construction costs and greater than one year of O&M costs. Proposes corporate guarantee(s) in addition to RFP-required bonds, insurance and letter of credit. Does not place any financial limit or cap on the value of the guarantee or on the guarantor’s liability. FINAL 12/28/12 7-12 CRITERIA LOWEST VALUE MID VALUE HIGHEST VALUE 6.4 Financing Plan Financing Plan demonstrates minimal understanding of key financing issues or present a detailed approach for obtaining financing. Financing Plan demonstrates a strong understanding of key financing issues and presents a comprehensive and well thought out approach for obtaining financing, including principal terms and conditions of financing, equity and debt positions. In addition to meeting the Mid Value, Financing Plan includes appropriate levels of financing commitments from appropriately experienced investors and bankers/lenders. 6.5 Use of local labor, goods and services Meets requirements of RFP. Exceeds requirements of RFP. Significantly exceeds requirements of RFP. FINAL 12/28/12 8-13 8.0 PROPOSAL REQUIREMENTS 8.1 Proposal Submission A Proposal submitted in response to this RFP must conform with and satisfy the submission requirements described in this Section 8 of the RFP. 8.1.1 Proposal Deadline and Submission Address All Proposals, including all attachments, must be received by the City, as described in this Section, in a sealed package no later than 3:00 p.m. (local time) on July 31, 2013 (Proposal Submission Due Date). All Proposals submitted after the Proposal Submission Due Date will be marked "Received Late" and will be returned unopened to the Proposer along with an explanation of the reason for rejection. Each Proposal shall be comprised of a Non-Cost Proposal (Volumes I-IV, as described herein) and a Price Proposal (Volume V, as described herein). The Price Proposal shall be submitted with the Non-Cost Proposal, but shall be enclosed in a separate, sealed, opaque envelope or package and shall be clearly labeled “Price Proposal”. Cost information shall be presented only in the Price Proposal, and shall not be included in the other volumes that comprise the Non-Cost Proposal. The original Proposal (clearly marked as the original and containing the original signature forms and other original documents) and ten (10)copies of the Proposal shall be sent to the City at the following address: Mr. Matthew Krupp, AICP Zero Waste Administrator City of Palo Alto MSC, Building C 3201 E. Bayshore Road Palo Alto, California 94303 In addition, four (4) copies of the Proposal shall be sent to: Alternative Resources, Inc. 1732 Main Street Concord, MA 01742 Attention: James Osborn, Project Manager 8.1.2 Proposers Must Submit Base Case Proposal and Alternative Proposal for Food Scraps and Yard Trimmings Only Proposers are required to submit a Base Case Proposal as further described in this RFP and an Alternative Proposal for Food Scraps and Yard Trimmings only. FINAL 12/28/12 8-14 Proposers who do not provide a Base Case Proposal and an Alternative Proposal for Food Scraps and Yard Trimmings only, will not have an additional Alternative Proposal submittal considered. As noted above, an Alternative Proposal must be submitted for an E/C Facility or Export for Food Scraps and Yard Trimmings only. Additional Alternative Proposals that can be provided at the option of the Proposer include the following:  Proposals for accepting Food Scraps and Biosolids only, Food Scraps only, Yard Trimmings only, or Biosolids only;  a larger E/C Facility size (Regional Facility), to receive and process Acceptable Feedstock beyond that available from the City, if (i) related site and environmental issues can be successfully addressed to the City’s satisfaction, (ii) financial benefits such as host community payments to the City are considered sufficiently advantageous, (iii) such supplemental feedstock results in no or limited Bypassed Feedstock and no or limited Unacceptable Feedstock being landfilled; and (iv) Contractor is responsible for providing all Acceptable Feedstock not available from the City without recourse to the City if there is a shortfall in such feedstock;  for the E/C Facility or Export, a term for the operating period to be 30 years, plus two, five-year renewal options; and  for Export, a term of 5 years. The City will consider Alternative Proposals only for those cases identified in this RFP or by Addenda to this RFP. Prior to the deadline for submitting written questions, a Proposer may request approval from the City to submit Alternative Proposals based on technical or business options not listed in this RFP or Addenda. Such requests must be made in writing to the designated Contact Person. If the City agrees to consider additional Alternative Proposals, all Proposers will be informed by an Addendum to this RFP. Alternative Proposals shall be presented in separately bound volumes from and in the same format as the Base Case Proposal set forth below and in sufficient detail to allow the City to make a thorough evaluation of the merits of such Alternative Proposals. Alternative Proposals need only include those volumes that are impacted by the alternative aspects of the Proposal. Proposers may refer to the Base Case Proposal volumes for information that does not change. Alternative Proposals will be evaluated using the same procedures and evaluation criteria for the Base Case Proposal, as appropriate. FINAL 12/28/12 8-15 8.1.3 Number of Copies, Format and Electronic Version The Proposer shall submit ten (10) copies of the Proposal to the City and four (4) copies of the Proposal to ARI, as specified in Section 8.1.1. One (1) copy shall be bound and clearly marked as the original and contain the original signature forms and other original documents. The remaining copies can be reproductions. Proposers shall number each set of documents in sequential order on the upper right corner of each cover. The Proposer shall also submit a CD for Volumes I-IV of the Proposal with each copy of the Proposal, and a separate CD for Volume V, the Price Proposal with each copy of the Proposal. The CD for Volumes I-IV shall be submitted with the Executive Summary of each printed copy of the Proposal, providing an electronic version of such Proposal. The CD for the Price Proposal, Volume V, shall be submitted with each Price Proposal. The Proposal documents shall be typed or printed (1-1/2 spacing) on 8-1/2 inch by 11 inch paper, except for figures or maps at such a scale to require preparation at a larger size in order to be legible. Oversize maps and figures greater than 11 inches by 17 inches shall be organized in Appendices whenever possible. Each volume and all related information shall be bound as a single document (loose-leaf binders are acceptable), unless that is impractical, in which case an appendix document accompanying the volume may be submitted. The responses shall be clear, concise, factual, and complete with a minimum of extraneous material and the information provided shall reference, to the extent practicable, the section of the RFP being addressed. The Proposal volumes shall be indexed and sectioned and shall be prefaced with a table of contents. To the extent possible, cross-referencing to other Proposal volumes should be avoided. The Proposer should thoroughly review Section 6 and the evaluation criteria in Section 7 to ensure that the Proposal addresses each of the requirements and evaluation criteria. The delivery of the Proposal by the Proposal Submission Due Date (and time) is solely and strictly the responsibility of the Proposer. The City shall not, under any circumstances, be responsible for delays caused by the United States Postal Service or any private delivery service, or for delays caused by any other occurrence. 8.2 Transmittal Letter, Proposal Security 8.2.1 Proposal Transmittal Letter and Signature Requirements Together with each Proposal, the City must receive one fully executed Proposal Transmittal Letter (Proposal Form 1) from the Proposer acknowledging, among other things, that the Proposer has completely reviewed and understands and agrees to be bound by the requirements of this RFP. The Proposal Transmittal Letter commits FINAL 12/28/12 8-16 the Proposer, if selected, to carry out the provisions of the Proposal and shall further state that: (a) all information submitted in support of the Proposal is accurate and factual; (b) all representations made regarding the Proposer's willingness to meet the required Performance Guarantees, and the Proposer's concurrence with the proposed business arrangement and terms and conditions of contract, are true; (c) the Proposal is provided fairly, without collusion or fraud; and (d) the Proposer will, if chosen as the Contractor, perform the Scope of Services set forth in the Proposal. Finally, the Proposal Transmittal Letter must designate a contact person for all communications to and from the City with respect to this procurement. The Proposal Transmittal Letter must also designate the individuals who will be the Proposer's key technical and business negotiators and who shall be available to respond, in a timely fashion, to inquiries submitted by the City, its designated Contact Person, or its consultants. The Proposal Transmittal Letter must be signed by an officer of the Proposer who is empowered to sign such material and to commit the Proposer to the obligations contained in the Proposal (the "Designated Signatory"). The Certificate of Authorization (Proposal Form 2) attesting to such authorization must also be submitted with the Proposal. If the Proposer is a partnership, the Proposal shall be signed by one or more of the general partners. If the Proposer is a corporation, the authorized officer shall sign his or her name and indicate his or her title beneath the full corporate name. Anyone signing the Proposal as agent must file with it legal evidence of his or her authority to execute such Proposal. All forms which require the signature of the Proposer shall be signed by the Designated Signatory. 8.2.2 Proposal Bond or Alternative Security A Proposal Bond or Alternative Proposal security shall accompany the Proposal Transmittal Letter. The Proposer must provide a Proposal Bond, in the amount of $100,000 payable to the City, upon submittal of its Proposal, or shall provide one of the following forms of alternative security: 1) a certified bank check payable to the City in the amount of $100,000; 2) a direct-pay irrevocable letter of credit to the City with a bank chartered to do business in California; or 3) a certificate of deposit with the City as a beneficiary in the amount of $100,000 with a bank licensed to do business in California. A Proposer who withdraws its Proposal, except as allowed by this RFP, and a Preferred Proposer who fails to negotiate a Contract in good faith shall forfeit its Proposal Bond or alternative security to the City. If the Preferred Proposer fails to do so, the Surety will pay to the City, as liquidated damages, the full amount of the Proposal Bond, or for alternative securities, the City shall have rights to the applicable securities. FINAL 12/28/12 8-17 The Proposal Bond or alternative security must be valid for a period of at least 940 days from the Proposal Submission Due Date. If the Contract has not been executed prior to that time, the City may require the renewal of the Proposal Bond or retain the alternative security for an additional 180 days. No Proposal shall be considered unless accompanied by the required Proposal Bond or alternative security. The form of the Proposal Bond which must be submitted is included in Proposal Form 3 of this RFP. The surety which issues the Proposal Bond must be properly licensed to do business in the State of California. Alternative security measures should be from a bank chartered under the laws of the United States and authorized to conduct business in the State of California. Additional security beyond the Proposal Bond or alternative security requirements specified herein may be required from the Preferred Proposer if the City elects to negotiate a contract with the Preferred Proposer based on an Alternative Proposal. 8.3 General Format, Organization and Content of Proposal In general, each Proposal shall contain all information which may be of importance to the Evaluation Committee in selecting a Preferred Proposer. The information submitted shall include all information specifically requested by this RFP, and any information not specifically requested by this RFP, including favorable and/or unfavorable information, which may have a reasonable bearing on the Evaluation Committee's selection. Unless otherwise noted in this Section 8, Proposers shall provide all requested information for either the E/C Facility or Export, whichever is proposed. Proposals submitted in response to this RFP shall consist of the following volumes with the following section headings. Volume I: Executive Summary 1. Table of Contents 2. Introduction and Overview 3. Summary of Technical Qualifications Proposal 4. Summary of Technical Approach Proposal 5. Summary of Business Proposal 6. Summary of Key Information in Proposal Forms 7. Confirmation of Compliance with Minimum Evaluation Criteria 8. Proposal Forms 1, 1A, 2 and 3 9. CD providing an electronic copy of the Proposal, Volumes I-IV. (Note: A separate CD shall be provided for Volume V, the Price Proposal, with each copy of the Price Proposal.) Volume II: Technical Qualifications Proposal 1. Table of Contents FINAL 12/28/12 8-18 2. Experience of Proposer in Permitting, Financing, Design, Construction and Operation of Similar Solid Waste Management Facilities 3. Regulatory and Permitting Experience 4. Regulatory Compliance 5. Product Sales Experience 6. Record of Contract Performance 7. Labor Relations 8. Safety Record 9. References and Reference Project Descriptions 10. Additional Qualifications Information 11. Proposal Forms 4, 5, 6, 7, 8 and 9 Volume III: Technical Approach Proposal 1. Table of Contents 2. Project Management and Staffing Plan 3. Record of Performance and Reliability of Technology Proposed 4. Permitting Plan 5. Design, Construction and Start-up Plan 6. Operations and Maintenance Plan 7. Product Marketing Plan 8. Community Relations Plan 9. Proposed Project Schedule 10. Additional Technical Information 11. Proposal Form 10 Volume IV: Business Proposal 1. Table of Contents 2. Proposer's Organization 3. Business and Contractual Terms and Risk Assumed by Proposer 4. Limits on Guarantor Liability, if any 5. Financial Resources and Strength of Proposer/Guarantor 6. Experience as Guarantor 7. Financing Plan 8. Additional Business Information – Use of Local Labor, Goods and Services 9. Proposal Form 11 Volume V: Price Proposal 1. Pricing Proposal Forms, as required in Section 8.8 as well as related cost discussion and information, as applicable, including a CD for the Price Proposal. 8.4 Volume I: Executive Summary The Executive Summary must be presented as a separate document. It shall summarize, in clear and concise language, the information contained in the Technical Qualifications, FINAL 12/28/12 8-19 Technical Approach, and Business Proposals and shall include an Introduction and Overview section. Proposal Forms 1, 1A, 2 and 3 shall be included with the Executive Summary. In addition, the Executive Summary shall contain a CD providing an electronic copy of the Proposal, Volumes I-IV. The Executive Summary shall also summarize the information contained in the Proposal Forms. This shall include, for each Participating Firm, the form of business organization, ownership and firm description; proposed role in the transaction; and information as to criminal conviction, debarment from entering into contracts, regulatory violations, bankruptcies, lawsuits and contract disputes. The Executive Summary shall identify any Alternative Proposals and briefly summarize the benefits of such alternatives (excluding price). The Executive Summary shall include confirmation by the Proposer of its compliance with each of the Minimum Evaluation Criteria (see Section 7.2, Table 7-1). The Executive Summary should be drafted so that it may be easily understood by persons not having a technical background. The Executive Summary shall be no longer than necessary to convey a meaningful summary of the Proposal. It is suggested that the Executive Summary be limited to approximately 25 pages of text, plus any renderings, tables, drawings and graphs, and Proposal Forms. 8.5 Volume II: Technical Qualifications Proposal A Proposal submitted in response to this RFP must contain a Technical Qualifications Proposal that fully conforms with and satisfies the format and content requirements of this RFP, and sets forth the Proposer's qualifications, experience and capability to perform the Services. The Technical Qualifications Proposal shall contain only information pertaining to the Proposer's past performance unrelated to this project. (Note, the Proposer's technical approach to this project shall be presented in Volume III (Technical Approach Proposal), not Volume II). A Proposer is requested to include in its Technical Qualifications Proposal all information necessary to permit the City to make an informed evaluation under each appropriate criterion, stated in Section 7 and Tables 7-1 and 7-2. The Proposer shall provide the information necessary for the City to determine the experience, capabilities, and resources of the Proposer and all Participating Firms. Failure to provide any of the requested information that is available to the Proposer may be grounds for disqualification. If the requested information does not exist or cannot be provided, the Proposer shall state so with an explanation as to why such information has not been provided. By submission of its Proposal, the Proposer grants the City and its representatives the right to contact and visit any of the named projects, as well as any projects not named, for the purpose of evaluating the Proposer's performance or for validation of information provided FINAL 12/28/12 8-20 in the Proposer's Proposal. This includes contacting any person who is or was associated with each project. 8.5.1 Experience of Proposer in Permitting, Financing, Design, Construction and Operation of Similar Solid Waste Facilities and Services The Proposer shall provide a list of representative projects for which it has provided permitting, financing, design, construction and operational services in the past 10 years. The list shall include the name, location, address, size, and commencement date of each facility or service. The nature of the services provided and the name, address, phone number and email address of a contact person representing the service recipient shall be provided. Information to be provided in Section 8.5.8 further describes Reference Projects. The Proposer shall also highlight where its team of companies has worked together before on similar contracts, particularly if an E/C Facility is proposed for those with a design, construction and operating contract. Information should also be provided regarding the depth of resources available to support permitting, financing, design, construction and operating contracts, and product marketing. The Proposer shall describe the nature and depth of corporate professional resources and those available at other facilities which it operates which will be available to it and provide support as needed in performing the Contract. The description shall include a discussion of the accessibility of such resources, including whether the resources are under common and affiliated management or are available by contract, license or other means. The Proposer shall also describe the nature of the Proposer’s historical and planned long-term commitment to solid waste management. 8.5.2 Regulatory, Permitting Experience The Proposer shall describe its experience and effectiveness in dealing with governmental agencies regulating solid waste and biosolids facilities. This description should highlight experience working with environmental regulatory agencies, including the USEPA, USEPA Region 9, and local and State agencies. Experience in permitting similar solid waste and biosolids facilities should be highlighted, particularly that within California. 8.5.3 Regulatory Compliance The Proposer shall describe its experience and record of compliance with permits, licenses, approvals, consent decrees or agreements, and other regulatory actions applicable to solid waste and biosolids facilities. The Proposer shall identify any major incidents of noncompliance within the past three (3) years, and shall include a description of the speed and efficacy of corrective actions taken for such incidents, FINAL 12/28/12 8-21 the present status of compliance, and whether regulatory agency sanctions were imposed. This description should highlight such records with USEPA, including Region 9, and State and local agencies. For Proposal purposes, a major incident of noncompliance is defined as one that resulted in a court order, a regulatory consent order, fines totaling over $5,000 in any calendar year, or noncompliance instances that persisted for more than one year without full resolution. 8.5.4 Product Sales Experience The Proposer shall describe its experience in negotiating agreements for and selling marketable products, to include electricity, fuel, compost, aggregate and other products, as applicable. 8.5.5 Record of Contract Performance The Proposer shall identify any cases where the Proposer or any Participating Firm failed to complete any work which it was contracted to perform or had a contract terminated by a government agency due to the quality of its work. If this has occurred, indicate when, where, and the reasons for such termination. If the Proposer or any other Participating Firm has paid any liquidated damages, fines or penalties in connection with the design, construction or contract operation of any solid waste or biosolids facility or for a service contract with transportation and processing of solid waste or Biosolids, the Proposer shall indicate when, where, and under what circumstances such payment was made. 8.5.6 Labor Relations The Proposer shall describe its experience with and approach to labor relations. A clear mission statement with examples of human resource and training programs to reduce the potential for turnover and grievances shall be included. The Proposer shall identify the turnover rate and number of grievances per year, as well as the speed and efficacy of resolution of such grievances, for each Reference Project. 8.5.7 Safety Record The Proposer shall discuss its overall safety program including any violations cited by governmental safety agencies or OSHA, recognized safety awards, and the Proposer's lost-time accident record compared with industry standards, all within the past three (3) years. 8.5.8 References and Reference Project Descriptions The Proposer shall describe relevant solid waste and biosolids facilities and services, including facilities and services similar to that proposed, not exceeding ten in number that the Proposer has been involved with as a service provider (the Reference Projects"). A brief description of each Reference Project shall be provided, including a description of the Proposer's specific involvement with these FINAL 12/28/12 8-22 projects. For each of the Reference Projects identified, provide the following information, as applicable:  the name and location;  the owner and operator of the facility;  a description of the services performed;  relevance of the Reference Project to the requested Services;  description of facilities, equipment and processes, including design concept, size and capacity of the facilities, types of feedstock processed, recyclables recovered and products of conversion;  history of construction, including number of months for design, construction, facility acceptance;  history of operations, including start-up date and years of service as well as quantity and types of feedstock processed;  history of permitting and regulatory compliance;  safety record;  a record of contract performance;  a description of the record of labor relations;  if the Proposer is or was a single-source guarantor of the contract or if other arrangements were made to provide the project guarantees;  a description of experience with providing operation and maintenance services;  a description of experience with odor and noise control;  a description of experience with recovery and marketing of products;  a description of experience providing repair and replacement services, including major repair and replacement services;  a description of any services provided for design and construction of capital modifications;  the cost of designing and constructing the facility, the size of the financing and method of financing;  operating and maintenance costs;  contract value;  name of the division or legally affiliated company which is responsible for the project if different from the Proposer;  a summary of significant accomplishments (e.g., cost savings results, actions taken to ensure environmental compliance, neighborhood programs to FINAL 12/28/12 8-23 enhance facility acceptance and reduce odor, noise or other complaints, private financing);  the names, titles, telephone, fax numbers and e-mail addresses of key managerial-level contact persons of the community or agency served for each facility identified;  the names, titles, telephone, fax numbers and e-mail addresses of key managerial-level contact persons of the Proposer for each facility identified; and  the names, titles, telephone, fax numbers and e-mail addresses of key environmental regulatory agency staff contact persons for each facility identified. 8.5.9 Additional Qualifications Information Provide any additional qualifications information that would further help the City fully evaluate Proposer Qualifications. 8.5.10 Proposal Forms Complete and provide Proposal Forms 4, 5, 6, 7, 8 and 9. 8.6 Volume III: Technical Approach Proposal A Proposal submitted in response to this RFP must contain a Technical Approach Proposal that fully conforms with and satisfies the format and content requirements described herein, and sets forth the Proposer's technical approach to performing the Services for this project. Experience that the Participating Firms and key staff have with U.S. and overseas projects should be identified. Any experience in California should be noted. In evaluating the Technical Approach Proposal, the Evaluation Committee will apply the appropriate Evaluation Criteria set forth in Section 7 and Tables 7-1 and 7-2. Accordingly, the Proposer is requested to include in its Technical Approach Proposal all information necessary to permit the Evaluation Committee to make an informed evaluation under each appropriate evaluation criteria. The Proposer shall provide the information necessary for the Evaluation Committee to determine the technical merit of the Proposer's Technical Approach Proposal. 8.6.1 Project Management and Staffing Plan The Proposer shall provide a Project Management Plan which presents the Proposer’s project organization, identifying all Participating Firms and their role and responsibilities. Also, key management staff should be identified by name and full resumes provided. The Proposer should clearly state the amount of time that each key staff person will be assigned to the project. 8.6.2 Record of Performance and Reliability of Technology Proposed FINAL 12/28/12 8-24 The Proposer shall describe where the proposed technology for the E/C Facility has been used to process municipal solid waste, the size of the facility (tons per day), the number of units at the facility, the number of years the facility has been in commercial operation, its record of performance (including annual availability, ability to meet performance guarantees and environmental permit limits, its maintenance record and need for repairs or equipment replacement) and its acceptability in the host community, particularly in regard to traffic, noise and odor issues. If Export is proposed, the Proposer shall provide similar information, and the capacity available at such facility(ies) to take Acceptable Feedstock. 8.6.3 Permitting Plan The Proposer shall prepare a Permitting Plan identifying Federal, State and local permits and approvals needed to construct and operate the proposed E/C Facility , the permitting authority, the time required for permitting, and key issues that would need to be addressed and the approach that will be taken to do so. For an Export Proposal, the Proposer shall describe any permit modifications necessary to accept Acceptable Feedstock from Palo Alto and related information as described above. 8.6.4 Design, Construction and Start-Up Plan The Proposer shall submit a Proposed Design, Construction and Start-up Plan that will contain adequate information, data, specifications, equipment descriptions and design drawings to clearly and completely demonstrate that the E/C Facility will, at a minimum, achieve all of the required Performance Guarantees. This plan must describe, in detail, the proposed technical concept for the E/C Facility, including a description of how the Facility will work from receipt of Acceptable Feedstock to processing of such feedstock through the E/C Facility and production of products. In order to facilitate the review of the design portion of the E/C Facility, the Proposer is required to explain, in detail, its design concepts for the E/C Facility. Any additional information that will assist the City in understanding the Proposer’s approach should be included. In addition, Proposers shall outline their proposed approach to preparing detailed design plans and specifications, construction, start- up and acceptance testing. Measures that will be taken by the Contractor to assure quality control during design and construction should be discussed as should the Contractor’s plan to interact with the City and its engineers during the design and construction phases of the project. This includes a plan for and discussion of proposed project documentation and reports to be made available to the City. In addition to the above, the Proposer shall, at a minimum, provide: FINAL 12/28/12 8-25  a description of the E/C Facility design throughput capacity (Rated Capacity) and annual availability (including, Annual Waste Throughput Guarantee);  a description of the type of feedstocks to be received and processed;  a description of the size and number of process lines (including preprocessing, conversion and post-processing);  a description of recyclables to be recovered and marketable products to be produced;  an architect’s rendering of the proposed E/C Facility, showing integration with Byxbee Park and the RWQCP, and a description of the architectural treatment;  a plan view, showing site access from the roadway, scale house, scales, all buildings, outside equipment, road and traffic flow, electrical and fuel interconnections, utility connections, security fencing, stormwater management basins, site buffer areas, landscaping plans;  elevation drawings – four sides;  a cross section drawing of the site, showing site terracing, if any, and headwall requirements;  foundation plan ;  schematic process flow diagram and description of the process for receiving and storing feedstock, recovering recyclables, preprocessing of the feedstock for conversion, the conversion process and product production and storage;  equipment and general arrangement drawings;  P & ID drawings;  assumptions made on incoming feedstock, including HHV and BMP, as applicable;  mass, energy (to include use of landfill gas) and water balances;  a description of the storage requirements on-site for products;  a description of interconnection requirements for sale of electricity, natural gas or other products;  a description of the post-conversion process on-site to manufacture or clean products, including gas, fuels, compost, aggregate, etc.;  a description of noise mitigation, odor control and air pollution control measures;  a calculation of annual greenhouse gas emissions (CO2 equivalents for emissions of carbon dioxide, methane, nitrous oxide, others, if applicable, considering both biogenic and anthropogenic emissions for construction and operation of facilities) from stationary sources, mobile equipment and vehicles. Emissions estimates should be prepared consistent with methodologies established by the California Air Resources Board. ; FINAL 12/28/12 8-26  a description of means to minimize consumptive water use and process wastewater discharge;  a description of proposed utility connections for potable water, recycled water, sanitary sewer, stormwater, electricity, natural gas;  a description of the proposed stormwater management plan, describing collection, control, treatment, including catch basin design for sediment, oil and grease collection, and inclusion of any stormwater retention ponds and use of the City stormwater system;  a description of design features to qualify for LEED certification;  a description of proposed Performance Guarantees; and  a description of Acceptance Tests that will be performed to demonstrate compliance with Acceptable Standards. For those proposing Export, similar information is required to show the interface with City facilities , transportation to the processing facility(ies), and a description of the facility(ies) to which the Acceptable Feedstock will be taken and processed. Capacity available to take Acceptable Feedstock from the City should be identified, as well as a description of the other waste materials processed by that facility. 8.6.5 Operation and Maintenance Plan Each Proposer shall submit, as part of its Technical Approach Proposal, each of the following technical plans and narratives to demonstrate its ability to provide the Scope of Services. All of the items presented in Section 4, Scope of Services, and Appendix F shall be addressed for the E/C Facility or the Export service, as appropriate. 8.7.5.1 Operation and Maintenance Prepare an Operation and Maintenance Plan to outline the Proposer’s overall approach to performing the operation and maintenance responsibilities, as set forth in this RFP. The outline should include the management philosophy of the Proposer and any management procedures or policies that will be followed:  Explain the Proposer’s approach to and the instrumentation that will be used for inspecting Acceptable Feedstock at delivery and for diverting, separating and properly handling and disposing of Unacceptable Feedstock, as specifically required by State and local regulations.  Explain the Proposer’s technical approach to performing such operation and maintenance responsibilities, including training and inspection procedures, monitoring measures and preventative, corrective and predictive maintenance programs. FINAL 12/28/12 8-27  Describe the frequency of sampling and the laboratory procedures to be undertaken by the Proposer, including compliance sampling and analysis in order to ensure compliance with permits and the Performance Guarantees.  Describe, generally, the manner by which the Proposer will produce all reports required in the Contract.  Describe the procedures for monthly and annual reviews with the City of operations, reports, ongoing cost information, and key upcoming projects and operations, which may impact any Services.  Describe proposed Preventative, Predictive and Corrective Maintenance activities, including related record-keeping activities.  Discuss what quality assurance and quality control procedures will be used to monitor any aspect of the operation and maintenance of the E/C Facility or Export facilities. Describe the frequency of calibration of weigh scales and the procedures to be used in the event scales are found to be out of calibration.  Identify and describe the Proposer's planned computerized management system, including the maintenance system and the operating system and the tie in to continuous, real time monitoring of process and environmental performance data.  Provide estimates for the expected annual usage of electricity, chemicals, fuel, water and other consumables required for operation of the E/C Facility.  Describe how the Proposer will maintain the E/C Facility or Export facility in a neat, clean, and litter-free manner at all times, ensuring the operation of these assets does not create impermissible odor, litter, noise, fugitive dust, vector or other adverse environmental effects.  Describe how the Proposer will manage emergencies that may arise at the E/C Facility or Export facility and interact with the City and the applicable fire, police, and emergency management personnel during such emergency.  Briefly describe the Proposer's general safety program, including staff training, preventative maintenance, and safety procedures for OSHA compliance program requirements. Essential elements of such program shall include regularly scheduled safety training sessions for all personnel, standard operating procedures for chemical storage and handling, confined space entry and emergency response, lockout/tagout, right-to-know, and the care and use of proper safety equipment.  Provide a complete staffing plan, identifying job title, function and number of personnel. Describe how the Proposer will utilize the local and regional labor pool to satisfy labor needs as part of the staffing plan. FINAL 12/28/12 8-28 8.6.5.2 Repair and Replacement  Outline the Proposer's approach to performing repair and replacement, including major repair and replacement for the E/C Facility.  Discuss what quality assurance and quality control procedures will be used to monitor any and all aspects of the repair and replacement, including major repair and replacement, of the E/C Facility.  Provide a specific, itemized list of all major maintenance, repair and replacement activities that the Proposer plans to perform throughout the life of the Contract for the E/C Facility, and state the dollar amount budgeted and the implementation schedule for each item, activity and piece of equipment. Note that this list, as negotiated, will be incorporated into the Contract so as to assure that proper maintenance, repair and replacement is performed, and that the City is not left with depleted assets requiring a major overhaul when the Contract expires. 8.6.5.3 Residuals Management  Describe how Residuals will be handled (Residuals Management Plan).  Describe how Residuals will be tested. 8.6.5.4 Odor Control  Describe the odor control measures proposed by the Proposer (Odor Control Plan) to prevent odors beyond the Site boundary for the E/C Facility or for Export, for transportation and processing of Acceptable Feedstock. Describe guarantees for odor control (Odor Guarantee) to be made by the Contractor and the Guarantor and penalties to be paid for nonperformance (to be incorporated in the Environmental Performance Guarantee).  Identify other facilities operated by the Proposer using methods and technologies similar to the proposed Odor Guarantee, as well as their performance record and overall effectiveness in odor reduction. 8.6.5.5 Noise Control  Describe noise control measures proposed (Noise Control Plan) at the E/C Facility or for Export, for transportation and processing of Acceptable Feedstock, to comply with the City’s Comprehensive Plan and to prevent off-site noise complaints. Describe guarantees for noise control (Noise Guarantee) to be made by the Contractor and the Guarantor and penalties to be paid for nonperformance (to be incorporated in the Environmental Performance Guarantee).  Identify other facilities operated by the Proposer using similar methods and technologies similar to the proposed Noise Guarantee, as well as their performance record and overall effectiveness in noise reduction. FINAL 12/28/12 8-29 8.6.5.6 Light Impact Mitigation  Describe measures to be taken to reduce lighting impacts on the Site and surrounding land uses. 8.6.6 Product Marketing Plan For the E/C Facility or Export, if proposed, describe the recyclables to be recovered and the marketable products to be produced (including digestate, compost, electricity and fuels), quantities and characteristics of such recyclables and products, regulatory, environmental and market hurdles for sale of products, potential markets – the terms, current pricing and future viability and pricing, and contingency plans if products cannot be marketed. Provide copies of any letters of intent to purchase products. 8.6.7 Community Relations Plan For the E/C Facility or Export, describe how the Proposer will develop and maintain professional, responsible, and responsive working relationships with its neighbors, service recipients, the general public, the media, the City, municipal and other government representatives, public sector advisors or consultants, regulatory agencies, and other entities that have relationships with the City. Include an outline of the approach and specific tasks to be implemented to ensure that good relations are developed and maintained with such customers, departments, representatives, advisors, consultants, or agencies such as: (1) periodic communications and meetings with the City and/or their advisory board, regulatory agencies, and the public; (2) monthly progress reports to the City; (3) access to information and site tours for interested public groups; (4) other public outreach activities such as public education on recycling and proper solid waste management; (5) participation in community affairs, as a community member; and (6) how nuisance complaints, such as noise and odor, or other performance issues will be resolved with the community. Describe how the Proposer will assist the City with their public information programs, including, but not limited to, the activities specified in Appendix F. 8.6.8 Proposed Project Schedule The Proposer shall provide a detailed project schedule from receipt of Notice to Proceed to the Acceptance Date for commercial E/C Facility operation, or for Export, whichever is proposed. Key milestones should be shown on the schedule and critical path items should be identified. 8.6.9 Additional Technical Information Provide any additional technical information that will assist the City more fully understand the technical approach. FINAL 12/28/12 8-30 8.6.10 Proposal Forms Complete and provide Proposal Form 10 regarding Performance Guarantees. 8.7 Volume IV: Business Proposal A Proposal submitted in response to this RFP must contain a Business Proposal that fully conforms with and satisfies the format and content requirements described herein, and sets forth the Proposer's business terms and price to perform the Services. In evaluating the Business Proposal, the Evaluation Committee will apply the evaluation criteria set forth in Section 7, and Tables 7-1 and 7-2. Accordingly, Proposers are requested to include in their Business Proposal all information necessary to permit the Evaluation Committee to make an informed evaluation under each evaluation criterion. The Proposer shall provide the information necessary for the Evaluation Committee to determine the business merit of the Proposer's Business Proposal. 8.7.1 Proposer’s Organization Describe the Proposer’s project organization, identifying the Proposer, the Guarantor and all Participating Firms. Describe the roles of each party, to include project development, permitting, financing, design, construction, operations, product marketing and public outreach, as appropriate for the E/C Facility or Export. The Proposer shall: 1) describe whether it is a corporation, joint venture, L.L.C., special purpose corporation, or some other entity; 2) identify the Guarantor, if it is a party other than the Proposer; 3) describe, as appropriate, the relationship of the Proposer to its parent company and the Guarantor; and 4) identify if the parent company will also provide the Guarantee, or provide a Guarantee in addition to the Guarantee provided by the Proposer. 8.7.2 Conformance to Business and Contractual Terms and Risk Assumed by Proposer The Proposer shall indicate its willingness to enter into the Contract which will be developed based upon the terms and conditions described in Section 5. The Proposer shall indicate its willingness to accept the terms and conditions as stated, or indicate specific provisions to which it takes exception and offer alternative contract language which it would accept in the form of a markup. The Proposer shall provide a markup of or comment memorandum as to the Contract Principles (Section 5 of RFP). Proposers shall clearly indicate their acceptance or requested modification of each provision of the Contract Principles. To the extent that any Proposer wishes to add to or modify any such provision, the specific text of the proposed addition or requested modification shall either be clearly marked on the document or appended to the document in clearly typed riders. Proposers shall provide justification for taking exceptions. Any matter of significance to Proposers that is not addressed by the Contract Principles must be raised clearly FINAL 12/28/12 8-31 and separately in the Business Proposal. The Proposer’s response to the Contract Principles will be used in evaluating the advantageousness of the Proposal in the Business Proposal evaluation. In discussing exceptions taken to the Contract Principles, the Proposer shall describe the degree of risk which it is willing to assume and that which it believes the City is better able to assume and to what benefit. 8.7.3 Limits on Guarantor Liability, if Any The Proposer shall submit a Guarantor Acknowledgment signed by an officer of its parent or third party Guarantor, if applicable, in the form of Proposal Form 4. The Guarantor will be required to sign a Guaranty Agreement with the City in which it will guarantee all of the financial and performance obligations of the Contractor under the Contract. The Proposer shall clearly state the financial limit, if any, of its Guarantor’s liability under the Guarantee Agreement. The Proposer shall provide a markup of or comment memorandum as to the Form of Guarantee (see Appendix J). The Proposer’s response will be used in evaluating the advantageousness of the Proposal in the Business Proposal Evaluation. 8.7.4 Financial Resources and Strength of Proposer/Guarantor For the Proposer, the Guarantor, and Participating Firms, the Proposal shall include completed Proposal Form 11 – Financial Resources Data. In addition, the Proposer, the Guarantor, and all other key Participating Firms shall provide the financial information referenced below. If the Proposer, Guarantor or Participating Firm is not a public company, it can provide independently audited financial statements and may request that the information be treated confidentially by the City. If the Proposer, Guarantor or Participating Firm has been in existence less than the three years indicated on Proposal Form 11 – Financial Resources Data, the information shall be provided for the period of its existence: 1. Evidence of the ability of the Proposer(s) (e.g., letters from surety licensed to conduct business in California ) to provide the required payment and performance bond in an amount equal to the estimated cost for E/C Facility construction, an operations bond in the amount of the estimated annual cost of the E/C Facility operation and maintenance, financial assurance regarding E/C Facility removal and restoration of the Landfill Site and the RWQCP Site, and a letter of credit as specified in Section 5 of this RFP. Information shall be provided for Export service to satisfy the requirements above for operations bonding and for a letter of credit as specified in Section 5 of this RFP; FINAL 12/28/12 8-32 2. Annual audited financial statements (annual report) for the most recent fiscal year, prepared in accordance with Generally Accepted Accounting Practices, and all relevant notes; 3. Description of any material adverse changes in financial position within the past three years; any material changes in the mode of conducting business; and any bankruptcy proceedings, mergers, acquisitions, takeovers, joint ventures, and/or divestitures within the past three years. In addition, provide a clear and definitive statement of whether or not the Proposer, and any predecessor organization and/or Guarantor has declared bankruptcy within the last three years; 4. Description of the financial impact of any past or pending legal proceedings and judgments that could materially affect the Proposer’s financial position or ability to provide services to the City; 5. The prospectus or offering statement for any security or equity offering by the Proposer in the past three years; 6. A statement of contingent liabilities, financial commitments, contractual commitments, and/or guarantees to other projects that will affect the Proposers and the Guarantor’s ability to meet its obligations to the City; 7. An enumeration of all liabilities for similar projects (such as guaranties or letters of credit), and a list of equity contributions due to, but not yet disbursed to, any similar project; and 8. Any additional information which the Proposer believes is appropriate to fully reflect the financial strength of the Proposer. All information shall be provided in the English language, and all financial information shall be expressed in U.S. dollars, with identification of the currency exchange rate assumed. If the audited financial statements and other information of the Proposer, Guarantor and Participating Firms are not in the English language, then a certified English translation shall be provided (including numeric conversion of amounts into U.S. dollars). Under a joint venture or other partnership arrangement, all of the above information shall be provided for all parties to the arrangement. The Proposer shall provide binding letters from each party in the joint venture or other partnership arrangement stating its role and its willingness to meet the requirements of this RFP and any contract that will be executed. The partners shall be jointly and severally liable to meet the Proposer's obligations. 8.7.5 Experience as Guarantor The Proposer and Guarantor shall describe its experience in providing guarantees for projects, including any such role for each of the Reference Projects. Describe if there was a limit of the Guarantor’s liability, and if so, what it was. Describe if the Guarantor has been asked to step up to perform for any such contract. FINAL 12/28/12 8-33 8.7.6 Financing Plan For an E/C Facility implemented under a design, build, own, operate approach, the Proposer shall prepare a Financing Plan. The Financing Plan must include the following: 1. The Proposer must provide a general statement of approach to the E/C Facility financing. This general statement must provide an overview and explanation of the intent and strategy of the Financing Plan. 2. The City recognizes that the Financing Plan may include both tax-exempt and taxable debt. The Proposer must clearly describe its assumptions in that regard, or provide an explanation as to type of bonding the Proposer has assumed. 3. The Proposer must explicitly state what financing representations, if any, it is making to the City relating to the Proposer’s ability to acquire cap allocation for the tax-exempt series of bonds, if proposed. 4. The Proposer must clearly define the amount of equity investment it intends to make and/or arrange for. 5. The Proposer is encouraged to consider and should discuss the potential for State or Federal grants or other financial assistance, and the potential impact on the financing. However, for purposes of pricing Services to the City, the Proposer should not assume the availability of any such assistance. 6. The Financing Plan must demonstrate that it includes the funding of all cash needs associated with the implementation of the E/C Facility. Such needs may include, but are not limited to, the following:  Contractor Project Development Costs  Permitting, design, construction and acceptance testing costs;  Debt Service Reserve Fund, if any;  An Operating Reserve Fund, if any;  Issuance costs;  Credit enhancement costs, if any, and  Capitalized interest, if any. The Proposer may identify and include other funding needs. 7. To the extent practicable, the Proposer must provide a detailed description as to the structure of the bonds to be issued/debt to be incurred (e.g., term, capitalized interest, reserve funds, amortization approach, use of credit enhancement, interest rates, etc.). 8. The Proposer must provide a pro forma for the operating term of the E/C Facility, showing the payment of debt service and the reimbursement of the equity contribution, and the projected tipping fees. FINAL 12/28/12 8-34 9. The Proposer shall include a letter of intent from its financial advisor or lender stating its willingness to arrange or provide financing in accordance with the Financing Plan, including a discussion of the material requirements, terms and conditions (including the commitments and obligations that would be expected of the City) associated with the ability to finance the E/C Facility, as proposed. 8.7.7 Additional Business Information – Use of Local Labor, Goods and Services The Proposer is to describe the use of local labor, goods and services during E/C Facility construction and operation, including efforts to be made to meet labor needs from local and regional labor pools. For both the E/C Facility and Export, efforts to utilize local and regional labor, goods and services during operations should be described. In addition, for both the E/C Facility or Export, describe use of materials, goods, equipment, products and services originating in or manufactured in the United States. 8.7.8 Proposal Forms – General Proposal Form 11, Financial Resources Data, is to be completed and provided. 8.8 Volume V: Pricing Proposal Forms Appendix B of this RFP provides Pricing Proposal Forms (PPFs), as follows: Part 1 – E/C Facility Pricing Proposal Forms Part 2 – Export Pricing Proposal Forms Part 3 – Other Pricing Proposal Forms In completing the Pricing Proposal Forms, Proposers should note: 1. Proposers for the E/C Facility must complete all Pricing Proposal Forms included in Parts 1 and 3 for the Base Case Proposal (all feedstocks) and required Alternative Proposal (food scraps and yard trimmings only) . 2. For Export, Proposers must complete the Pricing Proposal Forms in Part 2 and Part 3 (Pricing Proposal Form 3.1 only), for the Base Case Proposal (all feedstocks) and the required Alternative Proposal (food scraps and yard trimmings only). 3. With respect to proposed per ton tipping fees, for Proposal evaluation purposes the City will escalate the tipping fees by the assumed annual escalation rate of 2.50% (see RFP Section 7) from the date of Proposal submission to the Commercial Operation Date (to establish a “Year 1” price), then will escalate the FINAL 12/28/12 8-35 tipping fees each year of the proposed operating period by 2.5% in order to conduct a net present value analysis (see RFP Section 7). 4. Pricing must take into account payments to the City for the Site Lease Payments commencing with project financing.\ 5. The City expects that the Proposer will include in its Business Proposal (Volume IV) any comments, exceptions or requested modifications regarding the Contract Principles, and shall assume that the Proposer’s pricing in Volume V is based on the Contract Principles, as the Proposer may request to modify. The Proposer shall enumerate the cost impacts of any Contract Principles to which it takes exception and/or offers amendments, alternatives or modifications. Each Pricing Proposal Form must be signed by the party so designated on the form. 6. As stated in Section 7.1 of this RFP, the costs to be incurred by the City in the preparation of the Site and operation of biosolids dewatering equipment, if required by the Proposer (as described in Section 7.1, and enumerated in Appendix C, Table 1), will be calculated and included by the City in the comparative analysis of price Proposals. Proposers are not to include such costs in their Pricing Proposal Forms. 7. In addition to the Proposals provided for on the Pricing Proposal Forms as described above, Proposers may also offer additional alternative E/C Facility and/or Export Proposals for food scraps and Biosolids only, Food Scraps only, Yard Trimmings only or Biosolids only. If such Proposals are offered, Proposers should complete the appropriate Pricing Proposal Forms (for example, PPF 1.1 First Year $/Ton), clearly noting on the form that the prices are for Food Scraps and Biosolids only, Food Scraps only, Yard Trimmings only or Biosolids only, as appropriate. Proposers are reminded that Volume V: Price and Pricing Proposal Forms shall be submitted with the other Proposal Volumes, but in a separate, sealed, opaque envelope or package. Price and related cost information must not be included in Volumes I, II, III or IV. FINAL 12/28/12 9-1 9.0 APPENDICES Appendix A: Proposal Forms Appendix B: Pricing Proposal Forms Appendix C: Landfill Site Information, Capping Plans, Preliminary Site Preparation and Anticipated Cost, Landfill Gas Projections Appendix D: RWQCP Site Information, RWQCP Energy Needs Appendix E: Quantity and Characteristics of City Food Scraps, Yard Trimmings and Biosolids Appendix F: Appendix F-1: E/C Facility and Export Requirements Appendix F-2: Utility Information Appendix G: Preliminary CEQA Checklist Appendix H: Reserved for Future Use Appendix I: Assignment Provisions Appendix J: Appendix J-1: Form of Guaranty Agreement (Example for E/C Facility) Appendix J-2: Form of Guaranty Agreement (Example for Export) FINAL 12/28/12 APPENDIX A PROPOSAL FORMS Proposal Form 1: Proposal Transmittal Letter Proposal Form 1A: Acknowledgement of Conflicts of Interest and Lobbying Prohibition Proposal Form 2: Certificate of Authorization Proposal Form 3: Form of Proposal Bond Proposal Form 4: Guarantor Acknowledgement Proposal Form 5: Surety Letter of Intent Proposal Form 6: Insurance Company Letter of Intent Proposal Form 7: Participating Firms Proposal Form 8: Participating Firm Information Proposal Form 9: Disclosure Proposal Form 10: Facility Performance Guarantees Proposal Form 11: Financial Resources Data Attachment E FINAL 12/28/12 Page 1 of 4 PROPOSAL FORM 1 PROPOSAL TRANSMITTAL LETTER (To be typed on Proposer's Letterhead) City of Palo Alto MSC, Building C 3201 East Bayshore Road Palo Alto, CA 94303 Attn: Mr. Matthew Krupp Dear Mr. Krupp: (the "Proposer") hereby submits its proposal (the "Proposal") in response to the Request Proposals to Establish an Energy/Compost Facility or Export for Food Scraps, Yard Trimmings and Biosolids, issued by the City of Palo Alto, California, February 2013. As a duly authorized representative of the Proposer, I hereby certify, represent and warrant as follows in connection with the Proposal: 1. The Proposer acknowledges receipt of the RFP and the following addenda: No. Date 2. The submittal of the Proposal has been duly authorized by, and in all respects is binding upon, the Proposer. Proposal Form 2 is a Certificate of Authorization which evidences my authority to submit the Proposal and bind the Proposer. 3. Proposal Form 3 is a proposal bond submitted by as Surety for the Proposer assuring that the Proposer will conduct good faith negotiations with the City of Palo Alto, California based on this RFP and the Proposal. 4. The Proposer's obligations under this Contract will be guaranteed absolutely and unconditionally by , as evidenced by the Guarantor's acknowledgment certificate submitted as Proposal Form 4. 5. The Performance Bonds as required by this RFP as security for performance of the Contract will be provided by , a surety licensed to conduct business in California, as evidenced by such surety’s letter of intent submitted as Proposal Form 5. PROPOSAL FORM 1 (CONT.) FINAL 12/28/12 Page 2 of 4 6. The insurance coverage required by this RFP will be provided or brokered by ___________, as evidenced by such firm's letter of intent submitted as Proposal Form 6. 7. All firms that will be significant participants in providing services under the Proposal (the "Participating Firms") are identified in Proposal Form 7. 8. The Proposer, the Guarantor and each other Participating Firm have submitted certain information required by this RFP by completing Proposal Form 8. To the best knowledge of the Proposer, all such information is correct and complete. 9. All information and statements contained in the Proposal are current, correct and complete, and are made with full knowledge that the City will rely on such information and statements in selecting the Preferred Proposer and executing the Contract. 10. The Proposal has been prepared and is submitted without collusion, fraud or any other action taken in restraint of free and open completion for the services contemplated by this RFP. 11. The Proposer has reviewed the requirements of this RFP regarding conflicts of interest and lobbying prohibition, as evidenced by submittal of Proposal Form 1A. 12. Neither the Proposer, the Guarantor nor any Participating Firm is currently suspended or debarred from doing business with any governmental entity. 13. The Proposer has reviewed all of the engagements and pending engagements of the Proposer and the Guarantor, and represents that no potential exists for any conflict of interest or unfair advantage. 14. No person or selling agency has been employed or retained to solicit the award of the Contract under an arrangement for a commission, percentage, brokerage or contingency fee or on any other success fee basis, except bona fide employees of the Proposer or the Guarantor. 15. The individuals who will be the Proposer's key technical and business negotiators are set forth below: Name Title Address Phone _____________ _____________ ______________________ _____________ _____________ _____________ ______________________ _____________ _____________ _____________ ______________________ _____________ _____________ _____________ ______________________ _____________ PROPOSAL FORM 1 (CONT.) FINAL 12/28/12 Page 3 of 4 16. The contact person who will serve as the interface between the City and the Proposer is: NAME: TITLE: ADDRESS: PHONE: FAX: E-MAIL: 17. The Proposer has carefully examined all documents comprising this RFP and the addenda thereto and, being familiar with the work and the conditions affecting the work contemplated by this RFP and such addenda, offers to furnish all plant, labor, materials, supplies, equipment, facilities and services which are necessary, proper or incidental to carry out such work as required by and in strict accordance with this RFP and the Proposal, all for the prices and terms set forth in the Pricing Proposal Forms. 18. The Proposer has reviewed and understands the requirements of this RFP (including the Performance Guarantees and the Contract Principles) and all addenda thereto and, if selected as the Preferred Proposer, agrees to negotiate in good faith to enter into a Contract which reflects all substantive terms and conditions of this RFP and the Proposal. Name of Proposer Name of Designated Signatory Signature Title Date PROPOSAL FORM 1 (CONT.) FINAL 12/28/12 Page 4 of 4 (Notary Public) State of County of On this ___________ day of _______________, 2013, before me appeared _______________, personally known to me to be the person described in and who executed this Proposal, including the Proposal Transmittal Letter, and acknowledged that (she/he) signed the same freely and voluntarily for the uses and purposes therein described. In witness thereof, I have hereunto set my hand and affixed my official seal the day and year last written above. ____________________________________________ Notary Public in and for the State of ________________ (seal) ____________________________________________ (Name printed) Residing at _____________________________________ My commission expires ______________________ FINAL 12/28/12 Page 1 of 1 PROPOSAL FORM 1A ACKNOWLEDGEMENT OF CONFLICTS OF INTEREST AND LOBBYING PROHIBITION As a duly authorized representative of the Proposer, I hereby certify, represent and warrant review of and compliance with the following requirements regarding conflicts of interest and lobbying prohibition: The proposed project is an important public project subject to significant political and public scrutiny. Transparency in the selection of the Contractor for this important public project is essential. In view of the potential conflicts of interest pursuant to California Government Code §1090 et seq., the inherent potential for lobbying and undue influence, and the need to preserve and protect confidential and trade secret information submitted in connection with the proposals for the RFP, it is imperative that the RFP process be managed through a centrally managed communication process. Consequently, all communications from vendors and Proposers shall only be directed to the designated project point of contact or the City’s designated representatives. The designated representative for purposes of all communication from vendors and Proposers shall be the Contact Person identified in Section 6.2.3. Name of Proposer Name of Designated Signatory Signature Title Date FINAL 12/28/12 Page 1 of 1 PROPOSAL FORM 2 CERTIFICATE OF AUTHORIZATION* I, ____________________, a resident of _____________________ in the State of ______________________, DO HEREBY CERTIFY that I am the Clerk/Secretary of _________________________________, a corporation duly organized and existing under and by virtue of the laws of the State of _______________________; that I have custody of the records of the corporation; and that as of the date of this certification, ___________________ holds the title of ___________________ of the corporation, and is authorized to execute and deliver in the name and on behalf of the corporation the Proposal submitted by the corporation in response to the to the Request for Proposals to Establish an Energy/Compost Facility or Export Food Scraps, Yard Trimmings and Biosolids, issued by the City of Palo Alto, California, February 2013, and all documents, letters, certificates and other instruments which have been executed by such officer on behalf of the corporation in connection therewith. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the corporate seal of the corporation this ____________________ day of __________, 2013. (Affix Seal Here) ____________________________________ Clerk/Secretary * Note: Separate certifications shall be submitted if more than one corporate officer has executed documents as part of the Proposal. FINAL 12/28/12 Page 1 of 1 PROPOSAL FORM 3 FORM OF PROPOSAL BOND KNOW ALL MEN BY THESE PRESENT, that we [NAME OF PROPOSER], as Principal (hereinafter the "Proposer") and [NAME OF SURETY], a [Corporation], [Partnership] duly organized under the laws of the State of __________________, as Surety, are held and firmly bound unto the City, as Obligee, in the sum of One Hundred Thousand Dollars ($100,000) lawful money of the United States of America to be paid to the City of Palo Alto, California (the “City”), its successors or assigns, for which payment, well and truly to be made, we bind ourselves, our successors and assigns, jointly and severally, firmly by these present; and WHEREAS, the above-named Proposer has submitted or is about to submit to the City a Proposal to provide services, all as defined and described in the Request for Proposals to Establish an Energy/Compost Facility or Export Food Scraps, Yard Trimmings and Biosolids, issued by the City in February 2013 and covered by the Proposal submitted by the Proposer in response thereto, which Proposal is made a part hereof. NOW, THEREFORE, the Surety hereby understands that if the above-referenced Proposer is selected by the City as the most advantageous Proposer, then the Proposer will negotiate in good faith to enter into a Contract based on its Proposal and, if the Proposer's Proposal is selected as the most advantageous Proposal, the Proposer will enter into a Contract in writing and the Guarantor (as set forth in the Proposal) will enter into the Guaranty of the Contract within the time specified in this RFP, or any extension thereof agreed to in writing by the City. Surety hereby agrees that if the Proposer shall fail to do so, Surety will pay to the City, as liquidated damages, the full amount of this Bond within 30 calendar days after receipt by Proposer and Surety of written notice of such failure from the City, which notice shall be given with reasonable promptness, identifying this Bond and including a statement of the amount due. Upon execution of the Contract and delivery of the Guaranty this Bond shall thereafter become null and void, otherwise to remain in full force and effect unless terminated as hereinafter provided. It is agreed that this Bond shall become effective on the date the Proposal is submitted and will continue in full force and effect for 940 days from the Proposal Submission Date (unless extended for up to an additional one hundred and eighty (180) days) or until terminated as hereinafter provided. If the Proposal is not accepted within the period stipulated immediately above, or any extension thereof agreed to in writing by the City, then after written notice by the City of such non-acceptance, this Bond may be terminated by the Surety or Proposer upon written notice to each other and to the City by registered mail at least 10 days prior to the termination date specified in such notice. Upon the giving of such notice, Surety shall be discharged from all liability under this Bond for any act or omission of the Proposer occurring after the date of the notice of non-acceptance. PROPOSAL FORM 3 (CONT.) FINAL 12/28/12 Page 2 of 2 Any suit or action under this Bond shall be commenced only in a court of competent jurisdiction located in the State of California. All capitalized terms used herein and not otherwise defined shall have the meaning set forth in this RFP. IN WITNESS WHEREOF, Surety and Proposer, intending to be legally bound hereby, do each cause this Proposal Bond to be duly executed on its behalf by its authorized officers, agent or representative. Signed and sealed this ________ day of ______________________, 2013. SURETY PROPOSER [NAME OF SURETY] [NAME OF PROPOSER] _____________________________ _____________________________ Name Name _____________________________ _____________________________ Name of Authorized Signatory Name of Designated Signatory _____________________________ _____________________________ Signature Signature _____________________________ _____________________________ Title Title FINAL 12/28/12 Page 1 of 1 PROPOSAL FORM 4 GUARANTOR ACKNOWLEDGEMENT (to be typed on Guarantor's Letterhead) (the "Proposer") has submitted herewith a Proposal in response to the Request for Proposals to Establish an Energy/Compost Facility or Export Food Scraps, Yard Trimmings and Biosolids, issued by the City of Palo Alto, California, February 2013. The Guarantor has reviewed the Proposer's Proposal which will form the basis of the Contract. The Guarantor hereby certifies that it will guarantee the performance of all of the obligations of the Proposer set forth in the Proposal in the event the Proposer is selected for final negotiations and execution of the Contract, and that it will execute a separate Guaranty Agreement substantially in the form described in Appendix J. Name of Guarantor Name of Authorized Signatory Signature Title Date FINAL 12/28/12 Page 1 of 1 PROPOSAL FORM 5 SURETY LETTER OF INTENT (to be typed on Surety’s Letterhead) City of Palo Alto MSC, Building C 3201 East Bayshore Road Palo Alto, CA 94303 Attn: Mr. Matthew Krupp Dear Mr. Krupp: ________________ (the "Proposer") has submitted herewith a Proposal in response to the Request for Proposals to Establish an Energy/Compost Facility or Export Food Scraps, Yard Trimmings and Biosolids, issued by the City of Palo Alto, California, February, 2013. Surety hereby certifies that in the event that Proposer is awarded the Contract it intends to provide bond(s) in amounts required in this RFP for construction and for operation of the E/C Facility or for Export, whichever is proposed. In addition, it intends to provide bonds in the amounts required in this RFP for removal of the E/C Facility from the Site and restoration of the Site to a reasonably equivalent condition as existed prior to start of construction of the E/C Facility. [Proposer may provide an alternate form of financial security for Facility removal/Potential Site restoration; see RFP Section 5.10.6]. Name of Surety Name of Authorized Signatory Signature Title Date In the event that individual Sureties are proposed for the separate construction and operations Performance Bonds, and for financial security for E/C Facility removal and restoration of the Site, individual letters shall be provided by each such Surety. (Authority of Surety(s) to execute bonds to be inserted here or attached hereto). FINAL 12/28/12 Page 1 of 1 PROPOSAL FORM 6 INSURANCE COMPANY LETTER OF INTENT (to be typed on Insurance Company's Letterhead) City of Palo Alto MSC, Building C 3201 East Bayshore Road Palo Alto, CA 94303 Attn: Mr. Matthew Krupp Dear Mr. Krupp: ________________ (the "Proposer") has submitted herewith a Proposal in response to the Request for Proposals to Establish an Energy/Compost Facility or Export Food Scraps, Yard Trimmings and Biosolids, issued by the City of Palo Alto, California, February 2013. The Insurance Company hereby certifies that it is duly authorized to conduct business in California and intends to provide all required insurance set forth in this RFP in the event the Proposer is awarded the Contract. Name of Insurance Company Name of Authorized Signatory Signature Title Date FINAL 12/28/12 Page 1 of 2 PROPOSAL FORM 7 PARTICIPATING FIRMS All firms that will be significant participants in providing services pursuant to the Proposal (the "Participating Firms") are identified below. For the E/C Facility, such firms shall include, as applicable (1) the Proposer; (2) the Guarantor, (3) the new company, if any, to be formed for the sole purpose of executing and performing the Contract; (4) the firm that will permit the E/C Facility, (5) the party providing financing, (6) the firm that will design the E/C Facility; (7) the firm that will construct the E/C Facility; (8) the firm that will operate the E/C Facility; (9) the firm that will market products, and (10) any other significant participant. (1) ______________________________________________ (2) ______________________________________________ (3) ______________________________________________ (4) ______________________________________________ (5) ______________________________________________ (6) ______________________________________________ (7) ______________________________________________ (8) ______________________________________________ (9) ______________________________________________ (10) _____________________________________________ For Export, such firms shall include, as applicable: (1) the Proposer; (2) the Guarantor; (3) the new company, if any, to be formed for the sole purpose of executing and performing the Contract; (4) the firm that will pick up and provide transportation services for the Acceptable Feedstock; (5) the firm that will manage/ process Acceptable Feedstock; (6) the firm that will market products; and (7) any other significant participant. (1) _______________________________________________ (2) ________________________________________________ PROPOSAL FORM 7 (CONT.) FINAL 12/2812 Page 2 of 2 (3) ________________________________________________ (4) ________________________________________________ (5) ________________________________________________ (6) ________________________________________________ (7) ________________________________________________ Include a summary of the services and responsibilities of each Participating Firm, limited to one page or less in length for each firm. Name of Proposer Name of Designated Signatory Signature Title Date FINAL 12/28/12 Page 1 of 3 PROPOSAL FORM 8 PARTICIPATING FIRM INFORMATION This Proposal Form shall be completed separately for the Proposer, the Guarantor and each other Participating Firm. 1. Name in Full of Participating Firm: ___________________________________________________________________ Principal Business Address: ___________________________________________________________________ 2. Principal Contact Person(s), and phone, fax and E-mail contact information: ___________________________________________________________________ ___________________________________________________________________ 3. Form of Business Concern: (Corporation, Partnership, Joint Venture, Other): ___________________________________________________________________ ___________________________________________________________________ 4. State in which organized, and date of organization: ___________________________________________________________________ 5. If a partnership, give names of partners; if a corporation, give names of officers with authority to sign in name of corporation (or identify the location in any pre-printed materials submitted with the Proposal where such officers are identified): NAME TITLE ADDRESS PROPOSAL FORM 8 (CONT.) FINAL 12/28/12 Page 2 of 3 6. All information and statements contained in the Proposal made by or concerning the Participating Firm are current, correct and complete, and are made with full knowledge that the City will rely on such information and statements in selecting the Preferred Proposer and executing the Contract. 7. The Participating Firm is committed to performing the services and undertaking the responsibilities which the Proposer has described as to be performed by the Participating Firm on Proposal Form 7. 8. To the best knowledge of the Participating Firm, the Proposal has been prepared and is submitted without collusion, fraud or any other action taken in restraint of free and open competition for services contemplated by this RFP. 9. The Participating Firm is not currently suspended or debarred from doing business with any governmental entity. 10. The Participating Firm has reviewed all of its engagements and pending engagements, and no potential exists for any conflict of interest or unfair advantage. 11. To the best knowledge of the Participating Firm, no person or selling agency has been employed or retained to solicit the award of the Contract under an arrangement for a commission, percentage, brokerage or contingency fee or on any other success fee basis, except bona fide employees of the Proposer or the Guarantor. 12. The Participating Firm is authorized to do business in the State of California 13. The Participating Firm has filed all State of California and federal tax returns and paid all other taxes required by law. California Taxpayer Identification Number: ________________________ Federal Taxpayer Identification Number: ________________________ 14. The Participating Firm is duly organized and validly existing in good standing and is duly qualified to transact business in each and every jurisdiction where such qualification is required to enable the Participating Firm to perform is obligations contemplated by the Proposal. 15. The performance of all obligations of the Participating Firm contemplated by the Proposal has been authorized by all required action of the Proposer, including any action required by any charter, by-laws, and partnership agreement, as the case may be, and any Applicable Laws which regulate the conduct of the Participating Firm's affairs. PROPOSAL FORM 8 (CONT.) FINAL 12/28/12 Page 3 of 3 16. The performance of all obligations of the Participating Firm contemplated by the Proposal does not conflict with and will not constitute a breach of or event of default under any charter, by-laws or partnership agreement, as the case may be, of the Participating Firm or any agreement, indenture, mortgage, contract or instrument to which the Participating Firm is a party or by which it is bound. 17. There is no action, suit or proceeding, at law or in equity, before or by any court or similar governmental body against the Participating Firm wherein an unfavorable decision, ruling or finding would materially adversely affect the performance by the Participating Firm of its obligations hereunder or the other transactions contemplated by the Proposal, or which, in any way, would materially adversely affect the validity or enforceability of the obligations proposed to be undertaken by the Participating Firm, or any agreement or instrument entered into by the Participating Firm in connection with the transaction contemplated hereby. 18. No corporation, partnership, individual or association, officer, director, employee, manager, parent, subsidiary, affiliate or principal shareholder of the Participating Firm has been adjudicated to be in violation of any State of California, State or Federal environmental law, or charged with or convicted of bribery, fraud, collusion, or any violation of any State of California, State or Federal anti-trust or similar statute within the preceding five years, or previously adjudged in contempt of any court order enforcing such laws. 19. [Participating Firm] acknowledges and agrees that neither the City nor any of its affiliates, employees, agents, consultants, attorneys, representatives or contractors makes any representation or warranty as to the accuracy or reliability of any information or statements contained in this RFP, and releases and discharges the City and each such person from any and all claims which it has or may have arising out of any such information or statements. ______________________________ Name of Participating Firm ______________________________ Name of Authorized Signatory ______________________________ Signature ______________________________ Title _____________________________ Date FINAL 12/28/12 Page 1 of 1 PROPOSAL FORM 9 DISCLOSURE City of Palo Alto MSC, Building C 3201 East Bayshore Road Palo Alto, CA 94303 Attn: Mr. Matthew Krupp Re: Disclosure Dear Mr. Krupp: Neither ____[Proposer]_____ nor its officers, principals, stockholders and affiliates are debarred by the State of California, which would prevent the company from entering into a contract with the City. In addition, neither __[Proposer]__ nor its officers, principals, stockholders and affiliates are debarred by any state in the United States or its political subdivisions from entering into contracts with such government entity. Furthermore, __[Proposer]__ will not use any contractors or subcontractors who are so debarred. _____________________________ Name of Proposer _____________________________ Name of Designated Signatory _____________________________ Signature _____________________________ Title _____________________________ Date FINAL 12/28/12 Page 1 of 3 PROPOSAL FORM 10 E/C FACILITY PERFORMANCE GUARANTEES Feedstock Throughput Guarantee (Rated Capacity) The Contractor and Guarantor guarantee that the E/C Facility shall be capable of processing [_____] TPD of Acceptable Feedstock (Rated Capacity). [PROPOSER TO COMPLETE AS APPROPRIATE FOR PROPOSED TECHNOLOGY] Availability Guarantee The Contractor and Guarantor guarantee that the percentage of Rated Capacity of the E/C Facility available during any Contract Year shall be at least [__] % [PROPOSER TO COMPLETE AS APPROPRIATE FOR PROPOSED TECHNOLOGY, BUT SHALL BE NO LESS THAN 85%]. Annual Feedstock Throughput Guarantee The Contractor and Guarantor guarantee that at the Availability Guarantee the E/C Facility shall process [__] tons of Acceptable Feedstock per year. [PROPOSER TO COMPLETE AS APPROPRIATE FOR PROPOSED TECHNOLOGY]. Electric Generating Guarantee For E/C Facilities that generate electricity for sale to the City (including offset of the electric needs of the RWQCP) or export to another utility, the Contractor and Guarantor guarantee that the E/C Facility shall be capable of generating for export, on average, [__] kWh of electricity per ton of as-received Acceptable Feedstock processed. [PROPOSER TO COMPLETE AS APPROPRIATE FOR PROPOSED TECHNOLOGY] Annual Electric Output Guarantee For E/C Facilities that generate electricity for sale to the City (including offset of the electric needs of the RWQCP) or export to another utility, the Contractor and Guarantor guarantee that the E/C Facility shall deliver annually for sale [__] kWh of electricity. [TO BE COMPLETED BY PROPOSER, AS APPLICABLE, BY MULTIPLYING THE ANNUAL FEEDSTOCK THROUGHPUT GUARANTEE BY THE ELECTRIC GENERATING GUARANTEE.] Fuel Generating Guarantee For E/C Facilities that generate fuel for sale, the Contractor and Guarantor guarantee that the E/C Facility shall be capable of generating for export, on average, [__] of fuel per ton of as-received Acceptable Feedstock processed. [PROPOSER TO COMPLETE AS APPROPRIATE FOR PROPOSED TECHNOLOGY, SPECIFYING BOTH QUANTITY AND UNITS.] PROPOSAL FORM 10 (CONT.) FINAL 12/28/12 Page 2 of 3 Annual Fuel Output Guarantee For E/C Facilities that generate fuel for sale, the Contractor and Guarantor guarantee that the E/C Facility shall deliver annually for sale [___] of fuel. [TO BE COMPLETED BY PROPOSER, AS APPLICABLE, BY MULTIPLYING THE ANNUAL FEEDSTOCK THROUGHPUT GUARANTEE BY THE FUEL GENERATING GUARANTEE, SPECIFYING BOTH QUANTITY AND UNITS.] Material Recovery Guarantee For E/C Facilities that recover materials and/or generate products for sale, the Contractor and Guarantor guarantee that the E/C Facility will produce or otherwise recover for sale or beneficial use the following materials and/or products per ton of as-received Acceptable Feedstock processed: [PROPOSER TO PROVIDE LISTING OF MATERIALS TO BE RECOVERED AND/OR PRODUCTS TO BE GENERATED, SPECIFYING BOTH QUANTITY AND UNITS AT RATED CAPACITY AND AT ANNUAL THROUGHPUT GUARANTEE. Diversion Guarantee The Contractor and Guarantor guarantee that the E/C Facility shall achieve an annual diversion rate of [___]%. The diversion rate shall be calculated annually as the total tons of Acceptable Feedstock processed less the tons of Residue disposed, divided by the tons of Acceptable Feedstock processed. [PROPOSER TO COMPLETE AS APPROPRIATE FOR PROPOSED TECHNOLOGY.] Environmental Performance Guarantee The Contractor and Guarantor guarantee that the E/C Facility will be operated and maintained in compliance with Applicable Law and all Environmental Performance Requirements included in the Contract. The Environmental Performance Guarantee shall include noise, odor and other environmental performance requirements as specified in this RFP Scheduled Acceptance Date Guarantee The Contractor and Guarantor guarantee the successful completion and Acceptance of the E/C Facility by the Acceptance Date of [___________]. [PROPOSER TO IDENTIFY PROPOSED ACCEPTANCE DATE. ACCEPTANCE DATE TO BE BASED ON SCHEDULE TO PERMIT, DESIGN AND CONSTRUCT THE E/C FACILITY AS PROVIDED BY PROPOSER AND AGREED TO BY THE CITY, BUT SHALL BE NO LATER THAN JANUARY 1, 2019.] PROPOSAL FORM 10 (CONT.) FINAL 12/28/12 Page 3 of 3 Service Fee Prices The Contractor and Guarantor shall guarantee the Prices as provided in its Proposal. _________________________________ Name of Proposer _________________________________ Name of Authorized Signatory _________________________________ Signature _________________________________ Date FINAL 12/28/12 Page 1 of 2 PROPOSAL FORM 11 FINANCIAL RESOURCES DATA (To be completed for Proposer, Guarantor and Major Participating Firms*) Name of company completing form Name of individual completing form Signature 1. Bond/Debt Information Current bond ratings on two most recent senior debt issues, if applicable. Issue Description Moody’s Rating S&P’s Rating Issue 1 Issue 2 2. Financial Indicators Please complete the following table. Fiscal Year End: 1 2 3 2010 2011 2012 A. Total Revenues $ $ $ B. Net Income $ $ $ C. Total Assets $ $ $ D. Current Assets $ $ $ E. Total Liabilities $ $ $ F. Current Liabilities $ $ $ G. Equity (C-E) $ $ $ * Major Participating Firms include those whose participation amounts for 15% or more of the Construction Cost or the Annual Operations and Maintenance Cost. PROPOSAL FORM 11 (CONT.) FINAL 12/28/12 Page 2 of 2 Using the information provided in the table, calculate: A. Revenue Growth Percentages. 2011: (A2-A1)/A1 % 2012: (A3-A2)/A2 % B. Profitability Percentages. Return on Revenue 2010: B1/A1 % 2011: B2/A2 % 2012: B3/A3 % Return on Assets 2010: B1/C1 % 2011: B2/C2 % 2012: B3/C3 % C. Net Worth 2010: C1-E1 $ 2011: C2-E2 $ 2012: C3-E3 $ D. Liquidity Ratio 2010: D1/F1 2011: D2/F2 2012: D3/F3 FINAL 12/28/12 APPENDIX B PRICING PROPOSAL FORMS Appendix B provides Pricing Proposal Forms (PPFs), as follows: Part 1 – E/C Facility Pricing Proposal Forms Part 2 – Export Pricing Proposal Forms Part 3 – Other Pricing Proposal Forms In completing the Pricing Proposal Forms, Proposers should note: 1. Proposers for the E/C Facility must complete all Pricing Proposal Forms included in Parts 1 and 3 for the Base Case Proposal (all feedstocks) and required Alternative Proposal (Food Scraps and Yard Trimmings only) 2. For Export, Proposers must complete the Pricing Proposal Forms in Part 2 and Part 3 (Pricing Proposal Form 3.1 only) for the Base Case Proposal (all feedstocks) and the required Alternative Proposal (Food Scraps and Yard Trimmings only). 3. With respect to proposed per ton tipping fees, for Proposal evaluation purposes the City will escalate the tipping fees by the assumed annual escalation rate of 2.50% (see RFP Section 7) from the date of Proposal submission to the Commercial Operation Date (to establish a “Year 1” price), then will escalate the tipping fees each year of the proposed operating period by 2.5% in order to conduct a net present value analysis (see RFP Section 7). 4. Pricing must take into account payments to the City for the Site Lease Payments commencing with project financing. 5. The City expects that the Proposer will include in its Business Proposal (Volume IV) any comments, exceptions or requested modifications regarding the Contract Principles, and shall assume that the Proposer’s pricing in Volume V is based on the Contract Principles, as the Proposer may request to modify. The Proposer shall enumerate the cost impacts of any Contract Principles to which it takes exception and/or offers amendments, alternatives or modifications. Each Pricing Proposal Form must be signed by the party so designated on the form. 6. As stated in Section 7.1 of this RFP, the costs to be incurred by the City in the preparation of the Site and operation of biosolids dewatering equipment, if required by the Proposer (as described in Section 7.1, and enumerated in Appendix C, Table 1), will be calculated and included by the City in the comparative analysis of price Proposals. Proposers are not to include such costs in their Pricing Proposal Forms. 7. In addition to the Proposals provided for on the Pricing Proposal Forms as described above, Proposers may also offer additional alternative E/C Facility and/or Export Proposals for Food Scraps and Biosolids only, Food Scraps only, Yard Trimmings FINAL 12/28/12 Page 2 of 2 only or Biosolids only. If such Proposals are offered, Proposers should complete the appropriate Pricing Proposal Forms (for example, PPF 1.1 First Year $/Ton), clearly noting on the form that the prices are for Food Scraps and Biosolids only, Food Scraps only, Yard Trimmings only or Biosolids only, as appropriate. Proposers are reminded that Volume V: Price and Pricing Proposal Forms shall be submitted with the other Proposal Volumes, but in a separate, sealed, opaque envelope or package. Price and related cost information must not be included in Volumes I, II, III or IV. FINAL 12/28/12 APPENDIX B – PART 1 E/C FACILITY PRICING PROPOSAL FORMS FINAL 12/28/12 Page 1 of 1 PRICING PROPOSAL FORM 1.1 E/C FACILITY BASE CASE $/TON PRICES FOR SERVICES ALL FEEDSTOCKS The undersigned hereby proposes to furnish the City with Acceptable Feedstock management services (the “Services”) in accordance with the RFP dated February 2013 and the undersigned’s Proposal dated ______ __, 2013, for the prices presented below. Guaranteed Fixed Prices, expressed in 2013 dollars*: Fee Food Scraps Proposed Price $/Ton Yard Trimmings Proposed Price $/Ton Biosolids Proposed Price $/Ton If Appropriate, Proposed Combined Price All Feedstocks ($/Ton) Acceptable Feedstock Tipping Fee Excess Tonnage Fee Shortfall Charge *Note: For the purposes of Proposal evaluation, the guaranteed prices proposed on this form will be adjusted by the assumed annual inflation rate of 2.50% (see Section 7) up to the Commercial Operation Date to establish Year 1 prices. Then the prices will be adjusted by the assumed annual inflation rate of 2.50% for each year of the proposed operating period. Fixed Prices Adjustment(s) During the Initial Term of the Contract, each Guaranteed Fixed Price presented above shall be subject to annual adjustment by the Adjustment Factor, as defined and provided for in the Contract, as well as to other adjustments as may be provided for in the Contract. Electricity Sale to City – Effect of Changes in Electricity Sale Price For each one cent increase in the sale price of electricity above the floor price of $0.077/kWh established by the City in this RFP, each Guaranteed Fixed Price provided above shall be reduced by $____ per ton. Electricity Sale to RWQCP – Discounted Sale Price If applicable, Proposer proposes to sell electric power directly to the RWQCP at a discount of _____% from the rate provided for in Utility Rate Schedule E-7. FINAL 12/28/12 Page 2 of 2 PRICING PROPOSAL FORM 1.1 (CONT.) ______________________________ Authorized Signature ______________________________ Company ______________________________ Date FINAL 12/28/12 Page 1 of 1 PRICING PROPOSAL FORM 1.2 E/C FACILITY $/TON PRICES FOR SERVICES FOOD SCRAPS, YARD TRIMMINGS ONLY The undersigned hereby proposes to furnish the City with Acceptable Feedstock management services (the “Services”) in accordance with the RFP dated February 2013 and the undersigned’s Proposal dated ______ __, 2013, for the prices presented below. Guaranteed Fixed Prices, expressed in 2013 dollars*: Fee Food Scraps Proposed Price ($/Ton) Yard Trimmings Proposed Price ($/Ton) If Appropriate, Proposed Combined Price ($/Ton) Acceptable Feedstock Tipping Fee Excess Tonnage Fee Shortfall Charge *Note: For the purposes of Proposal evaluation, the guaranteed prices proposed on this form will be adjusted by the assumed annual inflation rate of 2.50% (see Section 7) up to the Commercial Operation Date to establish Year 1 prices. Then the prices will be adjusted by the assumed annual inflation rate of 2.50% for each year of the proposed operating period. Fixed Prices Adjustment(s) During the Initial Term of the Contract, each Guaranteed Fixed Price presented above shall be subject to annual adjustment by the Adjustment Factor, as defined and provided for in the Contract, as well as to other adjustments as may be provided for in the Contract. Electricity Sale to City - - Effect of Changes in Electricity Sale Price For each one cent increase in the sale price of electricity above the floor price of $0.077/kWh established by the City in this RFP, each Guaranteed Fixed Price provided above shall be reduced by $____ per ton. Electricity Sale to RWQCP - - Discounted Sale Price If applicable, Proposer proposes to sell electric power directly to the RWQCP at a discount of _____% from the rate provided for in Utility Rate Schedule E-7. FINAL 12/28/12 Page 2 of 2 PRICING PROPOSAL FORM 1.2 (CONT.) ______________________________ Authorized Signature ______________________________ Company ______________________________ Date FINAL 12/28/12 Page 1 of 1 PRICING PROPOSAL FORM 1.3 ESTIMATED E/C FACILITY DEVELOPMENT COST ALL FEEDSTOCKS Estimated E/C Facility Development Cost The Estimated E/C Facility Development Cost, expressed in 2013 dollars, is as follows: Component Cost Permitting Design Construction a) Site Improvements and Preparation b) Buildings c) Foundations d) Pre-Processing Equipment e) Processing Equipment (list major systems separately): 1. 2. 3. 4. Other f) Product Handling Equipment g) Residue Handling Equipment h) Biogas/Syngas Clean-Up Equipment i) Power/Fuel Generating Equipment j) Air Pollution Control Equipment k) Odor Control Equipment l) Control and Monitoring Equipment m) Vehicles n) Other Start-Up and Acceptance Other Contractor Costs (please describe) a) Interconnection Construction(1) $100,000 b) Other FINAL 12/28/12 Page 2 of 2 PRICING PROPOSAL FORM 1.3 (CONT.) Component Cost Contingency Total Estimated Cost (1) Provides an allowance of $100,000 as part of E/C Facility Development Cost for Interconnection Construction, should the Facility generate electricity for sale. ___________________________ Authorized Signature ______________________________ Company ______________________________ Date FINAL 12/28/12 Page 1 of 1 PRICING PROPOSAL FORM 1.4 ESTIMATED E/C FACILITY DEVELOPMENT COST FOOD SCRAPS, YARD TRIMMINGS ONLY Estimated E/C Facility Development Cost The Estimated E/C Facility Development Cost, expressed in 2013 dollars, is as follows: Component Cost Permitting Design Construction a) Site Improvements and Preparation b) Buildings c) Foundations d) Pre-Processing Equipment e) Processing Equipment (list major systems separately): 1. 2. 3. 4. Other f) Product Handling Equipment g) Residue Handling Equipment h) Biogas/Syngas Clean-Up Equipment i) Power/Fuel Generating Equipment j) Air Pollution Control Equipment k) Odor Control Equipment l) Control and Monitoring Equipment m) Vehicles n) Other Start-Up and Acceptance Other Contractor Costs (please describe) a) Interconnection Construction(1) $100,000 b) Other FINAL 12/28/12 Page 2 of 2 PRICING PROPOSAL FORM 1.4 (CONT.) Component Cost Contingency Total Estimated Cost (1) Provides an allowance of $100,000 as part of E/C Facility Development Cost for Interconnection Construction, should the Facility generate electricity for sale. ___________________________ Authorized Signature ______________________________ Company ______________________________ Date FINAL 12/28/12 Page 1 of 1 PRICING PROPOSAL FORM 1.5 ESTIMATED OPERATING & MAINTENANCE COSTS E/C FACILITY ALL FEEDSTOCKS Estimated Annual O&M Cost for E/C Facility The following presents the Estimated Annual O&M Costs, expressed in 2013 dollars: Cost Component Annual Cost ($/Year) Labor Utilities (1) Chemicals Fuel Supplies Standby Electric Power Charge Laboratory & Other Contract Services Residuals Transportation & Disposal Insurance Routine Maintenance & Repair Capital Repair & Replacement Annual Site Rent Payment Other Costs (please describe) Contingency Total Estimated O&M Cost (1) As applicable, the cost of utilities shall include ammonia treatment at the RWQCP at $0.57/pound. Guaranteed Utility Consumption The following presents the Proposer’s guaranteed annual consumption of City-provided utilities: Water consumption: _______ MGY Wastewater generation: _____ MGY Power Consumption: _______ kWh/year Natural Gas Consumption: __________ MMBtu/year FINAL 12/28/12 Page 2 of 2 PRICING PROPOSAL FORM 1.5 (CONT.) ______________________________ Authorized Signature ______________________________ Company ______________________________ Date FINAL 12/28/12 Page 2 of 2 PRICING PROPOSAL FORM 1.6 ESTIMATED OPERATING & MAINTENANCE COSTS E/C FACILITY FOOD SCRAPS, YARD TRIMMINGS ONLY Estimated Annual O&M Cost for E/C Facility The following presents the Estimated Annual O&M Costs, expressed in 2013 dollars: Cost Component Annual Cost ($/Year) Labor Utilities (1) Chemicals Fuel Supplies Standby Electric Power Charge Laboratory & Other Contract Services Residuals Transportation & Disposal Insurance Routine Maintenance & Repair Capital Repair & Replacement Annual Site Rent Payment Other Costs (please describe) Contingency Total Estimated O&M Cost (1) As applicable, the cost of utilities shall include ammonia treatment at the RWQCP at $0.57/pound. Guaranteed Utility Consumption The following presents the Proposer’s guaranteed annual consumption of City-provided utilities: Water consumption: _______ MGY Wastewater generation: _____ MGY Power Consumption: _______ kWh/year Natural Gas Consumption: _____ MMBtu/year FINAL 12/28/12 Page 2 of 2 PRICING PROPOSAL FORM 1.6 (CONT.) _________________ Authorized Signature ______________________________ Company ______________________________ Date FINAL 12/28/12 Page 1 of 1 APPENDIX B – PART 2 EXPORT PRICING PROPOSAL FORMS FINAL 12/28/12 Page 1 of 1 PRICING PROPOSAL FORM 2.1 EXPORT PROPOSAL BASE CASE ALL FEEDSTOCKS $/TON PRICES FOR SERVICES The undersigned hereby proposes to furnish the City with Acceptable Feedstock management services (the “Services”) in accordance with the RFP dated February 2013 and the undersigned’s Proposal dated ______ __, 2013, for the prices presented below. Guaranteed Fixed Prices, expressed in 2013 dollars*: Separate Individual Feedstock Pricing or Combined Pricing Fee Food Scraps Proposed Price ($/Ton) Yard Trimmings Proposed Price ($/Ton) Biosolids Proposed Price ($/Ton) If Appropriate, Combined Proposed Price ($/Ton) Acceptable Feedstock Tipping Fee Excess Tonnage Fee Shortfall Fee *Note: For the purposes of Proposal evaluation, the guaranteed prices proposed on this form will be adjusted by the assumed annual inflation rate of 2.50% (see Section 7) up to the Commercial Operation Date to establish Year 1 prices, and then for each year of the proposed operating period. . Fixed Prices Adjustment(s) During the Initial Term of the Contract, each Guaranteed Fixed Price presented above shall be subject to annual adjustment by the Adjustment Factor, as defined and provided for in the Contract, as well as to other adjustments as may be provided for in the Contract. ______________________________ Authorized Signature ______________________________ Company ______________________________ Date FINAL 12/28/12 Page 1 of 1 PRICING PROPOSAL FORM 2.2 EXPORT PROPOSAL FOOD SCRAPS, YARD TRIMMINGS ONLY FIRST YEAR $/TON PRICES FOR SERVICES The undersigned hereby proposes to furnish the City with Acceptable Feedstock management services (the “Services”) in accordance with the RFP dated February 2013 and the undersigned’s Proposal dated ______ __, 2013, for the prices presented below. Guaranteed Fixed Prices, expressed in 2013 dollars*: Fee Food Scraps Proposed Price ($/Ton) Yard Trimmings Proposed Price ($/Ton) If Appropriate, Combined Proposed Price ($/Ton) Acceptable Feedstock Tipping Fee Excess Tonnage Fee Shortfall Fee *Note: For the purposes of Proposal evaluation, the guaranteed prices proposed on this form will be adjusted by the assumed annual inflation rate of 2.50% (see Section 7) up to the Commercial Operation Date to establish Year 1 prices, and then for each year of the proposed operating period. Fixed Prices Adjustment(s) During the Initial Term of the Contract, each Guaranteed Fixed Price presented above shall be subject to annual adjustment by the Adjustment Factor, as defined and provided for in the Contract, as well as to other adjustments as may be provided for in the Contract. ______________________________ Authorized Signature ______________________________ Company ______________________________ Date FINAL 12/28/12 Page 1 of 1 APPENDIX B – PART 3 OTHER PRICING PROPOSAL FORMS FINAL 12/28/12 Page 1 of 1 PRICING PROPOSAL FORM 3.1 ESTIMATED ANNUAL PRODUCT REVENUES – 2013 (ALL PROPOSALS) Products & Materials for Sale Material Percent of Incoming Feedstock Annual Quantity (Tons) Sale Price per Ton Transportation Cost per Ton Annual Revenues (Net of Transportation) Electricity for Sale Annual Amount (kWh) Sale Price per Unit Wheeling Cost per Unit Annual Revenues (Net of Wheeling Cost) Fuels for Sale Annual Amount (1) Sale Price per Unit Transportation Cost per Unit Annual Revenues (Net of Transportation) Liquid Fuels Gaseous Fuels (1) Annual amount expressed in applicable units (e.g., gallons, MMBTU, other) ______________________________ Authorized Signature ______________________________ Company ______________________________ Date FINAL 12/28/12 Page 1 of 1 PRICING PROPOSAL FORM 3.2 SPOT MARKET HOST COMMUNITY PAYMENT E/C FACILITY ONLY The Contractor shall pay the City a Host Community Payment of $_________ [to be proposed by Proposer] per ton, adjusted annually by the Adjustment Factor, for Spot Market Feedstock delivered to the E/C Facility, except for Spot Market Feedstock that is used by the City to meet its aggregate Minimum Annual Delivery Requirements or Periodic Delivery Reset shortfalls. ______________________________ Authorized Signature ______________________________ Company ______________________________ Date FINAL 12/28/12 Page 1 of 1 PRICING PROPOSAL FORM 3.3 ESTIMATED COST FOR E/C FACILITY REMOVAL AND RESTORATION OF THE SITE(S) (E/C FACILITY ONLY) (Complete Form as Appropriate) RWQCP Site Estimated Cost for Facility Removal and $______________ Restoration of the RWQCP Site as of the Acceptance Date City Landfill Site Estimated Cost for Facility Removal and Restoration of the City Landfill Site as of the Acceptance Date Facility: (Proposer to Specify) $______________ Facility: (Proposer to Specify) $______________ Facility: (Proposer to Specify) $______________ Both Sites Total Estimated Cost for Removal of all $______________ Facilities and Restoration of Both Sites as of the Acceptance Date ______________________________ Authorized Signature ______________________________ Company ______________________________ Date Revised Draft 12/21/12 C-1 APPENDIX C LANDFILL SITE INFORMATION Figures Figure 1: Location of Landfill Maintenance Facility on Landfill Site Figure 2: Alternative Final Cover Grading Plan, 10-acre Development Area Figure 3: Alternative Final Cover Grading Plan, 7-acre Development Area Figure 4: Revised Final Cover Grading Plan, 5.4-acre Development Area Figure 5: Revised Final Cover Grading Plan, 3.8-acre Development Area Figure 6: Generic Cross Section of Final Cover Grading Plan Tables Table 1: Cost Estimates for Site Access, Utilities and Preparation of Site Pad Other Landfill Site Information Landfill Gas Projections March 15, 1989 Geotechnical Investigation - BSK & Associates March 14, 2008 Geotechnical Report - Jensen - Van Lienden Associates, Inc. FINAL 12/28/12 C-2 Figure 1. Location of Landfill Maintenance Facility on Landfill Site APPROXIMATE LOCATION OF ENERGY/COMPOST FACILITY FINAL 12/28/12 C-8 Table 1. Palo Alto Energy/Compost Facility Site Preparation Costs Task Unit Price 10 Acre Pad 7 Acre Pad 5.4 Acre Pad 3.8 Acre Pad Quantity Extended Quantity Extended Quantity Extended Quantity Extended Environmental Impact Report $500,000 1 $500,000 1 $500,000 1 $500,000 1 $500,000 Design and Permits (pad only) $250,000 1 $250,000 1 $250,000 1 $250,000 0.5 $125,000 Excavation and onsite re-grading of the refuse $5.84 242,850 $1,417,758 68,500 $399,903 22,450 $131,063 0 $0 Engineered backfill of pad. Import and compact 4 feet of backfill required per Feasibility Study. $20.48 64,533 $1,321,320 45,173 $924,924 34,848 $713,513 24,523 $502,102 Retaining wall at $75 per sf $75.00 18,300 $1,372,500 10,100 $757,500 3,750 $281,250 0 $0 New Road $309,300 1 $309,300 1 $309,300 1 $309,300 1 $309,300 Utilities $150,000 1 $150,000 1 $150,000 1 $150,000 1 $150,000 $5,320,878 $3,291,627 $2,335,126 $1,586,402 Notes: 1. Design and permitting includes geotechnical study, retaining wall design and specifications, excavation, compaction and re-grading, odor impact plans, WDR revision, closure plan revision, leachate and gas extraction system plans. 2. Excavation and re-grading unit price is derived from Appendix C of Feasibility Study with 2 years of inflation (5%). 3. Engineered backfill of pad assumes 4 feet of engineered fill imported and compacted to support the facility. Unit price is from Appendix C of Feasibility Study with 2 years of inflation added (5%). 4. Retaining wall unit price from landfill consultant Golder Associates. 5. Utilities estimated at $150,000 per Feasibility Study Appendix E. FINAL 12/28/12 C-9 Landfill Gas Projections FINAL 12/28/12 C-10 Environmental Consultants and Contractors SCS ENGINEERS October 4, 2012 File No. 07206022.12 Task 5 My. RonArp 3900 Kilroy Airport Way Suite 100 Long Beach, CA 90806 City of Palo Alto, Utilities Marketing Services 250 Hamilton Avenue, 3rd Floor Palo Alto, CA 94301 Subject: Palo Alto Landfill LFG/Methane Modeling Update Dear Ron: 562426-9544 FAX 562 427-0805 www.scsenglneers.com Palo Alto Utilities Marketing Services (Palo Alto) has requested the assistance ofSCS Engineers (SCS) in estimating future landfill gas (LFG) generation and recovery rates for the Palo Alto Landfill (Site) through 2042. To estimate these rates, SCS used its existing LFG generation modeling for the Site, waste placement information through 2011 provided by Palo Alto, and LFG collection rates determined during greenhouse gas (GHG) inventories for the Site. LFG GENERATION ESTIMATION To project LFG recovery rates into the future, a first-order decay model similar to the Environmental Protection Agency's (EPA's) LFG Emission Model (LandGEM) was used. Previous modeling was not done for the purpose of estimating recoverable LFG and used regulatory default modeling values for the methane generation potential (Lo) and the decay rate constant (k). To provide a better estimate of the methane generation and recovery, SCS adjusted these values based on LFG recovery data from 2005-2011. The LFG recovery percentage had previously been estimated as 85 percent by SCS using the methodology proposed by the Solid Waste Industry for Climate Solutions (SWICS) for purposes of GHG inventories. SCS believes that this collection rate is appropriate for use while the landfill was active through 2010. This collection rate is also appropriate for 2011 because the final cap has not yet been constructed. SCS estimates that future LFG recovery will increase to 95 percent after the landfill closure as the LFG collection and control system (GCCS) was expanded, and once the final cover will be extended over the site in 2013. The recovered LFG has averaged 40 percent methane during the period from 2005-2011. The methane concentration ofLFG can be highly variable and is dependent on the way the GCCS is operated. The modeled methane generation and recovery rates are shown in attached Table 1. If you have any questions about these estimates or how they were calculated, please contact eitlier oftlie undersigned at (562) 426-9544. Offices NatIOnwide o FINAL 12/28/12 C-11 Mr. Ron Arp October 4, 2012 P ag e 2 Sincerely, Staff Scientist SCS ENGINEERS Enclosures Table 1 -Detailed Calculations Gabrielle F. Stephens Senior Project Professional SCS ENGINEERS cc: Patrick S. Sullivan, SCS Engineers (w/enclosure) Arthur Jones, SCS Field Services (w/enclosure) FINAL 12/28/12 C-12 ATTACHMENT A PROJECTED LFG GENERATION AND RECOVERY FINAL 12/28/12 C-13 Year 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 TABLE 1. LFG GENERA TION AND RECOVERY PROJECTION PALO ALTO LANDFILL -PALO ALTO, CALIFORNIA LFG Projected LFG Projected Disposal Refuse Disposal Refuse Generation Recovery Rate In-Place Rate In-Place 50% Methane 50% Methane (tomlyr) (tons) (Mglyr) (Mg) (sefm) (Million ft'/yr) (sefm) 121,449 ° 110,177 ° ° ° ° 121,449 121,449 110,177 110,177 12 6 10 121,449 242,898 110,177 220,353 23 12 20 121,449 364,347 110,177 330,530 35 18 29 121,449 485,796 110,177 440,707 46 24 39 121,449 607,245 110,177 550,883 57 30 48 121,449 728,694 110,177 661,060 67 35 57 121,449 850,143 110,177 771,237 78 41 66 121,449 971,592 110,177 881,413 88 46 75 121,449 1,093,041 110,177 991,590 98 51 83 121,449 1,214,490 110,177 1,101,767 108 57 92 121,449 1,335,939 110,177 1,211,943 117 62 100 121,449 1,457,388 110,177 1,322,120 127 67 108 121,449 1,578,837 110,177 1,432,297 136 71 116 121,449 1,700,286 110,177 1,542,473 145 76 123 121,449 1,821,735 110,177 1,652,650 154 81 131 121,449 1,943,184 110,177 1,762,827 163 86 138 121,449 2,064,633 110,177 1,873,003 171 90 146 121,449 2,186,082 110,177 1,983,180 180 94 153 121,449 2,307,531 110,177 2,093,357 188 99 160 121,449 2,428,980 110,177 2,203,533 196 103 166 121,449 2,550,429 110,177 2,313,710 204 107 173 121,449 2,671,878 110,177 2,423,887 211 111 180 121,449 2,793,327 110,177 2,534,064 219 115 186 88,862 2,914,776 80,614 2,644,240 226 119 192 93,290 3,003,638 84,631 2,724,854 231 121 196 94,771 3,096,928 85,975 2,809,486 235 124 200 98,440 3,191,699 89,303 2,895,460 240 126 204 103,452 3,290,139 93,850 2,984,764 244 128 208 116,453 3,393,591 105,644 3,078,614 250 131 212 124,984 3,510,044 113,384 3,184,258 256 134 218 121,143 3,635,028 109,899 3,297,642 263 138 223 104,223 3,756,171 94,550 3,407,541 269 142 229 96,484 3,860,394 87,529 3,502,090 274 144 233 104,949 3,956,878 95,208 3,589,619 278 146 236 86,673 4,061,827 78,628 3,684,827 283 149 240 90,836 4,148,500 82,405 3,763,456 286 150 243 83,940 4,239,336 76,149 3,845,861 289 152 245 73,921 4,323,276 67,060 3,922,010 291 153 247 32,842 4,397,197 29,794 3,989,070 293 154 249 33,223 4,430,039 30,139 4,018,864 290 152 246 44,483 4,463,262 40,354 4,049,003 287 151 244 42,573 4,507,745 38,622 4,089,357 286 150 243 30,982 4,550,318 28,106 4,127,979 284 150 242 32,944 4,581,300 29,886 4,156,085 282 148 240 34,634 4,614,244 31,419 4,185,972 279 147 238 30,987 4,648,878 28,111 4,217,391 277 146 236 25,763 4,679,865 23,372 4,245,502 275 144 234 22,552 4,705,628 20,459 4,268,874 272 143 231 21,860 4,728,180 19,831 4,289,333 269 141 228 19,990 4,750,040 18,135 4,309,164 265 140 228 21,782 4,770,030 19,760 4,327,298 262 138 175 Palo Alto Model project to 2042 LFG Projected Recovery 40% Methane (sefm) ° 12 25 37 49 60 71 82 93 104 114 125 135 145 154 164 173 182 191 200 208 216 225 233 241 245 250 255 260 265 272 279 286 291 296 300 303 307 309 311 308 305 304 302 299 297 295 292 289 285 285 219 10/4/2012 FINAL 12/28/12 C-14 Disposal Refuse Rate In-Place Year (tomlyr) (tons) 2007 17,161 4,791,812 2008 16,478 4,808,973 2009 6,403 4,825,451 2010 4,714 4,831,854 2011 19,283 4,836,568 2012 0 4,855,851 2013 0 4,855,851 2014 0 4,855,851 2015 0 4,855,851 2016 0 4,855,851 2017 0 4,855,851 2018 0 4,855,851 2019 0 4,855,851 2020 0 4,855,851 2021 0 4,855,851 2022 0 4,855,851 2023 0 4,855,851 2024 0 4,855,851 2025 0 4,855,851 2026 0 4,855,851 2027 0 4,855,851 2028 0 4,855,851 2029 0 4,855,851 2030 0 4,855,851 2031 0 4,855,851 2032 0 4,855,851 2033 0 4,855,851 2034 0 4,855,851 2035 0 4,855,851 2036 0 4,855,851 2037 0 4,855,851 2038 0 4,855,851 2039 0 4,855,851 2040 0 4,855,851 2041 0 4,855,851 2042 0 4,855,851 Bold values mdicate measured recovery data. Methane Content of LFG Adjusted to: Selected Decay Rate Constant (k): Disposal Rate (Mglyr) 15,568 14,949 5,809 4,276 17,493 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Selected Ultimate Methane Recovery Rate (Lo): Palo Alto Model project to 2042 Refuse In-Place (Mg) 4,347,059 4,362,627 4,377,575 4,383,384 4,387,660 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 4,405,154 50% 0.020 LFG Projected Generation 50% Methane (sefm) (Million n'/yr) 259 136 256 134 252 133 248 130 243 128 240 126 236 124 231 121 226 119 222 117 217 114 213 112 209 110 205 108 201 106 197 103 193 101 189 99 185 97 182 95 178 94 175 92 171 90 168 88 164 86 161 85 158 83 155 81 152 80 149 78 146 77 143 75 140 74 137 72 135 71 132 69 40 rn3/Mg eli ftlton LFG Projected LFG Projected Recovery Recovery 50% Methane 40% Methane (sefm) (sefm) 208 260 236 296 230 287 195 243 272 340 204 255 200 250 219 274 215 269 211 263 207 258 203 253 198 248 195 243 191 238 187 234 183 229 180 225 176 220 173 216 169 211 166 207 163 203 159 199 156 195 153 191 150 188 147 184 144 180 141 177 138 173 136 170 133 166 130 163 128 160 125 157 10/4/2012 FINAL 12/28/12 C-15 350 300 ~ ~ 250 t ~ 200 ;; § 150 '" j 100 o .. .., 50 r-- Figure 1. LFG Generation Projection Palo Alto Landfill, California I ~ II V ---------r-- 2000 2005 2010 2015 2020 2025 2030 Calculated Projected Actual Year* Generation Generation Actual Actual Recovea (50"10 (50"10 Recovery Methane % (40% Methanel Methanel Methanel 2005 268 265 272 41.90% 285 2006 206 262 214 41.00"10 219 2007 245 259 304 34.20"10 260 2008 278 256 300 39.40"10 296 2009 270 252 292 39.36% 287 2010 229 248 233 41.80"10 243 2011 320 243 320 42.50"10 340 Average 260 255 4002% Assumes 85% collection efficiency from 2005-2011 2035 Actual Recovea (50% Methanel 227.94 175.48 207.94 236.40 229.86 194.79 27178 FINAL 12/28/12 C-16 Geotechnical Investigation BSK & Associates March 15, 1989 [ARI TO INSERT REPORT WITH FINAL RFP BEFORE DISTRIBUTION TO PROPOSERS] FINAL 12/28/12 C-17 Geotechnical Report Jensen - Van Lienden Associates, Inc. March 14, 2008 [ARI TO INSERT REPORT WITH FINAL RFP BEFORE DISTRIBUTION TO PROPOSERS] FINAL 12/28/12 D-1 APPENDIX D RWQCP SITE INFORMATION, RWQCP ENERGY NEEDS Figure 1: RWQCP Long Range Facilities Plan Recommended Long Term Footprint Figure 2: RWQCP Long Range Facility Plan (LRFP) Recommended Long Term Footprint (0.52 acres) Figure 3: RWQCP Site Plan showing 1.1 acre-Footprint (after demolition of Incinerator and Air Pollution Control Equipment) Table 1: Palo Alto RWQCP Energy Use: 2004 – 2011 FINAL 12/28/12 D-5 Table 1 Palo Alto RWQCP Energy Use 2004 – 2011 2004 2005 2006 2007 Electricity Use, kWh 17,554,400 17,424,400 17,814,400 17,786,400 Natural Gas Use (therms) 705,588 696,074 250,233 511,065 Landfill Gas Use (therms) --- --- --- --- 2008 2009 2010 2011 Electricity Use, kWh 17,597,800 15,156,107 15,168,209 16,310,202 Natural Gas Use (therms) 555,561 454,631 585,863 382,289 Landfill Gas Use (therms) 286,432 213,726 204,539 204,864 Reference: Palo Alto Regional Water Quality Control Plant Biosolids Facilities Plan Scope of Services, RFP for Professional Services, September 2012. FINAL 12/28/12 E-1 APPENDIX E QUANTITY AND CHARACTERISTICS OF CITY FOOD SCRAPS, YARD TRIMMINGS AND BIOSOLIDS Table 1: Palo Alto FY2012 Estimate of Yard Trimmings and Food Scraps (TPY) Table 2: Palo Alto Organic Waste Estimates Table 3: Palo Alto RWQCP Sludge Loadings: 2010 – 2050 Table 4: Palo Alto Biosolids Percent Volatile Solids Table 5: Palo Alto Biosolids Cake Metals FINAL 12/28/12 E-2 Table 1 Palo Alto FY2012 Estimate of Yard Trimmings and Food Scraps (TPY) Sourc.lTonl July-11 Augult-11 I Sept.mb .... -11 I Octob .... -11 I November-11 I Decemb .... -11 I J .. nuvy-12 I Februuy-12 I March-12 0, CDntrolled (Yard trirrmin s, leaves) NA 837 1,247 1,318 1,540 1,807 1,487 1,061 1,095 0, Crews Yard Trirrmin s, Leaves 10 , ontractors Yard rirrmin s) WI 0, Crews & Contractors Residentia l Yard Trimrrin s collected b GreenWaste 879 899 957 1036 1182 1328 1105 81 8 818 I To/a! (Yard Tnrrmi~s Leaves! I 989 I 1 fDO I 2204 I 2354 I 2722 I 3135 I 2592 I 1879 I 1913 Corrmercial (Yard Trimrrings & Food Scrapo) Comm .... cl .. IOr .. nici Picked u b GW taken to Ch .. rles St. 866 966 1,03 IResidentia l (Food Scrapsf4 I ITotal Compostable Materi .. ls I !:!..!!!2!E. 1 City Corirejled (yard tritrrrit>;ls) = City Crews, City CortractCfs, &Residential Curbside Conectiontal<en to Palo Alo COtlllostl1Q Facilty 'Tree trm-ners & Street sweepets 'ZetO Waste Opetation Plan June 2007, PQ. 16. Food Scraps: 5,820 Toos 1,0 6 9 2 1,024 'San JOSil CA Plot Food Scrap Collection Stue!,'. Roc¥de Plus Plots Surrmary Report. Dated: )'1(112. PQ. 2. Annual Estimate prC>lided frern Zero Waste Oper",.,ns PI,., June 2007 oojusted fCf 32% partic"atiOO rate Utl<= Utl<noYl<1 NA = NotApplcalle TPY -Tons PerYe", 01 954 April-12 I M .. y-12 I Jun.-12 nnu~~~~m .. t. NA 231 105 103 1032 1158 835 I 3564 I 23183 I 9 4 972 862 ". I 1,862 I I 36.691 I FINAL 12/28/12 E-3 Table 2 Palo Alto Organic Waste Estimates(1) Type of Feedstock High Range (TPY) Low Range (TPY) Likely (TPY) Commercial Organics(2) 12,000 11,000 11,500 Residential Expanded Organics(3) 3,500 1,100 2,300 Yard Trimmings(4) 12,300 12,300 12,300 City Sweeper and Tree Waste(5) 2,000 1,200 1,725 Subtotal 29,800 25,600 27,825 Total Estimate of Organic Waste for RFP Purposes(6) 30,000 25,000 27,500 1. Provided for informational purposes only. 2. In FY12, the City collected approximately 11,700 tpy of combined organics from the commercial sector, which included Food scraps, compostable paper and Yard Trimmings. 3. Based on the last waste characterization survey, the City estimates that there are approximately 5,800 tpy of residual organics remaining in the residential garbage, including Food Scraps, compostable paper, some Yard Trimmings and other compostables. The "Likely" estimate assumes approximately 40% recovery of the residual organics in the residential garbage (mainly food scraps). The "Low Range" estimate assumes approximately 20% recovery, and the "High Range" estimate assumes approximately 40% recovery. 4. Yard trimmings collected curbside by GreenWaste, which were approximately 12,300 tpy in FY12. 5. In Calendar Year 2011, the City delivered an additional 2,300 tpy of yard trimmings to SMaRT, consisting of sweeper loads (mostly leaves) and tree debris. The "Likely" estimate assumes approximately 75% of that amount will be Acceptable Feedstock, with the remainder consisting of dirty sweeper loads and large tree rounds. The "Low Range" estimate assumes slightly more than 50% will be Acceptable Feedstock, and the "High Range" estimate assumes closer to 90% will be Acceptable Feedstock. 6. The City's estimate of organic waste is expected to remain flat for the Term of the Contract. Although population will increase, the City assumes that Yard Trimmings will decline with conservation landscaping and Food Scraps will decline with food rescue programs. FINAL 12/28/12 E-4 Table 3 Palo Alto RWQCP Sludge Loadings (2010 – 2050) 2010 2015 2020 2025 2030 2035 2040 2045 2050 Average dry weather flow MGD 21.9 24.2 25.4 26.4 27.8 28.8 29.8 30.7 31.7 Average Annual Flow Flow MGD 23.2 25.7 27.0 28.0 29.5 30.5 31.6 32.6 33.6 Dry solids to process DTPD 20.8 23 24.1 25.0 26.3 27.2 28.1 29.0 29.9 Wet Weight at 26% solids (Note 1) WTPD 80.0 88.5 92.7 96.2 101.2 104.6 108.1 111.5 115.0 Wet Weight at 26% solids (Note 1) WTPY 29,200 32,288 33,833 35,096 36,921 38,185 39,448 40,712 41,975 Undewatered at 3.3% solids (Note 2) GPD 148,188 163,862 171,699 178,111 187,372 193,784 200,196 206,608 213,200 Undewatered at 3.3% solids (Note 2) MGPY 54.09 59.81 62.67 65.01 68.39 70.73 73.07 75.41 77.75 Max Month Flow Flow MGD 24.5 29.2 30.7 31.9 33.6 34.7 35.9 37.1 38.3 Dry solids to process DTPD 22 26 27 28 30 31 32 33 34 Wet Weight at 26% solids (Note 1) WTPD 84.6 100.0 103.8 107.7 115.4 119.2 123.1 126.9 130.8 Wet Weight at 26% solids (Note 1) WTPY 30,885 36,500 37,904 39,308 42,115 43,519 44,923 46,327 47,731 Undewatered at 3.3% solids (Note 2) GPD 156,737 185,235 192,359 199,484 213,733 220,857 227,982 235,106 242,230 Undewatered at 3.3% solids (Note 2) MGPY 57.21 67.61 70.21 72.81 78.01 80.61 83.21 85.81 88.41 Reference: Palo Alto Regional Water Quality Control Plant Biosolids Facilities Plan Scope of Services, section 2.2 page 5, RFP for Professional Services, September 2012 Note 1. Calculated by ARI. Assumes 26% solids in dewatered sludge cake. Note 2. Calculated by ARI. Assumes 3.3% solids in liquid sludge and sludge specific gravity of 1.02. Note 3. All quantities in this table exclude FOG and scum. FINAL 12/28/12 E-6 Table 4, continued Palo Alto Biosolids Percent Volatile Solids Palo Alto RWQCP -LAB Residual Analysis Analysis Sample Sample Sample Sample Dish 550'C 105'C Dish tare Solids Solid TS% Volatile Volatile Volatile Point Solids Avg TS% VS% Date Date mL +dish grams # wt, grams wt, grams wt, grams mg/L mg/L Avg. Solid mg/L Avg, mg/L 10/29 10/26 BLEND 10 11.5355 10.2810 1 1.3080 1.5186 1.2545 0.2641 26410 26215 0.2106 21060 20955 80% 10 11.4664 10.2134 2 1.3047 1.5132 1.2530 0.2602 26020 0.2085 20850 WAS 10 11.4644 10.2000 3 1.2766 1.2985 1.2644 0.0341 3410 3480 0.0219 2190 2240 64% 10 11.5028 10.2427 4 1.2727 1.2956 1.2601 0.0355 3550 0.0229 2290 P.S. 10 11.5410 10.2893 5 1.2635 1.2715 1.2517 0.0198 1980 2005 0.0080 800 850 42% 10 11.5212 10.2902 6 1.2423 1.2513 1.2310 0.0203 2030 0.0090 900 SCUM 6.0469 4.8094 7 1.3909 4.3730 1.2375 3.1355 ~ 66% 2.9821 95% 5.7808 4.5375 8 1.3948 4.2991 1.2433 3.0558 67% 2.9043 10/28 BLEND 10 11.3660 10.1169 9 1.3258 1.5888 1.2491 0.3397 33970 33305 0.2630 26300 26265 79% 10 11.4385 10.1703 10 1.3323 1.5946 1.2682 0.3264 32640 . 0.2623 26230 WAS 10 11.5480 10.3065 11 1.2555 1.2825 1.2415 0.0410 4100 4080 0.0270 2700 2685 66% 10 11.4995 10.2319 12 1.2815 1.3082 1.2676 0.0406 4060 0.0267 2670 P.S. 10 11.4244 10.1930 13 1.2488 1.3098 1.2314 0.0784 7840 7680 0.0610 6100 5995 78% 10 11.4685 10.2141 14 1.2707 1.3296 1.2544 0.0752 7520 0.0589 5890 SCUM 5.4600 4.2004 15 1.3897 3.7412 1.2596 2.4816 59% 59% 2.3515 95% 6.1427 4.9097 16 1.3974 4.1196 1.2330 2.8866 59% 2.7222 FINAL 12/28/12 E-7 Table 5 Palo Alto Biosolids Cake Metals PALO ALTO REGIONAL WATER QUALITY CONTROL PLANT Lab Analysis of Sludge Cake 2011 Sample Source: Sample type: Testing laboratory: Testing Parameters: Testing Methods: Testing Instrument: Analyte As MDL(UQ/KQ)" 0.058 RL(mg/Kgj' 0.25 Date Cake from Belt Press feeding into sludge feed screw Composite 24hours City of Palo Alto Laboratory B. Total Solids -% b. Metals -mg/Kg, Wet Wt. a. EPA 3051 -Microwave Digestion for As, Be, Cd, Cr, Cu, Ni, & Pb b. EPA 245.1 -Hg in Solid Waste ( Cold Vapor) c. EPA 200.8 -Trace Elements in Waters and Wastes by ICP-MS ICp·MS Be Cd C, Cu NI Pb Hg 0.035 0.04 0.058 0.035 0.062 0.024 0.02 0.012 0.25 0.62 0.62 0.62 0.25 0.02 1125/2011 ONQ 0.18 0.Q25 0.84 4.3 90.1 19.6 5.5 0.122 2124/2011 0.28 0.Q18 0.95 4.2 84.2 4.1 5.7 0.118 3/28/2011 0.37 0.026 0.98 6.8 75.1 6.2 5.1 0.132 4/4/2011 0.25 0.022 0.90 4.3 75.2 16.9 4.9 0.154 5/5/2011 0.37 0.019 0.97 3.3 87.1 100.0 5.5 0.122 6/27/2011 0.28 0.021 0.88 · 3.5 85.3 27 .8 4.9 0.180 7/10/2011 0.61 0.024 0.78 3.7 93.7 11.1 4.3 0.130 8121/2011 0.42 0.012 0.81 3.0 81.8 2.8 4.5 0.128 9/1212011 0.49 0.028 0.86 3.2 88.0 3.2 5.3 0.180 10/2/2011 0.56 0.026 0.73 3.3 82.1 3.5 4.8 0.093 1116/2011 0.51 0.021 0.80 3.7 79.8 3.5 4.4 0.124 12/11/2011 0.46 0.020 0.69 2.9 78.0 3.4 4.2 0.104 AVE 0.40 0.022 0.85 3.9 83.4 16.8 4.9 0.132 "Calculated MOL, RL. DNQ = Estimated result, value detected above MOL and below RL %Solids 0.1 28.3 27.4 26.1 26.5 26.2 27.9 26.9 25.0 28.8 26.8 \ 23.4 26.0 26.6 FINAL 12/28/12 F-1-1 APPENDIX F-1 E/C FACILITY AND EXPORT REQUIREMENTS This Appendix establishes the scope of services and design requirements for the project, and applies to both the E/C Facility and Export, unless specific requirements are outlined for the E/C Facility or Export. General Export Description For Export, the Contractor will be responsible for transporting and managing Acceptable Feedstock. The City will dewater Biosolids, provide handling, storage and loading facilities for dewatered Biosolids and will load the Contractor’s vehicles. Liquid Biosolids will not be exported. For Food Scraps and Yard Trimmings, the City will deliver these feedstocks to a Contractor transfer, processing or other facility located no more than 18 miles from City Hall. The Contractor will be responsible for transport and management of these Acceptable Feedstocks delivered by the City. For Export to facilities that produce a compost product, the compost must meet CalRecycle Compost Standards. Compost produced from Biosolids must meet US EPA Exceptional Quality Standards for metals and Class A requirements for pathogen reduction. Export shall not include export to conventional waste-to-energy or incineration systems. General E/C Facility Description The E/C Facility shall utilize Anaerobic Digestion, Gasification, or a combination of these technologies, to process Acceptable Feedstock into marketable products (fuel, electricity, compost or other marketable products) to achieve significant diversion from landfill disposal. The E/C Facility shall include any necessary preprocessing to remove and recover recyclables and other materials and to prepare the Acceptable Feedstock for conversion, and/or back-end processing and recovery of recyclables, marketable products and energy. The E/C Facility can include any type of energy production (e.g., electricity, gas, fuel), except that biogas shall not be injected into the City's natural gas distribution system, and if a fuel is produced it must be exported for sale. To the extent practical, the E/C Facility shall include the beneficial use of landfill gas generated at the City Landfill. The E/C Facility shall have a Rated Capacity sufficient to handle the Maximum Annual Delivery Threshold of the Acceptable Feedstock (based on an Availability Guarantee of no less than 85%, to be specified by the Proposer). The Maximum Annual Delivery Threshold is 15,500 tons per year of Food Scraps, 14,300 tons per year of Yard Trimmings, 32,288 tons per year of Biosolids dewatered to 26% solids (in 2015), and 226 tons per year of FOG and scum, subject to the specific terms and conditions as outlined in Section 5 of this RFP. For Anaerobic Digestion, the E/C Facility may digest Biosolids separately from Food Scraps and Yard Trimmings or may co-digest these materials. The digestate generated at the E/C Facility can be composted and cured on the Site or outside of the City. The E/C Facility shall make available to the City and its residents, at no charge, 1,000 tons per year of compost that meets CalRecycle Compost Standards and, for compost generated from FINAL 12/28/12 F-1-2 Biosolids, US EPA Exceptional Quality Standards for metals and Class A requirements for pathogen reduction. The E/C Facility shall have totally enclosed feedstock receiving, storage and processing areas including negative pressure on the receiving area with odor control of the collected air, and adequate odor control for all other areas of the E/C Facility, to ensure there are no objectionable odor impacts off the Site. As applicable, composting and curing areas shall be enclosed or otherwise have covers for such operations with collection of air and odor control of the collected air. There shall be no “outside” placement or storage of feedstock, products, or Residue. All truck movements and processing areas shall be located on the Site so as to minimize exposure and related impacts on the surrounding area. Equipment shall be located in enclosed buildings or structures with control for noise mitigation. The E/C Facility design and operation shall ensure that noise levels conform to the City Comprehensive Plan, which currently limits noise level to 70 dB as a "normal level" and 70- 85 dB as a "conditionally acceptable" level for an industrially-zoned area. The E/C Facility shall be designed to minimize consumptive water use using recycled water to the extent possible. The E/C Facility shall be designed to minimize process wastewater discharge (with a goal of zero discharge). To the extent possible, process wastewater shall be reused within the E/C Facility to reduce consumptive water needs. City sewer limits shall be met for any sewer discharge. The E/C Facility shall include stormwater collection and control for surface water run-off from buildings, impervious surfaces and other, disturbed areas. Clean stormwater can be directed to the City's stormwater collection system with discharge of any contaminated (or potentially contaminated) stormwater to the sanitary sewer, or stormwater can be contained in basins/ponds designed for on-site treatment and control of stormwater. Catch basins shall include oil and grease traps and allow for sediment collection. The E/C Facility shall be designed, at a minimum, for a 30-year operating life. It shall include redundant design features, as appropriate, to meet the proposed annual availability guarantee and to minimize the need for emergency management of Acceptable Feedstock. It shall include adequate storage of incoming feedstock and outgoing products to meet feedstock delivery schedules and product shipments to markets, and to provide for efficient operation. The E/C Facility shall include a public education center and necessary administrative office areas, laboratories and maintenance facilities, as further outlined herein. The public education center shall include a conference room or classroom setting to meet with small groups of visitors, and shall be equipped with seats, tables, audio visual equipment, educational videos, and scale models of the technology to facilitate tours and informational meetings with such groups. Buildings shall be designed to meet at least minimum LEED certification requirements, as appropriate. The E/C Facility shall be arranged on the Site to minimize aesthetic, visual, noise, odor and lighting impacts on surrounding land users, including effective use of buffer areas. For the RWQCP Site and for the Landfill Site adjacent to the RWQCP, the E/C Facility (including its architectural treatment) shall be designed to be compatible with existing buildings and structures at the RWQCP. For the Landfill Site, for all areas except that adjacent to the RWQCP, the E/C Facility (including its architectural and visual treatment) shall be designed FINAL 12/28/12 F-1-3 to be compatible with a park setting, with landscaping and buffers to minimize visual impacts. Design of buffer areas shall take into account measures to mitigate noise, lighting, potential odors and visual impacts, including the use of landscaping and/or vegetated berms. The E/C Facility shall have totally enclosed feedstock receiving, storage and processing areas with no outside placement or storage of feedstock, products, or Residue, to mitigate potential impacts including reducing aviation hazards associated with the Palo Alto Airport, located directly north of the RWQCP. For the Landfill Site, design of the E/C Facility should minimize use of site space and must be integrated with plans for Landfill capping as well as consideration of minimizing impacts on Byxbee Park. Such integration should consider terracing of the Landfill Site to minimize the height of any headwall needed for Landfill integration. The Contractor will be responsible for design and construction of foundations, as well as providing for routing of on-site utilities, stormwater management, roads and other necessary Site infrastructure and ensuring that these needs are satisfied in a manner to protect the integrity of the Landfill cap. The E/C Facility shall include all elements necessary to receive, store, recycle, process, and convert Acceptable Feedstock to marketable products and store products prior to shipping. In general, these elements include:  an access road to the Site, which may share existing Landfill and RWQCP roadways, as applicable;  a weigh station;  an enclosed receiving building and storage facilities for Acceptable Feedstock;  transfer facilities for Unacceptable Feedstock, Bypassed Feedstock, Unprocessible Feedstock, Residue, and products;  pre-conversion feedstock recycling and processing facilities (as applicable);  a minimum of two independent conversion process trains (Gasification or Anaerobic Digestion), or other methods to provide adequate redundancy of processing equipment for purposes of meeting the annual throughput requirements and reducing the frequency and extent of Bypassed Feedstock;  synthesis gas, biogas and landfill gas cleaning systems (as applicable);  post-conversion composting, curing, product screening, and product recovery facilities (if applicable);  enclosed product storage area(s);  heat recovery and power generating equipment (if applicable);  fuel production and storage facilities (if applicable);  enclosed Residue processing and Residue recycling facilities (if applicable);  air pollution control (APC) equipment (if applicable);  stack (if applicable); FINAL 12/28/12 F-1-4  noise and odor control;  water use and wastewater reuse and control equipment;  electrical interconnection;  water service to the Facility;  interconnection of all necessary utilities;  instrumentation and controls;  a control room;  administrative offices;  public education center;  general facility features – buildings and grounds, utility, chemical and supplemental fuel handling;  stormwater collection and control of all surface water run-off from buildings, impervious surfaces and other disturbed areas, with catch basins that include oil and grease traps and allow for sediment collection, and discharge of clean stormwater to the City's stormwater system or sanitary sewer system (if contaminated)) or use of stormwater basins/ponds that are designed for on- site control of stormwater;  maintenance facilities;  laboratory facilities; and  all appurtenances and equipment thereto. General Design and Construction Standards for E/C Facility The E/C Facility shall be designed and constructed in accordance with Applicable Law, Good Industry Practice, Good and Accepted Construction Practice, and applicable design and construction codes and standards. Proposers shall take note of the local climatology and seismology and design the E/C Facility accordingly for anticipated conditions and in accordance with related codes and requirements. All materials and equipment shall be new and unused, be of heavy-duty construction and of quality suitable and commonly used for high availability, long-term service in utility applications. The E/C Facility shall be designed and constructed utilizing equipment and processes proven to be reliable in similar applications. The E/C Facility shall be designed and constructed for a minimum useful life of thirty (30) years. Applicable Codes and Standards The Contractor shall perform, or cause to be performed, all work in strict accordance with the latest applicable codes and standards including, but not limited to, the following (as applicable):  Air Moving and Conditioning Association (AMCA) FINAL 12/28/12 F-1-5  Aluminum Association (AA)  American Association of State Highway and Transportation Officials (AASHTO)  American Boiler Manufacturers Association (ABMA)  American Concrete Institute (ACI)  American Gear Manufacturer Association (AGMA)  American Institute of Steel Construction (AISC)  American Iron and Steel Institute (AISI)  American Institute of Timber Construction (AITC)  American National Standards Institute (ANSI)  American Petroleum Institute (API) for Storage Tanks  American Society of Mechanical Engineers (ASME), including, but not limited to: ‒ Power Boilers ‒ Material Specifications ‒ Non-Destructive Examination ‒ Pressure Vessels ‒ Welding  American Society for Testing and Materials (ASTM)  American Society for Heating, Refrigeration and Air Conditioning Engineers (ASHRAE)  American Wood Preservers Association (AWPA)  American Welding Society  American Water Works Association (AWWA)  Antifriction Bearing Manufacturers Association (AFBMA)  Applicable Federal, State and local laws and codes involving public safety, health and environmental agencies, under whose jurisdiction work is being performed  Commercial Standard for Industrial Aluminum and Galvanized Steel Chain Link Fencing  Concrete Reinforcing Steel Institute Handbook and Supplements (CRSI)  Conveyor Equipment Manufacturers Association (CEMA)  Crane Manufacturers Association of America (CMMA)  Cooling Tower Institute (CTI) FINAL 12/28/12 F-1-6  Environmental Protection Agency (EPA)  Factory Mutual Engineering Corporation (FM)  Federal Aeronautics Authority (FAA)  Heat Exchangers Institute (HEI)  Hydraulic Institute  Industrial Gas Cleaning Institute  Insulated Cable Engineer’s Association (ICEA)  Institute of Electrical and Electronics Engineers (IEEE)  Instrument Society of America (ISA)  International Mechanical Code (IMC)  International Plumbing Code (IPC)  International Standards Organization (ISO)  National Board of Fire Underwriters (NBFU)  National Bureau of Standards (NBS)  National Electrical Code (NEC)  National Fire Protection Association (NFPA)  National Electrical Manufacturers Association (NEMA)  National Electrical Safety Code (NESC)  Occupational Safety and Health Act (OSHA)  Portland Cement Association  Rubber Manufacturers Association  Sheet Metal and Air Conditioning Constructor’s National Association  Steel Structures Painting Council (SSPC)  Standard Building Code (SBC)  Thermal Insulation Manufacturers Association  Tubular Exchange Manufacturers Association  Underwriters Laboratory, Incorporated (UL)  California State Building Code, as amended and updated  City of Palo Alto Building Code, as amended and updated  Appropriate codes and standards specific to California. FINAL 12/28/12 F-1-7 E/C Facility Design Requirements Landscape Design Requirements Landscaping and vegetated berms shall be used to minimize the visual and aesthetic impacts of the E/C Facility. Trees, plantings and grasses native to the area shall be used. Architectural Design Requirements The architectural features of the E/C Facility shall blend in with the surrounding terrain and natural setting. The use of metal siding is not acceptable. Metal panels may be used with strategically placed glass, brick, concrete or precast concrete to give the E/C Facility an attractive appearance. If metal panels are proposed, they shall be rust resistant with proper treatment and maintenance to ensure a pleasing appearance at all times. All buildings must be designed to meet at least minimum LEED certification requirements to the extent possible. Site Design Requirements The Proposal shall be based on an E/C Facility located at the RWQCP Site and/or the Landfill Site described in Section 2 and presented in Appendices C and D. The Proposer shall arrange the E/C Facility on the Site to minimize noise, odor, lighting and visual impacts on surrounding land users. All roads within the boundary of the Site are to be paved with asphalt or concrete. The roads shall be capable of accommodating fire and other safety vehicles, delivery vehicles for feedstock and supplies, vehicles for removing Residue, products and recovered materials, maintenance vehicles and equipment, and all other vehicles that will have cause to be at the E/C Facility. All disturbed areas are to be covered with either pavement, crushed stone, or re-planted with native grasses. Paved parking shall be provided for employees and visitors. Spaces shall be provided to accommodate the maximum number of employees during an operating shift and at least five additional spaces for visitors, or more as required by applicable codes. The drainage system shall be designed to control all surface water run-off from buildings, impervious surfaces and other disturbed areas. Catch basins shall include oil and grease traps and allow for sediment collection. The E/C Facility shall have adequate security features, including a minimum six-foot- high architectural fence. Gates shall be lockable, and have an automatic closure feature. A permanent entrance sign, approved by the City and constructed of masonry materials with non-deteriorating letters, compatible with the architecture of the E/C Facility, shall be provided at the entrance to the Site. FINAL 12/28/12 F-1-8 Outdoor lights shall provide adequate lighting for safely operating and maintaining the Facility at nighttime. Any lighting shall be hooded and directed onto the project site. Weigh Station The E/C Facility shall be equipped with one automatic weighing station, suitable for weighing all types of vehicles that may deliver waste or other materials to or from the E/C Facility. A weigh station on the Site shall be properly located to avoid queuing of vehicles off- site. No queuing shall occur off the Landfill Site or RWQCP property. The weight station shall be used to record the quantity of feedstock delivered to the E/C Facility; Residue leaving the E/C Facility; Bypassed Feedstock, Unprocessible Feedstock and Unacceptable Feedstock unloaded at the Facility and reloaded for disposal, digestate if processed off site, and materials to be marketed. The weigh station shall consist of two (2) identical scales, each with a minimum weighing capacity of sixty (60) tons, or as otherwise appropriate for the E/C Facility proposed. If a scale house is constructed, it shall be designed with the same architectural treatment as other E/C Facility buildings and shall be equipped with lavatory facilities, communication systems, and all necessary equipment and facilities to fully support scale-house operations. All scales shall each have minimum platform dimensions of seventy (70) feet in length and twelve (12) feet in width, or as otherwise needed to fully accommodate all vehicles that access the E/C Facility. Each scale shall be equipped with a digital weight meter and integrated with a data processing system capable of listing: vehicle number; delivery date and time; gross, net and tare weights; and the daily total of the net weight. Feedstock Receiving The feedstock receiving area and storage area shall be in a totally enclosed building with roll-up doors at a truck entrance and exit. A single door for the tipping floor entrance and exit is acceptable if Proposers can demonstrate that truck traffic flow is not impeded. In this instance, the Proposal layout drawings shall clearly indicate the flow of truck traffic within the feedstock receiving building, and at the building entrance/exit. To accommodate weekends and holidays, the E/C Facility shall have feedstock receiving and storage capacity for at least three days of delivery at the Rated Capacity. There shall be adequate space provided to tip and inspect loads, as required. Also, the tipping area shall have an adequate space sufficient in size for unloading of multiple trucks thereby minimizing queuing of trucks waiting to unload. The feedstock receiving area shall be a clear span, with no interior columns and have a sufficient clearance above the tip floor to the lowest obstruction to support FINAL 12/28/12 F-1-9 unloading of all types of feedstock delivery vehicles. Bollards, concrete or other protective barriers shall be used to protect all walls, columns and roll-up doors from potential damage caused by feedstock delivery trucks. The entire tipping floor area surface shall be protected with an abrasion resistant coating (or an alternative treatment can be provided if equivalent performance can be demonstrated) to prevent damage due to vehicle traffic and front-end loader operation. The feedstock receiving and storage area shall be kept under a negative pressure by continuously withdrawing air from the building. All exhaust air from the receiving and storage buildings shall be subjected to continuous odor control. Feedstock Storage Feedstock storage volume shall be sized for a minimum storage of three (3) times the Rated Capacity of the E/C Facility, all without limiting the number of truck bays available for dumping feedstock (or clearance for each truck-unloading bay), and without restricting access to the feed conveyors. An adequate area of the tipping floor shall be accessible to transfer feedstock out of storage (Bypassed Feedstock). If feedstock storage is provided on a tipping floor, the exterior “push walls” shall be concrete and shall be at least as high as the maximum pile height. If feedstock storage is provided in a pit and the pit is constructed below the groundwater table, it shall be made watertight and leak proof to prevent groundwater infiltration and/or leaks. Any feedstock delivery system supplied shall be fitted with a mechanism for measuring the weight of feedstock delivered to recycling, pre-processing and conversion (Gasification or Anaerobic Digestion) systems during tests. Materials Recycling and Pre-Conversion Waste Processing The Contractor may furnish a materials recycling and pre-conversion processing system for material recovery and/or to produce a prepared feedstock for gasification and/or digestion. There shall be a minimum of two independent material processing trains each of sufficient capacity to support the continuous or batch operation of the Gasification or Anaerobic Digestion process, or other methods shall be incorporated to provide adequate redundancy for purposes of meeting the annual throughput requirements and reducing the frequency and extent of Bypassed Feedstock. All material recycling and pre-processing equipment and storage shall be within a totally enclosed building. Any mechanical shredders used in the material processing trains shall be housed in an isolated concrete structure with an explosion relief vent. Explosion and fire detection systems shall be provided, and interlocked with a fire suppression system. Any conveyor transporting feedstock outside a building shall be fully enclosed with a fixed metal cover. FINAL 12/28/12 F-1-10 All feedstocks from recycling and pre-conversion waste processing shall be stored in a fully enclosed building. The materials recycling and pre-conversion waste processing building or area shall be kept under a negative pressure by continuously withdrawing air. All exhaust ventilation air shall be subjected to dust and odor control. The specific intent is that no air which comes in contact with feedstock during recycling or pre-conversion feedstock processing can be released to the ambient environment, without that air first having been subjected to effective controls for odor and dust. This request can be met by controlling all air in the recycling and pre-conversion waste processing building or, if effective odor and dust control can be provided, by aspirating and treating the air from the immediate vicinity of the processing equipment. If a wet recycling and wet pre-conversion waste processing system is used, all material processing equipment and storage shall be protected from freezing, as necessary. All feedstocks shall be stored in fully enclosed vessels, or equivalent, which also are protected, as necessary, from freezing. The vessels shall be fitted with pressure relief valves suitable for the design rating of the vessels. Conversion Processes (Gasification and Anaerobic Digestion) Gasification and/or Anaerobic Digestion processes supplied, and their associated appurtenances, shall be designed, furnished and installed to provide a minimum of two (2) units, which shall be similar to the design of units previously built by the Contractor (or its licensor), or other methods shall be incorporated to provide adequate redundancy for purposes of meeting the annual throughput requirements and reducing the frequency and extent of Bypassed Feedstock. The combination of the process units shall support an E/C Facility which shall have the capability by design to operate at an annual rate of no less than eighty-five percent (85%) of its Rated Capacity. The proposed units (two or more, as applicable), and ancillary systems must all be identical. Gasifier Units For purposes of this procurement, a solid waste Gasification system is defined as an enclosed thermal device that limits oxygen to prevent full oxidation; vitrifies, slags or produces a non-hazardous char or ash from the inorganic feed materials; produces a synthesis gas from feed materials that is used to produce renewable electricity and/or fuels; is capable of synthesis gas cleaning prior to use; and is capable of being tested or equipped with monitoring devices to ensure the quality of the synthesis gas. Any gasifier units supplied must meet this definition. The gasifier units may be provided for operation without the introduction of air or oxygen into the system (i.e., pyrolytic) or with the controlled introduction of limited amounts of air or oxygen (i.e., sub-stoichiometric). The gasifier units shall include all equipment and appurtenances for introduction of the feedstock into each unit. As applicable, each unit shall also include, but shall FINAL 12/28/12 F-1-11 not be limited to, any auxiliary burner systems, reactor vessels and refractory, solid products and residuals collection systems, and synthesis gas quench and cleanup systems. If supplied, synthesis gas cleanup systems shall include removal of particulate matter, sulfur, chlorine and volatile metals, as applicable. If oxygen is used in the gasifier, an on-site oxygen plant shall be furnished to provide the necessary purity of oxygen to the gasifier units. A minimum of three (3) days of on-site oxygen storage shall be provided, unless the Proposer can demonstrate the viability of lesser storage. Redundancy shall be provided for oxygen plant equipment requiring long lead-time for replacement parts. Anaerobic Digestion Units Anaerobic Digestion units shall include all equipment and appurtenances for introduction of feedstocks into each unit. As applicable, each unit shall also include, but shall not be limited to, any heating systems, reactor vessels or enclosures, solid products and residuals removal systems, and biogas cleanup systems. Biogas cleanup systems shall include, as applicable, sulfur removal and siloxane removal. Post-Conversion Product Recovery Facilities The product and recovered materials processing systems shall be designed for the maximum quantity produced by the E/C Facility operating at its Rated Capacity. Product and recovered materials storage shall be enclosed and shall provide for anticipated schedules for off-site shipment or distribution schedules and the Rated Capacity of the E/C Facility. At a minimum, three days storage capacity shall be provided. Should the products or recovered materials be dusty or odorous, controls shall be supplied for prevention of odor and dust. Feedwater System Any necessary process feedwater system shall be sized for the Rated Capacity of the E/C Facility, and include pumps, heaters, feedwater treatment systems, as determined necessary by the Contractor for optimal operation (e.g., minimization of water use, maximization of thermal efficiency). Any feedwater system pumps shall include a minimum of two (2) each with a pumping capacity equal to the greater of the continuous design rated flow rate required to satisfy the system requirements. If a boiler feedwater treatment system shall be provided to treat make-up water to the feedwater system, the boiler feedwater treatment system shall satisfy, at a minimum, American Boiler Manufacturers’ Association (ABMA) boiler water quality standards for the design steam conditions. FINAL 12/28/12 F-1-12 Any feedwater treatment system shall include a treated make-up water storage tank. Wastewater from the treatment system shall be reused in the E/C Facility to the maximum extent possible, and any remaining wastewater may be evaporated or sewered if it meets sewer discharge limits. Power Generating Processes If electricity is a product of the E/C Facility, power generating processes (including all ancillary equipment) shall be fully integrated with the supplied technology and with the electrical distribution and export systems at the E/C Facility. All equipment must meet City of Palo Alto utility interconnection requirements. Residue Handling Systems The Residue removal, processing and storage systems shall be enclosed in a building and shall be designed for the maximum Residue quantity resulting from feedstock processing at the Rated Capacity of the E/C Facility. Residue storage shall be provided for not less than three (3) days of operation at the Rated Capacity. The floor surface of the storage bunkers and the floor area extending thirty (30) feet from such bunkers in the residue storage building shall be protected with an abrasion resistant coating (or an alternative treatment can be provided if equivalent performance can be demonstrated). If the Residue is capable of generating dust, the building shall be kept under negative pressure with the air filtered by a baghouse prior to being discharged to the atmosphere at or above the residue building roof elevation. If the Residue is odorous or dusty, odor and dust control shall be provided. The combination of any fly ash with other process Residue is allowed in accordance with Federal guidance, but is not required. If fly ash is generated by air pollution control systems, removal conveyors may be supplied to convey fly ash from any boiler hoppers, dry scrubbers, and/or baghouses, and to combine it with any other residues prior to discharge into Residue storage. Any outdoor conveyors shall be enclosed. If applicable, the fly ash removal system shall also be designed and sized to collect, handle, and store any lime and collected salts discharged from the dry acid gas scrubbing or dry injection and baghouse collection equipment. The Contractor shall select the type of conveying system. The equipment and facilities related to gasification technologies for handling and storage of Residue shall, at a minimum, comply with the requirements of the New Source Performance Standard (NSPS) Subpart Eb, restricting fugitive emissions of Residue dust. The Residue removal and storage areas shall have an adequate number of floor drains with floors sloped to the drains, and sufficient hoses for wash down to maintain clean conditions and prevent dust from leaving the area. Drained water shall be reused in the E/C Facility. FINAL 12/28/12 F-1-13 Air Pollution Control The Contractor shall meet the environmental design and performance specifications as required by all permits to construct and operate the E/C Facility. For Proposal purposes, the requirements defined below shall be the basis for design and performance for those technologies that combust synthesis gas or biogas for the production of electricity. For the technologies which do not pre-clean synthesis gas, the air pollution control equipment shall include but not be limited to acid gas scrubbing (wet, dry or semi- dry), and wet scrubbers and/or baghouses for particulate control. In all cases where synthesis gas or biogas is used on site to generate electricity, NOx control is required. The NOx control system shall be either of the Selective Non-Catalytic Reduction (SNCR) type or the Selective Catalytic Reduction (SCR) type, as applicable. The NSPS Subpart Eb requires use of carbon injection for all gasification technologies, however, if the technology supplier can produce a waiver from U.S. EPA based on an alternate technology that can demonstrate equivalency, such waiver shall be deemed an acceptable alternative to a carbon injection system. A complete air pollution control system shall be furnished for each synthesis gas or biogas power generation train (i.e., thermal oxidizer/waste heat boiler, reciprocating internal combustion engine, or combustion turbine/duct burner, as applicable). The air pollution control system for any gasification technology shall, at a minimum, be capable of meeting the NSPS Subpart Eb requirements, as well as applicable State and local requirements. Stacks For the technologies that use the biogas or syngas on site to generate electricity, one or more main stacks shall be supplied. Air pollution control bypass or dump stacks may be technically necessary for safe operation of certain gasifier units or biological units, in which case they shall be supplied. The Contractor shall design, furnish, and install one or more main stacks, as necessary. A separate flue shall be supplied for each synthesis gas or biogas combustion train (i.e., thermal oxidizer/waste heat boiler, reciprocating internal combustion engine, or combustion turbine/duct burner, as applicable). The stack shall: (a) be designed in compliance with Good Engineering Practice as defined in 40 CFR 51.1(ii); and (b) be grounded. Sampling locations shall be provided as required by the U.S. EPA and State and local requirements. Permanent platforms and access to the sampling locations shall be provided. The stack(s) shall be designed with insulated flue walls to prevent condensation at all times, and shall be of corrosion resistant construction. The exterior of the stack shall match or complement the architectural treatment (including color) of the E/C Facility, as applicable. FINAL 12/28/12 F-1-14 As applicable, if air pollution control bypass or dump stacks are necessary for safe operation of a gasifier or biological unit, the operation of each individual bypass or dump stack shall be limited on an hourly basis as required by the U.S. EPA or State and/or local agencies, and monitoring systems shall be designed and provided to track the hours of operation of such stacks. For dump stacks that will handle combustible gases (i.e., synthesis gas from a gasifier unit or biogas from a biological unit), an automatically activated flare system is required to be included in such stack. Water Use and Wastewater Control Process make-up water and water for potable and sanitary uses will be supplied from the City water system. All process wastewater, including but not limited to, cooling tower blowdown, boiler blowdown, and washdown water, shall be used within the E/C Facility to the greatest extent possible. Condenser Systems If applicable, a steam turbine-generator shall have a water-cooled shell and tube condenser with shop-fabricated and shop-installed tubes and connections. It shall be designed in accordance with the HEI Standards and other applicable standards for the expected turbine exhaust flow. Two (2) condensate pumps shall be furnished with the condenser, and each pump shall be sized at 100 percent (100%) of the condensate flow. Redundant multi-stage air ejector systems or rotary vacuum pumps shall be supplied for removing O2, CO2, and other gases from the condenser during normal operation of the steam generating units. The Contractor shall provide one (1) or more bypass dump condensers of the shell and tube design. The unit shall be sized such that all the combustion/steam generation units can operate at the maximum design capacity during periods of complete turbine generator outage. The dump condenser and condenser drain tank shall be designed in accordance with ASME Boiler and Pressure Vessel Code and the HEI Standards for closed feedwater heaters. All condenser systems shall be designed to operate at the maximum continuous rating of the E/C Facility. As applicable, one (1) or more induced draft cooling towers shall be provided, including structure (installation on a concrete basin), stairways, fans, cooling water distribution system, drift eliminators, and fire protection piping. Timber members shall be redwood. The cooling tower shall be sized to meet the installed Rated Capacity of the E/C Facility system’s maximum cooling requirements. The cooling tower shall be designed in accordance with the National Design Specification for Wood Construction and the CTI standards for installation and operation in California. FINAL 12/28/12 F-1-15 Alternatively, stainless steel or poltruded shape fiberglass reinforced plastic cooling towers are acceptable. Three (3) circulating water pumps shall be supplied with the cooling tower, and each pump shall be sized at 50 percent (50%) of the circulating water flow rate. As an option, two (2) pumps at 100 percent (100%) capacity may be supplied. The design and location of the cooling towers shall not obstruct the vision of drivers, or negatively impact roads or sidewalks during operation. The free chlorine levels in the cooling tower sump shall be continuously monitored and maintained at appropriate concentrations. The cooling tower blowdown shall be directed to the E/C Facility water recycle system. An air cooled condenser system may be provided, in lieu of a traditional condenser and cooling tower arrangement. Such an air cooled condenser system shall include fans and all appurtenances not limited to structural support, heat exchangers, drain pumps, and interconnection with the cooling water supply system. The air cooled condenser system shall be sized to meet the installed Rated Capacity of the E/C Facility system’s maximum cooling requirements and the local climatological conditions. Plant Electrical The plant electrical systems shall be arranged for appropriate reliability and redundancy. The E/C Facility shall include, as necessary, medium voltage power distribution; low voltage power distribution; lighting; grounding; raceway and cable; and control, security and communication systems. The sizing of the emergency power supply system must consider the ability to safely shut down the system and consume all feedstock being processed, as well as fight a fire, at a minimum, for three (3) hours. The Proposer shall define the equipment in the system. Critical power requirements shall be met by batteries and/or battery backup uninterruptable AC power systems. Adequate protection for generator, transformers and all electrical equipment shall be provided in accordance with IEEE guidelines. If applicable, the main distribution switchgear shall be equipped with fully automatic controls for synchronizing with the local utility and for overload protection. In the case of E/C Facilities that supply electricity as a product, the system shall be designed to allow for the following four conditions: 1) buy power from the local utility in the event of a steam turbine-generator and/or engine failure so that processing of the waste can be maintained; 2) run the steam turbine-generator and/or engine to supply plant parasitic power to the E/C Facility in the event the local utility experiences a power failure; 3) allow for a smooth tie-in after the local utility has restored power; and 4) run the steam turbine-generator and/or engine to supply power to the E/C Facility and sell the excess power to the local utility. FINAL 12/28/12 F-1-16 Automatic metering and recording of voltage, watts, VARS, power factor, and hertz shall be provided for conditions 1), 2), and 4) above, separately and for measuring usage at the Facility, and all the above shall be integrated with the distributed control system (“DCS”). The DCS shall record the sequence of events which occur during a steam turbine trip. The equipment furnished shall meet NEMA Standards and the City utility’s requirements. The system shall consist of a: step-up transformer(s) , including applicable fire protection and spill containment conditions for oil-filled transformers, as applicable, station service (step-down) transformer, main switchgear, emergency power system, uninterruptible power supply for the DCS, and all auxiliary equipment. The exterior switchyard shall have a separate security fence and locked entrance gate. Electrical Interconnection If applicable, the Contractor shall provide a new electrical transmission line from the E/C Facility exterior switchyard to the City Substation or transmission line. The final requirements for the transmission line, the tie-in at the City substation and/or transmission line, and the protective devices at the E/C Facility switchyard shall be determined by the City utility. The Contractor shall be responsible for the cost of the interconnection. The Contractor’s E/C Facility Development Cost Estimate shall include, as applicable, an allowance of $100,000 for the interconnection equipment to be installed between the E/C Facility switchyard step-up transformers and the local utility substation or transmission line. Process Control and Monitoring System A distributed control system (DCS) complete with field hardware shall be furnished for the E/C Facility. The DCS and field hardware shall be industrial grade and of the same manufacture, class, and performance as are used for electric power utility station installations appropriate for the use intended. The installation shall be to industrial standards, as is found in electric power utility station services. The DCS shall: provide for centralized control and monitoring of the feedstock processing systems and energy production equipment; monitor compliance with environmental and safety regulations and the Performance Guarantees; and provide centralized monitoring of other major E/C Facility unit processes. The system shall include at least three (3) high-resolution color monitors which are interchangeable in function; i.e., any display may be called up on any monitor. At least two (2) operator keyboards and one (1) engineering keyboard shall be included. Each system shall provide for a capacity of at least 120 percent (120%) of the required I/O points. The system shall support monitor trend displays, with a selectable time base of up to one month, for both historical and current trends. Group, detail, single point, alarm summary, diagnostic, and like displays as well as custom graphic displays shall be furnished. The alarm display shall automatically FINAL 12/28/12 F-1-17 dump to a preselected alternative position if there is a failure of the selected alarm display. The DCS system shall include at least two (2) printers, and a video copier capable of recording any CRT display. Alarm, facility equipment status, and operator entry logging shall be automatic. The system shall support the required daily operations listing functions for compliance with environmental, safety and performance parameters. The DCS shall include historical data storage and data processing capabilities and system software to provide the daily and monthly compliance and performance reporting. The DCS storage shall be sufficient to contain at least 30 days of data storage. The report printing shall be automatic with additional capability to print prior and current day’s data on demand. An uninterruptible power supply shall be furnished which has sufficient capacity to allow safe shutdown of the Facility. At least one (1) spare DC power supply shall be included. Health and safety systems shall be hardwired and independent of the distributed control system. The control, measurement, recording, and monitoring functions for the E/C Facility shall include, but shall not be limited to, the following: 1. All incoming feedstock and all Residue, Bypassed Feedstock, Unprocessible Feedstock, Unacceptable Feedstock, digestate, and recovered materials and products leaving the E/C Facility (these functions need not be tied into the DCS system). 2. Feedstocks fed to the pre-processing system, for Gasification and/or Anaerobic Digestion processes, and post-processing facilities. 3. If applicable, the steam mass flow rate, the pressure and temperature of feedwater, steam generation, and blowdown for each boiler, and totals for the E/C Facility. 4. Continuous emissions monitoring, measuring, and recording of stack gas in accordance with New Source Performance Standards (40 CFR 60, Subpart Eb) and other applicable requirements. 5. Calendar year hours of operation of each bypass or dump stack. 6. Electric power production, in-plant use; steam production and in-plant use; and feedwater rate. 7. As applicable, boiler drum level. 8. Oil or other auxiliary fuels used in the plant. 9. A time reference on each recording for data reduction. FINAL 12/28/12 F-1-18 All measurement reporting and recording shall be made in English and/or Metric engineering units in accordance with common practice in California and Good Industry Practice. Surveillance shall be provided by remote control, color, closed-circuit television of areas of the tipping floor, entrance gate area, and other areas selected by the Contractor (if any). The closed-circuit television controls shall include: a) Zoom b) Automatic iris control c) Pan and tilt with scanning d) Sun shields and weather proofing where required Continuous Emissions Monitoring System For Gasification technologies that combust the synthesis gas to generate electricity, the E/C Facility shall include a Continuous Emissions Monitoring System (CEMS) to monitor, measure and record flue gas conditions in accordance with New Source Performance Standards (40 CFR 60, Subpart Eb) and to meet other applicable Federal, State and local air regulatory requirements. The specific continuous monitoring data to be made available shall follow all requirements of the California Air Resources Board/Bay Area Air Quality Management District as well as the following NSPS Subpart Eb requirements:  Most Recent Compliance Data  Sulfur Dioxide, 24-hour average geometric mean concentration and the removal efficiency.  Nitrogen Oxides, 24-hour daily arithmetic average concentration  Opacity, 6-minute average percentage values, daily summary  Carbon Monoxide, 4-hour block arithmetic average  Flue Gas Temperature at the fabric filter inlet (as applicable), 4-hour block arithmetic average  Historical Compliance Summaries  For each continuously monitored parameter above, an historical compliance summary, with content and format as approved by EPA and State and local agencies. The format, graphical or tabular, shall clearly convey the number, dates, and magnitudes of any exceedances of applicable units. FINAL 12/28/12 F-1-19  Equipment Malfunction Summaries  Summaries of time periods during which each continuous monitoring system was malfunctioning while the E/C Facility was operational, as “operational” is defined by applicable regulations.  Quarterly cumulative summaries of such malfunction time. In regard to Anaerobic Digestion technologies, those technologies that combust biogas to generate electricity shall include a CEMS to monitor, measure and record flue gas conditions to meet applicable Federal, State and local air regulatory requirements. As appropriate, including for purposes of documenting greenhouse gas emissions and/or for purposes of compliance with the California Air Resources Board's mandatory greenhouse gas reporting regulation, which appears at sections 95100- 95133 of Title 17, California Code of Regulations, E/C Facilities, either anaerobic digestion or gasification facilities, shall include CEMS to monitor, measure and record greenhouse gas emissions. Data shall be reported monthly to the Bay Area Air Quality Management District. Telemetering for real time reporting is not required. Administrative, Public Education, and Support Facilities The E/C Facility design shall include an administration building, maintenance shop and spare parts storage area, and a laboratory. The administrative building shall include office areas for the Contractor, locker rooms for operational and maintenance personnel, and a public education center. The public education center shall include a conference room or classroom setting to meet with small groups of visitors, and shall be equipped with seats, tables, audio visual equipment, educational videos, and scale models of the technology to facilitate tours and informational meetings with such groups. The spare parts storage area shall be adequately sized to store all of the spare parts and supplies required to operate and maintain the E/C Facility. Fire Prevention The E/C Facility design shall include a fire protection system which shall include detectors, remote fire alarms, and suppression systems in accordance with all applicable codes including, but not limited to: insurance underwriters’ standards; the National Fire Protection Association (NFPA); State, County, and City, as well as any other appropriate local fire regulations; and good industry practice for a highly protected risk facility. Each Contractor shall comply with all insurance requirements applicable to the design, construction, and operation of the E/C Facility. FINAL 12/28/12 F-1-20 Safety Requirements The E/C Facility design shall comply with all OSHA requirements. All chemical or fuel handling areas shall be designed with appropriate containment dikes. Safety showers shall be provided at chemical handling areas. American Disabilities Act The E/C Facility shall be designed and constructed to meet applicable requirements of the American Disabilities Act and State building codes. Environmental Design and Performance Requirements The Contractor shall, at a minimum, meet the environmental design and performance specifications as required by all permits and approvals required to construct and operate the E/C Facility. If not required by a permit or approval, the E/C Facility shall still, at a minimum, meet the requirements specified in Section 4. E/C Facility Construction Requirements General The Contractor shall perform the Construction Work in accordance with the Design Work and using Good and Accepted Construction Practice and shall have exclusive responsibility for providing all construction means, methods, techniques, sequences, start-up, and Acceptance Tests, and all procedures necessary and desirable for the correct, prompt and orderly conduct and completion of the Construction Work as required by the E/C Facility. Construction shall be scheduled and conducted, as practical, to minimize impacts and disruptions on existing operations at the RWQCP, Byxbee Park, and other surrounding land users. The Contractor's exclusive responsibility to provide all construction means shall include, but is not be limited to, providing the following construction requirements: temporary power, light and other utilities; temporary offices and construction trailers; a room for on-site, project review meetings; a furnished office with telephone and computer hook up for use by the City's on-site resident engineer; required design certifications; required approvals; field document control and filing system for the control of all submittals and project communications; quality control and testing; independent laboratory testing services; weather protection for stored materials; site cleanup and housekeeping; construction trade management; temporary parking; safety and first aid facilities; correction or compensation for defective work or equipment; equipment and materials storage areas; workshops and warehouses; temporary fire protection for the construction site; site security; potable water; telephone and portable two-way communication; subcontractor coordination and control; receipt and unloading of delivered materials and equipment; erection rigging; temporary supports, and coordination of all construction activities of the Contract. FINAL 12/28/12 F-1-21 The Contractor warrants to the City that materials and equipment incorporated in the E/C Facility will be new unless otherwise specified, and in conformance with the Contract documents. The Contractor shall fully cooperate with the City and its designated representatives to allow the City to monitor and review construction progress, design documents and any proposed changes to design. The Contractor shall apply Federal, State and local wage and hour laws to the extent required by Applicable Law. For purposes of its Proposal for an E/C Facility or Export, the Proposer should assume that prevailing wages will be required. The Contractor shall make a good faith effort to employ staff from the local and regional labor markets. Construction Work Monitoring, Testing and Observation The City shall have the right to monitor and observe progress of the Construction Work. During the progress of the Construction Work through the Acceptance Test and Acceptance of the E/C Facility, the Contractor shall allow the City and/or its designated representative(s) access to all sites for the purpose of observing the conduct of the work. During any such observation, the City and its designated representative(s) shall comply with all reasonable rules (safety and other) applicable to the construction sites. It is understood that the City's monitoring and inspection shall be of an observational and review nature and that the City and its representative(s) shall not have the authority to interfere with, halt or delay the Contractor's construction of the E/C Facility, except to ensure conformance with Design Work and to ensure that such construction does not represent a substitution of lesser quality. The Contractor shall provide the City monthly progress reports detailing Construction Work accomplished during the previous month. The monthly progress reports shall include a summary of accomplished work activities, a summary of next month's work activities, a list of submittals delivered for the report month, a list of submittals scheduled for the next month, and an updated project schedule which shall reflect any change in the Contractor's project schedule submitted the prior month. The monthly progress reports shall be submitted to the City for its information only. Acceptance of the monthly progress reports shall not bind the City in any manner or imply that the City approves the work to date, or agrees to any changes in schedule or extension of design or construction time. The Contractor shall provide on-site quality control and quality assurance services. The Contractor shall prepare and submit to the City a quality control and quality assurance plan detailing the actions which the Contractor shall take to control and demonstrate quality of construction. The quality control and quality assurance plan shall be submitted to the City prior to the start of construction. The quality control and quality assurance plan shall identify all shop and field testing to be performed FINAL 12/28/12 F-1-22 during construction and list all testing, along with properly certified, independent, testing laboratories or testing services that will perform the work. In accordance with the quality control and quality assurance plan, the Contractor shall maintain a file of and if requested, deliver to the City or cause the certified independent testing laboratories or testing services to send the City all required certificates of inspection, testing reports and all written testing documentation. The City shall reserve the right to conduct and pay for any on-site testing it deems necessary or desirable to verify that the Construction Work, including materials of construction, complies with the Design Work. The Contractor shall not be entitled to any delays in the construction schedule due to reconstruction activities resulting from failed quality control and quality assurance testing. During the construction period, the Contractor shall conduct project meetings at least on a monthly basis or on an as needed basis, depending on the nature of the schedule and Construction Work for the month. During the project meetings, discussions shall be held concerning all aspects of the construction. Monthly progress reports shall be prepared by the Contractor and submitted to the City at least five Business Days prior to each monthly meeting. The Contractor shall afford the City an opportunity to make final inspection and approve the Construction Work as having been completed. Final approval and acceptance of the Construction Work by the City or any rejection of the Construction Work or such items as are incomplete shall be made by the City in writing within thirty (30) Business Days from the date of receipt by the City of the above notification of completion. In the event the City neither accepts nor rejects the work as complete within a thirty-day (30) period after notification of completion by the Contractor, the work shall be deemed complete. Although the work may be deemed complete, acceptance of work by the City shall be conditioned upon successful completion of the Acceptance Test and satisfying other acceptance requirements. Correction of Construction Work Throughout the Term of the Contract, the Contractor at its sole cost and expense shall complete, repair, replace, restore, rebuild and otherwise make whole any Construction Work which does not conform with all requirements of the Contract. The City may elect by Change Order, at the Contractor's request, to accept Construction Work that does not comply with all requirements of the Contract. If a Change Order is executed for nonconforming Construction Work, the Contractor's obligations for the Acceptance Test or Acceptance provided for in the Contract are in no way altered. FINAL 12/28/12 F-1-23 The Contractor shall re-perform any professional Construction Work, for which it is responsible within the Contract, which fails to conform to the Good and Accepted Construction Practice, throughout the Term of the Contract. The Contractor shall request from all vendors, or subcontractors from which the Contractor procures machinery, equipment, or materials for the E/C Facility, warranties with respect to such machinery, equipment, and materials. The Contractor's responsibility with respect to such machinery, equipment, and materials obtained from vendors or subcontractors, shall not be limited in any way throughout the Term of the Contract. The Contractor shall have total liability, throughout the Term of the Contract, for nonconforming Design Work and nonconforming or defective Construction Work, equipment and materials, whether caused by error, omission, negligence or otherwise. Failure of any vendor, contractor or subcontractor selected by the Contractor, with or without concurrence by the City shall not excuse the Contractor from its Contract obligations or constitute an Uncontrollable Circumstance. Record Drawings and Documents Upon completion of construction of the E/C Facility, the Contractor shall provide the City a set of record drawings in print and on CD in an electronic format acceptable to the City to show the character and installation of all Construction Work. At a minimum, record drawings shall include those listed in the Final Design Submittal. As-built construction record drawings shall be submitted to the City no later than sixty (60) days following completion of all Construction Work. The Construction Work shall not be final and complete without the record drawings and all documents of record, including a Certificate of Completion from appropriate local authorities, being received by the City. Any modifications that are required to achieve Acceptance shall be fully documented by the drawings. Record drawings shall be exclusively for the use of the City and the Contractor and its contractors and subcontractors shall have no liability to any other party on account thereof. Design Document Review and Construction Review Procedures for E/C Facility General The City will conduct a review of Design Work to ensure conformance to Design Requirements and will review, monitor and inspect Construction Work to ensure conformance to Design Work and to ensure that such Construction Work does not represent a substitution of lesser quality. The reviews and inspections by the City shall not affect in any way the Contractor's responsibilities for compliance with all Contract requirements, nor shall it impose any FINAL 12/28/12 F-1-24 responsibility or liability on the City due to such review and inspection, or lack thereof. Design Review Design Review Intent In accordance with the terms and conditions of the Contract, the City will review the Design Work for consistency with Design Requirements and will provide input on selected issues, such as selection of finishes, architectural treatment, and landscaping. Input by the City to the design process shall be solicited by the Contractor as required, at monthly design progress meetings and at key stages in the design, considering the design submittal packages specified below. The City recognizes that the process will require that the Contractor and the City work cooperatively to assure timely design review. At a minimum, the City shall be afforded adequate opportunity for design review (at a minimum four weeks) at:  completion of the Preliminary Design Submittal; and  completion of Final Design Submittals. The City shall be afforded the opportunity for design review prior to any submittal to regulatory agencies. Design Submittal Protocol No later than 30 days following the execution of the Contract, the Contractor shall submit to the City a protocol for design submittals (Design Review Protocol). The Design Submittal Protocol shall identify the key submittal packages to be prepared by the Contractor and the expected submittal dates. A reasonable time period for the City's review and comments shall be specified in the Design Submittal Protocol. The City's review procedures and time periods shall be consistent with those in the Contract. The Design Submittal Protocol shall also identify the frequency of the Contractor's design progress meetings during various phases of the design and include monthly progress review meetings with the City. The City shall designate the number of copies of submittals and distribution. At a minimum, the Design Submittal Protocol shall include the following: 1. Preliminary Design Submittal The Contractor shall make an initial submittal updating the design concept and project development work submitted with its Proposal (and if required as a result of any revisions resulting from Contract negotiations), including:  Project master schedule and design period schedule FINAL 12/28/12 F-1-25  Basis of design memorandum outline (all design disciplines)  Design drawing list  Specification list  Preliminary site grading and drainage plans  Equipment general arrangement plans  Process flow piping and instrumentation diagrams for all processes  Architectural floor plan view and exterior elevations  Preliminary landscape plan, showing all buffer areas  Make-up water piping system  Preliminary electrical site plan  Electrical one-line drawings  Mass and energy balances  Water balances  Chemical and energy use The Preliminary Design Submittal shall be made no later than 60 days after the Contract is executed. 2. Final Design Submittal The Contractor shall make a final design submittal 30 days prior to construction of any system or subsystem. At a minimum, each submittal shall include the following items, as applicable:  Final equipment and material specifications  Final architectural door, window, finish schedules  Final architectural floor plan at each floor level and exterior elevations  Final equipment layout plan views at each floor level with sections and details  Final landscaping drawings and buffer areas  Final grading and drainage drawings  Final site piping drawings  Final outdoor lighting and electrical site drawings  Final process and support facility piping and general arrangement drawings FINAL 12/28/12 F-1-26  Final structural concrete drawings, including foundations, tank designs, slab and well sections and details, miscellaneous steel details and framing drawings  Final process flow piping and Instrumentation diagrams for all processes  Final instrumentation loop control descriptions and diagram  Final electrical one-line drawings  Final electrical wiring diagrams and schedules to include motor control centers, lighting, power, instrumentation and control  Final wire and conduit schedule  Final mass and energy balance  Final water balance  Final chemical use Design Progress Meetings The Contractor shall conduct monthly progress review meetings with the City. The meetings will be conducted at the E/C Facility, at the offices of the City, or at another site mutually agreeable to the Contractor and the City. The Contractor shall record the minutes of all meetings and provide the City with copies of said minutes and documentation produced as a result of the meetings. Design Changes The procedures to be followed for incorporating any design changes requested by the Contractor and/or the City will be specified in the Contract. Construction Review Construction Review Intent In accordance with the terms and conditions of the Contract, the City will review, monitor and, as it deems necessary, inspect the Construction Work to ensure conformance to the Design Work and to ensure that such Construction Work does not represent a substitution of lesser quality. City Access, Review Meetings The City and its designated representative(s) shall have access to the E/C Facility at all times. The Contractor shall report to the City monthly, hold monthly progress review meetings with the City at a location designated by the City, and otherwise solicit input from the City to the process as required. The Contractor shall record the minutes of all meetings and construction progress, and provide the City with copies of minutes and documentation of said meetings. FINAL 12/28/12 F-1-27 Construction Submittal Protocol Prior to start of construction, the Contractor shall submit to the City a protocol for construction activities (Construction Submittal Protocol). The Construction Submittal Protocol shall identify the key submittals to be prepared by the Contractor and the expected submittal dates. A reasonable time period for the City's review and comments shall be specified in the Construction Submittal Protocol. The City's review procedures and time periods shall be consistent with those in the main body of the Contract. The Construction Submittal Protocol shall also note the frequency of the Contractor's construction progress meetings and include monthly progress review meetings with the City. The City shall designate the number of copies of submittals and distribution. Construction Submittals The Contractor shall submit to the City, every two weeks, an updated list of the current status of all shop drawings and submittals under review. The City may request copies of any or all said drawings and submittals for its review. The Contractor shall supply any requested documents within five (5) Business Days of the City's request. Shop Drawings All final shop drawings shall be submitted to the City, filed in accordance with a numbered index. Product Data Product data shall include, but are not limited to standard prepared data for manufactured products (sometimes referred to as catalog data), such as the manufacturer's product specification and installation instructions, availability of colors and patterns, roughing-in diagrams and templates, catalog cuts, product photographs, standard wiring diagrams, printed performance curves and operational-range diagrams, production or quality control inspection and test reports and certifications, recommended spare parts listing, and printed product warranties, as applicable to the Construction Work. Samples Samples shall include, but are not limited to, physical examples of the work such as sections of manufactured or fabricated work, small cuts or containers of materials, complete units of repetitively-used products, and color/texture/pattern swatches, as applicable to the Construction Work. Format for Design and Construction Submittals Submittals shall be made in accordance with the Design and Construction Submittal Protocols and in such sequence as not to cause delay in the Design Work and the Construction Work. FINAL 12/28/12 F-1-28 Submittals shall contain: 1. The date of submission, noting whether it is an original submission or a resubmission. 2. The project title and number. 3. The names of: a. Contractor b. Supplier c. Manufacturer 4. Identification of any deviations from Contract requirements. 5. State of California Registered P.E. and/or Registered Architect certification, as applicable. Start-Up Test and Acceptance Test Requirements Testing of equipment and systems installed, as part of the E/C Facility, will occur in two phases: the start-up testing and the Acceptance Test (see Section 4). Operation and Maintenance Requirements - E/C Facility and Export Transition and Start-Up O&M Services The Contractor shall provide services necessary for a smooth start-up for operation and maintenance of the E/C Facility or for the provision of Export, as applicable. Unless otherwise required in this RFP, after the Contract Date, but prior to initiating E/C Facility O&M services or Export Services, the Contractor shall be responsible for:  Meeting with the City as the City deems necessary to develop a plan for and implement a smooth, uninterrupted provision of services.  Preparing an Operations and Maintenance Manual.  Obtaining required insurance for operations.  Developing and implementing a training program for the E/C Facility or for Export services.  Implementing computerized operations and maintenance management, inventory control, and process control data management systems.  Setting up the computerized operations and maintenance management, inventory control and process control data systems to generate necessary reports and plots, including executive-level report and data summaries.  Planning and scheduling for all operations and maintenance supplies, utilities, consumables, office supplies, and materials. FINAL 12/28/12 F-1-29  Preparing an Exit Transition Plan. Exit Transition Services At the end of the Contract, whether at its stated expiration or by earlier termination for whatever reason, the Contractor shall provide services necessary for a smooth, uninterrupted transition of service to the City or its designated contractor. At Contract termination, the Contractor shall also provide for transfer of any license(s) to the City necessary for continued operations and maintenance of the E/C Facility. Alternatively, should the City exercise its right to have the E/C Facility removed from the Site after the Contract expiration or by earlier termination as provided in Section 5 of this RFP, the Contractor shall provide services necessary to accomplish this task and restore the Site to a safe and useable condition. The Contractor shall prepare an Exit Transition Plan describing said services and provide said plan to the City prior to initiating O&M services. Export Services The Contractor shall provide Export services to manage the City's Biosolids, Food Scraps and Yard Trimmings, as applicable. All services provided shall be in accordance with the Contract, meet or exceed Good Industry Practice, and be in full compliance with all applicable Federal, State and local permits, laws, regulations, policies and rules of all jurisdictional agencies having control over Contractor's Export services. The Contractor shall: 1. Provide Export services in accordance with an O&M Manual approved, as required, by appropriate regulatory agencies, and with generally accepted industry principles and practices in full compliance with permit requirements and all applicable laws, regulations, policies and required approvals. The O&M manual shall be revised as necessary, for any changes to operational practices and/or for any additions or revisions to standard operating procedures. Revisions to the O&M manual shall incorporate practices, as required by applicable regulations, or in accordance with the Contract and Good Industry Practices, whichever are more stringent. Revisions to the O&M manual must be approved, as required, by appropriate regulatory agencies. The O&M Manual shall address Contractor programs for monitoring and inspection of incoming feedstock and for separation and proper disposal of Unacceptable Feedstock. The O&M Manual shall describe how feedstocks received for processing will be weighed, including weigh scale calibration programs, procedures for FINAL 12/28/12 F-1-30 resolution if standards are not met, and alternative means of weighing feedstock and materials should scales not meet standards. 2. Provide the required staff in accordance with a plan for staffing. The plan for staffing must include job titles and certification levels. A schedule must be provided detailing the coverage for each shift for the proposed workweek (including weekends and holidays). 3. Provide training for personnel, as applicable. The Contractor shall notify the City in advance of any training programs and allow the City to participate in said programs. Class size shall be limited to that prescribed by the Contractor training policy. 4. Provide administrative and technical support services to ensure efficient Export services. The services shall be provided as needed during the Term of the Contract. 5. Provide a quality assurance/quality control program (QA/QC Program) for sampling, testing, and analysis and perform monitoring, sampling, testing, laboratory analyses, and reporting, all as necessary for process control and full compliance with all local, State and Federal regulations and permits and Good Industry Practice. All testing necessary for compliance with permits and local, State and Federal programs shall be performed by a properly certified laboratory, to the extent required by applicable laws, regulations and policies. Weigh scales shall be tested monthly. The Contractor shall notify the City if scales do not meet standards, and provide alternative services when scales are out of calibration. The City shall have the right to independently test the scales at any time, at its own expense. 6. Provide for vehicle and/or capital repair and replacement, and repair or replace any vehicles, equipment, materials, facilities or other structures used to provide Export services, which are in need of repair or fail during the Term of the Contract. 7. Provide the required labor, materials, machinery, vehicles, equipment, fuel, power, chemicals, supplies, spare parts, expendables, consumables, long- lead-time replacement items, and all other items to provide Export services. 8. Respond promptly to (within two (2) hours after notice, or as otherwise required) and rectify all normal problems and emergencies relating to the Export services and maintain at all times during the Term of this Contract a toll-free, twenty-four-hour (24) telephone number with person-to-person service where emergencies can be reported. The Contractor shall immediately notify the City in the case of any emergency. FINAL 12/28/12 F-1-31 9. Provide for the satisfactory and proper transportation, processing and disposal, as applicable, of all feedstock, materials and Residuals 10. Provide and maintain well-documented records of Export services, including operations, maintenance, laboratory analysis, personnel, training, safety, process control, daily inspections, materials, alarms, and any other significant events. 11. Prepare and sign all required regulatory and compliance reports. Copies of all reports shall be sent to the City and to the appropriate regulatory agencies by required deadlines. The Contractor shall maintain records as required by the regulatory agencies. Such records shall be accessible to the City. 12. At least once per month, or more frequently if necessary, meet with the City to review and discuss Export services, reports, ongoing and expected expenses, plans, and events which may impact contractual monetary performance or environmental compliance. 13. The Contractor shall maintain and provide for any monitoring, sampling and analysis required by regulatory agencies. 14. Provide for and maintain all Federal, State and local permits and other legal requirements that are necessary to provide Export services. Future permits or permit modifications required for providing services and which shall be procured and maintained by the Contractor with support from the City, and if appropriate, required changes will be subject to review under the Uncontrollable Circumstances (Change-in-Law) provisions of the Contract. Operation and Maintenance of the E/C Facility The Contractor shall provide continuous, full-service operation and maintenance services and asset management for the E/C Facility. All services provided by the Contractor shall be in accordance with the Contract, meet or exceed Good Industry Practice, and be in full compliance with all applicable Federal, State and local permits, laws, regulations, policies and rules of all jurisdictional agencies having control over the E/C Facility. The Contractor shall accept for processing all Acceptable Feedstock delivered by or on behalf of the City that can be stored and processed within the limits specified by this RFP and as negotiated in the Contract. The Contractor can accept additional material (Spot Market Feedstock) as can be accommodated by the E/C Facility and as allowed by permit. The Contractor shall: 1. Provide full-service, 24-hour-a-day, seven-day-a-week operation and maintenance of the E/C Facility. Services shall be provided in accordance with FINAL 12/28/12 F-1-32 an O&M Manual approved, as required, by appropriate regulatory agencies, and with generally accepted industry principles and practices in full compliance with permit requirements and all applicable laws, regulations, policies and required approvals. The Contractor shall operate and maintain the E/C Facility in accordance with the O&M manual and in accordance with the Contract and Good Industry Practices, whichever is most stringent. The O&M manual shall be revised as necessary, for any changes to operations and maintenance practices, for any additions or revisions to standard operating procedures and for any E/C Facility modifications. Revisions to the O&M manual shall incorporate practices, as required by applicable regulations, or in accordance with the Contract and Good Industry Practices, whichever are more stringent. Revisions to the O&M manual must be approved, as required, by appropriate regulatory agencies. The O&M manual shall include descriptions of the unit or system and component parts, its function, operating characteristics, and limiting conditions, and performance curves, engineering data and replacement parts for the equipment furnished, by reference to manufacturer/vendor-supplied information contained in engineering design submittals to the City and as defined in the Contract. The O&M manual shall also include complete maintenance instructions, parts lists, controls, and other information describing the construction, operation, control and maintenance of the equipment furnished. In addition, the O&M manual shall contain detailed operation instructions for all unit processes to include process control descriptions, target values for all process related control parameters, emergency process control provisions and process recovery procedures during unit process upsets or abnormal conditions. The O&M Manual shall address Contractor programs for monitoring and inspection of incoming waste and for separation and proper disposal of Unacceptable Feedstock. The O&M Manual shall describe weigh scale calibration programs, procedures for resolution if standards are not met, and alternative means of weighing feedstock and materials should scales not meet standards. 2. Provide the required staff in accordance with a plan for staffing. The plan for staffing must include job titles and certification levels. A schedule must be provided detailing the coverage for each shift for the proposed workweek (including weekends and holidays). 3. Provide training for personnel, as applicable, in the areas of E/C Facility operations, maintenance, safety, supervisory skills, and laboratory management. This training will include both plant specific and general, but related, educational materials. FINAL 12/28/12 F-1-33 The Contractor shall notify the City in advance of any training programs and allow the City to participate in said programs. Class size shall be limited to that prescribed by the Contractor training policy. 4. Provide administrative and technical support services to ensure efficient maintenance and operation of the E/C Facility. The services shall be provided as needed during the Term of the Contract. 5. Provide 24-hour-a-day access for the City's personnel, and their designated representatives, to the E/C Facility. All visitors to the E/C Facility shall notify the Contractor upon arrival and shall comply with the Contractor's safety policies and procedures. 6. The Contractor shall provide a quality assurance/quality control program (QA/QC Program) for sampling, testing, and analysis and perform monitoring, sampling, testing, laboratory analyses, and reporting, all as necessary for process control and full compliance with all local, State and Federal regulations and permits and Good Industry Practice. All testing necessary for compliance with permits and local, State and Federal programs shall be performed by a properly certified laboratory, to the extent required by applicable laws, regulations and policies. Weigh scales shall be tested monthly. The Contractor shall notify the City if scales do not meet standards, and provide alternative services when scales are out of calibration. The City shall have the right to independently test the scales at any time, at its own expense. 7. Perform all Corrective, Predictive and Preventive Maintenance Plan activities and repairs for the E/C Facility in accordance with the O&M manual and Good Industry Practice. 8. Conduct all activities to maintain and enforce new and existing equipment warranties and guarantees. 9. Provide for capital repair and replacement, and repair or replace any materials, equipment, building or other structures, which are in need of repair or fail during the Term of the Contract. 10. Provide the required labor, materials, machinery, vehicles, equipment, fuel, power, chemicals, supplies, spare parts, expendables, consumables, long-lead-time replacement items, and all other items to operate and maintain the E/C Facility. 11. Perform routine and normal repairs, including maintenance of all equipment, structures, buildings and grounds which are part of the E/C Facility. Maintenance shall include housekeeping, cleaning, painting and landscaping services. FINAL 12/28/12 F-1-34 12. Provide safety and security for the E/C Facility in compliance with applicable health and safety regulations, Good Industry Practice, and as warranted by the site location. Fences and gates shall be maintained in neat order and structural integrity. 13. Respond promptly to (within two (2) hours after notice, or as otherwise required) and rectify all normal problems and emergencies relating to the E/C Facility and maintain at all times during the Term of this Contract a toll-free, twenty-four-hour (24) telephone number with person-to-person service where emergencies can be reported. The Contractor shall immediately notify the City in the case of any emergency. 14. Immediately notify the City, if, during the course of excavation work necessary to make repairs and/or improvements to the E/C Facility, faulty or leaking underground storage tanks or hazardous or toxic waste or materials (as defined in Applicable Law) are identified by the Contractor, and immediately notify such other governmental agencies as may be required by law and take such further actions to assist the City in protecting the health, safety and welfare of the public. 15. Conduct emergency repairs to protect employees, equipment, buildings and grounds, as required. 16. Provide for the satisfactory and proper handling and storage of all recovered materials and products. 17. Provide for the satisfactory and proper handling, loading, transportation and disposal of all Residuals, Bypassed Feedstock, and Unacceptable Feedstock. Residue must be characterized and disposed of in accordance with Applicable Law. Prepare and maintain a record of disposal of these materials in accordance with Applicable Law. 18. Remove and dispose, or sell unused and replaced equipment. The Contractor shall identify such equipment. 19. Provide and maintain well-documented records of operations, maintenance, laboratory analysis, personnel, training, safety, process control, daily inspections, materials, alarms, and any other significant events. 20. Prepare and sign all regulatory operation and maintenance reports and CEMS compliance reports. Copies of all reports shall be sent to the City and to the appropriate regulatory agencies by required deadlines. The Contractor shall maintain records as required by the regulatory agencies. Such records shall be accessible to the City. 21. At least once per month, or more frequently if necessary, meet with the City to review and discuss operations and maintenance activities, reports, ongoing FINAL 12/28/12 F-1-35 and expected expenses, plans, and events which may impact contractual monetary performance or environmental compliance. At any time, the E/C Facility may be inspected by the City or its designated representative(s) to ensure all required work is being performed, including maintaining an acceptable level of cleanliness and appearance. 22. Conduct semi-annual inspections of the E/C Facility. The City's designated representative(s) shall accompany the Contractor on these inspections. 23. Perform such repairs or maintenance items as identified in writing by the City as a result of any the City's inspection that reveals a lack of repairs or necessary maintenance to the E/C Facility which may impact contractual monetary performance, environmental compliance, or public safety. Disagreements arising from actions taken in this item shall be subject to the dispute resolution procedure in the Contract. 24. The Contractor shall maintain and provide for any monitoring, sampling and analysis required by regulatory agencies. 25. Provide for and maintain all Federal, State and local permits and other legal requirements that are necessary to operate and maintain the E/C Facility. Future permits or permit modifications required for providing operations and maintenance services and which shall be procured and maintained by the Contractor with support from the City, and if appropriate, required changes will be subject to review under the Uncontrollable Circumstances (Change-in-Law) provisions of the Contract. 26. The Contractor shall be responsible for maintaining the E/C Facility in good working condition according to Good Industry Practice and Contract terms. Computerized Operation and Maintenance Management for E/C Facility Operation and maintenance activities for the E/C Facility shall be administered using computerized operations and maintenance management system provided by the Contractor. This system shall be operational prior to Acceptance. Records and Reports - E/C Facility and Export The Contractor shall maintain records and prepare reports as described herein and as may otherwise be required by applicable Federal, State and local government agencies. Minimum reporting requirements to the City are described herein. Recordkeeping and reporting requirements shall apply to the E/C Facility and, as applicable, Export services. The Contractor shall maintain records and prepare reports to the City documenting facilities' and systems' operations and maintenance, regulatory activities, laboratory analyses, training, process control, daily inspections, significant alarms, chemicals FINAL 12/28/12 F-1-36 on hand, fuel on hand, maintenance plans and activities, outages, permit and compliance results, equipment status, and other relevant information, such as Export services, in accordance with the City's requirements as specified below, applicable laws, regulations, permits, and guidelines and as Good Industry Practice shall require. The City and its designated representative(s) shall have full access to these reports and data at all times. The Contractor shall provide the following reports to the City:  Monthly Operations and Maintenance Report – The Contractor shall prepare and provide to the City within 20 days of the end of each month an operations and maintenance report. At a minimum, the Contractor shall identify any permit violations for the month and include a summary of E/C Facility performance, including the performance with respect to permit parameters, status of maintenance, major expenditures, and other pertinent information of the E/C Facility. The report shall quantify the Acceptable Feedstock received by source, Acceptable Feedstock processed, Residue, Bypassed Feedstock, Unprocessible Feedstock and Unacceptable Feedstock disposed, digestate produced, materials recovered, electricity produced and sold, electricity used, fuel produced and sold, and other materials recovered and/or products produced and sold or beneficially used. It shall list forced outages and planned outages, and forecast E/C Facility planned outages for the next three months. It shall also document fuels and chemicals used; include maintenance monitoring reports; and include copies of any correspondence with regulatory agencies, including that associated with any permit violations. The report shall also list all maintenance work performed, the maintenance plan for the next month, and record keeping activities. The report shall document accidents, injuries, damages to the City's property, emergencies and alarm activations and the response actions taken by the Contractor. For Export services, the Contractor shall provide a similar monthly report documenting applicable information.  Monthly Statement – Within 20 days of the end of each month, a Monthly Statement shall be prepared and submitted to the City which documents in sufficient detail for City's verification of the payment due to the City, or the payment due the Contractor. The Statement shall include cost items, revenues, feedstock throughput and quantity of products generated and sold.  Monthly Complaint Log – Within 20 days of the end of each month, the Contractor shall prepare and provide to the City a monthly report of all complaints relating to the E/C Facility or Export services. The report shall include a description of the response to the inquiry and an assessment of the complainant's satisfaction with the response. FINAL 12/28/12 F-1-37  Annual Operation and Maintenance Report – Within 90 days of the end of each Contract Year, the Contractor shall prepare a report presenting a summary of the past year's operation and maintenance activities at the E/C Facility or for Export services based on the monthly reports and presenting planned activities for the next year. Capital repair and replacement and capital improvements shall be described. The report shall also document in sufficient detail any adjustments required in payments to or by the City. After submission of the report, the Contractor shall, at the City's request, meet with the City to review the report. Staffing The Contractor shall provide a staff of qualified and experienced employees in accordance with the plan for staffing and shall provide such additional third-party support as may be needed to perform its duties and obligations hereunder. Said third parties shall be equally qualified for the particular services to be performed and shall not have any direct claim against the City whatsoever. The Contractor shall at all times maintain the necessary number of employees, staff and third-party contractors to operate, maintain and manage the E/C Facility or to provide Export services in accordance with the Operations and Maintenance Plan and the Contract, to adequately maintain the E/C Facility or vehicles and facilities used to provide Export services in good repair, to adequately operate the E/C Facility or conduct Export services to provide good service to the customers, and to protect the health, welfare and safety of the citizens of the local community and surrounding communities. The Contractor shall make a good faith effort to employ staff from the local and regional labor markets. The Contractor shall provide: (i) qualified management, supervisory, technical, laboratory, and operating and maintenance personnel, licensed or certified as required, for operation and maintenance of the E/C Facility or for provision of Export services; (ii) a manager for day-to-day supervision; (iii) specialists, as may be necessary, including those for troubleshooting, emergency management, and similar circumstances; and (iv) office and clerical support staff as necessary. The Contractor shall provide a technical support group that will provide on-call backup advice, expertise and quality control, management, maintenance and plant repair to assist the operational staff and ensure performance of obligations hereunder and to design and construct any improvements to the E/C Facility. The Contractor’s technical support group shall also provide assistance in the investigation, development and implementation of modifications in the processes as may be appropriate or necessary for regulatory compliance, worker safety, or process improvement. The Contractor shall provide and maintain an organizational chart that lists job classification and the number of staff proposed for the full-time operation. The Contractor shall notify the City of any proposed material revisions to the plan for FINAL 12/28/12 F-1-38 staffing and/or to the personnel organization for the E/C Facility or for Export services. Licenses and Certifications The Contractor shall acquire and hold, and cause its personnel to acquire and hold, all required Federal, State and local approvals, licenses, and certifications necessary to operate, maintain and manage the E/C Facility or to provide Export services. Training The Contractor shall provide, as appropriate, overall career development, on-site direction, and support to on-site personnel, in addition to providing an ongoing series of specialized training programs in the following areas:  Laboratory  Process control  Operations and maintenance and repairs  Safety  Confined space entry  QA/QC  Right-to-Know  Emergency preparedness and response  Personnel relations  Community relations The Contractor shall notify the City in advance of any training programs held by the Contractor and allow the City's participation in said programs. Class size shall be limited to that prescribed by the Contractor training policy. Training shall be an integral component of operation and maintenance services. Mandatory training shall be required for all personnel in general operation, and in area-specific and job- specific performance. Refresher courses shall be tailored for each area of responsibility. As new employees are introduced, experienced employees are given new assignments or new equipment/processes are introduced, a training program shall be implemented. Documentation of the training and evaluation of the results shall be completed. Emergency Preparedness and Emergency Situations The Contractor shall prepare an Emergency Preparedness Plan (EPP) in accordance with Federal and State regulations governing emergency action and fire prevention plans and in cooperation with Federal, State and local officials and public safety departments. Potential emergency situations shall be identified and specific FINAL 12/28/12 F-1-39 actions to minimize the chance of an emergency shall be described. The Contractor shall develop written policies, preventative measures and response actions necessary to manage Extremely Hazardous Substances (EHS) and systems that may pose a threat to the safety of workers and the surrounding community environment. These written policies shall be developed and implemented as necessary to comply with Federal and State safety, health and environmental regulations governing EHS. In addition, the EPP shall address actual response and notification requirements for each type of anticipated emergency. The notification, depending on the situation, shall include the local Fire, Police and Public Works Departments, the Office of Emergency Management, and the applicable State and Federal agencies. The EPP shall also identify specific response actions that shall be taken by the Contractor and specific local or other applicable agencies to ensure that either the waste services are not disrupted, or the disruption is minimized to the maximum extent possible. The Contractor shall implement the EPP based on the following:  Operation and Maintenance Staff. Operators shall be trained in the use of equipment and in the implementation of the EPP. Specific procedures, tailored to the E/C Facility or Export services, as applicable, shall be developed with operator input and shall be used in the event of equipment failure and customer complaints regarding service. Designated Contractor employees shall have personal pagers and on-call duties will be rotated at the Contractor's discretion to ensure the availability of adequate response on a 24-hour-a-day basis.  Emergency Operations Plan. A written emergency operations plan shall be developed and implemented for the E/C Facility or for Export services, as applicable, with the input of local community and State agencies and departments and safety service officials, as well as the City and applicable Federal agencies. Procedures shall be rehearsed with appropriate officials to ensure that response functions are properly executed in the event of an emergency. This plan shall meet the requirements for a contingency plan, and shall cover potential emergencies due to natural disasters, power failures, spills or releases of contaminants, etc.  Monitoring Equipment and Alarms. The Contractor shall provide monitoring equipment and alarms for the E/C Facility. All key process functions shall be monitored, and when they exceed alarm setpoints, the early warning devices shall notify the on-call operator. The Contractor shall immediately notify the City, appropriate Federal agencies, the State and the local community of any activity, problem, or circumstance that threatens the safety, health or welfare of the users of the E/C Facility or the residents of local community. FINAL 12/28/12 F-1-40 In the event of damage or destruction of the E/C Facility or any emergency which, in the reasonable judgment of the Contractor, is likely to resort in material loss or damage to the E/C Facility or constitute a material threat to human health or safety, the Contractor may suspend operation of the E/C Facility, or similarly suspend Export services. Emergency repairs as are necessary to mitigate or reduce such loss, damage or threat to human health or public safety shall be done in consultation with the City, appropriate Federal agencies, the State and the local community. Notification of emergency/noncompliance events within the E/C Facility or Export services shall be in accordance with permit requirements and an emergency plan to be developed by the Contractor and submitted to and approved by the City, appropriate Federal agencies, the State, and the local community and any subsequent amendments or modifications thereto. The Contractor shall respond to emergencies and unusual circumstances in accordance with applicable regulations and requirements and with such personnel and equipment as necessary to maintain or restore the operations of the E/C Facility or Export services in a timely manner with the least possible disruption or inconvenience to the users of the E/C Facility or Export services. OSHA Compliance The Contractor shall prepare and implement a technical and safety training plan and program for the E/C Facility or Export services in accordance with OSHA requirements, Good Industry Practice and the Contractor standard practices, whichever are most stringent. The Contractor shall assign the administration of the technical and safety training plan and program to its appropriate staff. Safety meetings shall be held regularly. Said meetings shall be used to provide safety training and to review site-specific job and general safety requirements. Inspections by the Contractor's personnel responsible for health and safety shall be used as a tool in determining how the health and safety program is progressing in conformance with the established plan. Should an accident occur, a written accident investigation procedure shall be followed to document the accident and prevent reoccurrences. Noise Control The Contractor shall be responsible for meeting the requirements of Applicable Law and minimizing noise impacts on surrounding land use for the E/C Facility and for Export services. Particular emphasis should be placed on minimizing noise impacts after normal business hours and during weekends and holidays. Odor Control The Contractor shall be responsible for: 1) managing odors from the E/C Facility such that no objectionable odor can be detected beyond the Site boundaries; and 2) FINAL 12/28/12 F-1-41 investigating and satisfying odor complaints and correcting any odor problems should they occur. For Export services, the Contractor shall be responsible for managing odors from its vehicles, any transfer facilities and its processing facilities. Activities shall include, but are not limited to the following, which shall also apply to Export services as applicable for its vehicles picking up and transporting Acceptable Feedstocks as well as any transfer facilities and its processing facilities: Good Housekeeping The Contractor shall implement a regimented housekeeping schedule and work plan for the E/C Facility to maintain clean facilities. Proper Feedstock and Product Management The Contractor shall provide proper feedstock and product management within the E/C Facility. Efficient Process Control The Contractor shall maintain a proactive approach to odor control through diligent process control of the unit operations of the E/C Facility. Typical of these are:  Ongoing evaluation of the E/C Facility odor control systems to insure adequate control of the controllable parameters; and  Optimization of feedstock processing to reduce the on-site feedstock inventory. Enhanced Odor Awareness, Evaluation and Reduction The Contractor shall provide ongoing audits of the odor conditions of the E/C Facility components. As part of its services, the Contractor shall perform annual odor control evaluations of the E/C Facility and the surrounding areas and shall submit a report on same to the City. The Contractor shall be responsible for all steps consistent with industry standards and Good Industry Practice for reducing all odors so that off-site odors are minimized and complaints are satisfied. Community Relations The Contractor shall be sensitive to the impact that “poor housekeeping”, undesirable odors, noise, excessive light or other such operational and environmental factors can have on community relations. In the event of a complaint(s), the Contractor shall respond rapidly to resolve any reported problems. The Contractor's actions shall be taken in a professional manner that maintains positive community relations for the E/C Facility and Export services within the community. FINAL 12/28/12 F-1-42 As a minimum, the Contractor shall:  Report to the City any complaints related to the E/C Facility or Export services.  Provide a 24-hour telephone hotline for those who wish to comment on issues of immediate concern.  Provide an e-mail address for those who wish to comment on issues of concern. Public Information Program The Contractor shall be responsible for assisting the City with their public information programs by providing information to support those programs. The Contractor shall describe its proposed efforts, which may include activities such as:  Creation of a Web Page informing the public of the status of the E/C Facility or Export services and various public education materials and programs available associated with the E/C Facility or Export services.  Issuance of newsletters and/or press releases to inform the public of the Contractor's activities related to the E/C Facility or Export services.  Preparation of fact sheets and household guides explaining State and local community regulations and activities at the E/C Facility or related to Export services that positively affect recycling and renewable energy generation.  Presentations to local civic, environmental and other groups or at public events, which will include presentation of available videos.  Providing a repository of publications pertaining to waste policies and waste reduction and recycling programs, information about purchasing products made from recyclable products and directories of companies that provide these types of goods, recycling guidance documents and technologies that will be available to interested parties at the E/C Facility or another location agreed to by the City. Such a repository shall be inclusive of information or guides generated and provided by the City.  Hosting of E/C Facility open houses, as well as at Export facilities.  Hosting of tours of the E/C Facility or Export facilities for interested members of the public.  Technical assistance on source and waste toxicity reduction to target users of concern.  Participation in public hearings, public meetings, and meetings of elected officials and interested groups.  Participation in City, State and local community public events. FINAL 12/28/12 F-1-43 Laboratory Management The Contractor shall perform all required sampling, testing and laboratory analyses for the E/C Facility or for Export services and prepare and file the required reports. The Contractor shall maintain a laboratory quality assurance and quality control program that ensures all regulatory data is legally defensible. The Contractor shall set up, audit and monitor all laboratory operations to ensure compliance with EPA standard test methods and any State and local requirements. FINAL 12/28/12 F-2-1 APPENDIX F-2 UTILITY INFORMATION Utility Rate Schedule E-7 (Large Commercial Electric Service) City of Palo Alto Standard Electricity Interconnection Agreement [Note: The City's Standard Interconnection Agreement is for a term of 10 years. For purposes of Proposal preparation, Proposers shall assume that the term of the interconnection agreement will be consistent with both the Term of the Contract and the term of the power sales agreement to be negotiated with the City Northern California Power Agency (NCPA) Scheduling Protocols Stormwater Collection System at the Landfill Site LARGE COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-2009 Sheet No E-7-1 Supersedes Sheet No E-7-2 dated 11-1-2008 A. APPLICABILITY: This schedule applies to demand metered secondary service for commercial customers with a maximum demand of at least 1,000 KW per month per site, who have sustained this demand level at least 3 consecutive months during the last twelve months. B. TERRITORY: This rate schedule applies anywhere the City of Palo Alto provides electric service. C. RATES: Rates per kilowatt (kW) and kilowatt-hour (kWh): Commodity Distribution Public Benefits Total Summer Period Demand Charge (kW) $6.42 $12.55 $18.97 Energy Charge (kWh) 0.05662 0.01825 0.00321 0.07808 Winter Period Demand Charge (kW) $5.50 $6.04 $11.54 Energy Charge (kWh) 0.04990 0.01898 0.00321 0.07209 D. SPECIAL NOTES: 1. Calculation of Charges The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-2009 Sheet No E-7-2 Supersedes Sheet No E-7-2 dated 11-1-2008 LARGE COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7 2. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use both in the summer and in the winter periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. 3. Request for Service Qualifying customers may request service under this schedule for more than one account or one meter if the accounts are on one site. A site shall be defined as one or more utility accounts serving contiguous parcels of land with no intervening public right-of-ways (e.g. streets) and have a common billing address. 4. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a maximum demand meter will be installed as promptly as is practicable and thereafter continued in service until the monthly use of energy has fallen below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The maximum demand in any month will be the maximum average power in kilowatts taken during any 15-minute interval in the month provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type demand meter which does not reset after a definite time interval may be used at the City's option. The billing demand to be used in computing charges under this schedule will be the actual maximum demand in kilowatts for the current month. An exception is that the billing demand for customers with Thermal Energy Storage (TES) will be based upon the actual maximum demand of such customers between the hours of noon and 6 pm on weekdays. LARGE COMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-2009 Sheet No E-7-3 Supersedes Sheet No E-7-3 dated 11-1-2008 FINAL 12/28/12 5. Power Factor For new or existing customers whose demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option to install applicable metering to calculate a power factor. The City may remove such metering from the service of a customer whose demand has been below 200 kilowatts for four consecutive months. When such metering is installed, the monthly electric bill shall include a “power factor penalty”, if applicable. The penalty adjustment shall be applied to a customer’s bill prior to the computation of any primary voltage discount. The power factor penalty is applied by increasing the total energy and demand charges for any month by 0.25 percent (0.25%) for each one percent (1%) that the monthly power factor of the customer’s load was less than 95%. The monthly power factor is the average power factor based on the ratio of kilowatt hours to kilovolt-ampere hours consumed during the month. Where time-of-day metering is installed, the monthly power factor shall be the power factor coincident with the customer's maximum demand. 6. Changing Rate Schedules Customers may request a rate schedule change at any time to any applicable full service rate schedule as is applicable to their kilowatt-demand and kilowatt-hour usage profile. 7. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be allowed provided the City is not required to supply service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer's electrical requirements. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a discount hereunder and affected by such change. The customer then has the option to change his system so as to receive service at the new line voltage or to accept service (without voltage discount) through transformers to be supplied by the City subject to a maximum kVA size limitation. {End} FINAL 12/28/12 F-2-4 INTERCONNECTION AGREEMENT This Interconnection Agreement (the “Agreement”), dated, for convenience, , 20 (the “Effective Date”), is entered into by and between the CITY OF PALO ALTO, a California chartered municipal corporation (the “City”), acting by and through its Department of Utilities (“CPAU”), and ABC COMPANY, a California corporation (the “Facility Owner”), located at the address stated below (the City and the Facility Owner are referred to, individually, as a “Party”, and, collectively, as the “Parties”). 1.0 TERM 1.1 This Agreement takes effect on the Effective Date, and it will continue for a term of ten (10) years, until it is earlier terminated, as follows: (a) the Facility Owner gives the City or CPAU thirty (30) days’ prior written notice of termination; (b) if Operating Mode #2 or Operating Mode #3 is selected in Exhibit A, upon the effective date of termination of the Power Purchase Agreement or the Other Agreement between the Parties; or (c) a Party effectively terminates due to a material default and breach by the other Party. 1.2 Upon a default referred to in Section 1.1(c), the non-defaulting Party shall give written notice of such event of default to the defaulting Party. The defaulting Party shall have sixty (60) days from the receipt of notice of default in which to cure the default; provided, if the defaulting Party informs the non-defaulting Party that it cannot cure the default within the sixty-days period and it in good faith has continuously and diligently attempted to cure the default, then, if the defaulting Party cures within six (6) months from the receipt of the notice of default, the non- defaulting Party may not terminate this Agreement.. No default shall be deemed to exist if the failure to discharge an obligation (other than the payment of money) is the result of force majeure or an act or omission of the other Party 2.0 GENERATING FACILITY INTERCONNECTION AND METERING 2.1 The Facility Owner will install, operate, maintain, and repair the Generating Facility and use the meter(s) that meet(s) the requirements of CPAU’s Rules and Regulations, as amended, and other applicable laws, rules and regulations, including, without limitation, CPAU’s interconnection standards, as set forth in its Utilities Rule and Regulation 27 (“Rule 27”). 2.2 CPAU, at its sole cost and expense, may inspect and approve the installation of the Generating Facility and verify or otherwise authenticate the accuracy of the meter(s) as a condition precedent to its obligation to interconnect. 2.3 The Facility Owner grants to the City, including CPAU, its officers, employees, agents and representatives the non-exclusive right of ingress and egress on, over and across the Premises, upon reasonable prior notice, for the purpose of inspecting and approving the installation and operation of the Generating Facility and FINAL 12/28/12 F-2-5 authenticating the accuracy of the meter(s), or without notice, in the event of an emergency, to protect the public health, safety and welfare, or in regard to a disconnection of the Generating Facility, if CPAU reasonably determines that a condition hazardous to person or property exists and immediate action is necessary to protect person or property from damage or interference caused by the Facility or as a result of the lack of properly operating protective devices of the Facility. 2.4 The Facility Owner will obtain and maintain the required governmental approvals, authorizations, permits, and any policy (or policies) of insurance, including, without limitation, commercial general liability, property, and professional liability insurance, as may be required by the City or CPAU or applicable laws. 2.5 The Facility Owner will comply with all applicable federal, state and local safety and performance standards applicable to the Generating Facility and established by or under the National Electrical Code (NEC), the Institute of Electrical and Electronics Engineers (IEEE) and accredited testing laboratories, including, without limitation, Underwriters Laboratories (UL), and in accordance with the applicable orders, rules and regulations of the California Public Utilities Commission, pertaining to the safety and reliability of electrical generating systems, and applicable City building codes. 2.6 Neither the City nor CPAU will be obligated to accept or pay for, and the City or CPAU may require the Facility Owner to temporarily interrupt or reduce, the delivery of available energy generated by the Generating Facility in the event of the following: (a) whenever CPAU determines that the interruption or reduction is necessary in order for CPAU to construct, install, maintain, repair, replace, remove, investigate, or inspect any part of CPAU’s electric utility distribution system; or (b) if CPAU determines that the interruption or reduction is necessary on account of an emergency, voluntary or involuntary outage, force majeure, or compliance with good utility practice. 2.7 Notwithstanding any other provision of this Agreement, if CPAU determines that either (a) the operation of the Generating Facility may threaten or endanger the public health, safety or welfare or the City or CPAU’s personnel or property, or (b) the continued operation of the Generating Facility may endanger the operational integrity of CPAU’s electric utility distribution system, then CPAU will have the right to temporarily or permanently disconnect the Generating Facility from CPAU’s electric utility distribution system upon the delivery of prior reasonable notice to the Facility Owner; provided, CPAU may act without giving prior notice to the Facility Owner, if CPAU determines that it is impracticable to provide the notice. The Generating Facility will remain disconnected until such time as CPAU is satisfied that the conditions referred to in this subsection have been corrected or sufficiently addressed. 2.8 The Facility Owner will (a) maintain the Generating Facility, which interconnects with CPAU’s electric utility distribution system, in a safe and prudent manner and in FINAL 12/28/12 F-2-6 conformance with all applicable laws, rules and regulations, including, without limitation, the requirements of this Section 2, and (b) obtain any governmental approvals, authorizations and permits required for the construction and operation of the Generating Facility. 2.9 The Facility Owner will reimburse CPAU for any and all losses, damages, claims, penalties, or liability that the City or CPAU may incur or sustain as a result of the Facility Owner’s failure to obtain and maintain any and all governmental approvals, authorizations and permits that may be required for the construction, installation, operation, repair or maintenance of the Generating Facility. 3.0 INTERCONNECTION FACILITIES, DISTRIBUTION SYSTEM UPGRADES, AND AFFECTED SYSTEMS 3.1 The Facility Owner shall, in accordance with CPAU Rule 27 or other applicable CPAU Rule, pay, in advance and in full, for all of CPAU’s estimated design and construction costs of the Interconnection Facilities and the Distribution System Upgrades, which are specified in Exhibit A. 3.2 In the event that the Facility Owner owns the real property, on which the Interconnection Facilities are or will be located, then the Facility Owner shall grant to the City and CPAU (or in the event that Facility Owner is leasing or otherwise obtaining rights to locate the Generating Facility on real property of a third party, the Facility Owner shall obtain for the City and CPAU): 3.2.1 The right to install the Interconnection Facilities and related equipment or materials on that real property along the most practical route, which is of sufficient width to provide the appropriate and safe clearance from all structures now or hereafter erected on that real property; and 3.2.2 The right of ingress and egress to and from that real property, as may be reasonably necessary for CPAU to operate, maintain, repair, and remove the Interconnection Facilities. 3.3 Where rights-of-entry or easements are required on or over that real property or the property of a third party for the installation of the Interconnection Facilities, the Facility Owner acknowledges and agrees that CPAU’s obligation to install the Interconnection Facilities is expressly conditioned on the granting, without cost to the City or CPAU, of any and all necessary rights-of-entry or easements to the City. 3.4 THE CITY MAKES NO REPRESENTATIONS, WARRANTIES, COVENANTS OR ASSURANCES WITH RESPECT TO THE DESIGN, CONSTRUCTION, DURABILITY OR SUITABILITY OF THE NEW INTERCONNECTION FACILITIES OR ANY PART THEREOF, WHETHER EXPRESS OR IMPLIED, AND THE CITY EXPRESSLY DISCLAIMS ANY IMPLIED WARRANTY OF MERCHANTABILITY, QUIET ENJOYMENT, AND ANY IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE APPLICABLE TO FINAL 12/28/12 F-2-7 SUCH WORK. 3.5 The one-line diagram of the interconnection (at the Delivery Point) is described in Exhibit A. The Interconnection Facilities are the sole and exclusive property of and shall be owned, operated, maintained, and repaired by the City and CPAU, and the Facility Owner disclaim any interest therein. 3.6 The Facility Owner shall pay CPAU for the costs of the Interconnection Facilities. The direct costs for the design and construction of the Interconnection Facilities shall be paid in advance by the Facility Owner. The Facility Owner shall be additionally responsible for costs related to ongoing operations, maintenance, and replacement of the Interconnection Facilities. 3.7 Upon the Facility Owner’s discontinuation of use of the Interconnection Facilities due to termination of this Agreement, or otherwise, CPAU shall have the right to remove any portion of the Interconnection Facilities from the real property on which the Interconnection Facilities are installed or located. 3.8 As may be required by applicable agreements between the City or CPAU and one or more Affected Systems’ owners and/or operators, CPAU shall coordinate with those Affected Systems’ owners and/or operators to support the interconnection. An “Affected System” is an electric system not owned by the City or CPAU but to which CPAU’s electric utility distribution system is connected. “Affected System” includes, without limitation, the transmission system that is owned by the Pacific Gas and Electric Company but is operated by the California Independent System Operator Corporation (“CAISO”). If upgrades to an Affected System are required by an Affected System owner and/or operator as a condition of interconnection of the Generating Facility, then the Facility Owner shall be responsible for the costs of such upgrades. The Facility Owner and each Affected System owner and/or operator shall enter into one or more agreements that provide(s) for the financing of such upgrades, as needed, and any repayment as set forth in applicable tariffs of the Affected System’ owner and/or operator. The Facility Owner, at its own cost and expense, shall be responsible for entering into any other agreements as may be required by an Affected System’s owner and/or operator as a condition of interconnected operation and complying with the requirements of any applicable tariffs. Such agreements may include the “Participating Generator Agreement” (ISO Tariff Appendix M) and the “Meter Services Agreement for CAISO Metered Entities” with the CAISO. 4.0 INDEMNITY 4.1 Each Party, as indemnitor, shall defend, protect, indemnify and hold harmless the other Party, as indemnitee, its elected and appointed officials, directors, officers, employees, agents and representatives of the other Party from and against any and all losses, liability, damages, claims, costs, charges, demands, or expenses (including any direct, indirect or consequential loss, liability, damage, claim, cost, charge, demand, or expense, and reasonable attorneys’ fees) for personal injury or death FINAL 12/28/12 F-2-8 and property damage, arising, directly or indirectly, out of or in connection with (a) the engineering, design, construction, maintenance, repair, operation, supervision, inspection, testing, protection or ownership of the indemnitor’s facilities, or (b) the making of replacements, additions, betterments to, or reconstruction of the indemnitor’s facilities; provided, however, the Facility Owner’s duty to indemnify the City and CPAU shall not extend to any loss, liability, damage, claim, cost, charge, demand, or expense resulting from interruptions in electrical service to CPAU’s electric utility customers other than the Facility Owner. Neither Party shall be indemnified hereunder for its loss, liability, damage, claim, cost, charge, demand, or expense arising out of or resulting from its sole negligence or willful misconduct. 4.2 Notwithstanding the foregoing indemnity, and excepting a Party’s willful misconduct or sole negligence, each Party shall be solely responsible for damage to its own facilities resulting from electrical disturbances or faults. 4.3 This Section 4 shall not be construed to relieve any insurer of its obligations to pay any insurance claims in accordance with the provisions of any valid insurance policy to be procured by a Party. 4.4 EXCEPT AS OTHERWISE PROVIDED IN SECTION 4.1, A PARTY SHALL NOT BE LIABLE TO THE OTHER PARTY FOR ANY CONSEQUENTIAL, PUNITIVE, EXEMPLARY, SPECIAL OR INCIDENTAL DAMAGES (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF BUSINESS, LOSS OF REVENUE, LOSS OF OPPORTUNITY OR LOSS OF DATA), HOWSOEVER CAUSED, WHETHER ARISING UNDER TORT, CONTRACT, OR OTHER LEGAL THEORY, AND WHETHER OR NOT FORESEEABLE, THAT ARE INCURRED BY THE OTHER PARTY. 5.0 NOTICE 5.1 Any notice required to be given under this Agreement will be delivered, in writing, and electronically mailed or delivered by the United States Postal Service, with postage prepaid and correctly addressed to the Party, or personally delivered to the Party, at the address below. Changes to such designation may be made by notice similarly given. All written notices will be directed, as follows: TO CITY: City of Palo Alto Department of Utilities 250 Hamilton Ave Palo Alto, CA 94301 ATTN.: Utilities Resource Management Phone: (650) 329-2689 FAX: (650) 326-1507 Email: UtilityCommoditySettlements@CityofPaloAlto.org FINAL 12/28/12 F-2-9 TO FACILITY OWNER: ABC Company 123 Main Street Anytown, CA 90909 ATTN: Senior Vice-President of Operations Phone: (999) 999-9999 FAX: (999) 111-111 Email: RenewableEnergyOperations@ABCInc.org 6.0 MISCELLANEOUS PROVISIONS 6.1 This Agreement is governed by and interpreted in accordance with the laws of the State of California as if executed and to be performed wholly within the State of California. 6.2 Any amendment or modification to this Agreement will not be binding upon the Parties, unless the Parties agree thereto, in writing. The failure of a Party at any time or times to require performance of any provision hereof will in no manner affect the right at a later time to enforce the same. No waiver by a Party of the breach of any covenant, term or condition contained in this Agreement, whether by conduct or otherwise, will be deemed or be construed as a further or continuing waiver of any such breach or a waiver of the breach of any other covenant, term or condition, unless such waiver is stated, in writing. 6.3 This Agreement supersedes any existing agreement, to which the City and the Facility Owner are parties, under which the Facility Owner is currently operating the Generating Facility, and any such agreement shall be deemed terminated as of the date this Agreement becomes effective. IN WITNESS WHEREOF, the Parties by their duly appointed representatives have executed this Interconnection Agreement in Palo Alto, County of Santa Clara, as of the Effective Date. CITY OF PALO ALTO ABC COMPANY City Manager President APPROVED AS TO FORM: APPROVED: Senior Asst. City Attorney Director of Utilities FINAL 12/28/12 F-2-10 EXHIBIT A PART 1. GENERATING FACILITY DESCRIPTION 1. Service address: _, Palo Alto, CA (the “Premises”) 2. Generating Facility Description: 3. Gross power rating of the Generating Facility kW, based on: □ Inverter rating □ Solar array rating (Panel rated output at PV USA test conditions x inverter efficiency) □ Generator nameplate □ Prime mover nameplate 4. Generating Facility primary fuel/technology: 5. Net power rating of the Generating Facility: kW, which is the gross power rating stated above net of power used in the Generating Facility to power lights, motors, control systems, and other electrical loads used in operation, including losses on the Generating Facility’s electric distribution system 6. Maximum instantaneous power to be exported through the Point of Common Coupling: kW 7. Generating facility is connected to the CPAU distribution system at Kv 8. Operating Mode (select one of following): □ #1 Power used on-site; no energy export or incidental energy export (default choice); □ #2 Sale to CPAU (feed-in tariff (FIT) rate or merchant generator), which requires disclosure of the Power Purchase Agreement # ; □ #3 Other Agreement: Description: _, which requires disclosure of the Other Agreement # . FINAL 12/28/12 F-2-11 PART 2. INTERCONNECTION FACILITIES DESCRIPTION; ESTIMATED COSTS □ No Interconnection Facilities are required. □ Interconnection Facilities are required (provide information below). 1. The Interconnection Facilities Description: 2. The direct costs of the design and construction of the Interconnection Facilities shall be paid in advance by the Facility Owner in accordance with Rule 27, as amended. 3 The Final Estimated CPAU Design and Construction Costs is $ _. 4 The Final Estimated CPAU Operations and Maintenance Cost is $ . 5. The Total Cost of Interconnection Facilities is $_ . 6. A One-line Diagram of the Interconnection is inserted as Page(s) through . 7. A diagram of the Site Layout is inserted as Page(s) through . PART 3. DISTRIBUTION SYSTEM UPGRADES REQUIRED □ No Distribution Upgrades are required. □ Distribution Upgrades are required (provide information below). 1. Description of Distribution Upgrades: 2. The direct costs of the design and construction of the Distribution Upgrades shall be paid in advance by the Facility Owner in accordance with Rule 27, as amended. 3. The Final Estimated CPAU Design and Construction Cost is $ _. 4. The Final Estimated CPAU Operations and Maintenance Cost is $ . 5. The Total Cost of the Distribution Upgrades is $_ _. 6. A description of the Distribution Upgrades is inserted as Page(s) through . FINAL 12/28/12 F-2-12 Scheduling and Outage Notification Procedure C.1 Applicability. These procedures apply to the operator of a generating facility that sells power to the City of Palo Alto electric utility and which meets the definition of a “Participating Generator,” as may be defined by the CAISO Tariff the California Independent System Operator’s (CAISO’s) tariff (typically generators larger than 1 MW that export energy to the distribution system), and which have designated NCPA as their Scheduling Coordinator. The owner of the generating facility is referred to as the “Seller.” C.2 Annual Operations Forecast C.2.1 By the tenth (10th) day September of each calendar year, the Seller will provide NCPA with an annual operations forecast detailing hourly expected generation and all proposed planned Outages for the next calendar year. The annual operations forecast for the calendar year shall be provided by not later than ninety (90) days prior to the scheduled Commercial Operation Date of the Generating Facility. C.2.2 NCPA may request modifications to the annual operations forecast at any time, and the Seller shall use good faith efforts to accommodate the requested modifications. C.2.3 The Seller shall not conduct Planned Outages at times other than as set forth in its annual operations forecast, unless approved in advance by NCPA, which approval shall not be withheld or delayed unreasonably. C.2.4 The Seller shall not schedule or conduct Planned Outages from 12:00 p.m. through 7:00 p.m. Pacific Time during the months of June through October. C.3. Short Term Operations Forecasts C.3.1. Quarterly Operations Forecast C.3.1.1 By the fifth (5th) day of January, April and July of each Contract Year, the Seller shall provide a calendar quarter-operations forecast by hour of expected generation and all proposed Planned Outages for the next full calendar quarter and the twelve (12) months following that calendar quarter. As an example, by January 5, 2013, the Seller would provide a calendar quarter-operations forecast by hour of expected generation for the period, April 1, 2013 through June 30, 2013, and identify all proposed Planned Outages for the period, April 1, 2013 through June 30, 2014. C.3.1.2 NCPA will approve or require modifications to the proposed calendar quarter-operations forecast within ten (10) days of receipt of the forecast. C.3.1.3 If required by NCPA, the Seller will provide a modified calendar quarter-operations forecast within seven (7) days after receipt of required modifications from NCPA. C.3.2 Weekly Update C.3.2.1 By 14:00 of each Wednesday, the Seller shall provide an electronic update, in a format specified by NCPA, to the calendar quarter-operations forecast for the following seven (7) days (Thursday through the next Wednesday). C.3.2.2 The weekly update shall include hourly expected generation and all proposed planned Outages for the relevant seven (7) day period. C.4 Outage Detail for Annual and Short Term Operations Forecasts. Outage information provided by the Seller shall include, at a minimum, the start time and stop time of the Outage, capacity out of service (kW), the equipment that is or will be out of service, and the reason for the Outage. FINAL 12/28/12 F-2-13 C.5 General Scheduling Protocols C.5.1 Daily Modifications to Forecasts. Unless otherwise mutually agreed, the Seller may make changes to the weekly update to the calendar quarter-operations forecast by providing such changes to NCPA prior to 08:00 of the day that is two (2) Business Days before the active scheduling day as determined by the WECC prescheduling calendar. Example: For power that is scheduled for generation or delivery on Thursday, March 29, 2012, changes must be submitted to NCPA by 08:00 on Tuesday, March 27, 2012. C.5.2 Hourly Modifications to Active Schedules. Unless otherwise mutually agreed, the Seller may request changes to active schedules by providing such changes to NCPA with a minimum of four (4) hours’ notice prior to the applicable CAISO market deadline (e.g. Hour Ahead Scheduling Process (“HASP”) Scheduling deadline, as defined in the CAISO Tariff). Active day Schedule changes are not binding. Changes to active Schedules are limited to two (2) changes per day, excluding forced Outages, unless otherwise agreed to between the Parties. One request for a Schedule change, of one-hour or multiple-hours duration, constitutes one Schedule change. Example: For power that is scheduled for generation or delivery in hour ending 15:00 (for the period from 14:01 to 15:00), changes must be submitted to NCPA by 10:00. C.5.3. Unforeseen Circumstances. At the Seller’s request, NCPA may, but is not required to, modify the Schedules for the Generation Facility Output due to unforeseen circumstances in accordance with the above scheduling timeline constraints described in this Exhibit PPA-C. C.5.4. Absence of Forecasts. In the absence of forecasts and schedules as required by this Agreement or this Exhibit, NCPA shall utilize the most current information the Seller provides in the development and submission of Schedules. C.6 Outage Reporting Protocols C.6.1. Notification. The Seller shall notify NCPA of all planned or forced Outages of the Generating Facility to ensure compliance with the CAISO Outage Coordination and Enforcement Protocols. C.6.1.1 Outage information provided by the Seller shall include, at a minimum, the start time and stop time of the Outage, Capacity out of service (kW), equipment out of service, and the reason for the Outage. C. 6.1.2 Seller shall provide the Planned Outages not included in the annual operations forecast, the calendar quarter-operations forecast, or the weekly update, to NCPA at least four (4) Business Days prior to the start of the requested outage. C. 6.1.3 At any time prior to the start of a Planned Outage, the CAISO may deny the Outage due to a System Emergency (as defined in the CAISO Tariff) or as otherwise permitted under the CAISO Tariff. If NCPA receives notice that the CAISO has denied an Outage in accordance with the CAISO Tariff, NCPA will notify the Seller as soon as possible and the Seller shall modify the planned Outage as required by the CAISO. C.6.2 Commencement of an Outage. The Seller shall not begin any Planned Outage without the prior approval of NCPA and the CAISO. C.6.3 Forced Outages C.6.3.1 The Seller shall report the Forced Outages to NCPA within twenty (20) minutes of such Outages. C.6.3.2 The Seller’s notice of a Forced Outage sent to NCPA shall include the reason for the Outage (if known), expected duration of the Outage, and the Capacity reduction. FINAL 12/28/12 F-2-14 C.6.3.3 By the end of the next Business Day following the day on which a Forced Outage has occurred, the Seller shall provide to NCPA a detailed written report, specifying the reason for the Outage, expected duration of such Outage, capacity reduction, and actions taken to mitigate such Outage. C.6.4 Return to Service. The Seller shall notify NCPA as soon as possible, but in any case before the Generating Facility is returned to service. C.7 Notices. All Scheduling notices and Schedules shall be submitted to NCPA by phone, fax or email, or other means as may be mutually agreed by the Parties, to the persons designated in Exhibit “PPA-F.” C.8 Changes in Scheduling and Outage Procedure. The Buyer shall revise Exhibit “PPA-C,” or, as appropriate, give written notice to the Seller regarding the revision, and issue a new Exhibit “PPA-C,” which shall then become part of the Agreement to reflect changes in the scheduling and outage notification procedure. FINAL 12/28/12 G-1 APPENDIX G PRELIMINARY CEQA CHECKLIST [TO BE PROVIDED BY ARI] FINAL 12/28/12 H-1 APPENDIX H [RESERVED FOR FUTURE USE] FINAL 12/28/12 I-1 APPENDIX I ASSIGNMENT PROVISIONS The Contract shall be subject to the following limitations on transfer or assignment: (a) Neither party shall assign its rights nor delegate or otherwise transfer its obligations under this Contract to any other person without the prior written consent of the other party. Any such assignment made without the consent of the other party shall be void and the attempted assignment shall constitute a material breach of this agreement. The City may, however, assign its rights and delegate its obligations under this agreement to a joint powers authority, district, or similar governmental entity without the prior written consent of Contractor. For purposes of this section, “assignment” shall include, but not be limited to: (1) A sale, exchange or other transfer to a third party of at least twenty-five percent of Contractor’s assets dedicated to service under this agreement; and (2) A sale, exchange or other transfer to a third party, including other shareholders, of outstanding common stock of Contractor which may result in a change of control of Contractor; and (3) Any dissolution, reorganization, consolidation, merger, recapitalization, stock issuance or re-issuance, voting trust, pooling agreement, escrow arrangement, liquidation or other transaction which Contractor or any of its shareholders are a party which results in a change of ownership or control of Contractor; and (4) Any assignment by operation of law, including insolvency or bankruptcy, assignment for the benefit of creditors, writ of attachment for an execution being levied against this agreement, appointment of a receiver taking possession of Contractor’s property, or transfers occurring in a probate or other estate proceeding; and (5) Any combination of the foregoing (whether or not in related or contemporaneous transactions, which has the effect of any such transfer or change of ownership, or change of control of Contractor. (b) Contractor acknowledges that this agreement involves rendering a vital service to City residents and businesses, and that the City has selected Contractor to perform the services specified herein based on: (1) Contractor’s experience, skill and reputation for conducting its solid waste management operations in a safe, effective and responsible fashion, at all times in keeping with applicable local, state and federal environmental laws, regulations and best waste management practices; and (2) Contractor’s financial resources to maintain the required equipment and to support its indemnity obligations to the City under this agreement. (c) If Contractor requests the City’s consideration of and consent to an assignment, the City may deny or approve such request at its discretion. The City will not unreasonably withhold FINAL 12/28/12 I-2 its consent. The City is concerned about the possibility that assignment could result in significant rate increases, solid waste disposal problems for the City, environmental problems, as well as a change in the quality of solid waste service for City residents. Accordingly, the following standards have been set to ensure that assignment will result in continued quality service. At a minimum, no request by Contractor for consent to an assignment need be considered by the City unless and until Contractor has met the following requirements: (1) Contractor shall undertake to pay the City their reasonable expenses (including attorneys’ fees and other professional services fees) to investigate the suitability of any proposed assignee, and to review and finalize any documentation required as a condition for approving any such assignment; (2) Contractor shall furnish the City with audited financial statements of the proposed assignee’s operations for the immediately preceding three operating years; (3) Contractor shall furnish the City with satisfactory proof: (A) That the proposed assignee has solid waste management experience of sufficient type and duration to ensure it can fulfill the terms of this agreement, including operation of the conversion technology involved in the project on a scale equal to or exceeding the scale of operations conducted by Contractor under this agreement , (B) That in the last five years, the proposed assignee or affiliates has not suffered any significant citations or other censure from any federal, state or local agency having jurisdiction over its waste management operations due to any significant failure to comply with state, federal or local environmental laws, and that the assignee has provided the City with a complete list of such citations and censures, (C) That the proposed assignee has at all times conducted its operations in an environmentally safe and conscientious fashion, (D) That the proposed assignee conducts its solid waste management practices in accordance with sound waste management practices in full compliance with all federal, state and local laws regulating the collection and disposal of solid waste, including hazardous wastes, and (E) Of any other information required by the City to ensure the proposed assignee can fulfill the terms of this agreement in a timely, safe and effective manner. (4) The assignee shall assume all duties and obligations, whether precedent or otherwise. (5) The Contractor shall remain secondarily liable for the agreement. (d) Under no circumstances shall the City be obliged to consider any proposed assignment if Contractor is in default of its agreement at any time during the period of consideration. FINAL 12/28/12 J-1-1 APPENDIX J-1 FORM OF GUARANTY AGREEMENT (EXAMPLE FOR E/C FACILITY) GUARANTY AGREEMENT THIS GUARANTY AGREEMENT dated as of ______________ is made by ___________(insert Guarantor's name), (the “Guarantor”), to the City of Palo Alto (the “City”), as a political subdivision and municipality of the State of California. Background The Contractor has entered into a Service Contract dated as of ______________ (the “Contract”) with the City to which the City has agreed, under certain terms and conditions, to deliver Acceptable Feedstock to the E/C Facility to be constructed and operated by the Contractor for the purpose of conversion and energy production. One of the conditions to the performance by the City of the Contract is the guaranty of the Contractor’s obligations by the Guarantor. The Guarantor is willing to make this Guaranty because the Guaranty will result in direct financial benefit to the Guarantor. Consequently, the Guarantor, for good and valuable consideration, the receipt of which is hereby acknowledged, agrees as follows: SECTION 1. GUARANTY. (a) The Guarantor hereby absolutely, presently, irrevocably and unconditionally guarantees the City (1) the full and prompt payment when due of each and all of the payments required to be credited or made by the Contractor under the Contract (including all amendments and supplements thereto) to, or for the account of, the City, and (2) the full and prompt performance and observance of each and all of the covenants and obligations under the Contract, and (3) the full and prompt performance of all of the covenants and agreements to be performed under the E/C Facility Site Lease (collectively, the “Obligations”). SECTION 2. GUARANTY OF PAYMENT AND PERFORMANCE. This Guaranty shall constitute a guaranty of payment and or performance and not of collection, and Guarantor specifically agrees that in the event of a failure by the Contractor to pay or perform any Obligation, the City shall have the right to proceed first and directly against the Contractor or exhaust any other remedies against the Contractor or against any other Party with responsibilities under this Guarantee and the Contract. without limiting the foregoing, the Guarantor agrees that it shall not be necessary, and that the Guarantor shall not be entitled to require, as a condition of enforcing the liability of the Guarantor hereunder, that the City (1) file suit to obtain or assert a claim for personal judgment against the Contractor, (2) make any other effort to obtain payment or performance of the Obligations from the Contractor other than providing the Contractor with any demands or notice of default as may be required by the terms of the Contract, (3) foreclose against or seek to realize upon any security for the obligations set forth in the Contract, or (4) exercise or assert any other FINAL 12/28/12 J-1-2 right or remedy to which the City are or may be entitled in connection with the obligations or any other right security therefore of any other guarantee thereof, except to the extent that any such exercise or assertion of such other right or remedy may be conditioned precedent to the obligations of the Contract. Upon any unexcused failure by the Contractor in the payment or performance of any obligation and the giving such notice, if any, to the City as may be required in connection with such obligation, the liability of the Guarantor shall be effective and shall immediately be paid or performed. The City shall have the right to proceed against the Guarantor without notice to, or the consent or approval of, the Contractor, Guarantor or any other person, and without the necessity of joining or being joined by the or any other person in any such enforcement proceeding. SECTION 3. GUARANTY ABSOLUTE AND UNCONDITIONAL. The obligations of the Guarantor hereunder shall remain in full force and effect until the Contractor shall have fully discharged the obligations in accordance with their respective terms, and shall not be subject to any claim of the Guarantor against the City, or any other person other than a claim that the matter giving rise to the City’s claim is the subject of dispute resolution in good faith under the Contract or in the courts of the State of California. Unless otherwise waived by the Guarantor pursuant to the terms of this Guaranty, the Guarantor shall be entitled to assert any rights of set-off, counterclaim or defense available to the Contractor or its partners with respect to any obligations in the Contract, and if the Guarantor shall assert such right to set-off, counterclaim or defense and thereafter such a claim is prosecuted in good faith by appropriate negotiation or legal proceedings, the Guarantor’s obligation to make payment pursuant to this Guaranty shall be automatically suspended pending resolution of such claim, but only to the extent of the amount of such claim. In the event any such right of set-off, counterclaim or defense shall be determined adversely to the Contractor or its partners, the Guarantor agrees to be bound by such determination. Without limiting the foregoing, the obligations of the Guarantor hereunder shall not be released, discharged or in any way affected by reason of any of the following (whether with or without notice to, acknowledge by further consent of the Guarantor): (1) the extension or renewal of this Guaranty or the Contract. (2) any exercise or failure, omission or delay by the City in the exercise of any right, power or remedy conferred on the City by this Guaranty or the Contract or by law; (3) any permitted transfer or assignment of right or obligations under the Contract or other transfer of any of any interests in the E/C Facility or the Site; (4) any permitted assignment for the purpose of creating a security interest or mortgage of all or any part of the respective interests of the Contractor, the City or any person in the Contract, or in any transaction contract or in any other agreements affecting the E/C Facility or Site; (5) any amendment, change or modification in respect of any of the obligations, or the release or discharge of the Contractor from the performance or observance of any of the obligations by operation of law; FINAL 12/28/12 J-1-3 (6) any renewal, amendment, change or modification in respect of any of the terms or conditions of the Contract, or in any transaction contract; (7) any failure of title with respect to all, or any part of the respective interests in the Site or the E/C Facility, except to the extent such failure of title prevents or delays the performance of any obligations hereunder; (8) the voluntary or involuntary liquidation, dissolution, sale or other disposition of all or substantially all the assets, marshalling or assets and liabilities, receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization, moratorium, arrangement, composition with creditors or readjustment of, or other similar proceedings against the Contractor, the Guarantor, or any other party to a transaction contract, or any of the property of any of them, or any allegation or contest of the validity of the Guaranty, the Contract, or any other transaction contract in any such proceedings (it is specifically understood, consented and agreed to that, to the extent permitted by law, this Guaranty shall remain and continue in full force and effect and shall be enforceable against the Guarantor to the same extent and with the same force and affect as if any such proceeding had not been instituted, it being the intent and purpose of this Guaranty that Guarantor shall and does hereby waive all rights and benefits which might accrue to it by reason of any such proceeding); (9) any sale or other transfer by the Guarantor of any of the capital stock or other interest of the Guarantor in the now or hereafter owned, directly or indirectly, by the Guarantor, or any changes in composition of the interests in the ; (10) any failure on the part of the Contractor for any reason to perform or comply with any agreement with the Guarantor; (11) any release or impairment of the security pledged under any indenture, or any furnishing or acceptance of any additional security; (12) the release, substitution or replacement in accordance with the terms of the Contract of any property subject thereto or any redelivery, repossession, surrender or destruction of any such property, in whole or in part; (13) any failure of any party to the Contract, or any transaction contract to mitigated damages resulting from any default thereunder; (14) the merger or consolidation of any party to a transaction contract into or with a any other person, or any sale, lease, transfer, abandonment or other disposition of any or all of the property of any of the foregoing to any person except to the extent that any such occurrence prevents or delays the performance of any obligations hereunder; (15) any legal disability or incapacity of any party to a transaction contract, except to the extent that any such occurrence prevents or delays the performance of any obligations hereunder; FINAL 12/28/12 J-1-4 (16) that entering into any transaction contract by any person was invalid or in excess of the powers of such party; or (17) that the rights of any person as against any party to a transaction contract have become barred by any applicable statute of limitation or otherwise. Should any money due or owing under this Guaranty not be recoverable from Guarantor due to any of the matters specified as recoverable from the Guarantor due to any of the matters specified in subparagraph (1) through (17) above, or otherwise, then, in any such case, such money, together with all additional sums due hereunder, shall nevertheless be recoverable from the Guarantor as though Guarantor were the principal debtor in respect thereof and not merely a guarantor and shall be paid by Guarantor forthwith. SECTION 4. WAIVERS BY THE GUARANTOR. The Guarantor hereby unconditionally and irrevocably waives: (1) notice from the City of its acceptance of this Guaranty; (2) notice of any of the events referred to in Section 3 of the Guaranty, except to the extent that notice is required to be given as a condition to the enforcement of Obligations; (3) to the fullest extent lawfully possible, all notices which may be required by statute, rule of law or otherwise to preserve intact any rights against the Guarantor, including, without limitation, presentment to or demand of any payment from the Contractor with respect to the Obligations, and notice to the of default or protest for nonpayment or failure by the Contractor to perform and comply with the obligations, except any notice provisions to the Contractor required pursuant to the Contract; (4) to the fullest extent lawfully possible, all defenses which may now or hereafter exist by virtue of any stay, valuation, moratorium or similar law in any way limiting or restricting the liability of the Guarantor hereunder, except the sole defense of payment and performance; (5) any right to require a proceeding first against the Contractor or any other Person or the security provided by or under any agreement; (6) any requirement that the Contractor or any other Person be joined as a party to any proceeding for the enforcement of any term of any agreement; (7) the filing of claims by the City in the event of the receivership or bankruptcy of the Contractor; and (8) all demands upon the Contractor or any other person and all other formalities the omission of any of which, or delay in performance of which, might, but for the provisions of this Section 4, by rule of law or otherwise, constitute grounds for relieving or discharging the Guarantor, in whole or in part, from its absolute, present, irrevocable, unconditional and continuing obligations hereunder, it being the intention of the Guarantor that its obligations FINAL 12/28/12 J-1-5 hereunder shall not be discharged except by payment and performance and then only to the extent of such payment and performance. SECTION 5. PAYMENT OF COSTS AND EXPENSES. The Guarantor agrees to pay the City on demand all reasonable costs and expenses, legal or otherwise (including counsel fees), incurred by or on behalf of the City in enforcing or attempting to enforce payment or performance and observance of the obligations against the Guarantor , or in enforcement or attempting to enforce the covenants and agreements of the Guarantor in this Guaranty, whether by suit or otherwise, other than the costs and expenses that the City incurred in performing any of its obligations under the Contract or applicable transaction contract where such obligations are a condition precedent of performance by the Contractor of its obligations. SECTION 6. SUBORDINATION OF RIGHTS. The Guarantor agrees that any right of subrogation or contribution which it may have at any time against the Contractor as a result of any payment or performance hereunder in hereby fully subordinated to the rights of the City hereunder and under the Contract and the agreements, and that the Guarantor shall not recover or seek to recover any payment made by it hereunder from the Contractor until the Contractor and the Guarantor shall have fully and satisfactorily paid or performed and discharged the obligations. SECTION 7. SEPARATE OBLIGATIONS. The obligations of the Guarantor to make any payment or to perform and discharge any other duties, agreements, covenants, undertakings or obligations hereunder shall (1) to the extent permitted by Applicable Law, constitute separate and independent obligations of the Guarantor from its other obligations under this Guaranty, (2) give rise to separate and independent cause of action against the Guarantor and (3) apply irrespective of any indulgence granted from time to time by the City. SECTION 8. TERM OF GUARANTY. This Guaranty shall continue in effect until all the obligations of the Contractor have been paid or performed, as the case may be, and the time has expired under Applicable Law, that would permit the recapture of any payment made by the Contractor pursuant to the Contract or any agreement by or on behalf of the Contractor or its creditors. SECTION 9. REPRESENTATIONS AND WARRANTIES OF THE GUARANTOR. The Guarantor hereby represents and warrants that: (a) Existence and Powers. The Guarantor is duly organized and validly existing as a corporation and is able to conduct business under the laws of the State of California, with full legal right, power and authority to enter into and perform its obligations under this Guaranty. (b) Due Authorization and Biding Obligation. The Guarantor has duly authorized the execution and delivery of this Guaranty, and this Guaranty has been duly executed and delivered by the Guarantor and constitutes the legal, valid and binding obligation of the Guarantor, enforceable against the Guarantor in accordance with its terms, except insofar FINAL 12/28/12 J-1-6 as such enforcement may be affected by bankruptcy, insolvency, moratorium and other laws affecting creditors’ rights generally and the availability of specific enforcement or injunctive relief and other equitable remedies is subject to the discretion of the court before which any proceeding may therefore be brought. (c) No Conflict. Neither the execution or delivery by the Guarantor of this Guaranty, nor the performance by the Guarantor of its obligations hereunder (1) conflicts with, violates, or results in a breach of any law or government regulation applicable to the Guarantor, (2) conflict with, violates or results in a breach of any term or condition of the Guarantor’s corporate chapter or by-law or any judgment, decree, agreement or instrument, or (3) will result in the creation or imposition of any lien, encumbrance or change of any nature whatsoever upon any of the properties or assets of the Guarantor, except as expressly contemplated hereby. (d) No Governmental Approval Required. No approval, authorization, order or consent or, or declaration, registration or filing with any governmental authority is required for the valid execution and delivery by the Guarantor of this Guaranty, except such as shall have been duly obtained or made. (e) No Litigation. There is no action, suit or other proceeding, at law or in equity, before or by any court or governmental authority, pending or, to the Guarantor’s best knowledge, threatened against the Guarantor wherein an unfavorable decision, ruling or finding would materially and adversely affect the validity or enforceability of the Guaranty, or which would materially and adversely affect the performance by the Guarantor or its obligations hereunder. (f) No Legal Prohibition. The Guarantor has no knowledge of any Applicable Law in effect on the date as of which this representation is being made which would prohibit the performance by the Guarantor of this Guarantor and the transactions contemplated hereby. (g) Consent to Agreements. The Guarantor is fully aware of and consents to the terms and conditions of the Contract and the agreements. SECTION 10. MAINTENANCE OF CORPORATE EXISTENCE. The Guarantor covenants that during the term of this Guaranty it will maintain its corporate existence, will not dissolve or otherwise dispose of all or substantially all its assets and will not consolidate with or merge into another person or entity, or permit one or more other persons or entities to consolidate with or merge into it, or sell or otherwise transfer to another person or entity all or substantially all of its assets as an entirety and thereafter dissolve unless the successor person or entity(if other than the Guarantor) (i) assumes in writing all then obligations of the Guarantor hereunder and, if required by law, is duly qualified to do business in the State, (ii) delivers to the City an opinion of counsel, which counsel shall be reasonably acceptable to the City, to the effect that its obligations under this Guaranty are legal, valid, binding and enforceable, subject to applicable bankruptcy, insolvency or any other similar laws and to laws affecting creditors’ rights generally and the availability of specific enforcement or injunctive relief and other equitable remedies in the court before which any proceeding therefore may be brought. FINAL 12/28/12 J-1-7 SECTION 11. CONTINUANCE OF OBLIGATIONS. The provisions of Section 10 shall continue in full force and effect after the occurrence of any event described in Section 10. SECTION 12. ASSIGNMENT. This Agreement may not be assigned by the Guarantor without the prior written consent of the City, subject to the provisions of Section 10 of this Guaranty. SECTION 13. QUALIFICATION IN CALIFORNIA. The Guarantor agrees that, so long as this Guaranty is in effect and if required by law to permit this Guaranty to be enforced, the Guarantor will be duly qualified to do business in the State of California. SECTION 14. AGENT FOR SERVICE. The Guarantor irrevocably: (1) agrees that any suit, action or other legal proceeding arising out of this Guaranty may be brought in the courts of the State of California; (2) consents to the jurisdiction of the Superior Court of Santa Clara County in any such suit, action or proceedings; and (3) waives any objection which it may have to the venue of any such suit, action or proceeding. During the term of this Guaranty, the Guarantor irrevocably designates the Secretary of State of the State of California, and designates the Contractor, as its agents to accept and acknowledge in its behalf service of any and all process in any such suit, action or proceeding brought in any such court and agrees and consents that any such service of process upon either agent shall be taken and held to be valid personal service upon the Guarantor whether or not the Guarantor shall then be doing, or at any time shall have done, business within the State of California, and that any such service of process shall be of the same force and validity as if the Guarantor had itself accepted the service of process. Such agents shall not have any power or authority to enter any appearance or to file any pleadings in connection with any suit, action or other legal proceeding against the Guarantor or to conduct the defense of any such suit, action or any other legal proceedings. SECTION 15. BINDING EFFECT. This Guaranty shall inure to the benefit of the City and shall be binding upon the Guarantor and its successors and assigns. SECTION 16. AMENDMENTS, CHANGE AND MODIFICATIONS. This Guaranty may not be amended, changed or modified and none of its provisions may be waived, except with the prior written consent of the City and the Guarantor. SECTION 17. COURSE OF DEALINGS. No failure or delay by the City in exercising any right, power or privilege hereunder or under the Contract shall operate as a waiver thereof nor shall any single or partial exercises thereof preclude any other right, power or privilege. The rights and remedies provided herein shall be cumulative and not exclusive of any rights or remedies provided in the Contract or by law or equity. No waiver, amendment, release or modification of this Guaranty shall be established by conduct, custom or course of dealing, but solely by an instrument in writing duly executed by the party against whom such waiver, amendment, release or modification is sought to be enforced. FINAL 12/28/12 J-1-8 SECTION 18. NOTICES. Any notices or communications required or permitted hereunder shall be in writing and shall be sufficiently given if telefaxed, sent via electronic mail, delivered in person, or sent by certified or registered mail, return receipt requested, postage prepaid, to the following addresses, or to such other addresses as any of the recipients may from time to time designate by notice given in writing. If to the Guarantor: [Insert] If to the City: [Insert] SECTION 19. CAPITALIZATION TERMS. All capitalization terms not defined in this Guaranty shall have the meaning given in the RFP. SECTION 20. GOVERNING LAW. This Agreement shall be construed in accordance with and governed by the laws of the California. In the event that changes in law, regulations or practices not already known or anticipated as of this Agreement become effective, or changes in relevant permits materially alter the procedures applicable to the parties’ performance of their respective obligations hereunder, the parties will endeavor in good faith to negotiate appropriate and mutually agreeable amendments to this Agreement or separate protocols to account for such changes, attempting in all events to restore or maintain for each Party as nearly as possible, its respective rights and obligations and benefits under this Agreement. IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be executed in its name and on its behalf by its duly authorized officer as of the [INSERT DATE] GUARANTOR NAME By:_____________________________ Title: ___________________________ CITY of PALO ALTO By:____________________________ Title:___________________________ FINAL 12/28/12 J-2-1 APPENDIX J-2 FORM OF GUARANTY AGREEMENT (EXAMPLE FOR EXPORT) GUARANTY AGREEMENT THIS GUARANTY AGREEMENT dated as of ______________ is made by ___________(insert Guarantor's name), (the “Guarantor”), to the City of Palo Alto (the “City”), as a political subdivision and municipality of the State of California. Background The Contractor has entered into a Service Contract dated as of ______________ (the “Contract”) with the City to which the City has agreed, under certain terms and conditions, to deliver or cause to be delivered to the Contractor Acceptable Feedstock which the Contractor shall accept, transport, process, dispose of or otherwise manage, as provided for in the Contract. One of the conditions to the performance by the City of the Service Contract is the guaranty of the Contractor’s obligations by the Guarantor. The Guarantor is willing to make this Guaranty because the Guaranty will result in direct financial benefit to the Guarantor. Consequently, the Guarantor, for good and valuable consideration, the receipt of which is hereby acknowledged, agrees as follows: SECTION 1. GUARANTY. (a) The Guarantor hereby absolutely, presently, irrevocably and unconditionally guarantees the City (1) the full and prompt payment when due of each and all of the payments required to be credited or made by the Contractor under the Contract (including all amendments and supplements thereto) to, or for the account of, the City and (2) the full and prompt performance and observance of each and all of the covenants and obligations under the Service Contract (collectively, the “Obligations”). SECTION 2. GUARANTY OF PAYMENT AND PERFORMANCE. This Guaranty shall constitute a guaranty of payment and or performance and not of collection, and Guarantor specifically agrees that in the event of a failure by the Contractor to pay or perform any Obligation, the City shall have the right to proceed first and directly against the Contractor or exhaust any other remedies against the Contractor or against any other Party with responsibilities under this Guarantee and the Contract. without limiting the foregoing, the Guarantor agrees that it shall not be necessary, and that the Guarantor shall not be entitled to require, as a condition of enforcing the liability of the Guarantor hereunder, that the City (1) file suit to obtain or assert a claim for personal judgment against the Contractor, (2) make any other effort to obtain payment or performance of the Obligations from the Contractor other than providing the Contractor with any demands or notice of default as may be required by the terms of the Contract, (3) foreclose against or seek to realize upon any security for the obligations set forth in the Service Contract, or (4) exercise or assert any other right or remedy to which the City is or may be entitled in connection with the Obligations or any other right security therefore of any other guarantee thereof, except to FINAL 12/28/12 J-2-2 the extent that any such exercise or assertion of such other right or remedy may be conditioned precedent to the Obligations of the Contract. Upon any unexcused failure by the Contractor in the payment or performance of any Obligation and the giving such notice, if any, to the City as may be required in connection with such Obligation, the liability of the Guarantor shall be effective and shall immediately be paid or performed. The City shall have the right to proceed against the Guarantor without notice to, or the consent or approval of, the Contractor, Guarantor or any other person, and without the necessity of joining or being joined by the or any other person in any such enforcement proceeding. SECTION 3. GUARANTY ABSOLUTE AND UNCONDITIONAL. The obligations of the Guarantor hereunder shall remain in full force and effect until the Contractor shall have fully discharged the Obligations in accordance with their respective terms, and shall not be subject to any claim of the Guarantor against the City or any other person other than a claim that the matter giving rise to the City’s’ claim is the subject of dispute resolution in good faith under the Contract or in the courts of the State of California. Unless otherwise waived by the Guarantor pursuant to the terms of this Guaranty, the Guarantor shall be entitled to assert any rights of set-off, counterclaim or defense available to the Contractor or its partners with respect to any obligations in the Contract, and if the Guarantor shall assert such right to set-off, counterclaim or defense and thereafter such a claim is prosecuted in good faith by appropriate negotiation or legal proceedings, the Guarantor’s obligation to make payment pursuant to this Guaranty shall be automatically suspended pending resolution of such claim, but only to the extent of the amount of such claim. In the event any such right of set-off, counterclaim or defense shall be determined adversely to the Contractor or its partners, the Guarantor agrees to be bound by such determination. Without limiting the foregoing, the obligations of the Guarantor hereunder shall not be released, discharged or in any way affected by reason of any of the following (whether with or without notice to, acknowledge by further consent of the Guarantor): (1) the extension or renewal of this Guaranty or the Contract. (2) any exercise or failure, omission or delay by the City in the exercise of any right, power or remedy conferred on the City by this Guaranty or the Contract or by law; (3) any permitted transfer or assignment of right or obligations under the Contract or other transfer of any of any interests in the Contract; (4) any permitted assignment for the purpose of creating a security interest or mortgage of all or any part of the respective interests of the Contractor, City or any person in the Contract, or in any transaction contract or in any other agreements affecting the Contractor, the Services and the Contract; (5) any amendment, change or modification in respect of any of the Obligations, or the release or discharge of the Contractor from the performance or observance of any of the Obligations by operation of law; (6) any renewal, amendment, change or modification in respect of any of the terms or conditions of the Contract, or in any transaction contract; FINAL 12/28/12 J-2-3 (7) any failure of title with respect to all, or any part of, the Contractor’s interests in its sites, facilities or associated assets necessary to the provision of Services under the Contract; (8) the voluntary or involuntary liquidation, dissolution, sale or other disposition of all or substantially all the assets, marshalling or assets and liabilities, receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization, moratorium, arrangement, composition with creditors or readjustment of, or other similar proceedings against the Contractor, the Guarantor, or any other party to a transaction contract, or any of the property of any of them, or any allegation or contest of the validity of the Guaranty, the Contract, or any other transaction contract in any such proceedings (it is specifically understood, consented and agreed to that, to the extent permitted by law, this Guaranty shall remain and continue in full force and effect and shall be enforceable against the Guarantor to the same extent and with the same force and affect as if any such proceeding had not been instituted, it being the intent and purpose of this Guaranty that Guarantor shall and does hereby waive all rights and benefits which might accrue to it by reason of any such proceeding); (9) any sale or other transfer by the Guarantor of any of the capital stock or other interest of the Guarantor in the now or hereafter owned, directly or indirectly, by the Guarantor, or any changes in composition of the interests in the ; (10) any failure on the part of the Contractor for any reason to perform or comply with any agreement with the Guarantor; (11) any release or impairment of the security pledged under any indenture, or any furnishing or acceptance of any additional security; (12) the release, substitution or replacement in accordance with the terms of the Contract of any property subject thereto or any redelivery, repossession, surrender or destruction of any such property, in whole or in part; (13) any failure of any party to the Contract, or any transaction contract to mitigated damages resulting from any default thereunder; (14) the merger or consolidation of any party to a transaction contract into or with a any other person, or any sale, lease, transfer, abandonment or other disposition of any or all of the property of any of the foregoing to any Person except to the extent that any such occurrence prevents or delays the performance of any obligations hereunder; (15) any legal disability or incapacity of any party to a transaction contract, except to the extent that any such occurrence prevents or delays the performance of any obligations hereunder; (16) that entering into any transaction contract by any Person was invalid or in excess of the powers of such party; or FINAL 12/28/12 J-2-4 (17) that the rights of any person as against any party to a transaction contract have become barred by any applicable statute of limitation or otherwise. Should any money due or owing under this Guaranty not be recoverable from Guarantor due to any of the matters specified as recoverable from the Guarantor due to any of the matters specified in subparagraph (1) through (17) above, or otherwise, then, in any such case, such money, together with all additional sums due hereunder, shall nevertheless be recoverable from the Guarantor as though Guarantor were the principal debtor in respect thereof and not merely a guarantor and shall be paid by Guarantor forthwith. SECTION 4. WAIVERS BY THE GUARANTOR. The Guarantor hereby unconditionally and irrevocably waives: (1) notice from the City of its acceptance of this Guaranty; (2) notice of any of the events referred to in Section 3 of the Guaranty, except to the extent that notice is required to be given as a condition to the enforcement of Obligations; (3) to the fullest extent lawfully possible, all notices which may be required by statute, rule of law or otherwise to preserve intact any rights against the Guarantor, including, without limitation, presentment to or demand of any payment from the Contractor with respect to the Obligations, and notice to the of default or protest for nonpayment or failure by the Contractor to perform and comply with the Obligations, except any notice provisions to the Contractor required pursuant to the Contract; (4) to the fullest extent lawfully possible, all defenses which may now or hereafter exist by virtue of any stay, valuation, moratorium or similar law in any way limiting or restricting the liability of the Guarantor hereunder, except the sole defense of payment and performance; (5) any right to require a proceeding first against the Contractor or any other person or the security provided by or under any agreement; (6) any requirement that the Contractor or any other person be joined as a party to any proceeding for the enforcement of any term of any agreement; (7) the filing of claims by the City in the event of the receivership or bankruptcy of the Contractor; and (8) all demands upon the Contractor or any other person and all other formalities the omission of any of which, or delay in performance of which, might, but for the provisions of this Section 4, by rule of law or otherwise, constitute grounds for relieving or discharging the Guarantor, in whole or in part, from its absolute, present, irrevocable, unconditional and continuing obligations hereunder, it being the intention of the Guarantor that its obligations hereunder shall not be discharged except by payment and performance and then only to the extent of such payment and performance. FINAL 12/28/12 J-2-5 SECTION 5. PAYMENT OF COSTS AND EXPENSES. The Guarantor agrees to pay the City on demand all reasonable costs and expenses, legal or otherwise (including counsel fees), incurred by or on behalf of the City in enforcing or attempting to enforce payment or performance and observance of the Obligations against the Guarantor or the Back-Up Guarantor, or in enforcement or attempting to enforce the covenants and agreements of the Guarantor in this Guaranty, whether by suit or otherwise, other than the costs and expenses that the City incurred in performing any of its Obligations under the Contract or applicable transaction contract where such obligations are a condition precedent of performance by the Contractor of its Obligations. SECTION 6. SUBORDINATION OF RIGHTS. The Guarantor agrees that any right of subrogation or contribution which it may have at any time against the Contractor as a result of any payment or performance hereunder in hereby fully subordinated to the rights of the City hereunder and under the Contract and the agreements, and that the Guarantor shall not recover or seek to recover any payment made by it hereunder from the Contractor until the Contractor and the Guarantor shall have fully and satisfactorily paid or performed and discharged the Obligations. SECTION 7. SEPARATE OBLIGATIONS. The obligations of the Guarantor to make any payment or to perform and discharge any other duties, agreements, covenants, undertakings or obligations hereunder shall (1) to the extent permitted by Applicable Law, constitute separate and independent obligations of the Guarantor from its other obligations under this Guaranty, (2) give rise to separate and independent cause of action against the Guarantor and (3) apply irrespective of any indulgence granted from time to time by the City. SECTION 8. TERM OF GUARANTY. This Guaranty shall continue in effect until all the Obligations of the Contractor have been paid or performed, as the case may be, and the time has expired under Applicable Law, that would permit the recapture of any payment made by the Contractor pursuant to the Contract or any agreement by or on behalf of the Contractor or its creditors. SECTION 9. REPRESENTATIONS AND WARRANTIES OF THE GUARANTOR. The Guarantor hereby represents and warrants that: (a) Existence and Powers. The Guarantor is duly organized and validly existing as a corporation and is able to conduct business under the laws of the State of California, with full legal right, power and authority to enter into and perform its obligations under this Guaranty. (b) Due Authorization and Biding Obligation. The Guarantor has duly authorized the execution and delivery of this Guaranty, and this Guaranty has been duly executed and delivered by the Guarantor and constitutes the legal, valid and binding obligation of the Guarantor, enforceable against the Guarantor in accordance with its terms, except insofar as such enforcement may be affected by bankruptcy, insolvency, moratorium and other laws affecting creditors’ rights generally and the availability of specific enforcement or injunctive relief and other equitable remedies is subject to the discretion of the court before which any proceeding may therefore be brought. FINAL 12/28/12 J-2-6 (c) No Conflict. Neither the execution or delivery by the Guarantor of this Guaranty, nor the performance by the Guarantor of its obligations hereunder (1) conflicts with, violates, or results in a breach of any law or government regulation applicable to the Guarantor, (2) conflict with, violates or results in a breach of any term or condition of the Guarantor’s corporate chapter or by-law or any judgment, decree, agreement or instrument, or (3) will result in the creation or imposition of any lien, encumbrance or change of any nature whatsoever upon any of the properties or assets of the Guarantor, except as expressly contemplated hereby. (d) No Governmental Approval Required. No approval, authorization, order or consent or, or declaration, registration or filing with any governmental authority is required for the valid execution and delivery by the Guarantor of this Guaranty, except such as shall have been duly obtained or made. (e) No Litigation. There is no action, suit or other proceeding, at law or in equity, before or by any court or governmental authority, pending or, to the Guarantor’s best knowledge, threatened against the Guarantor wherein an unfavorable decision, ruling or finding would materially and adversely affect the validity or enforceability of the Guaranty, or which would materially and adversely affect the performance by the Guarantor or its obligations hereunder. (f) No Legal Prohibition. The Guarantor has no knowledge of any Applicable Law in effect on the date as of which this representation is being made which would prohibit the performance by the Guarantor of this Guarantor and the transactions contemplated hereby. (g) Consent to Agreements. The Guarantor is fully aware of and consents to the terms and conditions of the Contract and the agreements. SECTION 10. MAINTENANCE OF CORPORATE EXISTENCE. The Guarantor covenants that during the term of this Guaranty it will maintain its corporate existence, will not dissolve or otherwise dispose of all or substantially all its assets and will not consolidate with or merge into another person or entity, or permit one or more other persons or entities to consolidate with or merge into it, or sell or otherwise transfer to another person or entity all or substantially all of its assets as an entirety and thereafter dissolve unless the successor person or entity(if other than the Guarantor) (i) assumes in writing all then obligations of the Guarantor hereunder and, if required by law, is duly qualified to do business in the State, (ii) delivers to the City an opinion of counsel, which counsel shall be reasonably acceptable to the City, to the effect that its obligations under this Guaranty are legal, valid, binding and enforceable, subject to applicable bankruptcy, insolvency or any other similar laws and to laws affecting creditors’ rights generally and the availability of specific enforcement or injunctive relief and other equitable remedies in the court before which any proceeding therefore may be brought. SECTION 11. CONTINUANCE OF OBLIGATIONS. The provisions of Section 10 shall continue in full force and effect after the occurrence of any event described in Section 10. FINAL 12/28/12 J-2-7 SECTION 12. ASSIGNMENT. This Agreement may not be assigned by the Guarantor without the prior written consent of the City, subject to the provisions of Section 10 of this Guaranty. SECTION 13. QUALIFICATION IN CALIFORNIA. The Guarantor agrees that, so long as this Guaranty is in effect and if required by law to permit this Guaranty to be enforced, the Guarantor will be duly qualified to do business in the State of California. SECTION 14. AGENT FOR SERVICE. The Guarantor irrevocably: (1) agrees that any suit, action or other legal proceeding arising out of this Guaranty may be brought in the courts of the State of California; (2) consents to the jurisdiction of the Superior Court of Santa Clara County in any such suit, action or proceedings; and (3) waives any objection which it may have to the venue of any such suit, action or proceeding. During the term of this Guaranty, the Guarantor irrevocably designates the Secretary of State of the State of California, and designates the Contractor, as its agents to accept and acknowledge in its behalf service of any and all process in any such suit, action or proceeding brought in any such court and agrees and consents that any such service of process upon either agent shall be taken and held to be valid personal service upon the Guarantor whether or not the Guarantor shall then be doing, or at any time shall have done, business within the State of California, and that any such service of process shall be of the same force and validity as if the Guarantor had itself accepted the service of process. Such agents shall not have any power or authority to enter any appearance or to file any pleadings in connection with any suit, action or other legal proceeding against the Guarantor or to conduct the defense of any such suit, action or any other legal proceedings. SECTION 15. BINDING EFFECT. This Guaranty shall inure to the benefit of the City and shall be binding upon the Guarantor and its successors and assigns. SECTION 16. AMENDMENTS, CHANGE AND MODIFICATIONS. This Guaranty may not be amended, changed or modified and none of its provisions may be waived, except with the prior written consent of the City and the Guarantor. SECTION 17. COURSE OF DEALINGS. No failure or delay by the City in exercising any right, power or privilege hereunder or under the Contract shall operate as a waiver thereof nor shall any single or partial exercises thereof preclude any other right, power or privilege. The rights and remedies provided herein shall be cumulative and not exclusive of any rights or remedies provided in the Contract or by law or equity. No waiver, amendment, release or modification of this Guaranty shall be established by conduct, custom or course of dealing, but solely by an instrument in writing duly executed by the party against whom such waiver, amendment, release or modification is sought to be enforced. SECTION 18. NOTICES. Any notices or communications required or permitted hereunder shall be in writing and shall be sufficiently given if telefaxed, sent via electronic mail, delivered in person, or sent by certified or registered mail, return receipt requested, postage prepaid, to the following addresses, or to such other addresses as any of the recipients may from time to time designate by notice given in writing. FINAL 12/28/12 J-2-8 If to the Guarantor: [Insert] If to the City: [Insert] SECTION 19. CAPITALIZATION TERMS. All capitalization terms not defined in this Guaranty shall have the meaning given in the RFP. SECTION 20. GOVERNING LAW. This Agreement shall be construed in accordance with and governed by the laws of the California. In the event that changes in law, regulations or practices not already known or anticipated as of this Agreement become effective, or changes in relevant permits materially alter the procedures applicable to the parties’ performance of their respective obligations hereunder, the parties will endeavor in good faith to negotiate appropriate and mutually agreeable amendments to this Agreement or separate protocols to account for such changes, attempting in all events to restore or maintain for each Party as nearly as possible, its respective rights and obligations and benefits under this Agreement. IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be executed in its name and on its behalf by its duly authorized officer as of the [INSERT DATE] GUARANTOR NAME By:_____________________________ Title: ___________________________ DESIGNATED REPRESENTATIVE OF THE CITY of PALO ALTO By:____________________________ Title:___________________________ Prepared by: Douglas Environmental 1517 28th Street Sacramento, CA 95816 January 4, 2013 Preliminary Checklist Palo Alto Energy/Compost Facility/Export Attachment F Prepared by: Douglas Environmental 1517 28th Street Sacramento, CA 95816 Contact: Douglas Brown (916) 739-8407 January 4, 2013 Prepared for: City of Palo Alto Department of Public Works 250 Hamilton Avenue Palo Alto, CA 94301 Preliminary Checklist Palo Alto Energy/Compost Facility/Export Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto i Table of Contents 1018498.1 TABLE OF CONTENTS Section Page PREFACE/PURPOSE ............................................................................................................................................ II 1 PROJECT DESCRIPTION .................................................................................................................... 1-1 1.1 Introduction .................................................................................................................................. 1-1 1.2 CEQA Considerations .................................................................................................................. 1-1 1.3 Project Description ....................................................................................................................... 1-2 2 ENVIRONMENTAL CHECKLIST ...................................................................................................... 2-1 2.1 Aesthetics ..................................................................................................................................... 2-3 2.2 Agricultural Resources ................................................................................................................. 2-6 2.3 Air Quality .................................................................................................................................... 2-8 2.4 Biological Resources .................................................................................................................. 2-15 2.5 Cultural Resources ..................................................................................................................... 2-18 2.6 Geology and Soils ...................................................................................................................... 2-21 2.7 Greenhouse Gas Emissions ........................................................................................................ 2-28 2.8 Hazards and Hazardous Materials .............................................................................................. 2-28 2.9 Hydrology and Water Quality .................................................................................................... 2-36 2.10 Land Use and Planning ............................................................................................................... 2-42 2.11 Mineral Resources ...................................................................................................................... 2-45 2.12 Noise ........................................................................................................................................... 2-46 2.13 Population and Housing ............................................................................................................. 2-50 2.14 Public Services ........................................................................................................................... 2-52 2.15 Recreation ................................................................................................................................... 2-54 2.16 Transportation/Traffic ................................................................................................................ 2-56 2.17 Utilities and Service Systems ..................................................................................................... 2-59 2.18 Mandatory Findings of Significance .......................................................................................... 2-62 3 REFERENCES ........................................................................................................................................ 3-1 Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Preface ii City of Palo Alto 1018498.1 PREFACE/PURPOSE This document is a preliminary checklist that has been prepared to address the potential impacts associated with a proposed Palo Alto Energy/Compost Facility/Export (proposed project). The main purpose of this checklist is to provide proposers with environmentally relevant information about the site conditions of this project so that proposers can incorporate the mitigation measure assumptions into their proposals. Notwithstanding the potential to mitigate the potential significant environmental impacts, the City of Palo Alto has determined that an Environmental Impact Report will be prepared to allow full public review of potential environmental impacts and mitigation measures. Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 1-1 Project Description 1018498.1 1 PROJECT DESCRIPTION 1.1 INTRODUCTION This document is a preliminary checklist for the proposed Palo Alto Energy-Compost Facility/Export (proposed project). This checklist has been prepared in accordance with the California Environmental Quality Act (CEQA), Public Resources Code Section 21000 et seq. and the State CEQA Guidelines, California Code of Regulations Section 15000 et seq. The lead agency for the proposed project, whether it may have a significant effect on the environment or not, will complete an Environmental Impact Report (EIR). This document is intended to provide project proposers with a preliminary understanding of the potential mitigation measures needed to prepare a comprehensive proposal in response to the Energy/Compost Facility or Export Option Request for Proposal (RFP). The CEQA lead agency is the public agency with primary responsibility over the proposed project. In accordance with CEQA Guidelines Section 15051, the CEQA lead agency for the proposed project is the City of Palo Alto. 1.2 CEQA CONSIDERATIONS This checklist is tiered from the Programmatic EIR prepared for Statewide Anaerobic Digester Facilities for the Treatment of Municipal Organic Solid Waste (ESA June 2011), consistent with State CEQA Guidelines Section 15152. “Tiering” refers to using the analysis of general matters contained in a broader EIR when preparing a later EIR or negative declaration on a narrower project; incorporating by reference the general discussions from the broader EIR; and concentrating the later EIR or negative declaration solely on the issues specific to the later project (Section 15152(a)). Agencies are encouraged to tier the environmental analysis which they prepare for separate but related projects including general plans, zoning changes, and development projects. This approach can eliminate repetitive discussions of the same issues and focus the later negative declaration on the actual issues ripe for decision at each level of environmental review. Tiering is appropriate when the sequence of analysis is from an EIR prepared for a plan, policy or program to a site-specific EIR or negative declaration (Section 15152(b)). Section 15152(d) states that where an EIR has been prepared and certified for a program, plan, policy, or ordinance consistent with the requirements of Section 15152, any lead agency for a later project pursuant to or consistent with the program, plan, policy, or ordinance should limit the EIR or negative declaration on the later project to effects which: 1) Were not examined as significant effects on the environment in the prior EIR; or 2) Are susceptible to substantial reduction or avoidance by the choice of specific revisions in the project, by the imposition of conditions, or other means. Although all resource issues have been re-evaluated in preparing this checklist, the analysis is focused on those issues that are unique to the project site that may require mitigation measures beyond those identified in the Programmatic EIR. This is consistent with State CEQA Guidelines Section 15152. STATEWIDE ANAEROBIC DIGESTER FACILITIES PROGRAMMATIC EIR The Statewide Anaerobic Digester Facilities for the Treatment of Municipal Organic Solid Waste Final Program Environmental Impact Report (SCH# 2010042100) (Statewide AD Facilities EIR) provides a programmatic analysis of potential environmental effects that may result from the adoption of an Anaerobic Digestion (AD) Initiative and subsequent development of AD facilities in the State of California, in accordance with the California Environmental Quality Act (CEQA). Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Project Description 1-2 City of Palo Alto 1018498.1 CalRecycle adopted an Anaerobic Digestion Initiative (the AD Initiative) on Jun 22, 2011, which includes a set of comprehensive program elements to foster the development of AD facilities that convert organic solid wastes into sources of energy and can produce valuable compost feedstocks, soil amendments, and other products. Implementation of the AD Initiative will assist in meeting the following objectives: • Support CalRecycle Strategic Directive 6.1: to reduce the amount of organics in the waste stream by 50 percent by 2020. • Support Assembly Bill 32 (AB 32), the California Global Warming Solutions Act of 2006, greenhouse gas reduction measures related to the use of anaerobic digestion. • Assist local governments and state agencies (both lead and responsible agencies) by providing program-level analyses that will identify potential environmental effects of AD facilities and discuss mitigation measures or best management practices that can reduce or eliminate the environmental effects. The Statewide AD Facilities EIR evaluates and describes, on a statewide, program-level basis, the potential environmental impacts associated with the construction and operation of AD facilities, identifies those impacts that could be significant, and presents mitigation measures, which could avoid or minimize these impacts. No significant and unavoidable impacts were identified in the Statewide AD Facilities EIR. The existing setting discussion and summary of project impacts and mitigation measures included in the Statewide AD Facilities EIR are hereby incorporated by reference into this checklist, consistent with State CEQA Guidelines Section 15150. The impact conclusions of the Statewide AD Facilities EIR are discussed throughout the resource sections of this checklist. The Statewide Anaerobic Digester Facilities for the Treatment of Municipal Organic Solid Waste Final Program EIR is available for review at the following web link: http://www.calrecycle.ca.gov/SWFacilities/Compostables/AnaerobicDig/PropFnlPEIR.pdf 1.3 PROJECT DESCRIPTION The City of Palo Alto is exploring several options for managing the City’s source separated organic waste (including food scraps and yard trimmings) and biosolids due to the closure of the Palo Alto Landfill and the future discontinuation of use of the existing biosolids incinerator. The City estimates that between 12,100 and 15,500 tons per year (tpy) of food scraps and between 13,500 and 14,300 tpy of yard trimmings (not including yard trimmings delivered by self haul vehicles, which would increase these estimates) will be generated in the City at the time a contract could be started with a private operator. In addition, the City estimates that between 22,602 tpy and 32,288 tpy of biosolids (at 26% solids) are projected to be generated at the RWQCP in 2015, which is projected to increase to between 29,382 tpy and 41,975 tpy by 2050. The City also estimates that between 158 tpy and 226 tpy of fats, oils and grease (FOG) and scum will be generated in 2015 and mixed with the biosolids, which amount is projected to remain level over time. Through March 2012, the City composted yard trimmings at a traditional, open windrow compost facility on approximately 7.5 acres at the landfill, which ceased receiving municipal solid waste in July 2011. The closed landfill is dedicated as Byxbee Park within the City’s Comprehensive Plan and the application of the final landfill cap and its conversion to park uses resulted in composting operations ceasing at the landfill. Currently, yard trimmings collected in the City are delivered to the Sunnyvale SMaRT Station. Residential food scraps are currently mixed with and collected as part of the City’s municipal solid waste, taken to the Sunnyvale SMaRT Station, and transported to and disposed at the Kirby Canyon Landfill in South San Jose. In the future, the City plans to initiate curbside collection of source separated residential food scraps (either mixed Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 1-3 Project Description 1018498.1 with yard trimmings or separately from yard trimmings). Commercial food scraps are currently collected separately, transported to and composted in Gilroy. Biosolids are currently incinerated at the City’s RWQCP and the ash is transported to a disposal facility. The City completed a feasibility study on February 20, 2012 that evaluated several options for managing the City’s source separated organic waste and biosolids. The focus of the feasibility study was on developing a dry anaerobic digestion (AD) facility at the City’s landfill to convert source separated organic waste and potentially biosolids to renewable energy (electricity or fuels) and produce a useable compost. However, the feasibility study also evaluated a broad range of alternatives for managing source separated materials and biosolids within the City including the use of wet AD facilities, the ongoing use of incineration for biosolids, or the use of a combination of technologies and handling approaches for the different waste types. In addition, the August 2012 Long Range Facilities Plan prepared by the City included as an option gasification technologies for biosolids management. Gasification technologies include the use of a thermal process with limited oxygen that changes the composition of the organic portion of the feedstock to produce a synthesis gas that is typically converted to electricity, heat and/or fuel. Gasification includes pyrolysis, high and low temperature gasification and plasma gasification. Because the use of oxygen is restricted in the process, it does not include the incineration or combustion of the feedstock. The feasibility study also evaluated exporting the source separated organic waste out of the City with the food scraps going to either a proposed AD facility in San Jose or the existing ZBEST compost facility in Gilroy, and the yard trimmings going to the ZBEST facility. The source separated organic waste is assumed to be transported directly from its point of collection to the selected export facility without the use of an intermediate transfer or storage facility within the City. The City has also considered exporting biosolids to a processing location outside of the City, which would require the construction of a biosolids handling, storage and truck loading facility at the RWQCP. Although specific export locations were identified in the feasibility study, future export would not be limited to these locations or the specific waste management processes at these locations. Because any facilities outside of the City are assumed to be permitted to accept and process the wastes they would receive, the site- specific environmental impacts at these export facilities are not evaluated in this checklist. Palo Alto citizens passed the Palo Alto Green Energy and Compost Initiative (Measure E) in November 2011 that removed approximately 10 acres of land adjacent to the RWQCP from dedicated parkland for the exclusive purpose of considering building a facility for converting yard trimmings, food scraps, other municipal organics and/or sewage sludge from the regional wastewater treatment plant by biological and/or other environmentally equally protective technology. Approximately 8 acres of this 10-acre area are located on the uncapped portion of the Palo Alto Landfill. Measure E requires the operation to include all feasible methods for mitigating any significant environmental impacts identified during environmental review, including visual, sound and odor. Measure E provides for the 10-acre parcel to remain undedicated as parkland for a minimum of 10 years for purposes of considering use of the parcel for an E/C Facility. SITE LOCATION The proposed location for the E/C Facility is at the RWQCP and/or within the 10-acre Measure E parcel located directly southeast of the RWQCP at the existing Palo Alto Landfill. The Palo Alto Landfill is located in the northeastern portion of the City on the San Francisco Bay within the Baylands Master Plan area. The proposed landfill site is located on land that the City dedicated for park use as part of Byxbee Park. Access is proposed to be provided from Embarcadero Way, which intersects with Embarcadero Road approximately 1,700 feet to the northwest. The RWQCP is surrounded by the Palo Alto Landfill to the southeast, Embarcadero Way to the southwest, and Embarcadero Road to the northwest, north and northeast. The RWQCP site has 0.52 acre available for E/C Facility uses before demolition of the incinerator and associated equipment. Following demolition, approximately 1 acre would be available at the RWQCP. The RWQCP provides treatment and disposal of wastewater services to Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Project Description 1-4 City of Palo Alto 1018498.1 the cities of Palo Alto, Mountain View and Los Altos, the Town of Los Alto Hills, the East Palo Alto Sanitation District, and Stanford University, known collectively as the RWQCP Partners (RMC March 2009). Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-1 Environmental Checklist 1018498.1 2 ENVIRONMENTAL CHECKLIST PROJECT INFORMATION 1. Project Title: Palo Alto Energy/Compost Facility/Export 2. Lead Agency Name and Address: City of Palo Alto Public Works Department 250 Hamilton Avenue Palo Alto, CA 94301 3. Contact Person and Phone Number: Matthew Krupp, 650-496-5958 4. Project Location: The project includes two potential project sites including one at the Palo Alto Landfill and one at the Palo Alto Regional Water Quality Control Plant. Both sites are located in the northeastern portion of the City of Palo Alto, California. 5. Project Sponsor’s Name and Address: City of Palo Alto Department of Public Works 250 Hamilton Avenue Palo Alto, CA 94301 6. General Plan Designation: “Public Park” for the Palo Alto Landfill Site and “Major Institution/Special Features” for the Regional Water Quality Control Plant Site 7. Zoning: PF(D), Public Facilities District/Site and Design Review Combining District 8. Description of Project: The City of Palo Alto is exploring several options for managing the City’s source separated organic waste (including food scraps and yard trimmings) and biosolids due to the closure of the Palo Alto Landfill and discontinuation of use of the existing biosolids incinerator. The City completed a feasibility study on February 20, 2012 that evaluated several options for managing the City’s source separated organic waste and biosolids. The focus of the feasibility study was on developing a dry anaerobic digestion (AD) facility at the City’s landfill to convert source separated organic waste and potentially biosolids to renewable energy (electricity or fuels) and useable compost. However, the feasibility study also included a broad range of alternatives for managing source separated materials and biosolids within the City including the use of wet AD facilities, the ongoing use of incineration for biosolids, or the use of a combination of technologies and handling approaches for the different waste types. Gasification technologies were reviewed as an option for biosolids management as part of the recently published (August 2012) Long Range Facilities Plan for the Regional Water Quality Control Plant. Gasification technologies include the use of a thermal process with limited oxygen that changes the composition of the organic portion of the feedstock to produce a synthesis gas that is typically converted to electricity, heat and/or fuel. Gasification includes pyrolysis, high and low temperature gasification and plasma gasification. Because the use of oxygen is restricted in the process, it does not include the incineration or combustion of the feedstock. The feasibility study also evaluated exporting the source separated organic waste out of the City with the food scraps going to either a proposed AD facility in San Jose or the existing ZBEST compost facility in Gilroy, and the yard trimmings going to the ZBEST facility. The source separated organic waste is assumed to be transported directly from its point of collection to the selected export facility without the use of an intermediate transfer or storage facility within the City. The City has also considered exporting biosolids to a processing location outside of the City, which would require the construction of a biosolids handling, storage and truck loading facility at the RWQCP. Although specific export locations were identified in the feasibility study, future export would not be limited to these locations or the specific waste management processes at these locations. Because any facilities outside of the City are assumed to be permitted to accept and process the wastes they would receive, the site-specific environmental impacts at these export facilities are not evaluated in this checklist. 9. Surrounding Land Uses and Setting: The proposed alternatives include facilities within the boundaries of the Palo Alto Landfill and/or the RWQCP. Both the landfill and the RWQCP are located within the Palo Alto Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-2 City of Palo Alto 1018498.1 Baylands Nature Preserve and the closed landfill is designated as Byxbee Park. The landfill is surrounded by the RWQCP to the northwest and Baylands Nature Preserve/Byxbee Park to the northeast, east, south and southwest. The RWQCP is surrounded by the Palo Alto Airport to the north, the Baylands Nature Preserve/Byxbee Park to the northeast, the closed landfill and Baylands Nature Preserve/Byxbee Park to the southeast, and commercial offices/light industrial uses to the southwest. 10: Other public agencies whose approvals are required: Santa Clara County Department of Environmental Health (Local Enforcement Agency), the San Francisco Bay Regional Water Quality Control Board (RWQCB), the California Department of Resources Recycling and Recovery (CalRecycle), the San Francisco Bay Area Air Quality Management District (BAAQMD), and potentially, the San Francisco Bay Conservation and Development Commission (DCDC) and the State Lands Commission. ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED: The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a “Potentially Significant Impact” as indicated by the checklist on the following pages. Aesthetics Agriculture Resources Air Quality Biological Resources Cultural Resources Geology / Soils Hazards & Hazardous Materials Hydrology / Water Quality Land Use / Planning Mineral Resources Noise Population / Housing Public Services Recreation Transportation / Traffic Utilities / Service Systems Mandatory Findings of Significance None With Mitigation Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-3 Environmental Checklist 1018498.1 2.1 AESTHETICS ENVIRONMENTAL ISSUES Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact I. Aesthetics. Would the project: a) Have a substantial adverse effect on a scenic vista? b) Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway? c) Substantially degrade the existing visual character or quality of the site and its surroundings? d) Create a new source of substantial light or glare which would adversely affect day or nighttime views in the area? ENVIRONMENTAL SETTING The landfill site is part of Byxbee Park and the Palo Alto Baylands Nature Preserve, therefore, it is located within a sensitive recreational viewshed. The RWQCP is located at the existing RWQCP and is visible from areas within Byxbee Park. The visual character of both of these sites is strongly influenced by their existing land uses, the landfill site containing the landfill mound and the treatment plant containing the plant infrastructure. DISCUSSION a) Have a substantial adverse effect on a scenic vista? Less Than Significant with Mitigation Incorporated. Impacts to scenic vistas and resources could occur from construction, pre-processing equipment (grinding, screening, sorting, etc.), buildings and/or structures (digester, administrative facilities), or biogas equipment (gas boosters, fuel cells, flares, IC engines, etc). These activities and facilities could interfere with existing views of scenic vistas or resources within the Palo Alto Baylands Nature Preserve and Byxbee Park and thus, this impact is potentially significant. The export of biosolids outside of the City would also require the construction of facilities at the RWQCP for storage, handling and loading of biosolids into trucks. Depending upon the size and scale of these facilities, the change in existing views of scenic vistas or resources within the Palo Alto Baylands Nature Preserve and Byxbee Park would be potentially significant. The potential for AD facilities to degrade scenic vistas was identified as a significant impact in the Statewide AD Facilities EIR. These same impacts on scenic vistas would be anticipated with the implementation of other waste conversion and waste export facilities at the proposed alternative sites. The impact was considered less than significant following implementation of the identified mitigation measures. To ensure the impacts of the proposed alternatives on scenic vistas remain less than significant, the following mitigation measure included in the Statewide AD Facilities EIR shall be implemented. Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-4 City of Palo Alto 1018498.1 Mitigation Measure 1 Landscaping and/or vegetated berms should be used to minimize views of facilities from sensitive views. b) Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway? No Impact. No State-designated scenic highways are located within the project area. Therefore, the proposed alternatives would not damage scenic resources within a State scenic highway. c) Substantially degrade the existing visual character or quality of the site and its surroundings? Less Than Significant With Mitigation Incorporated. The visual character of an E/C Facility would be similar to many large-scale permitted solid waste facilities. The digestion process would occur within a tank (wet processes) or other enclosed facility (dry processes). A gasification facility would be visually similar to energy-generating industrial plants and the biosolids export facilities would include material storage areas and handling/loading areas. The RWQCP currently includes a biosolids incineration facility, which is integrated into the existing wastewater treatment operations. An E/C Facility or biosolids export facilities could potentially affect sensitive viewsheds such as users of the Palo Alto Baylands Nature Preserve and Byxbee Park. Potential concerns include the following: • Litter - Any facility receiving solid waste needs to be concerned with the potential for blowing litter. • Piling - Handling and storage of feedstock and digester byproducts can create visibly deteriorated site conditions if any portion of it occurs outdoors. • Buildings – The buildings associated with an E/C Facility or biosolids export facilities have the potential to degrade visual quality based on the height and design of the buildings. • Cylindrical Tanks (Wet processes) – The tanks that enclose wet digester processes can be large in order to hold substantial processed feedstock. These tanks have the potential to degrade the visual character of the area. Tank sizes can range from 20 feet to 75 feet in height. Tank size is dependent on a number of factors including planned capacity, specific technology, number of tanks and diameter. • Flare - Outdoor processing of biogas could also affect surrounding views. Post-processing facilities would require an outdoor gas booster pump and flare to combust raw biogas; facilities conditioning biogas would still require flare facilities in the event of equipment failure. The potential for an E/C Facility or biosolids export facilities to degrade the existing visual character/quality of the project sites and surroundings would depend, to a large degree, on the type of facility ultimately selected, the specific design of the facility, and the proposed site grading and landscaping. Additional analysis will be necessary in the EIR for the proposed alternatives to determine their specific visual impacts and their level of significance. d) Create a new source of substantial light or glare which would adversely affect day or nighttime views in the area? Less Than Significant With Mitigation Incorporated. The operation of an E/C Facility or biosolids export facilities may require the use of portable or permanent outdoor lighting during low light conditions or nighttime for safe operations. This may be a source of concern in light sensitive areas (such as adjacent to the Palo Alto Baylands Nature Preserve). Additionally, flares from biogas processing may be visible, particularly at night. Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-5 Environmental Checklist 1018498.1 The potential for E/C facilities to create a new source of light or glare was identified as a significant impact in the Statewide AD Facilities EIR. These same light and glare impacts would be anticipated with the implementation of other waste conversion and/or biosolids export facilities at the project sites. The impact was considered less than significant following implementation of the identified mitigation measures. To ensure the light and glare impacts of the proposed alternatives remain less than significant, the following mitigation measure included in the Statewide AD Facilities EIR shall be implemented. Mitigation Measure 2 Any lighting (portable or permanent) should be hooded and directed onto the project site. This would reduce effects to nighttime skies from uplighting, reduce glare, and prevent light from spilling onto adjoining properties and roads. Flares may be enclosed to reduce the visibility of flames during operation. Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-6 City of Palo Alto 1018498.1 2.2 AGRICULTURAL RESOURCES ENVIRONMENTAL ISSUES Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact II. Agricultural Resources. In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997, as updated) prepared by the California Department of Conservation as an optional model to use in assessing impacts on agriculture and farmland. Would the project: a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non-agricultural use? b) Conflict with existing zoning for agricultural use or a Williamson Act contract? c) Involve other changes in the existing environment, which, due to their location or nature, could result in conversion of Farmland to non-agricultural use? ENVIRONMENTAL SETTING Prime Farmland Farmlands are mapped by the State of California Department of Conservation under the Farmland Mapping and Monitoring Program (FMMP). Farmlands are delineated into the following eight categories: Prime Farmland; Farmland of Statewide Importance; Unique Farmland; Farmland of Local Importance; Grazing Land; Urban or Built-Up Land; other Land; and Water. The definitions used in the program are based on the land’s suitability for agricultural production, which includes both physical and chemical characteristics of soils and actual land use. No prime farmland is mapped on either the landfill site or the RWQCP site. Williamson Act Lands The California Land Conservation (Williamson) Act of 1965 is the State’s principal policy for the preservation of a maximum amount of the limited supply of agricultural land in the state (Government Code Section 51220). The voluntary program is administered through local governments, which are responsible for contracting with landowners. The purposes of the Williamson Act are preservation of agricultural and open space, and fostering efficient urban growth patterns. Williamson contracts last for 10 years and are self renewing. Neither the landfill site nor the RWQCP site are under a Williamson Act contract. Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-7 Environmental Checklist 1018498.1 DISCUSSION a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non-agricultural use? No Impact. Neither the landfill nor the RWQCP site contain farmland. Therefore, implementation of the proposed alternatives would not convert any farmland to non-agricultural uses and no adverse impacts on prime farmland would occur. b) Conflict with existing zoning for agricultural use or a Williamson Act contract? No impact. Neither the landfill nor the RWQCP site are zoned for agricultural use or contain a Williamson Act contract. Therefore, implementation of the proposed alternatives would not result in any conflicts with existing agricultural zoning or Williamson Act contracts. c) Involve other changes in the existing environment, which, due to their location or nature, could result in conversion of Farmland to non-agricultural use? No Impact. The proposed alternatives would not include any changes to the existing environment that would result in the conversation of farmland to non-agricultural use. As such, the proposed alternatives would not individually or cumulatively contribute to the loss of farmland in the project area. Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-8 City of Palo Alto 1018498.1 2.3 AIR QUALITY ENVIRONMENTAL ISSUES Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact III. Air Quality. Where available, the significance criteria established by the applicable air quality management or air pollution control district may be relied on to make the following determinations. Would the project: a) Conflict with or obstruct implementation of the applicable air quality plan? b) Violate any air quality standard or contribute substantially to an existing or projected air quality violation? c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non-attainment under an applicable federal or state ambient air quality standard (including releasing emissions which exceed quantitative thresholds for ozone precursors)? d) Expose sensitive receptors to substantial pollutant concentrations? e) Create objectionable odors affecting a substantial number of people? ENVIRONMENTAL SETTING The project sites are located in the San Francisco Bay Air Basin, within the jurisdiction of the Bay Area Air Quality Management District (BAAQMD). The BAAQMD adopts air quality rules and issues permits consistent with city, county and state regulations. Criteria Pollutants Concentrations of the following air pollutants: ozone, carbon monoxide (CO), nitrogen dioxide (NO2), sulfur dioxide (SO2), respirable and fine particulate matter (PM10 and PM2.5), and lead are used as indicators of ambient air quality conditions. Because these are the most prevalent air pollutants known to be deleterious to human health and extensive health-effects criteria documents are available, they are commonly referred to as “criteria air pollutants.” The ambient concentrations of air pollutant emissions are determined by the amount of emissions released by pollutant sources and the atmosphere’s ability to transport and dilute such emissions. Natural factors which affect transport and dilution include terrain, wind, atmospheric stability, and the presence of sunlight. Therefore, existing air quality conditions in the area are determined by such natural factors as topography, meteorology, and climate, in addition to the amount of emissions released by existing air pollutant sources. Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-9 Environmental Checklist 1018498.1 Both the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (ARB) designate areas of the state as attainment, nonattainment, or unclassified for various pollutant standards. An “attainment” designation for an area signifies that pollutant concentrations did not violate the standard for that pollutant in that area. A “nonattainment” designation signifies that a pollutant concentration violated the standard, excluding those occasions when a violation was caused by an exceptional event, as identified in the criteria. An “unclassified” designation signifies that data do not support either an attainment or nonattainment status. In addition, each agency has several levels of classification used to further describe the severity of nonattainment conditions. For instance, the ARB classifies nonattainment areas into moderate, serious, or severe air pollution categories, with increasingly strict control requirements mandated for each. The project sites are located in the San Francisco Bay Air Basin. For ozone (O3), the San Francisco Bay Air Basin is currently classified as a “non-attainment” by both state federal standards. For particulate matter less than 10 micrometers in diameter (PM10), the San Francisco Bay Air Basin is currently designated as a “non-attainment” area by state standards. For particulate matter less than 2.5 micrometers in diameter (PM2.5), the San Francisco Bay Air Basin is currently designated as a “non-attainment” area by state and federal (24 hour) standards. State and federal standards designate all other criteria pollutants as “attainment” or “unclassified” Toxic Air Contaminants In addition to the criteria air pollutants, toxic air contaminants (TACs) are airborne substances that are capable of causing short-term (acute) and/or long-term (chronic) and carcinogenic (cancer-causing) adverse health effects to humans. TACs include both organic and inorganic chemical substances. AD facilities are sources of TACs, particularly from biogas emissions and diesel exhaust. Gasification facilities are also sources of TACs. TACs are regulated separately from the criteria air pollutants at both the federal and state levels; however, the impacts of TAC emissions must be considered when evaluating project impacts due to their potential to affect human health. DISCUSSION a) Conflict with or obstruct implementation of the applicable air quality plan? No Impact. Stationary source activities that have the potential to affect air quality are regulated and permitted by the BAAQMD, pursuant to the adopted Bay Area 2010 Clean Air Plan (CAP). According to BAAQMD Guidelines, consistency with the CAP means that direct and indirect emissions associated with the project are accounted for in the CAP’s emission growth assumptions and the project is consistent with policies adopted in the CAP. Since the proposed alternatives would not generate growth, they would not be subject to the CAP’s emission growth assumptions. Additionally, the anticipated vehicular trip generation associated with the proposed alternatives would be expected to fall below that which would generate an impact under the CAP. As a result, the proposed alternatives are consistent with the Bay Area 2010 CAP and no impacts would result. b) Violate any air quality standard or contribute substantially to an existing or projected air quality violation? Construction Emissions Less Than Significant With Mitigation Incorporated. Construction related emissions for an E/C Facility or export facilities would arise from a variety of activities, including: (1) grading, excavation, road building, and other earth moving activities; (2) travel by construction equipment and employee vehicles, especially on unpaved surfaces; (3) exhaust from construction equipment; (4) architectural coatings; and (5) asphalt paving. Construction-related fugitive dust emissions would vary from day to day, depending on the level and type of activity, silt and clay content of the soil, and the weather. In the absence of mitigation, construction activities may result in significant quantities of dust, and as a result, local visibility and PM10 concentrations may be adversely Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-10 City of Palo Alto 1018498.1 affected on a temporary and intermittent basis during construction. In addition, the fugitive dust generated by construction would include not only PM10, but also larger particles, which would fall out of the atmosphere within several hundred feet of the site and could result in nuisance-type impacts. Construction equipment and construction-worker commute vehicles would also generate criteria air pollutant emissions. Criteria pollutant emissions of ROG and NOx from these emissions sources would incrementally add to regional atmospheric loading of ozone precursors during the construction period (ESA June 2011). Operational Emissions Emissions associated with operations would depend on the technology selected with variations depending upon the size and type of AD facility (e.g., one-stage or two-stage continuous systems, batch systems, wet or dry processes), gasification facility (e.g., pyrolysis, high and low temperature gasification, plasma gasification), or biosolids export facilities at the RWQCP and any equipment needed for pre-processing. Emissions would also be generated by the increased traffic on the local and regional roadway network (including additional waste haul trucks and employees), and the post processing of the biogas (e.g., flaring of excess biogas, combusting for electricity, or cleaning up biogas for use as a transportation fuel). For the export of biosolids, the transport truck emissions are anticipated to generate the primary air quality impacts within the City. Operational sources of fugitive dust would primarily be processing equipment and truck movement over paved and unpaved surfaces. In addition, non-methane VOCs released from pre-digested food scraps and yard trimmings during the receipt and pre-processing activities at the facility would not be a regional change but could result in increased localized emissions. Although there would be emissions associated with these sources at the facility, its operations would divert organics out of landfills. By doing so, there would be less activity at the disposal landfill, such as potentially fewer pieces of off-road equipment and a potential decrease in the vehicle miles traveled (VMT) for haul trucks. The E/C Facility could also generate biogas to replace fossil fuels for electricity production or for vehicle transportation (ESA June 2011). The generation of criteria air pollutant emissions associated with the construction and operation of AD facilities was identified as a significant impact in the Statewide AD Facilities EIR. The generation of criteria air pollutant emissions associated with gasification facilities and export facilities would also be considered significant. The impact was considered less than significant following implementation of the identified mitigation measures. To ensure criteria air pollutant emission impacts remain less than significant, the following mitigation measure included in the Statewide AD Facilities EIR shall be implemented. Mitigation Measure 3 An Air Quality Technical Report shall be prepared as part of the EIR review process for the proposed alternatives. The technical report shall include an analysis of potential air quality impacts (including a screening level analysis to determine if construction and operation related criteria air pollutant emissions would exceed BAAQMD thresholds, as well as greenhouse gas (GHG) emissions and any health risk associated with toxic air contaminants (TACs) from all AD or gasification facility sources) and reduction measures. Preparation of the technical report should be coordinated with the BAAQMD and shall identify compliance with all applicable New Source Review and Best Available Control Technology (BACT) requirements. The technical report shall identify all emissions from permitted (stationary) and non-permitted (mobile and area) sources and mitigation measures (as appropriate) designed to reduce significant emissions to below the applicable BAAQMD thresholds of significance. The construction contractor and facility operator shall be required to implement the following Best Management Practices (BMPs) as applicable during construction and operations: Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-11 Environmental Checklist 1018498.1 • Facilities shall be required to comply with the rules and regulations from the BAAQMD. • Facilities shall require substrate unloading and pre-processing activities to occur indoors within enclosed, negative pressure buildings. Collected foul air (including volatile organic compounds (VOCs) off-gassed from undigested substrates) should be treated via biofilter or air scrubbing system. • Use equipment meeting, at a minimum, Tier II emission standards, as established by the U.S. Environmental Protection Agency. • Minimize idling time either by shutting equipment off when not in use or reducing the time of idling to 5 minutes (as required by the state airborne toxics control measure [Title 13, §2485 of the California Code of Regulations]). Provide clear signage that posts this requirement for workers at the entrances to the site. • Maintain all equipment in proper working condition according to manufacturer’s specifications. • Use electric equipment when possible. • Where feasible as an alternative to internal combustion engines, which generate nitrogen oxide (NOx) emissions, use biogas from AD or gasification facilities as a transportation fuel (compressed biomethane) or in fuel cells to generate clean electricity. If there are other low NOx alternative technologies available at the time of AD or gasification facility development, these should be considered as well during the facility design process. c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non-attainment under an applicable federal or state ambient air quality standard (including releasing emissions which exceed quantitative thresholds for ozone precursors)? Less-Than-Significant Impact. As discussed in response to question b) above, emissions generated by the proposed alternatives would be considered less than significant following implementation of the identified mitigation measures. Thus, emissions generated by the proposed alternatives would not result in a cumulatively considerable net increase of a criteria pollutant for which the project region is in non-attainment under an applicable federal or state ambient air quality standard. d) Expose sensitive receptors to substantial pollutant concentrations? Less Than Significant With Mitigation Incorporated. For construction impacts, emissions of toxics can occur from site preparation and construction activities that are required for the AD, gasification and biosolids export facilities. The impacts from operation of a typical AD, gasification or export facility can be determined by comparing the facility’s pre and post-project emissions. For operations, air toxics emissions could include diesel particulate matter (DPM) from trucks that deliver substrate to the facility, or from trace amounts of air toxics (primarily hydrogen sulfide [H2S] and ammonia) that may be released as fugitives from the anaerobic digester or from the potential combustion or flaring of the biogas. Additional air toxics that could be generated by the combustion of biogas (either in an engine or flare) include benzene, formaldehyde, and other products of incomplete combustion. Combustion of biogas containing H2S generates sulfur dioxide, which can react with water to produce sulfuric acid. AD facilities typically include control technologies that convert the H2S to sulfur, which is then removed from the gas stream in order to avoid corrosion of engine parts in the combustion chamber and in the exhaust system. In addition, ammonia may form in the anaerobic digestion process from nitrogen compounds contained in the organic substrates (ESA June 2011). Health impacts from exposure to toxic emissions related to the AD, gasification and export facilities are dependent on the magnitude of concentrations that the public can be exposed to, as well as to the relative Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-12 City of Palo Alto 1018498.1 toxicities of the individual pollutants released from each type of facility. Exposure levels are determined by carrying out dispersion modeling of estimated toxics emissions from typical proposed facility sources by using a screening model, such as the EPA model SCREEN3 (USEPA 1995). The SCREEN3 model predicts possible worst-case impacts, by using hypothetical worst-case meteorology. For calculating more accurate impacts at site- specific facilities, the EPA model AERMOD can be used. AERMOD uses meteorological data that is representative of the site, as well as multiple toxic emission source types, such as point, area, or volume to represent the emission sources (ESA June 2011). For a screening analysis, cancer and non-cancer health risks can be calculated by applying algorithms given in the document published by California Office of Environmental Health Hazard Assessment (OEHHA) to calculate health risks (OEHHA 2003). For more accurate site specific risks, AERMOD can be run in conjunction with the CARB model “Hot Spots Analysis Reporting Program” (HARP) to estimate cancer and non-cancer health risks that the public can be exposed to (CARB 2009). HARP uses the same toxicity values as are given in the OEHHA Risk Assessment Guidelines and incorporates multi-pathway uptake factors for the various toxic species to calculate risks. The estimated cancer risks from facility emissions are then compared to the applicable BAAQMD significance thresholds to determine if the impacts from the alternatives evaluated might result in significant impacts to the public. In addition, Hazard Quotients are estimated for noncarcinogens in HARP to determine if the modeled exposure levels exceed established health thresholds, called Reference Exposure Levels (RELs), to test for significance. The estimated risks for the various digester, gasification or export alternatives can then be used to estimate health risks, and for those alternatives with unacceptable risks, mitigation measures are applied to determine if the alternatives can achieve acceptable health risks to the public. Due to the unknown site specific exposure and information that is needed to quantify and evaluate health risk associated with AD, gasification and export facilities, this impact is considered potentially significant (ESA June 2011). The health impacts from exposure to toxic emissions associated with the construction and operation of AD facilities was identified as a significant impact in the Statewide AD Facilities EIR. The impact was considered less than significant following implementation of the identified mitigation measures. To ensure health impacts from exposure to toxic emissions remain less than significant, the following mitigation measure included in the Statewide AD Facilities EIR shall be implemented. Mitigation Measure 4 Based on the Air Quality Technical Report (specified in the Mitigation Measure in response to question [b] above), if the health risk is determined to be significant on a project-by-project basis with DPM as a major contributor, then control measures shall be implemented such that the AD, gasification or biosolids export facility health risk would be below the BAAQMD threshold, which may include implementation of one or more of the following requirements, where feasible and appropriate: • Use either new diesel engines that are designed to minimize DPM emissions (usually through the use of catalyzed particulate filters in the exhaust) or retrofit older engines with catalyzed particulate filters (which will reduce DPM emissions by 85%); • Use electric equipment to be powered from the grid, which would eliminate local combustion emissions; • Use alternative fuels, such as compressed natural gas (CNG) or liquefied natural gas (LNG). • Hydrogen sulfide (H2S) contained in the biogas shall be scrubbed (i.e., via iron sponge or other technology) before emission to air can occur. e) Create objectionable odors affecting a substantial number of people? Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-13 Environmental Checklist 1018498.1 Less Than Significant With Mitigation Incorporated. As bacterial decomposition proceeds, odoriferous compounds are generated. The major contribution to odors comes from two groups of compounds: the first group is dominated by esters and organosulfurs, and the second group consists of alkyl benzenes and limonene. The sensory perception of odorants has four major dimensions: detectability, intensity, character, and hedonic tone. Odor detectability consists of a detection threshold and a recognition threshold. The detection threshold is the lowest concentration of an odorant that will elicit a sensory response in 50 percent of the population. There is an awareness of the presence of an added substance, but not necessarily an odor sensation. The detection thresholds are determined using human subjects and sophisticated dilution equipment. Detection thresholds are published for more than 900 chemicals. The recognition threshold is the minimum concentration that is recognized as having a characteristic odor quality by a segment of the population. Odor intensity refers to the perceived strength of the odor sensation, and odorant character is what the substance smells like (e.g., fishy, rancid, hay, sewer, turpentine, ammonia, etc.). Hedonic tone is a category judgment of the relative pleasantness or unpleasantness of the odor, and is influenced by factors such as subjective experience and frequency of occurrence. For example, roses have been demonstrated to possess an odor with pleasant hedonic tone. Garbage has been demonstrated to possess an odor with an unpleasant hedonic tone. Offensive odors rarely cause any physical harm and no requirements for their control are included in state or federal air quality regulations. Factors that affect odor impacts include the AD or gasification facility design, sensitive receptor proximity, and exposure duration. Anaerobic digestion is the biological decomposition of organic matter in the absence of molecular oxygen. As a result, odorous compounds, such as ammonia and H2S, are generated and could be released into the environment. The anaerobic digestion process occurs naturally in marshes, wetlands and is the principal decomposition process in landfills. However, in the operation of AD facilities, the digestion process occurs in a closed system. Volatile organic compounds are broken down through the anaerobic digestion process, and exhaust is generally processed in a more controlled environment. However, the collection transport, storage, and pre-processing activities of the potentially odiferous organic substrates for digestion and the resultant digestate could produce nuisance odors at the AD facility. In addition, these digester facilities could lead to objectionable odors at off-site receptors in the vicinity. For the biosolids export facilities at the RWQCP, odors would be generated during material handling and storage activities, and during truck loading operations. Potential exposure of the public to objectionable odors was identified as a significant impact in the Statewide AD Facilities EIR. The impact was considered less than significant following implementation of the identified mitigation measures. To ensure the objectionable odor impacts remain less than significant, the following mitigation measure included in the Statewide AD Facilities EIR shall be implemented. Mitigation Measure 5 The AD, gasification, and/or biosolids export facilities shall comply with the City of Palo Alto’s land use plans, policies, and regulations, including applicable setbacks and buffer areas from sensitive land uses for potentially odoriferous processes. If the AD, gasification or biosolids export facilities handle compostable material and are classified as a compostable material handling facility, the facility must develop an Odor Impact Minimization Plan (OIMP) pursuant to 14 CCR 17863.4. Otherwise, an Odor Management Plan (OMP) shall be developed and Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-14 City of Palo Alto 1018498.1 implemented that incorporates equivalent odor reduction controls for facility operations. Odor control strategies that can be incorporated into these plans include, but are not limited to, the following: • A list of potential odor sources. • Identification and description of the most likely sources of odor. • Identification of potential, intensity, and frequency of odor from likely sources. • A list of odor control technologies and management practices that could be implemented to minimize odor releases. These management practices shall include the establishment of the following criteria: - Require substrate haulage to the AD, gasification or export facility within sealed containers. - Establish time limit for on-site retention of undigested substrates (i.e., substrates must be put into the digester or gasification facility within 24 hours of receipt or hauled off site within 48 hours). - Provide enclosed, negative pressure buildings for indoor receiving and preprocessing. Treat collected foul air in a biofilter or air scrubbing system. - Establish contingency plans for operating downtime (e.g., equipment malfunction, power outage). - Manage delivery schedule to facilitate prompt handling of odorous substrates. - Handle digestate within enclosed building and/or directly pump to sealed containers for transportation. - Protocol for monitoring and recording odor events. - Protocol for reporting and responding to odor events. Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-15 Environmental Checklist 1018498.1 2.4 BIOLOGICAL RESOURCES ENVIRONMENTAL ISSUES Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact IV. Biological Resources. Would the project: a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special- status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or the U.S. Fish and Wildlife Service? b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, or regulations or by the California Department of Fish and Game or the U.S. Fish and Wildlife Service? c) Have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? e) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance? f) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan? ENVIRONMENTAL SETTING The landfill and RWQCP sites are located within the Palo Alto Baylands Nature Preserve. The Preserve encompasses the San Francisco Bay shoreline areas east of Highway 101 between the cities of East Palo Alto and Mountain View. The City of Palo Alto has maintained and managed this open space for recreation and wildlife habitat preservation since the 1920s. The 2,100-acre Preserve is the largest tract of undisturbed marshland remaining in the San Francisco Bay, and contains a unique mixture of tidal and freshwater habitats supporting a variety of plant and animal communities and a number of threatened and endangered species. The Mayfield Slough, located adjacent to the landfill site, is also included within the Preserve. Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-16 City of Palo Alto 1018498.1 Several sensitive species, including the Salt Marsh Harvest Mouse and the Burrowing Owl, have been identified in the areas surrounding the landfill site. The habitat on the landfill site is limited to non-native grasses and several eucalyptus trees. The majority of the landfill site has been disturbed by landfilling activities and the majority of the RWQCP site has been disturbed by the development of the treatment plant. No sensitive species habitat is present on either site. DISCUSSION a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special-status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or the U.S. Fish and Wildlife Service? Less Than Significant With Mitigation Incorporated. The proposed alternatives do not include any construction activities or habitat modification within sensitive habitats. However, the development of the landfill or RWQCP site could have adverse indirect impacts on sensitive habitats within the Palo Alto Baylands Nature Preserve including the introduction of new light and noise sources, which could disrupt existing species use patterns. The construction on the landfill site could also alter existing local wildlife use corridors within the Nature Preserve. The impacts may depend upon the final design of the E/C Facility or biosolids export facilities. The installation of light shielding and compliance with City noise standards could minimize the potential to affect sensitive habitats within the Palo Alto Baylands Nature Preserve. Additional analysis will be necessary in the EIR to determine if the proposed alternatives have the potential to adversely affect candidate, sensitive or special-status species or important habitat identified by resource agencies in the local area. The following mitigation measure is recommended to minimize this impact. Mitigation Measure 6 A biological study shall be conducted when more detail is available regarding the design characteristics of the E/C Facility or biosolids export facilities to determine if the development of the facilities has the potential to adversely affect sensitive species or important habitat in the Palo Alto Baylands Nature Preserve. The study shall include the identification of appropriate mitigation measures to reduce any potentially significant biological resource impacts. b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, or regulations or by the California Department of Fish and Game or the U.S. Fish and Wildlife Service? No Impact. The proposed alternatives would not disturb any riparian habitat or other sensitive natural community. The proposed alternatives do not include any construction activities or habitat modification that would disturb riparian habitat or other sensitive natural communities. Therefore, the proposed alternatives would have no effect on riparian habitat or other sensitive natural communities. c) Have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? No Impact. The proposed alternatives do not include construction within any wetland or other jurisdictional Waters of the U.S and no impacts on these resources would be anticipated with implementation of the proposed alternatives. Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-17 Environmental Checklist 1018498.1 d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? Less Than Significant With Mitigation Incorporated. The landfill and RWQCP sites have historically been developed for either landfill or wastewater treatment purposes and are not expected to be located within broad movement corridors for native resident or migratory wildlife species. However, the landfill site may provide a corridor for local wildlife movement within the Palo Alto Baylands Nature Preserve. Additional analysis will be necessary in the EIR of the proposed alternatives to determine if development of the landfill site could adversely affect native resident or migratory wildlife movement corridors or nursery sites. The implementation of the mitigation measure identified under question a) above is recommended to minimize this impact. e) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance? No Impact. The development of the landfill site as an E/C Facility would likely require the removal of several existing mature eucalyptus trees, located adjacent to the RWQCP, along the landfill site’s northwestern boundary. The trees are not considered “Regulated Trees”, as defined in the City’s Tree Technical Manual (Municipal Code Chapter 8.10.030), and are therefore, not subject to the City’s removal permit requirements. Thus, none of the proposed alternatives would be anticipated to conflict with applicable tree preservation policies or ordinances. f) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan? No Impact. The proposed alternatives are not located within an adopted Habitat Conservation Plan or Natural Communities Conservation Plan area and would not conflict with such plans. Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-18 City of Palo Alto 1018498.1 2.5 CULTURAL RESOURCES ENVIRONMENTAL ISSUES Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact V. Cultural Resources. Would the project: a) Cause a substantial adverse change in the significance of a historical resource as defined in Section 15064.5? b) Cause a substantial adverse change in the significance of an archaeological resource pursuant to Section 15064.5? c) Directly or indirectly destroy a unique paleontological resource or site or unique geologic feature? d) Disturb any human remains, including those interred outside of formal cemeteries? ENVIRONMENTAL SETTING Historic and Unique Archaeological Resources Under CEQA, historical resources and “unique archaeological resources” are recognized as a part of the environment (Public Resources Code Sections 21001(b), 21083.2, 21084(e), 21084.1). In 1992, the Public Resources Code was amended as it affects historical resources. The amendments included creation of the California Register of Historical Resources (Public Resources Code Sections 5020.4, 5024.1 and 5024.6). While the amendments became effective in 1993, it was not until January 1, 1998, that the implementing regulations for the California Register were officially adopted (Public Resources Code Section 4850 et seq.). The California Register is an authoritative listing and guide for state and local agencies and private groups and citizens in identifying historical resources. This listing and guide indicates which resources should be protected from substantial adverse change. Under CEQA Guidelines Section 15064.5, an “historical resource” includes: (1) a resource listed in, or determined to be eligible by the State Historical Resources Commission for listing in, the California Register of Historical Resources; (2) a resource listed in a local register of historical resources or identified in a historical resource survey meeting the requirements in Section 5024.1(g) of the Public Resources Code; and (3) any object, building, structure, site, area, place, record, or manuscript that a lead agency determines is historically significant or significant in the architectural, engineering, scientific, economic, agricultural, educational, social, political, military, or cultural annals of California, provided the determination is supported by substantial evidence in light of the whole record; or a resource determined by a lead agency to be “historical,” as defined in Public Resources Code Sections 5020.1(j) or 5024.1. CEQA is also concerned with effects of a project on “unique archaeological resources.” If an archaeological site meets the definition of a unique archaeological resource (Public Resources Code Section 21083.2), then the site must be treated in accordance with the special provisions for such resources, which include time and cost limitations for implementing mitigation. “Unique archaeological resource” is defined as “an archaeological artifact, object, or site about which it can be clearly demonstrated that, without merely adding to the current body of knowledge, there is a high probability that it meets the following criteria: Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-19 Environmental Checklist 1018498.1 ► Contains information needed to answer important scientific research questions and that there is a demonstrable public interest in that information. ► Has a special and particular quality such as being the oldest of its type or the best available example of its type. ► Is directly associated with a scientifically recognized important prehistoric or historic event or person. [Public Resources Code Section 21083.2 (g)]” If it can be demonstrated that a project will cause damage to a unique archaeological resource, the lead agency may require reasonable efforts to be made to permit any or all of these resources to be preserved in place or left in an undisturbed state. Examples of that treatment are described in the code. To the extent that unique archaeological resources are not preserved in place or left in an undisturbed state, mitigation measures shall be required as provided in the code. The code also places limitations on the extent, cost and timing of mitigation measures that can be required by the lead agency. DISCUSSION a) Cause a substantial adverse change in the significance of a historical resource as defined in Section 15064.5? No Impact. The Palo Alto Landfill has been extensively disturbed by past waste disposal activities and does not include any structures or historic resources. The RWQCP site has also been extensively disturbed by the original construction of the plant and no historic resources are located on this site. Therefore, no impacts to historical resources, as defined in Section 15064.5 of the State CEQA Guidelines, are anticipated to occur with implementation of the proposed alternatives. b) Cause a substantial adverse change in the significance of an archaeological resource pursuant to Section 15064.5? No Impact. The majority of the landfill site contains the existing landfill mound. Because the placement of municipal solid waste within the landfill mound typically would have included excavating below the ground surface prior to waste placement, any subsurface cultural resources would have been destroyed when the area was converted to landfill uses. The RWQCP site was also disturbed during the original land grading conducted during construction of the plant. Therefore, there is little potential that subsurface archaeological resources are located at either the landfill site or the RWQCP site. A cultural survey was conducted during the preparation of an Initial Study for the Palo Alto Recycled Water Project in 2007 (RMC March 2009), which included the RWQCP site. The RWQCP was included in the cultural survey because components of the Recycled Water Project were located at the plant. The cultural survey included a records search of the California Inventory of Historic Resources (1976), the Historic Property Directory (Office of Historic Preservation current computer list), Northwest Information Center records of archaeological sites and surveys, GLO Plats, historic maps, and other pertinent historic data available at the Northwest Information Center for Santa Clara County. Based on this records search, no previously recorded archaeological sites exist within the immediate area of the RWQCP (RMC March 2009). A field reconnaissance was conducted for the proposed Recycled Water Project as part of the cultural survey that included the RWQCP. No historical or prehistoric cultural resources were observed within the Recycled Water Project’s area of potential effect. The Native American Heritage Commission was contact by letter on August 31, 2007 requesting information on sacred lands and a contact list of local tribal representatives or most likely descendents. A response was received from the Commission on September 14, 2007 noting, “A record search of the sacred land file has failed to indicate the presence of Native American cultural resources in the immediate Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-20 City of Palo Alto 1018498.1 project area.” The list of Native American contacts identified in the Commission letter were all contacted and no responses were received (RMC March 2009). Because there is little to no potential for archaeological resources to be located on either the landfill or the RWQCP sites, no impacts to archaeological resources, as defined in Section 15064.5 of the State CEQA Guidelines, are anticipated to occur with implementation of the proposed alternatives. c) Directly or indirectly destroy a unique paleontological resource or site or unique geologic feature? No Impact. For the reasons discussed above in answers to questions a) and b), there is little to no potential for unique paleontological resources to be located on either the landfill or the RWQCP sites. Neither site includes unique geologic features nor has the topography of the sites been disturbed by prior development. The proposed alternatives do not include any activities that could disturb paleontological resources or unique geologic features. Therefore, no impacts to paleontological resources or unique geologic features are anticipated to occur with implementation of the proposed alternatives. d) Disturb any human remains, including those interred outside of formal cemeteries? No Impact. No formal or informal cemeteries are located near the landfill or the RWQCP sites. Therefore, no disturbance of human remains is anticipated to occur with implementation of the proposed alternatives. Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-21 Environmental Checklist 1018498.1 2.6 GEOLOGY AND SOILS ENVIRONMENTAL ISSUES Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact VI. Geology and Soils. Would the project: a) Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: i) Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? (Refer to California Geological Survey Special Publication 42.) ii) Strong seismic ground shaking? iii) Seismic-related ground failure, including liquefaction? iv) Landslides? b) Result in substantial soil erosion or the loss of topsoil? c) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction, or collapse? d) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994, as updated), creating substantial risks to life or property? e) Have soils incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers are not available for the disposal of waste water? ENVIRONMENTAL SETTING The Santa Clara Plain forms the floor of the Santa Clara Valley, which contains the San Francisco Bay. The plain is a broad, flat to undulating, gently sloping alluvial fan that extends northeast from the base of the foothills of the Santa Cruz Mountains to the salt evaporators that now occupy the marshes that formerly bordered San Francisco Bay. The plain drops gently across 3.5 miles to about five feet above mean sea level at the Bay margin and is incised by streams. The City of Palo Alto is in the San Andreas Fault System, which is approximately 44 miles wide in the Bay Area. The principal active faults, those on which there is evidence of displacement during Holocene time (the last 11,000 years), include the San Gregorio, San Andreas, Hayward, Calaveras, and Greenville faults. The City of Palo Alto is in one of the most active seismic regions in the United States. Each year, low and moderate magnitude earthquakes occurring in or near the Bay Area are felt by residents of the City of Palo Alto. Since the Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-22 City of Palo Alto 1018498.1 mid-nineteenth century, about 2,000 earthquakes have affected Santa Clara County. The April 1906 earthquake on the San Andreas Fault, estimated at 8.3 on the Richter scale, probably was the largest seismic event felt in the City. Most recently, the 7.1 Loma Prieta earthquake of October 1989 on the San Andreas Fault caused severe damage throughout the Bay Area. DISCUSSION a) Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: i) Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? (Refer to California Geological Survey Special Publication 42.) No Impact. Surface rupture is an actual cracking or breaking of the ground along a fault during an earthquake. Structures built over an active fault can be torn apart if the ground ruptures. Surface rupture along faults is generally limited to a linear zone a few meters wide. The Alquist-Priolo Act was created to prohibit the location of structures across the traces of active faults, thereby reducing the loss of life and property from an earthquake. No Alquist Priolo zones have been established on or adjacent to the project area. Therefore, the proposed alternatives would not be expected to be affected by the rupture of a known earthquake fault. ii) Strong seismic ground shaking? Less-Than-Significant Impact. Ground shaking occurs as a result of energy released during faulting, which could potentially result in the damage or collapse of buildings and other structures, depending on the magnitude of the earthquake, the location of the epicenter, and the character and duration of the ground motion. The components of the proposed alternatives at the landfill and RWQCP are located in an area of notable seismic activity. Seismic ground shaking generated from earthquakes on major Bay Area fault systems (i.e., the San Andreas or Hayward) could cause varying intensities of ground shaking at the sites. Ground shaking from a regional earthquake will likely occur within the life of the project. The proposed alternatives would be required to be designed consistent with California Building Code requirements that are intended to ensure the facilities withstand the seismic stresses that would be anticipated within the City of Palo Alto. Therefore, the proposed alternatives are not anticipated to result in significant ground-shaking impacts. iii) Seismic-related ground failure, including liquefaction? Less-Than-Significant Impact. The primary factors in determining liquefaction potential are soil type, the level and duration of seismic ground motions, and the depth to groundwater. Sandy, loose, or unconsolidated soils are susceptible to liquefaction hazards. Liquefaction and other seismically-induced forms of ground movement have historically occurred throughout California during major earthquake events. These phenomena generally consist of lateral movement, flow, or vertical settlement of saturated, unconsolidated soil in response to strong ground motion. The soils in the Baylands area are known to be subject to liquefaction. The project sites are mapped as having a high potential for liquefaction on Map N-5 (Geotechnical Hazards) in the Palo Alto Comprehensive Plan. However, the majority of the soils at the landfill site were excavated with the original landfill development. The RWQCP has been extensively developed and has not been subjected to liquefaction. In addition, key facilities at Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-23 Environmental Checklist 1018498.1 either site are anticipated to be supported by pilings, which would substantially diminish any liquefaction hazards. Therefore, implementation of the proposed alternatives would not be expected to expose facilities to liquefaction. iv) Landslides? Less Than Significant with Mitigation Incorporated. The lands in the Baylands area are generally flat and not subject to landslides. However, because the use of the landfill site for an E/C Facility would require excavation of the existing landfill mound and the installation of a retaining wall, the potential exists for the landfill mound to experience slope failure if not properly designed. The potential for the reconfigured landfill refuse slopes to shift or slump could create a hazard for site employees or visitors. This would be considered a potentially significant impact unless mitigation is incorporated. The following mitigation measure is recommended to ensure this impact is reduced to a less-than-significant level. Mitigation Measure 7 If the landfill site is selected for development, a slope stability analysis and geotechnical report shall be prepared by an engineering geologist with landfill design expertise of the proposed landfill mound excavation. The report shall characterize any potential hazards, identify appropriate measures to minimize these hazards, and include detailed design recommendations to ensure the redesigned landfill refuse slopes would remain stable under both static and seismic loading conditions. b) Result in substantial soil erosion or the loss of topsoil? Less Than Significant with Mitigation Incorporated. Construction at the landfill site or the RWQCP site would result in potential soil erosion and loss of topsoil associated with excavation, stockpiling, and grading activities. This would be considered a potentially significant impact unless mitigation is incorporated. The following mitigation measure is recommended to ensure this impact is reduced to a less-than-significant level. Mitigation Measure 8 A grading and erosion control plan shall be prepared by a California Registered Civil Engineer prior to issuance of grading permits. The plan shall comply with the City of Palo Alto Municipal Code requirements regarding construction grading. To ensure grading activities do not directly or indirectly discharge sediments into surface waters as a result of construction activities, the plan shall include the development of a Storm Water Pollution Prevention Plan (SWPPP). The SWPPP shall identify Best Management Practices that would be used to protect storm water runoff and minimize erosion during construction. c) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction, or collapse? Less-Than-Significant Impact. As discussed in response to question iii) above, the project sites are located in an area having a high potential for liquefaction. However, the majority of the soils at the landfill site were excavated with the original landfill development. Therefore, the proposed facilities would not be placed on expansive soils with the implementation of the proposed alternatives. The RWQCP has been extensively developed and has not been subjected to liquefaction. Subsidence occurs when large amounts of groundwater have been withdrawn from certain types of soils (such as fine-grained sediments), and the soil loses support and collapses upon itself. Conditions that could potentially result in subsidence were not identified at the project site. Therefore, the potential for subsidence is low. Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-24 City of Palo Alto 1018498.1 d) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994, as updated), creating substantial risks to life or property? Less-Than-Significant Impact. The soils underlying the project sites are known to contain expansive soils. However, for the majority of the landfill site, any expansive soils would have been excavated with initial construction of the landfill fill area. If areas remain that contain expansive soils, specific treatments to eliminate the expansion potential include grouting (cementing the soil particles together), recompaction (watering and compressing the soils), and replacement with a non-expansive material (excavation of unsuitable soil followed by filling with suitable material), all of which are commonly used in the City of Palo Alto. In addition, key facilities at either site are anticipated to be supported by pilings, which would substantially diminish any liquefaction hazards. The California Building Code (CBC), administered by the City’s Municipal Code, requires that each construction location be evaluated to determine the particular treatment, if any, that would be most appropriate. The construction contractor responsible for building the facilities associated with the proposed alternatives would be required to comply with the Municipal Code’s requirements to ensure the site equipment and facilities are not adversely affected by expansive soils. Therefore, the potential for expansive soils to adversely affect the project sites is low and the potential impacts resulting from expansive soils would be considered less than significant. e) Have soils incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers are not available for the disposal of waste water? No Impact. The proposed alternatives do not require the use of septic systems or alternative waste water disposal systems. Therefore, the proposed alternatives would have no impact on these systems. Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-25 Environmental Checklist 1018498.1 2.7 GREENHOUSE GAS EMISSIONS ENVIRONMENTAL ISSUES Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact VII. Greenhouse Gas Emissions. Would the project: a) Generate greenhouse gas emissions, either directly or indirectly, that may have a significant impact on the environment? b) Conflict with an applicable plan, policy or regulation adopted for the purpose of reducing the emissions of greenhouse gases? ENVIRONMENTAL SETTING Global warming is an issue which has gained increased public attention over the last decade. Unlike emissions of criteria and toxic air pollutants, which have local or regional impacts, emissions contributing to global warming have a broader global impact. In 2006, California passed Assembly Bill 32 (AB32), which requires the CARB to conduct GHG inventories. Landfills are included in the CARB inventories, and account for 1.5% of California GHG emissions for 2009 in the most recent inventory (ESA June 2011). Global climate change refers to observed changes in weather features that occur across the Earth as a whole, such as temperature, wind patterns, precipitation, and storms, over a long period (CAT, 2006; CEC, 2006; CEC, 2008; IPCC, 2007). Global temperatures are modulated by naturally occurring atmospheric gases, such as water vapor, carbon dioxide, methane, and nitrous oxide. These gases allow sunlight into the Earth’s atmosphere, but prevent radiant heat from escaping into outer space, thus altering Earth’s energy balance in a phenomenon called the “greenhouse effect”. Some greenhouse gases are short lived, such as water vapor, while others, such as sulfur hexafluoride, have a long lifespan in the atmosphere (ESA June 2011). Earth has a dynamic climate that is evidenced by repeated episodes of warming and cooling in the geologic record. Consistent with a general warming trend, global surface temperatures have increased by 0.74°C ± 0.18°C over the past 100 years (IPCC, 2007). The recent warming trend has been correlated with the global Industrial Revolution, which resulted in increased urban and agricultural centers at the expense of forests and reliance on fossil fuels (CAT, 2006). Eleven of the past twelve years are among the twelve warmest years recorded since 1850 (CEC, 2006). Although natural processes and sources of greenhouse gases contribute to warming periods, recent warming trends are attributed to human activities as well (CAT, 2006; CEC 2006). Potential global warming impacts may include, but are not limited to, loss in snow pack, sea level rise, more extreme heat days per year, more high ozone days, more large forest fires, and more drought years. Secondary effects are likely to include a global rise in sea level, impacts to agriculture, changes in disease vectors, and changes in habitat and biodiversity. While the possible outcomes and the feedback mechanisms involved are not fully understood, and much research remains to be done, the potential for substantial environmental, social, and economic consequences over the long term may be great. GHGs include all of the following naturally-occurring and anthropogenic (man-made) gases: carbon dioxide (CO2), methane, nitrous oxide (N2O), sulfur hexafluoride, perfluorocarbons, hydrofluorocarbons, and nitrogen trifluoride (NF3) (California Health and Safety Code §38505(g). In terms of Global Warming Potential (GWP), each of these gases varies substantially from one another. GWP is a measure of how much a given mass of GHG Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-26 City of Palo Alto 1018498.1 will contribute to global warming, comparing one GHG to the same mass of CO2 on a relative scale (CAT, 2006; IPCC, 2007). The GWP depends on the absorption of infrared radiation by a given species, the spectral location of its absorbing wavelengths, and the atmospheric lifetime of the species. GHG emissions are measured in units of pounds or tons of CO2 equivalents (CO2-e). As an example, HFC-23 contributes 14,800 times as much as CO2 to the GWP over 100 years (ESA June 2011). DISCUSSION a) Generate greenhouse gas emissions, either directly or indirectly, that may have a significant impact on the environment? No Impact. The annual emission levels associated with the GHG-emitting activities that would occur under various alternatives were analyzed to determine their relative GHG impact. The first step in this process was the establishment of an “assessment boundary” to determine the type of GHG-emitting activities that were analyzed. Generally, the determination of which GHG-emitting activities were included in the model is consistent with the assessment boundary recommended in the Climate Action Reserve’s Organic Waste Digestion Project Protocol. Any deviations from this guidance relate to the fact that the Climate Action Reserve’s protocol addresses some processes that are not applicable to the City (e.g., manure handling). The types of GHGs emitted by the aforementioned activities include carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O). Emission levels were estimated for each of these activities using methodologies established by the California Air Resources Board, the California Climate Action Registry, the Climate Action Reserve, the U.S. Environmental Protection Agency, and/or the Intergovernmental Panel on Climate Change. The levels of GHGs associated with dry anaerobic digestion were based on information provided in a request for information circulated by the City of Palo Alto to potential facility operators. The level of GHGs associated with wet anaerobic digestion and incineration of biosolids were based on information provided by a recent study being performed for the City that evaluates options for handling biosolids from the RWQCP. The GHG model does not differentiate between biogenic and anthropogenic emissions. Emissions of CH4 and N2O were converted to units of carbon dioxide-equivalent (CO2-e) according to their global warming potential. In addition, emissions associated with the construction of new facilities under various alternatives (e.g., dry anaerobic digestion facility, wet anaerobic digestion facility) were estimated and then amortized over the projected operational life of the facility (i.e., 20 years). The emissions were also converted to CO2-e, as needed, and included in the tally for the alternatives. The total CO2-e emissions were calculated to be lowest when all source separated organic waste and biosolids were subjected to dry AD processes. Generally, the more organic waste that is subject to anaerobic digestion, the lower the total CO2-e level. The model also indicates that the incineration of biosolids generates a high level of CO2-e emissions relative to other activities included in the model. This is largely due to the fact that the incineration of biosolids is energy-intensive, consuming high levels of natural gas, and because no methane is recovered and then used to produce renewable electricity. For those alternatives that include dry and/or wet anaerobic digestion, the recovered biogas can be used in two beneficial ways. Biogas can be combusted to produce electricity. Electricity produced from biogas would be considered renewable and would displace the consumption of equal amounts of fossil fuel-based electricity from conventional sources, thereby resulting in a GHG reduction. Biogas can also be upgraded to pipeline-quality natural gas and used in place of conventional fossil-fuel based natural gas; however, the combustion of natural gas made from biogas would result in equal levels of GHG emissions as the consumption of fossil-fuel derived natural gas and, thus, no reduction would be achieved. The Statewide AD Facilities EIR concluded that AD facilities would not pose any apparent conflict with the most recent list of the CARB early action strategies, operation of these facilities would divert organics out of landfills, Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-27 Environmental Checklist 1018498.1 and they could also generate biogas to replace fossil fuels for electricity production or for vehicle transportation. For these reasons, the Statewide AD Facilities EIR concluded that the GHG impacts of these types of facilities would not have an adverse environmental impact (ESA June 2011). Additional analysis will be necessary in the EIR of the proposed alternatives to determine relative GHG impacts and whether mitigation measures would be necessary. b) Conflict with an applicable plan, policy or regulation adopted for the purpose of reducing the emissions of greenhouse gases? No Impact. The Statewide AD Facilities EIR concluded that AD facilities would be expected to comply with applicable City or County plans, policies, or regulations adopted for the purpose of reducing the emissions of GHGs and that they would directly support several GHG reduction measures contained in AB 32 (increased renewables mix and high recycling/zero waste), which would also be beneficial in meeting any local jurisdiction reduction goals (ESA June 2011). Therefore, no impact would be anticipated with the implementation of AD facilities. Additional analysis will be necessary in the EIR of the proposed alternatives to determine relative GHG impacts and whether mitigation measures would be necessary. . Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-28 City of Palo Alto 1018498.1 2.8 HAZARDS AND HAZARDOUS MATERIALS ENVIRONMENTAL ISSUES Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact VIII. Hazards and Hazardous Materials. Would the project: a) Create a significant hazard to the public or the environment through the routine transport, use, or disposal of hazardous materials? b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and/or accident conditions involving the release of hazardous materials into the environment? c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one-quarter mile of an existing or proposed school? d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? f) For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working in the project area? g) Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? h) Expose people or structures to a significant risk of loss, injury, or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? ENVIRONMENTAL SETTING Hazardous Materials For the purposes of this analysis, the term “hazardous materials” refers to both hazardous materials and hazardous wastes. Under federal and State laws, any material, including wastes, may be considered hazardous if it is specifically listed by statute as such or if it is toxic (causes adverse human health effects), ignitable (has the ability to burn), corrosive (causes severe burns or damage to materials), or reactive (causes explosions or Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-29 Environmental Checklist 1018498.1 generates toxic gases). The term “hazardous material” is defined as any material that, because of quantity, concentration, or physical or chemical characteristics, poses a significant present or potential hazard to human health and safety or to the environment if released into the workplace or the environment. Potential Presence of Hazardous Materials in Soil and Groundwater Hazardous materials, including but not limited to pesticides and herbicides, heavy metals, volatile organic compounds, oil and gas, may be present in soil and groundwater in areas where land uses have resulted in leaking fuel or chemical storage tanks or other releases of hazardous materials have occurred. Various federal, State, and local regulatory agencies maintain lists of hazardous materials sites where soil and/or groundwater contamination is known or suspected to have occurred, typically as a result of leaking storage tanks or other spills. These facilities are readily identified through regulatory agency database searches, such as the State Water Resources Control Board (SWRCB) GeoTracker online database, the California Environmental Protection Agency (CalEPA) Department of Toxic Substances Control (DTSC) Envirostor online database, and several other federal, State and local regulatory agency databases. Anaerobic Digester and Biogas Hazards Anaerobic digesters are confined spaces that pose a potential immediate threat to human life. They are designed to seal out oxygen making death by asphyxiation possible within seconds of entry. Further, gases such as hydrogen sulfide and ammonia accumulate inside a digester. Notably, Cal/OSHA is responsible for developing and enforcing workplace safety standards, including confined space and lockout procedures. Biogas consists primarily of methane, carbon dioxide, with small amounts of hydrogen sulfide, and ammonia. Typically, biogas is saturated with water vapor and may have trace amounts of hydrogen, nitrogen, oxygen, dust and siloxanes. Theoretically, two-stage digester systems could be used to produce biogas richer in hydrogen if isolated after the first stage of the process, and a methane rich biogas after the second stage. Although the hydrogen rich biogas would have potentially greater concentrations of hydrogen than the typical biogas generated through anaerobic digestion, the hydrogen would still be in low concentrations and would not pose a substantial combustion hazard. There are no known commercial systems that are designed to produce hydrogen-rich biogas. However, biogas can be reformulated into hydrogen if fuel cells are used to generate heat and electricity. For the typical anaerobic digestion process, the majority of hydrogen is converted into methane through hydrogenotrophic methanogenesis. Methane is not toxic, but is classified as a simple asphyxiate, possessing a slight inhalation hazard. If breathed in high concentration, oxygen deficiency can result in serious injury or death. Biogas itself is not explosive and will not burn unless oxygen is available at low concentrations. Biogas is explosive when mixed with air in concentrations of 5 to 15 percent. A leak in a gas line can create a fire hazard if an ignition source is present and the concentration of flammable constituents is at a hazardous level, however, in open spaces biogas readily mixes with air reducing its potential to reach flammable concentrations. The risk of fire hazard is generally low because anaerobic digestion (AD) facilities and biogas transmission lines operate with very low pressures, similar to residential natural gas distribution lines. Typical construction standards for AD facilities include redundant fire safety relief valves to prevent over pressurizing, flame arresters, gas detectors and physical barriers to minimize fire and explosion hazards. Fire Hazards While all of California is subject to some degree of wildfire hazard, there are specific features that make certain areas more hazardous. The California Department of Forestry and Fire Protection (CAL FIRE) is required by law to map areas of significant fire hazards based on fuels, terrain, weather, and other relevant factors (PRC 4201- 4204 and Govt. Code 51175-89). Factors that increase an area’s susceptibility to fire hazards include slope, vegetation type and condition, and atmospheric conditions. CAL FIRE has created maps of each county that depict the fire hazard severity zoning of the area. These maps can be obtained at: Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-30 City of Palo Alto 1018498.1 http://www.fire.ca.gov/fire_prevention/fire_prevention_wildland_zones.php. These maps identify high fire hazard areas that are subject to regulations designed to minimize fire potential and assist local planning agencies to develop policies and programs for these high risk areas. Pathogens and Vectors Pathogens are disease-causing organisms, such as certain bacteria, viruses and parasites. Vectors are organisms, such as flies, mosquitoes, rodents and birds that can spread disease by carrying and transferring pathogens. Vectors can transmit pathogens to humans and other hosts physically through contact or biologically by playing a specific role in the life cycle of the pathogen. Regulatory Requirements There are numerous federal, State, and local laws, regulations, ordinances and guidance intended to protect public health and safety and the environment. The U.S. Environmental Protection Agency (U.S. EPA), CalEPA, DTSC, RWQCB, California Air Resources Board (CARB), federal and California Occupational Safety and Health Administration (OSHA), California Department of Resources Recycling and Recovery (CalRecycle), CAL FIRE and the local oversight agencies are the major federal, State, and regional agencies that enforce these regulations. The main focus of OSHA is to prevent work-related injuries and illnesses, including from exposures to hazardous materials. CalRecycle is mandated to reduce waste, promote the management of materials to their highest and best use, and protect public health and safety and the environment. CAL FIRE implements fire safety regulations. In accordance with Chapter 6.11 of the California Health and Safety Code (§ 25404, et seq.), local regulatory agencies enforce many federal and state regulatory programs through the Certified Unified Program Agency (CUPA) program, including: • Hazardous materials business plans (Chapter 6.95 of the Health and Safety Code, §25501 et seq.). • State Uniform Fire Code requirements (§80.103 of the Uniform Fire Code as adopted by the state fire marshal pursuant to Health and Safety Code §13143.9). • Underground storage tanks (Chapter 6.7 of the Health and Safety Code, §25280 et seq.). • Aboveground storage tanks (Health and Safety Code §25270.5[c]). • Hazardous waste generator requirements (Chapter 6.5 of the Health and Safety Code, §25100 et seq.). The following is a summary of how hazardous materials and public health and safety are regulated for AD facilities. AD Facilities and Operations CalRecycle regulates AD facilities as either compost facilities or transfer and processing facilities, depending upon whether the feedstock is compostable. Regulations regarding solid waste facilities and compostable materials handling, operations, and regulatory requirements are established in California Code of Regulations Title 14 and can be obtained at: http://www.calrecycle.ca.gov/Laws/Regulations/title14/default.htm. These regulations are overseen by CalRecycle and its designated local enforcement agencies (LEAs). These regulations include, but are not limited to, the following for compost facility operations: establishes permitting and inspection requirements; prohibits acceptance of hazardous wastes, liquids and sludges; outlines general Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-31 Environmental Checklist 1018498.1 operating standards; provides for removal of contaminants from compost and feedstock; requires materials handling in a manner that minimizes vectors and prevents unauthorized access by individuals and animals; outlines pathogen reduction and sampling requirements; establishes recordkeeping and facility closure requirements. Specific regulations that provide LEAs the means to address issues regarding vectors, odor, and other nuisances include the following for composting operations and transfer/processing operations respectively: • “All handling activities shall be conducted in a manner that minimizes vectors, odor impacts, litter, hazards, nuisances, and noise impacts; and minimizes human contact with, inhalation, ingestion, and transportation of dust, particulates, and pathogenic organisms” (Composting Operating Standards in CA Title 14, Division 7, Chapter 3.1, Article 6, Section 17867); and, • “The operator shall take adequate steps to control or prevent the propagation, harborage and attraction of flies, rodents, or other vectors, and animals, and to minimize bird attraction” (Minimum Standards for Solid Waste Handling and Disposal are in CA Title 14, Division 7, Chapter 3. Article 6.1, Section 17410.4). LEAs perform routine inspections to certify compliance with permit conditions to ensure that State programs are effectively implemented. CalRecycle can also initiate enforcement actions in addition to, or in lieu of, the LEA. DISCUSSION a) Create a significant hazard to the public or the environment through the routine transport, use, or disposal of hazardous materials? Construction Less-Than-Significant Impact. Construction activities would require use of limited quantities of hazardous materials such as fuels for construction equipment, oils, and lubricants. The improper use, storage, handling, transport or disposal of hazardous materials could result in accidental release of hazardous materials, thereby exposing construction workers, the public and the environment, including soil and/or ground or surface water, to hazardous materials contamination. As discussed in the Regulatory Setting above, numerous laws and regulations govern the transport, use, storage, handling and disposal of hazardous materials to reduce the potential hazards associated with these activities. Cal/OSHA is responsible for developing and enforcing workplace safety standards, including the handling and use of hazardous materials. Transportation of hazardous materials is regulated by the federal Department of Transportation and Caltrans. Together, federal and State agencies determine driver-training requirements, load labeling procedures, and container specifications designed to minimize the risk of accidental release. Construction activities would also be required to comply with the California fire code to reduce the risk of potential fire hazards. The local fire agency would be responsible for enforcing the provisions of the fire code. The federal Clean Water Act prohibits discharges of storm water from construction projects unless the discharge is in compliance with a National Pollutant Discharge Elimination System (NPDES) permit. The State Water Resources Control Board is the permitting authority in California and has adopted a Statewide General Permit for Stormwater Discharges Associated with Construction Activity (Construction General Permit, Order No. 99-08) that encompasses one or more acres of soil disturbance. Specific erosion control measures would be identified as part of the NPDES permit and Storm Water Pollution Prevention Plan (SWPPP) required for construction. During construction, erosion control measures would be implemented that utilize Construction Water Quality Best Management Practices (BMPs) to avoid or minimize soil erosion and off-site sediment or hazardous materials transport. Examples of typical construction BMPs include scheduling or limiting activities to certain times of the Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-32 City of Palo Alto 1018498.1 year; installing sediment barriers such as silt fence and fiber rolls along the perimeter of the construction area; maintaining equipment and vehicles used for construction; developing and implementing a spill prevention and cleanup plan; and construction worker training. The SWPPP (and associated BMPs) would be prepared and implemented prior to commencing construction, and BMP effectiveness would be ensured through the sampling, monitoring, reporting, and record keeping requirements contained in the construction general permit. Because numerous laws and regulations govern the transport, use, storage, handling and disposal of hazardous materials during construction activities to reduce the potential hazards, this construction impact would be less than significant. Operations Operation and maintenance of AD, gasification or biosolids export facilities would involve the transport, use, storage and disposal of hazardous materials such as fuels, lubricants and hydraulic fluids for vehicles and onsite equipment. The phases of operations are discussed below. Pre-processing involves the activities necessary to prepare the feedstocks for delivery into the AD vessel. Pre- processing could include screens, picking lines or mechanical removal of glass and plastic, magnetic separation, eddy current separation, and wet separation. As described in the project description, the alternatives evaluated include both dry digestion and wet digestion as well as gasification. These processes would take place within enclosed tanks or vessels. Digestate: Upon completion of the digestion process, the digestate would probably undergo a solids separation process. The water could also be further processed for beneficial uses (recycled) or be routed to the RWQCP. The dewatered solid digestate could require additional aerobic curing (composting) to ensure stabilization and pathogen reduction. The Waste Discharge Requirements (WDRs) for the facility would set the specific criteria for digestate handling. Biogas: The biogas resulting from the AD process would be used for internal combustion to generate electricity. If biogas conditioning is required for use either in a fuel cell or production of liquefied biogas, scrubber facilities would be needed to clean the biogas to remove sulfides. Flushing of the scrubbers would produce sulfide effluent that would require appropriate disposal. Biogas presents an inhalation hazard that, if breathed in high concentration, can result in serious injury or death. Biogas itself is not explosive and will not burn unless oxygen is available at low concentrations. Handling of hazardous materials and hazardous wastes is covered by federal and State laws that minimize worker safety risks from both physical and chemical hazards in the workplace. Cal/OSHA is responsible for developing and enforcing workplace safety standards, including the handling and use of hazardous materials, including gases. Workers must be trained to understand the hazards and appropriate work procedures associated with confined spaces, flammable gases, etc. Businesses that use hazardous materials are required to submit a Hazardous Materials Business Plan to the local CUPA, which performs inspections to ensure compliance with hazardous materials labeling, training, and storage regulations. For example, hazardous materials must be stored in containers according to the manufacturer’s guidelines and appropriately labeled. The Material Safety Data Sheet for each chemical must be available for review. Employers must inform workers of the hazards associated with the materials they handle and maintain records documenting training. Hazardous wastes must be segregated, sampled and disposed of at appropriately licensed landfill facilities. Transportation of hazardous materials is regulated by the DOT and Caltrans. Together, federal and State agencies determine driver-training requirements, load labeling procedures, and container specifications designed to minimize the risk of accidental release. Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-33 Environmental Checklist 1018498.1 Because numerous laws and regulations govern the transport, use, storage, handling and disposal of hazardous materials to reduce the potential hazards associated with these activities, this impact would be less than significant. b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and/or accident conditions involving the release of hazardous materials into the environment? Less Than Significant With Mitigation Incorporated. Construction activities associated with development of the AD, gasification or biogas export facilities at the landfill or RWQCP would involve excavation and trenching. If hazardous materials, such as pesticides or herbicides, VOCs or other hazardous materials are present in excavated soil or groundwater, hazardous materials could be released to the environment resulting in the exposure of construction workers or the public to potential health risks depending on the nature and extent of any contamination encountered. Of particular concern associated with the landfill site is the existing municipal solid waste that would need to be excavated and reburied at a different area of the landfill. The exposure of these buried wastes could result in the dispersal of contaminated materials into the environment and the exposure of construction workers or the public to contaminants, potentially resulting in health and safety risks. Hazardous materials exposed during construction could be managed appropriately according to applicable laws and regulations to reduce the risks associated with exposures to individuals or releases to the environment. Cal/OSHA regulations require the preparation and implementation of a site health and safety plan to protect workers who could encounter hazardous materials. These plans ensure that construction workers have specialized training and appropriate personal protective equipment. If groundwater dewatering is required for excavation of subsurface facilities, the groundwater may require treatment prior to discharge, in accordance with regulations. To ensure the public health hazards associated with the exposure of workers or the public to hazardous materials remain less than significant, the following mitigation measure shall be implemented. Mitigation Measure 9 During site excavation activities, construction workers that could be exposed to buried hazardous materials shall be properly equipped and trained to safely handle such materials. This includes ensuring appropriate construction personnel have received 40-hour HAZWOPER (Hazardous Waste Operations and Emergency Response) training and wear appropriate personal protection equipment (PPE). c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one-quarter mile of an existing or proposed school? No Impact. No existing or proposed schools are located within ¼ mile of either the landfill or the RWQCP. Therefore, the proposed alternatives would not emit or handle hazardous emissions within ¼ mile of an existing or proposed school. d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code §65962.5 and, as a result, would it create a significant hazard to the public or the environment? No Impact. Based on a search conducted in March 2009 of the Department of Toxic Substances Control list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 including Federal Superfund Sites National Priorities List (NPL), State Response Sites, Voluntary Cleanup Sites, and School Cleanup Sites, the landfill and RWQCP sites are not located on a hazardous material site (RMC March 2009). Implementation of the proposed alternatives would not include any activity that would create a significant hazard to the public or the environment associated with a listed hazardous materials site. Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-34 City of Palo Alto 1018498.1 e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? Less Than Significant With Mitigation Incorporated. Potential aviation safety hazards were identified as a significant impact in the Statewide AD Facilities EIR for airports within five miles of new AD facilities due to their potential to attract scavenging birds. A small-scale airport operated by the County of Santa Clara (Palo Alto Airport) is located directly north of the RWQCP. This airport is located less than 3,000 feet from the landfill and RWQCP sites. Increasing the number of birds near an airport could increase the risk of bird strikes for aircraft departing or approaching the airport. The FAA Advisory Circular 150/5200-33B recommends minimum separation criteria for various land use practices that attract wildlife in the vicinity of airports. For all airports, the FAA recommends a distance of five statute miles between the farthest edge of the airport’s air operations area and the hazardous wildlife attractant if the attractant could cause hazardous wildlife movement into or across the approach or departure airspace. The FAA discourages the development of waste disposal and other facilities located within 5,000/10,000-feet of airports serving piston-powered and turbine-powered aircraft, respectively. For projects that are located outside the 5,000/10,000-foot criteria but within five statute miles of the airport’s air operations area, the FAA may review development plans, proposed land-use changes or operational changes, to determine if such changes present potential wildlife hazards to aircraft operations and if further investigation is warranted. The mitigation from the Statewide AD Facilities EIR required facility operators to notify the FAA regarding proposed AD facilities. The impact was considered less than significant following implementation of the identified mitigation measures. The proposed alternatives would include new facilities that process food scraps, which could attract scavenger birds to the site and result in a bird hazard for the Palo Alto Airport. The processing of all food scraps, yard trimmings and biosolids are proposed to occur within enclosed facilities with implementation of the proposed alternatives. Therefore, these facilities are not anticipated to attract scavenger birds. In addition, for facilities designated as compost facilities, California Code of Regulations Title 14, Chapter 3.1, Article 6, Section 17867 stipulates that “all activities shall be conducted in a manner that minimizes vectors, odor impacts, litter, hazards, nuisances and noise impacts…”. If regulated as a transfer processing facility, the E/C Facility would be required to “take adequate steps to control or prevent the propagation, harborage and attraction of flies, rodents, or other vectors, and animals, and to minimize bird attraction” (CCR Title 14, Division 7, Chapter 3. Article 6.1, Section 17410.4). These regulations give the Local Enforcement Agency and CalRecycle broad discretion to ensure that the E/C Facility or export facilities minimize bird attraction. In addition, the facilities would be required to comply with Santa Clara County’s Airport Master Plan (2006) for the Palo Alto Airport. To ensure bird strike hazards remain less than significant, the following mitigation measure included in the Statewide AD Facilities EIR shall be implemented. Mitigation Measure 10 The facility operator shall notify the Federal Aviation Administration (FAA) Regional Airports Division office and the airport operator of the proposed facility as early in the process as possible. Any open air (outdoor) activities at the site must receive an FAA Determination of No Hazard prior to project approval. f) For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working in the project area? No Impact. The landfill and RWQCP sites are not located within the vicinity of a private airstrip. Therefore, no aviation-related safety impacts related to private airstrips for people residing or working in the project area are expected to result from the proposed alternatives. Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-35 Environmental Checklist 1018498.1 g) Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? No Impact. The proposed alternatives would not impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan. Embarcadero Road is designated as a Primary Evacuation Route in the Palo Alto Comprehensive Plan and would be the principal ingress and egress route in the event of an emergency in the Palo Alto Baylands area. The development components of the proposed alternatives would occur at the landfill and/or RWQCP. Both of these sites would be located at the end of Embarcadero Way. Therefore, any emergencies that occurred at these sites would not impair the use of Embarcadero Way or Embarcadero Road as an evacuation route for other surrounding land uses. The export trucks would use these roadways to access Highway 101. These roadways are of sufficient width that if a truck accessing or departing from the site was involved in an accident, it would be unlikely that the truck would completely block these roads. Embarcadero Road at its intersection with Embarcadero Way is four lanes wide. Therefore, evacuation would not be impeded. h) Expose people or structures to a significant risk of loss, injury, or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? No Impact. The landfill and RWQCP sites are not located within a designated fire hazard area or where there is a significant risk of wildland fire. Therefore, no impacts associated with wildfires would be anticipated with project implementation. Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-36 City of Palo Alto 1018498.1 2.9 HYDROLOGY AND WATER QUALITY ENVIRONMENTAL ISSUES Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact IX. Hydrology and Water Quality. Would the project: a) Violate any water quality standards or waste discharge requirements? b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre-existing nearby wells would drop to a level that would not support existing land uses or planned uses for which permits have been granted)? c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial on- or off-site erosion or siltation? d) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner which would result in on- or off-site flooding? e) Create or contribute runoff water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff? f) Otherwise substantially degrade water quality? g) Place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? h) Place within a 100-year flood hazard area structures that would impede or redirect flood flows? i) Expose people or structures to a significant risk of loss, injury, or death involving flooding, including flooding as a result of the failure of a levee or dam? j) Result in inundation by seiche, tsunami, or mudflow? Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-37 Environmental Checklist 1018498.1 ENVIRONMENTAL SETTING In 1987, Congress recognized the potential adverse effects of urban runoff on water quality and amended the Clean Water Act to require that National Pollutant Discharge Elimination System (NPDES) permits be obtained for urban storm water discharges. Permits require their holders to carry out State-approved management plans designed to control contaminants to the “maximum extent practicable.” The plans typically call for a broad range of best management practices (BMPs), primarily non-structural measures such as street sweeping, catch basin cleaning, litter control and public education programs. Area-wide NPDES permits to discharge storm water from urban areas in Santa Clara County have been issued and reissued by the Regional Water Quality Control Board (Regional Board) since 1990. The City of Palo Alto is one of fifteen co-permittees comprising the Santa Clara Valley Urban Runoff Pollution Prevention Program (SCVURPPP), to whom the general permits have been issued. The other co-permittees consist of other municipalities within the valley, the Santa Clara Valley Water District, and the County of Santa Clara. To fulfill its obligations under the SCVURPPP, the City of Palo Alto developed its Urban Runoff Pollution Prevention Program, which contains implementation strategies and specific performance standards to address storm water pollution prevention in the following areas: 1) illicit connections/illegal dumping; 2) industrial/commercial dischargers; 3) public streets and roadways; 4) storm drain system operation and maintenance; 4) water utility operation and maintenance; 5) new development and construction controls/planning procedures; 6) pesticide, mercury and sediment control measures; and 7) corporation yards operation and maintenance. DISCUSSION a) Violate any water quality standards or waste discharge requirements? No Impact. The landfill currently operates under waste discharge requirements (WDRs) issued by the Regional Water Quality Control Board. Storm water discharge from the RWQCP is required to comply with the site’s applicable NPDES permit. Compliance with these permits would ensure that water quality standards are not violated. Therefore, the proposed alternatives would not be expected to violate any water quality standards or waste discharge requirements. b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre existing nearby wells would drop to a level that would not support existing land uses or planned uses for which permits have been granted)? No Impact. The proposed alternatives do not include the use of groundwater and would not be expected to substantially interfere with groundwater recharge. The landfill mound is designed to be impervious, thus, the development of the landfill site would not reduce groundwater recharge. Similarly for the RWQCP, much of the site has been developed so little change would be anticipated in groundwater recharge. Therefore, the proposed project would have no impact on groundwater resources. c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial on- or off-site erosion or siltation? Less Than Significant with Mitigation Incorporated. Changes in site drainage and flooding patterns associated with the construction of AD facilities were identified in the Statewide AD Facilities EIR as a significant impact requiring mitigation. The mitigation from the Statewide AD Facilities EIR required the preparation of a comprehensive drainage plan to ensure that, at a minimum, no net increase in storm water discharge would occur Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-38 City of Palo Alto 1018498.1 during a 10-year, 24-hour storm event. The impact was considered less than significant following implementation of the identified mitigation measures. The proposed alternatives would alter the drainage characteristics of the landfill site by excavating areas of waste fill within the existing landfill mound and leveling the site to accommodate facility construction and operation. The excavation of the landfill mound would require the installation of a retaining wall to limit the mound area that would need to be excavated. The site excavation activities and facility construction would alter the site’s storm water system and would likely increase storm water discharge from the site, requiring the installation of new storm water drainage facilities. The proposed alternatives would also alter the drainage characteristics of the RWQCP site, although to a lesser degree than the landfill site. In order to ensure that the proposed E/C Facility or biosolids export facilities would not result in detrimental increases in storm water flow or flooding on the sites or downstream, the following mitigation measure included in the Statewide AD Facilities EIR shall be implemented. Mitigation Measure 11 In order to ensure that the AD, gasification or biosolids export facilities would not result in detrimental increases in storm water flow or flooding on site or downstream, a comprehensive drainage plan (prior to construction) shall be prepared and implemented. The comprehensive drainage plan shall include engineered storm water retention facility designs, such as retention basins, flood control channels, storm drainage facilities, and other features, as feasible, to ensure that, at a minimum, no net increase in storm water discharge would occur during a 10-year, 24-hour storm event, as a result of project implementation. Alternatively, uncontaminated stormwater shall be routed to the City’s stormwater drainage system. Project related increases in storm water flows shall be assessed based on proposed changes in impervious surface coverage on site, as well as proposed grading and related changes in site topography. The installation of facilities at the RWQCP would occur within an already developed area of the control plant. Therefore, changes to the existing storm water drainage system at the RWQCP would not be necessary and no significant impacts would be anticipated on storm water of flooding with the implementation of the proposed alternatives. d) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner which would result in on- or off-site flooding? Less Than Significant with Mitigation Incorporated. As discussed in response to question c) above, the existing drainage pattern of the landfill site would be altered as a result of the proposed alternatives. However, with implementation of the mitigation above, significant changes in the drainage pattern of the site or area would not be anticipated. The installation of facilities at the RWQCP would occur within an already developed area of the control plant. Therefore, changes to the existing storm water drainage system at the RWQCP would not be necessary and no significant impacts would be anticipated on storm water of flooding with the implementation of the proposed alternatives. e) Create or contribute runoff water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff? Less Than Significant with Mitigation Incorporated. As discussed in response to question c) above, the proposed alternatives would alter the drainage characteristics of the landfill site by excavating areas of waste fill within the existing landfill mound and leveling the site to accommodate facility construction and operation. The alteration of the landfill site’s drainage patterns could adversely affect existing or planned storm water drainage Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-39 Environmental Checklist 1018498.1 systems and contribute additional sources of polluted runoff. However, with implementation of the identified mitigation measure above, this impact would be reduced to a less-than-significant level. f) Otherwise substantially degrade water quality? Less Than Significant with Mitigation Incorporated. The operation of AD, gasification or biosolids export facilities can cause environmental degradation of surface water and groundwater quality. The following discussion focuses primarily on the effects of AD facilities on water quality, although similar impacts would be anticipated with gasification facilities, and to a lesser degree, biosolids export facilities. Reductions in groundwater quality could occur as a result of pre-processing, post-processing, and to a lesser extent, digestion operations. During pre-processing, digester feedstock is separated from incoming waste streams, stored, and transported to the anaerobic digester. Feedstocks could contain high levels of organic matter, sediment, nutrients, inorganic salts, and fugitive trash. Depending on the composition of the feedstock, other potential water quality pollutants may be present in small quantities, including heavy metals, hydrocarbons, and other species. During pre-processing, wash down of equipment, feedstock wetting, and handling operations may result in the loss of a small amount of feedstock material. Pollutants associated with pre-processing operations could be accidentally released from the alternative sites or discharged during storm events, and enter surface waters or leach into groundwater (ESA June 2011). During the digestion process, digestion occurs within tanks that are designed to prevent leakage of feedstock or digestate. Therefore, potential effects on water quality during digestion would be limited to accidental spills or accidental releases of digestate. Accidental spills could occur as a result of digestion equipment malfunction, accidental release of materials from the anaerobic digester, or spills associated with the handling of chemicals used for the digestion process. Without mitigation, such spills or accidental releases could drain into surface waters or infiltrate to groundwater, either directly or during storm water runoff events, resulting in degradation of surface water or groundwater quality (ESA June 2011). During post-processing, digestate is dewatered to separate residual solids and liquids. Residual solids are then disposed in a landfill, composted, or used as soil amendment for agriculture or other beneficial use. The liquid fraction of the digestate could potentially be discharged to the City’s municipal sewer system for treatment, treated and then discharged to either surface waters pursuant to an NPDES permit or to percolation or evaporation ponds, or used for other beneficial use. Therefore, potential effects on water quality depend upon the concentration of pollutants in the liquid and solid fractions of the digestate, and in the eventual end use or disposal method that is employed for digestate handling (ESA June 2011). After digestion, residual solids may contain water quality pollutants. The type and concentration of pollutants in residual solids can vary substantially depending upon the feedstock and the digestion practices. In general, residual solids are expected to contain substantial amounts of organic matter and sediment, as well as significant levels of salt, nutrients, and in some cases, heavy metals, pathogens, and toxic organic and/or inorganic pollutants. Residual solids containing high levels of heavy metals or toxins would be required to be handled as a waste and disposed of in an appropriately managed landfill where they would not have a significant potential to adversely impact surface water or groundwater. Composting and/or direct land application as soil amendment could be an alternative management option for residual solids. Residual solids used for composting or as a soil amendment could not contain high levels of heavy metals, or other toxins. Composting of residual solids would occur at an appropriately permitted composting facility that has undergone an environmental review, and therefore would not be likely to result in a significant increase in surface or groundwater quality pollution. However, unless properly managed, land application of residual solids and compost could adversely impact the quality of surface water and groundwater (ESA June 2011). Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-40 City of Palo Alto 1018498.1 The volume and composition of liquid digestate is expected to depend substantially on the characteristics of the anaerobic digester feedstock and, to some degree, on the type of digestion process employed. In general, liquid digestate may contain elevated levels of nutrients (nitrogen and phosphorous compounds), salts (inorganic dissolved solids), microbes (some of which may be pathogenic), heavy metals, and other organic and inorganic constituents associated with the feedstock (e.g., biosolids). Liquid digestate flows having high concentrations of pathogenic microbes, heavy metals, and other toxic compounds could potentially be discharged to the City’s municipal sewer system for further treatment. Treatment at the wastewater treatment plant could reduce pollutant concentrations to levels consistent with the plant’s discharge permit, and therefore would not result in a significant decrease in water quality (ESA June 2011). Potential degradation of surface water and groundwater quality was identified as a significant impact in the Statewide AD Facilities EIR. The impact was considered less than significant following implementation of the identified mitigation measures. To ensure the degradation of surface water and groundwater quality remain less than significant, the following mitigation measure included in the Statewide AD Facilities EIR shall be implemented. Mitigation Measure 12 During pre-processing, all water that contacts digester feedstock, including storm water from feedstock handling and storage facilities and water from equipment washdown and feedstock wetting, shall be contained until appropriately disposed or utilized. Best Management Practices (BMPs) may be used to reduce loading of sediment, nutrients, trash, organic matter, and other pollutants. These BMPs may include, but are not limited to, trash grates and filters, oil-water separators, mechanical filters such as sand filters, vegetated swales, settling ponds, and other facilities to reduce the potential loading of pollutants into surface waters or groundwater. All discharges of storm water are prohibited unless covered under the General Industrial Stormwater Permit, other National Pollutant Discharge Elimination System (NPDES) permit, or are exempted from NPDES permitting requirements. The NPDES permits will generally require implementation of management measures to achieve a performance standard of best available technology economically achievable (BAT) and best conventional pollutant control technology (BCT), as appropriate. The General Industrial Stormwater Permit also requires the development of a storm water pollution prevention plan (SWPPP) and a monitoring plan, in compliance with permit requirements. Other liquid and solid wastes may only be discharged pursuant to an NPDES permit or waste discharge requirement (WDR) order. In order to minimize the amount of fugitive trash or feedstock released to surface waters, the following measures shall be implemented. When feasible, feedstocks shall be preferentially selected that contain minimal amounts of trash that could become entrained in surface water, either via direct contact with storm water flows or via other accidental release, such as due to wind. The facility operator shall ensure that (1) drainage from all feedstock loading, unloading, and storage areas is contained onsite or treated to remove trash and stray feedstock, and sediment prior to release; (2) in all feedstock loading and unloading areas, and all areas where feedstock is moved by front loaders or other uncovered or uncontained transport machinery, mechanical sweeping and/or equivalent trash control operational procedures shall be performed at least daily, during operations; and (3) the facility operator shall train all employees involved in feedstock handling so as to discourage, avoid, and minimize the release of feedstock or trash during operations. g) Place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? No Impact. The proposed alternatives are located within a 100-year flood zone, as shown on the Flood Insurance Rate Map and Palo Alto Comprehensive Plan. The proposed alternatives do not involve any new housing. Therefore, no housing would be placed within a 100-year floodplain with project implementation. Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-41 Environmental Checklist 1018498.1 h) Place within a 100-year flood hazard area structures that would impede or redirect flood flows? No Impact. The proposed alternatives are located within a 100-year flood zone, as shown on the Flood Insurance Rate Map and Palo Alto Comprehensive Plan. The facilities proposed at the landfill and/or RWQCP would be designed and constructed so as not to redirect or impede flood flows, in accordance with the City of Palo Alto’s grading ordinance and/or building permit requirements. As the sites are located in a FEMA Flood Zone “AE”, and would be subject to inundation if overtopping or failure of bayfront levees occurred, the proposed structures would be constructed in conformance with FEMA standards for structures located in such areas. i) Expose people or structures to a significant risk of loss, injury, or death involving flooding, including flooding as a result of the failure of a levee or dam? No Impact. As discussed in response to question h) above, the proposed alternatives would be subject to inundation if overtopping or failure of bayfront levees occurred. However, the proposed structures would be constructed in conformance with FEMA standards for structures located in such areas. Therefore, implementation of the proposed alternatives would not expose people or structures to a significant risk of loss, injury, or death involving flooding. j) Result in inundation by seiche, tsunami, or mudflow? No Impact. The project sites are not located in an area subject to seiches, tsunamis or mudflow. Therefore, no impacts related to these events would be anticipated with project implementation. Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-42 City of Palo Alto 1018498.1 2.10 LAND USE AND PLANNING ENVIRONMENTAL ISSUES Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact X. Land Use and Planning. Would the project: a) Physically divide an established community? b) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to, a general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? c) Conflict with any applicable habitat conservation plan or natural community conservation plan? ENVIRONMENTAL SETTING Palo Alto Comprehensive Plan Under California law, each city and county must have a Comprehensive Plan (also known as a General Plan) to guide its future growth and development. A Comprehensive Plan is a long-range document that includes goals, policies and programs for how a community will manage its land use, housing, circulation, natural resources, economics and public services. The City of Palo Alto currently is undertaking a Comprehensive Plan Amendment that will cover the period through 2020. The purpose of the Amendment is to extend the horizon year of the existing Comprehensive Plan adopted in 1998 from 2010 to 2020, revise base conditions and growth projections, modify policies and programs, update the land use map and revise the Housing Element. An environmental impact report (EIR) will be prepared in 2013 to analyze the Comprehensive Plan Amendment. The Comprehensive Plan serves as the guide for Palo Alto’s future development. The City Council and Planning and Transportation Commission use the Comprehensive Plan to evaluate land use changes and make funding and budget decisions, and City staff use it to regulate building and development and to inform its recommendations on projects (Palo Alto 2012). The land use map for the Comprehensive Plan designates the landfill as “Public Park” and the RWQCP as “Major Institution/Special Features.” The Comprehensive Plan defines the Public Park land use designation as: “Open lands whose primary purpose is active recreation and whose character is essentially urban. These areas have been planted with non-indigenous landscaping and require a concerted effort to maintain recreational facilities and landscaping.” The Comprehensive Plan defines the Major Institution/Special Features land use designation as: “Institutional, academic, governmental, and community service uses and lands that are either publicly owned or operated as non-profit organizations. Examples are hospitals and City facilities.” Palo Alto Zoning Regulations The Palo Alto zoning map and zoning regulations govern the use of land, including the construction, alteration, movement, replacement, or maintenance of buildings; the conduct of residential, commercial, industrial, and Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-43 Environmental Checklist 1018498.1 public service activities; the height, bulk, and placement of buildings and uses on each site; the provision of open space, amenities, off-street parking and loading; the relationships between buildings and uses on adjoining sites or within adjoining classes of districts; and such further aspects of land use and development as are appropriate to attain the purposes of the zoning regulations. The purposes of the zoning regulations are to promote and protect the public health, safety, peace, morals, comfort, convenience, and general welfare of the community of Palo Alto (Palo Alto 2012a). The zoning designation for both the landfill and RWQCP site is PF(D), Public Facilities District/Site and Design Review Combining District. DISCUSSION a) Physically divide an established community? No Impact. The proposed alternatives would not physically divide an established community. The proposed alternatives include components that are located at either the Palo Alto Landfill or the RWQCP within the City limits of Palo Alto. The proposed alternatives would be constructed within a 10-acre area of the landfill specifically designated for such uses in Measure E, which was passed by the citizens of Palo Alto in November 2011. This area is located directly southeast of the RWQCP and has historically been used as a municipal solid waste disposal area. The proposed alternatives would be constructed entirely within the boundaries of the existing landfill or the RWQCP. The biosolids export facilities at the RWQCP would use existing roadways to access Highway 101. Therefore, the proposed alternatives would not result in a disruption, physical division, or isolation of existing land uses and no impacts on established communities would occur with project implementation. b) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to, a general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? No impact. The proposed alternatives would be constructed on land owned by the City of Palo Alto. The landfill is located on land designated in the Palo Alto Comprehensive Plan as Public Park. However, the proposed alternatives would be constructed within a 10-acre area of the landfill specifically designated for such uses in Measure E. The land use designation for the RWQCP is Major Institution/Special Features. The construction of the proposed alternatives on the RWQCP would be consistent with this land use designation. The landfill and RWQCP sites are zoned PF(D), Public Facilities District/Site and Design Review Combining District. The Site and Design Review Combining District is intended to provide a process for review and approval of development in environmentally and ecologically sensitive areas in order to assure that use and development will be harmonious with other uses in the general vicinity, will be compatible with environmental and ecological objectives, and will be in accord with the Palo Alto Comprehensive Plan (Palo Alto Municipal Code, Section 18.30[G].010) (Palo Alto 2012a). The City’s process for projects within this District requires the submittal of a site plan and elevations to the Palo Alto Planning Commission. If approved by the planning commission, the site plan and elevations are forwarded to the architectural review board for review. The site plan and elevations, as approved by the planning commission and architectural review board are then submitted with recommendations to the Palo Alto City Council for final action (Palo Alto Municipal Code, Section 18.30[G].055) (Palo Alto 2012a). In conducting their review, the planning commission shall recommend changes as it may deem necessary to accomplish the following objectives: (a) To ensure construction and operation of the use in a manner that will be orderly, harmonious, and compatible with existing or potential uses of adjoining or nearby sites. Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-44 City of Palo Alto 1018498.1 (b) To ensure the desirability of investment, or the conduct of business, research, or educational activities, or other authorized occupations, in the same or adjacent areas. (c) To ensure that sound principles of environmental design and ecological balance shall be observed. (d) To ensure that the use will be in accord with the Palo Alto Comprehensive Plan (Palo Alto Municipal Code, Section 18.30[G].060) (Palo Alto 2012a). Compliance with these City regulations would ensure that the proposed alternatives would not conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project area. Based on this compliance, the proposed uses for the proposed alternatives would be consistent with the existing surrounding land uses, would not conflict with the land use or zoning designations for the landfill or the RWQCP, and would not conflict with a policy or regulation of an agency with jurisdiction over the project adopted for the purpose of avoiding or mitigating an environmental effect. Therefore, the proposed alternatives would have no adverse impacts on applicable land use plans, policies or regulations. c) Conflict with any applicable habitat conservation plan or natural community conservation plan? No Impact. The proposed alternatives would not conflict with the provisions of an adopted Habitat Conservation Plan, Natural Conservation Community Plan, or other approved local, regional, or state habitat conservation plan. As stated above, the proposed alternatives would be constructed within existing developed areas zoned for public facilities. For this reason, no impact is expected. Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-45 Environmental Checklist 1018498.1 2.11 MINERAL RESOURCES ENVIRONMENTAL ISSUES Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact XI. Mineral Resources. Would the project: a) Result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the state? b) Result in the loss of availability of a locally important mineral resource recovery site delineated on a local general plan, specific plan, or other land use plan? ENVIRONMENTAL SETTING The project sites include a closed landfill and an active wastewater treatment plant operation. These sites do not include mineral resources. DISCUSSION a) Result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the state? No Impact. No known mineral resources are present at the landfill site, which has been used for solid waste disposal since the 1930’s, or at the RWQCP. Therefore, the proposed alternatives would not result in the loss of known mineral resources of value to the region or residents of the state. No adverse effect on mineral resources would be anticipated. b) Result in the loss of availability of a locally important mineral resource recovery site delineated on a local general plan, specific plan, or other land use plan? No Impact. The proposed alternatives would not result in the loss of availability of a locally important mineral resource recovery site delineated on a local general plan, specific plan, or other land use plan. Therefore, the proposed alternatives would have no effect on locally important mineral resource recovery sites. Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-46 City of Palo Alto 1018498.1 2.12 NOISE ENVIRONMENTAL ISSUES Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact XII. Noise. Would the project result in: a) Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, or in other applicable local, state, or federal standards? b) Exposure of persons to or generation of excessive groundborne vibration or groundborne noise levels? c) A substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project? d) A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the project? e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? f) For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excessive noise levels? ENVIRONMENTAL SETTING Noise is generally defined as sound that is loud, disagreeable, unexpected, or unwanted. Sound is mechanical energy transmitted in the form of a wave because of a disturbance or vibration, and as any pressure variation in air that the human ear can detect. Because of the ability of the human ear to detect a wide range of sound-pressure fluctuations, sound-pressure levels are expressed in logarithmic units called decibels (dB) to avoid a very large and awkward range in numbers. The sound-pressure level in decibels is calculated by taking the log of the ratio between the actual sound pressure and the reference sound pressure squared. The reference sound pressure is considered the absolute hearing threshold (California Department of Transportation 1998). Use of this logarithmic scale reveals that the total sound from two individual 65-dBA sources is 68 dBA, not 130 dBA (i.e., doubling the source strength increases the sound pressure by 3 dBA). Vibration is the periodic oscillation of a medium or object. The rumbling sound caused by the vibration of room surfaces is called structureborne noise. Sources of groundborne vibrations include natural phenomena (e.g., earthquakes, volcanic eruptions, sea waves, landslides) or human-made causes (e.g., explosions, machinery, traffic, trains, construction equipment). Vibration sources may be continuous, such as factory machinery, or transient, such as explosions. As is the case with airborne sound, groundborne vibrations may be described by amplitude and frequency. Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-47 Environmental Checklist 1018498.1 Vibration amplitudes are usually expressed in peak particle velocity (PPV) or root mean squared (RMS), as in RMS vibration velocity. The PPV and RMS velocity are normally described in inches per second (in/sec). PPV is defined as the maximum instantaneous positive or negative peak of a vibration signal. PPV is often used in monitoring of blasting vibration because it is related to the stresses that are experienced by buildings (FTA 2006; Caltrans 2002). Caltrans has established a recommended standard for vibration levels of 0.2 inches per second PPV (Caltrans 2002). Existing Noise Environment The principal noise source in the vicinity of the project site consists primarily of overflight aircraft noise from the Palo Alto Airport. Traffic noise from Highway 101 and Embarcadero Road also contribute to the ambient noise environment. DISCUSSION a) Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, or in other applicable local, state, or federal standards? Less Than Significant With Mitigation Incorporated. Operations of the proposed alternative at the landfill and/or RWQCP would generate noise levels that would be perceptible off of the sites. The City of Palo Alto Noise Ordinance requires that noise levels produced on public property not exceed the local ambient noise levels by more than fifteen decibels at a distance of twenty-five feet or more. The project is not expected to exceed this threshold, as the amount of noise-generating equipment proposed with the project alternatives would not be substantially greater than the equipment historically used at the landfill site. Closure activities will be ongoing at the landfill. In addition, the proposed facilities at the landfill and RWQCP are anticipated to be enclosed, which would substantially diminish noise levels. However, operational noise levels could be disruptive for Byxbee Park users in the future due to the proximity of the landfill and RWQCP to the park. The expected noise levels would depend upon the ultimate design and operational characteristics of the facilities at the landfill and RWQCP. Operational activities associated with the proposed alternatives that would generate noise include preprocessing, vehicle circulation, and the operation of certain mechanical equipment such as stationary pumps, motors, compressors, fans, generators, and other equipment. Pre-processing activities include noise generating steps such as sorting and grinding. Some equipment such as electrical generators operate 24-hours a day, creating operational noise during night time hours. The biosolids export component would generate increased noise levels associated with material loading as well as increased truck traffic at the RWQCP and along the local haul route accessing Highway 101. Operational noise impacts were identified as a significant impact in the Statewide AD Facilities EIR. The impact was considered less than significant following implementation of the identified mitigation measures. To ensure noise impacts associated with operational components of the proposed alternatives remain less than significant, the following mitigation measure included in the Statewide AD Facilities EIR shall be implemented. Mitigation Measure 13 AD facilities located within 2,000 feet of a sensitive receptor shall conduct a site specific noise study. If operational sound levels would exceed local regulations (i.e., the City’s industrial noise level standard of 70 to 85 dBA), or 45 dBA at a sensitive receptor (if no regulations are available), additional sound-proofing such as enclosures, muffling, shielding, or other attenuation measures shall be installed to meet the required sound level. Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-48 City of Palo Alto 1018498.1 b) Exposure of persons to or generation of excessive groundborne vibration or groundborne noise levels? No Impact. Operations of the proposed alternatives at the landfill and/or RWQCP would generate some groundborne vibration during construction activities. However, following construction, no substantial groundborne vibration sources would be anticipated. Therefore, the proposed alternatives would not be expected to expose persons to or generate excessive groundborne vibration or groundborne noise levels. c) A substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project? Less Than Significant With Mitigation Incorporated. The operational components of the proposed alternatives have the potential to increase ambient noise levels in the project vicinity, as discuss in response to question a) above. A noise mitigation measure has been identified in response to this impact that includes the preparation of a noise study. The noise study would identify specific noise impacts for the proposed alternatives and would recommend appropriate mitigation measures to minimize noise generation from facility operations. With implementation of these mitigation measures, the proposed alternatives would not be expected to result in substantial permanent increases in ambient noise levels in the project vicinity above levels existing without the proposed alternatives. d) A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the project? Less Than Significant With Mitigation Incorporated. The construction components of the proposed alternatives would result in temporary increases in noise at the landfill site and at the RWQCP site. The construction noise would be generated from onsite construction vehicles and equipment as well as from trucks delivering materials to the site. Periodic increases in noise levels would likely occur during site operations as well, particularly during material delivery. These temporary or periodic noise increases would primarily affect the users of Byxbee Park. As discussed in the answer to question a) above, these noise impacts would be minimized with the implementation of the identified mitigation measures. More detailed analysis of these impacts will be provided in the EIR for the proposed alternatives. Construction-related noise impacts were identified as a significant impact in the Statewide AD Facilities EIR. The impact was considered less than significant following implementation of the identified mitigation measures. To ensure noise impacts associated with the construction components of the proposed alternatives remain less than significant, the following mitigation measure included in the Statewide AD Facilities EIR shall be implemented. Mitigation Measure 14 Construction activities shall be limited to the hours established by the City of Palo Alto, which are identified in the Palo Alto Noise Ordinance as between 8:00 a.m. and 6:00 p.m., Monday through Friday, and between 9:00 a.m. and 6:00 p.m. Saturday. Construction equipment noise shall be minimized by muffling and shielding intakes and exhaust on construction equipment to a level no less effective than the manufacture’s specifications, and by shrouding or shielding impact tools. Construction contractors within 750 feet of sensitive receptors shall locate fixed construction equipment, such as compressors and generators, and construction staging areas as far as possible from nearby sensitive receptors. Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-49 Environmental Checklist 1018498.1 Construction contractors shall comply with all local noise ordinances and regulations. e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? No Impact. Although the project sites are currently exposed to elevated noise levels associated with aircraft operation from the Palo Alto Airport, the proposed alternatives would not increase the noise levels associated with aircraft operations and would not substantially increase the number of people exposed to this noise source. Therefore, the proposed alternatives would not substantially increase the exposure of people residing or working in the project area to excessive noise levels associated with airport operations. f) For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excessive noise levels? No Impact. The project sites are not located in the vicinity of a private airport. Therefore, the proposed alternatives would not expose people residing or working in the project area to excessive noise levels associated with private airstrip operations. Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-50 City of Palo Alto 1018498.1 2.13 POPULATION AND HOUSING ENVIRONMENTAL ISSUES Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact XIII. Population and Housing. Would the project: a) Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)? b) Displace substantial numbers of existing homes, necessitating the construction of replacement housing elsewhere? c) Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere? ENVIRONMENTAL SETTING The proposed alternatives include the location of facilities at the Palo Alto Landfill and at the RWQCP within the northeastern portion of the City of Palo Alto. Population growth and projected housing needs within the City area are addressed in the Palo Alto Comprehensive Plan. DISCUSSION a) Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)? No Impact. An increase in the number of employees necessary to manage the City’s organic waste and biosolids would be required for the proposed alternatives. Facility construction would temporarily increase the employment base. However, the number of employees necessary to construct and operate the proposed alternatives would not be expected to directly result in substantial population growth in the city. The proposed alternatives would not include the construction of any roads or infrastructure that would indirectly induce substantial population growth. The extension of Embarcadero Way would be necessary to develop the landfill site; however, this extension would result in Embarcadero Way dead ending at the site. Therefore, it would not provide opportunities for new homes or businesses that would induce substantial population growth. No impact regarding substantial population growth in the area is anticipated. b) Displace substantial numbers of existing homes, necessitating the construction of replacement housing elsewhere? No Impact. No homes would be displaced by the implementation of the proposed alternatives. Therefore, no housing impacts would be anticipated with implementation of the alternatives. Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-51 Environmental Checklist 1018498.1 c) Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere? No Impact. No homes would be displaced by implementation of the proposed alternatives; therefore, no people would be displaced. Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-52 City of Palo Alto 1018498.1 2.14 PUBLIC SERVICES ENVIRONMENTAL ISSUES Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact IX. Public Services. Would the project: a) Result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, or the need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times, or other performance objectives for any of the public services: Fire protection? Police protection? Schools? Parks? Other public facilities? ENVIRONMENTAL SETTING Public services include fire and police protection, schools and other public facilities. Fire and police protection is provided to the landfill and RWQCP by the City of Palo Alto Fire and Police Departments. The Palo Alto Fire Department has 115 personnel and seven fire stations. The Department also provides transport ambulance service for Palo Alto and Stanford University. The Palo Alto Police Department has 169 personnel. The Palo Alto Unified School District, which serves the project area, consists of twelve elementary schools, three middle schools and two high schools. The closest school to the project sites is the Ohlone Elementary School, which is located more than a mile to the southwest across Highway 101. DISCUSSION a) Result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, or the need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times, or other performance objectives for any of the public services: Fire protection? No Impact. The proposed alternatives would not directly or indirectly increase the local population. New employees associated with implementation of the alternatives are assumed to derive from the local population base. The proposed alternatives would not extend the service area of the fire department or require additional fire protection facilities be constructed. Therefore, no adverse fire protection impacts would be anticipated with project implementation. Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-53 Environmental Checklist 1018498.1 Police protection? No Impact. Implementation of the proposed alternatives would not require an increase in police protection services or the construction of additional police facilities. Therefore, no police protection impacts would be anticipated with project implementation. Schools? No Impact. Implementation of the proposed alternatives does not include any uses that would increase the demands on local schools. Therefore, no school facility impacts would be anticipated with project implementation. Parks? No Impact. Implementation of the proposed alternatives does not include any uses that would increase the demands on local parks. The landfill site is designated as Byxbee Park but the area identified for the proposed alternatives has been historically used as a landfill disposal area and its conversion to E/C Facility uses would not reduce the active parkland within the City. Therefore, no increase in park facility demands would be anticipated with project implementation. Other public facilities? No Impact. Implementation of the proposed alternatives would not change the demand for public facility services as compared to existing conditions. Therefore, no public facility impacts would be anticipated with project implementation. Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-54 City of Palo Alto 1018498.1 2.15 RECREATION ENVIRONMENTAL ISSUES Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact XV. Recreation. Would the project: a) Increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? b) Include recreational facilities or require the construction or expansion of recreational facilities that might have an adverse physical effect on the environment? ENVIRONMENTAL SETTING The two primary recreational facilities in the project area include Byxbee Park and the Palo Alto Golf Course. The proposed landfill site is located entirely on Byxbee Park. The RWQCP is located directly northwest of the park. The Palo Alto Golf Course is located to the northwest of the RWQCP across Embarcadero Road. DISCUSSION a) Increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? No Impact. The entire closed landfill is designated as Byxbee Park and portions of the landfill have been converted to park uses. However, the portion of the park identified for use by the proposed alternatives has not been converted to park uses. Its use for the proposed alternatives would either delay or preclude its ultimate conversion to park uses. However, because the proposed site is not currently used as a park, its conversion from landfill uses to other uses would not directly affect the existing public use of Byxbee Park. The acreage of Byxbee Park currently used as a public park would not change with implementation of the project alternatives. Therefore, the proposed alternatives would not increase the use of the existing public park components of Byxbee Park such that substantial physical deterioration of the park would occur or be accelerated. The development of the landfill site could alter the experience of park users by introducing a new type of waste management activity within the park boundaries. The effects experienced by park users, such as changes in the noise, lighting and odors generation from the site, are discussed in other sections of this checklist. However, none of these effects would be expected to increase the demands on the public use areas within Byxbee Park. If the proposed alternatives are constructed on the RWQCP site and the landfill site is not used for source separated organic material or biosolid processing, then the landfill site could more rapidly be converted to park uses. However, this conversion would not be expected to increase the demands on the public use areas such that substantial physical deterioration of the park would occur. Therefore, no recreational facility impacts would be anticipated with implementation of the proposed alternatives. Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-55 Environmental Checklist 1018498.1 b) Include recreational facilities or require the construction or expansion of recreational facilities that might have an adverse physical effect on the environment? No Impact. The proposed alternatives do not include proposed recreational facilities nor do they require the construction or expansion of recreational facilities. Therefore, no impacts associated with recreational facilities would be anticipated with implementation of the proposed alternatives. Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-56 City of Palo Alto 1018498.1 2.16 TRANSPORTATION/TRAFFIC ENVIRONMENTAL ISSUES Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact XVI. Transportation/Traffic. Would the project: a) Conflict with an applicable plan, ordinance or policy establishing measures of effectiveness for the performance of the circulation system, taking into account all modes of transportation including mass transit and non-motorized travel and relevant components of the circulation system, including but not limited to intersections, streets, highways and freeways, pedestrian and bicycle paths, and mass transit? b) Conflict with an applicable congestion management program, including, but not limited to level of service standards and travel demand measures, or other standards established by the county congestion management agency for designated roads or highways? c) Result in a change in air traffic patterns, including either an increase in traffic levels or a change in location that results in substantial safety risks? d) Substantially increase hazards due to a design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? e) Result in inadequate emergency access? f) Conflict with adopted policies, plans, or programs regarding public transit, bicycle, or pedestrian facilities, or otherwise decrease the performance or safety of such facilities? ENVIRONMENTAL SETTING The primary roadways in the project vicinity include Highway 101, Embarcadero Road and Embarcadero Way. Highway 101 is an eight-lane freeway with one lane in each direction designated for carpools. The Highway 101/Embarcadero Road interchange has a typical cloverleaf design with Embarcadero Road crossing over the top of the highway. The four-lane Embarcadero Road extends slightly less than ½ mile to its intersection with Embarcadero Way. Embarcadero Way provides direct access to the RWQCP. Embarcadero Road reduces to three lanes and then two lanes as it continues to the east and then turns to the southeast around the boundary of the RWQCP, terminating at the landfill entrance. A short roadway extends east from Embarcadero Road to a small parking lot used to access Byxbee Park. DISCUSSION a) Conflict with an applicable plan, ordinance or policy establishing measures of effectiveness for the performance of the circulation system, taking into account all modes of transportation including mass transit and non-motorized travel and relevant Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-57 Environmental Checklist 1018498.1 components of the circulation system, including but not limited to intersections, streets, highways and freeways, pedestrian and bicycle paths, and mass transit? Less-Than-Significant Impact. The proposed alternatives would result in an increase in the overall number of vehicles traveling to and from the sites, as compared with current RWQCP uses. The biosolids export alternative would result in the greatest increase in traffic of the proposed alternatives. The construction associated with the proposed alternatives would result in temporary increases in vehicle traffic on local roadways. However, the proposed alternatives would not be expected to cause a substantial increase in traffic on the local roadway system, or result in an exceedance of the level of service standard established by the county congestion management agency due to the relatively high capacity of the existing roadway system and the majority of the trips occurring outside of the typical peak travel periods (i.e., peak hours). The intersection that would be the most directly affected by project traffic is the intersection of Embarcadero Road and East Bayshore Road, located approximately ½ mile west of the site. As Embarcadero Road provides the only access to the site from Highway 101 and the rest of Palo Alto west of Highway 101, all project traffic would pass through the intersection. The Palo Alto Comprehensive Plan identifies this intersection as a key intersection to be monitored for growth management, in association with the East Bayshore and Edgewood Plaza Growth Monitoring Areas. At this time, the specific number of trips anticipated with each of the alternatives has not been determined and additional analysis of traffic impacts will be necessary in the EIR prepared for the proposed alternatives. Each of the alternatives would add some vehicle trips to the existing roadway network, which could degrade the capacities of the roadways accessing the sites during peak periods. However, because the proposed alternatives are anticipated to generate relatively low levels of vehicle trips in comparison to the capacities of the roadways accessing the sites and the majority of the trips would be expected to occur outside of peak periods, significant traffic impacts would not be anticipated. b) Conflict with an applicable congestion management program, including, but not limited to level of service standards and travel demand measures, or other standards established by the county congestion management agency for designated roads or highways? No Impact. The vehicles accessing the landfill and RWQCP sites for the proposed alternatives would use Embarcadero Road to access Highway 101. This four-lane roadway has sufficient capacity to accommodate the existing industrial, commercial and recreational uses northeast of Highway 101 as well as the truck traffic associated with implementation of the proposed alternatives. Therefore, no conflicts with applicable congestion management programs would be anticipated with implementation of the proposed alternatives. c) Result in a change in air traffic patterns, including either an increase in traffic levels or a change in location that results in substantial safety risks? No Impact. A small-scale airport operated by the County of Santa Clara (Palo Alto Airport) is located directly north of the RWQCP. This airport is located less than 3,000 feet from the landfill and RWQCP sites. However, the proposed alternatives do not include any uses that would change air traffic patterns. Therefore, no impact on air traffic patterns would be anticipated with implementation of the proposed alternatives. d) Substantially increase hazards due to a design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? No Impact. The proposed alternatives would not alter the design of the existing roadways accessing either the landfill or the RWQCP sites, other than extending Embarcadero Way onto the landfill site. Trucks accessing both sites from Highway 101 would use Embarcadero Road and Embarcadero Way, both of which are well maintained Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-58 City of Palo Alto 1018498.1 and relatively straight roadways that do not have any unusual design features. These roadways are designed to accommodate the existing industrial, commercial and recreational uses in the project area. Therefore, no roadway hazard impacts would be anticipated. e) Result in inadequate emergency access? No Impact. The proposed alternatives would not result in inadequate emergency access at either the landfill or the RWQCP site. Embarcadero Road is designated as a Primary Evacuation Route in the Palo Alto Comprehensive Plan and would be the principal ingress and egress route in the event of an emergency at either site. Both sites would be accessible from Embarcadero Road to the northeast and from Embarcadero Way to the southwest. Embarcadero Road connects directly to Highway 101 and is four lanes wide from its intersection with Embarcadero Way to Highway 101. With two separate access points during an emergency, adequate access would be provided to both sites. Therefore, the proposed alternatives would not result in inadequate emergency access. f) Conflict with adopted policies, plans, or programs regarding public transit, bicycle, or pedestrian facilities, or otherwise decrease the performance or safety of such facilities? No Impact. The proposed alternatives do not include elements that would conflict with adopted policies, plans, or programs supporting alternative transportation. For the proposed alternatives, vehicle access from Highway 101 would be provided to the landfill and RWQCP by way of Embarcadero Road and Embarcadero Way. No changes to these roadways are proposed, other than extending Embarcadero Way to the landfill site. Therefore, the proposed alternatives would have no effect on alternative modes of transportation. Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-59 Environmental Checklist 1018498.1 2.17 UTILITIES AND SERVICE SYSTEMS ENVIRONMENTAL ISSUES Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact XVII. Utilities and Service Systems. Would the project: a) Exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board? b) Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? c) Require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? d) Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or expanded entitlements needed? e) Result in a determination by the wastewater treatment provider that serves or may serve the project that it has adequate capacity to serve the project’s projected demand, in addition to the provider’s existing commitments? f) Be served by a landfill with sufficient permitted capacity to accommodate the project’s solid waste disposal needs? g) Comply with federal, state, and local statutes and regulations related to solid waste? ENVIRONMENTAL SETTING The Palo Alto Landfill has an existing storm water drainage system that is required to comply with the Waste Discharge Requirements issued for the site by the San Francisco Bay Regional Water Quality Control Board. The RWQCP also has a storm water drainage system that is regulated by the San Francisco Bay Regional Water Quality Control Board. The City of Palo Alto Utilities provides the water supply and waste water treatment services for the project area. DISCUSSION a) Exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board? Less Than Significant Impact. The proposed alternatives could include the generation of wastewater from the AD and gasification facilities that would require treatment. Wastewater from AD facilities could include ammonia that might require additional treatment facilities at the RWQCP or the pre-treatment prior to discharging to the RWQCP. The installation and operation of these ammonia treatment facilities would be required to comply with Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-60 City of Palo Alto 1018498.1 the RWQCP’s applicable permitting requirements. Therefore, the construction of these facilities would not be expected to exceed wastewater treatment requirements of the San Francisco Bay Regional Water Quality Control Board. b) Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? Less Than Significant Impact. As discussed in response to question a) above, the proposed alternatives could include the generation of wastewater from the AD facilities that may require additional treatment facilities at the RWQCP or the pre-treatment prior to discharging to the RWQCP. The installation and operation of these ammonia treatment facilities would be expected to occur within the boundaries of the developed RWQCP, which has sufficient space to accommodate these uses. Therefore, the construction of these facilities would not be expected to cause significant environmental effects. c) Require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? Less Than Significant With Mitigation Incorporated. Changes in site drainage and flooding patterns were identified in the Statewide AD Facilities EIR as a significant impact requiring mitigation. The mitigation from the 2011 EIR required the preparation of a comprehensive drainage plan to ensure that, at a minimum, no net increase in storm water discharge would occur during a 10-year, 24-hour storm event. The impact was considered less than significant following implementation of the identified mitigation measures. As discussed in Section 2.7, Hydrology and Water Quality, the proposed alternatives would alter the drainage characteristics of the landfill site by excavating areas of waste fill within the existing landfill mound and leveling the site to accommodate facility construction and operation. The excavation of the landfill mound would require the installation of a retaining wall to limit the mound area that would need to be excavated. The site excavation activities and facility construction would alter the site’s storm water system and would likely increase storm water discharge from the site, requiring the installation of new storm water drainage facilities. In order to ensure that the proposed alternatives would not result in detrimental increases in storm water flow or flooding on the sites or downstream, mitigation measures are identified in Section 2.7 to minimize these impacts. d) Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or expanded entitlements needed? Less Than Significant Impact. The proposed alternatives would be provided water from Palo Alto Utilities. The quantity of water needed for the proposed alternatives would depend upon the specific technology selected. However, the water demand would not be expected to be excessive or to exceed available capacities. Less-than- significant water supply impacts would be anticipated with implementation of the proposed alternatives. e) Result in a determination by the wastewater treatment provider that serves or may serve the project that it has adequate capacity to serve the project’s projected demand, in addition to the provider’s existing commitments? No Impact. The treatment of wastewater from the dry and wet AD facilities associated with the proposed alternatives could require the installation of additional ammonia treatment facilities at the RWQCP. However, these ammonia treatment facilities would not be expected to diminish the treatment plant’s existing capacities. Also, because the volume of wastewater generated from the AD facilities is expected to be relatively small, the ability of the RWQCP to continue to meet the City’s demands for wastewater treatment is not expected to be diminished with implementation of the proposed alternatives. Therefore, significant wastewater facility impacts would not be anticipated with implementation of the proposed alternatives. Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-61 Environmental Checklist 1018498.1 f) Be served by a landfill with sufficient permitted capacity to accommodate the project’s solid waste disposal needs? No Impact. The proposed alternatives are intended to improve the City’s management of food scraps, yard trimmings, and biosolids. With implementation, the alternatives would reduce landfill disposal when compared to current conditions by diverting food scraps from the municipal solid waste stream. Some solid waste would be generated during construction activities. However, due to the relatively small size of the proposed facilities, substantial solid waste generation from construction activities would not be anticipated. The excavation of the landfill mound necessary to accommodate development would require the relocation of previously disposed waste to another portion of the landfill. Relocating previously disturbed waste at the landfill would not alter the permitted capacity of an operating landfill, as the Palo Alto Landfill is in the process of being permanently closed. Therefore, no adverse solid waste disposal facility impacts would be anticipated with project implementation. g) Comply with federal, state, and local statutes and regulations related to solid waste? No Impact. As an existing permitted solid waste facility, the activities at the Palo Alto landfill are required to comply with all applicable federal, state, and local statutes and regulations related to solid waste. In order to implement the proposed alternatives, any facility would be required to comply with all applicable statutes and regulations whether it was located at the landfill or the RWQCP. Therefore, the proposed alternatives would not be expected to conflict with any solid waste statutes or regulations. Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2-62 City of Palo Alto 1018498.1 2.18 MANDATORY FINDINGS OF SIGNIFICANCE ENVIRONMENTAL ISSUES Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact XVIII. Mandatory Findings of Significance. a) Does the project have the potential to substantially degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self- sustaining levels, threaten to eliminate a plant or animal community, substantially reduce the number or restrict the range of an endangered, rare, or threatened species, or eliminate important examples of the major periods of California history or prehistory? b) Does the project have impacts that are individually limited, but cumulatively considerable? (“Cumulatively considerable” means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects.) c) Does the project have environmental effects that will cause substantial adverse effects on human beings, either directly or indirectly? Authority: Public Resources Code Sections 21083 and 21087. Reference: Public Resources Code Sections 21080(c), 21080.1, 21080.3, 21082.1, 21083, 21083.3, 21093, 21094, 21151; Sundstrom v. County of Mendocino, 202 Cal.App.3d 296 (1988); Leonoff v. Monterey Board of Supervisors, 222 Cal.App.3d 1337 (1990). DISCUSSION a) Does the project have the potential to substantially degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, substantially reduce the number or restrict the range of an endangered, rare, or threatened species, or eliminate important examples of the major periods of California history or prehistory? No Impact. Implementation of the proposed alternatives would include development at the closed landfill and/or at the RWQCP. Both of these sites have been disturbed by prior site development and do not contain sensitive species or habitats. For the potential offsite biological resource impacts identified in this checklist, mitigation measures have been identified that would ensure these impacts remain less than significant. As discussed in the other sections of this checklist, the proposed alternatives would not substantially reduce the habitat of a fish or wildlife species, cause fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, substantially reduce the number or restrict the range of rare or endangered plants or animals, or eliminate examples of California history or prehistory. Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Douglas Environmental City of Palo Alto 2-63 Environmental Checklist 1018498.1 b) Does the project have impacts that are individually limited, but cumulatively considerable? (“Cumulatively considerable” means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects.) No Impact. The proposed alternatives would not add considerably to any cumulative impacts in the region, as discussed in other sections of this checklist. No other projects that would create cumulatively considerable environmental impacts are proposed in the project vicinity. The proposed sites for the alternatives are surrounded by Byxbee Park and existing commercial land uses that have been fully developed. Therefore, the implementation of the proposed alternatives would not contribute to cumulative impacts. c) Does the project have environmental effects that will cause substantial adverse effects on human beings, either directly or indirectly? No Impact. As discussed in other sections of this checklist and in the responses to questions a) and b) above, the proposed alternatives would not be expected to cause substantial adverse effects on human beings, either directly or indirectly. 3 REFERENCES California Air Resources Board (CARB), 2009. Hot Spots Analysis and Reporting Program (HARP), version 1.3. California Department of Transportation (Caltrans). 1998 (October). Traffic Noise Analysis Protocol: Technical Noise Supplement. Sacramento, CA. California Department of Transportation (Caltrans). 2002 (December). Guide for the Preparation of Traffic Impact Studies, Sacramento, CA. City of Palo Alto. 2012. Comprehensive Plan Amendment. http://www.paloaltocompplan2020.org/. Accessed October 24, 2012. California Energy Commission (CEC). 2006. Our Changing Climate - Assessing the Risks to California. A Summary Report from the California Climate Change Center, CEC-500-2006-077. Public Interest Energy Research Program, California Energy Commission. Sacramento, CA. July 2006. California Energy Commission (CEC). 2008. The Future is Now, An Update on Climate Change Science, Impacts, and Response Options for California. CEC-500-2008-077, Public Interest Energy Research Program, California Energy Commission. Sacramento, CA. September 2008. City of Palo Alto. 2012a. Palo Alto Zoning Regulations. http://www.cityofpaloalto.org/news/displaynews.asp?NewsID=725&TargetID=85. Accessed October 24, 2012. City of Palo Alto. December, 2012. Final Request for Proposals to Establish an Energy/Compost Facility or Export Food Scraps, Yard Trimmings and Biosolids. Issued by: City of Palo Alto, California. February 2013. City of Palo Alto. July 17, 2007. Palo Alto Comprehensive Plan. City of Palo Alto Department of Planning and Community Environment. October 6, 2008. 4th Edition of the Palo Alto Baylands Master Plan, Reformatted with Information Update in 2008. Resolution No. 8864. Climate Action Team (CAT). 2006. Climate Action Team Report to Governor Schwarzenegger and the Legislature. Climate Action Team. Sacramento, CA. March 2006. ESA. June 2011. Statewide Anaerobic Digester Facilities for the Treatment of Municipal Organic Solid Waste Final Program Environmental Impact Report (SCH No. 2010042100). Prepared for the California Department of Resources Recycling and Recovery (CalRecycle). Federal Aviation Administration, 2007. Advisory Circular No. 150/5200-33b, Hazardous Wildlife Attractants on or Near Airports, August, 28, 2007, available online at http://www.faa.gov/documentLibrary/media/advisory_circular/150-5200-33B/150_5200_33b.doc. Federal Transit Administration (FTA). 2006 (May). Transit Noise and Vibration Impact Assessment. Washington, D.C. International Panel on Climate Change (IPCC). 2007. Climate Change 2007: The Physical Science Basis and Technical Summary. Contribution of Working Group I to the Fourth Assessment Report of the IPCC. Intergovernmental Panel on Climate Change. Douglas Environmental Palo Alto Energy/Compost Facility/Export - Preliminary Checklist Environmental Checklist 2 City of Palo Alto 1018498.1 Office of Environmental Health Hazard Assessment (OEHHA), 2003. The Air Toxics Hot Spots Program Guidance Manual for Preparation of Health Risk Assessments. RMC. March 19, 2009. City of Palo Alto Recycled Water Project Initial Study/Mitigated Negative Declaration. US Environmental Protection Agency (USEPA), 1995. SCREEN3 Model User’s Guide, EPA-454/B-95-004, September 1995. City of Palo Alto (ID # 3222) City Council Staff Report Report Type: Meeting Date: 1/14/2013 City of Palo Alto Page 1 Summary Title: Approval of Pilot Compostables Collection Program Title: Approval of Pilot Residential Compostables Collection Program and Adjustment to Refuse Collection Frequency From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council approve and authorize staff to implement a Pilot Residential Compostables Collection program for a one-year period in a small geographic area that will be evaluated and selected by Public Works Environmental Services Division staff. Executive Summary Staff is proposing a small residential compostables collection pilot program that would recover the compostable kitchen wastes that are currently disposed at a landfill. The pilot would have two key features. First, food scraps would be placed in the green carts (instead of the black carts), and second, all wastes would be placed in either the green or blue carts, eliminating the need for separate collection of garbage (black carts). The 12-month pilot would start in April 2013 and necessary data will be collected to determine the feasibility of applying the program to the residential sector citywide. The goals of the program are to: 1) increase diversion from landfills, helping to achieve the City’s Zero Waste Goal; 2) determine if cost savings are possible through the elimination of separate garbage collection; 3) simplify the waste sorting for residents; and 4) reduce the number of garbage truck trips each week thereby reducing greenhouse gas generation. City of Palo Alto Page 2 Background On October 2, 2012, staff presented staff report #3099 to the Finance Committee with information about two possible options for a pilot program that would collect residential compostable material. Staff was following up on a previous Finance Committee request to consider cost reductions to the Refuse Fund by reducing the frequency of the City’s refuse collection. Staff identified the collection of food waste and other compostable materials as the optimal way to reduce collection frequency and also help the City achieve our goals of Zero Waste and reducing greenhouse gas emissions. By collecting residential food scraps and food soiled paper, approximately 6,000 tons of material could be diverted from the landfill to create a commercially available compost. The two options presented to the Finance Committee were: 1) Every Other Week Garbage Collection Option – This option would reduce the collection frequency of garbage and at the same time redirect all compostable waste (primarily yard trimmings and bagged food scraps and food soiled paper) to the green carts to be collected weekly. All recyclable materials and bagged landfill items (e.g., pet waste, diapers, and bathroom wastes) would be placed in the blue recycling carts and also collected weekly. The remaining inert non-compostable garbage (e.g., aseptic containers, foil beverage pouches, granola bar wrappers, metallic paper, ceramics, hoses, rubber bands) would be collected every other week. 2) Two Cart System (No separate Garbage Cart) – This option would completely eliminate the need for a separate garbage collection (black carts) and would redirect all compostable waste (primarily yard trimmings and bagged food scraps and food soiled paper) into the green carts. All recyclable materials and bagged landfill items (e.g., pet waste, diapers, and bathroom wastes) along with the non-compostable inert garbage would be placed in the blue recycling carts and also collected weekly. This option would require the small amount of remaining non-compostable garbage (in the blue cart) to be sorted out at a materials recovery facility (MRF). This is a different paradigm than what is in place now. Instead of residents sorting the recyclables and non-compostable garbage at home, non-compostable garbage is separated from the recyclables at a sorting facility. Currently, there are no communities in the Bay Area that have implemented this type of program. City of Palo Alto Page 3 Note that the City’s options are somewhat limited by a State health and safety regulation which requires certain types of wastes (known as putresiible waste) to be collected weekly. During the Finance Committee meeting on October 2, 2012, committee members expressed their initial preference for the simpler two cart system “no garbage cart” option for households and to ensure that program costs would not dramatically increase if the program were to be rolled out throughout the community. To gather public comments, staff led two community meetings in early November 2012 to discuss the two pilot options, the pilot’s evaluation criteria, and the community’s opinions and concerns. The community meetings also included a survey, which was taken both before and after the meeting. Over 40 members of the public attended the meetings The community responded unfavorably to the “no garbage cart option” before hearing the public presentation on the survey; however, the community responses taken after the public presentation showed a change toward acceptance of the two cart system. Once both options were presented, community members could see that the mimimal inert waste remaining in option one “every other week garbage collection” cart could be placed into the blue cart with little impact to the quality of the recyclable materials. Community members asked many questions about how the pilot would address where to place problem wastes, like diapers, pet waste, and bathroom waste. These wastes, which are currently being bagged by residents, would be placed in the blue cart. Discussion Staff had discussions and received operational input from GreenWaste (the City’s contracted waste collector and processor) and the City’s partners at the Sunnyvale Material Recovery and Transfer (SMaRT) Station. Additionally, staff received input from the Finance Committee, the public through two community meetings and an online survey. Staff has selected to propose the two-cart system – weekly collection for green and blue carts only, no black cart collection because: City of Palo Alto Page 4  It is a simpler, more convenient system;  Separate garbage collection can be eliminated completely, thereby reducing greenhouse gas emissions from vehicles and congestion;  The Finance Committee members favored the simpler system; and  A majority of residents at the community meetings supported it once it was explained. Specifically, staff is proposing a pilot where residents in the pilot route would only have two carts. Yard trimmings and all compostable material (primarily food scraps and food soiled paper), will be placed in the green cart. Large compostable items, like pizza boxes, could be placed directly into the cart without a bag. Current recyclables and landfill items will be placed in the blue cart. The landfill items, which for the most part are currently bagged by residents, would be bagged and placed in the blue cart. Landfill items include: pet waste, diapers, bathroom waste (e.g., dental floss, hygiene products, band aids), and inert garbage that cannot be recycled or composed (e.g., aseptic containers, foil beverage pouches, granola bar wrappers, metallic paper, ceramics, hoses, and rubber bands). This waste could be bagged together or separately. The bagged landfill materials in the blue cart would be separated from the recyclables at the GreenWaste Charles Street MRF in San Jose and landfilled or, if possible, recovered. The green cart material would continue to be taken to the SMaRT station, where bagged food scraps and food soiled paper would be separated from the yard trimmings. Both the yard trimmings and the food scraps would then be separately trucked to the Z-Best Composting Facility in Gilroy to be composted in separate units, producing different compost products. Both the green cart and the blue cart will be collected by GreenWaste once a week as required by the California State Health Code. City of Palo Alto Page 5 Currently, residential food scraps and food soiled paper are included in the garbage carts and eventually sent to the landfill. This food waste is compostable and should be diverted from the landfill – increasing the City’s diversion rate and moving the City closer to the Zero Waste goals. Neighborhood: Staff is in the process of finalizing the identification of a neighborhood for this pilot. The pilot would cover one day of one garbage route, which is approximately 700 homes. The neighborhood would be selected by the following criteria: 1) the neighborhood is defined by clear neighborhood boundaries; 2) the neighborhood has a mix of single-family and multi-family homes; 3) the neighborhood’s current garbage, recycling, and yard trimmings routes can easily overlap so that data from the pilot can be easily compared to the existing collection routine; and 4) the neighborhood has an existing and active neighborhood association with a strong outreach presence. Staff would conduct community meetings with the selected neighborhood, mailing out packets to explain how the pilot will work, and providing information and answering questions with door-to-door visits. If the public raises substantial concerns at the public meeting then staff will consider appropriate changes and advise Council. Residents would receive a pilot “tool kit,” which would include a small two-gallon kitchen container for food scraps, a few compostable bags to start, and a guide on which carts different items should be placed. Compostable bags are available at most local grocery stores. Timeframe: The pilot would cover a full twelve months and could begin as early as April 2013. This will allow pilot participants to evaluate how effectively the pilot works in different seasons (the fall tends to produce more yard trimmings) and provide an opportunity for staff to survey pilot participants at multiple times throughout the pilot. After 6 months of the pilot program, Staff will conduct an evaluation of the pilot and if substantial problems are found then appropriate corrections will be made and Council will be notified. Outreach: Pilot participants would receive a variety of outreach materials to help build understanding of the pilot program. Outreach would include: 1) a City of Palo Alto Page 6 letter introducing the pilot and its timeline; 2) public meeting(s) to explain the pilot and answer questions; 3) newsletter articles and emails by the neighborhood association about the pilot; 4) a toolkit delivered to each pilot residence consisting of a food scrap collection bucket, a comprehensive guide listing the appropriate cart for different wastes, cart stickers with sorting information and compostable bags; 5) cart tags with pilot information; and 6) staff would be available to answer questions during regular business hours. Evaluation Criteria: The pilot will be designed to examine how this change in service will impact collection, processing, and disposal costs, the community’s willingness to use the service, diversion rates, greenhouse gas production, and quality of the recycled material and compost. The pilot will be evaluated using five categories to establish whether the pilot should be rolled out to the entire community. The evaluation criteria categories include: 1. Costs: The pilot will show whether residential compostables collection and modified services are cost effective. The pilot will also determine the impacts on the City’s contract and fixed costs with GreenWaste, the SMaRT Station and the Kirby Canyon “put-or-pay” agreement for a citywide roll out. Additionally, staff will determine the potential cost impacts to residential rates and customer utility bills if the service were to expand citywide. 2. Convenience: The pilot will help provide answers to questions about how easy or difficult it is to use the two-sort system, as to whether food waste should be placed in bags, and to see if odors or other nuisance issues arise. Some households may also need to increase their cart size from the current standard (i.e., shifting from a 64 gallon cart to a 96 gallon cart). Staff will ask the pilot participants to complete pre-, mid-, and post-surveys to help evaluate convenience related questions. 3. Diversion rates: The pilot will help staff determine if the pilot helps divert more materials from the landfill. The shift from the current three-sort system to the two-sort system shifts some of the responsibility of material separation from the individual households to the SMaRT and GreenWaste MRFs. The pilot will help answer whether this system diverts more compostable and recyclable materials from the landfill. The projected City of Palo Alto Page 7 diversion rate of the pilot will need to be compared to comparable cities that collect food wastes in a three-sort system. 4. Material quality: Much like diversion rates, material quality may be altered by the shift to a two-sort system. Staff will work with GreenWaste and the SMaRT Station to evaluate and quantify the impacts on the quality and marketability of the materials through audits of the materials. 5. Greenhouse gas reduction: By reducing a cart, GreenWaste will be able to reduce the number of truck trips on the street. The reduction in trucks and changes in service levels may alter the carbon footprint of the collection system. Staff will also need to evaluate the life-cycle costs related to both the additional sorting needed to remove contamination from the green cart as well as the final use of the compost. The pilot will also help determine what modifications may be needed if the pilot expanded to the entire community. Timeline The pilot is scheduled to begin in April 2013. The pilot will last for a full year from 2013 to 2014. This will allow staff to determine if seasonal changes impact the program. In 2014, staff will return to Council with a full report on the outcomes of the pilot, and if recommended for Citywide adoptions, staff will present needed modifications to the pilot, costs, and other impacts. Resource Impact Funding for the pilot is currently included in the FY 2013 Refuse Fund operating budget. GreenWaste, SMaRT and Kirby Canyon increased fees will be negligable during this pilot. Staff will be engaged in extensive outreach efforts with the pilot neighborhood and participants with outreach costs estimated at approximately $12,000. City of Palo Alto Page 8 Policy Implications The pilot is consistent with the City’s Zero Waste Operational Plan and Climate Protection Plan both adopted in 2007 to provide for the collection and diversion of all compostable materials. Environmental Review This pilot collection project would be for information collection purposes and would qualify for a Class 6 Categorical Exemption consisting of basic data collection, research, experimental management, and resource evaluation activities which do not result in a serious or major disturbance to an environmental resource. City of Palo Alto (ID # 3317) City Council Informational Report Report Type: Informational Report Meeting Date: 1/14/2013 January 14, 2013 Page 1 of 1 (ID # 3317) Title: Surplus Property Donated to Nonprofit Organizations Subject: Report on Surplus Property Donated to Nonprofit Organizations and Contributions to the City from Those Nonprofit Organizations From: City Manager Lead Department: Administrative Services Recommendation This is an informational report and no Council action is required. Discussion On October 6, 2008, Council adopted an ordinance amending Section 2.31.010 of Chapter 2.31 to Title 2 of the Palo Alto Municipal Code, to allow the donation of unusable or obsolete City property and equipment to nonprofit organizations supporting the city’s programs. The ordinance specified that the City’s donation of surplus property “shall be contingent on a written agreement that any profits from the sale of such items shall be used for the purchase of equipment, books or capital expenses related to the program supported by the nonprofit organization.” It also specified that the City Manager “shall identify all property donated to nonprofit agencies pursuant [to the ordinance, and] in January of each year, the city manager shall provide a report to the city council that includes an inventory of the items donated by the City and all contributions made to the City from nonprofit organizations that have received surplus city property.” The following table summarizes donations given to the nonprofit organizations and gifts received from them. Please note Friends of Palo Alto Children’s Theatre donated $80,000.00, but these funds were not a result of the sale of surplus property. Attachments:  Attachment A: Friends - Costume Sale Donation Receipts (PDF) SURPLUS PROPERTY DONATED BY THE CITY OF PALO ALTO TO NONPROFIT ORGANIZATIONS Calendar Year 2012 Date Title of Organization Items donated by City to Organization Commercial Value of Items Donated to Organization Receipts Collected by Organization Goods Provided to City from Organization Commercial Value of Items Donated from Organization 1/13/12 Friends of Palo Alto Children’s Theatre Cash donation to the Children’s Theatre $80,000.00 06/04/12 Friends of Palo Alto Children’s Theatre Unusable clothing and costumes from theatre productions. $180.00 10/06/12 Friends of Palo Alto Children’s Theatre $5,254.501 Total $180.00 $5,254.501 $80,000.00 1 Receipts collected by organization at annual costume sale do not have a one to one correlation with the value of items given to them by the City. Unsold costumes are carried over for sale from one year to the next.