HomeMy WebLinkAbout2011-02-07 City Council Agenda PacketThis Agenda/Notice is Posted in
Accordance with Government Code
Section 549.2(A) or Section 54956
02/07/2011
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER
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Agenda posted according to PAMC Section 2.04.070. A binder containing supporting materials is available in the Council Chambers on
the Thursday preceding the meeting.
Special Meeting
Council Chambers
February 07, 2011
6:00 PM
ROLL CALL
CLOSED SESSION
Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker.
THE FOLLOWING CLOSED SESSION WILL BE HELD WITH THE CITY LABOR NEGOTIATORS.
1. CONFERENCE WITH LABOR NEGOTIATORS
City Designated Representatives: City Manager and his designees
pursuant to Merit System Rules and Regulations (James Keene,
Pamela Antil, Dennis Burns, Lalo Perez, Joe Saccio, Sandra Blanch,
Marcie Scott, Darrell Murray)
Employee Organization: Police Managers Association
Authority: Government Code Section 54957.6(a)
CONFERENCE WITH LABOR NEGOTIATORS
City Designated Representatives: City Manager and his designees
pursuant to Merit System Rules and Regulations (James Keene,
Pamela Antil, Dennis Burns, Lalo Perez, Joe Saccio, Sandra Blanch,
Marcie Scott, Darrell Murray)
Employee Organization: Palo Alto Police Officers Association
Authority: Government Code Section 54957.6(a)
CONFERENCE WITH LABOR NEGOTIATORS
City Designated Representatives: City Manager and his designees
pursuant to Merit System Rules and Regulations (James Keene,
Pamela Antil, Lalo Perez, Joe Saccio,Sandra Blanch, Marcie Scott,
Darrell Murray)
Unrepresented Employee Group: Management, Professional and
Confidential Employees
Authority: Government Code Section 54957.6(a)
2 02/07/2011
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.
CONFERENCE WITH LABOR NEGOTIATORS
City Designated Representatives: City Manager and his designees
pursuant to Merit System Rules and Regulations (James Keene,
Pamela Antil, Dennis Burns, Lalo Perez, Joe Saccio, Sandra Blanch,
Marcie Scott, Roger Bloom, Darrell Murray)
Employee Organization: International Association of Fire Fighters,
Local 1319
Authority: Government Code Section 54957.6(a)
CONFERENCE WITH LABOR NEGOTIATORS
City Designated Representatives: City Manager and his designees
pursuant to Merit System Rules and Regulations (James Keene,
Pamela Antil, Dennis Burns, Lalo Perez, Joe Saccio, Sandra Blanch,
Marcie Scott, Roger Bloom, Darrell Murray)
Employee Organization: Palo Alto Fire Chiefs’ Association
Authority: Government Code Section 54957.6(a)
CONFERENCE WITH LABOR NEGOTIATORS
City Designated Representatives: City Manager and his designees
pursuant to Merit System Rules and Regulations (James Keene,
Pamela Antil, Lalo Perez, Joe Saccio, Sandra Blanch, Marcie Scott,
Darrell Murray)
Employee Organization: Service Employees International Union, Local
521
Authority: Government Code Section 54957.6(a)
7:30 p.m. or as soon as possible thereafter
ORAL COMMUNICATIONS
Members of the public may speak to any item not on the agenda; three minutes per speaker. Council reserves the
right to limit the duration or Oral Communications period to 30 minutes.
SPECIAL ORDERS OF THE DAY
2. Presentation by Palo Alto Art Center Foundation
3. Appointments for the Library Advisory Committee for Three Terms
Ending January 31, 2014
ATTACHMENT
3 02/07/2011
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER
DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS.
CITY MANAGER COMMENTS
APPROVAL OF MINUTES
December 13, 2010
January 04, 2011
January 10, 2011
CONSENT CALENDAR
Items will be voted on in one motion unless removed from the calendar by two Council Members.
4. Resolution Setting the Council Vacation for 2011
ATTACHMENT
5. Finance Committee Recommendation to Adopt an Ordinance
Authorizing the Closing of the Budget for the 2010 Fiscal Year;
Approval of 2010 Comprehensive Annual Financial Report
(CAFR)
ID#1274
6. Finance Committee Recommendation to Accept the Maze & Associate
Audit of Financial Statements as of June 30, 2010 and Management
Letter
ATTACHMENT
7. Finance Committee Recommendation to Adopt a Resolution Amending
Utility Rate Schedules G10 and G3 of the City of Palo Alto Utilities
Rates and Charges Pertaining to Gas Rates
ID#1309
4 02/07/2011
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER
DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS.
8. Approval of Construction Funding Agreement Between the City of Palo
Alto and the Palo Alto Center Foundation for Upgrades to the Palo Alto
Art Center Renovation Project and Date Extension of MCA Design
Contract
ID#1301
9. Approve and Authorize the City Manager or His Designee to Execute
the Attached Amendment to Contract S09128287 with Northgate
Environmental Management, Inc., for an Additional Amount of $89,619
for Phase II Environmental Site Assessment Work at the Palo Alto
Airport
ID#1296
10. Approval of a Utilities Advisory Commission Recommendation to
Approve a Resolution Adopting a New Water Shortage Implementation
Plan to Replace the Previous Plan that Expired in June 2009
ID#1308
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.
STUDY SESSIONS
11. Staff Report from the City Manager Fire Department Services,
Resources & Utilization StudyPresentation Of Findings By International
City/County Management Association and Systems Planning/Tri Data
Consultants
ID#1334
12. Urban Forest Master Plan
ID#1332
5 02/07/2011
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.
COUNCIL MEMBER QUESTIONS, COMMENTS, AND ANNOUNCEMENTS
Members of the public may not speak to the item(s).
ADJOURNMENT
Persons with disabilities who require auxiliary aids or services in using City facilities, services, or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact
650-329-2550 (Voice) 24 hours in advance.
RESOLUTION NO. _____
RESOLUTION OF THE CITY OF PALO ALTO
SCHEDULING THE CITY COUNCIL VACATION AND WINTER CLOSURE FOR CALENDAR
YEAR 2011
WHEREAS, pursuant to Section 2.04.010 of the Municipal Code, the City Council must schedule
its annual vacation for each calendar year no later than the third meeting in February; and
WHEREAS, the City Council desires to set its annual vacation for 2011.
NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows:
The City Council sets their vacation for calendar year 2011, from Tuesday August 9, 2011
through Friday September 9, 2011 and winter closure from Monday, December 26, 2011
through Friday, January 6, 2012..
INTRODUCED AND PASSED: February 07, 2011
AYES: BURT, ESPINOSA, HOLMAN, KLEIN, PRICE, SCHARFF, SCHMID, SHEPHERD,
YEH
NOES:
ABSENTIONS:
ABSENT:
ATTEST: APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
City Attorney
City Manager
City of Palo Alto (ID # 1274)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 2/7/2011
February 07, 2011 Page 1 of 2
(ID # 1274)
Title: Ordinance Close of Budget 2010 & Approve CAFR
Subject: Finance Committee Recommendation to Adopt an Ordinance
Authorizing the Closing of the Budget for the 2010 Fiscal Year; Approval of 2010
Comprehensive Annual Financial Report (CAFR)
From: City Manager
Lead Department: Administrative Services
RECOMMENDATION
The Finance Committee and Staff recommend that Council adopt the attached Ordinance
authorizing closing of the Budget for the Fiscal Year ending June 30, 2010 and authorize re-
appropriation of 2010 funds into the 2011 budget; close completed capital improvement
projects; and transfer remaining Capital Improvement Project balances to the appropriate
reserves. Attachment A (CMR 453:10) includes an overview of the City’s financial condition. In
addition, the Finance Committee recommended approval of the City’s 2010 Comprehensive
Annual Financial Report (CAFR) (Attachment B to CMR 453:10; electronic copy available at
www.cityofpaloalto.org/depts/asd/financial_reporting.asp and hard copies are available at the
Administrative Services Office upon request).
BACKGROUND
As customary, the City Council is required to close out its financials each fiscal year. At its
December 21, 2010 meeting, the Finance Committee unanimously approved the closing of the
2010 fiscal year.
ATTACHMENTS:
Attachment A:CMR:453:10 Recommendation Regarding Adoption of Ordinance Authorizing
Closing of the Budget for the FY Ending June 30, 2010, Including Reappropriation Requests,
Closing Completed Cap (PDF)
Attachment B: Excerpt Minutes from the Finance Committee meeting of December 21, 2010
(PDF)
Prepared By:Trudy Eikenberry, Manager of Accounting
February 07, 2011 Page 2 of 2
(ID # 1274)
Department Head:Lalo Perez, Director
City Manager Approval: James Keene, City Manager
TO: HONOUABLE CITY COUNCIl,
ATTENTION: FINANCE COMMITTEE
FROM: CITY MANAGER
DATE: DECEMBER 21, 2010
REPORT TYPE: ACTION
DEP ARTMENT: ADMINISTUA TIVE
SERVICES
CMR: 453:10
SUBJECf: Recommendation Regarding Adoption of Ordinance Authorizing
Closing of the Budget for the Fiscal Year Ending Junc 30, 2010,
Including Reappropriation Requests, Closing Completed Capital
Improvement Projects, Authorizing Transfers to Reserves and
Approval of Comprehensive Annual Financial Report (CAFR)
RECOMMF~NDATION
Staff recommends that the Finance Committee review, provide input, and forward the attuched
ordinance (Attachment A) und associated exhibits to the City Council for its approval to: close
the Fiscal Year (FY) 20 10 Budget; authorize re-appropriation of FY 20 I 0 funds into the FY
20 II Budget (Exhibits A & B); close completed capital improvement projects (Exhibit C); and
transfer remaining balances to the appropriate reserves (Table I for General Fund and Exhibits E
& F for Enterprise Funds), In addition, staff recommends the Finance Committee review and
forward to the City Council for its approval the City'S Comprehensive Annual Financial Report
(CAFR) (Attachment B),
BACKGROUND
At the conclusion of each fiscal year (July-June) the City must close the financial system for the
year and produce year-end financial reports, The reports along with financial data are reviewed
by Maze & Associates, an audit firm hired by the City Auditor. Maze & Associates, produces a
written assessment of the C'ity's year-end fiscal condition and this, together with other financial
information, are what form the City's Comprehensive Annual Financial Report.
For FY 2010 staff gave the Finance Committee a high-level, preliminary FY 2010 year-end
update of fiscal condition on October 5, 2010 (Attachment C CMR: 369: 10). There are no major
differences between the preliminary report and this report.
CMR:45J:IO Puge I 0[11
The attachments to this report provide the necessary documents for closing the FY 2010 Budget
and reauthorizing FY 2010 funds for the current FY 2011. In addition, they provide detailed
information on the City's financial activities for FY 2010. This CMR highlights key liscal issues
affecting the City of Palo Alto. The Management Discussion and Analysis (MD&A) chapter of
the CAFR (Attachment B) also provides a discussion and analysis of the City's current fiscal
health and includes financial statements, and performance information that is compared to the
prior year, and capital asset and debt administration data.
DISCUSSION
Economy
Like other cities throughout the country, the "Great Recession" adversely affected the City's
General Fund resources. High wlemployment, the housing crisis, and low consumer spending
have hit City revenues hard. Although there are preliminary signs of stabilization in some
revenue categories such as transient occupancy taxes, the City continues to face declines or
uncertain revenue streams in its property, sales, and property transfer tax receipts. Challenges on
the expense side include: rising pension and medical costs; a signilicant retiree medical liability;
and a substantial infrastructure backlog. The City continues to be proactive as it struggles to
align revenues and expenses through service and program cuts, revenue enhancements, and
reducing expenditures through employee compensation and benefit changes. In 2010, the City's
General Fund reduced scrvices, deleted full-time positions, pared bcncf.its and drew modestly on
reserves to balance its budget. For FY 2011, the City c10seda $7.3 million GF budget gap. At
the end ofFY 2010, the City had $27.4 million or 19.7 percent orits budgeted expenditures and
operating transfers for FY 20 II, in its General Flmd Budget Stabilization Reserve. A detailed
discussion of the economy and FY 2010 revenues also is included in the CAFR MD&A page 3-
4. In addition, staff will present the 10 year Long Range Financial Forecast to the Finance
Committee in February 20 II.
Results by Fund
General Fund
The final FY 2010 result for the General Fund is a net loss of$1.8 million, which represents the
difference between revenues and expenditures for one liscal year. The difference between
revenues and expenditures, either a gain or loss changes the Budget Stabilization Reserve (BSR),
a component of the fund balance. FY 2010 revenues were $4 million less than prior year
primarily from reduced sales tax revenue. Other financial transactions impact a fund's balance
sheet, which report the fund's assets, liabilities and fund balance. The General Fund balance
consists of a number of reserves; the BSR, encumbrances, notes and loans, inventory, and
prepaid items, uruealized gain on investment, and reappropriations. The $1.8 million loss, results
in a draw on the BSR. In addition to the $1.8 million draw on the BSR, the BSR balance will
increase ot' decrease as the balances in the other reserves change. The net effect of the draw on
the BSR of $1.8 million and transfers in from other l'eserves 0£$4.4 million is an increase of$2.6
million resulting in an ending BSR balance of $27.4 million or 19.7 percent of budgeted
expenditures and operating transfers for FY 20 II. This percentage is within the Council
approved guidelines of 15 to 20 percent of budgeted expenditures.
CMR: 453:10 P.ge2 of II
At fiscal yearend, the fund balance for the General Fund totaled $41.5 million. This IS
comprised of reserves for:
Table 1
GENERAL FUND RESERVE SUMMARY ($OOOs)
FISCAL YEAR 2010
Receivable Reserve
IStr>r"~ Inventory Reserve
I Pn90aid Reserve
JnrElali;ted Investment Gain/Loss Reserve
IReserl,e For Equity Transfer Stablization
I~trrl"nt for Stores On"r~,tinr'~
CMR: 453:10
Balance
24,747
1,528
3,173
1,775
2,441
3,636
Net From
2,649
(98)
488
(285)
1,076
(3,636)
Balance
06/30/10
27,396
1,430
3,661
1,490
3,517
o
Page30fll
The following graph provides a snapshot of the General Fund BSR balance and percentage of
budgeted expenditures for the last ten years:
Graph 1 -------------------------------------------------
General Fund BSR & Percent of Budgeted
Expenditures FY 2001-2010
(in millions)
$30r-------------------------------------------------------------------------------,
$26
$20
$15
$10
$5
2001 2002 2003 2004 2005 2006
Fiscal Year
2007 2008 2009 2010 l $0
-------------------------------------------------------------
CMR: 453:10 Page40fll
The following graph provides a five-year comparison of major General Fuhd tax revenues,
Graph 2
Major General Fund Tax Revenues Fiscal Years 2006-2010
(in thousands)
$31,000 1---------".--".-------------
$26,000
$21,000
$16,000
$11,000 .
$6,000
$1,000
CMR: 453:10 Page 5 of 11
The following graph provides a five-year comparison of General Fund department expenditures,
3
$35,000 .
General Fund Department Expenditures Rscal Years 2006-2010
(in thousands)
$30,000 I~~····~ .. -~~·~·· .. ·~
$25,000
$13.243
$1.3.469
$13.405
I I
(I) FY 2009 postponed a budgeted $4.8 million transfer to the Teehnology Fund. This one-lime deferral was the General
Fund share of technology cosl Bllocations and it will be addl'csr;cd in tl four year funding plan for till departments except
Fire. FY 2010 Fire Department expenditures Include $1.2 million cost alloe.lions to the Technology Fund tbr FY 2009.
Details of the Genera{ Fund are discussed in the MD&A pp. 15-19.
The FY 2010 yearend Budget Amendment Ordinance (BAO) includes transfers of
unencumbered appropriation balances between General Fund Departments, These reallocations
(I) distribute non-departmental offsetting expense for the achieved $1.5 million in salary and
benefit savings that resulted from the SEW contract imposed in October 2009; (2) distribute $1.7
million in attrition savings that was adopted in the midyear budget (CMR 150:10); (3) and
reallocate remaining unencumbered appropriations to various departments that fell short after (I)
and (2) were complete. '{be table below depicts a before and after view of these General Fund
adjustments. Details of these reallocations can be found ill the Detailed Changes to the Adjusted
Budget (Attachment A, Exhibit A).
CMR; 453:10 Page 6 of t I
Table 2
General Fund Reallocation of Unencumbered Appropriations
(in thousands)
Budset
Remaining
BeforeAdj Chanse After Ad) Actual Budllet
City Attorney $3,383 ($127) $3,256 $3,216 $40
City Auditor 1,095 (20) 1,075 1,057 18
City Clerk 1,608 (65) 1,543 1,474 69
City Council 335 335 319 16
City Manager 2,654 (268) 2,386 2,327 59
Administrative Services 8,859 (807) 8,052 8,048 4
Community Services 22,216 (1,265) 20,951 20,846 105
Fire 26,621 1,576 28,197 28,180 17
Human Resources 2,906 (79) 2,827 2,778 49
Library 6,649 107 6,756 6,623 133
Planning 10,457 (336) 10,121 10,058 63
Police 30,219 (1,066) 29,153 29,090 63
Public Works 14,018 (523) 13,495 13,405 90
Non-Departmental 5,935 2,873 8,808 8,798 10
Transfers out 14,565 14,565 14,637 (72)
Total $151,520 $0 $151,520 $150,856 $664
Capital Projects Fund
For FY 2010, the Capital Projects Fund reported $25.9 million in expenditures and odler uses, an
increase of $1.9 million from prior year. This level of expenditures is consistent with the City's
effort to rehabilitate and maintain its existing infrastructure. The Capital Projects Fund balance
totaled $83.8 million, an increase of $47.8 million. This increase is primarily from receipt of
funds from General Obligation Bonds, issued in June 20 I O. The bond proceeds will finance costs
for constructing a new Mitchell Park Library and Community Center, as well as improvements to
the Main Library and the Downtown Library. The City is proud to report that it received an
AAA credit rating from Standard and Poor's and Moody's. The true interest cost on these bonds
was 4.2 percent, which is 1.22 percent lower than originally projected ip 2008 and is an
indication of how well the bonds were received in the market. As of June 30, 20 I 0, the
Infrastructure Reserve (lR) balance was $8.6 million, an increase of $1.6 million from prior year.
The Encumbrance Reserve is $5.9 million, $5.4 million Icss than the prior year. Reappropriation
Reserve balance decreased by $2.5 million from prior year Ibr a total of $15.2 million. A new
reserve, Library Bond Project, has a balance of $53.5 million that represents the unused portion
of bond proceeds. Bond proceeds are maintained by a fiscal agent and the Library Oversight
Committee makes quarterly presentations to the City Council. A number of completed and
closed projects with remaining balances at the end of FY 2010 totaling $108 thousand have been
returned to the Infrastructure Reserve. This provides an additional source of revenues to the IR.
CMR: 453:10 Page70fll
Overall, the following summarizes changes to the City's General and Capital Fund reserves:
• The General Fund BSR is 19.7 percent of budgeted expenditurcs and operating transfers
for FY 20 II. This percentage is within the Council approved guidelines of 15 to 20
percent and shows a closing balance of $27.4 million, an increase of $2.6 million from
the prior year.
• Budget transactions included in the attached ordinance decreased General Fund reserves
by $7 thousand.
• The Infrastructure Reserve has a final balance of $8.6 million at the end of FY 20 I O.
Since there is an infrastructure backlog and need totaling over $500 million, additional steps
will be needed to address infrastructure needs in the near future.
Enterprise Funds:
The Rate Stabilization Reserves (RSR) for the combined Enterprise Funds increased by a net of
$28.7 million for an ending balance of $87.9 million. Major changes include an $11.6 million
increase in the Water Fund, $6.6 million increase in the Electric Fund, and $5.4 million increase
in the Gus Fund. Exhibit F provides the balance changes for all reserve categories for the
Enterprise Funds. The City faces ongoing fiscal challenges in the Refuse Fund and they are
discussed further in the repoli. At the end of FY 20 I 0, a number of Enterprise Fund CIP proj ects
were completed and closed (ExhibiLC). The remaining balanceLof these projects reverted to
their respective reserves.
Waler Fund
The Water Fund ended the year with a net income of $7 million, an increase of $2.1 million from
the prior year. At fiscal yearend, unrestricted net assets for the Water Fund totaled $28.7 million,
which include $17.0 miJlion for RSR. The Water Fund also has restricted cash and investments
of $27.9 million for the Emergency Water Supply project, funded by a bond issuance.
Electric Fund
For FY 2010 the Electric Fund had a net income of $9.4 million compared to a net loss of $7.2
million in the prior year. The increase is mainly due to lower utility purchase cost of $11.8
million. The RSR balance is $54.3 million an increase of$6.6 million from the prior year.
Gas Fund
The Gas Fund ended the year with a net income of $7.9 million, a decrease of $2.6 million from
prior year. The decrease is primarily due to aiD percent rate decrease effective July I, 2009 and
an increase in other linancing activities of $2.2 million. Tbe RSR has an ending balance of$18.5
million, an increase of $5.4 million from the prior year.
Fiber Optics Fund
'The Fiber Optics Fund had a net income of $2.1 million, a decrease of $300 thousand from the
prior year. 'The ending RS R is $8.3 million an increase of $1.9 miUion from prior year.
CMR: 453:10 Page8o!'l)
Wastewater Collection Fund
The Wastewater Collection Fund had a net income of $4.7 million compared to a net loss of $63
thousand in the prior year. 'Ille RSR ended the year with a balance of $6,8 million, compared to
$6 million for the prior year.
Wastewater Treatment Fund
Wastewater Treatment Fund ended the year with a net loss of $1.2 million compared to a net loss
of $3,2 million in FY 2009. The net loss is a draw on the RSR, resulting in a negative balance of
$12.4 million, compared to a negative $15,6 million for the prior year. A t fiscal yearend,
unrestricted net assets for the Wastewater Treatment Fund totaled $11.8 million. This was
comprised of reserves for:
Table 3
Rate Stabilization Reserve ($12.4) million
Reappropriations -Disinfection Facility Improvement Program $14,6 million
Reappropriations.-other projects $2.6 million
Emergency plant replacement $2.1 million
Commitments $4.9 million
The negative RSR balance is due to required accounting reserves of $14.6 million for the $20.3
million Disinfection Facility Improvement Program. As the Disinfection Facility Improvement
Program progresses, the City will be reimbursed with grant and partner revenue and the RSR will
move toward a positive position.
Refuse Fund
For FY 20 I 0 the Refuse Fund had a net loss of $2.7 million, resulting in a draw on the RSR. The
prior year had a net loss of $5.4 million. FY 2010 saw a decrease in disposal fee income of $1.1
million, and increased refuse collection costs. The prior year included $3.1 million of additional
costs due to an updated forecasted clo~ure costs lor the landfill. The ending balance of the RSR
as of June 30, 2010 is a negative $4.9 million compared to the prior year negative balance of
$2.1 million, 111e June 30, 2010 cash balance is $8 million, which satisties the State requirement
of $6.7 million for post-closure liabilities. Council and stalf are working together to implement
changes to the operations and rate structure to bring the Refuse Fund to a positive reserve
position and to maintain the required cash position to satisfy the State requirement and ongoing
operations.
Storm Drainage Fund
The Storm Drainage Fund ended the year with a net income of $2.5 million, a decrease of $900
thousand from the prior year. The RSR had an ending balance of a positive $286 thousand
compared to a negative $1.1 million in the prior year.
CMR: 453;10 rage 9 01' 1 J
General Benefits and Insurance Internal Service Funds
As requested by the Finance Committee in Dec. 2009, the FY 2010 CAFR presents the General
Benefits Fund, Workers' Compensation Insurance Program, and General Liabilities Insurance
Program as separate funds. Prior to FY 20 I 0, these funds were reported as the General Benefits
and Insurance Fund.
Retiree Medical Fund and Trust Fund
For FY 20 I 0 the City's annual required contribution (ARC) for retiree medical costs is $9.8
million. During FY 2010, the City made direct contributions to CalPERS of $5.5 million in
current year retiree premiums, which covered 795 retirees. The City also contributed $1.7 million
during FY 2010 toward the California Employers' Retirees Benefit Trust (CERBT), and $1.8
million in early FY 2011 which was accrued for in FY 2010. As ofJune 30, 2010 the balance of
the trust, including the contribution made in August 2010 since it relates to the FY 2010 ARC, is
$34 million. The balance as of Sept. 30, 2010 reflects improvements in investment earnings.
Total contributions from inception of the trust are $38.1 million, investments loss is $188
thousand and administrative cost is $65 thousand for an ending balance as of Sept. 30, 2010 of
$37.8 million. The retiree medical liability per the January I, 2009 actuarial valuation was
$129.7 million, less the value of the trust, $37.8 million, and direct contributions to CalPERS of
$5.5 million leaves a net liability of $86.4 million. The next actuarial valuation of January I,
20 II will be presented to Council in early summer 20 II.
RESOURCE IMP ACT
Adoption of the attached budget-closing ordinance (Attachment A) allows for the re-
appropriation and carryover of funding from the FY 20 I 0 budget so that specific operating
programs and capital projects can be completed in the current fiscal year (Exhibit B). In addition,
by closing completed capital improvement projects, balances (Exhibit C) are returned to the
original funding source for future appropriation. Exhibits D and E summarize financial results
for the General Fund and Enterprise Funds, respectively, by providing an analysis of the
performance of these funds in comparison to the budget as adopted and adjusted by Council.
Exhibit E reflects the changes to and status of major reserves.
POLICY IMPLICATIONS
This recommendation is consistent with existing City policies.
ENVIRONMENTAL REVIEW
The action recommended is not a project for the purposes of the California Environmental
Quality Act.
PREPARED BY: J~ <7~ TRUD EIKENBERRY
Accounting Manager, Administrative Services
CMR: 453:10 Page 100fll
DEPARTMENT HEAD APPROVAL:
LALOP
Director, Administrative Services
CITY MANAGER APPROVAL:
ATIACHMENTS
Attachment A: Budget Closing Ordinance
Exhibit A -Detailed Changes to the Adjusted Budget
Exhibit B -Fiscal Year 2009 Re-Appropriation Requests
Exhibit C -Capital Improvement Projects Completed and Closed in FY 2010
Exhibit D -.. General Fund Summary
Exhibit E -Enterprise Summaries
Exhibit F -Enterprise Reserve Summary
Attachmcnt B: CAFR
Attachment C: CMR: 369: I 0 Fiscal Year 2010 Financial Update as of June 30, 2010
CMR: 453:10 Pogellofll
ATTACHMENT A
ORDINANCE NO. xxxx
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AUTHORIZING CLOSING OF THE BUDGET FOR THE
FISCAL YEAR ENDING JUNE 30, 2010
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 and as set
forth in Section 2.28.070 of the Palo Alto Municipal Code,
the Council on June 15, 2009 did adopt a budget for fiscal
year 2010; and
B. Fiscal year 2010 has ended and the financial
results, although subject to post-audit adjustment, are now
available and are herewith reported in summarized financial
Exhibits "A", "B" I "CII I "DII, "Elf, \\F" I and "GO prepared by
the Director, Administrative Services, which are .attached
hereto, and by reference made a part hereof.
SECTION 2. Pursuant to Section 2.28.080 of the Palo
Alto Municipal Code, the City Manager during fiscal year
2010 did amend the budgetarY accounts of the City of palo
Alto to reflect:
A. Additional appropriations authorized by ordinance
of the City Council.
B. Amendments to employee compensation plans adopted
by the City council.
C. Transfers of appropriations from the contingent
account as authorized by the City Manager.
D. Redistribution of appropriations between
divisions, cost centers, and obj ects within various
departments as authorized by the City Manager.
E. Fiscal Year 2010 appropriations which on July 1,
2009 were encumbered by properly executed, but uncompleted,
purchase orders or contracts.
Page lof 5
ATTACHMENT A
SECTION 3. The Council hereby approves adjustments
to the fiscal year 2010 budget for Fund Balancing Entries
as shown on attached Exhibit" "Au.
SECTION 4. The Council hereby re-appropriates
fiscal year 2010 appropriations in certain departments and
categories, as shown on the at tached Exhibit "B", which
were not encumbered by purchase order or contract, at year
end into the fiscal year 2011 budget.
!
SECTION 5. The fiscal year 2010 encumbered
balances for the departments and categories shown on
Exhibit "D" shall be carried forward and re-appropriated to
those same departments and categories in the fiscal year
2011 budget.
SECTION 6.
directed:
The City Manager is authorized and
A. To close the fiscal year 2010 budget accounts in
all funds and departments and, as required by the Charter
of the City of Palo Alto, to make such interdepartmental
transfers in the ,2010 budget as adopted or amended by
ordinance of the Council; and
B. To close various completed Capital Improvement
Projects (CIP) as shown in "Exhibit "CN and move all
completed CIP to their respective reserve funds indicated
in Exhibit "Gil; and
C. To establish reserves as shown, in Exhibits "E",
"F" and "G" for all Funds as necessary to provide for:
(1) A reserve for encumbrances and re-
appropriations in the various funds, the
purpose of which is to carry forward into
the fiscal year 2011 bUdget and continue, in
effect, the unexpended balance of
appropriations for fiscal year 2010
departmental expenditures as shown in
Exhibits "E" and "F"; and
(2 ) Reserves for Advances to
Stores Inventory, and other
accordance with ordinance
guidelines as shown in Exhibit
Page 2 of 5
Other Funds,
reserves in
and policy
"Etlr and
--_ ....... _-
ATTACHMENT A
(3) A reserve for general contingencies of such
amount that the City Council has approved;
and
(4 ) Reserves for utilities plant
other rate stabilization, and
accordance with Charter
guidelines as shown Exhibit "G U •
replacement,
reserves in
and policy
D. To fund the Budget Stabilization Reserve in
accordance with the General Fund Reserves Policy adopted by
the City Council.
SECTION 7. The Public Services Donation Fund is
hereby decreased by Twenty Two Thousand Three Hundred Seven
Dollars ($22,307) as described in Exhibit "AU. This
transaction will change the Public Services Donation Fund
Balance to $784,320.
SECTION 8. The Child Care Fund is hereby decreased by
Seven Thousand Two Hundred Eighty One Dollars ($7,281) as
described in Exhibit "Au. This transaction will change the
Child Care Fund Balance to $328,987.
SECTION 9. The Street Improvement Fund is hereby
decreased by Five Hundred Sixty Four Thousand Six Hundred
Twenty Eight Dollars ($564,628) as described in Exhibit
"Au. This transaction will change the Street Improvement
Fund Balance to $530,000.
SECTION 10. The Uni versi ty Avenue Parking Permit
Fund is hereby decreased by One Hundred Six Thousand Six
Hundred Forty Eight Dollars ($106,648) as described in
Exhibit "AU. This transaction will change the University
Avenue Parking Permit Fund Balance to $608,202.
SECTION 11. The California Avenue Parking Permit
Fund is hereby decreased by Ten Thousand Three Hundred
Seventy Three Dollars ($10,373) as described in Exhibit
"AU. This transaction will change the California Avenue
parking Permit Fund to $336,344.
SECTION 12. The College Terrace Parking Permit Fund
is hereby decreased by Three Thousand Three Hundred Sixty
Seven Dollars ($3,367) as described in Exhibit "Au. This
transaction will change the College Terrace Parking Permit
Page 3 of 5
ATTACHMENT A
Fund to $51,694.
SECTION 13. The Local Law Enforcement Block Grant
Fund is hereby decreased by Fifty Two Thousand Seven
Hundred Twenty Eight Dollars ($52,728) as described in
Exhibit "Au. This transaction will change the Local Law
Enforcement Block Grant Fund Balance to $180,213.
SECTION 14. The Recovery Act JAG Fund is hereby
decreased by Eight Thousand Eight Hundred Twenty Dollars
($8,820) as described in Exhibit "Au. This transaction will
change the Recovery Act JAG Fund Balance to $15,650.
SECTION 15. The Capital project Fund is hereby
increased by the sum of Nine Hundred Ninety Two Thousand
Five Hundred Forty Two Dollars ($,992,542) as described in
Exhibit "A". This transaction will increase the
Infrastructure Reserve Balance to $8,648,354.
SECTION 16. The Electric Distribution Rate
Stabilization Reserve is hereby increased by the sum of One
Million Four Hundred Seventy Eight Thousand Eleven Dollars
($1,478,011) as described in Exhibit "A". This transaction
will change the Electric Distribution Rate Stabilization
Reserve to $9,484,000.
SECTION 17. The Gas Distribution Rate Stabilization
Reserve is hereby increased by the sum of Forty Four
Thousand Six Hundred Twenty Dollars ($44,620) as described
in Exhibit "AU. This transaction will change the Gas
Distribution Rate Stabilization Reserve to $6,209,000.
SECTION 18. The Water Rate Stabilization Reserve is
hereby increased by the sum of Twenty Four Thousand Seven
Hundred Six Dollars ($24,706) as described in Exhibit "Au.
This transaction will change the Water Rate Stabilization
Reserve to $17,036,000.
SECTION 19. The Refuse Rate Stabilization Reserve is
hereby increased by the sum of One Hundred Seventy Eight
Thousand Seven Hundred Seventy Dollars ($178,770) as
described in Exhibit "Au. This transaction will change the
Refuse Rate Stabilization Reserve to negative $4,935,000.
SECTION 20. Upon completion of the independent audit,
detailed financial statements reflecting the changes made
by the Sections 7 through 18 of this ordinance shall be
Page 4 of 5
ATTACHMENT A
published as part of the annual financial report of the
City as required by Article III, Section 16, of the Charter
of the city of Palo Alto and in accordance with generally
accepted accounting principles.
SECTION 21. 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.
SECT~gl:'l 22. The Counc il of the Ci ty of Palo Alto
hereby finds that the enactment of this ordinance is not a
project under the California Environmental Quality Act and,
therefore, no environmental impact assessment is necessary.
SECTION 23. As provided in
Palo Alto Municipal Code, this
effective upon adoption.
Section 2.04.330 of the
ordinance shall become
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
City Clerk
APPROVED AS TO FORM;
City Attorney
Mayor
APPROVED;
City Manager
Director of Administrative
Services
Page 5 of 5
GENERAL FUND
CIIy _mey
city Auditor'
Use Cnl;!ngas
CIIyCler'
Use Changes
Citty Manager
Use Changes
Adrnlnlatratlve Services
Uille Changes
Community Servicea
U.e Changes
Fire
Use CIlangas
Human SsrvIeu
Llbr"'l'
I!KHIBIT A
CITY OF PALO At TO
FISCAL YEAR ENDING JUNE 30, 1010 I!UDGET SUMMARY
DETAil CHANGES TO TfiE ADJUSTED BUDGET
Commitment
llom
F¥ 2010
VeBrEndAd
NOll SalalY (55.126) R~allocarlolllo Firs
SoIaJ)< __ -;:(~7",I,~a~60~) MIoy .. r Vacancy S ... ng.
!121,(l14)
Non SBlary (1S.ZiO-) Realfocetion 10 Fire:
Solary (15,3311 Imp""od SEIU Terms
S.IOry __ -,(!;:3~O,,,,OI,,,i~) Midy •• r V.cancy S."ng.
(&5,1661
Non SalsfY (87 ,625) R~alloca1jon to flrl;)
Salary (1 SE1U Term.
sajary::::::::::::j~~~Mj,jyaar "ac,""y Savings
Non Salary (609,529) Reallocation \0 Fire/Library
Salary (90,700) Impo.od SEIU Term.
Salary __ -,:1'(9,,8;:;,S;;I:;:3f.) MldyearVscancy Savings
(&06,742)
Non Solary
Sa'ary
Sa'iJry
(IS8,38S) Re.lI.callon to Fir.
(376,621» lmpo.odSEIU Term,
... J!2.o,?~l.. Mldy •• r Vacancy S"'ngs
(1,265,1.9.6).
Salary 64,266 ReaUocelion from PoI1c6
Oeserl tion
Salary 1,53-1,514 Raa\\ocatlon from varlooe: departmenls
SalaJ)< __ -;-:1!:;1;;9'C;34",O:c1 Imposed SE'U Term.
1,1i18,46il
SswI)' 318,571 H€HiIloonllo!1 from Polica B!1d ASO
S.'.ry (lee,SIS) lmp"""d SEIU Term_
Salary __ ----:("'45?,~26;;;3;CJ Midyolll V_nov SaYing_
1D5r393
Pltlflfllfl9 and Community environment
Salary
NonSa!ary
5.1"",
192,357 Remlocalionlrom Poli::e
(20,000) Reallocationlo FJre.
(229,150) lmpoeod SEIU T arm.
5.1''' __ ~ fI.'fidygar Vacanc)' Savirtgs
F'agc1of4 12/14/2010
Fund
Police
Use Changes
Public Works
Use Changes
Non Departmental
Use Changes
Net Changes To (From) Reeervee
Fund Balancing Entries
Public Services Donations Fund
Use Changes
Net Changes To (From) Reserves
Fund Balancing Entries
Child Care Fund
I
Use Changes
Net Changes To (From) Reserves
Fund Balancing Entries
CAPITAL PROJECT FUND
Source Changes
Use Changes
Net Changes To (From) Reserves
EXHIBIT A
CITY OF PALO ALTO
FISCAL YEAR ENDING JUNE 30, 2010 BUDGET SUMMARY
DETAIL CHANGES TO THE ADJUSTED BUDGET
Commitment
Item
Salary
Non Salary
Salary
Non Salary
Salary
Salary
Salary
Non
Non
Non
Non
Non
Non
Salary
Salary
Salary
Salary
Salary
Salary
Salary
Salery
Salary
Oeseri tlon
(587,000) Reallocation to Fire, Library, Planning and Public Works
(155.680) Reallocation to Fire
(322,872) Imposed SEIU Terms
(1,065,552)
(143,970) Reallocation to Fire
64,286 Reallocation from Police
(253.533) Imposed SEIU Terms
(189,703) Midyear Vacancy Savings
(522,920)
(325,000) Reallocalion to Fire end Library
1,494,096 Imposed SEIU Terms
1,704,000 Midyear Vecancy Savings
2,673,096
____ --'-_ Changes in Budgel Stebilizalion Reserve
1,615 Transfer to fund training
3,966 Trensfer 10 fund olher supplies and materials
4,340 Transfer to fund training and safety
4,550 Transfer to fund recrealion and housekeeping supplies
1,189 Transfer 10 fund printing end mailing services
___ """"",6""6,,4,,,7_Transfer 10 fund olher conlract services
22,307
(22,307)
Reserve Belance ___ ,,(2,,2"',3,,0"-7L) Decrease changes in Olher Fund Balence
Non Salary
Non Salary
Non Salary
Non Salary
Non Salary
3,954 Transfer 10 fund programs and projects
1,506 Transfer 10 fund advertising and publishing
388 Transfer to fund other contract services
51 Transfer 10 fund travels and meelings
___ ~I,",3,,6C'2_Transfer to fund printing and mailing services
7,281
(7,261)
Reserve Belance ____ ("7-",2,,6,,IL) Decrease changes in Other Fund Balance
Operating Trensfer 564,628 Transfer from Sireel Imrpovement Fund for street maintenance
564,626
Non Salary (107,719) To close various completed projects and return balance to reserve
To return excess budget for salaries and benefits to reserve Salary __ -!'
992,542
Page 2 of 4 12114/2010
Fund
Fund Bamnelng Entrlee
SPECIAL REVENUE FUNDS
sj.",,( (mpi.""m.r\t~(lnd .
Use Changes
Net Char1gea: To {From) Reserves
fund Balancing cl1trieS
N91 Changes To (From) Re-serv9il
Fund Balancing Enn/as
Callfaml. J\V.n~. P •• ~lng Permit Fund: .
Use Changes
Net Changes To (From) ~eserveB
Fund Balancing Entries
CQlleQ'tt it.rrace Parking Pell'nlt fund
Use Changes
Net Changes To {Fr~m) Reserves
Fund Balancing £ntrio5
Us-eChanges
Net Changes To (From) R.eserves
Fund Balancing Entries
Use Chang08
Fund BalancIng Entrlos
ENTERPRISE FUNDS
ElaC\rlcFund' .
U80 changes
ElGIlBITA
CITY OF PALO ALTO
FISCAL YEAR ENDING JUNE 30, 2010 BUDGET SUMMARY
DETAIL CHANGES TO THE ADJUSTED BUDGET
Commitment
Ilttm
FY ZOIO
YearEnd A
Reserve Salance---"m=,54=2:-1nueaee In lntra&tructure Reserve
Operating TfBl1Ster ___ ~ TraO$fer tQ capital Proje¢t FuM
(564,626)
R eeerve BRiante (564,628) DecreMe cttatl$jt.re in Other Fund Ba's11oo
Operating Transfer ___ .;:10o;6?,.6"4,,,B,-Trsns~r to RerUlile Fund
106,843
110M'S)
Opora!lng Trans-fer ____ 1~G"',327~3~Transfer to Raruse Fund
W,373
Reeerve Balance ___ .I.(1~0,,!3:.!7:.3L) OacrlJase Changes in Other Fund Balance
Non fTlembenlhlp
___ -"=::..<.D"""'''. Changes In Daher Fund 8a1fP,1OS
Non Salmy 40,500 Transfer to fund program and computet expeMe
Non ___ ~~;-TranafS( 10 nCf'.cBpltallao!s and e:qulpment
Reserve 6alance ___ .I!{5~2;C!7.!26!!)LOecteBae chlinges in Olher Fund Balance
Non Salary ___ -':8'>;,9~20~ . Transfer \0 ioatruction and training
8,8i)
Resorve Balance ____ (8~,B~2!!O)LDecreaae changes 1" Olhef Fuf'd 8alance
Nen SSIw)'
1211412010
Nat CltangO's To (From) Reflerwtl
fund Bajancing Entftes
UsaChangea
Nat Changes To (From) ReaelV8fi
Fund Balancing Entrios
Ole Changee
Net ChMgee To (From) Rs80'lVU
Fund Balancing Entrl06
RofUlo Fund
Source Changos
Use Changetl
Nel CbangeB To (From) Reserve-a
Fund Balanclng Entrle.
EXHIl3IT A
CITY OF PALO ALTO
FISCAL YeAR ENDING JUNE 30, 2010 BUDGET ~UMMARY
DETAIL CHANGES TO THE ADJUSTED BUDGET
Commltment
Illl .. Deser! tion
onmpleled projects snd rSlwn balanc9 10 fa95IVa
Ros£<rva Belance ___ c:44~,6"2,,,o_lncreasa In Dis!nbullon RSR~ Gas
No. dose com¢eled pro~Clli and return balance to resel\la
Reserve Balance ___ -'2,,4"',7IJ""'6_1ncraaa6 Rate Stabibzalloo Re&9f'f1il
Operating Trensfer 106,646' Tranerer from University Avenue Parking Pamllt Fund
Operating __ -::+;~:;...Transr6r from California Avenue Par~lng Pe~mll Fund
(61, 749) To close compleled projects and return balance to reserve
(61,749)
Page 4 of4 12/14i201Q
EXHIBITB
FY 2010 REAPPROPRIATION no.",,,,,,,
$ COMMENTS/REASONS
AMOUNT INTENDED USE FOR NOT COMPLETING IN FY 2010 STATUS
City Manager's Office
$55,000. High Speed Rail Project 'fhis reappropriation i. being requested fur Recommended $55,000. There is
staffing coSls relaled to the IJigh Speed Rail sufticlenl balance in the Fiscal Year
Project. Per CMR 261: 10, Council approved • 20 I 0 budget that can be
the appropriation oUSS,OOO from the FY 2010 reappropriated.
Council wn!ingen<;y In fund these costil.
Planning Department
$40,000 . High Speed Rail This reappropnation is being requested for Recommended $40,000, There is
I'rojec! contract services related In the High Speed Rail .umclent balance in the Fiscal Year
Project which is a multi·year project that does 2010 budget that can be
not have an identified source oHunding, In reappropriated,
FY 2010, this project Was fundoo by the
Council contingency and was also absorbed by
the Planning Department budget. There is
remaining budget from the Destination Palo
Alto contract in FY 20 I O. Part of this
remaining amount is being prupoRed 10 be
• reaoorouriated to the HiJlll Speed Rail Proiect
$4(},000 Development Cenlnr This reappropriation is being requested for Recommended $40,000. There is
Restructuring Project eOlllract services related to the restructuring at suftident balonce in the Fiscal Year
tbe Development Center, Although it was 20 I 0 budget that can be
mandated by the City Council, this project does reappropriated,
nol have a designated budge!. There is
remaining budget from the Denination Palo
Alto contract in FY 20 10. Pa,t of this
remaining amount is being proposed to be
reoppropriated to help complete this project
Page lof4 12114.'2010
$ COMMENTS/REASONS
AMOUNT INTENDED USE FOR NOT COMPLETING IN FY 2010 STATUS
Administf<ltive Servicel'
$50,000 Special Studies This reappropriation is being requested for the Recommended $50,000. There is
funding of special studies that arise related to sufficient balance in the FiscolNear
the Stanford Expansion, Palo Alto Airport, 2010 budgephat can be
Cable Franchising, or other projects as reappropriated.
necessary, The budget for contract services in
FY 20 II is entirely comprised offumling [or
specific identified contracts, leaving no room
for unanticipated contracts. This
reappropriation allows for funding f01'
assistance on special projects related to the
City's finances,
Utilities Department-Efectric Fllnd
$2,000,000 Electric Efficiency This reappropriation is being requested to fund Recommended $2,000,000. There is
Financing Program an electric efficiency financing progrum for sufficient balance in the Piscal Year
nonresidential customers through a third party 20 I 0 budget that can be
contractor. On December 7, 2009, Council reappropriated,
approved using up to $2,000,000 from tile
Calaveras Reserve to develop this four-year
pilot program (CMR 430:09), It was Council's
intent that these funds be used for a four-year
program and rolled over throughout the length
of the program. The contract is expected to be
signed by June 30, 20 I 0, The program will
begin in Fall 20 I O.
$459,700 Cuslomer rebates for This reappropriation is being requested to fund Recommended $459,700. There is
energy efficiency customer rebates for completion of energy sufficient balance in the Fiscal Year
projects effieiency projects, A very I.rge number of 20 I 0 budget that cnn be
energy efficiency projects are either committed reappropriated,
or projected to be completed. while only a
small percentage of projects have been
completed 10 date, Actual payment of rebates
will occur as the projects are completed in FY
201 L These energy efficiency projects support
Council's environmental .ustainability
objectives,
Page 2 of4 12/1412010
$ COMMENTS/REASONS
AMOUNT INTENDED USE FOR NOT COMPLETING IN FY 201 0 STATUS
$300,000 Customer rebates for This reappropriation is being requcs\1:d (0 fund ReeoD\mendad $3110,000. TI.ere is
solar electric customer rebates for the installation of sufficient balance in tn\) Fiscal Year
(photovoltaic) systems pholClvaltaic systems. S6 I requires California 2010 budget (Il.t can be
electric utilities to offer inoon(ives for solar reappropriated.
electric systems installed on customer facilities
after January I, 2007. Because there is
uncertainty in knowing when a customer will
complete the solar installation, it is difficult to
match the rebate payments to each year's
program budget. The reason for this
, reappropriation request is to carry forward
fllnds from FY 2010 to FY 20 II to help cover
the large arnount of pending rebates. Each year
$1,300,000 is budgeted for this program.
Between January 1.2007 andMa)' 19,2010,
over $3,600,000 in rebates has been paid. Tbe
program has reserved an additional $2,700,000
I
for pending !l)lplicntions.
Utilities Dl!!partment-Water Flind
$54,000 Customer rebate This reappropriation is being requested for (he I Recommended $54,000. There is
program for cu~tomer rebate program for water/energy sufficient balance in the Fiscal Year
waterlenerb'Y reduction reduction projects. The Santa Clara Valley 20 I 0 budget that can be
projects Water District (SCVWD) currently otTers reappropriated.
rebates for innovative water/energy reduction
projects through the existing Water Efficiency
Technology program. The goal of the prograIll
is to encourage individuals 1.0 implement
innovative projects that will result in cos(,-
effective waterlenergy savings, Thi,
reapprorpriation is being requested to expand
the program In Palo Alto in coordination witb
SCYWD.
;
Public Works Department-Storm DraifJllge Fund
$629,718 Storm Drain Innovative This rellppropriaUon is being requested fIJI' Recommended $629,118, There is
Improvements innovative stonm drain improvements. These sufficient balance in the Fiscal Year
funds must be reappropriated because they 20 I 0 budget that can ba
have been specifically eanmarked for reappropriated.
Innovative .tonm drain Improvements per the
2005 Storm Drainage ballot measure approved
by the Palo A Ito property owners, These fu1Id.
have been budgeted for a storrnwater rebate
program that offers incentives to residents nnd
buslncsses to reduce stotmwater runoff.
However, the rebate prograrn has not genemted
sufficient demand In .pend the funds, Staff
plalls to utilize the unused funds ill FY 2011 for
an innovative storm drnin improvement project
in the Southgate neighborhood,
,
Page 3 of4 12I14/201Q
$ COMMENTS/REASONS
AMOUNT INTENDED USE FOR NOT COMPLETING IN FY 2010 STATUS
Admilll.ftrntive Services Department-TechllofrllIJl Fund
$94,000 Update of the City's This reappropriation Is being requested for Recommended $94,000. There is
[n[oml.tion contraci services related 10 the update Qf the sufficient bolanee in the Fiscal Yeur
Technology Strntogic CilY'slnformation Technology Strategic Plan. 2010 budget thai eM be
Plan This reappropriation is needed ro supplement reappropriated.
the cost ofthe full project, which is to be I
. comoleted in FY 20 II .
$100,000 Infrastructure This reappropriation is being requested for Recommended $100,000. There is
Replacement Infrastructure server equipment purchases and sufficient balance in the Fiscal Year
computer purchases. Not all of the 20 I 0 budget that can be
infrastruclllrc server equipment could be reappropriated.
purchased in FY 2010. The FY 2011 budget is
nut adequate to cover the cost of all the
necessary servers to adequllIely serve the
organization. In FY 2011, purchases will be
usell for planned system upgrades of existing
server •. We plan on purchasing and
implementing HP Service Guard which will
allow us to enable our enterprise servers with
recovery capability.
Page 4 of4 12/14/2010
NUMBER
General Fund
FD-09001
PD-03003
PD-04010
PD-O·IOt1
Po-050t 0
PD-93012
PE-05002
PE-95030
PL-02005
PL-07000
PL-07003
EI§Qtrlc Fund
EL-05001
EL-03001'
Ec-03005'
EL-03013'
EL-05003'
Gas Fund
GS-07000'
Water Fund
WS-Ol0l0'
WS-Ol014'
Refuse Fund
RF-OSOO2'
EXHIBITC
City of Palo Alto
CAPITAL IMPROVEMENT PROGRAM PROJECTS
Compleled and Oosodln FY 2()1()
TITLE
Fire Apparatus Equipment Replacement
Additional Fire Frequency
Fire Portable Radio Replacement
Civic Center Parking Securily Upgrade
Police Vehicle Mounted Video Recording
Fjre Communications Computer System
Main Library Reconfiguration
Downtown Garage Parking Structure
EI Camino 1 Venlura Traffic Signel
Downtown North Traffic Circle Hardscape
Cal Train Station Connectlvily Improvemenls
Colorado Sw Stalion 115Kv
UndergrDUnd Dialrict 39
Underground Districl41
Utilities Estimating System
Relocation -Alma Subs!alion
Elwell Court Tenant Improvements
Reservoir Booster Slation
Reservoir Pump Slation
Byxbee Park Gas System Upgrade
" Projects are closed. No expenditures were incurred in the current fiscal year.
Page 1 011
724
418
3,931
1,644
11,001
60,000
30,000
Total 107,718
1,143,983
54,987
261,880
15,094
2,067
Total $1,47B,011
44,620
Total $44,820
24,644
62
Total $24,706
61,749
Total $61,749
12/1412010
Taxe.s
Oceupallcy Tax
Fines & Penalties
lor Services
onln .... eslmcnt
Other Ageneies
to Other FundS'
[IY 2010
Adoptod
Budget
19,650
25,752
7,000
11,250
5,633
20,238
5,056
1,900
13,655
92
10,643
1,605
FY 2010
Adjusted
Budget
17,313
25,778
6,639
11,417
.1,584
18,932
4,596
1,662
13,786
323
10,546
1,739
EXHIBITD
FY 2010
CAI<[( U •• i.
RevlJo:.p
17,991
25,982
6,858
11,2%
5,754
19,732
4,577
2,682
14,397
332
2,439
FY20W
Allocated
Charges.
11,02B
117
[lY 2010
Ellcum+
Jteupprop
ni.
lila .1.
01,
.i,
nl,
p//l
ni,
.1,
.i,
ni.
nia
nla
5.9'20 nIl'!
2,569
999
1,512
296
2,395
Services 6,761
Sen"icGs 21,B76
2.j, 166
2,B37
6,3B.1
9,858
29,998
13,484
Site (D) 6,925
CAFR ReconciliatIon:
3,256 2,50B 75
1,075 927 31
1,543 1,387 67
335 2B7 I
2,386 2,196 86
8,052 7,50B 364
20,951 16,454 4,052
28,197 24,292 3,441
2,B27 2,540 167
6,756 5,902 4B6
10,/21 B,557 793
29,153 26,620 2,239
13,495 9,793 2,740
8,808 8,742
CUI'rent year cneumbrancc/rcappropritl.1ions
Prior Year ellcumbranceslrcuppropriolions
CAFR Net Income
(A) .$3.636 Equity Tmnsrer Su~b-iliza[ioll Reserve tmnsfer 10 GAS and Eleetric FUlIds.
(0) $5.9M Adjusted Budget includes. $3.9M sfliluy and bcncfi( savings co be neg.oliflted and achieved
Page 1 of 1
633
99
20
31
45
176
340
447
71
235
70B
231
Bn
55
FY2010 FY2010
Budgetary Variance
Rn/K"p Adj Dudger
17,991
25,982
6,858
11,296
5,754
19,732
4,577
2,682
14,397
332
11,028
2,556
3,216
1,057
1,474
319
2,327
8,048
20,846
28,IBO
2,778
6,623
1O,05B
29,090
13,405
8,798
3,965
(5,920)
(1,767)
678
204
219
(121
170
800
1,020
611
9
4B2
817
41
19
70
17
60
5
105
17
49
133
63
62
90
10
12/14/2010
EXHIBITS
WATER fUNO ($OOQ)
FY2COl1 FY 2010 py 2010 fVarfancu
ActuallE"e Ad]ua11l:d ActualJEnc Favorable:
""" Reapprop a •• get RO·PProp (Unfavor,l
REVENUE
Water sales 26,686 28,016 25,841 (3,075)
Other revenues 2,788 2,389 3,113 744
Bond Proceeds 35,000 34,958 (42)
Reappropriations I Ene 11,673 20,113 20,113 "
,
EXPENSES
Purchases 8,413 10,354 9.081 1,293
OtharExpensas 14,679 12,487 13,810 (1,323)
TOTilL OPERM;NG EXPENSES 22,982 22,841 22.871 (30)
Capital Expenses 26,110 48,655 49,155 (501))
Principal Payments 351 362 362 "
l'l'QtAj,;jliil(ji![Iil!e~ "" :;0'-;;:;:;',_ ___ J';~t; '.';,.,;'~'~'~.~
)t<liI(fflf,!!I!)'Rllilli:RVIiS' -,~ :"""" .;:.:q8~l"Om
ELECTRIC FUND
FY 1009 FY 2010 FY 2010 $ VarfanlCu
AcluallEne Adjusted Aotual/Em: Favorablu
"""",}~!,~1!!~ ____ SudgoL Rl)a~p.~2p (Un,.vor,1
REVENUE
~1.oIri<; ,.,.iI •• Ie. 106,463 112,624 111,140 (1,464)
Electric wholesale sales " " " "
Olher revenues 24,462 20,735 19,535 (1,200)
Bond Proceeds " " "
Rel'Ppropriations f Ene 7,551 10,900 10,900 "
r,:XPEN8ES
Purchases 82,348 77 ,719 63,713 9,006
NCPA & TANe Debl Svo 8,086 7,759 7,819 (60)
Other Expenses 43,453 49,011 44,870 4,141
TOTAL DPERAnNG EXPENSES 133,881 134,489 121,402 13,OB7
C""ltl!l E 'po ...... 16,743 16.483 18,550 (67)
Principal Paymenl. 100 100 100 "
i
Pagiil1 of" 1:211412010
eXHIBIT e
------~~~~-~~ ~ -~~ ~FiBER OPTICS FUNO-~ -~~ ~ ~ ---~---~
HZOO9 FY Z{ltO FY 201{1 $ VarJanc!I
Ac:luallenc AdJlJsted Ac:tuiltfEnc Favorable
Roapprop B!.!~i!i Ro".W"p (Unfavo'.1
REVENUE
Revenues. 3,790 2,990 3,593 603
Renpproprialions I Ene 182 607 607 ~
EXPENSES
Operating E>cpanses 1,710 1,387 1,510 (123)
TOTAL OPERATING EXPENSES 1,710 I 1,387 1,510 (123)
CB~ilBl Expenses 691 811 856 (45)
1!'t'~)(ER:IAMt'l!!~~t$\i.+~Il$fsllg'il$;Hil&i?'HI"fIlmJ' '"--'" , ·,hH __ ., __ -__ '" _____ JgV~-j.lr"'~"-""" __ -L w/'1_/. ~ _,) _._
I
GAS FUND
FY 2009 FY 2010 FY 2010 $ VarIance
AcluilllErte: AdjueteCl ,Aelu.VEru; Favorabls
Reapprop Budget R .. pp,op IUnfavor,i
REVENUE
Gas retail sales 47,425 44,517 43.502 (1,015)
Gns wholesale sales ---~
Other revenues 21062 2,417 3,248 831
Re1tppropr(ations I Ene 8,287 12,063 12,063 -
EXPENSES
Purchases 25,091 26,891 22,529 4,362
Other Expenses 13,580 16,457 16,191 266
TOTAL OPERATING EXPENSES 38,671 43,348 38,720 4,028
Capital Expenses 17,953 14,329 14,284 45
Principal Payments 443 443 -
Page2.af4 1:<'/14/201(1
. EXHIBIT E
WASTEWATER COLLECTioN FUND ~ ~~-~
REVENUE
Revern.res
ReappmpriaJions I Ene
FY~oe
ActuelfEnc
Rttapp;rop
15,466
6,545
FYn1~
AcijustOO
eu~~ ____
15,955
7,122
FY 1U111 $\'arhmce
~hla:11e1\C FavCl'lltlI9
R •• iV_.r,
15,914 (74)
7,122
lrI:~'tA.~ilU\l1llilillJ!i'i:iifi'(U;::::ii;i:: :i:i':~i~'f~ ,§1lliSii:"~'tt\i" :~ft:g3:jl3i~ . .::;i'flt'lfj,
EXPENSES
Sewer Treatment E;;:p.
OperaUng Expens6s
TOTAL OPERATING EXPENSES
Capital Expens ••
Pnoolpal Paymenl!i
6,131 •
4,785 .
10,916
11,246
58
7,933
4,623
12,556
10,906
61
WASTEWATER TR5ATMENT FUNO
REVENUE
Operating Revenuos
Restricted Bond Proceeds
Loan Proceeds
Reappropriatlons/ EnG
Bonded RoapprofEncum
EXPENSES
Operating Expen.ses
TOTAL OPERATING EXPENSES
Capital Expenses
Prindpal Payments
FY 2008
Actu2lLfE;~
R •• pprop
23,614
2,210 !
15,733 :
17
15,510
1MI0
34,577
~61
FY 2010
Adjusted;
SUdgit
21,987
26,298
19.572
19,572
28,890
364
6,519
4,244
10,763
11,441
61
FY 2!.i1!.i
Actual/Ene
R~pprop
·.i,D.
11,550
4,528
28,298
lB,I22
18,122
26,654
364
1,414
319
1.793
(535)
$: Vananc(t
FavQrllb1e
IUofavor.)
(4,437)
4,528
1,450
1,450
236
EXHIBITE
~.~~---~-~ -----~-~----~~--~-~ ~~ ~ REFUSE FUND
FY ZOOB FY 2,010 FY 2010 $ VarIance
AclU_flEnc AdJuflt>ed Acll.l'allEnc Fa\lOrBble-
Reapprop Budi<n Ro.,pprop IUnfavor.l
REVENUE
Revenues 30,022 37,323 29,163 (8,160)
Reappropriations J Ene 1,874 3,021 3,021 .
EXPENSES
Payments to GreenWaste 9,504 15,070 12,478 2,592
Other Expenses 26,334 22,256 19,582 2,674
TOTAL OPERATING EXPENSES 35,838 • 37,326 32,060 5,266
Capital Expenses 2,72() I 3,890 2.207 1,683
lilII'\111(liiOCQtlJl"!!s.V~$"'ti""il':"'~';:'Xil";";;:X~'~~2) )(~ '< •. " ) -,L _ _ -__ :N:h"-<,-",,n,/\\j&>_i!' ,,;, _ ~ ,'_ '"
STORM DRAINAGE FUND
FY 2009 FY2010 FY .1C10 $ Varlanc:e
Actual/Ene Adjusted AC~QIJEm: F~vor.abJe
Reapprop Budget Reapprop (~!?!~ REVENUE
Revenues 5,824 5,651 5,815 164
Reappropljal~ns f Ene 4,683 2,305 2,305 -
EXPENSES
Operaling Expenses 2,418 3,913 3,292 621
TOTAL OPERATING EXPENSES 2,418 3,913 3,292 621
CapitlllExpenses 7,418 3,748 3,039 709
Principal Payments 385 405 405
Page 4 of 4 12/1412010
"ISCAL YEAR 2OlO
: Rate stabilization
Geooral RSR
SupplV RSR
DistributiOn RSR
Total RSR
, Emergency Plant Replace
jColave,as
'Underground loan
COnservation loan
Landfill COrrective Action
Shasta rewind loan
Central V •• ey Project
Public Benellt Program
ij~~!rilI;~ty~~c,;"i
. fISCAL YEAR 2010
5,883
307%
Water
$17,037
17,037
1,000
EXHIBIT F
13,022 6,738 (1,147)
95% 150% 115% 892% -116% -21%
RESERVe: DETAIL
Electric Flb.tO "" Ga. WWC WWT RefMSe Storm Total
$B,2l0 $6,772 ($12,386) ($4,935) $2136 $15,044
44,855 12,339 57,194
9,484 6,209 15,693
54,339 6,270 16,546 6,772 (12,386) (4,935) 286 87,931
1,000 1,000 1,000 1,000 2,160 7,160
59,665 59,865
731 731
65B 656
305 306
3 750 3,750 ;t¥'i'll'03""~'·'",,;;>Ii:f.Dt;)j':1:;O:!!'lIij"'""~"!l»:i"~1~~!'i:~~':·;r"ftK'lij~*±:;;~~'l?;;i:lr;il'iii''''~;n~'!J'~tiiO''~''!'!I -~-,-',,~<_ 1 ... _""",,~,~·_ ,1!'t:~",.. _ '" A _ ,\,JIi;'lflfl:1f\4',H _ ~_ vv •• S ¥S;f,'f'lff; ,_ L-__ "-_-'Yl"A'~Z"'i,_10f1,_v_~_jl+//:,r7!9.:~t~P}Lj"i,;,~,~",f!t'!.iliji;
RATE STABILIZATION RESERVE
Water Electric Fiber Optla Gas wwc WWT Refu"" Storm Total
Beginning RSR $5,400 $47,763 $6,436 $13,182 $6,001 ($15,602) ($2,844) ($1,096) $59,258
To(from) RSR 11,637 6,556 1,834 5,366 771 3,216 (2,091) 1,364 28,673 ~1rdl!it:J[iijil]1?;~~; I'i:hll~r'11i.f)i)~R$[~~~~~~JJ'QI!~[~1i~1!;!OO!ll~fl!~~i:~~_l~~~.f.'Wm:;;:~~~~··XiHljjii:li;tift!
RSRMlnlmum
RSR Maximum
RSR % of MaXI mum
4,317
6,63~
197%
91,442
59%
547
1,367
605%
9,399
18,798
99%
Page 1 of 1
2,151
4,303
157%
3,199
6,397
-19'1%
3,242
6,463
-76%
N/A
N/A
NiA
68,576,
137,424
64r)/-u
12114/2010
FILENAME 1
Excerpt from the minutes of December 21, 2010
FINANCE COMMITTEE
Special Meeting
Tuesday, December 21, 2010
Chairperson Schmid called the meeting to order at 6:06 p.m. in the Council
Conference Room, 250 Hamilton Avenue, Palo Alto, California.
Present: Schmid (Chair), Espinosa, Klein, Scharff
Absent:
3. Recommendation Regarding Adoption of Ordinance Authorizing Closing of
the Budget for the Fiscal Year Ending June 30, 2010, Including Reappropriations
Requests, Closing Completed Capital Improvement Projects, Authorizing
Transfers to Reserves, and Approval of Comprehensive Annual Financial Report
(CAFR)
David Ramberg, Assistant Director Administrative Services Division spoke
regarding the Staff’s recommendation for the Finance Committee to approve
the CAFR. He said this was a required step and it was what carried over the
funds from one year to the next. In October Staff presented the Committee
with a preview stating there should be no major surprises; he said that things
seemed to be on track. He said Staff tracked the salary savings from mid-year
adjustments, and they were successful. The 2011 budget had no adverse
affects from the 2010 budget. The General Fund Reserve was healthy
Trudy Eikenberry, Accounting Manager discussed the changes to the CAFR as
requested by the Finance Committee. The 2012 budget would contain the
same changes. She said the Benefit Fund ended the year with $200,000 and
the General Liability and Workers’ Compensation Funds were $100,000 each
creating a situation where there was not a lot of room for fluctuation.
Council Member Klein disagreed saying there was room for fluctuation.
FILENAME 2
Mr. Perez clarified that if there was a negative impact they would have to draw
money from the other funds and fix the gap.
Ms. Eikenberry discussed the General Fund. She stated the balance for the
General Fund ended at a net loss of $1.8 million ending with a fund balance of
$41.4 million. The Budget Stabilization reserve was impacted by the loss but it
still increased $2.6 million because the other reserves did not require as much
funding. The percentage for the Budge Stabilization Reserve was 19.7 % of
Fiscal Year 2011 (FY11) expenditures and operating transfers and was within
the Council guidelines.
Mr. Ramberg said the encumbrance amount was carried forward to satisfy
commitments in 2011.
Ms. Eikenberry said the CIP Fund ended the year with $25.9 million in
expenditures including operating transfers out of 3.9 million. The fund balance
ended the year at $83.8 million an increase of $47 million over the previous
year because of Library Bonds. The CIP Fund commitments were $21.1 million.
She spoke about five years of expenditures in all major categories for CIP
projects. The Enterprise Funds ended on a positive note with a gain as well as
a positive RSR. She said the Wastewater Treatment Fund had a negative RSR
of $12.4 million. She said the Refuse Fund ended the year with a negative $4.9
million in RSR. It had a cash balance of $8 million which was sufficient to fund
the state mandated funding for the closure. She said that a post closure
liability of $5.1 million was from future revenues and did not have to be in the
fund at this time. It did have to be budgeted for going forward. The BSR
should be structured so that revenues exceed expenditures, which had not
happened in recent years. The RSR was a combination of gains and losses
along with other commitments. She discussed a graph of the major enterprise
funds and all were within the minimum and maximum amounts except the
wastewater treatment and refuse funds.
Council Member Klein said that he did not see the sales tax revenue comment
supported by the chart on page five of the Staff Report.
Mr. Perez said it would be in the fees and permits information.
Council Member Klein said the community should understand where the
reductions were and the report should be made clearer.
FILENAME 3
Mr. Perez said they may provide a table that shows that information on the next
report.
Council member Klein said regarding the Retiree Medical Trust Fund he didn’t
understand the liability per January with direct contributions to Cal Pers.
Ms. Eikenberry said there were two ways to pay one was direct and one goes
into the trust fund both reduce the liability.
Council Member Klein said he was concerned they were double counting. It
seemed the contributions made in August 2010 would have included the 5.5
million in contributions.
Ms. Eikenberry said that even though the trust was at CalPers it was separate
from making payments directly to Cal Pers. The trust was just for current
employees not for current retirees.
Mr. Perez said that was what the $5.5 million was only for current retirees.
Ms. Eikenberry said the next valuation would use a January 1st date and would
be brought forward in April and the liability would be high again.
Mr. Perez said they had to be concerned about this number. The cost factors
for the increases of the health care were different. The trust fund and assets
were different from the pension fund.
Vice Mayor Espinosa asked about future updates.
Mr. Perez said they currently bring the updates to the Finance Committee
quarterly by policy. The mid year report would be in March. Adjustments were
usually made to revenues at that point versus on the first quarter report. They
would also request any increases in the budget expenditures.
Vice Mayor Espinosa said he wanted to know what would be coming in the first
half of the year that might be adjustment surprises.
Mr. Perez said Staff recommended budgets for Staff overtime to be kept at the
same levels, and that could be an issue. If they felt it was trending differently
than budget they would report it. He talked about various revenues including
positive trends in sales tax. There were some commercial property tax
concerns as well as a potential issue with the Utility Users Tax that Staff needed
to analyze prior to reporting.
FILENAME 4
Chair Schmid asked about the adopted and adjusted budget which indicated
that the balance was achieved by a remarkable increase in revenues. The
increase in revenues was particularly due to return on investment.
Ms. Eikenberry said an unrealized gain they also book a reserve so that it would
not add to the BSR.
Chair Schmid asked if the 800 charge for services were fees that were imposed
over the last year.
Mr. Perez said this could include the Stanford reimbursement changes. It
would include paramedic fees, class programs, checking fees, and golf related
fees. He said this was changed due to IT and the Fire Departments share.
Chair Schmid asked about reserve balances and about some investments that
were allotted for.
Council member Klein said he thought they zeroed out the reserve.
Ms. Eikenberry said the equity transfer stabilization was zeroed out.
Council Member Klein said that unrealized gain could not increase as a result of
the equity stability being zeroed out.
Ms. Eikenberry said that any change would impact the BSR the there was only a
set fund balance.
Council Member Klein so it did increase it.
Ms. Eikenberry said it decreased due to the unrealized gain that went up.
Reappropriations dropped by almost $2 million.
Council member Klein asked for clarification.
Ms. Eikenberry pointed to the chart on page four of the slides. She said that
the reserves except Budget Stabilization were a specific number and were
funded first. Any difference goes into the Budget Stabilization.
Council Member Klein asked about the automatic procedure if it grew over
20%.
FILENAME 5
Mr. Perez said the excess goes to the Infrastructure Reserve Fund. If it
happened it would happen at the end of the fiscal year.
Chair Schmid commented on the Library Bond proceeds reporting.
Mr. Perez said Staff was following the Motion made by the Finance Committee.
Chair Schmid said the Utility Fund seemed to be very successful at generating
substantial profits. He suggested reserves should not be built when the rates
were 30% higher than other companies.
Mr. Perez suggested Staff should bring the audited information that
demonstrates the reserves that were needed. They did need to be reviewed
with the Committee to determine if the minimum and maximums were still
what was needed.
Chair Schmid asked where the total reserves were.
Mr. Ramberg said they were listed on a different part of the CAFR.
Ms. Eikenberry clarified they were unrestricted reserves.
MOTION: Council Member Espinosa moved, seconded by Council Member
Scharff that the Finance Committee recommends to the City Council approval of
the CAFR as stated in the staff report.
MOTION PASSED 4-0.
CITY OF PALO ALTO OFFICE OF THE CITY AUDITOR
February 7, 2011
The Honorable City Council
Palo Alto, California
Finance Committee Recommendation to Accept Maze & Associates’
Audit of the City of Palo Alto’s Financial Statements as of June 30,
2010 and Management Letter
Recommendation
On December 21, 2010, the Finance Committee unanimously recommended that Council accept the
attached Maze & Associates’ Audit of the City of Palo Alto’s Financial Statements as of June 30, 2010 and
Management Letter.
Respectfully submitted,
Mike Edmonds
Acting City Auditor
ATTACHMENTS:
Attachments A‐G Financial Statements and Management Letter (PDF)
Attachment 1 Minutes from the Finance Committee Meeting of December 21, 2010 (PDF)
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FILENAME 1
FINANCE COMMITTEE
Special Meeting
Tuesday, December 21, 2010
Chairperson Schmid called the meeting to order at 6:06 p.m. in the Council
Conference Room, 250 Hamilton Avenue, Palo Alto, California.
Present: Schmid (Chair), Espinosa, Klein, Scharff
Absent:
1. Oral Communications
None.
2. Maze & Associates’ Audit of the City of Palo Alto’s Financial Statements as
of June 30, 2010 and Management Letter
Michael Edmonds, Acting City Auditor, provided a brief overview of the City’s
Financial Audit conducted by the firm of Maze and Associates for the fiscal year
ending June 30, 2010. He noted that the Auditor’s Opinion Letter and the
Single Audit work were in the Comprehensive Annual Financial Report (CAFR)
and the Management Letter and other Financial Statements and required
reports were included as attachments A-G under the City Auditor’s cover letter.
Cory Biggs, with Maze & Associates, stated that the purpose of the audit was to
express an opinion on the City’s Financial Statements. He reported that the
audit results included a clean opinion on the Financial Statements. He also
discussed the Single Audit, which was an audit of all the federal awards that the
City received and these awards were subject to additional compliance
requirements. The auditors review federal awards of major programs and
rotate tests on programs each year. He noted that this year that Governmental
Accounting Standards Board (GASB) had two new pronouncements, one on
Intangibles and another on Derivatives. The City had no material activity
related to either of these pronouncements; thus, no changes to the financial
statements were required to implement the new pronouncements. In regards
FILENAME 2
to the financial statement audit, he discussed the Memorandum on Internal
Control which included one significant deficiency, a billing problem between the
Electrical Fund and the Gas Fund. The Gas Fund did not bill the Electric Fund
for three years of natural gas used to power the Cooperatively Owned Back Up
Generator (COBUG). This issue had been corrected and the Electric Fund had
paid the Gas Fund for the last three year’s billings. On compliance issues, he
reported on an issue related to the Library Bond audit which was a new audit
this year required by Measure N. He said that Measure N required the City to
file an annual report with the Council no later than November 1, and the report
had not by filed at the time the Audit was completed. He stated that he was
not concerned with the issue because the City Council was receiving the
information on a quarterly basis from the Library Bond Oversight Committee.
In regards to the Single Audit report, he noted that the Single Audit report
included three findings, which was unusual for Palo Alto. Two of the findings
were related to agreement maintenance. He reported that the City was
complying with the grant agreements but the internal controls were not
adequate because the City did not have two grant agreements in place. This
raised concern about future compliance. He discussed the third finding on the
Single Audit work which he referred to as a significant deficiency. He said the
City did not provide several sub-recipients with all the information that the
Federal Government required. He stated that overall Staff was prepared for the
audit which allowed the Auditors to proceed efficiently. He also noted a
reduction in the number of post-closing adjustments, which was an indicator of
accuracy in closing the books. During the previous year, the Auditors noted
that approximately three dozen post-closing adjustments were made; however,
this year, only about a dozen post-closing adjustments were needed.
Lalo Perez, Administrative Services Director, stated that Staff was already
working in response to the recommendations. He said that they were creating
a checklist to address the grant issue. The billing error was also being
addressed.
Chair Schmid asked for clarification about information on page 85 of the CAFR
that states “The City does not have a net pension obligation since it pays these
actuarially determined contributions monthly.” He was concerned that this term
was contradictory to his understanding that the City would be liable if CalPers
could not make required pension payments.
Mr. Biggs clarified that the term net pension obligation was a technical term in
GASB 25 that refers to whether an organization funds its retirement
contributions actuarially. It was a different measure than the unfunded actuarial
liability. He said the key to pension accounting was to make sure that an
FILENAME 3
actuary determines a sound funding practice for annual pension contributions.
As long as the City paid the annual actuarially determined contribution, it would
not be required to report any other liabilities on its balance sheet.
Chair Schmid raised questions about of GASB 25. He cited the Securities
Exchange Commission (SEC) interactions with the City of San Diego regarding
the accuracy of reporting on their pension liability. He also noted that the
American Academy of Actuaries was concerned with the reporting of pension
liabilities and were working toward revising standards to clarify actuarial
assumptions. He also noted that CalPers was reviewing the way it did business
and had pending lawsuits to be more open with disclosures.
Mr. Biggs stated that GASB 25 was the standard measure for financial reporting
and that was the measure that the auditors were required to use for financial
reporting purposes...
Chair Schmid asked if there was anything the actuaries could do to help the
City make accurate pension payments in the future.
Mr. Biggs suggested meeting with an actuary to provide clarity regarding the
impact from changing assumptions. He then reviewed trends on rates of return
to determine if they were reasonable. Recently, the rates of return had been
negative and volatile. He said the pension plans would need to recognize that
volatility in the future.
Chair Schmid raised a concern whether the financial reporting, which was based
on the actuarial value and does not include the market value, provides the
citizens of Palo Alto with the full knowledge of the risks associated with the
City’s pension liability.
Mr. Biggs stated that the City had made all the required disclosures. The
actuarial value was used to make the annual pension contributions. The City
could opt to include additional disclosures if deemed necessary.
Mr. Perez commented on GASB 25. He stated that they should discuss what
additional information Council might want to add. For example, CMR 455-10
includes the actuarial value of the assets for Safety and the Miscellaneous
Plans. This report included the actuarial and market value of the assets,
demographic information, and employee information. Staff needed to provide
information regarding the impact of the changes and rates that CalPers had
provided. For example, the City’s rate for the Miscellaneous Plan was 17.5%
for FY 2011. The City’s share of the employee contribution varies from 2.25%
FILENAME 4
to 6%. Thus, the total City contribution was a total of 19.7% to 23%. If the
higher rates go into effect, the City’s total contribution would increase to 28.4%
to 32%. He said the City’s long term financial forecasts would have to consider
the financial impacts of these changes. The City would also have to consider
how to address these cost increases.
Chair Schmid stated that he was concerned that the City had satisfied the legal
reporting requirements but the assumed rate of return was unrealistic without
taking significant risks.
Mr. Perez stated that CalPers was considering revising its assumed rate of
return from 7.75% to 7.5%. If this change was implemented, CalPers
estimated that these changes would increase Miscellaneous Plan contributions
by 1.5% to 3% and Safety contributions would increase by 3% to 5%. Overall,
these changes would increase Miscellaneous Plan contributions to about 33% to
35%. For Safety, these contributions would increase to 49% to 53%.
Chair Schmid noted that the adjustments would take place at the board level of
CalPers, who did not have to make the payments.
MOTION: Council Member Klein moved, seconded by Espinosa that the Finance
Committee recommends to the City Council acceptance of the External Audited
Financial Statements and Management Letter.
MOTION PASSED 4-0.
3. Recommendation Regarding Adoption of Ordinance Authorizing Closing of
the Budget for the Fiscal Year Ending June 30, 2010, Including Reappropriations
Requests, Closing Completed Capital Improvement Projects, Authorizing
Transfers to Reserves, and Approval of Comprehensive Annual Financial Report
(CAFR)
David Ramberg, Assistant Director Administrative Services Division spoke
regarding the Staff’s recommendation for the Finance Committee to approve
the CAFR. He said this was a required step and it was what carried over the
funds from one year to the next. In October Staff presented the Committee
with a preview stating there should be no major surprises; he said that things
seemed to be on track. He said Staff tracked the salary savings from mid-year
adjustments, and they were successful. The 2011 budget had no adverse
affects from the 2010 budget. The General Fund Reserve was healthy
City of Palo Alto (ID # 1309)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 2/7/2011
February 07, 2011 Page 1 of 2
(ID # 1309)
Title: Gas Utility Rate Schedules G-10 and G-3
Subject: Finance Committee Recommendation to Adopt a Resolution Amending
Utility Rate Schedules G-10 and G-3 of the City of Palo Alto Utilities Rates and
Charges Pertaining to Gas Rates
From: City Manager
Lead Department: Utilities
RECOMMENDATION
The Utilities Advisory Commission (UAC), the Finance Committee and staff recommend
that the City Council adopt changes to Gas Utility Rate Schedule G-10 (Compressed
Natural Gas Service) and Gas Utility Rate Schedule G-3 (Large Commercial Gas Service)
as attached. The rate schedules, if approved, would become effective March 1, 2011.
EXECUTIVE SUMMARY
The current G-10 schedule is open to all compressed natural gas (CNG) sales,
potentially including members of the public. The proposed changes: 1) convert G-10 to
a rate schedule only applicable to Utilities department sales of natural gas to the City’s
CNG facility at the Municipal Service Center (MSC), operated by the Public Works
department; and 2) base the G-10 commodity charge on market rates rather than the
City’s average cost to purchase gas. The City’s Public Works Department, as the
station’s operator, will subsequently develop a new rate schedule based on their
operating costs of the CNG facility.
The changes proposed to the G-3 rate schedule are to correct the language describing
the calculation of the commodity charge and do not represent any change to actual
rates charged under the existing rate schedule.
At its November 3, 2010 meeting the UAC, and at its December 7, 2010 meeting the
Finance Committee unanimously accepted staff’s recommendation.
BOARD/COMMISSION REVIEW AND RECOMMENDATIONS
The Finance Committee considered staff’s recommendation at its December 7, 2010
meeting. The Committee had a brief discussion about the difference between the two
schedules and clarified that Schedule G-10 was only available to the CNG facility and
was not an option for large commercial customers. The Committee voted unanimously
February 07, 2011 Page 2 of 2
(ID # 1309)
to recommend that the City Council adopt the resolution amending Gas Utility Rate
Schedule G-10 (Compressed Natural Gas Service) and Gas Utility Rate Schedule G-3
(Large Commercial Gas Service). Draft notes from the Finance Committee’s December
7 2010 meeting are provided as Attachment F.
RESOURCE IMPACT
The change in pricing from a fixed annual price to a variable monthly price is not
expected to have a significant impact on the Gas Utility’s net revenues. Due to the
volatility that is inherent in market gas purchases the exact impact is difficult to quantify
but due to the low level of sales at the CNG station, it is not expected to be significant.
POLICY IMPLICATIONS
This recommendation does not represent a change to current City policies.
ENVIRONMENTAL REVIEW
Adoption of this resolution does not meet the California Environmental Quality Act’s
definition of a project, pursuant to California Public Resources Code Section 21065,
therefore no environmental assessment is required.
ATTACHMENTS:
Att A Resolution Amending Utility Rate Schedules G-10 and G3 (PDF)
Att B CMR 429:10 - To Finance Committee - Amending Utility Rate Schedules G-10 and G-3
(PDF)
Att C Gas Rate Schedule G-10 -redline version (DOC)
Att D Gas Rate Schedule G-3 -redline version (DOC)
Att E Excerpted Draft Minutes from the UAC Nov 3, 2010 meeting (DOCX)
Att F Excerpted Draft Minutes form the Finance Committee Dec 7, 2010 meeting (DOC)
Prepared By:Ipek Connolly, Sr. Resource Planner
Department Head:Valerie Fong, Director
City Manager Approval: James Keene, City Manager
NOT YET APPROVED
Resolution No. ---Resolution of the Council of the City of Palo Alto Amending
Utility Rate Schedules G-IO and G-3 of the City of Palo Alto
Utilities Rates and Charges Pertaining to Gas Rates
The Council of the City of Palo Alto does RESOLVE as follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-lO (Compressed Natural Gas Service) is hereby amended to read in accordance
with sheets G-10-1 and G-10-2, attached hereto and incorporated herein. The foregoing Utility Rate
Schedule, as amended, shall become effective February 1, 2011.
SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-3 (Large Commercial Gas Service) is hereby amended to read in accordance with
sheets G-3-1 and G-3-2, attached hereto and incorporated herein. The foregoing Utility Rate
Schedule, as amended, shall become effective February 1,2011.
SECTION 3. The Council fmds that the revenue derived from the authorized adoption
enumerated herein shall be used only for the purpose set forth in Article VII, Section 2, of the
charter of the City of Palo Alto.
SECTION 4. The Council finds that the adoption of this resolution does not constitute a
project under the California Environmental Quality Act, California Public Resources Code §21080,
subdivision (b) (8).
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Sr. Assistant City Attorney City Manager
Director of Utilities
Director of Administrative Services
101118 dm 0073459
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: UTILITIES
ATTENTION: FINANCE COMMITTEE
DATE: DECEMBER 7, 2010 CMR: 429:10
SUBJECT: Adoption of a Resolution Amending Utility Rate Schedules G-10 and G-
3 of the City of Palo Alto Utilities Rates and Charges Pertaining to Gas
Rates
REQUEST
The Utilities Advisory Commission (UAC) and staff recommend that the Finance Committee
recommend that the City Council adopt changes to Gas Utility Rate Schedule G-10 (Compressed
Natural Gas Service) and Gas Utility Rate Schedule G-3 (Large Commercial Gas Service) as
attached. The rate schedules, if approved, would become effective February 1, 2011.
EXECUTIVE SUMMARY
The current G-10 schedule is open to all compressed natural gas (CNG) sales, potentially
including members of the public. The proposed changes: 1) convert G-10 to a rate schedule only
applicable to Utilities department sales of natural gas to the City’s CNG facility at the Municipal
Service Center (MSC), operated by the Public Works department; and 2) base the G-10
commodity charge on market rates rather than the City’s average cost to purchase gas. The City’s
Public Works Department, as the station’s operator, will subsequently develop a new rate
schedule based on their operating costs of the CNG facility.
The changes proposed to the G-3 rate schedule are to correct the language describing the
calculation of the commodity charge and do not represent any change to actual rates charged
under the existing rate schedule.
At its November 3, 2010 meeting, the UAC unanimously accepted staff’s recommendation.
BACKGROUND
The City of Palo Alto’s Compressed Natural Gas fueling station was put into operation in 1997,
with the first rate schedule for Compressed Natural Gas Service (G-10) becoming effective April
1, 1997 (CMR 150:97). The project was intended both to improve air quality and to promote the
use of natural gas in vehicles. The Gas Utility Fund provided the capital funds to complete the
project. The Public Works Department operates and maintains the high-pressure, high-volume
natural gas compressor and fueling station.
In addition to fueling the City’s fleet of natural gas vehicles, the Palo Alto Unified School
District and the Ravenswood School District were allowed to fuel their buses under the existing
fuel permit. No other customers were allowed to fuel at the CNG station.
CMR: 429:10 Page 1 of 3
With the improvement and expansion of the CNG facility starting in 2006 (CMR 263:06), the
new direction for this facility is to offer CNG to members of the public who own natural gas-
fueled vehicles. As such, a change to the pricing method used and a clarification to the
applicability of the G-10 rate schedule are required at this time.
DISCUSSION
Applicability
The current schedule is technically open for “the sale of compressed natural gas (CNG) at the
City-owned natural gas fueling stations to customer (sic) who use CNG for fueling CNG
vehicles.” In practice, the only customers able to utilize this facility have been City of Palo Alto
vehicles and buses operated by the Palo Alto Unified and Ravenswood School Districts.
UAC and staff recommend changing the applicability to be ‘the sale of natural gas to the City-
owned compressed natural gas (CNG) fueling station.’ The purpose of the G-10 schedule should
be to sell gas to the CNG station at the MSC as a customer of the Utilities Department. Pricing
of compressed natural gas to the public should be determined based on operating costs as
determined by the station’s operator, the Public Works Department. A new rate schedule will be
developed by the City’s Public Works Department accordingly.
Pricing
The Gas Fund’s existing rate schedule for CNG service is an average rate based on the City’s
cost to purchase gas, computed annually during the budget process. This method had the
advantage of providing Public Works with a stable rate for computing fleet related fueling costs
for budgeting purposes.
While stable prices are desirable, as a public facility open to both internal and transient
customers, staff recommends that the pricing be more aligned with market costs similar to a
commercial service station. Therefore, instead of an average rate computed annually, the revised
schedule will determine charges based on the same method currently utilized by large
commercial gas customers under rate schedule G-3. The proposed commodity charge for the G-
10 rate would be equal to the monthly natural gas bidweek price index for delivery at PG&E
Citygate, accounting for delivery losses to the customer’s meter. The commodity charge would
only be allowed to fluctuate within the minimum/maximum range currently approved by Council
similar to the G-3 rate ($0.10 to $2.00 per therm).
Staff also recommends that the revised G-10 rate schedule exclude the local distribution charge
that is included in the G-3 rate schedule. The reason for this exclusion is that natural gas is
delivered directly to the fueling station over the PG&E system and does not utilize the local
distribution system. However, there will be a nominal monthly customer charge component of
the revised G-10 rate schedule, consistent with all other utility rate schedules, representing costs
associated with billing and account management.
Staff has discovered an incorrect statement on the existing G-3 Rate Schedule in the language
describing the calculation of the applicable commodity charges and recommends edits to the G-3
Rate Schedule. These edits, shown in Attachment C, clarify that the commodity charge is based
on the monthly natural gas bidweek price index for delivery at PG&E Citygate. These
CMR: 429:10 Page 2 of 3
recommended revisions do not represent any change to actual rates charged under the existing
rate schedule.
BOARD/COMMISSION REVIEW AND RECOMMENDATIONS
The UAC considered staffs recommendation at its November 3, 2010 meeting. The Commission
discussed the range included in the G-IO rate and clarified that the large range is given to allow
for the range in gas market prices that ",ill be passed through in the rate, as it is in the G-3 rate.
The Commission also discussed the involvement of twodepar1ments in setting the retail rate for
CNG sales at the MSC.
The commission voted unanimously to recommend that the City Council adopt staft's
reconunended changes to the Gas UtiliTy Rate Schedule G-I0 (Compressed Natural Gas Service)
and Gas UtiliTy Rate Schedule G-3 (Large Commercial Gas Service). Draft notes from the
UAC's November 5, 2010 meeting are provided as Attachment D.
RESOVRCEIMPACT
The change in pricing from a fixed annual price to a variable monthly price is not expected to
have a significant impact on the Gas Utility's net revenues. Due to the volatility that is inherent
in market gas purchases the exact impact is difficult to quantify but due to the low level of sales
at the eNG station, it is not expected to be significant.
POLICY IMPLICATIONS
This recommendation does not represent a change to current City policies.
ENVIRONMENTAL REVIEW
Adoption of this resolution does not meet the California Environmental Quality Act's definition
of a project, pursuant to California Public Resources Code Section 21065, therefore no
environmental aqsessment is required.
ATTACHMENTS
A. Resolution Amending Utility Rate Schedules G-l 0 And G-3
B. Gas Rate Schedule G-IO
C. Gas Rate Schedule G-3
D. Excerpted Draft Minutes from the UAC November 3, 2010 meeting
PREPARED BY: IPEK CONNOLLY \ C/
Sr. Resource Planner ..-
REVIEWED BY: DEBRA LLOYD
Acting Assistant Director, Resource Management
DEPARTMENT APPROVAL:
VALE EO. NG
~ ofUtiliti~
CITY MANAGER APPROVAL:~lJJ 7ArL::..p ~c.J ESKEENE
'\ ~ City Manager
CMR: 429:10 Page 3 of 3
NOT YET APPROVED
Resolution No. ---Resolution of the Council of the City of Palo Alto Amending
Utility Rate Schedules G-IO and G-3 of the City of Palo Alto
Utilities Rates and Charges Pertaining to Gas Rates
The Council of the City of Palo Alto does RESOLVE as follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-lO (Compressed Natural Gas Service) is hereby amended to read in accordance
with sheets G-10-1 and G-10-2, attached hereto and incorporated herein. The foregoing Utility Rate
Schedule, as amended, shall become effective February 1, 2011.
SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-3 (Large Commercial Gas Service) is hereby amended to read in accordance with
sheets G-3-1 and G-3-2, attached hereto and incorporated herein. The foregoing Utility Rate
Schedule, as amended, shall become effective February 1,2011.
SECTION 3. The Council fmds that the revenue derived from the authorized adoption
enumerated herein shall be used only for the purpose set forth in Article VII, Section 2, of the
charter of the City of Palo Alto.
SECTION 4. The Council finds that the adoption of this resolution does not constitute a
project under the California Environmental Quality Act, California Public Resources Code §21080,
subdivision (b) (8).
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Sr. Assistant City Attorney City Manager
Director of Utilities
Director of Administrative Services
101118 dm 0073459
COMPRESSED NATURAL GAS SERVICE
UTILITY RATE SCHEDULE G-10
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective x7-1x-200910
Supersedes Sheet No. G-10-1 dated 7-1-20089 Sheet No.G-10-11
A. APPLICABILITY:
This schedule applies to the sale of compressed natural gas (CNG) to at the City-owned compressed
natural gas (CNG) fueling stations to customer who use CNG for fueling CNG vehicles. at the
Municipal Service Center in Palo Alto
B. TERRITORY:
Applies to locations within the service area of the at the Municipal Service Center in City of Palo Alto.
C. RATES: Per Service
Monthly Customer Charge: $55.25
Per Therm Charges (To be added to Customer Charge) Per Therm
Commodity Charge (Monthly Market Based)...................................................$0.10-$2.00
Administrative Fee ...................................................................................................$0.0227
PG&E Local Transportation.....................................................................................$0.0212
Per Gasoline
Per Therm Gallon Equivalent
Commodity Charge $1.08 $1.25
For billing purposes, the number of gallons will be complied from a Summary of Transactions recorded
by the dispensing unit for the customer during the month.
D. SPECIAL CONDITIONS
1. 1. Service under this schedule is subject to discontinuance in whole or in part in case of actual or
anticipated shortage of natural gas resulting from insufficient supply, inadequate transmission or
delivery capacity of facilities.
2. Service under this schedule is provided only from a designated City fueling station which will
deliver CNG at approximately 3,000 pounds per square inch (PSI).
1.
2. The actual bill amount is calculated based on the applicable rates in Section C above and adjusted
COMPRESSED NATURAL GAS SERVICE
UTILITY RATE SCHEDULE G-10
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective x7-1x-200910
Supersedes Sheet No. G-10-1 dated 7-1-20089 Sheet No.G-10-21
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.
(A) Commodity Charges
The commodity charge is based on the monthly natural gas bidweek price index for delivery
at PG&E Citygate, accounting for delivery losses to the customer’s meter. The commodity
charge will fall within the minimum/maximum range set forth in Section C.
The commodity charge is equal to the City's weighted average cost of gas calculated at the
PG&E City Gate for gas purchased by the City at first of the month and daily market prices
for that month. The commodity charge will fall within the minimum/maximum range set
forth in Section C and include the cost of transporting the gas to the PG&E City Gate.
(B) Administrative fee
The Administrative fee is equal to the allocable administrative and overhead costs
incurred by the City in providing the gas service.
(C) PG&E Local Transportation
PG&E Local transportation charge is equal to the cost of transporting gas from the
PG&E’s City Gate to the Palo Alto City Gate.
3. Individuals responsible for fueling a Natural Gas Vehicle shall be required to complete training
sessions to be certified to fuel a vehicle. Each individual must sign and date the Certificate of
Instruction for Fueling Natural Gas Vehicle.
4. Customers requesting to take service under this rate schedule are required to sign a Compressed
Natural Gas Agreement before commencing service.
5. If required by local or federal law, assessed applicable taxes shall be added to charges shown in
this rate schedule.
{End}
LARGE COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-3
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7x-1-20092010
Supersedes Sheet No G-3-1 dated 117-1-2008 2009 Sheet No G-3-1
A. APPLICABILITY:
This schedule applies to service for large commercial customers who use at least 250,000 therms per
year at one site and have retained gas direct access eligibility. This schedule also applies to City
owned generation facilities.
B. TERRITORY:
This schedule applies anywhere the City of Palo Alto provides natural gas service.
C. UNBUNDLED RATES: Per Service
Monthly Customer Charge: $311.00
Commodity Rate: (To be added to Customer Charge)
Per Therm
Supply Charges:
1. Commodity Charge (Monthly Market Based).......................................$0.10-$2.00
2. Administrative Fee .......................................................................................$0.0227
3. PG&E Local Transportation.........................................................................$0.0212
Distribution Charge:
1. Palo Alto Local Distribution.........................................................................$0.2884
D. SPECIAL NOTES:
1. Calculation of Cost Components
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.
LARGE COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-3
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7x-1-20092010
Supersedes Sheet No G-3-2 dated 117-1-2008 2009 Sheet No G-3-2
(A) Commodity Charges
The commodity charge is based on the monthly natural gas bidweek price index for
delivery at PG&E Citygate, accounting for delivery losses to the customer’s
meter.The commodity charge is equal to the City's weighted average cost of gas
calculated at the PG&E City Gate for gas purchased by the City at first of the month
and daily market prices for that month. The commodity charge will fall within the
minimum/maximum range set forth in Section C. and include the cost of tr
ansporting the gas to the PG&E City Gate.
(B) Administrative fee
The Administrative fee is equal to the allocable administrative and overhead costs
incurred by the City in providing the gas service.
(C) PG&E Local Transportation
PG&E Local transportation charge is equal to the cost of transporting gas from
the PG&E’s City Gate to the Palo Alto City Gate.
2. Special Conditions
Service under this schedule is subject to discontinuance in whole or in part, for operational
reasons, or if the City experiences supply or capacity shortages. The City will exercise
reasonable diligence and care to furnish and deliver continuous service and a sufficient
quantity of gas to customers, but does not guarantee continuity of service or sufficiency of
quantity. The City shall not be liable for any damage caused by interruption of service, if the
interruption of service is caused by an act of God, Fire, Strikes, riots, war, or any other cause
that is beyond the City’s control.
3. Request for Service
A qualifying customer may request service under this schedule for more than one account or
meter if the accounts are located 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. Changing Rate Schedules
Customers may request a rate schedule change at any time to any applicable City of Palo
Alto full-service rate schedule. Customers served under this rate schedule may elect Gas
LARGE COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-3
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7x-1-20092010
Supersedes Sheet No G-3-3 dated 117-1-2008 2009 Sheet No G-3-3
Direct Access at any time.
{End}
CITYOF PALO ALTO
UTILITIES
EXCERPTED DRAFT MINUTES OF UTILITIES ADVISORY COMMISSION
Meeting of November 3, 2010
ITEM 2: ACTION: Proposed Change to Compressed Natural Gas Rate Schedule G-10 and G-3 Effective
February 1, 2010
Senior Resource Planner Ipek Connolly was present to take questions from the Commissioners.
Commissioner Keller asked for an explanation of the range of $0.10 to $2.00/therm for the commodity
charge in Rate Schedule G-10. Connolly explained that the range is given to cover the large range of
potential future gas market prices that are passed through to the customer.
Commissioner Melton questioned the need to involve two departments in setting a rate for the public.
Director Fong explained that Public Works department is the owner/operator of the Compressed Natural
Gas (CNG) facility, and the Utilities Department charge is to ensure that the CNG facility has natural gas
and that the Utility Department recovers the costs of the natural gas.
Commissioner Cook expressed concern that the requirement for training sessions to be certified to fuel a
vehicle was removed from the revised G-10 rate schedule. Connolly explained that it was removed
because it does not belong with the rate schedule.
ACTION: Commissioner Melton made a motion to recommend Council approval of the changed rate
schedules. Commissioner Cook seconded the motion. The motion carried unanimously (7-0).
COMPRESSED NATURAL GAS SERVICE
UTILITY RATE SCHEDULE G-10
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 73-1-20092011
Supersedes Sheet No. G-10-1 dated 7-1-20082009 Sheet No.G-10-11
A.APPLICABILITY:
This schedule applies to the sale of natural gas to the City-owned compressed natural gas (CNG) at
the City-owned natural gas fueling stations to customer who use CNG for fueling CNG vehicles.. at
the Municipal Service Center in Palo Alto
B.TERRITORY:
Applies to locations withinlocation at the service area of theMunicipal Service Center in City of Palo
Alto.
C.RATES:
Per
GasolineService
Per Therm Gallon Equivalent
Monthly Customer Charge:$55.25
Per Therm Charges (To be added to Customer Charge)Per Therm
Commodity Charge $1.08 $1.25
(Monthly Market Based)$0.10-$2.00
For billing purposes, the number of gallons will be complied from a Summary of Transactions
recorded by the dispensing unit for the customer during the month.
Administrative Fee ...................................................................................................$0.0227
PG&E Local Transportation .....................................................................................$0.0212
D.SPECIAL CONDITIONS
1.Service under this schedule is subject to discontinuance in whole or in part in case of actual or
anticipated shortage of natural gas resulting from insufficient supply, inadequate transmission or
delivery capacity of facilities.
2.Service under this schedule is provided only from a designated City fueling station which will
deliver CNG at approximately 3,000 pounds per square inch (PSI).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.
COMPRESSED NATURAL GAS SERVICE
UTILITY RATE SCHEDULE G-10
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 73-1-20092011
Supersedes Sheet No. G-10-1 dated 7-1-20082009 Sheet No.G-10-12
3.Individuals responsible for fueling a Natural Gas Vehicle shall be required to complete training
sessions to be certified to fuel a vehicle. Each individual must sign and date the Certificate of
Instruction for Fueling Natural Gas Vehicle.
4.Customers requesting to take service under this rate schedule are required to sign a Compressed
Natural Gas Agreement before commencing service.
5.If required by local or federal law, assessed applicable taxes shall be added to charges shown in
this rate schedule.
(A)Commodity Charges
The commodity charge is based on the monthly natural gas bidweek price index for
delivery at PG&E Citygate, accounting for delivery losses to the customer’s meter. The
commodity charge will fall within the minimum/maximum range set forth in Section C.
(B)Administrative fee
The Administrative fee is equal to the allocable administrative and overhead costs
incurred by the City in providing the gas service.
(C)PG&E Local Transportation
PG&E Local transportation charge is equal to the cost of transporting gas from the
PG&E’s City Gate to the Palo Alto City Gate.
{End}
LARGE COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-3
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 73-1-20092011
Supersedes Sheet No G-3-1 dated 117-1-20082009 Sheet No G-3-1
A.APPLICABILITY:
This schedule applies to service for large commercial customers who use at least 250,000 therms
per year at one site and have retained gas direct access eligibility. This schedule also applies to
City owned generation facilities.
B.TERRITORY:
This schedule applies anywhere the City of Palo Alto provides natural gas service.
C.UNBUNDLED RATES:Per Service
Monthly Customer Charge:$311.00
Commodity Rate: (To be added to Customer Charge)
Per Therm
Supply Charges:
1.Commodity Charge (Monthly Market Based)........................................$0.10-$2.00
2.Administrative Fee .......................................................................................$0.0227
3.PG&E Local Transportation .........................................................................$0.0212
Distribution Charge:
1.Palo Alto Local Distribution .........................................................................$0.2884
D.SPECIAL NOTES:
1.Calculation of Cost Components
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.
(A)Commodity Charges
LARGE COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-3
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 73-1-20092011
Supersedes Sheet No G-3-2 dated 117-1-20082009 Sheet No G-3-2
The commodity charge is equal to the City's weighted average cost of gas
calculated at the PG&E City Gate for gas purchased by the City at first of the
month and daily market prices for that month. The commodity charge is based on
the monthly natural gas bidweek price index for delivery at PG&E Citygate,
accounting for delivery losses to the customer’s meter. The commodity charge
will fall within the minimum/maximum range set forth in Section C and include
the cost of transporting the gas to the PG&E City Gate..
(B)Administrative fee
The Administrative fee is equal to the allocable administrative and overhead costs
incurred by the City in providing the gas service.
(C)PG&E Local Transportation
PG&E Local transportation charge is equal to the cost of transporting gas from
the PG&E’s City Gate to the Palo Alto City Gate.
2.Special Conditions
Service under this schedule is subject to discontinuance in whole or in part, for
operational reasons, or if the City experiences supply or capacity shortages. The City
will exercise reasonable diligence and care to furnish and deliver continuous service and
a sufficient quantity of gas to customers, but does not guarantee continuity of service or
sufficiency of quantity. The City shall not be liable for any damage caused by
interruption of service, if the interruption of service is caused by an act of God, Fire,
Strikes, riots, war, or any other cause that is beyond the City’s control.
3.Request for Service
A qualifying customer may request service under this schedule for more than one account
or meter if the accounts are located 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.Changing Rate Schedules
Customers may request a rate schedule change at any time to any applicable City of Palo
Alto full-service rate schedule. Customers served under this rate schedule may elect Gas
Direct Access at any time.
{End}
EXCERPTED DRAFT MINUTES OF UTILITIES ADVISORY COMMISSION
Meeting of November 3, 2010
ITEM 2: ACTION: Proposed Change to Compressed Natural Gas Rate Schedule G-10 and G-3 Effective
February 1, 2010
Senior Resource Planner Ipek Connolly was present to take questions from the Commissioners.
Commissioner Keller asked for an explanation of the range of $0.10 to $2.00/therm for the commodity
charge in Rate Schedule G-10. Connolly explained that the range is given to cover the large range of
potential future gas market prices that are passed through to the customer.
Commissioner Melton questioned the need to involve two departments in setting a rate for the public.
Director Fong explained that Public Works department is the owner/operator of the Compressed Natural
Gas (CNG)facility,and the Utilities Department charge is to ensure that the CNG facility has natural gas
and that the Utility Department recovers the costs of the natural gas.
Commissioner Cook expressed concern that the requirement for training sessions to be certified to fuel a
vehicle was removed from the revised G-10 rate schedule. Connolly explained that it was removed
because it does not belong with the rate schedule.
ACTION:Commissioner Melton made a motion to recommend Council approval of the changed rate
schedules. Commissioner Cook seconded the motion. The motion carried unanimously (7-0).
ATTACHMENT F
FINANCE COMMITTEE – MEETING
EXCERPTED DRAFT MINUTES OF DECEMBER 7, 2010
ITEM 2: ACTION: Adoption of a Resolution Adopting Changes to Utility Rate Schedules G-
10 and G-3 of the City of Palo Alto Utilities Rates and Changes Pertaining to Gas Rates
Valerie Fong, Utilities Director said that there was no formal presentation but that she and Ipek
Connolly, Senior Resource Planner, were both available to answer any questions the Committee
may have.
Chair Schmid asked if the rate schedule was for both the City itself and private customers.
Ipek Connolly, Senior Resource Planner said it was not. It was a change from a retail rate
schedule to one applicable to sales from the Utilities Department to the Public Works
Department.
Ms. Fong said there was one compressed gas facility at the Municipal Service Center used by
various City crews. Palo Alto Unified School District also has access to it. Public Works is the
purchaser and passes on the retail rate to the users.
Chair Schmid said that a citizen had reminded him that the City said they would open the facility
up to public use.
Ms. Fong said Public Works Staff would be better qualified to that question.
Chair Schmid said there were two rates, G10 & G3. He asked what the difference was to the
customers.
Ms. Connolly said G3 was the custom rate for large customers. The G3 rate schedule was
coming forward because the commodity cost definition has a slight incorrect statement. This
was a language correction, otherwise no change.
Chair Schmid asked why a customer would use the G3 schedule instead of the G10 schedule.
Ms. Connolly said they are large customers. G10 was for Compressed Natural Gas.
Ms. Fong said larger more sophisticated customers are usually G-3.
MOTION: Council Member Scharff moved, seconded by Espinosa, that the Finance Committee
adopt a Resolution amending the Utilities Rate Schedules G10 and G3 of the City of Palo Alto
Utilities rates and charges pertaining to gas rates.
MOTION PASSED: 3-0, Klein absent.
City of Palo Alto (ID # 1301)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 2/7/2011
February 07, 2011 Page 1 of 8
(ID # 1301)
Title: Approval of Art Center Renovation Agreements
Subject: Approval of a Construction Funding Agreement in an Amount Up to $2
Million between the City of Palo Alto and the Palo Alto Art Center Foundation
For Upgrades to the Palo Alto Art Center Renovation Project (PF-07000, Art
Center Electrical and Mechanical Upgrades); Approval of Amendment No. Three
to Contract No. C08126592 between the City of Palo Alto and the Palo Alto Art
Center Foundation to extend the term of the agreement and increase the scope
of work to Permit Reimbursement in an Amount Not to Exceed $142,432
From: City Manager
Lead Department: Community Services
Recommendation
Staff recommends that Council:
1.Approve and authorize the City Manager or designee to execute a construction
funding agreement between the City of Palo Alto and the Palo Alto Art Center
Foundation in substantially the form of Attachment A that establishes the financial
responsibilities of both parties as related to capital improvements of the Palo Alto Art
Center.
2.Approve and authorize the City Manager or designee to execute Amendment No.
Three to Contract No. C08126592 with the Palo Alto Art Center Foundation in
substantially the same form as Attachment B to extend the term of the agreement
from March 31, 2010 to June 1, 2011 and to increase the scope of work to include
design for Deferred Maintenance Improvements and bid services in an amount not to
exceed $142,432.
Background
The Palo Alto Art Center Foundation (Foundation) has played an integral role in the support and
operation of the Palo Alto Art Center (PAAC) since its inception in 1973. On October 4, 2010,
this longstanding relationship was reinforced through the adoption of a public/private partnership
agreement (CMR:350:10).
This construction funding agreement represents more than a decade worth of work, discussion,
and Council action toward the goal of a renovated Palo Alto Art Center facility. Beginning with
a January 19, 1999 letter to the Council, the Foundation confirmed its intent to initiate
discussions on the subject of a public/private partnership to renovate and expand the Palo Alto
Art Center in order to leverage the City’s deferred maintenance funds
February 07, 2011 Page 2 of 8
(ID # 1301)
The 28,000 square foot Art Center facility and its building infrastructure and systems have not
been significantly upgraded since the facility was constructed in 1951 as Palo Alto’s City Hall.
The only major repairs made to the facility have been seismic improvements in 1987. In 1999,
the Palo Alto Art Center Foundation began to address the need for renovations proactively by
focusing on two programmatic concerns and facility challenges: 1) the need for upgrades to the
gallery spaces of the Art Center to support the popular exhibition program, and 2) the need for
additional children’s art classrooms and program space to meet the demand in the community. In
March, 1999, the Palo Alto City Council approved a proposal from the Palo Alto Art Center
Foundation to explore the development of a public/private partnership that would make possible
a capital campaign to expand and renovate the Art Center.
Master Planning Process
In March 2000, the Foundation received $50,000 from the David and Lucile Packard Foundation
and the Non-Profit Facilities Fund to conduct a facility master planning process that was
matched by $50,000 from the City. The resulting Palo Alto Art Center Programming Report was
completed in 2001 (CMR:438:01) by architect David Robinson. This programming report
detailed the use of Art Center spaces as defined by current program needs and outlined an
improvement plan addressing the Art Center’s most critical facility requirements.
In August 2001, a Joint Site Planning Committee was convened with the goal of developing a
site design that would allow the Main Library and the Art Center to expand while addressing the
limitations and opportunities offered by the site, neighborhood considerations, and the desires of
community stakeholders. In September 2001, the Art Center Foundation received a second
$50,000 grant request from the David and Lucile Packard Foundation that was matched by the
City (CMR:226:02). Using these funds, the Foundation contracted with the Mark Cavagnero
Associates in association with SWA Group to develop the joint site plan. The resulting Site
Planning Study for the Palo Alto Main Library and Art Center was completed on February 8,
2002. A Public Draft EIR of the site was prepared for the City of Palo Alto by Thomas Reid
Associates and completed on April 17, 2002.
In 2002, Mark Cavagnero Associates continued work on the master plan and conceptual design
for the Palo Alto Art Center and site. All plans, reports, and surveys were reviewed and approved
by City boards and commissions. The plan was completed on June 14, 2002 and approved by
Council. A Memorandum of Understanding was approved unanimously by Council at its July 15,
2002 meeting (CMR:340:02), describing the City’s commitment to contribute $5M to fund a
fund set up through a public/private partnership over five years. This MOU was intended to go
into effect upon successful passage of a library bond measure in November, 2002. However, the
bond measure was ultimately unsuccessful.
In the spring of 2003, the Foundation Board unanimously voted to commit to the implementation
of the master plan for the Art Center. Supported by a $10,000 grant from the Non-Profit Finance
Fund, the Foundation worked with fundraising and organizational development consultants to
prepare for the possibility of a future capital campaign.
February 07, 2011 Page 3 of 8
(ID # 1301)
In 2005, the Foundation contracted with Mark Cavagnero Associates to develop a phased
approach to complete the master plan. The first phase of building renovations included creation
of a Children’s Wing, improvements to the existing gallery space, and the replacement of
mechanical and electrical systems. Based on cost estimates developed by Mack 5, the
Infrastructure Management Plan allocation for the Art Center Electrical & Mechanical Upgrade
(Capital Improvement Program Project PF-07000) was readjusted.
Foundation’s Capital Campaign and Letter of Intent
In 2006, the Foundation Board gave final approval to move forward with a capital campaign to
raise funds for the Foundation portion of the project. In June 2006, the Foundation contracted
with Netzel Associates to conduct a capital development feasibility study. Netzel presented its
report to the Foundation Board on October 16 and the Board voted to accept Netzel’s
recommendation to move forward with the capital campaign for the Art Center renovation. The
Foundation Board then hired Netzel as its capital campaign counsel. At its December 13, 2006
meeting, the Foundation Board voted to conduct a 26-month capital campaign to raise the
necessary funds.
On April 10, 2006, a colleague’s memo was approved by the City Council directing City staff to
work with the Art Center Foundation in drafting a Memorandum of Understanding to expand and
renovate the Art Center as a public/private partnership, committing $1.74M from the City’s
Infrastructure Improvement program.
On July 9, 2007, the Foundation formally approached the City to create a public/private
partnership for the renovation of the Art Center with a Letter of Intent that was approved by
Council (CMR:288:07). This Letter outlined mutually acceptable terms and conditions for the
collaboration between the City and the Foundation for construction of improvements and
alterations to the Art Center.
In September 2007, the Foundation entered into an agreement with Mark Cavagnero Associates
to: design the project through schematic design and design development, submit preliminary
estimates of construction costs based on schematic design, prepare construction documents, and
assist in the awarding and preparation of contracts for construction.
Design Agreement
In March 2008, the Council approved a Design Agreement with the Foundation, in the amount of
$290,000, allowing for the City’s payment to the Foundation of the City’s portion of the
schematic design, design development, construction documents, bid, and construction phases of
the project (CMR:107:08). The City’s financial responsibility, as specified in Capital
Improvement Project PF-07000 (Art Center Electrical and Mechanical Upgrades), is to replace
original mechanical and electrical equipment and systems to meet current occupancy need,
provide code compliance, and optimize operation and energy efficiency.
On December 15, 2008, Council approved Amendment No. One to Contract Number C08126592
with the Foundation in the amount of $78,580 for the Planning and Design Phase for the
Renovation and Capital Improvements to the Palo Alto Art Center, Capital Improvement
Program Project PF-07000. Amendment No. One addressed scope increases to the design
February 07, 2011 Page 4 of 8
(ID # 1301)
development phase due to new green building requirements, accessibility and seismic code
requirements, hazardous materials testing and removal, and determination of the extent of
required electrical system upgrades (CMR:465:08).
On March 16, 2009, Council approved Amendment No. Two to Contract Number C08126592
with the Foundation in the amount of $6,249 for a Total Not to Exceed Amount of $374,829 for
the Development of Construction Documents for the Renovation and Capital Improvements to
the Palo Alto Art Center, Capital Improvement Program Project PF-07000 (CMR:168:09). This
Amendment requested an increase of $6,249 along with the reallocation of $72,500 previously
designated for bid and construction phase services to be applied to additional services funding
for completion of the construction document phase only. This brought the total City expense
through the construction documents phase to $374,829. These costs were related to the increased
project scope identified during the design development phase. Amendment No. Two also
changed the scope of the agreement between the City of Palo Alto and the Foundation to include
design services only, and exclude any payment for bid and construction phase services. In
addition, the Amendment extended the term of the agreement from March 31, 2009 to March 31,
2010 to allow time for the completion of construction documents.
At the time the Design Agreement between the City and the Foundation was initiated, the
Foundation intended to manage the project through all phases of design and construction. The
City’s portion of the consultant fees for all phases of the project included schematic design,
design development, construction documents, bid and construction administration and was
awarded with that agreement. During design development, the City’s portion of the project scope
became a larger percentage of the overall project, and more technically involved. As a result of
this change, the Foundation’s and City’s staffs recommended that, and received Council approval
for, the City managing the bid and construction phases (CMR:168:09). Subsequently, City staff
determined that it would be more prudent and efficient for the Foundation to maintain its
agreement with the architects for the bid documentation—this would ensure that the project
could continue in a timely manner, preventing unnecessary delays. The City would then initiate
its own agreement with the architect for the construction administration phase of the project.
Construction Funding Agreement
Implicit in these decades-long actions and communications has been the development of a
Construction Funding Agreement whereby the Foundation will contribute a sizable amount of
money to fund a large portion of the renovations and upgrades. The terms of the Foundation’s
funding and the duties and obligations of the parties during the bid and construction phases are
set forth in this Construction Funding Agreement (Attachment A).
Similar agreements have been developed for the Friends of Heritage Park for the design,
construction and installation of playground facilities and other improvements at Heritage Park
and for the Friends of Lytton Plaza Park for the design, construction, and installation of
improvements at Lytton Plaza. This agreement differs from these agreements in that the City will
manage the bid and construction of the project. A precedent to this agreement can be found in the
agreement between the City of Palo Alto and the Palo Alto Library Foundation and the Friends
of the Palo Alto Library for funding the Palo Alto Children’s Library Improvements and
Expansion Project (CMR:142:04).
February 07, 2011 Page 5 of 8
(ID # 1301)
Discussion
Art Center Facility Improvements:
The City and the Foundation acknowledge each other’s needs to make various building
improvements to the Art Center facility and recognize the financial and logistical benefits to
coordinate and execute these building improvements together under one project. The City’s
scope of work includes mechanical, electrical, and accessibility upgrades to the facility, while the
Foundation’s scope of work includes the creation of a Children’s Wing and an upgrade of the
exhibition galleries. While the scope of City-sponsored work differs from the Foundation-
sponsored work, both Parties agree that it will be more efficient, cost-effective, and less
disruptive to the community to have the work completed concurrently.
In addition to the abovementioned electrical, mechanical and Children’s Wing improvements,
the City will also now add deferred-maintenance items to the project such as a new roof, new
gutters, new downspouts, seismic upgrade to roofing envelope, exterior painting, new carpets,
additional interior painting, termite treatment and dry rot repairs, new window safety glazing,
and exterior lighting improvements. While these items will increase the design and construction
fees, they will result in an overall cost-savings by including them as part of a larger project and
by making these repairs now, when the construction climate is favorable. It will also eliminate
future construction disruption to the Art Center. The additional design costs for deferred
maintenance related items are marginal enough that it can be absorbed into the original CIP
project, PF-07000. The roof, which is the most costly of the deferred maintenance items, had
been scheduled for replacement in FY2013-2014, shortly after completion of the Art Center
rehabilitation project. Funding for the roof will be moved from CIP PF-14001 ($200,000) into
PF-07000. The original funding for the roof replacement was underestimated. Roofing
replacement is now estimated at $320,000. The balance of the roof replacement and funding for
other, non-roofing items, would be paid from the Infrastructure Reserve. Staff plans to return to
Council at the time of construction to request that these additional funds be transferred into the
project, if needed. The unfunded cost is estimated at $560,000, which includes a seismic upgrade
to the roof that was not originally included in the CIP PF-14001, Roofing Replacement. The
seismic work is desirable in order to provide better protection for the building and its occupants
and will be easier to accomplish now that the roofing is part of a larger project. In addition, the
City will be adding a 1% for public art as part of the overall Art Center renovation project. The
current package will be used for permitting in order to expedite timing, with the deferred
maintenance items being added to the package as revisions.
Temporary Main Library:
The Art Center auditorium was identified as the preferred location for a temporary library during
the renovation of the adjacent Main Library (CMR:435:10). The auditorium was not part of the
Art Center improvement project, but will have improved lighting, carpeting and other amenities
added as part of the temporary library work. Combining the library’s auditorium upgrade with
the rest of the Art Center project will result in a better price for the auditorium work and will not
involve the disruption of shutting off the auditorium for temporary library conversion work
shortly after opening the new Art Center. Having the same electricians, painters and other trades
February 07, 2011 Page 6 of 8
(ID # 1301)
for both the auditorium and the Art Center work will result in a better work product and require
less staff oversight than managing two separate contractors.
In order to keep pace with the Art Center construction schedule, design contingency funds from
the Main Library will be used to pay for the initial design of the temporary Main Library. Staff
will return at a later date with a contract amendment with Group 4 Architecture to secure
additional funding for the auditorium work so that the Main Library contingency fund can be
reimbursed.
Construction Funding Agreement
The Construction Funding Agreement (Attachment A) facilitates the Foundation’s funding of a
significant portion of the capital costs for the project and outlines the administrative, reporting,
and financial requirements of both parties. The Construction Funding Agreement between the
City and the Foundation provides that the City will pay 73.1% of the construction costs and the
Foundation will pay 26.9%, modified in several ways. First, the Foundation share shall not
exceed $2,000,000. Second, any change orders (additional, unforeseen work) exceeding $25,000
shall be paid by the party whose project portion to which the change order relates, with the
overriding qualification that the Foundation share not exceed $2,000,000. As outlined in this
Agreement, the City will manage the construction project. Construction management services
have also been added to the cost-sharing agreement due to staffing shortfalls related to the
Measure N Library and Community Center bond project workload. The City’s portion of the
funding for the renovation was approved in the 2006-07 budget (Capital Improvement Program
Budget, Art Center Electrical and Mechanical Upgrades, PF-07000) and currently has
$3,856,000 of funding appropriated. The Foundation has successfully raised $1,250,000 and has
a business plan to raise the additional funds required for the Foundation’s portion of the Project
by the completion of construction. The Foundation currently has $2,000,000 on hand in capital
and other funds.
In order to ensure successful communications throughout construction, this agreement requires
the Foundation to establish an Administrator to coordinate all matters related to the agreement.
As the project manager, the City will provide quarterly reports to the Foundation’s Administrator
outlining the work performed and the amounts paid by the City to contractors, consultants, and
other third parties in conjunction with the project. As outlined in this agreement, the Foundation
will participate with the City in establishing the minimum contractor qualifications for the
project.
Amendment No. Three to Contract No. C08126592:
This Amendment (Exhibit B) extends the timeline and expands the scope of the Design
Agreement between the Foundation and the City. Because Amendment No. Two expired in
March 2010, extending the agreement terms to June 1, 2011 ensures the contract remains current.
Construction documents for the project are currently undergoing plan check as part of the
Building Permit issuance process. Scope of the design work needs to be expanded to include
February 07, 2011 Page 7 of 8
(ID # 1301)
design for the Deferred Maintenance aspects of the project. As outlined in the Agreement, this
expense will be incurred by the City. In addition, scope of the design work needs to be expanded
to include bid documentation. As outlined in the Agreement, this expense will be split between
the City and the Foundation based upon the cost-sharing ratio determined in the Construction
Funding Agreement.
Timeline, Resource Impact, Policy Implications, Environmental Review (If
Applicable)
Resource Impact:
Funds for this project are available in the Capital Improvement Program Project PF-07000, Art
Center Electrical and Mechanical Upgrades. In addition, $200,000 in funding will be transferred
into the project from PF-14001, Roofing Replacement, as part of the mid-year budget process .
Staff may return to council at the time of the award of the construction contract in order to cover
any increased costs due to the inclusion of deferred maintenance items into the project.
Policy Implications:
This agreement is consistent with and furthers the intention of Comprehensive Plan Policy C-1:
Encourage the creation of partnerships within the Mid-Peninsula or the greater Bay Area to seek
effective solutions to shared problems and community service needs and Program B-3: On an
ongoing basis, evaluate opportunities for City involvement in public/private partnerships
including public investment in infrastructure and other improvements, siting of public art, and
modification of land use regulations and other development controls and L-61: Promote the use
of community and cultural centers, libraries, local schools, parks, and other community facilities
as gathering spaces. Ensure that they are inviting and safe places that can deliver a variety of
community services during both daytime and evening hours.
Adding deferred maintenance to the project is consistent with the City’s goal to reduce the
infrastructure backlog. Deferred maintenance items from the Art Center will be removed from
the City’s backlog list by the Infrastructure Task Force.
Timeline:
Staff relocation to the Lucie Stern Center basement and other locations throughout the City is
expected to occur in the Spring of 2011, followed shortly thereafter by the removal of any
hazardous materials. Construction on the major renovations, including the temporary library in
the auditorium, is expected to begin in the summer of 2011 and be completed in the summer of
2012. Construction on the Main Library is expected to begin at the end of 2012, shortly after the
opening of the new Mitchell Park Library and Community Center.
Environmental Review:
The proposed project is subject to environmental review under provisions of the California
Environmental Quality Act (CEQA). An Environmental Impact Report was adopted June 24,
2002 for the Newell/Embarcadero Civic Facilities Expansion Program, which includes this
proposed project.
ATTACHMENTS:
February 07, 2011 Page 8 of 8
(ID # 1301)
Attachment A Art Center Construction Funding Agreement (DOC)
Attachment B Amendment No 3 to Contract with Art Center Foundation (DOC)
Prepared By:Karen Kienzle, Manager Art Center
Department Head:Greg Betts, Director, Community Services
City Manager Approval: James Keene, City Manager
1
CONSTRUCTION FUNDING AGREEMENT BETWEEN THE CITY OF
PALO ALTO AND THE PALO ALTO ART CENTER FOUNDATION FOR
UPGRADES TO THE PALO ALTO ART CENTER RENOVATION PROJECT
THIS AGREEMENT (“Agreement”) dated, ______, 2011 (the “Effective Date”),
is entered into by and between the CITY OF PALO ALTO, a California chartered municipal
corporation (the “City”) and the PALO ALTO ART CENTER FOUNDATION, a corporation
organized under the Nonprofit Public Benefit Corporation Law of the State of California (the
“Foundation”) (individually, a “Party” and, collectively, the “Parties”), in reference to the
following facts and circumstances:
RECITALS
A.CITY owns and operates the Palo Alto Art Center, an approximately
28,000-square foot building and surrounding premises, located at 1313 Newell Road, Palo Alto,
California (collectively, the “Facility”).
B. The Parties have had a long history of collaboration and partnership. The
Foundation has played an integral role in the support and operation of the Palo Alto Art Center
since its inception in 1973. The most recent expression of partnership is contained in the
Public/Private Partnership Agreement approved by the City Council on October 4, 2010.
C.The Parties mutually desire to make improvements and upgrades to the
Facility with the City managing the construction project and the Foundation funding a significant
portion of the Work.
D.The CITY has identified needed infrastructure upgrades and renovations
for the Facility including seismic upgrades; plumbing, electrical, and mechanical upgrades;
improved facilities for persons with disabilities; deferred maintenance; lighting; and interior
painting work (the “City-Sponsored Work”). In addition, the Foundation has identified certain
improvements that would further enhance the community benefit of the Facility. This work
includes renovation of the sculpture garden; modification of classrooms, kitchen and hallway to
create a children’s wing; installation of specialty equipment and millwork; construction of a
children’s entry courtyard, parking and outdoor classroom; lighting upgrades in galleries, lobby
and meeting room; and floor finishes in various locations (collectively “Foundation-Sponsored
Upgrades”). The Parties agree that it will be more cost effective and less disruptive to the
community if this additional work is performed in conjunction with the City-Sponsored
infrastructure work. The City-Sponsored Work proposed by the City and the Foundation-
Sponsored Upgrades described in this paragraph shall be collectively identified in this
Agreement as the “Project” and summarized in Exhibit A. A more detailed description of the
City-Sponsored Work and Foundation-Sponsored Upgrades is contained in Exhibit F. The work
to be performed and the materials to be incorporated into the Facility are referred to as the
“Work.”
2
E. Capital Improvement Program Project, Art Center Electrical and
Mechanical Upgrades, PF-07000, was approved with the 2006-07 budget and currently has
$3,856,000 of funding appropriated. The infrastructure elements contained in the approved CIP
are included in the Project.
F.FOUNDATION has successfully raised One Million Two Hundred Fifty
Thousand Dollars ($1,250,000) and has pledge receivables and unrestricted cash sufficient to pay
the additional $750,000 required for the Foundation’s portion of the Project by April 2012.
G. Pursuant to an agreement dated on or about September 27, 2007, as amended,
the Foundation retained Mark Cavagnero Associates (“MCA”) to prepare, among other things,
detailed construction drawings for the Project (the “Design Contract”). A copy of the Design
Contract (including all amendments thereto) is attached as Exhibit B. In accordance with an
agreement between City and Foundation dated March 10, 2008, the City funded a portion of the
design work (the “Design Cost Sharing Agreement”);
H.In accordance with Chapter 2.30 of the Palo Alto Municipal Code, the
City plans to publicly bid the Project;
I.CITY and FOUNDATION desire to enter into this Agreement to set forth
the terms and conditions for funding and management of the construction phase of the Project.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing recitals and the following
covenants, terms, conditions and provisions, the Parties agree:
SECTION 1.RECITALS
1.1. Incorporation. The above recitals are hereby incorporated into this Agreement.
SECTION 2.TERM
2.1 Duration. This Agreement shall commence on the Effective Date and shall
continue until the later of (1) the completion of the construction of the Project or (2) December 1,
2012, unless terminated earlier pursuant to Section 5 (“Termination”).
2.2 Project Schedule. The Parties agree that the Project will proceed in accordance
with the schedule of milestones set forth in Exhibit D attached to this Agreement (the “Project
Schedule”). The City promptly shall notify the Foundation of any delays in meeting the Project
Schedule.
SECTION 3.RESPONSIBILITIES OF FOUNDATION
3.1 Assignment of Design Contract. The Parties anticipate that the Foundation shall
continue to retain MCA to perform services under the existing Design Contract following the
3
execution of this Agreement. Such services would expand the existing scope of work for which
the Foundation has retained MCA (i.e., completion of the construction drawings) to include the
preparation of bid documentation and related services (the “Additional MCA Bid Services”) and
revisions to the construction drawings to cover work that the City shall perform related to
deferred maintenance of the Facility (the “Additional MCA Deferred Maintenance Services”).
The Additional MCA Bid Services and the Additional MCA Deferred Maintenance Services are
referred to collectively as the “Additional MCA Services.” The Parties anticipate that the City
will reimburse the Foundation for the full cost of the Additional MCA Deferred Maintenance
Services. The Parties will share the costs of the Additional MCA Bid Services in proportion to
the Foundation’s Percentage Share and the City’s Percentage Share set forth in Section 6 of this
Agreement. Upon not less than 10 days written request by the City, FOUNDATION shall assign
to the City its rights to all existing plans and specifications prepared by MCA and all warranty
rights and claims that it may have against MCA under the Design Contract (the “Assigned
Rights”). The assignment of the Design Contract shall be in the form of Exhibit E to this
Agreement. Notwithstanding such assignment, the Foundation shall continue to have the right
and opportunity to participate in meetings and other communications between the City and MCA
staff regarding the Project and to provide input to the City. If this Agreement is terminated in
accordance with Section 5, then the City shall assign all of its rights under the Design Contract
back to the Foundation.
3.2.Construction Contribution. Subject to the terms and conditions in this
Agreement, FOUNDATION shall make a contribution (the “Foundation’s Contribution”) to the
CITY to fund the construction costs and construction services associated with the Foundation-
Sponsored Upgrades (the “Foundation’s Project Costs”) in accordance with the initial Project
budget set forth on Exhibit F to this Agreement (the “Initial Project Budget”). The Foundation’s
Contribution shall be in an amount not to exceed $2,000,000, and shall be paid to CITY in
accordance with the Deposit Schedule set forth in Exhibit C of this Agreement. Project
construction costs are all those costs incurred by the CITY in connection with the Project during
the construction phase, including, but not limited to: labor, equipment and materials costs
associated with demolition and construction; utility permit and inspection fees; specialized
inspection and testing services and other specialized consultant services. Construction services
are the construction administrative and construction management services described in Section
4.2. Construction costs shall not include the costs of CITY employees assigned to work on the
Project. FOUNDATION shall be responsible for the Project construction costs related to the
Foundation-Sponsored Upgrades, as set forth in the Initial Project Budget. Notwithstanding
anything in this Agreement to the contrary, in no event shall the Foundation’s share of the cost of
the Project exceed Two Million Dollars ($2,000,000) (the “Foundation’s Maximum
Contribution”). If the Foundation’s Project Costs exceed the Foundation’s Maximum
Contribution, the parties reserve the right to amend this Agreement to permit an additional
contribution by the Foundation. In addition, if there are delays in completing any of the
milestones set forth in the Project Schedule that were targeted to be completed prior to the date
that the Foundation is required to pay any installment of the Foundation’s Contribution, then the
date for such contribution shall be extended by a like number of days.
3.3. Evidence of Funds Available. No later than forty five (45) calendar days prior to
the date set for CITY Council award of a construction contract for the Project, FOUNDATION
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shall provide evidence satisfactory to the CITY Manager of the funds the organization has on
hand for the Project. The Parties agree that a current bank statement stating the Foundation's
funds on hand shall satisfy this requirement.
3.4 Selection of Administrator. FOUNDATION shall designate a person to serve as
the organization’s administrator for purposes of this Agreement (“Administrator”). The
Administrator shall be the agent of the Foundation and in such capacity shall be responsible for
receipt of all notices under this Agreement, causing funds to be deposited with CITY in
accordance with the Deposit Schedule, and coordinating on behalf of the Foundation all matters
related to this Agreement. Upon request, the Administrator shall have the right to receive copies
of all material communications by and among the City, the construction manager, the
construction administrator, the contractor and other consultants and contractors retained in
connection with the Project. FOUNDATION shall provide CITY in writing within fifteen (15)
calendar days of the Effective Date of this Agreement, or such later date as may be agreed to in
writing by all the parties, with the name and contact information for the person the organization
has designated as the Administrator for purposes of this Agreement. The selection of and
authority of the Administrator to act on behalf of the organization shall be evidenced by a
corporate resolution or other official documentation of an action of the Board of Directors, a
copy of which shall be provided to the City. The Foundation may elect to replace the
Administrator by giving written notice to the City at least ten (10) days before the effective date
of such replacement. Such notice shall state the name and contact information of the
replacement Administrator.
3.5 Deposit of Funds with CITY. The Administrator shall deposit funds with the City
for the construction costs and construction services related to the Foundation-Sponsored
Upgrades as set forth in Exhibit C. The deposits shall be made in the form of a wire transfer,
cashier’s check or other financial instrument acceptable to CITY. CITY shall hold the
Foundation’s funds in a segregated interest-bearing account that is not commingled with other
funds and shall only use such funds for construction costs associated with Foundation-Sponsored
Upgrades as listed above. All interest accruing on such funds shall belong to the Foundation.
CITY shall provide the Administrator with quarterly reports of the expenditures of the funds
deposited pursuant to this Section as described in Section 4.4 below. Any modification to
Exhibit C must be approved by the City Council.
SECTION 4.RESPONSIBLITIES OF CITY
4.1 Project Initiation and Completion. CITY agrees to use commercially reasonable
and good faith efforts to initiate construction of the Project by April, 2011 and to complete the
Project by April, 2012 in accordance with the Project Schedule. FOUNDATION acknowledges
and agrees that the Project schedule may be adversely impacted by delays related to factors
outside CITY’s control, including, but not limited to design review, completion of design and
construction drawings, changes in scope, and unforeseen conditions discovered while carrying
out the Project.
4.2 Construction Services.
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4.2.1 Construction Phase Services. City shall contract with Mark Cavagnero
Associates (MCA) for construction services during the bid, construction and close
out phases (“Construction Phase Services”). Foundation shall be responsible to
pay for its share of such Construction Phase Services based in accordance with
the Foundation’s allocated percentage set forth in Section 6. The City will
withdraw the FOUNDATION’S share of the Construction Phase Services from
the funds on Deposit. The City will pay the City’s share of Construction Phase
Services based in accordance with the City’s allocated percentage as set forth in
Section 6.
4.2.2 Construction Management Services. City shall contract with a qualified
firm to provide construction management services during the bid, construction
and close out phases for the on-going daily management and oversight of the
project. The Foundation shall have the right to confer with the City and to provide
input on the construction management firm that is selected, and the City shall
consider such input in good faith. Foundation shall be responsible to pay for its
share of construction management costs based on the percentage allocated to the
Foundation in accordance with the allocation percentage set forth in Section 6.
The City will withdraw the FOUNDATION’S share of the construction
management services from the funds on Deposit. The City will pay the City’s
share of construction management costs based in accordance with the City’s
allocated percentage as set forth in Section 6.
4.3 Project Construction.
4.3.1 Contractor Qualifications. City shall compile a list of minimum contractor
qualifications and bidding requirements and shall submit the list and such requirements to
FOUNDATION for review and comment prior to releasing the bid. The City shall grant
the Foundation a period of not less than ten (10) days after receipt of such qualifications
and requirements during which time the Foundation may review and comment on the
bidding qualifications and requirements. City will consider in good faith the
Foundation’s requests for changes to the bidding qualifications and requirements, and
shall incorporate all reasonable changes requested by the Foundation with respect to such
qualifications and requirements.
4.3.2 Bidding; Selection of Bidder; Construction Contract. Following
finalization of the bidding qualifications and requirements, CITY shall bid the Project in
accordance with the requirements of the Palo Alto Municipal Code. FOUNDATION
acknowledges and understands that the CITY is required to solicit bids for Project
construction and to award the construction contract to the lowest responsive and
responsible bidder. Following the closing of the period during which bids may be
submitted, the City shall notify the Administrator of the names of all contractors who
have submitted bids and shall provide the Foundation with copies of such bids.
Thereafter, at a date and time mutually acceptable to the Parties, the City’s Project
Manager and the Administrator shall meet to review the bids. The Administrator shall
have the right to be accompanied at the meeting by construction, design or similar
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representatives of the Foundation’s choice. The Administrator and such representatives
shall have the right to provide input to the City with respect to the bids, including input
regarding whether the bids of the bidding contractors satisfy the bidding qualifications
and requirements and which of the contractor’s is the lowest responsive and responsible
bidder. The City shall consider in good faith the Foundation’s input regarding the bids
and shall thereafter decide which contractor will be selected as the lowest responsive and
responsible bidder for the Project in accordance with the requirements of the Municipal
Code. The City shall award a Construction Contract in substantially the same form as
Exhibit G. The Foundation and its officers, directors, and employees shall be named as
additional insured parties and indemnitees under the Construction Contract to the same
extent as the City is so named. The City shall cause the Contractor to construct the
Project in accordance with the approved plans and specifications and the Construction
Contract.
4.3.3 Project Changes. As used in this Agreement, the term “change order” shall mean a
written instrument, signed by the City and the Contractor, stating their agreement upon all of the
following: (i) any change in the scope of work; (ii) the amount of the adjustment, if any, in the
guaranteed maximum price (or other compensation to be paid to the Contractor), and (iii) the
extent of the adjustment, if any, in the contractual time period set forth in the General Contract
for completion of the work. If a change or changes in Project design or construction materials,
equipment or methods are required for any reason (as reasonably determined by the City), such
changes shall be documented by a written change order, and City shall review and approve (after
consultation with the Foundation and receipt of the Foundation’s consent, to the extent required
by this Agreement) all change orders for the Project. For all changes related to the Foundation’s
scope of the Project, or any changes that will have a material effect on the program functionality
or aesthetic appearance of any portion of the City-Sponsored Work, CITY shall provide the
Administrator with prior written notice describing the Project change, the reason for the change,
and the cost of the change. The notice shall specify the time period in which the Foundation’s
input or approval is needed. The City shall use best efforts to provide at least 5 business days for
Foundation response. However, the Parties acknowledge that certain change orders of an
emergency nature may need immediate action and that, with respect to such changes, the City
may give less than 5 business days’ notice to the Foundation. If the change is a cost increase
related to the Foundation-Sponsored Work or would have an adverse effect on the program
functionality or aesthetic appearance of the Project, CITY shall obtain approval from
Administrator prior to authorization of work except as provided in the immediately preceding
sentences of this paragraph. The Foundation’s approval right shall only apply to the program
functionality and aesthetic aspects of the change order request and such approval shall not be
unreasonably withheld. The Foundation shall use best efforts to respond within the time period
requested by the City (which time periods shall be consistent with the preceding provisions of
this Section 4.3.3) and if the Foundation does not respond within the time period specified in the
notice, the City will have the right to act on the change order without Foundation authorization.
In addition, the Foundation shall have the right to propose reasonable changes to the scope of the
Foundation-Sponsored Upgrades if the Foundation determines during the course of construction
that such changes are necessary or appropriate; the City shall consider such requests in good
faith and shall endeavor to implement any such changes.
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Subject to the terms and conditions set forth in this Agreement, the Parties’ shall bear the cost of
change orders as set forth in Section 6 of this Agreement. If the cost of change orders for
Foundation Sponsored Upgrades exceeds 25% of the Foundation’s Project Costs, the parties
reserve the right to renegotiate the Foundation’s Maximum Contribution.
The City shall establish and implement a change order control system. The City (either directly
or through the Construction Manager) shall recommend necessary or desirable changes to the
Work and shall manage the change order process by reviewing the requests for changes,
negotiating the Contractor's and subcontractors' proposals, and if it determines that a change
order is warranted, submitting recommendations to the Foundation. The City shall keep the
Foundation informed of all change order requests, whether initiated by the City or the
Contractor, and provide the Foundation with copies of all documentation relating to any change
orders upon request.
4.4.Reporting. The City shall establish, implement and keep full and detailed
accounts and exercise such controls as may be necessary for proper financial management under
this Agreement and the Construction Contract. Such accounting and control systems shall be
consistent with generally accepted accounting principles, consistently applied. Without limiting
the foregoing, The CITY shall keep records of all funds advanced by the Administrator pursuant
to this Agreement and of all expenditures of such funds. CITY shall submit quarterly reports (or
more or less frequently as may be agreed to in writing by the parties) to the Administrator. The
reports shall describe the work performed and amounts paid by the CITY to contractors,
consultants and other third parties in connection with the construction of the Project during the
previous quarter. CITY shall provide the Administrator with a reasonably detailed final report of
all Project construction expenditures within sixty (60) days of completion of the Project, as
evidenced by recording of a Notice of Completion for the Project, or earlier termination of this
Agreement.
4.5 Refunds. If, following completion of the Project, a portion of the amount(s)
advanced to CITY by the Administrator remains unexpended and unencumbered, the CITY shall
return such amount to the Administrator within thirty (30) days after issuance of the final report
pursuant to Section 4.4 above. If the Agreement is terminated as provided in Section 5 below,
Foundation shall be entitled to a refund of their unexpended construction cost, plus a
proportionate share of the balance of shared expense (calculated as provided in Section 6 below),
if any, of the deposits made pursuant to Exhibit C of this Agreement.
4.6 Communications. The City shall keep the Administrator reasonably apprised of
the progress of the Project and any significant events regarding the Project, including the bidding
process, the drafting and negotiating of the Construction Contract, any requests for change
orders, and the construction and close-out of the Project. The Administrator shall be given the
opportunity to attend bi-weekly project meetings with the Contractor, Construction Manager and
City. The Administrator shall communicate any Project input directly to the City and shall not
direct the Contractor or Construction Manager.
4.7 Compliance with Law; Unforeseen Work. The City Sponsored Work includes the
deferred maintenance items set forth in Exhibit F. In addition, the City will comply with all
applicable federal, state and local laws and City department requirements that are implicated by
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the construction of the Project. The City (and not the Foundation) shall be responsible for
defects, deferred maintenance, or other problems at the Facility that are discovered during the
construction of the Project and that must be addressed for any of the following reasons, all of
which shall be part of the City-Sponsored Work: (a) public health and safety or (b) applicable
law requires such conditions to be corrected or otherwise addressed, including without limitation
any costs and expenses associated with the inspection, testing, abatement, containment, removal,
transportation or remediation of hazardous materials that may be discovered during the course of
construction of the Project or that otherwise exist at the Facility, and any costs associated with
compliance with the Americans With Disability Act; (c) dry rot; and (d) termites or other pests.
Nothing in this paragraph shall require the City to perform any work except if such work is
required for the reasons set forth in Sections 4.7 (a) [public health and safety] or (b) [required by
law] of this Agreement. The City will address and correct any such conditions at the City’s sole
cost and expense in a timely manner in coordination with the Project’s construction. For the
purposes of this Agreement, the term “hazardous materials” includes any materials that relate to
the environment or health and human safety or that otherwise defined as hazardous or toxic
under any applicable laws, including but not limited to asbestos and asbestos-containing
materials.
4.8 Permit Fees. Except for Utility permit fees, as part of the City-Sponsored Work, the City
shall be solely responsible for all permit, inspection and similar fees (including plan check fees,
inspection fees, building permit fees and similar fees) relating to the Project, including without
limitation those relating to the Foundation-Sponsored Upgrades. In accordance with City Policy
and Procedure 1-25 regarding Public/Private partnerships, the respective parties shall be
responsible for the utility permit fees attributable to their portion of the Work.
4.9 Other Project Costs. The City shall be responsible for the costs relating to the
Commissioning agent, hazardous materials assessment and remediation, moving, testing and
inspection fees; however, these costs shall not be included for purposes of calculating the cost
share ratio in Section 6.1.
SECTION 5.TERMINATION
5.1 Termination Prior to Award of Construction Contract. FOUNDATION, through
the Administrator, may terminate this Agreement with or without cause at any time prior to the
City’s execution of the Construction Contract for the Project by delivering to the City ten (10)
days advance written notice of election to terminate. The City shall notify the Foundation at
least fifteen (15) days prior to its execution of the Construction Contract that it intends to execute
the Construction Contract. City through the City Manager may terminate this Agreement with or
without cause at any time prior to execution of the Construction Contract for the Project by
delivering to the Administrator ten (10) days advance written notice of election to terminate,
provided that such termination right only may be exercised in either of the following events: (1)
the lowest responsive and responsible bid for construction of the Project exceeds the construction
budget established for the Project; or (2) the City Council, in its sole discretion, has determined
for any reason that construction of the Project should not proceed.
5.2 Termination After Award of Construction Contract. Following execution of the
Construction Contract for the Project, CITY may terminate this Agreement upon ten (10) days
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notice to the Administrator for the following, and only the following, reasons: (1) the estimated
Project costs, as reasonably determined by the CITY, have increased by more than 15% of the
maximum amounts budgeted for the Project by CITY or (2) in the case of a Force Majeure Event
that the City reasonably determines will result in a delay in completing the Project of more than
12 months beyond the originally anticipated completion date or cost increases of more than 15%
of the maximum amounts budgeted for the Project by CITY. Estimated Project costs shall be
determined as the sum of the Construction Contract price, any approved change orders, and any
anticipated change orders that are required to complete the Project. “Force Majeure Event” shall
have the meaning set forth in Section 10. In case of termination under this Section 5.2,
FOUNDATION shall remain responsible for its share of, and CITY may use the funds on deposit
to pay for, the Foundation’s share of construction costs, Construction Phase services and
Construction Management services incurred through the time of termination.
SECTION 6.CALCULATION OF PROPORTIONATE FUNDING
6.1 The Parties have prepared the Initial Project Budget attached to this Agreement as
Exhibit F in an effort to set forth their good faith estimates of the total cost of the Project and the
allocation of such costs between the City (i.e., with respect to the City-Sponsored Work) and the
Foundation (with respect to the Foundation-Sponsored Upgrades), including a contingency
amount of 15% of the anticipated cost of the Work. For purposes of this Agreement and except
as may be modified under Section 6.2 or 6.5, City’s Percentage Share is 73.1% and Foundation’s
Percentage Share is 26.9% as defined by the ratio in Exhibit H of each party’s summary
estimated construction costs including deferred maintenance items as listed in Exhibit F.
6.2 Following receipt of the bids pursuant to Section 4.3, the parties shall work
together to make any necessary or appropriate adjustments or revisions to the amounts allocated
between the City and the Foundation in the Initial Project Budget and shall negotiate in good
faith to agree on such adjustments which may affect the cost sharing ratio described in Section
6.1. If the Parties reach agreement on such allocation, then the revised budget shall supersede
the Initial Project Budget and become the “Project Budget,” and, if necessary, the cost share ratio
shall be modified. If the parties elect not to modify the allocations or are unable to reach
agreement on how to allocate, the cost share ratio set forth in Section 6.1 shall apply. Any
change to the cost share ratio shall be reflected in a written amendment to this Agreement. The
Foundation shall be solely responsible for the costs included within the scope of the Foundation-
Sponsored Upgrades, and the City shall be solely responsible for the costs included within the
scope of the City-Sponsored Work.
6.3 Change Orders.
6.3.1 Change Orders Under $25,000. To the extent that any change orders are
required in connection with the Project, if the change order is $25,000 or less, the
Foundation will pay the Foundation’s Percentage Share and the City will pay the City’s
Percentage Share as described in Section 6.1.
6.3.2 Change Orders Over $25,000. If the change order is in excess of $25,000,
the Foundation shall bear 100% of the cost of all change orders that relate solely to the
Foundation-Sponsored Upgrades, and the City shall bear 100% of the cost of all change
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orders that relate solely to the City-Sponsored Work To the extent that any change
order in excess of $25,000 relates in part to the Foundation-Sponsored Upgrades and in
part to the City-Sponsored Work, the Parties shall work in good faith to determine an
appropriate allocation of the costs of such change order. If the Parties are unable to agree
on such allocation, then the Foundation will pay the Foundation’s Percentage Share and
the City will pay the City’s Percentage Share as described in Section 6.1.
6.4 The Foundation shall be responsible for the Foundation’s Percentage Share of any
shared construction-related costs, including but not limited to construction administrative
services set forth in Section 4.2.1 and construction management services in Section 4.2.2. The
City shall be responsible for the balance of such shared costs.
6.5 The Parties acknowledge that the actual construction of the Project will be
undertaken as a single work of improvement and that during the course of construction it may be
difficult to determine whether portions of the Work at any given time relates solely or primarily
to the Foundation-Sponsored Upgrades or to the City-Sponsored Work. Accordingly, except
with regard to any costs for Work specifically allocated to the City as provided in Section 4.7
(which shall be paid for solely by the City), Section 4.9 (other project costs) and Section 4.3.3
and Section 6.3 with regard to change orders that are specifically allocated to the City or to the
Foundation in accordance with those sections, each disbursement of funds made by the City to
the Contractor or to pay for any other authorized Project expenses shall be allocated between the
City and the Foundation in proportion to the Foundation’s Percentage Share and the City’s
Percentage Share, as the case may be, without regard to whether the disbursement in question
relates solely or primarily to the Foundation-Sponsored Upgrades or the City-Sponsored Work.
If the parties desire to adjust the cost sharing ratio to allocate a lesser percentage to City-
Sponsored Work, this Agreement can be so amended upon approval by the City Manager.
6.6 Nothing in this Section 6 or elsewhere in this Agreement shall constitute a
commitment by the Foundation to be required to pay or otherwise be responsible for any
obligations in excess of the Foundation’s Maximum Contribution.
6.7 Within 90 days after the completion of the Project, the City shall prepare a final
accounting of setting forth the total costs of the Project, including all change orders, and the
respective contributions of the City and the Foundation. To the extent, if at all, that the actual
amount of the Foundation’s share of such costs as determined under this Agreement is less than
the funds paid or contributed by the Foundation, the City shall return such excess amount to the
Foundation within 30 days after such amount has been determined.
SECTION 7. WAIVER
7.1 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 of any other covenant, term, condition or provision.
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SECTION 8.ASSIGNMENT
8.1 The Foundation will not assign, transfer, or convey this Agreement and the
Exhibits without the express written approval of the City, and any such assignment, transfer or
conveyance without the approval of the City will be void and, in such event, at the City’s option,
this Agreement may be terminated upon reasonable notice to the Foundation.
SECTION 9.NONDISCRIMINATION
9.1 As set forth in Palo Alto Municipal Code section 2.30.510, FOUNDATION
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. The Foundation 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 10.FORCE MAJEURE
10.1 A Party will be temporarily excused from the performance or further performance
of any of its covenants or agreements or any terms or conditions that it is obligated to fulfill
hereunder and such Party’s nonperformance shall not be deemed an event of default under this
Agreement for any period to the extent that such Party is prevented, hindered or delayed for any
period of time from performing any of its covenants or agreements, in whole or in part, or any
term or condition it is required to perform or satisfy as a result of an act of God, war, civil
disturbance, court order, or other cause beyond that Party’s reasonable control. The Parties
hereby agree to use reasonable efforts to remedy the effects caused by the occurrence of the
event giving rise to a Party’s temporary nonperformance of its covenants or agreements or any
terms or conditions that it is obligated to fulfill hereunder. A Party will provide notice promptly
to the other Party to the extent that such Party relies on the provisions of this Section to
temporarily excuse its failure to perform any of its covenants or agreements or any terms or
conditions hereunder and shall state therein the facts giving rise to its inability to perform and
what actions that it intends to take to overcome such delay.
SECTION 11.AUDITS; INSPECTION OF RECORDS
11.1 The Foundation will maintain, or caused to be maintained by its accountant or
other agent, if any, books and records relating to funding of the Project subject of this Agreement
during the Term and for three (3) years thereafter. It will permit the City to inspect, audit and
copy, upon thirty (30) days’ prior written notice from the City at any reasonable time during the
Term and for three (3) years after the expiration or earlier termination of the Agreement, the
Foundation’s books and records pertaining to its obligations imposed by this Agreement. The
Foundation will retain such books and records at accessible locations and for at least three (3)
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years after the expiration or earlier termination of this Agreement, whichever occurs later. This
provision will survive the expiration or earlier termination of this Agreement.
11.2 The City will maintain, or caused to be maintained by its accountant or other
agent, if any, books and records relating to funding of the Project subject of this Agreement
during the Term and for three (3) years thereafter. It will permit the Foundation to inspect, audit
and copy, upon thirty (30) days’ prior written notice from the Foundation, at any reasonable time
during the Term and for three (3) years after the expiration or earlier termination of the
Agreement, the City’s books and records pertaining to its obligations imposed by this
Agreement. The City will retain such books and records at accessible locations and for at least
three (3) years after the expiration or earlier termination of this Agreement, whichever occurs
later. This provision will survive the expiration or earlier termination of this Agreement.
SECTION 12.INDEPENDENT CONTRACTOR
12.1 In the construction of the Project and the performance of other duties imposed
upon it by this Agreement, the Foundation acts 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 assume or create
any obligation or responsibility whatsoever, express or implied, on behalf, or in the name of, the
other Party in any manner, or to make 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 13.REPRESENTATIONS AND WARRANTIES
13.1 On the Effective Date, each Party represents and warrants to the other Party that:
(A) it is duly organized, validly existing and in good standing under the laws of the jurisdiction
of its formation; (B) the execution, delivery and performance of this Agreement and the Exhibits
are within its powers, have been duly authorized by all necessary action and do not violate any of
its governing documents, any contracts to which it is a party or any law, rule, regulation, or
order; (C) this Agreement and the Exhibits and any other document executed and/or delivered in
accordance with this Agreement constitutes its legally valid and binding obligation enforceable
against it in accordance with its covenants, terms, conditions and provisions, subject to any laws
relating to bankruptcy, insolvency, and reorganization; (D) it has not filed and it is not now
contemplating the filing for bankruptcy protection and, to its knowledge, there is not an
involuntary proceeding threatened against it which would result in it being or becoming a debtor
under any bankruptcy law; (E) there is not pending or, to its knowledge, threatened against it or
any of its affiliates any legal proceedings that could materially adversely affect its ability to
perform its obligations under this Agreement and the Exhibits; and (F) no event of default or
potential event of default with respect to it has occurred and is continuing under this Agreement
and no such event or circumstance would occur as a result of its entering into or performing its
obligations under this Agreement and the Exhibits.
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SECTION 14.NOTICES
All notices, requests and approvals by a Party will be given, in writing, and delivered by personal
service, the United States Postal Service, express delivery service, or facsimile transmission, as
follows:
TO CITY:City of Palo Alto
City Clerk
P.O. Box 10250250 Hamilton AvenuePalo Alto, CA 94303
With a copy to City of Palo Alto
each of: P. O. Box 10250
250 Hamilton Avenue
Palo Alto, CA 94303
ATTN: Director, Palo Alto Art Center;
and the Manager, Facilities Maintenance and
Projects
TO FOUNDATION:Palo Alto Art Center Foundation
1313 Newell Road
Palo Alto, CA 94303
ATTN: Teri Vershel, Co-President
SECTION 16.DISPUTE RESOLUTION
16.1 If a dispute arises from or in connection with this Agreement, generally, or any
Exhibit, in particular (a “Dispute”), the parties shall each designate a representative to meet and
confer to promptly resolve the Dispute.
16.2 Nothing contained in this Agreement will prevent or otherwise restrict either
Party from pursuing its equitable rights, including injunctive relief and specific performance, in
the event of a material breach by the other Party.
SECTION 17.MISCELLANEOUS
17.1 This Agreement will be governed by and construed in accordance with the laws of
California and, as appropriate, the Charter, and the PAMC. The Parties will comply with
applicable laws in the exercise of their rights and the performance of their obligations under this
Agreement.
17.2 All covenants, terms, conditions and provisions of this Agreement, whether
covenants or conditions, will be deemed to be both covenants and conditions.
17.3 This Agreement represents the entire agreement between the Parties and
supersedes all prior negotiations, representations and contracts, written or oral, relating to the
subject matter of this Agreement. This Agreement may be amended by an instrument, in writing,
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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.
17.4 All exhibits referred to in this Agreement are by such references incorporated in
this Agreement and made a part hereof. A reference to this Agreement will include a reference to
the applicable exhibit or exhibits hereto. The following exhibits are made a part of this
Agreement:
Exhibit “A” -- Description of Foundation and City-Sponsored Work
Exhibit “B” – Design Contract
Exhibit “C” -- Payment Schedule
Exhibit “D” – Project Schedule
Exhibit “E” – Form of Assignment of Rights Under Design Contract
Exhibit “F” – Initial Project Budget
Exhibit “G” – Construction Contract
Exhibit “H” – Cost Share Ratio
17.5 The Parties agree that the normal rule of construction to the effect that any
ambiguity is to be resolved against the drafting party will not be employed in the interpretation
of this Agreement and the Exhibits or any amendment thereto.
17.6 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.
17.7 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 Agreement, the Exhibits, or any amendment thereto, will remain in full force
and effect.
17.8 The term “day” means a calendar day, unless a “business day” is specified; for the
purposes of this Agreement, “business day” means a calendar day but it 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 employees, electing to work nine (9)
business days in a ten-business-days biweekly period, to work on such days.
17.9 The individuals executing this Agreement represent and warrant that they have the
legal capacity and authority to do so on behalf of their respective legal entities.
17.10 The City shall, to the fullest extent permitted by law, indemnify, defend and hold
harmless the Foundation and its officers, directors, employees, successors and assigns
(collectively, the “Indemnified Parties”) from and against all liabilities, claims, demands, debts,
controversies, judgments, awards, fines, damages, costs, losses and expenses, including without
limitation attorneys’ fees, disbursements and court costs, and all other consultant and expert fees
and costs (collectively, “Claims”) for (a) personal injury, death, or property damage arising from
the Project, (b) any claims of lien or stop notices asserted by any contractor, or (c) otherwise
relating to or arising from the design or construction of the Project. The duty to defend is
independent of and separate from the duty to indemnify and such duty to defend exists regardless
15
of any ultimate liability of City or any Indemnified Party. Such defense obligation shall arise
immediately upon submission of any Claim by any Indemnified Party or written notice of such
Claim being provided to City. City’s indemnification obligation hereunder shall survive the
expiration or earlier termination of the Agreement until such time as it is determined by final
judgment that any Claim against the Indemnified Parties for such matters indemnified hereunder
are fully and finally barred as to the Indemnified Parties by the applicable statute of limitations.
17.11.Notwithstanding anything in this Agreement to the contrary, no director, officer,
employee or volunteer of the Foundation will have any personal liability under this Agreement.
SECTION 18. NON-APPROPRIATION
18.1. 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. The preceding
provisions of this Section 18.1 shall not excuse the City from using funds previously
appropriated for the Project. This section shall take precedence in the event of a conflict with
any other covenant, term, condition, or provision of this Agreement.
/ /
/ /
/ /
/ /
/ /
/ /
/ /
16
IN WITNESS WHEREOF, the Parties by their duly authorized representatives have
executed this Agreement on the Effective Date.
APPROVED AS TO FORM:CITY OF PALO ALTO
_________________________________________________________________
Senior Asst. City Attorney City Manager
APPROVED:
PALO ALTO ART CENTERFOUNDATION
_________________________________________________________________
Director of Administrative Services President
_________________________________________________________________
Director of Community Services Chief Operating Officer
______________________________
Director of Public Works
Exhibit “A” - Description of Foundation and City-Sponsored Work
Exhibit “B” – Design Contract
Exhibit “C” - Payment Schedule
Exhibit “D” – Project Schedule
Exhibit “E” –Form of Rights Under Assignment of Design Contract
Exhibit “F” –Initial Project Budget
Exhibit “G” – Construction Contract
Exhibit “H” – Cost Share Ratio Calculation
17
Exhibit A
DESCRIPTION OF FOUNDATION AND CITY-SPONSORED WORK
1. INTRODUCTION
The City of Palo Alto is upgrading the Art Center building, located at 1313
Newell Rd, Palo Alto, CA. The City’s scope of work includes replacement or retrofit of building
ventilation systems, electrical systems and distribution wiring, fire life safety systems, and
accessibility upgrades (as triggered by Title 24 provisions required by the aforementioned
upgrades) to the facility, while the Foundation’s scope of work includes the creation of a
Children’s Wing and an upgrade of the exhibition galleries. The project also includes
installation of energy saving systems/features.
In addition to the abovementioned electrical, mechanical and Children’s Wing
improvements, the City will also now add deferred-maintenance items to the project such as a
new roof, new gutters, new downspouts, seismic upgrade to roofing envelope, exterior painting,
new carpets, additional interior painting, termite treatment and dry rot repairs, new window
safety glazing and exterior lighting improvements.
2.SCOPE OF SERVICES
The project scope includes all labor, material and equipment. The following
contains a general description of the scope of work included in each element listed below.
Foundations Minor cutting and patching for plumbing work included in plumbing section.
Structure Roof framing diaphragm strapping and connection strengthening. Termite
treatment and dry-rot repairs.
Exterior enclosure Removal of existing windows/walls to accommodate new doors, infilling existing
window system with spandrel glass and CMU wall infill at various locations.
Window safety glazing upgrade to bottom windows in courtyard. Exterior
painting.
Roofing Roof replacement and seismic upgrade to roofing envelope. New gutters and
downspouts.
Interior division New interior partitions with gypsum board to both sides, doors, frames and
hardware.
Finishes New finishes at various locations, including ceramic tile at restrooms, resilient
flooring through, carpet, painted walls, painted gypsum board ceilings, and 2x2
concealed spline ceilings at various locations.
Equipment Equipment includes prefabricated toilet compartments and accessories, shelving
and millwork, cabinets and counter tops, chalkboards and insignia, amenities and
convenience items.
18
Vertical transportation Rework stairs, ramps and railings for ADA compliance.
Plumbing Demolition and re-pipe of waste and water service piping, new sanitary fixtures
with associated waste, vent and service piping, domestic cold and hot water
piping system.
HVAC Demolition of existing ceiling located AC units, condensing unit, boiler with
pumps, piping, ductwork and controls, including installation of new AHU and
ductwork. New air cooled chiller and CHW piping, new boiler and HHW.
Fire protection Repair and replacing of existing sprinkler heads.
Electrical Primary underground raceway, utility transformer, secondary underground
raceway, electrical service switchboard (NEMA 3R), re-feed existing
switchboard, motor connections, receptacles as required, maintain existing
receptacle system. New interior lighting.
Site work Landscaping, paving, drop off parking and site fencing. Irrigation improvements.
New children’s entrance walkway and courtyard. Sculpture garden concrete work
to match accessibility ramps.
Site Utilities Site lighting, electrical feeders, mechanical, and drainage.
Telecom New Telephone/data cabling
Fire Life Safety New fire alarm system and security system.
Abatement Hazardous Material Abatement
Building Certification LEED certification and Commissioning
19
Exhibit B
DESIGN AGREEMENT AND AMENDMENT ADD SERVICES
[To Be Inserted At Closing]
20
Exhibit C
PAYMENT SCHEDULE
Foundation shall deposit with City:
75 calendar days prior to scheduled award date of construction contract --$1,250,000
At Notice of Substantial Completion -- Lesser of $750,000 or balance of Foundation Project
Costs
TOTAL:$2,000,000 Maximum
21
Exhibit D
PROJECT SCHEDULE
Milestones:Approx. Date:
Pre-construction Phase (5 months):
Begin Prequalification of Contractors February 2011
Begin move-out of staff/materials March 2011
Begin hazardous material removal April 2011
Advertise for construction bids April - May 2011
Award of Construction Contract June 2011
Construction Phase (10-12 months):
Construction Start June 2011
Construction Completion April 2012
Move-back of staff/materials May 2012
Grand-opening June 2012
22
Exhibit E
FORM OF ASSIGNMENT OF RIGHTS UNDER DESIGN CONTRACT
ASSIGNMENT OF DESIGN CONTRACT RIGHTS
THIS ASSIGNMENT OF DESIGN CONTRACT RIGHTS (“Assignment”) is
executed and delivered effective as of ___________, by the PALO ALTO ART CENTER
FOUNDATION, a corporation organized under the Nonprofit Public Benefit Corporation Law of
the State of California (“Assignor”), for the benefit of the CITY OF PALO ALTO, a California
chartered municipal corporation (“Assignee”). All capitalized terms used in this Assignment
have the meaning given to such terms in that certain Construction Funding Agreement Between
the City of Palo Alto and the Palo Alto Art Center Foundation for Upgrades to the Palo Alto Art
Center Renovation Project dated _____________ (the “Agreement”).
For good and valuable consideration, receipt of which is hereby acknowledged,
Assignor does hereby assign to Assignee: (1) all plans and specifications prepared by MCA in
connection with the Project (the “Plans”), (2) all present and future claims, causes of action and
other rights of any nature, whether in contract or in tort, that Assignor may have against MCA in
connection with the design of the Project, including without limitation all rights to insurance
proceeds with respect to the Design Contract; and (3) to the extent assignable, all warranties and
guarantees arising under the Design Contract (collectively, the “Assigned Rights”); provided,
however, that Assignor shall have jointly with Assignee the same rights assigned to Assignee
pursuant to this Assignment so that Assignor shall not be precluded from prosecuting any claim
that Assignor may have against MCA.
Assignor hereby covenants that it will, at any time and from time to time upon
written request from Assignee, execute and deliver to Assignee or its successors and/or assigns
any new or confirmatory instruments, and do and perform any other acts which Assignee or its
successors and/or assigns may request in order to fully transfer possession and control of the
Assigned Rights intended to be transferred and assigned hereby.
This Assignment shall be binding upon and inure to the benefit of Assignee and
its successors and assigns.
This Assignment may be executed in counterparts, each of which shall be deemed
an original, but all of which, taken together, shall constitute one and the same instrument.
THE ASSIGNED RIGHTS ARE TRANSFERRED AND ASSIGNED BY
ASSIGNOR ON AN “AS IS, WHERE IS” BASIS, AND WITHOUT ANY WARRANTIES
OF WHATSOEVER NATURE, EXPRESS OR IMPLIED, INCLUDING, WITHOUT
LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR ANY PARTICULAR PURPOSE, WARRANTIES CREATED BY ANY
AFFIRMATION OF FACT OR PROMISE OR BY ANY DESCRIPTION OF THE
RIGHTS TRANSFERRED HEREUNDER, OR BY ANY SAMPLE OR MODEL
THEREOF, AND ALL OTHER WARRANTIES WHATSOEVER CONTAINED IN OR
CREATED BY THE CALIFORNIA UNIFORM COMMERCIAL CODE. SUCH
23
ASSIGNMENT AND TRANSFER IS SUBJECT TO ANY AND ALL RIGHTS OF MCA
AND ANY OTHER THIRD PARTIES IN AND TO THE ASSIGNED RIGHTS.
IN WITNESS WHEREOF, this Assignment is executed and delivered by the Assignor to
the Assignee as of the date first set forth above.
PALO ALTO ART CENTER FOUNDATION
By:_____________________________
Name:__________________________
Title:___________________________
24
Exhibit F
INITIAL PROJECT BUDGET
[To Be Inserted At Closing]
25
Exhibit G
CONSTRUCTION CONTRACT
[To Be Inserted At Closing]
26
Exhibit H
ART CENTER
PERCENTAGE SHARE CALCULATION
(Thousands of Dollars)
Total Cost City Portion Foundation
Portion
Phase 1
Construction
$3,785 $2,541 $1,244
Additive Alternates 118 106 12
Deferred
Maintenance
760 760 0
Special Testing &
Inspections
10 7 3
TOTAL $4,673 $3,414 $1,259
PERCENTAGE SHARE 73.1%26.9%
Note: The costs in this exhibit are taken from the January 25, 2011 Building Permit Set Cost
Estimate for Palo Alto Art Center prepared Mack5.
101216 jb 0130658 1
AMENDMENT NO. THREE TO CONTRACT NO. C08126592
BETWEEN THE CITY OF PALO ALTO AND THE PALO ALTO
ART CENTER FOUNDATION FOR THE DESIGN OF CAPITAL
IMPROVEMENTS RELATING TO THE RENOVATION OF THE
PALO ALTO ART CENTER
This Amendment No. Three to Contract No. C08126592 (“Contract”) is entered
into _____________, 2011 between the CITY OF PALO ALTO (the “City”) and the
PALO ALTO ART CENTER FOUNDATION (the “Foundation”) (individually, a
“Party” and, collectively, the “Parties”), in reference to the following facts and
circumstances:
RECITALS:
1.On March 10, 2008, the Parties entered into the Design of Capital
Improvements Relating to the Renovation of the Palo Alto Art Center agreement (the
“Design Agreement”).
2.On December 15, 2008, Council approved Amendment No. One to
Contract Number C08126592 with the Foundation in the amount of $78,580 for the
Planning and Design Phase for the Renovation and Capital Improvements to the Palo
Alto Art Center, Capital Improvement Program Project PF-07000. Amendment No. One
addressed scope increases to the design development phase due to new green building
requirements, accessibility and seismic code requirements, hazardous materials testing
and removal, and determination of the extent of required electrical system upgrades.
3.On March 16, 2009, Council approved Amendment No. Two to Contract
Number C08126592 with the Foundation in the amount of $6,249 for a Total Not to
Exceed Amount of $374,829 for the Development of Construction Documents for the
Renovation and Capital Improvements to the Palo Alto Art Center, Capital Improvement
Program Project PF-07000. Amendment No. Two also changed the scope of the
agreement between the City of Palo Alto and the Foundation to include design services
only, and exclude any payment for bid and construction phase services. In addition, the
Amendment extended the term of the agreement from March 31, 2009 to March 31, 2010
to allow time for the completion of construction documents.
4.The parties intend to enter into a Construction Funding Agreement
whereby the Foundation will contribute up to $2 Million to fund renovations and
upgrades to the Art Center;
5.The Parties wish to amend the Design Agreement to: (1) extend the term
of the Agreement from March 31, 2010 to June 1, 2011 to ensure the contract stays
current; (2) expand the scope of the design work to include design for deferred
maintenance aspects of the project whereby the expense will be incurred by the City; and
3) expand the scope of the design work to include bid documentation that will be split
between the City and the Foundation based upon the cost-sharing ratio determined in the
concurrent Construction Funding Agreement.
101216 jb 0130658 2
AGREEMENT:
NOW, THEREFORE, in consideration of the terms, conditions, and provisions of
this Amendment, the Parties agree, as follows:
SECTION 1. Section 2.1 of the Design Agreement is amended to read, as
follows:
“2.1 The term of this Design Agreement (the “Term”) shall commence on the
Effective Date and continue through June 1, 2011. If the completion of the design and
plan development phase of the Project is delayed for any reason beyond the reasonable
control of the Foundation, then subject to the preceding sentence, the Parties may agree,
in writing, to extend the Term on a month-to-month basis, in order to permit the
Foundation to complete the design and bid documentation phase of the Project.”
SECTION 2. Recital 6 is added to the Design Agreement to read as follows:
“6.The Foundation has entered into an agreement with the Architect to
perform the following additional services: (1) preparation of plans for additional deferred
maintenance task items as set forth in Exhibit A-1 which is attached and incorporated by
reference and (2) completion of construction drawings as set forth in Exhibit A-2.”
SECTION 3. Section 4.2 of the Design Agreement is amended to add the
following provisions:
“The City shall reimburse the Foundation for the costs incurred by the Foundation
in connection with the deferred maintenance scope described in Recital 6 in an amount
not to exceed $79,505 for fees associated with incorporation of the deferred maintenance
items into existing construction documents and not to exceed $30,000 for services
associated with HRB/ARB review of the additional services.
The City shall also reimburse the Foundation for its proportionate share of the
additional services related to completion of construction drawings described in Recital 6
in an amount not to exceed $45,043. For purposes of this Amendment No. 3, the City’s
proportionate share of the additional services for completion of construction drawings
shall be 73.1% percent.
The City shall pay such costs as invoiced by the Foundation. The Foundation’s
invoice shall include documentation in support of each installment payment request. The
required documentation will consist of the Architect’s invoices, as submitted to the
Foundation for payment, with documentation of all design and plan development services
rendered to that point in time, together with the Foundation’s proof of payment of such
invoices.”
SECTION 4.Except as they are herein modified, all other provisions of the
Design Agreement, including any exhibits and subsequent amendments thereto, shall
remain in full force and effect.
101216 jb 0130658 3
IN WITNESS WHEREOF, the Parties hereto have duly executed this
Amendment No. 2 on the day and year first written.
APPROVED AS TO FORM:
__________________________
Senior Asst. City Attorney
APPROVED:
__________________________
City Manager
__________________________
Director of Administrative Services
__________________________
Director of Community Services
___________________________
Acting Director of Public Works
CITY OF PALO ALTO
____________________________
Mayor
PALO ALTO ART CENTER
FOUNDATION
By:___________________________
Name:_________________________
Title:________________________
101216 jb 0130658 4
Exhibit A-1
Additional Services Agreement for Deferred Maintenance Work
Exhibit A-2
Additional Services Agreement for Bid Services
City of Palo Alto (ID # 1308)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 2/7/2011
February 07, 2011 Page 1 of 6
(ID # 1308)
Title: Drought Implementation Plan
Subject: Approval of a Utilities Advisory Commission Recommendation to
Adopt a Resolution Approving a New Tier II Water Shortage Allocation Plan
Pursuant to Section 3.11(C) of the 2009 Water Supply Agreement with San
Francisco
From: City Manager
Lead Department: Utilities
Recommendation
Staff and the Utilities Advisory Commission Recommend that the Council Adopt a Resolution
approving a new Tier II Water Shortage Allocation Plan pursuant to Section 3.11(C) of the 2009
Water Supply Agreement with San Francisco.
Executive Summary
Since July 2009 when the new 25-year Water Supply Agreement with San Francisco went into
effect, there has been no plan to divide available water among the agencies who buy water
from San Francisco during a water shortage such as a drought. Starting in October 2009, the
agencies met regularly to begin discussions on a new methodology. In August 2010, agreement
was reached on a new formula. This report presents the new Water Shortage Allocation Plan
and recommends the City Council approve the new plan by Resolution.
Background
The 1984 Settlement Agreement and Master Water Sales Contract (1984 Agreement) between
the City and County of San Francisco and the Wholesale Customers provided the framework for
the San Francisco Public Utilities Commission (SFPUC) and the Wholesale Customers of the
SFPUC system to allocate water during a water shortage. The 1984 Agreement also specified
that the Bay Area Water Supply and Conservation Agency (BAWSCA) member agencies and the
SFPUC will “begin good faith negotiations to develop a water conservation plan” that will
supersede the default allocation in Section 7.03 (b) of the contract. The default method
essentially allocates water during a drought on a pro-rata basis using the proportional water
use from the year immediately preceding a drought.
Following the drought that began in the late 1980’s, the BAWSCA agencies and the SFPUC
began working on a shortage plan that would eliminate the disincentive to conserve and
provide a better basis for member agencies’ future planning decisions.
February 07, 2011 Page 2 of 6
(ID # 1308)
The discussions resulted in the Interim Water Shortage Allocation Plan (IWSAP), which was
approved by the BAWSCA agencies including the City of Palo Alto in January 2001 (CMR
113:01). The IWSAP provided a formula to allocate water during system wide water shortages
with a reduction in supplies of up to 20 percent. The plan had the following elements: a term,
a provision addressing the allocation of available water between San Francisco and BAWSCA
agencies (Tier 1) and a method of allocating available water determined in Tier 1 amongst the
individual BAWSCA agencies (Tier 2).
During the term of the IWSAP, no water supply shortages were declared so the allocation
methodology in the IWSAP was never used.
On May 19, 2009, City Council approved the new Water Supply Agreement (2009 Agreement)
between San Francisco and the BAWSCA agencies (CMR 252:09). Section 3.11(C) of the 2009
Agreement includes a Water Shortage Allocation Plan to allocate water from the regional
system between San Francisco and BAWSCA members during droughts called by the SFPUC.
The Tier 1 Shortage Plan (“Tier 1 Plan”) will apply to system-wide shortages of 20% or less, and
replaced the Tier 1 portion of the IWSAP. The provisions of the Tier 1 Plan allow wholesale
customers to “bank” drought allocations and to voluntarily transfer them to each other and to
San Francisco. The Tier 1 Plan also presents an updated schedule for actions preceding and
during a drought.
To replace the Tier 2 part of the IWSAP, the 2009 Agreement authorized the BAWSCA members
to adopt a methodology for allocating the water between members which is collectively
available to them as a whole. The 2009 Agreement also commits the SFPUC to honor
allocations of water unanimously agreed to by all the BAWSCA agencies or, if unanimous
agreement cannot be achieved, water allocations that have been adopted by the BAWSCA
Board of Directors. The 2009 Agreement provides that the SFPUC can allocate water supplies
as necessary during a water shortage emergency if no agreed upon plan for water allocation
has been adopted by the 26 BAWSCA agencies or the BAWSCA Board of Directors.
Commencing in October 2009, representatives of each BAWSCA member agency have been
meeting to develop a successor water shortage allocation plan. The members began by
agreeing to a set of principles to serve as guidelines for an equitable allocation methodology, as
well as formulas and procedures, to implement those principles. The guiding principles were
that the plan should:
Provide certainty of drought allocations with consistent and pre-determined rules for
calculation;
Provide sufficient amounts of water for basic needs of customers;
Create an incentive for water conservation at all times and the development and
management of alternative water supplies;
Avoid preventable, adverse economic impacts;
Avoid reallocation of water supply assets and investments among agencies without mutual
consent and compensation; and
February 07, 2011 Page 3 of 6
(ID # 1308)
Recognize inherent differences in land use and climate.
The discussions and supporting technical analyses were conducted over many months and with
the assistance of BAWSCA staff. On August 25, 2010, the representatives unanimously agreed
to recommend adoption of the Tier 2 Plan to each of their respective governing bodies.
Discussion
The new Tier 2 Plan establishes an allocation formula that determines how the available water
from the regional system will be allocated between the individual BAWSCA member agencies in
system-wide shortages up to 20%. The key features of the allocation formula are as follows:
1.Allocation Formula: the formula contains two components that are weighted
differently. The first component, which is one/third weighted, is an agency’s Individual
Supply Guarantee (ISG) (with slight variations for Hayward, San Jose, and Santa Clara).
The purpose of this component is to recognize the importance of contractual rights to
the SFPUC system. The second component, which is two/thirds weighted, is applied to a
seasonal calculation using 3-year average monthly total water supply. The purpose of
this component is to recognize that some agencies have discretionary, non-essential,
water uses that can be reduced to minimize regional economic and human health
impacts.
2.Applicability: the minimum reduction for an agency is set to 10% and the maximum
reduction is equal to no more than the average reduction plus 20%. This provision is
included to ensure that no agency bears an unfair and disproportionate share of any
reduction.
3.Health and Safety Guarantee: the plan includes a provision to guarantee a sufficient
supply of water to East Palo Alto to meet health and safety needs for its residents. This
provision was added because the City of East Palo Alto is projected to grow beyond its
ISG. East Palo Alto’s per capita water use is extremely low and, absent any adjustment,
it could receive a drought allocation that does not provide enough water for minimum
health and safety needs. The BAWSCA members agreed to provide adequate supplies to
meet minimum health and safety needs for East Palo Alto.
4.Term: The proposed Tier 2 Plan expires on December 31, 2018. The Tier 2 Plan
allocates the collective Wholesale Customer drought allocation among each of the 26
wholesale customers through 2018 to coincide with the Interim Supply Limitation, San
Francisco’s deferral of decisions about additional supply until at least 2018. The Tier 1
and Tier 2 Drought Allocation Plans apply only during times of water shortages caused
by drought. San Francisco’s Interim Supply Limitation applies in all years through 2018,
regardless of water supply availability.
February 07, 2011 Page 4 of 6
(ID # 1308)
City of Palo Alto’s Allocation
In general, the new drought allocation formula will result in a decreased water shortage
allocation for the City of Palo Alto compared to the formula in the expired IWSAP. Figure 1
illustrates the effect of the new formula vs. the IWSAP formula for two demand scenarios when
there is a system-wide reduction of 20%.
Figure 1 – City of Palo Alto Drought Allocation Scenario
The lower allocation under the new formula is largely a result of the seasonal component of the
formula. In theory, the more potable water that is used for irrigation purposes, the more an
agency is penalized in the new formula with a lower drought-time allocation. However, the ISG
component of the formula can serve to offset the impact of the seasonal component. This is
particularly true in Palo Alto’s case since the City’s current water use (about 11.0 million gallons
of water per day (mgd) in FY 2010) is well below its ISG (17.075 mgd).
Though not explicitly by design, a noteworthy feature of the new formula is that it provides an
incentive to conserve water in a different manner than the formula in the expired IWSAP. The
previous formula had a conservation incentive element, but it did not differentiate between
indoor and outdoor water use efficiency. The new formula provides a double benefit for
outdoor efficiency by reducing irrigation demand in the seasonal component of the formula and
also reducing overall demand below the ISG. Indoor conservation, on the other hand, will not
influence the seasonal component of the formula, but will reduce demand below an agency’s
ISG. This structure provides the foundation to promote outdoor water use efficiency, including,
for example, providing support for water rate structures that encourage investments in
irrigation efficiency and drought tolerant landscapes. Increased attention to outdoor water use
efficiency and drought tolerant landscapes will also prepare the City for future drought
conditions that could result in substantial landscape replacement costs.
The City of Palo Alto’s 2005 Urban Water Management Plan (UWMP) specifies how the City will
respond to different stages of water supply reductions. The new water shortage allocation
February 07, 2011 Page 5 of 6
(ID # 1308)
formula increases the likelihood that the City will need to implement more stringent dry year
demand- and supply-side options, including the option of relying on supplemental groundwater
supplies from Palo Alto’s groundwater extraction wells.
Staff is in the process of preparing the 2010 UWMP update. The 2010 UWMP will include a
discussion of potential dry year impacts of the new water shortage allocation formula and the
options available to the City to mitigate those impacts. Staff anticipates submitting the Draft
UWMP to the UAC in April 2011 and to the City Council in May 2011. The deadline for
submission of the 2010 UWMP to the State is June 2011.
No Recommendation Alternative
All the BAWSCA agencies will seek formal approval of the Drought Allocation Plan from their
respective governing bodies. Like all the members, Palo Alto has the discretion to not approve
the proposed drought allocation method. If this course of action were chosen by any one
agency, Section 3.11(C)(3) of the 2009 Agreement provides that the BAWSCA Board of Directors
will be given the opportunity to approve a new formula. Absent action by the BAWSCA Board
of Directors, the SFPUC will make a decision on the matter.
The proposed formula was the subject of over a year of discussion and is the result of
agreement among 26 agencies with many different views on appropriate allocation
methodologies. Staff’s recommendation to approve the proposed Drought Allocation Plan
inherently recognizes that the outcome of a decision by the BAWSCA Board of Directors is
unlikely to result in an improvement over the current proposal.
Utilities Advisory Commission Discussion
Staff presented the matter to the Utilities Advisory Commission (UAC) at its January 12, 2010
meeting. Staff presented the proposed recommendation and background as described in this
report.
The commission discussed the proposed plan and determined that the options to approval
were not advisable. Draft minutes from the UAC’s meeting are attached. Key discussion items
included a question of what would be done in the case that the required water reductions
exceed 20% since the plan is only applicable in shortages up to 20%. Staff responded that the
SFPUC would determine the reduction formula in that event. A commissioner also inquired
about the default process if any of the BAWSCA members did not approve the new plan. Staff
explained that the contract is clear that the BAWSCA Board of Directors would be given an
opportunity to approve a new formula and the SFPUC would only act in the unlikely event that
the BAWSCA Board did not. Absent BAWSCA Board action, staff cannot say what decision the
SFPUC may take.
After the discussion, the UAC unanimously recommended that the City Council approve the
new Water Shortage Allocation Plan.
Resource Impact
February 07, 2011 Page 6 of 6
(ID # 1308)
Approval of the new Drought Allocation Plan will not result in additional resource impacts for
the City
Environmental Review
Adoption of this resolution is categorically exempt from the California Environmental Quality
Act as an action by a regulatory agency for the protection of natural resources (CEQA
Guidelines Section 15307), and an as action taken by a regulatory agency for protection of the
environment (CEQA Guidelines Section 15308).
ATTACHMENTS:
Attachment A: City Council Resolution Approving Tier 2 Plan (DOC)
Attachment B: Utilities Advisory Commission Excerpted Minutes (DOC)
Prepared By:Nicolas Procos, Resource Planner
Department Head:Valerie Fong, Director
City Manager Approval: James Keene, City Manager
*NOT YET APPROVED*
110119 dm 6051514 1
Resolution No. ________
Resolution of the Council of the City of Palo Alto Approving a
New Tier II Water Shortage Allocation Plan Pursuant to Section
3.11(C) of the 2009 Water Supply Agreement with San Francisco
WHEREAS, the City of Palo Alto is one of 26 agencies in San Mateo, Santa Clara
and Alameda Counties which purchase water from the City and County of San Francisco (San
Francisco) pursuant to a Water Supply Agreement entered into in 2009 (Agreement).
Collectively these 26 agencies are referred to in the Agreement as Wholesale Customers.
WHEREAS, Section 3.11 of the Agreement addresses times when insufficient water
is available in the San Francisco Regional Water System to meet the full demands of all users.
Section 3.11(C) provides that during periods of water shortage caused by drought, the San
Francisco Public Utilities Commission (SFPUC) will allocate available water between its retail
customers and the Wholesale Customers collectively, in accordance with a schedule contained in
the Water Shortage Allocation Plan set forth in Attachment H to the Agreement (Tier I Plan).
WHEREAS, Section 3.11(C) authorizes the Wholesale Customers to adopt an
additional Water Shortage Allocation Plan, including a methodology for allocating the water
which is collectively available to the 26 Wholesale Customers among each individual Wholesale
Customer (Tier II Plan). It also commits the SFPUC to honor allocations of water unanimously
agreed to by all Wholesale Customers or, if unanimous agreement cannot be achieved, water
allocations that have been adopted by the Board of Directors of the Bay Area Water Supply and
Conservation Agency (BAWSCA). The Agreement also provides that the SFPUC can allocate
water supplies as necessary during a water shortage emergency if no agreed upon plan for water
allocation has been adopted by the 26 Wholesale Customers or the BAWSCA Board of
Directors.
WHEREAS, commencing in October 2009, representatives appointed by the
managers of each of the Wholesale Customers have been meeting to develop a set of principles
to serve as guidelines for an equitable allocation methodology, as well as formulas and
procedures, to implement those principles. These discussions, and supporting technical analyses,
have been conducted with the assistance of BAWSCA staff.
WHEREAS, the Tier II Plan, attached to this resolution as Exhibit A, has been
endorsed by all of the Wholesale Customer representatives who participated in the formulation
process and they have committed to recommend that it be formally adopted by the governing
body of their respective agencies.
WHEREAS, the Tier II Plan allocates the collective Wholesale Customer share
among each of the 26 wholesale customers through December 31, 2018 to coincide with San
Francisco’s deferral of decisions about additional water supply until at least 2018.
NOW, THEREFORE, the Council of the City of Palo Alto does hereby
RESOLVE as follows:
SECTION 1. The Tier II Drought Implementation Plan, a copy of which is attached
hereto as Exhibit A, is approved.
*NOT YET APPROVED*
110119 dm 6051514 2
SECTION 2. This approval is conditioned upon all of the other 25 Wholesale
Customers approving the Plan, such approvals being evidenced through adoption of similar
resolutions or, in the case of private-sector organizations, by other equivalently binding written
commitments signed by an executive officer acting within the scope of delegated authority, and
all such approvals occurring on or before June 30, 2011.
SECTION 3. If such resolutions or binding commitments are not adopted by that
date, this resolution will automatically expire and be of no further effect after June 30, 2011,
unless it has been extended prior thereto by further action of this Council.
SECTION 4. The Council finds that adoption of this resolution is categorically
exempt from the California Environmental Quality Act as an action taken by a regulatory agency
for the protection of natural resources (CEQA Guidelines Section 15307), and an as action taken
by a regulatory agency for protection of the environment (CEQA Guidelines Section 15308).
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
______________________________________________________
City Clerk Mayor
APPROVED AS TO FORM:APPROVED:
______________________________________________________
Senior Deputy City Attorney City Manager
___________________________
Director of Utilities
___________________________
Director of Administrative Services
*NOT YET APPROVED*
110119 dm 6051514 3
EXHIBIT A
TIER II DROUGHT IMPLEMENTATION PLAN
AMONG WHOLESALE CUSTOMERS
This Tier II Drought Implementation (Plan) describes the method for allocating the water made
available by the San Francisco Public Utilities Commission (SFPUC) among the Wholesale
Customers during shortages caused by drought. This Plan is adopted pursuant to Section 3.11.C
of the July 2009 Water Supply Agreement between the City and County of San Francisco and the
Wholesale Customers (Agreement).
SECTION 1. APPLICABILITY AND INTEGRATION
Section 1.1 Applicability. This Plan applies when, and only when, the SFPUC
determines that a system-wide water shortage of 20 percent or less exists, as set forth in
a declaration of water shortage emergency adopted by the SFPUC pursuant to
California Water Code Sections 350 et seq. This Plan applies only to water acquired and
distributed by the SFPUC to the Wholesale Customers and has no effect on water
obtained by a Wholesale Customer from any source other than the SFPUC.
Section 1.2 Integration with Tier I Water Shortage Allocation Plan. The Agreement
contains, in Attachment H, a Water Shortage Allocation Plan which, among other
things, (a) provides for the allocation by the SFPUC of water between Direct City Water
Users (e.g., retail water customers within the City and County of San Francisco) and the
Wholesale Customers collectively during system-wide water shortages of 20 percent or
less, (b) contemplates the adoption by the Wholesale Customers of this Plan for
allocation of the water made available to Wholesale Customers collectively among the
26 individual Wholesale Customers, (c) commits the SFPUC to implement this Plan, and
(d) provides for the transfer of both banked water and shortage allocations between and
among the Wholesale Customers and commits the SFPUC to implement such transfers.
That plan is referred to as the Tier I Plan.
The Tier I Plan also provides the methodology for determining the Overall Average
Wholesale Customer Reduction, expressed as a percentage cutback from prior year’s
normal SFPUC purchases, and Overall Wholesale Customer Allocation, in million
gallons per day, both of which are used in determining the Final Allocation Factor for
each Wholesale Customer. The Overall Average Wholesale Customer Reduction is
determined by dividing the volume of water available to the Wholesale Customers (the
Overall Wholesale Customer Allocation), shown as a share of available water in Section
2 of the Tier I Plan, by the prior year’s normal total Wholesale Customers SFPUC
purchases and subtracting that value from one.
This Plan is referred to in the Agreement as the Tier II Plan. It is intended to be integrated with
the Tier I Plan described in the preceding paragraph. Terms used in this Plan are intended to
have the same meaning as such terms have in the Tier I Plan.
*NOT YET APPROVED*
110119 dm 6051514 4
SECTION 2. ALLOCATION OF WATER AMONG WHOLESALE CUSTOMERS
Section 2.1 Annual Allocations Among the Wholesale Customers. The annual water
supply allocated by the SFPUC to the Wholesale Customers collectively during system-
wide shortages of 20 percent or less shall be apportioned among them based on the
methodology described in this Section.
Section 2.2 Methodology for Allocating Water Among Wholesale Customers. The
water made available to the Wholesale Customers collectively will be allocated among
them in proportion to each Wholesale Customer’s Allocation Factor, adjusted as
described in the following subsections below. The Wholesale Customer Allocation
Factors will only be calculated at the onset of a drought and will remain the same until
such time as the SFPUC declares the shortage condition over. The Wholesale Customer
Allocation Factors will be recalculated during subsequent shortage periods for use
during those specific periods.
Section 2.2.1 Step One: Determination of Base/Seasonal Purchase Cutback For Each
Wholesale Customer. The first step requires calculating the Wholesale Customer’s
Base/Seasonal Purchase Cutback. This calculation has seven parts. An example of
Steps 1b-1f is presented in Table 2. Step 1g is shown in columns 3-6 in Table 3. For
steps 1b-1g, the calculation uses average monthly production values for the three years
preceding the drought for all potable supply sources, expressed as a monthly value in
hundred cubic feet:
-Step 1a: Each agency’s total annual purchases from the SFPUC will be compared
to its Individual Supply Guarantee (ISG), with any annual purchases above its
ISG subtracted from that agency’s total annual SFPUC purchases by subtracting
the amount on a monthly basis in proportion to the agency’s monthly SFPUC
purchase pattern,
-Step 1b: Calculate Average Monthly and Total Production for the three fiscal
years immediately preceding the drought, excluding years during which
shortage allocations were in effect, based on monthly production data from the
SFPUC and Wholesale Customers,
-Step 1c: Calculate Base Component which is equal to the Average Monthly
Production during the base months of December, January, February and March,
multiplied by 12,
-Step 1d: Calculate Seasonal Component as the difference between Total
Production and Base Component,
-Step 1e: Calculate an agency’s Base/Seasonal Allocation , expressed in hundred
cubic feet, by multiplying the Base Component by one minus the Base Reduction
Percentage, or 90%, and the Seasonal Component by the percentage needed
(Seasonal Reduction Percentage) to achieve the required Overall Average
Wholesale Customer Reduction, which is expressed as a percentage,
*NOT YET APPROVED*
110119 dm 6051514 5
-Step 1f: Calculate the Base/Seasonal Allocation Cutback Percentage for each
agency by dividing its Base/Seasonal Allocation by the agency’s Total
Production, and
-Step 1g: Calculate the Base/Seasonal Purchase Cutback Percentage by
multiplying the Base/Seasonal Allocation Cutback percentage times the lesser of:
(a) the immediately preceding SFPUC purchases or (b) ISG, adjusting the
Seasonal percentage above until the total reduction equals the Overall Average
Wholesale Customer Reduction.
Additionally, adjustments to the Base Component for Stanford University will be made
to remove that two week time period that the University is completely closed during
the winter break per policy set by the University President as long as that policy
remains in place. This adjustment will be removed at such time as the seasonal closure
policy is terminated by Stanford University.
Section 2.2.2 Step Two: First Adjustment for San Jose and Santa Clara. The resulting
Base/Seasonal Purchase Cutback Percentage in Section 2.2.1 for San Jose and Santa
Clara will be compared to the highest Base/Seasonal Purchase Cutback percentage of
the other Wholesale Customers. If both San Jose’s and Santa Clara’s percentage
reductions are larger than the highest percentage reduction among any other Wholesale
Customers, the Base/Seasonal Purchase Cutback percentage established under Section
2.2.1 will remain unchanged. If either San Jose’s percentage cutback or Santa Clara’s
percentage cutback, or both, is smaller than the highest Base/Seasonal Purchase
Cutback percentage of other Wholesale Customers, the Base/Seasonal Allocation (in
mgd) of San Jose or Santa Clara, or both, will be reduced so that the percentage cutback
of each is no smaller than that of the Wholesale Customers’ otherwise highest
percentage cutback. The amount of shortage allocation (in mgd) removed from San Jose
and/or Santa Clara will be reallocated among the remaining Wholesale Customers in
proportion to the Base/Seasonal Allocation of each.
Section 2.2.3 Step Three: Determination of Weighted Purchase Cutback For Each
Wholesale Customer. Each agency’s weighted allocation is calculated by multiplying
its Adjusted Base/Seasonal Allocation in Section 2.2.2 by 66.66% and its Fixed
Component by 33.33%. The Fixed Component is (i) the Wholesale Customer’s ISG
provided for in the Agreement, or (ii) in the case of Hayward, 25.11 mgd, or (iii) in the
case of San Jose and Santa Clara, consistent with the limit on purchases from SFPUC set
forth in Section 4.05 of the Agreement, e. g., 4.5 mgd each. The amount of the Fixed
Component for each Wholesale Customer is shown on Table 1.
Section 2.2.4 Step Four: Second Adjustment for San Jose and Santa Clara. The
resulting Weighted Allocations for San Jose and Santa Clara will be compared to the
highest Weighted Purchase Cutback, shown as a percentage, of the other Wholesale
Customers. If both San Jose’s and Santa Clara’s percentage cutback is larger than the
highest percentage cutback among other Wholesale Customers, the Weighted Purchase
Cutbacks established under Section 2.2.3 will remain unchanged. If either San Jose’s
*NOT YET APPROVED*
110119 dm 6051514 6
percentage cutback or Santa Clara’s percentage cutback, or both, is smaller than the
highest percentage cutback of any other Wholesale Customers, the Weighted Shortage
Allocation (in mgd) of San Jose or Santa Clara, or both, will be reduced so that the
percentage reduction of each is no smaller than that of the Wholesale Customers’
otherwise highest Weighted Percentage Cutback. The amount of allocation (in mgd)
removed from San Jose and/or Santa Clara will be reallocated among the remaining
Wholesale Customers in proportion to the Weighted Shortage Allocation of each.
Section 2.2.5 Step Five: Adjustment for Minimum and Maximum Cutbacks. Using
the Adjusted Weighted Purchase Cutbacks, either a 10% minimum cutback or
maximum cutback, as defined below, is applied to any agency whose Adjusted
Weighted Purchase Cutback falls outside this range:
-A minimum 10% cutback is applied to the individual agency Adjusted Weighted
Allocation, with the reapportioned water being placed in the hardship bank for
allocation to East Palo Alto.
-A maximum cutback of the average cutback plus 20% (e.g. 15% average cutback
results in a maximum cutback of 15% + 20% = 35%) is applied to the individual
agency Adjusted Weighted Allocation, with the water necessary to meet that
level being subtracted in proportion to each Wholesale Customer’s Adjusted
Weighted Allocation from all remaining agencies, except those at agencies
subject to the minimum cutback above.
The result is the Adjusted Minimum/Maximum Purchase Cutback, expressed as a
percentage.
Section 2.2.6 Step Six: Adjustment to Provide Sufficient Supply for East Palo Alto.
In order to provide for sufficient water supply for water customers served by the City of
East Palo Alto (EPA), the maximum Final Purchase Cutback applied at any given time
to EPA will be equal to 50% of the Overall Average Wholesale Customer Reduction.
The water needed to accommodate the guaranteed maximum cutback to EPA will be
provided in two ways:
-First, water from the hardship bank provided by the 10% minimum cutback will
be first added to the EPA Adjusted Weighted Purchase Allocation, and
-Second, the balance of water needed for EPA will be deducted on a prorated
basis from those agencies with a pre-drought residential per capita water use
greater than 55 gallons per capita per day (as documented in the most recent
BAWSCA Annual Survey) in proportion to each agency’s Min./Max. Adjusted
Allocation and who are not subject to the minimum and maximum reductions
already applied per Section 2.2.5
The result is the Allocation with EPA Adjustment, expressed as an mgd.
*NOT YET APPROVED*
110119 dm 6051514 7
Section 2.2.7 Step Seven: Determination of Final Allocation Factor. Each Wholesale
Customer’s Final Allocation Factor is the fraction expressed as a percentage, the
numerator of which is the particular Wholesale Customer’s “Final Allocation with EPA
Adjustment” (in mgd) as calculated in Steps One through Six and the denominator of
which is the Overall Wholesale Customer Allocation (in mgd), a number provided by
the SFPUC during the drought period as determined by the SFPUC in the Tier 1 Plan.
Section 2.2.8 Example Calculation. Table 2 presents a sample of the calculations
involved in Steps 1b-1f. Table 3 presents a sample of the calculations involved in Step
1g and Steps Two through Seven, using the values from Tables 1 and 2 and recent water
use data for the other values. Tables 2 and 3 are presented for illustrative purposes only
and do not supersede the foregoing provisions of this Section 2.2. In the event of any
inconsistency between this Section 2.2 and Tables 2 and 3, the text of this section will
govern.
Section 2.3 Calculation of Individual Wholesale Customer Allocation Factors;
Directions to SFPUC. The Tier 1 Plan contemplates that in any year in which the
methodology described above must be applied, the Bay Area Water Supply and
Conversation Agency (BAWSCA) will calculate each Wholesale Customer’s individual
percentage share of the amount of water made available to the Wholesale Customers
collectively, following the methodology described above and defined above as
Wholesale Customer Allocation Factors. The Tier 1 Plan requires SFPUC to allocate
water to each Wholesale Customer in accordance with calculations delivered to it by
BAWSCA.
Each Wholesale Customer authorizes BAWSCA to perform the calculations required,
using water sales data furnished to it by the SFPUC, and to deliver to SFPUC a list of
individual Wholesale Customer Allocation Factors so calculated as contemplated by the
Tier 1 Plan. Neither BAWSCA nor any officer or employee of BAWSCA shall be liable
to any Wholesale Customer for any such calculations made in good faith, even if
incorrect.
SECTION 3. GENERAL PROVISIONS
Section 3.1 No Third-Party Beneficiaries. This Plan is for the sole benefit of the
Wholesale Customers and shall not be construed as granting rights to any person other
than another Wholesale Customer.
Section 3.2 Governing Law. This Plan is made under and shall be governed by the
laws of the State of California.
Section 3.3 Effect on Water Supply Agreement. This Plan describes the method for
allocating water from the SFPUC among the Wholesale Customers during system-wide
water shortages of 20 percent or less declared by the SFPUC. The provisions of this
Plan, and the Tier 1 Plan contained in Attachment H to the Agreement with which it is
integrated, are intended to implement Section 3.11 of the Agreement. The Plans do not
*NOT YET APPROVED*
110119 dm 6051514 8
affect, change or modify any other section, term or condition of the Agreement or of the
individual Water Sales Contracts between each Wholesale Customer and San Francisco.
Section 3.4 Amendment. This Plan may be amended only by the written agreement
of all Wholesale Customers.
Section 3.5 Termination. This Plan shall expire on December 31, 2018. It may be
terminated prior to that date only by the written agreement of all Wholesale Customers.
ATTACHMENT B
UTILITIES ADVISORY COMMISSION - SPECIAL MEETING
EXCERPTED DRAFT MINUTES OF THE JANUARY 12, 2011 MEETING
ITEM 2: ACTION: Water Shortage Implementation Plan
Senior Resource Planner Nico Procos provided a presentation, including the background, on the
development of the proposed plan to split up the water available in a water shortage condition (drought)
among the member agencies of the Bay Area Water Supply and Conservation Agency (BAWSCA). Under
the plan, water is divided by a formula which is weighted one-third on the Individual Supply Guarantee (the
long-term contractual entitlement) and two thirds on a seasonal usage calculation that penalizes water use
in the summer months. The formula is also bounded so that no agency is reduced less than 10% and no
agency is reduced more than 20% more than the average reduction for all agencies. The formula also
includes an adjustment for East Palo Alto to ensure that agency has enough water to meet basic health and
safety requirements. The formula expires in 2018 and is only in effect for water shortages that require
water use reductions of up to 20%. Procos stated that, for Palo Alto, the formula is not as beneficial as the
expired formula, but results in a lower reduction than the average reduction for the BAWSCA agencies.
Procos stated that the representatives of all the BAWSCA agencies that were involved in the development
and negotiation of the formula unanimously agreed to recommend the proposed formula to their governing
boards. If any agency does not approve the proposed formula, then the BAWSCA Board would consider
approval of a formula. If the BAWSCA Board were unable to approve a formula, then the San Francisco
Public Utilities Commission (SFPUC) would decide on the formula.
Commissioner Cook asked what happens if there is a reduction of greater than 20%. Assistant Director
Jane Ratchye replied that the SFPUC would determine the reduction formula in that event. However,
Ratchye noted that the SFPUC has adopted level of service goals for its Water System Improvement
Program such that the greatest water supply reduction is 20%. In addition, since the 1987 through 1992
drought, the SFPUC has adjusted its system operations to make water shortages less likely by preserving
water in storage rather than producing electricity and by calling for water use reductions earlier in a multi-
year drought event.
Chair Waldfogel asked if the formula would have been triggered in the past. Ratchye stated that she hadn’t
done the analysis, but said that she thinks it would have been triggered in the 1987 through 1992 drought.
Commissioner Berry inquired about the default process if any of the BAWSCA members did not approve
the new formula. Specifically, did staff have a sense what the SFPUC might do if they had to make a
decision on the process? Procos responded that the contract is clear that the BAWSCA Board of Director’s
would be given an opportunity to approve a new formula and the SFPUC would only act if the board did
not. Procos added that it is likely that the BAWSCA Board would exercise its authority to resolve the issue.
However, assuming the SFPUC was given the opportunity, Procos does not know what approach it may
take.
ACTION: Commissioner Berry made a motion to recommend Council approval of the proposed Water
Shortage Implementation Plan. Commissioner Melton seconded the motion. The motion carried
unanimously (6-0).
City of Palo Alto (ID # 1334)
City Council Staff Report
Report Type: Study Session Meeting Date: 2/7/2011
February 07, 2011 Page 1 of 4
(ID # 1334)
Title: Fire Services, Resources & Utilization Study
Subject: Fire Department Services, Resources & Utilization Study Presentation
Of Findings By International City/County Management Association and Systems
Planning/Tri Data Consultants
From: City Manager
Lead Department: City Manager
Recommendation
Staff recommends that Council receive and comment on the attached report from the
International City/ County Management Association (ICMA) and TriData, a division of System
Planning Corporation (SPC).
Executive Summary
TriData, a division of System Planning Corporation (SPC), was contracted, along with the
International City/ County Management Association (ICMA), to conduct a services, resources,
and utilization/deployment analysis of the Palo Alto, CA Fire Department. The attached report
includes not only the data analysis from the city’s computer aided dispatch(CAD) system, but
the findings and recommendations based on that data, as well as information provided by all of
the stakeholders of the study (FD staff, other city staff, City Council, City Administration, etc.).
Background
The scope of this project was to provide a third party independent review of the PAFD such that
the city could better understand how the current system of fire department operations was
working and to determine if the fire department could provide services more efficiently,
effectively, and/or reducing costs in some ways. Specifically, the scope of work required a
focused, objective analysis of overall fire department emergency response operations that
would analyze current resource deployment practices to assess the appropriateness of current
fire department minimum staffing levels in the context of call volume, response times, use of
overtime, deployment practices and employee safety.
Key areas evaluated during this study were:
Fire department response times (using data from the city’s CAD system);
Fire and EMS unit workloads;
February 07, 2011 Page 2 of 4
(ID # 1334)
Services and agreement with Stanford University;
Fire station and staffing locations/ concentrations; and
Fulltime staffing; use of overtime; auxiliary personnel.
Data was analyzed and a number of face-to-face and telephone interviews were conducted by
the consultants to complete the report, findings and recommendations.
A copy of the report was provided to the fire department union representatives to share with
fire department personnel the Wednesday prior to tonight’s meeting to gain additional
feedback including the offer to set up a meeting separate from the Council meeting for fire
department staff to discuss the report and its findings with the consultants.
Tonight, the consultants will make a presentation that will include an overview of their
methodology, key findings, and recommendations to the city to improve fire department
operations and deployment of personnel.
Discussion
The comprehensive report recommends a number of changes to fire department structure and
deployment based on actual data from the city’s CAD system as well as modern fire best
practices. In addition, the report highlights the need for some investment by the city in fire
department building infrastructure to achieve some of the recommendations such as a station
merger (see below). Findings are discussed in more detail in the report and some are subject to
meet and confer under existing union agreements, but significant recommendations being
made by the consultants include:
ORGANIZATIONAL STRUCTURE:
Implement a new organizational structure with the current police chief as public safety
director over police and fire and merge the support functions of budget/finance, HR,
IT and planning for police and fire under the public safety director;
Within the merged planning function for police and fire, hire a data/ GIS analyst for the
fire department;
Consider retaining a consultant to assist the city in setting up its ongoing data collection
and analysis process;
Move the senior staff of the PAFD to a single location, preferably with the police
department administration if police and fire are under one public safety director;
February 07, 2011 Page 3 of 4
(ID # 1334)
Discontinue the practice of developing entrance and promotional exams within the fire
department – use outside firm qualified/specializing in this type of testing;
Consider adding the rank of lieutenant to replace some existing captain positions –
under this scenario, a captain would be in change of the unit on one shift with
lieutenants supporting (would result in net reduction of captains – through
attrition); and
Combine the emergency management functions of fire and police under the public
safety director – hire a manager to lead this function with qualifications specific to
the field of emergency management – can be a civilian position.
DEPLOYMENT & RESPONSE TIME:
Establish performance goals for dispatch, turnout and travel times and analyze them
monthly and improve turnout times;
Merge Stations 2 and 5 near the intersection of Arastradero Road and Hillview Avenue
(infrastructure improvement needed to accommodate this recommendation);
Discontinue the practice of mandating the minimum number of on duty personnel
within the MOU;
Eliminate the fulltime staffing of Rescue 2 and cross-staff it and discuss with surrounding
jurisdictions the possibility of sharing the cost of operating this rescue as a ‘regional’
resource;
Staff a second medic unit 24/7 (using existing resources);
Eliminate one engine and continue to cross-staff one engine and the rescue, if Stations 2
and 5 are merged; and
Discontinue the overtime staffing of Station 8 on the present schedule and staff the
station only during high fire days as determined by Cal Fire; also consider contracting
with Cal Fire (or another agency), or developing an auxiliary from the existing CERT
members as an alternative; also investigate possibility of using technology to
monitor hot spots in this area and deploy/staff as appropriate.
OTHER RECOMMENDATIONS:
February 07, 2011 Page 4 of 4
(ID # 1334)
Consider contracting for implementation services to oversee the process of
implementing these recommendations and assist with the selection of a new fire chief
that would report to the director of public safety;
Implement a formal process of project management to include an evaluation of
progress on all projects assigned -- assign special projects to all officers with
battalion chiefs responsible for oversight of officers under their command, as well as
include performance on special projects in the evaluation process for promotions;
When new fire chief is hired, consider contracting the services of an organizational
development consultant to improve organizational performance, internal
communications, and professional development.
There are also a significant number of recommendations related to improved training and
development of staff, response and turnout times, workload analysis, and staffing changes, as
well as sworn staff to civilian personnel-related recommendations. All of which are described in
detail in the report. These will be covered by the consultants during their report to council at
the study session.
ATTACHMENTS:
Attachment A: Palo Alto CA FINAL REPORT 1-20-2011 pss EDITED II (PDF)
Prepared By:Pam Antil, Assistant City Manager
Department Head:James Keene, City Manager
City Manager Approval: James Keene, City Manager
Palo Alto Fire Department, CA
Fire Services Utilization
and Resources Study
Final Report
Submitted by:
Philip Schaenman, President
TriData Division, System Planning Corporation
3601 Wilson Boulevard, 5th Floor
Arlington, VA 22201
(703) 351-8300
Thomas Wieczorek, Director
ICMA Center for Public Safety Excellence
777 N. Capitol Street, NE; Suite 500
Washington, DC 20001
(202) 962-3607
January 2011
Fire Services Utilization and Resources Study
Palo Alto Fire Department, CA FINAL REPORT
TriData Division, ICMA Center for Public Safety Management January 2011
System Planning Corporation
Table of Contents
ACKNOWLEDGEMENTS ..........................................................................................................1
FOREWORD..................................................................................................................................3
EXECUTIVE SUMMARY ...........................................................................................................5
I. INTRODUCTION ......................................................................................................................8
Scope of Project ...........................................................................................................................8
Study Process ...............................................................................................................................9
Organization of the Report ..........................................................................................................9
II. ORGANIZATION AND MANAGMENT ............................................................................11
Major Issues Confronting the PAFD .........................................................................................15
Public Safety Organization ........................................................................................................17
Other Changes ............................................................................................................................21
Initial Steps Going Forward .......................................................................................................22
III. POPULATION GROWTH, RISK, AND DEMAND ANALYSIS .....................................24
Data Specification and Issues ....................................................................................................24
Population Growth and Development ........................................................................................28
Demand for Emergency Services ..............................................................................................33
Fire Risk Analysis ......................................................................................................................39
Emergency Medical Service Risk Analysis ...............................................................................47
Target Hazards ...........................................................................................................................53
IV. STATION LOCATION AND RESPONSE TIME ANALYSES .......................................55
Strategic Goals ...........................................................................................................................55
Response Time Analysis ............................................................................................................56
Measuring Response Time .........................................................................................................57
Palo Alto Response Times .........................................................................................................60
Workload and Performance Measurement ................................................................................67
Assessment of Fire Station Locations ........................................................................................76
Possible Fire Station Mergers ....................................................................................................82
V. ANALYSIS OF FIRE AND EMS OPERATIONS ..............................................................86
Overview ....................................................................................................................................86
Key Findings and Recommendations ........................................................................................88
Organization and Resources ......................................................................................................90
Emergency Response .................................................................................................................92
Operational Changes ..................................................................................................................93
Fire Services Utilization and Resources Study
Palo Alto Fire Department, CA FINAL REPORT
TriData Division, ICMA Center for Public Safety Management January 2011
System Planning Corporation
Staffing and Overtime Analysis .................................................................................................97
Emergency Medical Services ...................................................................................................101
Immediate and Long-Term Changes .......................................................................................107
VI. FIRE PREVENTION, TRAINING, AND 9-1-1 DISATCH ............................................109
Fire Prevention .........................................................................................................................109
Training ....................................................................................................................................112
9-1-1 Dispatch ..........................................................................................................................114
VII. QUANTITATIVE DATA ANALYSIS OF PAFD………………………………..
INTRODUCTION ...................................................................................................................116
A. AGGREGATE CALL TOTALS AND DISPATCHES ....................................................117
B. WORKLOAD BY INDIVIDUAL UNIT—CALLS AND TOTAL TIME SPENT ...........128
C. DISPATCH TIME AND RESPONSE TIME .....................................................................137
D. ANALYSIS OF BUSIEST HOURS IN A YEAR .............................................................149
APPENDIX I. CORRESPONDENCE BETWEEN CALL DESCRIPTION AND CALL
TYPE .................................................................................................................................156
APPENDIX II. WORKLOAD ANALYSIS FOR ADMINISTRATIVE UNITS AND NON
PALO ALTO UNITS .............................................................................................................160
Tables
Table 1. Call Types ................................................................................................................ 117
Table 2. Mutual Aid Calls ...................................................................................................... 119
Table 3. Calls by Hour of Day ............................................................................................... 124
Table 4. Number of Units Dispatched to Calls ...................................................................... 125
Table 5. Annual Total Deployed Time by Call Type ............................................................. 127
Table 6. Call Workload by Unit of Stations ........................................................................... 128
Table 7. Busy Minutes by Hour of Day ................................................................................. 131
Table 8. Engine/Ladder Truck Units: Total Annual Number and Daily Average Number of Runs by Call ........................................................................................................................... 133
Table 9. Engine/Ladder Truck Units: Daily Average Deployed Minutes per Day by Call Type
................................................................................................................................................ 134
Table 10. Ambulance Units: Total Annual and Daily Average Number of Runs by Call Type
................................................................................................................................................ 135
Table 11. Ambulance Units: Daily Average Deployed Minutes per Day by Call Type ........ 136
Table 12. Average Dispatch, Turnout, Travel, and Response Time of First Arriving Units by
Call Type ................................................................................................................................ 138
Table 13. Number of Total Calls for the First Arriving Units ............................................... 139
Table 14. Average Dispatch, Turnout, Travel, and Response Time of First Arriving Unit by Hour of Day ............................................................................................................................ 142
Fire Services Utilization and Resources Study
Palo Alto Fire Department, CA FINAL REPORT
TriData Division, ICMA Center for Public Safety Management January 2011
System Planning Corporation
Table 15. Cumulative Distribution Function (CDF) of Response Time of First Arriving Unit
for MVA and EMS Other Calls .............................................................................................. 144
Table 16. Average Response Time for Structure Fire and Outside Fire Calls by First Arriving
Fire Unit ................................................................................................................................. 145
Table 17. Average Response Time for Structure Fire and Outside Fire Calls by Second Arriving Fire Unit ................................................................................................................... 146
Table 18. Cumulative Distribution Function (CDF) of Response Time of First and Second
Arriving Fire Units for Structure and Outside Fire Calls ....................................................... 148
Table 19. Frequency Distribution of the Number of Calls ..................................................... 150
Table 20. Top 10 hours with the most calls received ............................................................. 151
Table 21. Unit Workload Analysis Between 8 a.m. and 9 a.m. on 17-Feb-2010 ................... 152
Table 22. Unit Workload Analysis Between 9 p.m. and 10 p.m. on 19-Sep-2009 ................ 154
Figures
Figure 1. Non-canceled Calls by Type and Duration ............................................................. 120
Figure 2. EMS and Fire Calls by Type ................................................................................... 122
Figure 3. Calls by Month ........................................................................................................ 123
Figure 4. Calls by Hour of Day .............................................................................................. 124
Figure 5. Number of Units Dispatched to Calls ..................................................................... 125
Figure 6. Busy Minutes by Hour of Day ................................................................................ 131
Figure 7. Average Dispatch, Turnout, Travel, and Response Time of First Arriving Units by Call Type ................................................................................................................................ 137
Figure 8. Number of Total Calls for the First Arriving Unit .................................................. 139
Figure 9. Average Dispatch, Turnout, Travel, and Response Time of First Arriving Unit by
Hour of Day ............................................................................................................................ 141
Figure 10. Cumulative Distribution Function (CDF) of Response Time of First Arriving Unit for MVA and EMS Other Calls .............................................................................................. 143
Figure 11. Cumulative Distribution Function (CDF) of Response Time of First, Second and
Third Arriving Fire Units for Structure and Outside Fire Calls ............................................. 147
Figure 12. Unit Workload Analysis by Call Type Between 8 a.m. and 9 a.m. on 17-Feb-2010
................................................................................................................................................ 153
Figure 13. Unit Workload Analysis by Call Type Between 9 p.m. and 10 p.m. on 19-Sep-2009155
APPENDIX A: INTERNAL COMMUNICATIONS, EVALUATION & PROJECT
MANAGEMENT .......................................................................................................... 116
APPENDIX B: LEAVE USAGE BY POSITION CLASSIFICATION ........................... 167
APPENDIX C: COST & PERCENTAGE OF OVERTIME BY PAY CODE, 2009 ........ 168
APPENDIX D: CITY OF PALO ALTO – EMS COLLECTION RATES ....................... 169
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APPENDIX E: ICMA OPERATIONS REPORT
Table 1: PAFD Authorized Positions, 2010…………………………………………………11
Table 2: Fire Department Budget, 2009–2010 .............................................................. 13
Table 3: Fire Department Salaries, 2010 ....................................................................... 13
Table 4: Pay Differential Schedule ................................................................................ 14
Table 5: ABAG and Palo Alto Population Projections ................................................... 29
Table 6: Incident Type Trends, 2000-2020 .................................................................... 37
Table 7: Total Emergency Incidents by Planning Areas, 2007–2009 ............................ 38
Table 8: Fire Trends, 2000-2020 ................................................................................... 42
Table 9: Total Fire Loss, 2000-2009 ............................................................................. 42
Table 10: Per Capita Fire Loss and Comparison Statistics, 2000-2009 ........................ 43
Table 11: Overall Fire Risk Classification by Planning Area, 2007-2009....................... 46
Table 12: EMS Risk Factors and Classification, 2007-2009 .......................................... 52
Table 13: NFPA 1710 Response Time Goals for Career Departments ......................... 57
Table 14: 80th Percentile Call Processing Time by Incidents Type ............................... 61
Table 15: 80th Percentile Turnout Time by Incidents Type ........................................... 62
Table 16: 80th Percentile Travel Time (First Unit) by Incidents Type ............................ 64
Table 17: 80th Percentile Total Reflex Time (First Unit) by Incidents Type ................... 65
Table 18: 80th Percentile Total Response Times by First Due Area ............................. 66
Table 19: Performance Level vs. Unit Availability for 5:00 Travel Time Goal ................ 72
Table 20: Responses by Station and Unit ..................................................................... 73
Table 21: Unit Workload (Unit Hours) ............................................................................ 74
Table 22: Station Workload (Unit Hours) ....................................................................... 75
Table 23: PAFD Facility Locations and Resources ....................................................... 90
Table 24: Level of Effort, PAFD ..................................................................................... 91
Table 25: PAFD Staffing Factor Analyses, FY2009–2010............................................. 98
Table 26: Distribution of Overtime Shifts, July 2009 to June 2010 ................................ 99
Table 27: Estimated Cost of Service and Cost Recovery, Palo Alto EMS ................... 104
Table 28: Deployment Changes – Immediate Opportunities ....................................... 107
Table 29: Deployment Changes – Long-Term Opportunities
(Stations 2 and 5 Merged) ........................................................................................... 108
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Figure 1: Current PAFD Organization ........................................................................... 14
Figure 2: Current PAPD Organization ........................................................................... 18
Figure 3: Potential Organization-- Police and Fire under a Public Safety Director ........ 19
Figure 4: Planning Areas ............................................................................................... 27
Figure 5: Actual (solid black) and Predicted (dashed green) Population ....................... 29
Figure 6: Palo Alto - Daytime Population Ratio Map ..................................................... 31
Figure 7: Actual (solid black) and Predicted (red) Emergency Incidents by Type ......... 36
Figure 8: Total Emergency Service Demand by Planning Areas, 2007-2009 ................ 38
Figure 9: Actual (solid black) and Predicted (red) Fires by Type ................................... 41
Figure 10: Fire Density, Dollar Loss, and Fire Deaths, 2007-2009 ................................ 45
Figure 11: Correlation between Population and EMS Calls for Service Study, 1980-2004 ...................................................................... 48
Figure 12: Population Density, 2010 ............................................................................. 49
Figure 13: EMS Incident Density, 2007-2009 ................................................................ 51
Figure 14: Fire Department Target Hazards .................................................................. 54
Figure 15: Components of Total Response Time .......................................................... 57
Figure 16: Fire Propagation Curve ................................................................................ 59
Figure 17: 80th Percentile Call Processing Time by Hour of the Day ............................ 61
Figure 18: 80th Percentile Turnout Time by Hour of the Day ........................................ 62
Figure 19: 80th Percentile Travel Time (First Unit) by Hour of the Day ......................... 64
Figure 20: 80th Percentile Total Reflex Time (First Unit) by Hour of the Day ................ 66
Figure 21: Performance Level vs. Unit Availability (Example) ....................................... 70
Figure 22: Performance Level vs. Unit Availability for 5:00 Travel Time Goal ............... 71
Figure 23: Unit Workload (Unit Hours) .......................................................................... 74
Figure 24: Station Workload (Unit Hours) ...................................................................... 75
Figure 25: Station Workload (Unit Hours) without Ambulances ..................................... 76
Figure 26: Current Fire Station Locations ...................................................................... 77
Figure 27: Four-and Six-Minute Travel Time Analysis................................................... 78
Figure 28: Current 4-Minute Station Overlap ................................................................. 79
Figure 29: Coverage - Station 1 and Station 3 Merger ................................................. 83
Figure 30: Station 2 and Station 5 Merger – Possible New Location ............................ 84
Figure 31: Hiring and Overtime Cost Comparison ....................................................... 101
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ACKNOWLEDGEMENTS
We wish to thank the members of the Palo Alto Fire Department (PAFD), city and police
department officials, and other contributors that provided valuable insight for this study. They
not only provided information and welcomed our visits to their areas but also interacted helpfully
with us throughout the study.
Acting Public Safety Director Dennis Burns and Deputy Fire Chief Roger Bloom along
with other career officers, firefighters, EMS personnel and support staff members were
extremely cooperative, gracious, and forthcoming during the project. They provided data,
facilitated tours of fire stations, and they discussed openly the challenges and opportunities
facing the organization.
Palo Alto Elected Officials
Sid Espinosa Mayor
Yiaway Yeh Vice Mayor
Karen Holman Council Member
Larry Klein Council Member
Gail Price Council Member
Gregory Scharff Council Member
Greg Schmid Council Member
Nancy Shepherd Council Member
Palo Alto City Management
James Keene City Manager
Pamela Antil Assistant City Manager
Palo Alto Fire Department
Nick Marinaro Fire Chief (ret)
Judy Jewel Deputy Fire Chief, Support Services
Gordon Simpkinson Acting Fire Marshal
Ron Bonfiglio Battalion Chief, Operations
Niles Broussard Operations
Kim Roderick EMS Coordinator
William Dale Captain, Operations
Brian Baggott Captain, Training Division and Vice President, IAFF Local 1319
Susan Minshall Interim Emergency Manager and PIO
Kevin McNally Treasurer, IAFF Local 1319
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Palo Alto Police Department
Charles Cullen Director, Technical Services Division
Ken Dueker Coordinator, Homeland Security
Although we received valuable input from a variety of sources, the findings and
recommendations contained in this report are entirely those of the TriData and ICMA project
team. Principal members of the team and their areas of responsibility are shown below.
TriData Staff
Philip Schaenman Corporate Oversight
Stephen Brezler Project Manager; Fire & EMS Operations
Markus Weisner Risk and Demand; Station Location Analysis
John Montenero Organization and Management; Service-Sharing Opportunities
Peter Moy Staffing, Overtime and EMS Cost Review
Maria Argabright Production Coordinator and Project Support
ICMA Center for Public Safety Management Staff
Thomas J. Wieczorek Project Oversight
Leonard Matarese Project Development and oversight
Dr. Dov Chelst Director of Quantitative Analysis
Gang Wang Data Analysis
Dr. Ken Chelst Quantitative Analysis
Alex Brown Project Coordination and Support
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FOREWORD
TriData, a division of System Planning Corporation (SPC), is based in Arlington,
Virginia. SPC is a 200-employee defense and national security contractor specializing in high-
level systems engineering and national security.
Over the past 29 years, TriData has completed over 250 fire and EMS studies for
communities of all sizes. In addition to this local government consulting, TriData undertakes
research in a wide range of public safety issues. TriData is also noted for its research on behalf of
the United States Fire Administration (USFA), Department of Homeland Security (DHS), and
other Federal and state agencies, as well as the private sector. TriData also conducts international
research on emergency response topics and has conducted extensive research on effective fire
prevention strategies in Europe and Asia.
_________
The International City/County Management Association (ICMA) is the premier local
government leadership and management organization. Since 1914, ICMA‘s mission has been to
create excellence in local governance by developing and fostering professional local government
management worldwide. ICMA provides an information clearinghouse, technical assistance, and
training and professional development to more than 9,100 chief appointed administrators,
assistant administrators, and other individuals throughout the world. The organization's resources
and services reach thousands of local, state, and federal government personnel, academics,
private sector professionals, citizens, and other individuals with an interest in effective
management at the local government level.
ICMA‘s members represent the administrative center of professional municipal, county,
and regional services that affect millions of urban and rural citizens on a daily basis. They are
responsible for the leadership that ensures strategic economic growth and management of public
services and infrastructure planning, investment, and development. Every day, local government
managers determine policy, programming, funding, and strategic decisions that impact the ability
of local resources to deal with the management and operations of public safety and legal
departments. Local government managers serve as the ―hub of the wheel,‖ coordinating efforts
and implementing strategies for maximum effectiveness and efficiency.
The ICMA Center for Public Safety Management is one of three Centers operating within
U.S. Programs. The Center analyzes police, fire and EMS using quantitative and operational
methods developed through years of research analysis. Members of the team were instrumental
in the development of the State of Israel EMS program. The developed methods have been used
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to provide technical assistance to more than 70 communities during the past two years. The
Center also undertakes research, participates with other organizations and governments to share
best practices, conducts training and education, and assists ICMA International in developing
countries. The Center works with ICMA Publishing to document practices and educate local
government leaders. Ongoing assistance is provided to the National League of Cities and
Department of Homeland Security for education and training of elected as well as appointed
officials.
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EXECUTIVE SUMMARY
TriData, a division of System Planning Corporation (SPC), was contracted, along with
the International City/ County Management Association (ICMA), to conduct a resource
deployment analysis of the Palo Alto, CA Fire Department. The Palo Alto Fire Department
(PAFD) protects over 77,000 residents, a major university (Stanford), a research facility
(Stanford Linear Accelerator), and the Palo Alto foothills. To accomplish its mission, 105
personnel are assigned to staff eight stations. Seven engines, one ladder, one rescue and one
advanced life support unit (ALS) are deployed to the eight stations 24/7. A second ALS unit is
operated on a part-time basis as is a basic life support (BLS) transport unit staffed weekdays by
civilian EMTs. During the high fire season, July to November, a wildland suppression unit is
also staffed.
Findings and Recommendations
The PAFD provides excellent service when responding to emergencies. However, the
PAFD, once considered a ‗best example‘ fire organization, has become a stagnant organization
and management is struggling, due in part to insufficient support staff. Labor-management
relations are good, but the MOU with firefighters is restrictive to the point that changes to shift
staffing cannot be made. Recommendations to improve the organization include:
Implement a new organizational structure with the current police chief as public
safety director over police and fire;
Hire a data/ GIS analyst;
Move the senior staff of the PAFD to a single location, preferably with the police
department administration;
Discontinue the practice of developing entrance and promotional exams within the
fire department;
Combine the emergency management functions of fire and police under the public
safety director.
Data collection is a significant issue for the Fire Department, which is using an older
version of the National Fire Incident Reporting System (NIFRS) and there are questions of data
quality and completeness.
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From 2000 to 2009, total calls increased only 19 percent but medical calls increased by
48 percent. The trend analyses determined that total calls are likely to continue to increase
slightly through 2020, with medical calls adding most of the demand. Fires, in particular
structure fires, are infrequent occurrences. Data showed that Palo Alto has a lower fire death rate
per capita than the US, the west coast, and communities of similar size. The average dollar loss
per fire incident is also lower than the US and communities of similar size, despite its relative
affluence.
Total response times, which include the three time segments of call processing (dispatch),
turnout (reaction time), and travel time, are generally good. However, turnout times are too long
and dispatch times were so low that it appears that the call-taking portion of the time segment is
not included on the time stamp. Travel times for the stations ranged from 4:30 for medical calls
to 5:22 for hazardous condition calls. Travel times are slightly higher than the recommended
metric of 90 percent arrival within four minutes. Station 4 (Middlefield) has the highest average
travel time (5:18) and Station 2 (Hanover) the lowest (4:04).
Recommendations to improve deployment and response include:
Establish performance goals for dispatch, turnout and travel times and analyze them
monthly; improve turnout times
Merge Stations 2 and 5 near the intersection of Arastradero Road and Hillview
Avenue;
Discontinue the practice of mandating the minimum number of on duty personnel
within the MOU;
Eliminate the fulltime staffing of Rescue 2 and cross-staff it. Discuss with
surrounding jurisdictions the possibility of sharing the cost of operating this rescue as
a ‗regional‘ resource;
Staff a second medic unit 24/7;
Eliminate one engine and continue to cross-staff one engine and the rescue, if Stations
2 and 5 are merged;
Discontinue the overtime staffing of Station 8 on the present schedule; staff the
station only during high fire days as determined by Cal Fire; also consider contracting
with Cal Fire (or another agency), or developing an auxiliary from the existing CERT
members as an alternative; and
Discuss with Menlo Park the possibility of sharing the cost of operating Station 1 in
Palo Alto with Station 7 in Menlo Park.
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This study also reviewed the fire prevention activities and training. Recommendations to
improve these areas include:
Fill the vacant fire marshal position and transition the fire code enforcement division
to a civilian (non-safety) staff; also add a public education specialist
Conduct a complete audit of all training requirements needs and prepare a multi-year
plan that includes staffing requirements and cost;
Implement a formal program of career and professional development, including
requirements for promotion for all officers;
Conduct more training during evenings and weekends; and
Regionalize the city‘s fire and EMS training program and plan for the replacement of
the city‘s training facility.
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I. INTRODUCTION
TriData, a division of System Planning Corporation and its partner consultant on this
project, the International City/ County Management Association (ICMA), were selected to
conduct an independent review of the City‘s emergency services, primarily fire and EMS.
The Palo Alto Fire Department (PAFD) protects a combined population of just over
77,000 residents in a uniquely complex area that includes a major university (Stanford), a
research facility (Stanford Linear Accelerator), and the Palo Alto foothills (25 square miles of
mostly open woodlands). To provide emergency services, the PAFD is deployed from eight fire
stations. Operating from these stations 24/7 are seven engines, one ladder truck, one rescue, one
ALS rescue, and one battalion chief. The fire department also provides one ALS rescue (12
hours per day) and a smaller engine (Type III) for the foothills area by assigning fire personnel
on overtime. The current service-delivery model requires a minimum on-duty staff of 30
personnel.
Usually managed by a fulltime fire chief, at the time of this study the police chief was
acting as the city‘s public safety director and was responsible for the executive-level
management of the fire and police departments. A deputy chief manages the fire department‘s
day-to-day activities.
Scope of Project
The scope of this project was to provide a third party independent review of the PAFD
such that city officials can understand how well the system is working. Officials also desired to
understand whether the fire department can provide services more efficiently. Specifically, the
city requested ―a focused, objective analysis of overall fire department emergency response
operations that will analyze current resource deployment practices to assess the appropriateness
of current fire department minimum staffing levels in the context of call volume, response times,
and employee safety‖.1
Key areas to be evaluated during this study were:
Fire department response times (using data from the city‘s CAD system)
Fire and EMS unit workloads
Services and agreement with Stanford University
Fire station and staffing locations/ concentrations
1 Request for Proposal, Attachment C, Part I.
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Fulltime staffing; use of overtime; auxiliary personnel
Study Process
The process used for this project combined multiple research techniques including personal
interviews, collecting and reviewing background information, analyzing CAD and incident data, and
performing geographic information system (GIS) analyses. We also visited each of the city‘s fire
stations and we drove throughout the city to understand its unique setting and geography.
TriData‗s project team conducted a series of meetings with local fire and government
officials. From the beginning and throughout the project, TriData coordinated its efforts through the
ICMA project manager since the ICMA was conducting a parallel study of the city‘s fire and EMS
demand. We also discussed with the ICMA our ideas and rationale for the major findings and
subsequent recommendations in this study. Throughout the project we maintained contact with the
city‗s designated project manager and we followed up with key individuals by e-mail and telephone.
Organization of the Report
Chapter II, Organization and Management – This chapter looks at the current
organization of the PAFD and the major issues confronting management. Also reviewed here are
the PAFD budget and the cost-sharing formula with Stanford University. A major
recommendation to combine the police and fire department support functions under a public
safety director is also presented in this chapter.
Chapter III, Population Growth, Risk and Demand Analysis – This chapter discusses
the pressures on the fire system, including an analysis of future population changes and a
projection of demand. These factors are important in evaluating future viability of the system and
identifying resource needs related to future demand for fire and EMS services.
Chapter IV, Station Location and response Time Analyses – This chapter presents the
geographic information system (GIS) analysis of station locations and response times. The
section discusses the station configuration recommended by this study and it includes the maps
depicting the current and proposed system.
Chapter V, Analysis of Fire and EMS Operations, Station Locations and Response
Times – This section discusses fire suppression, including discussions of the command structure,
staffing, and the deployment of apparatus and staff. Presented here are the major deployment
modifications recommended. A discussion of overtime and the staffing analysis is also in the
chapter.
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Chapter VI, Fire Prevention, Training and 9-1-1 Dispatch – This chapter discusses
the delivery fire prevention and code enforcement which are so important to risk management.
The PAFD training division and the operation of the city‘s 9-1-1 dispatch system is also
presented.
Chapter VII, Quantitative Data Analysis of Operations – This chapter analyzed
performance of the department using raw data captured by the Computer Aided Dispatch Center.
From the raw data, information was categorized and performance measures computed.
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II. ORGANIZATION AND MANAGMENT
The Palo Alto Fire Department (PAFD) is an all-career fire department providing all-risk
emergency services. Its Mission Statement is to protect life, property and the environment from
the perils of fire, hazardous materials, and other disasters; through rapid emergency response,
proactive code enforcement, modern fire prevention methods, and progressive public safety
education for the benefit of the community.
As with most fire departments the city had an appointed fire chief. At the time of this
study the fire chief had just retired and the city made a decision that the police chief would
become an interim public safety director with executive responsibility over the fire and police
departments. A deputy fire chief is responsible for the day-to-day operations of the fire
department, reporting to the interim public safety director.
The PAFD is organized similar to other fire departments; albeit it is unusual (but not
unique) in providing protection to a major university in a service-sharing arrangement. In 1976
the city and Stanford University merged their fire departments and two of the Department‘s eight
stations are located on University property. Under the merger, Stanford University funds 31
percent of the department‘s total budget, including operating and capital outlays.
The fire department has three primary divisions with a total staff of 121 full time
equivalent (FTE) personnel. There are also part -time (hourly) positions that equate to another
4.4FTE positions. The part- time positions are civilian (non-safety) positions used to staff a Basic
Life Support (BLS) ambulance on weekdays to handle inter-facility transports. Divisions within
the PAFD include emergency response, environmental and safety, training and personnel.
Authorized FTE personnel for the PAFD, not including the part-time BLS personnel are
shown in Table 1.
Table 1: PAFD Authorized Positions, 2010
Position Authorized Personnel
Fire Chief 1
Deputy Chief 2
Fire Marshal 1
Battalion Chief 3
Training Captain 1
EMS Coordinator 1
Fire Inspector 3
Hazmat Inspector 2
OES Coordinator 1
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Position Authorized Personnel
Administrative Associates 4
Fire Captain 27
Apparatus Operator 30
Firefighter 45
Total Full Time 121
Fire personnel are represented by the International Association of Fire Fighters Local
1319. The current four-year MOU expired on June 30, 2010 and at the time of this study the city
and union were negotiating a new agreement. Chief Officers are represented by the Palo Alto
Fire Chiefs‘ Association. Chief Officers are also in negotiations as their contract also expired on
June 30, 2010.
The FY2010 fire department budget is $26.3M. Because Stanford University pays 31
percent, the taxpayers are getting excellent value due to their lower cost per capita for emergency
services. The city could not reduce its fire budget by 31 percent if Stanford were not part of the
system because most of the present cost of operating the fire department would still be necessary
since it is unlikely the city could eliminate both Stanford stations if it did not protect the
University. Also the city would still need to cover the full cost of the administrative staff, its fire
chief, at least one deputy chief, and three battalion chiefs. The full salary (and benefits) for these
positions, and probably others, would be paid 100 percent by the city if it were not partnering
with Stanford.
Going forward it is in the best interest of the city to maintain its efficient service-sharing
relationship with Stanford and it should consider the University a valuable partner. As the city
considers future options on how to provide emergency service, it should also consider that cost
savings are important to the University as well, and consider ways to lower the University‘s cost.
Table 2 depicts the 2010 fire department budget. Of the 2010 budget, salaries and
benefits accounted for $21.6M or 82 percent of the fire department‘s total budget. Percentage
wise this is slightly lower than other fire departments where salaries and benefits typically
average from 85-92 percent of the total budget.
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Table 2: Fire Department Budget, 2009–2010
FY 2009 Actual FY 2010 Adopted
Salaries & Benefits $20,896,773 $21,579,512
Contract Services $444,441 $496,694
Supplies and Materials $328,002 $368,933
Facilities & Equipment $204,419 $225,621
General Expense $30,389 $30,570
Allocated Charges $1,492,645 $3,551,758
Total Budget $23,396,669 $26,253,088
Table 3 shows the salary for the various positions within PAFD. These were used as the
base point from which to estimate the savings or additional costs if the city implemented any of
the deployment changes recommended later in this study.
Table 3: Fire Department Salaries, 2010
Hourly Monthly Annual
Shift Employees
Battalion Chief $71.77 $12,440 $149,278
Fire Captain $43.48 $7,187 $86,249
Fire Apparatus Operator, EMT $34.94 $6,056 $72,687
Fire Fighter Paramedic $36.65 $6,353 $76,235
Fire Fighter, EMT $32.68 $5,665 $67,984
Fire Fighter Hazmat $34.27 $5,940 $71,284
Administrative and Support Staff
Fire Chief $83.76 $14,519 $174,221
Deputy Chief $73.90 $12,810 $153,712
Fire Marshal $72.12 $12,501 $150,010
Training Captain $60.96 $10,566 $126,786
EMS Coordinator $50.46 $8,747 $104,969
Hazmat Inspector $62.47 $10,874 $130,489
Fire Inspector $59.68 $10,345 $124,142
Administrative Associate II $31.84 $5,519 $66,227
The MOU now in effect requires employees to be paid for working out of classification
or maintaining certifications such as paramedic. Fire captains working a 40-hour week are also
paid a premium rate even though the hours worked per week are less than for captains assigned
to shift work. The rationale is usually that shift work is preferred over a weekday schedule
because while on shift work fire captains earn FLSA pay. Captains also lose holiday pay when
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on the 40-hour schedule. Pay for working out of classification and maintaining certifications
above those for other employees in the same classification are common practice in the other fire
departments.
Table 4 shows the pay differential for the professional qualifications within the current
MOU.
Table 4: Pay Differential Schedule
Classification Percent of Pay
Hazardous Materials 5% above normal rate
EMT 3% above normal rate
Fire Inspector Investigation $500 per month
Out of Class as Battalion Chief
Out of Class as Captain
10% above 5th Step Captain
Step for Step
Paramedic Differential 12.5% above normal rate
Fire Captain 40 hour/ week 5% above fire captain
Figure 1 depicts the PAFD organization as it currently exists.
Figure 1: Current PAFD Organization
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The fire chief‘s position is currently vacant. A deputy chief‘s position (training and
personnel management) is also vacant and the position is being filled part time by a retired
deputy chief. And there are other officer positions such as station captain that are currently
unfilled. Of the fire department‘s key management team, five senior positions are either unfilled
or have individuals acting out of classification. This situation is contributing to the fire
department‘s inability to be a forward looking organization. Positions unfilled or with
individuals in an acting capacity include:
Fire Chief – unfilled
Deputy Chief – one of two positions is part-time (contract)
Fire Marshal – acting
Battalion Chief – one of three positions is acting out of classification
OES Coordinator – acting
Reportedly, the city is not filling these positions until this study is completed and the way
forward is clearer. In light of the situation we agree this is the proper strategy. However the city
should begin to fill key positions as soon as possible after decisions have been made as to the
department‘s future direction.
Major Issues Confronting the PAFD
The PAFD provides excellent service when responding to emergencies. The fire
department personnel we met are truly interested in serving the city to the best of their ability.
However, there are major issues within the PAFD.
For many years the department was considered a ‗best example‘ fire organization, one
where innovation and forward thinking were considered the norm. The PAFD was one of the
first fire departments in the U.S. to have a female firefighter.
Over the years however, the fire department has become a stagnant organization. While it can
still be proud of its ability to keep the public safe when an emergency occurs, management of the
department is struggling, in part because there are few support staff to conduct important
planning activities. Additionally there is an insistence within the organization, even within
management, to focus most of its attention on fire suppression even when emergency medical
calls are the majority of the Department‘s business, and prevention is a key to reducing losses
and reducing demand (calls).
The labor approach in Palo Alto (and nationally) has been a strong aggressive push to use
all available means to protect the current system and to enhance services such that firefighter
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numbers are increased by placing restrictions in their labor agreements. In California, passage of
the Meyers-Milias Brown Act establishing meet and confer requirements for public employees
were the beginning of these efforts. The current MOU has staffing requirements that specify the
minimum number of personnel to be on duty. As a result, the city‘s ability to determine the
desired level of service is very much restricted. Changes to the deployment system in Palo Alto
have been difficult, if not impossible to achieve.
Even so, those with whom we spoke reported that labor-management relations between
the city and firefighters were generally good. For the city going forward, any hopes at changing
resource deployment for fire and EMS services will require modifications to language in the
MOU. For example, the fire department is currently required to staff its ALS rescues with two
paramedics even though one paramedic and one EMT is acceptable under the protocols of the
County‘s Health Officer, which regulates EMS service standards. To change EMS staffing to one
paramedic and one EMT, a change wanted by the fire department management staff, requires a
change to the MOU, or at least a side-letter agreement.
Other major issues determined during our review include:
A leadership malaise has occurred within the fire department over the past few years,
part of which is due to poor training for management staff
There is a an absence of relevant data to determine if the department is providing the
right services, at the right places, at the proper level
Firefighters though dedicated, spend little time on prevention activities and training
after their initial recruit training is poor
Officers get little training and there are low expectations for their performance
Separate OES operations within the police and fire departments are not coordinated
effectively2
Battalion chiefs, who are important in policy implementation, each have assigned
collateral responsibilities such as coordinating fleet maintenance and other support
activities. However, not all of them take their extra responsibilities seriously.
Reductions in the fire department‘s budget over the past few years have eliminated
important staff positions
2 As an example, all employees are to be trained in the National Incident Management System (NIMS) but
reportedly not all are receiving the training. Likewise, some city departments are reportedly not cooperating with OES at the level necessary to achieve an effective outcome in a major emergency.
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Fire management recognizes many of these issues and several commented about the
issues the department must prepare to address. Among them were:
A large turnover in fire department personnel is likely over the next few years as the
expected number of retirements increases
Apparatus, especially ambulances that are supposed to be replaced at four years, are
now over 10 years
Stations 3 and 4 are in need of major upgrades
The issue of adequate support staff has become critical
$1.1 Million was budgeted for overtime each year for the past 10, but overtime
continues to increase beyond that level12-hour medic unit was operated using
overtime for the past 21 years
Loss of key staff support means that the PAFD is only able to plan and address major
issues by using voluntary committees
Reductions and deferrals to capital projects must be addressed as the fire departments
facilities have become outdated and in some cases too small
Public Safety Organization
The city made the right decision to appoint the police chief as an interim public safety
director pending the outcome of this study. Although the appointment of the police chief was
intended as an interim measure until a new fire chief is appointed, there are opportunities to
address many of the issues in the fire department if the arrangement were made permanent.
Although this study did not include a review of the Palo Alto Police Department (PAPD),
out of necessity we met with police officials because the fire dispatch center is managed by the
police department. We also toured the dispatch center and met with various officials within the
PAFD. The fire chief‘s office and fire prevention offices are located at city hall as is the entire
PAPD operation.
A major problem in the fire department is management support. Functions such as
planning, data analyses, budget and finance, HR and IT all need major improvements. For the
police department, these are areas of strength. Like most police departments the PAPD relies on
data and planning to determine how best to deploy its resources.
Although the city may have intended the public safety director‘s position as a temporary
move, it should consider making it a longer-term arrangement and merge the support functions
of the police and fire departments. The fire department‘s need for improved staff support can be
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achieved if the departments were merged under a single director and the change would make the
operation of both agencies more efficient because of the shared support functions. The interim
director is a solid choice because he is well regarded within city government and the fire
department. He also understands the city‘s politics.
In addition to the benefit of improving the fire departments administrative functions,
combining support functions would also allow a new fire chief (or chief of operations) to focus
on improving the day-to-day activities within the fire department while the director focuses
attention on strategic planning, budgeting, and other executive functions, all of which would take
much of the fire chief‘s time if the organizations were separate. The city‘s emergency
management operation (OES) could also be improved by merging police and fire under a single
director. For Palo Alto, where threat of an earthquake is an ever-present concern, having close
police and fire coordination for emergency management is essential.
Figure 2 and Figure 3 show the current PAPD organization and how a combined
organization under a public safety director might look.
Figure 2: Current PAPD Organization
Police Chief
Personnel Services
Investigative
Services
Field Services
Field Services (Patrol)
Field Services (Parking)
Technical Services
Dispatching Services
Information Management
Administration
(Assistant Chief)
Animal Services
PAPD
FTE Positions: 154.5
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Figure 3: Potential Organization-- Police and Fire under a Public Safety Director
Public Safety
Director
Emergency Management
(Manager)
Police & Fire
Personnel Services Police & Fire Administration
City Manager
Police Services
Chief of Operations
Police Chief
Fire & EMS Services
Chief of Operations
Fire Chief
Police & Fire
Information Management, IT
and Planning
Police & Fire
Dispatching Services
-Training and EMS (1 - BC)
-Code Enforcement (1 - FM)
-Stations and Personnel (3 - BC)
- Field Services (Patrol)
- Field Services (Parking)
- Investigative Services
- Animal Services
Under a revised fire department structure as part of a combined public safety organization
with a dedicated director, there are several options. The city could eliminate the fire chief‘s
position and instead have a chief of operations equivalent to that of a deputy fire chief. Another
option is to retain the position of fire chief and eliminate one of the two deputy chief positions.
Either can be effective and would achieve some savings. That one of the two deputy chief
positions is already part time and the fire chief position is unfilled makes this a good time to
make such a change.
Recommendation 1: Implement a new organizational structure with the current police chief as public safety director. At the same time, merge the support functions of budget/ finance, HR, IT, and planning for police and fire under the public safety director.
If, as we recommend, the city decides to merge fire and police support functions, there is
also a need to improve data and GIS analyses within the PAFD. From our work on this project it
was evident that the fire department does not have the technical acumen in-house to analyze its
activities, response times relative to incident outcomes, and other important criteria. For the fire
department to build on the recommendations of this study and analyze possible changes beyond
those of this study, it should be able to conduct detailed analysis. To do so will require expertise
to evaluate fire loss, patient outcomes, and other activities related to the department‘s response
activities.
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Recommendation 2: Within the merged planning function for police and fire, hire a data/
GIS analyst specifically for the fire department.
As was mentioned the fire department has little experience with data analysis. For this
project we spent an inordinate amount of time getting the CAD data to match with incident
reports. The reason is that the two data sets often had different incident numbers and addresses
for the dame incident. As part of the process to improve data collection for management use, it
would benefit the city to have a consultant work with city staff on the issues of fire and EMS
data collection, and then set up the arrays such that analysis is straightforward.
Recommendation 3: Consider retaining TriData or similar consultant to assist the city in
setting up its data collection and analysis process.
As mentioned above, the fire chief‘s office and fire prevention staff are located at city
hall along with other city agencies and the police department. However, most of the fire
department‘s command staff such as the shift battalion and deputy chiefs are located at Station 6
on the Stanford campus. While fire departments often decentralize their operation to maintain
good response times, it is not effective for Palo Alto‘s situation to have the management team
split up. The battalion chiefs, who are managers, are not as engaged on important management
issues and as a result the city is losing valuable contributions of these managers. For small
organizations it is preferable for the entire management team be located in a single location
where they can collaborate and function as a cohesive team. That the fire chief is at city hall and
other command officers are at Station 6 is a contributing factor to the organization‘s
ineffectiveness.
Space to accommodate the PAFD management team at one location is a problem. There
is insufficient space at Station 6 to move the operation from city hall to Station 6 and there is not
enough space at city hall to accommodate a move of chiefs from the station to city hall, either.
As the city makes its decisions of whether police and fire support functions are merged, a major
consideration should be that the entire management staff of the fire department is located at one
location.
Recommendation 4: Move fire management and the senior staff of the PAFD to a single location, preferably along with the police department administration if police and fire are merged under a public safety director. Leasing space may be preferred to constructing a new
facility.
Just as location is hindering the fire department‘s effectiveness, so too are the
expectations of managers throughout the entire department. Though not totally clear as to why,
the expectation of officers is not very high in the PAFD. In many departments battalion chiefs
and even captains have significant responsibilities and they have specific goals to accomplish,
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typically within those of the department‘s strategic plan. In some ways the low expectation of
officers is emblematic of the fire service overall because fire officers are promoted from within
the ranks and then are required to manage the labor group from which they were part.
A result of the location problem and not having all chief officers (and captains) fully
committed to solving problems and offering new solutions is that all issues eventually find their
way to top of the food chain where the fire chief or a deputy chief becomes overburdened. This
situation is occurring in the PAFD.
Recommendation 5: Implement a formal process of project management to include an evaluation of progress on all projects assigned. Assign special projects to all officers with
battalion chiefs responsible for oversight of officers under their command. Include performance on special projects in the evaluation process for promotion. Further discussion on
ways to improve the PAFD by a project management approach is provided in Appendix A.
As fire organizations in California go, the PAFD is not unusual in that all shift officers at
the company level are fire captains. This arrangement, though it works, is less effective and more
costly than if the fire department had a subordinate officer position below a fire captain. In San
Francisco and other departments, lieutenants are the first-line supervisors of a shift and report to
a captain who is the company commander. If the city desires to improve the management team
within the fire department while also addressing cost, it could implement the rank of lieutenant.
As the fire department is contemplating promotions for captains who are retiring, now is a good
time to consider such a move. If implemented through attrition, the current staff of captains
would remain at their present rank until they retire and new lieutenants are promoted.
Recommendation 6: Consider adding the rank of lieutenant. Under this scenario a captain would be in charge of the unit on one shift with lieutenants on the other two shifts. This change would result in a net reduction of captains (through attrition) and approximately a ten
percent savings per FTE position as each captain is replaced by a lieutenant. Span-of-control,
supervisory oversight, and professional development are also improved.
Other Changes
For a long time the fire department has prepared and administered its own promotional
exams and intake processes for new firefighters. This is a highly unusual practice and few fire
departments have the skill set (and time) to perform such a major HR function. A deputy chief,
who by all accounts is very knowledgeable about the promotional test and requirements, is the
lead individual for the PAFD.
Taking on such an activity within an already short-staffed management team does not
seem to be a good use of resources. Also, developing and administering promotional
examinations and recruit testing are two areas that subject the city to increased legal exposure.
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For these reasons, many cities either have their central HR division administer exams, or they
contract these services to a qualified vendor. The city might also consider improving the
efficiency of the testing process by partnering with surrounding communities to standardize the
process since they too have the same needs.
Recommendation 7: Discontinue the practice of developing entrance and promotional exams within the fire department and contract these services to a qualified vendor or to the city’s HR division. At the same time, standardize the examination process and timing of promotional
exams with other fire departments in the county to improve efficiency.
A major finding of our review of the management structure and operation is the
disjointedness of the city‘s emergency management efforts within OES. For this project we met
with the OES coordinator within the police and fire departments. Both agencies have a
coordinator and yet the level of coordination is less than desirable. Fortunately, management
within the police and fire departments both acknowledge that OES is not as effective as it could
be. On the positive side, individuals responsible for OES have developed very good relationships
with large corporations and citizen groups such that the effort can be improved if the
management structure were changed.
Recommendation 8: Combine the emergency management functions of fire and police under the public safety director. Hire a person as the manager with qualifications specific to the field of emergency management. The current coordinators in police and fire can be support staff to
the EM director; However, it is suggested that the current fire position coordinating EM be
changed to a civilian.
Initial Steps Going Forward
As the city begins to initiate changes recommended by this study, there is a need to infuse
a new culture and ideas into the fire department. One way to do this is to hire a new chief from
the outside, which many cities do. However, hiring a new chief from the outside is not always a
good idea. There are many examples where a new fire chief had vastly different ideas on the
changes to make for the fire department and it overall direction for the future.
To avoid such a situation in Palo Alto, the city should consider using an outside
consultant to begin the implementation process of this study‘s major initiatives while at the same
time assisting the city in the selection of its new fire chief (or chief of fire/ EMS operations,
whichever the case might be). In so doing the city can begin to implement the required changes
within the fire department. The added advantage is that potential candidates understand the city‘s
long-range plan for the fire department and the candidates can be assessed as to their
understanding of the city‘s plan. New ideas that support the city‘s plan can also be solicited from
the candidates.
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Recommendation 9: At the initial stage of a police and fire functional support merger, contract for implementation services to oversee the process and assist with the selection of a new fire chief, who then would report to the director of public safety.
Recommendation 10: When/if a new fire chief is hired, consider contracting the services of
an organizational development consultant to improve organizational performance, internal
communications, and professional development.
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III. POPULATION GROWTH, RISK, AND DEMAND ANALYSIS
This chapter discusses the major factors that drive emergency service needs: population
growth; risk and demand. The assessment of risk is critical to not only the determination of the
number and placement of resources, but also to the mitigation measures that may be available to
the fire department.
Data Specification and Issues
There were some significant data issues during this study that hindered our risk and
demand analysis. We used both National Fire Incident Reporting (NFIRS) data and Computer
Aided Dispatch (CAD) for our analysis, and had problems with both sets of data. We also had
some difficulty conducting the risk and demand analysis by community neighborhood, a
preferred methodology, particularly for larger communities.
Although Palo Alto does have designated neighborhoods, they are not used extensively
for planning purposes. For this study it was difficult in some cases to place a particular incident
within the correct neighborhood. However the results do appear to be close enough to understand
the emergency call situation for the city as it relates to its various communities. Going forward
the fire department can improve its analysis and use these neighborhoods for planning purposes.
NFIRS Data Issues – The National Fire Incident Reporting System (NFIRS) is a system
established by the National Fire Data Center of the United States Fire Administration (USFA) to
gather and analyze information on the magnitude of the Nation's fire problem, as well as its
detailed characteristics and trends. The first version of NFIRS released in 1975 only collected
fire incident data on a paper-based form. Over the last 35 years, the system has progressed to
version 5.0 and now includes EMS, hazmat, and other data collection modules to reflect the all-
hazard nature of current-day fire department work.
Although Palo Alto Fire Department does collect NFIRS data, it is still using an older
version of the system and there were questions of data quality and completeness. The fire
department provided us data from 2004 through the present, but the data prior to 2007 was
missing approximately 80 percent of incidents. The fire department staff worked with Zoll Data
Systems, their NFIRS software vendor, to troubleshoot the problem, but no solution was found.
Ultimately, staff at the dispatch center had to tap into the underlying database structure to
provide us raw data for fire department incidents from 2000 to present.
Recommendation 11: Upgrade NFIRS data collection to version 5.0 and establish a process by which the fire department can readily access NFIRS data for conducting analysis.
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Recommendation 12: Continue to work with Zoll Data Systems to fix 2004-2007 incident records. Historical data plays an important role in fire department strategic planning and it is important that PAFD has accurate and complete NFIRS data.
CAD Data Issues – Computer Aided Dispatch (CAD) data provides a permanent record
of communications between the dispatch center, the public, and fire department units in the field.
Typically CAD data includes an incident dispatch type, incident address, incident coordinates,
and response timestamps for all responding units. Although we received great cooperation and
help from the dispatch center technical staff, we identified some critical data issues.
The current Palo Alto CAD system is outdated and does not track incident coordinates.
Newer CAD systems allow call-takers and dispatchers to display and verify incident locations in
real-time. These systems record an accurate GPS coordinate for each incident (assuming
dispatchers correctly verify incident locations). Palo Alto is still using an older system where
units are picked based on an address database rather than real-time address mapping. In this
system, call-takers have to either input addresses that perfectly match up with the database or
manually figure out where an incident is located and what units to dispatch. This type of system
has no way of determining or recording GPS coordinates and, as a result, there is no definitive
incident location recorded. This type of system limits the accuracy of neighborhood-level fire
department analysis that depends on knowing where all incidents are located.
Recommendation 13: Upgrade the CAD system so that GPS coordinates are collected for all incidents.
Beyond the lack of coordinates, there are some inherent problems in using CAD data for
conducting performance measurement. CAD data typically contains many inaccurate records. It
is rare to find fire departments that actually analyze their data on a regular basis and, as a result,
there is often no driving force for insuring data accuracy. The CAD data we received from the
Palo Alto dispatch center contained many incidents that were missing unit timestamps, had
clearly incorrect unit timestamps or showed duplicate unit responses on the same incident. To
correct this problem, a better system needs to be put in place for accurately recording fire
department performance.
We recommend putting in place a data quality program encourages the fire department
staff to verify and address data inaccuracies. CAD data is typically transferred over the NFIRS
software/database where line-staff and supervisors can review and correct data. A captain
entering incident data should notice if the incident shows incorrect timestamps or apparatus and
can work with supervisors and/or the dispatch center to correct these inaccuracies before they
become part of the permanent data record. Regular monthly data analysis reports distributed to
the entire department can also identify potential inaccuracies in the data collection process.
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We did not have a chance to conduct an in-depth review of the CAD/NFIRS interface,
nor did we get into the details of how the fire department reviews, verifies and corrects incident
data. Although the fire department probably does have some data review procedures in place, the
CAD and NFIRS data issues we identified in this study highlight the need for updating and
improving the entire process.
Recommendation 14: Work with dispatch staff, the CAD software vendor, the NFIRS software vendor, and line-staff to put in place a process by which the final incident data entered into the database contains no gross inaccuracies.
Planning Area Issues – It is good practice for fire departments to consider risk and
demand at a neighborhood level. In order to accomplish this, fire departments must have some
predefined planning areas by which to summarize incident information. It was apparent during
our study that Palo Alto did not have any planning areas that could be used for fire department
analysis. In the Land Use section (chapter 2) of the Palo Alto Comprehensive Plan, it states that
―areas are classified as Residential Neighborhoods, Centers, or Employment Districts‖ and that
―understanding the linkages and connections between these areas and within the region is critical
to integrating land use and transportation planning.‖ These areas are, however, not particularly
conducive to conducting fire department planning because many of the ―planning areas‖ are only
a couple blocks large to encompass individual development projects.
Palo Alto also has a set of historical neighborhoods and political neighborhoods, but
neither of these neighborhood sets covered the entire Palo Alto Jurisdiction. Ultimately, we had
to create our own planning areas for this study. We used Palo Alto‘s 24 historical neighborhoods
and added the Stanford University Campus, the commercial area around Stanford shopping
center, and the Bayshore area.
Note: When we refer to planning areas in this report, we are referring to these 27 areas
rather than the Palo Alto Comprehensive Plan ―areas.‖ Figure 4 shows the 27 planning areas
used for our neighborhood-level risk and demand analysis in this chapter.
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entered addresses or missing incident addresses. Palo Alto does have a significant problem of not
being able to match incident geocodes to correct addresses. Thus for this study we geocoded
three years of data (2007-2009) to achieve a better match rate (97 percent). This means that only
three percent of incidents were not located and, thus, not included in the neighborhood-level
analysis.
Population Growth and Development
For this study the project team met with the Palo Alto Planning department and reviewed
the ―Joint City Council / Planning & Transportation Commission Study Session Regarding the
Comprehensive Plan Amendment and Housing Element Update‖ to better understand what
changes are predicted for Palo Alto over the next ten years.
Residential Population Growth – Palo Alto‘s population grew rapidly from 1950 to
1960, more moderately from 1960 to 1970, and remained fairly level from 1970 to 1990. In the
1990s there was another gradual population increase followed by a slight dip in the early 2000s.
From 1997-2008 there was a large amount of development taking place in Palo Alto,
which manifested itself as a population increase in the late 2000s, just before the recent
economic downturn. The Association of Bay Area Governments (ABAG) predicted a 2020
population of 70,400 (14.4 percent growth) largely based on the very recent period of accelerated
growth, but Palo Alto planners do not believe this prediction to be accurate. Based on their
limited land availability and limited redevelopment potential, Palo Alto developed an in-house
set of population predictions. Both the ABAG and Palo Alto projections are shown in Table 5.
Based on our discussions with Palo Alto planners, we are assuming the Palo Alto projections are
a more accurate prediction on which to base fire department incident trends.
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Table 5: ABAG and Palo Alto Population Projections3
Figure 5: Actual (solid black) and Predicted (dashed green) Population4
3 City Manager Report to Council; Comprehensive Plan Amendment and Housing Element Update, March 3, 2010. 4 Ibid.
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Daytime Population – Residential population provides only a part of the total growth
picture because of the impact that jobs and commuters have on the non-residential / daytime
population. This component of growth is an especially important consideration for Palo Alto
where a large number of commuters access the downtown and university avenue region during
business hours.
The Palo Alto Cal Train station is second busiest station on the line because of all the
commuters coming into the Stanford Research Park, the downtown area, and the California
Avenue area.
Figure 6 shows us the ratio of daytime population to residential population to provide an
idea of where there are large population differences based on the time and day. This map uses a
predefined ESRI data layer (prepared by our GIS software vendor) that shows higher
daytime/nighttime population ratios in darker purples and lower daytime/nighttime population
ratios in lighter purples.
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It can be seen that Stanford University, the eastern portion of Downtown North,
University Park, the western portion of University South, the research park, large parts of Green
Acres, Charleston Terrace, and most of the neighborhoods just south of Alma Street all have
significant daytime populations. This is significant because demand is affected by large daytime
population increases, a fact that is relevant in planning the deployment of resources, especially
for EMS.
Expected Development – As will be discussed in the EMS risk section of this chapter,
the number of EMS incidents is almost directly proportional to population. Understanding the
expected population changes before they occur help the fire service to prepare for changes in
service demand. Furthermore, it is necessary to plan adequate fire service protection for new
buildings. New development and growth areas always need to be considered in the evaluation of
fire station and apparatus locations.
Palo Alto currently has no vacant land inventory and the planning department stated that
the urban area of the city is fully built out. Although the city does have additional vertical
capacity, it is questionable how much vertical development will actually occur. Buildings have a
max height of 50 feet downtown, 30-35 feet in the El Camino Real area, and there are a couple
other areas that are zoned for higher density growth and building heights up to 50 feet.
A big project on the horizon is the Stanford Medical Center expansion that will account
for an additional 2,000 jobs. This project is not expected to be completed until after 2020.
There is also a big push to build more houses because of all the businesses in Palo Alto,
but equal pushback from the community about growth because of schools and infrastructure
concerns. The planning department predicts an average annual increase of 100 housing units
going forward, which will have minimal impact on EMS. It is expected that the California
Avenue area will continue to grow and that the commercial area along El Camino Real will
continue to see increases in residential population because the zoning allows for mixed-use
commercial/residential projects. Planners also expect some additional development in the
downtown area.
Because of the current economy and the fact that Palo Alto is pretty much built-out, there
is very little on the development front that will have a large impact on the fire department. The
fire department should, however, keep in close contact with the planning department and work
with them to ensure that any large developments will have adequate emergency services
performance.
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Demand for Emergency Services
Demand is defined as the number of emergency incidents that required fire department
intervention. In this section we review jurisdiction-wide incident type counts, make incident type
forecasts, and review incident type breakdowns by the 27 planning areas. Understanding both
current and predicted future demand will assist the city and fire department officials to make
important decisions in the following areas:
Fire Unit Locations – Planning areas with high levels of demand show where fire
apparatus should be located. Further understanding of the types of incidents in each
area helps to determine the type of response equipment is most appropriate.
Weight of Response – The demand analysis shows the number of fires versus the
number of fire alarms. A higher weight of response is prudent for planning areas with
higher-risk properties, and where more structure fires actually occur.
Prevention – Some areas have such a high demand for emergency service that
prevention and education efforts must often be increased.
Jurisdiction-Wide Incident Type Trends and Predictions – Using a statistical
software package, a multi-linear regression procedure was used to investigate how both time and
population affect each of the individual incident types. (Time reflects changes in inclination to
use EMS and factors other than population growth per se.) A best-fit multi-linear model was used
to analyze each incident type and the population projections (discussed earlier) and these were
then used to predict future demand. Certain incident types, such as EMS, are much more
dependent on population than others. This is all built into the multi-linear regression model.
In statistics, linear regression is an approach to modeling the relationship between a
dependant variable y and one or more independent variables denoted X. For our incident type
trending, we are using year (x1) and population (x2) to predict incident type totals (y). We
realize that time and population are not the only factors determining emergency services demand,
so the model is not perfect for predicting the exact number of incidents. The use of linear
regression is useful in that it shows trends, and trends are valuable for planning purposes.
Ideally, we would include information about housing stock, population demographics and
other variables in our model. Although many of these additional statistics are available as
historic data, they are usually not projected by jurisdictions. We would need both historical and
projected values to use within our model. For that reason, we have chosen a simpler model that is
only based on two inputs.
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For any model, it is necessary to say how statistically accurate it is, or what the
confidence is in the estimate. s. For example, if we predict that there will be 200 fires ten years
from now, we also have to state the confidence limits of that prediction. The confidence interval
is a statistical plus/minus calculation. To continue with the fire example, we might say there will
be 200 fires, plus or minus 50. This gives the reader both a prediction and a range within which
we are fairly certain (95 percent certain to be exact) that the eventual total will fall.
The confidence intervals are the result of a statistical calculation that analyzes how
accurately our prediction model represents the actual data. A very good model will have a small
confidence interval. Our "Total Incidents" predictions usually have small confidence intervals
because the annual totals stay fairly steady and trends typically remain uniform from year-to-
year; as a result a multi-linear regression is able to make fairly accurate predictions for total
incidents for at least several years into the future. The further into the future, the wider the
confidence limits.
Large confidence intervals occur when there are big incident type fluctuations from year-
to-year that are inconsistent and cannot be accurately modeled with any of the independent
variables (time and population). For instance, if the annual number of fires fluctuates up and
down 30 percent from year-to-year, the model cannot accurately predict the exact number of
fires for a given year. In that case, there would be a large confidence interval that essentially says
we predict X, but the number could be much higher or much lower.
When combining large confidence intervals with incident types that already have low
annual totals (e.g. fires), it is not uncommon to see confidence intervals that drop to zero.
Although we know it is unlikely fires will drop to zero, our model may not be able to statistically
confirm that. It is for that reason that we have to combine judgment with these statistical models
to ultimately decide what direction we expect a particular incident type to trend. Our statistical
projections are by no means perfect, but rather tools to help understand incident type trends and
identify potentially extreme increases or decreases of emergency demand.
The figures on the next page show the trends by incident type and projections for 2010
through 2020. The black line that stretches from 2000 to 2009 represents actual incident totals
for those years. The red line that stretches from 2009 to 2020 represents the predicted incident
totals for those years. The blue lines above and below the predicted values show the 95 percent
confidence interval (meaning that statistically there is a 95 percent chance that the actual incident
total will fall within that range).
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Again, it must be remembered that as a statistical prediction judgment should also be
considered. A solid understanding of the underlying factors that drive demand for local
emergency services combined with statistical forecasting like that provided in this section is a
powerful combination for successful deployment planning.
Figure 7 and Table 6 that follows show the total incident projections and the projections
for various incident types.
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Table 6: Incident Type Trends, 2000-2020
Incident Type 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 P-2010 P-2020
EMS 2742 3233 3492 3194 3381 3418 3517 3932 4211 4070 4447 5845
Alarm 1306 1334 1301 1349 1259 1170 1253 1165 1116 1106 1035 751
Good Intent 527 473 408 364 418 630 517 492 376 377 330 242
Cancelled 295 211 312 276 262 394 467 612 649 606 798 1327
Service Call 416 353 376 361 398 377 397 382 366 321 313 261
MVA 262 316 287 315 267 245 268 240 293 301 316 318
Fire 195 237 236 242 187 199 181 202 176 209 194 158
Hazardous Condition 280 278 252 179 187 203 174 151 169 147 167 33
Rescue 50 48 35 32 32 36 59 83 96 85 132 205
Undefined NFIRS Code 87 99 36 18 51 65 33 25 34 19 33 0
Unfounded 3 5 6 6 4 28 73 83 100 114 162 315
Standby 23 8 11 7 20 11 6 7 2 7 2 0
Rupture, Explosion, or Overheat 19 16 6 4 4 5 13 7 5 3 8 0
Severe Weather & Natural Disaster 2 1 3 0 0 2 0 1 0 1 1 0
Total Incidents 6207 6612 6761 6347 6470 6783 6958 7382 7593 7366 7938 9417
From the analysis it was determined that total incidents appear to be very slightly
increasing. Over the last decade, total incidents have increased from 6207 in 2000 to 7366 in
2009, a 19 percent increase. Over the same time period, EMS incidents increased from 2742 to
4070, a 48 percent increase! We also note that the total number of fires has remained relatively
unchanged over the last decade, staying between 201 and 275 fires per year. Should these trends
continue, we would expect 9538 total incidents, 5842 EMS incidents, and 172 fires in 2020.
Again, the calculation is predicated on a multi-linear regression that includes population
predictions. For the city it should consider the blue line (confidence interval ranges) rather than
the actual prediction. The confidence interval ranges do show that statistically it can be expected
that total incidents will increase slightly over the next ten years, mostly due to increased EMS
incidents. The number of fires is expected to remain relatively unchanged.
Although there are certainly other incident types that show increases or decreases over
the last decade (e.g. Alarms and Hazardous Condition), do not read too much into these trends.
These graphs are based on information entered by firefighters after returning from an incident.
Because different people may code the same incident in different ways (there are hundreds of
different incident type codes), there will be discrepancies in the data.
Typically fires and EMS incidents are fairly straightforward to code and, as a result, we
place much more value in the reliability of those trends; they also happen to be two of the more
important incident types when it comes to fire department workload. Total incident counts
should also be fairly reliable because these counts do not depend on how the incident type was
coded.
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Demand by Planning Neighborhoods – The following graph and table show emergency
services demand by planning area. The length of each bar represents the total number of
incidents that occurred in that planning area from 2007 to 2009. Within that bar, the different
incident types are represented by different colors depicted in the legend. Please note that these
values are not normalized. Planning areas that have particularly large land areas may have high
emergency services demand, yet have relatively low emergency services demand per capita or
per square mile.
Figure 8: Total Emergency Service Demand by Planning Areas, 2007-2009
Table 7: Total Emergency Incidents by Planning Areas, 2007–2009
EMS Alarm Can-celled Good Intent Service MVA Other Fire Hazard
University Park 4894 1119 753 453 476 277 287 243 180
Commercial Area 3024 583 529 208 176 155 123 93 52
Evergreen Park 2227 484 230 183 150 113 66 75 75
University South 1550 332 173 124 124 69 59 20 45
Downtown North 1014 211 180 100 74 85 74 58 53
Ventura 1001 244 154 108 125 48 40 40 48
Charleston Meadows 744 182 124 77 73 38 32 35 26
Charleston Terrace 675 191 83 89 77 55 32 45 30
Greenmeadow 730 167 119 81 58 28 33 28 35
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EMS Alarm Can-celled Good Intent Service MVA Other Fire Hazard
Fairmeadow 620 179 74 95 32 32 53 42 32
Leland Manor / Garland 534 175 103 75 75 48 24 39 24
Midtown / Midtown West 592 124 80 63 63 31 42 33 25
Barron Park 566 133 62 76 63 31 31 37 23
Old Palo Alto 528 117 92 76 62 45 28 18 18
Community Center 495 103 135 58 45 42 22 22 26
College Terrace 551 86 57 69 52 46 6 11 34
Palo Verde 528 91 70 56 53 22 22 31 16
Southgate 482 112 112 32 16 16 32 0 48
Duveneck / St Francis 451 93 88 44 59 34 25 20 22
Crescent Park 423 127 83 51 40 24 22 35 28
Professorville 403 113 38 38 101 50 13 0 76
Green Acres 447 122 68 48 48 29 20 9 14
Research Park 272 131 57 31 18 23 17 17 14
Stanford 159 78 27 19 13 10 12 10 6
Bayshore Area 26 7 5 3 1 3 2 2 2
Palo Alto Foothills 12 4 5 1 1 2 1 1 0
Fire Risk Analysis
Fires are a small percent of total emergency services demand, but fire suppression
activities require more personnel to mitigate than do most other emergencies. The fire risk
assessment in this section evaluates the overall trend in fires, the probability of fires in different
planning areas, and the consequence or likely severity of fires in different planning areas. All of
these factors were considered for the overall protection requirements of each planning area.
Fire Type Trends – There has been very little change in the number of fires from 2000-
2009. Vehicle and confined structure fire categories do have some up and down, but for such a
specific category that there are less than 60 incidents per year, it is expected that there be some
annual variability. Although PAFD should always work towards reducing fires through
prevention efforts, the lack of any significant increase in fires while population has very slowly
increased is good.
It should be noted that in the following figure, structure are broken out into several,
somewhat unusual classifications. These are not our choice of classification, but rather how the
US Fire Administration NFIRS specifications code fire types. The following is brief explanation
of these different structure fire types:
Structure Fire (confined) – This code is used to describe a fire that was inside a
structure, but confined to something like a cooking pot.
Structure Fire (non-building) – This code is used to describe a fire that occurred in
a non-building structure such as a bridge or pier.
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Structure Fire (portable) – This code is used to describe a fire that occurred in a
portable building such as a mobile home or portable classroom trailer.
Structure Fire (other) – This code is used to describe structure fires that cannot be
classified into one of the other categories.
Structure Fire – The NFIRS coding includes catchall codes that describe an incident
type, but do not include details. This code is the catchall code for structure fires.
Figure 9 shows actual and forecasted fire incidents from 2000 to 2020. The red line in
this graph shows the predicted number of fires using the same multi-linear regression prediction
methodology as earlier. Blue lines above and below the prediction show the 95 percent
confidence interval. The black line from 2000 to 2009 shows the actual fire incident counts.
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Table 8: Fire Trends, 2000-2020
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 P-2010 P-2020
Outside Fire 55 82 73 86 70 67 57 74 65 92 86 97
Structure Fire (contained) 39 46 56 50 41 66 48 54 50 41 36 34
Vehicle Fire 47 45 33 42 32 24 25 27 17 30 27 4
Other Fire 25 27 39 27 19 13 21 22 18 26 26 19
Structure Fire 18 26 27 24 17 22 25 18 20 14 12 4
Structure Fire (other) 9 6 4 11 6 1 0 3 3 3 3 0
Structure Fire (non-building) 0 2 3 2 2 4 4 3 1 1 0 0
Structure Fire (portable building) 2 3 1 0 0 2 1 1 2 2 4 4
Total Fires 195 237 236 242 187 199 181 202 176 209 194 158
Jurisdiction-Wide Fire Losses – One of the best indicators of fire risk is actual data
collected from fires over multiple years, preferably at least five. The following table shows total
fire deaths, injuries, and property loss (defined as both the property and contents).
Table 9: Total Fire Loss, 2000-2009
Year Total Fires Dollar Loss Injuries Fatalities
Average Loss ($)
Per Fire
2000 195 $2,168,650 1 1 $11,121
2001 237 $1,482,510 0 0 $6,255
2002 236 $428,620 0 0 $1,816
2003 242 $78,190 0 0 $323
2004 187 $46,315 1 0 $248
2005 199 $439,470 2 0 $2,208
2006 181 $1,408,040 1 1 $7,779
2007 202 $6,992,390 0 2 $34,616
2008 176 $1,687,128 0 0 $9,586
2009 209 $1,297,305 0 1 $6,207
(average) 206 $1,602,862 .5 .5 $7,781
The data reflects all fires, including vehicle fires and outside fires. It appears that, on
average, there are around 200 fires per year with a fire injury or fire death occurring every couple
years. Annual dollar loss due to fire varies from $46,315 in 2004 to $6,992,390 in 2009; on
average there was about $1,600,000 of fire damage annually. It should be noted that the total
dollar loss for fires in 2003 and 2004 seem too low to be believable. The fire department should
recheck its data, especially for these years. Clearly though, if the loss data is correct Palo Alto
has a very low average dollar loss per fire incident. This is good and probably attributable to
factors such as the, sprinklered and fairly modern building stock, as well as the education level of
residents and those who work in the city. Rapid response by competent firefighters also should
make a difference (the loss saved by fire operations can be measured, but few do—we have
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developed an approach for estimating losses and lives saved by fire operations, it this is of future
interest.)
The following table compares Palo Alto fire loss data to regional and national averages.
For a relatively small jurisdiction such as Palo Alto, fire loss data can be easily skewed. Any
slight under-or over-reporting of deaths, injuries, or property loss could have a huge impact on
the validity of the results. So comparisons should be viewed over time, to be based on more data.
Comparisons also should be taken with a grain of salt unless it is known that the data in different
jurisdictions is collected the same way.
Table 10: Per Capita Fire Loss and Comparison Statistics, 2000-2009
Total Fires
(per 1K capita)
Dollar Loss
(per capita)
Civilian Injuries
(per 1M capita)
Civilian Deaths
(per 1M capita)
United States 5.2 $48.5 58.6 11.4
Region: west 3.8 $73.3 45.7 6.7
Population: 50,000 to 99,999 3.9 $31.1 73.5 11.6
Region and Population 3.2 $24.9 46.5 5.7
Palo Alto : 2000 3.2 $36.0 16.6 16.6
Palo Alto : 2001 3.9 $24.6 0.0 0.0
Palo Alto : 2002 3.9 $7.1 0.0 0.0
Palo Alto : 2003 4.0 $1.3 0.0 0.0
Palo Alto : 2004 3.1 $0.8 16.6 0.0
Palo Alto : 2005 3.3 $7.3 33.2 0.0
Palo Alto : 2006 3.0 $23.4 16.6 16.6
Palo Alto : 2007 3.4 $116.2 0.0 33.2
Palo Alto : 2008 2.9 $28.0 0.0 0.0
Palo Alto : 2009 3.5 $21.6 0.0 16.6
Palo Alto : (average) 3.4 $26.6 8.3 8.3
Palo Alto has fewer fires and fire deaths per capita than the averages for the US, the west
coast, and communities of similar size. Palo Alto also has a much lower average dollar loss than
the US and communities of similar size, but its dollar loss is just slightly higher than the region
and population. Fire injuries are significantly lower than national, regional and community size
averages. Again, that Palo Alto is doing so well is related to community demographics in part,
such as much higher levels of education compared to other, similar-size communities.
The median home value in Palo Alto makes a true comparison of fire loss difficult. As
compared to Palo Alto, where the median value of a residential property in 2010 was $1.41M,
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the median value for residential homes in the rest of the Nation was approximately $167,000. 56
For Palo Alto, even a small fire inside a structure can result in a substantial fire loss and thus
make the overall fire situation appear high when it is not. Whereas a room-and-contents fire in
the typical U.S. community might exact a loss of $10-$30K, the same fire in Palo Alto might
easily result in a $150-$250K loss, or more. The point is, even in those years where fire losses
exceeded $1.0M, total losses are equivalent to one residential structure, not including its
contents.
Geospatial Location and Severity of Fire Incidents – To help evaluate the
appropriateness of fire unit locations, it helps to understand where there are fire ―hotspots‖
(higher numbers and density of calls) within the city. It is also good to know where the more
serious structure fires (those that involve deaths or large fire losses) are occurring. Figure 10
shows both the fire density per square mile for all fire types (including vehicle and outside fires)
and the location and severity of structure fires shown by red dots that are scaled based on the
amount of fire loss. Additionally, we mapped out the location of all the civilian fire deaths shown
with green crosses. This map was compiled from PAFD incident data from 2007 to 2009.
Please note that one of the issues we ran into with this project is that the dispatch does not
hard-code coordinates for each incident, so we had to geocode the addresses that were provided
in the fire department incident reports. Like all other fire departments, these addresses can be
quite poor because of misspellings and omissions. For this study we were able to achieve a 97
percent match rate of incident geocodes by reducing the number of years of data analyzed.
5 http://www.1siliconvalley.com/palo-alto-housing-market-%e2%80%93-fourth-quarter-2010-update/
6 http://money.cnn.com/2010/05/11/real_estate/latest_home_prices/index.htm
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Fire Risk by Planning Neighborhoods – Fire Risk is the product of fire probability and
fire consequence. High risk, therefore, can result from either a large number of small fires, or a
small number of large fires. The table below shows the average annual number of fires in each of
the planning areas and the number of fires per 100 square miles. Some of the planning areas were
larger than others, so it made sense to normalize the numbers in a way that allow accurate
comparison. The fire ―probability‖ classifications (low, medium, and high) are based on which
quartile the fires ―per 100 square miles‖ value fell into. The top 25 percent where classified as
high fire probability, the middle 50 percent classified as medium fire probability, and the lowest
25 percent classified as low fire probability. Charleston Terrace, the Commercial Area,
Downtown North, Evergreen Park, Fairmeadow, University Park, and Ventura have the highest
probability of fire.
The same table also assesses fire ―severity‖ using financial fire loss as a metric. Again,
the statistics were normalized by land area (fire loss per square miles) and ―severity‖ classified
using the quartiles. Using this methodology, it was determined that Byron Park, the Commercial
Area, Community Center, Downtown North, Leland Manor/Garland, Palo Verde, Research Park,
and University Park had the most severe fire loss.
We have already discussed how this table shows us the probability of fire and the actual
outcome (consequence/severity) for each of the different planning areas. Although we used a
fairly simplistic quartile method for classifying the planning areas, it was a quick way of judging
probability and consequence of fire in different geographic areas of the city. We use these to
inputs to make a final fire risk classification shown in the far right column of the same table.
Generally speaking, a high/high or high/medium combination was classified as high risk. A
low/low combination was classified as low risk. The remaining planning areas were classified as
medium risk. The Commercial Area, Downtown North, and University Park appear to have the
highest overall fire risk.
Table 11: Overall Fire Risk Classification by Planning Area, 2007-2009
Total Fires (per sq mile) Probability Fire Loss (per sq mile) Severity Risk Level
Barron Park 23 37 Medium $325,630 $527,680 High Medium
Bayshore Area 9 2 Low $4,615 $1,057 Low Low
Charleston Meadows 11 35 Medium $123,601 $394,537 Medium Medium
Charleston Terrace 30 45 High $24,710 $37,423 Medium Medium
College Terrace 2 11 Low $400 $2,298 Low Low
Commercial Area 62 93 High $498,125 $744,217 High High
Community Center 7 22 Medium $536,510 $1,723,948 High Medium
Crescent Park 19 35 Medium $900 $1,653 Low Low
Downtown North 11 58 High $80,050 $422,860 High High
Duveneck / St Francis 8 20 Medium $62,100 $152,234 Medium Medium
Evergreen Park 16 75 High $31,250 $146,850 Medium Medium
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Total Fires (per sq mile) Probability Fire Loss (per sq mile) Severity Risk Level
Fairmeadow 4 42 High $1,050 $11,032 Low Medium
Green Acres 4 9 Low $0 $0 Low Low
Greenmeadow 11 28 Medium $1,202 $3,035 Low Low
Leland Manor / Garland 13 39 Medium $306,000 $923,944 High Medium
Midtown / Midtown West 39 33 Medium $26,790 $22,913 Low Low
Old Palo Alto 11 18 Medium $14,625 $23,697 Medium Medium
Palo Alto Foothills 8 1 Low $72,200 $6,561 Low Low
Palo Verde 24 31 Medium $515,515 $672,558 High Medium
Professorville 0 0 Low $30,000 $377,948 Medium Low
Research Park 33 17 Medium $200,244,770 $105,586,541 High Medium
Southgate 0 0 Low $0 $0 Low Low
Stanford 111 10 Low $321,796 $29,037 Medium Low
University Park 73 243 High $6,573,183 $21,900,755 High High
University South 4 20 Medium $30,000 $148,560 Medium Medium
Ventura 14 40 High $55,371 $157,397 Medium Medium
Emergency Medical Service Risk Analysis
Palo Alto provides both medical first response (from engines) and ambulance transport.
The medical service PAFD provides to citizens of Palo Alto is very important when dealing with
time sensitive medical emergencies. Demand for emergency medical service varies greatly
across the city, but it is fairly easy to predict which areas will have the highest EMS demand
based on historical EMS incident densities, current population densities and expected population
growth (which was covered earlier). This section reviews all of those inputs and makes an EMS
risk determination for each planning area.
Population Density – Population is an excellent predictor of EMS demand. The Center
for Accreditation International (CFAI) Standards of Cover manual reports that one West Coast
Metropolitan Fire Department found that the correlation between demand for EMS service and
the number of people served was 0.9899. A perfect correlation is 1.0, meaning that there is a
direct relationship between the two factors. A graph of this correlation, taken from the Standards
of Cover manual is shown below.
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Figure 11: Correlation between Population and EMS Calls for Service Study, 1980-2004
With this correlation established, it is possible to look at a population density map of Palo
Alto and predict which areas will have the highest EMS demand per capita. The following
population density map (Figure 12) was compiled by ESRI using United States Census data.
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Figure 12: Population Density, 2010
EMS Incident Density – Based on the Palo Alto population density map, a high number
of the EMS incidents should be expected in the downtown area and on the University campus
where there are the largest concentrations of residential population. Besides having large
residential population densities, these two areas also attract a large number of commuters during
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business hours. We would also expect to see EMS hotspots in the eastern portion of Ventura
neighborhood, the northwestern portion of Midtown, and the eastern portion of the Charleston
Meadows neighborhood where there are smaller areas of high population density. The
actual number of EMS incidents by planning area is listed in the next section.
We see in the EMS incident density map (Figure 13) that the downtown areas have the
highest number of EMS incidents and there are small hotspots along Alma Street. Despite a high
population density, the Stanford Campus does not have high EMS demand probably because
young students with limited chronic medical problems comprise most of the residential
population in this area.
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EMS Risk Classification – Population density is an excellent predictor of EMS demand,
but other factors also influence demand. Senior citizens, for instance, typically have a higher
demand for EMS service than other demographics. As part of an EMS risk analysis EMS
demand would also be analyzed in the context of population demographics; however, population
demographics were unavailable for the planning areas. It would also be beneficial to look at the
type breakdown of EMS incidents in each of the planning areas, but this data was also not readily
available. EMS incident type breakdowns would have allowed us to determine in which areas
EMS incidents were more severe and would benefit from a quicker response.
Each planning area is assigned an EMS risk classification below based on the number of
EMS calls per 100 square miles. Based on our risk evaluation, it was found that Charleston
Meadows, the Commercial Area, Downtown North, Evergreen Park, and Greenmeadow have the
highest EMS risk.
Table 12: EMS Risk Factors and Classification, 2007-2009
EMS Incidents (per 100 sq miles) Risk Classification
Barron Park 349 56,555 Medium
Bayshore Area 112 2,565 Low
Charleston Meadows 233 74,374 High
Charleston Terrace 446 67,546 Medium
College Terrace 96 55,146 Medium
Commercial Area 2,024 302,393 High
Community Center 154 49,484 Medium
Crescent Park 230 42,253 Low
Downtown North 192 101,423 High
Duveneck / St Francis 184 45,106 Low
Evergreen Park 474 222,742 High
Fairmeadow 59 61,988 Medium
Green Acres 197 44,654 Low
Greenmeadow 289 72,975 High
Leland Manor / Garland 177 53,444 Medium
Midtown / Midtown West 692 59,185 Medium
Old Palo Alto 326 52,823 Medium
Palo Alto Foothills 129 1,172 Low
Palo Verde 405 52,838 Medium
Professorville 32 40,314 Low
Research Park 516 27,208 Low
Southgate 30 48,204 Low
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EMS Incidents (per 100 sq miles) Risk Classification
Stanford 1,757 15,854 Low
University Park 1,469 489,446 High
University South 313 154,998 High
Ventura 352 100,059 High
Target Hazards
For this project we also assessed as part of the analysis the location of target hazards
provided to us by the fire department. These are h of these target hazards are shown in Figure 14.
Although we do not provide an explicit review of these target hazards due to the scope of this
study, we included this map because it is something that we do refer to when making station
location recommendations in the next chapter.
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IV. STATION LOCATION AND RESPONSE TIME ANALYSES
The analysis of response time and service reliability from the city‘s eight fire stations
determined that coverage is good with the current arrangement of stations and units. However,
response times are slightly higher than might be expected, mostly because of many dead-end
streets and traffic barriers in residential neighborhoods.
The major steps for a deployment analysis include a risk assessment (discussed in the
previous chapter), working with the public and local government officials to determine response
time goals for the community as a whole or by individual planning areas, and measuring current
and potential performance against selected goals. The Center for Public Safety Excellence
(CPSE) publishes an excellent reference that can be used by communities to understand the
process and determine the choices available to them. Generally referred to as a ‖standard of
cover‖ analysis, we used the CPSE methodology in the analysis of response time and service
reliability.7
Deployment decisions concerning fire station and apparatus locations should be an
iterative process largely based on continual or periodic performance measurement. Because the
needs of Palo Alto do change, the recommendations made by this analysis should be considered
as a step in a continuing process. Going forward, the fire department must do a better job of
collecting and using response time data for the process to be effective.
Strategic Goals
Establishing goals against which to measure response effectiveness rests with PAFD
leadership. The following steps should be considered:
Discuss with community leaders and local government officials the desired
performance measures for fire and EMS response times. Very few citizens and
elected officials understand the concept of response time as it relates to emergency
services. Educating them on the available choices and trade-offs are necessary parts
of the planning process. For example, it is useful to note to them that rapid response
may prevent a food on the stove fire from becoming a house fire; a cardiac arrest from
becoming a fatality; and a gunshot wound from becoming a murder.
7 Creating and Evaluating Standards of Response Coverage for Fire Departments, Commission on Fire Accreditation International, Inc., Chantilly, VA 20105.
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Implement a method for tracking unit reliability. The CPSE Standards of Cover
manual places great importance on considering deployment changes when a unit falls
below 80 percent performance reliability. Reliability in this case means whether the
unit located at the closest fire station is available to answer the call.
Prepare a monthly response time report and distribute the report department wide.
(TriData could help set up such a report).
Conduct an annual performance review for the entire system and each planning area.
The report should summarize the systems overall performance, note changes to
specific planning areas, and recommend deployment modifications, near and long-
term.
Response Time Analysis
The initial aspect of our review of PAFD deployment was to collect available data and
analyze response times. Response time is defined as the time from an individual calling 911 to
emergency service personnel arriving at the scene. Response time has three segments: call
processing; turnout (or reaction) time; and travel time. Some departments also consider the time
segment from when personnel first arrive at the street address until they reach the fire or a
patient; usually referred to as ‖vertical‖ response time because it is often considered where there
are high-rise buildings. (It can take another 5 minutes to get to the side of a patient from the
street.)
Response time is the most common performance measure used by the fire service because
it is understood by citizens, easy to compute, and useful in the evaluation of end results. Rapid
response is also an aspect of the quality of service that most citizens care about.
NFPA 1710 provides generally accepted response time standards for career fire
departments, though there is no single set of nationally accepted response time standards. Many
communities choose to develop their own response time goals in light of what is currently
achieved versus what it would take to improve them. There have been a few attempts to measure
the incremental value of a minute faster response time for fires and EMS calls, but there is no
definitive study of the incremental benefit. Faster is better, but it is unclear how much better in
terms of dollars or lived saved.
Most fire departments use the NFPA 1710 standard as a goal, not as a prescriptive
requirement. Few departments are currently meeting or exceeding NFPA 1710, especially with
respect to travel time (which is the hardest to improve). Palo Alto travel times are only about a
minute over the NFPA 1710 recommendations, and this is likely the result of difficult traffic
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patterns and an abundance of road blocks rather than a lack of fire stations. There are also issues
with overall response times, partly because of increased travel times, but also related to
questionable call processing times and poor turnout times. Data collection techniques and data
reliability is also an issue as these time segments seem to be inconsistent.
Measuring Response Time
Since Palo Alto is a career department, NFPA 1710 is the applicable standard that is
useful as a benchmark. Table 13 summarizes the response time goals established by 1710. NFPA
1710 is a guideline, not a requirement.
Table 13: NFPA 1710 Response Time Goals for Career Departments
Response times include the four components illustrated in Figure 15.
Figure 15: Components of Total Response Time
When considering response time, several caveats should be kept in mind.
First, response times are subject to a variety of measurement errors and only measure one
aspect of overall system performance. For example, response times are distorted when units
report their arrival on scene either early or late. Second, response times are frequently not
comparable across fire-rescue systems because of the differing manners in which they are
calculated. Not all departments track vertical response times (that is, the time from arrival on
scene to patient contact), so their total response times likely would be lower than the total
response times of the few departments that do track them.
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Many fire/EMS departments report average response times while others report fractile
response times. Average response times have been increasingly less used by the emergency
service industry because small numbers of very short or long responses are often recorded in
error. Also, one or a few long response time s(or errors) can distort the results. The public is
interested in how fast a system responds to most calls, which is better reflected in fractiles rather
than averages. More and more departments are adopting the 90th percentile for reporting
response times (mostly due to NFPA 1710‘s use of this measure). However, meeting the 90th
percentile goal is not always the most efficient means for delivering emergency services. A
fractile response time of x minutes at the 90th percentile means that at least one unit responds in
x minutes, 90 percent of the time. The remainder beyond the compliance fractile (10 percent in
this case) is the operational tolerance for the system, meaning the system is designed with the
understanding that 10 percent of the calls may have response times that exceed the target.
Although it is possible to design a system that may ensure rapid response close to 100 percent of
the time, it is generally not cost-effective.
Most departments, including PAFD, do not record the vertical response time component.
However, given the high number of areas in Palo Alto that require additional time to reach a
patient (e.g. Stanford buildings, high-rise buildings, et cetera), it would be a good idea to start
measuring vertical response time, especially for EMS calls. Vertical response time affects the
realistic expectations for cardiac resuscitation outcomes, and should be considered in response
strategy, such as deployment of AEDs, training neighbors in CPR, and deploying more units in
high-rise areas. A longer interval of collapse to care time lessens the likelihood of successful
resuscitation. Travel times of four minutes to a bedroom community are likely to yield different
patient outcomes than to urban, high-rise communities, as ‖with patient‖ times increase the time
to care and decreases the probability of successful resuscitation.
Another aspect of measuring the time to be ‖with patient‖ or ‖at fire‖ is better quality
oversight. For incidents such as cardiac arrest or fire showing, crews could report additional
intervals such as ‖AED placed‖ or ―water flowing,‖ allowing PAFD to measure some aspects of
skill quality. For AED placement times, technology and clock synchronization may be used in
lieu of extra radio transmissions. Reportedly the fire department is already collecting the time
until the application of an automatic external defibrillator (AED). However, the data is not
routinely analyzed.
Recommendation 15: Consider expanding incident benchmarks transmitted and analyzed to
include activities such as primary search complete; ventilation completed; extinguishment started (complete) and begin tracking vertical response time as part of incident data collection, especially for medical calls.
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While the speed of response is not directly indicative of service quality, it does affect the
number of lives saved and the value of property losses averted when an emergency occurs. This
means that while arriving in three or four minutes every time does not guarantee everyone will
live and there will be less damage, more people can be helped or the fire can be extinguished
before it becomes severe when emergency personnel arrive in 5 minutes rather than 10 or 20.
Fire spreads quickly after ignition and the faster it is found and extinguished, the better the
results; similar to someone suffering from life threatening symptoms, the probability of survival
increases the quicker the patient is treated. There are also real times limits as to how long one
can go without breathing or when bleeding profusely.
Even with general observations and response-time analyses, current statistical models
cannot realistically assess nor predict the quality of fire services in terms of lives saved and
property losses averted. In place of true measures of fire rescue service outcome, response time is
often used as a proxy measure.
According to multiple studies, extension of the fire beyond the room of origin typically
begins before 6 minutes after ignition, and flashover of the room of origin occurs within 10
minutes of ignition. (Flashover is the simultaneous ignition of all flammable material in an
enclosed area.) In some modern rooms with low ceiling and plastics, flashover can occur in two
to four minutes, according to studies by the National Institute of Standards and Technology.
Figure 16 shows the fire propagation curve, which shows the effect of time and temperature rise
of a free-burning fire on the destruction of property.
Figure 16: Fire Propagation Curve
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The fire propagation curve above is based on a typical unsprinklered room. Palo Alto fire
and city officials should keep in mind that the public investment in sprinkler systems may affect
what are reasonable response time standards. Building design and sprinkler systems can be used
to hold fires in check for longer periods of time. When an entire area is sprinklered, response
times for fire incidents can be increased. However, unless a whole area is sprinklered, there are
still many unsprinklered buildings that need rapid response. Later in this chapter, we discuss
setting both city-wide response time and planning area response time goals. The percentage of
buildings sprinklered should be considered when setting response time goals for fire incidents.
Palo Alto Response Times
The analysis of response times for Palo Alto included only incidents dispatched as an
emergency (we eliminated service calls and BLS transports from the response time analysis).
Call processing included the first-dispatched unit from each incident. Turnout, travel, and total
response times included only engines, ambulances, the rescue, and the ladder truck; we did not
include battalion chiefs or administrative staff in the analysis. These criteria were applied to keep
the analysis in line with the standards against which times are being compared.
For all time segments, 2009 data provided by the Palo Alto emergency dispatch center
were analyzed. We eliminated those time segments that were more than three standard deviations
from the median (outliers). Three times the standard deviation was used because if travel times
had a normal probability distribution, 99.7 percent of incidents are expected to fall within three
standard deviations. Anything more than three standard deviations is likely to be an error in the
data or a highly unusual situation. Each response time segment is analyzed both by hour of the
day and incident type. To determine the incident type, we matched up the CAD incident number
with the actual incident outcome recorded in the RMS system. This means that response time to
‖fires‖ only reflects responses to actual fires, not reported fires.
Call Processing – Call processing time in theory should include both call-taking and the
actual dispatch of the equipment. Call-taking is the time to get information from the caller and
enter it into the dispatch computer system. This is measured from the time the call is received to
the time the call is transferred to a dispatcher. Dispatch time begins when the call is transferred
from the call-taker to a dispatcher and continues until units are alerted to respond. The NFPA
1710 Standard recommends a 1:00 minute dispatch time.
PAFD dispatch times were found to be particularly low and it is unlikely that the times
we received for analysis reflect the total time that dispatch took . Although we were not able to
verify the cause, it appears that the dispatch times analyzed reflected only the dispatch portion of
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the time segment and not the time it took to handle the call and record the information from the
caller. (In other words, the time should reflect call processing including dispatch.)
Table 14 and Figure 17 show the call processing and dispatch times by time of day and
incident type. The red line depicts the call volume by time of day. The line clearly shows the
highest volume of calls peaking between 8:00am and 6:00pm, when call volume begins to
decrease.
Table 14: 80th Percentile Call Processing Time by Incidents Type
80th Percentile 90th Percentile
Alarm 0:19 0:25
Canceled 0:24 0:32
EMS 0:20 0:27
Good Intent 0:21 0:27
Hazard 0:24 0:32
MVA 0:25 0:32
Outside Fire 0:22 0:29
Structure Fire 0:25 0:31
(all) 0:21 0:29
Figure 17: 80th Percentile Call Processing Time by Hour of the Day
Turnout (or Reaction) Time – Turnout time is the second segment in total response
time. It begins when personnel are alerted at the station for the emergency until the crew is
aboard the apparatus and ready to respond. If data collection is accurate, it can be calculated as
the difference between the en route time and the unit dispatch time. The goal for turnout is also
one minute, 90 percent of the time. However, this goal is sometimes difficult to achieve for most
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departments and a more realistic goal is one minute for daytime calls and one and one-half
minutes for calls occurring during times when firefighters are not awake. Turnout times for non-
emergency calls also need to be eliminated from the data set since firefighters do not react as
quickly if the call is not an emergency.
Even when a more realistic goal of 90 seconds for turnout is considered, the PAFD is still
exceeding the goal considerably. This should be an area for concern and the reasons investigated.
Table 15 and Figure 18 show the turnout times by time of day and incident type. As
expected turnout times during night time hours were longer, but the difference is not as
pronounced as what is found with most other fire departments.
Table 15: 80th Percentile Turnout Time by Incidents Type
80th Percentile 90th Percentile
Alarm 3:01 3:24
Canceled 2:44 3:10
EMS 2:28 2:55
Good Intent 2:38 3:06
Hazard 3:09 3:34
MVA 2:45 3:08
Outside Fire 3:14 3:49
Structure Fire 3:32 4:08
(all) 2:42 3:09
Figure 18: 80th Percentile Turnout Time by Hour of the Day
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Findings of excessively long turnout times led to our having doubt as to the accuracy of
the data since the turnout time for firefighters in Palo Alto significantly exceeds those found in
most other communities. For this reason, the fire department should revisit the data and conduct
more study of turnout. It should r disaggregate the results by fire station (and shift) to determine
if there are problems at a particular station. Longer turnout times can sometimes be related to the
layout of a particular fire station more so than to a particular crew, but crews also need
encouragement to respond more quickly too. Fire stations in Palo Alto are not overly large, and
there are no architectural layout reasons that it should take so long for personnel to don their
turnout equipment and mount the unit once alerted.
Ultimately, the issue of long turnout times needs to be addressed because these times can
be improved more easily and with little expense than moving stations. Once the apparatus leaves
the fire station, response times are more difficult to improve since the speed is related to the type
of roads traveled, weather, and traffic.
Recommendation 16: Revisit the analysis of turnout times and take the necessary steps to improve them where possible. Establish a performance goal for each time segment and assess them monthly. Evaluate turnout times by fire station and shift.
Travel Time by Hour of the Day and Incident Type – Travel time starts when a unit
begins its response from the fire station until it arrives at the scene. Travel times are a function of
geography, road conditions, traffic/congestion, and the number of and location of fire stations
with respect to the location of actual calls. A travel-time goal of four minutes is suggested by
NFPA. Later in this section we discuss in more detail the location of fire stations and the
performance of the current layout of stations.
At the 80th percentile, travel times ranged from 4:30 for EMS calls to 5:22 for hazardous
condition calls. These times are all higher than the NFPA 1710 recommended 4:00 travel time.
As noted earlier, Palo Alto has some unique traffic patterns. There are not a lot of through-
streets, many barriers are in place around Stanford that restrict travel, and quick response times
through residential neighborhoods can be difficult because of the narrow streets that reduce
driving speed. We expected that daytime traffic would also impact travel times, but there was
little difference in travel times during different times of the day.
Although PAFD should clearly continue to try and reduce the travel time to emergencies,
it is not a realistic goal to reach the 4:00 NFPA goal 90 percent of the time. A better approach is
to improve call processing and turnout times to compensate for slightly longer travel times.
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Table 16 and Figure 19 show the travel time for the first unit to arrive at an incident.
Table 16 depicts the travel time categorized by incident type. Figure 19 show the travel time by
hour of day with the call volume shown for reference.
Table 16: 80th Percentile Travel Time (First Unit) by Incidents Type
80th Percentile 90th Percentile
Alarm 5:10 6:19
EMS 4:30 5:23
Good Intent 4:48 5:51
Hazard 5:22 6:50
MVA 4:51 6:11
Outside Fire 5:03 5:56
Structure Fire 4:53 5:31
(all) 4:42 5:42
As can be seen in Table 16, when a goal of 80 percent is used, the response time for the
first unit to arrive is one minute faster (4:42 versus 5:42) for all calls.
Figure 19 shows the 80th percentile travel time by hour of the day for the first-arriving
unit. Call volume for the 24-hour period is also depicted.
Figure 19: 80th Percentile Travel Time (First Unit) by Hour of the Day
Total Response (Reflex) Time – As discussed earlier, total response time is measured
from the time the call is received by the dispatch center until a unit arrives on scene. Total
response time is, for most citizens, the most important time element and the measure they use to
evaluate the effectiveness of fire and EMS service.
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A review of the total response time was conducted using NFPA 1710, which recommends
a six minute total response time. Again, this is based on one minute for call processing, one
minute for turnout, and four minutes for travel time.
PAFD is actually pretty close to this goal time at the 80th percentile level (about a minute
off for most incident types), but remember that the short call processing times may be an
indication that we are not looking at the total response time here; it may be necessary to add
about 30 seconds to these total response times to account for a missing call taking segment.
Problems with response time, when they are found, are usually with station locations, or
not having enough stations to cover the area. Such is not the case in Palo Alto where it appears
that a combination of long turnout times and a difficult travel environment are leading to long
response times. In our judgment response time issues are not the result of station location issues,
or having too few stations.
Table 17 shows the total response time for the first unit to arrive at an emergency. Figure
20 shows total response time by time of day. As can be seen there is little difference in total
response time between daylight and night time hours, which is unusual.
Table 17: 80th Percentile Total Reflex Time (First Unit) by Incidents Type
80th Percentile 90th Percentile
Alarm 7:33 8:38
EMS 6:40 7:33
Good Intent 7:11 8:09
Hazard 7:35 9:15
MVA 7:17 8:21
Outside Fire 7:09 8:09
Structure Fire 7:17 7:53
(all) 6:58 7:53
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Figure 20: 80th Percentile Total Reflex Time (First Unit) by Hour of the Day
Table 18 shows the travel time, fire department reflex time, and total response (reflex)
time for each of the fire department first-due areas. Travel times are not great, but okay. Incidents
in Station 2‘s first-due area have a travel time of 4:04, likely the result of more open roads with
fewer traffic lights and stop signs in their area of response. Travel times for the remaining first-
due areas are all in the 4:30 to 5:00 minute range with Station 3 having the longest travel time of
5:18.
Station 1, 2, 4, and 5‘s first-due areas all have total response times that are within a
minute of meeting NFPA 1710 at the 80th percentile level. Also included in the table are fire
department reflex times (FD Reflex) which are the times from unit dispatch to unit arrival.
Table 18: 80th Percentile Total Response Times by First Due Area
Travel Time FD Reflex Total Reflex
Station 1 4:45 6:33 6:54
Station 2 4:04 6:08 6:33
Station 3 5:18 7:25 7:50
Station 4 5:01 6:31 6:54
Station 5 4:32 6:32 6:51
Station 6 4:50 7:00 7:17
Station 7 4:46 7:19 7:35
(all) 4:46 6:43 7:03
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Workload and Performance Measurement
Another aspect of considering department efficiency and effectiveness is to analyze the
workloads and performance of the various fire stations and units. For this analysis we used the
National Fire Protection Association‘s (NFPA) standard 1710. As the ‖de-facto‖ standard to
assess response time and deployment, NFPA 1710 is a reasonable benchmark because it was
developed based on industry-accepted principles of fire development and medical outcomes.
However, we are not aware of any study that validated NFPA 1710 by showing a correlation
between lower response times and an equivalent reduction in fire loss. Still, the standard is a
useful framework to evaluate coverage and the city should consider NFPA 1710 a useful tool.
The first look at incident data showed that downtown Palo Alto had a much larger
number of calls and more resources to handle the call volume. If the city-wide performance
standard was to achieve a certain response time 90 percent of the time and the downtown
accounted for the largest portion of calls, performance in other areas of the system could well be
substandard. For this reason a higher level of analysis was needed as opposed to a smaller
community where call volumes and incident types are often homogenous across the entire
system.
In the previous chapter, we developed planning areas based on the historical
neighborhoods to conduct the risk and demand analysis. We used this approach because planning
areas run along neighborhood boundaries and both risk and demand are influenced by
neighborhood characteristics. Also, using planning areas helps non-fire department officials and
the public better understand the results (because people are typically much more familiar with
neighborhood boundaries than fire districts or first-due boundaries).
The analysis of fire station and apparatus locations is based on overall deployment
performance (workload, travel times, and performance reliability). Planning areas in Palo Alto
are sometimes protected from several fire stations and the areas covered by individual fire
stations do not match the city‘s planning area boundaries. If deployment performance was
measured using planning areas, it would be difficult to attribute problems to a particular fire
station. For that reason, our analysis looks at workload and deployment performance by fire
stations and the first-due areas they covered.
In addition to performance and travel times, we also analyzed the workload for each fire
station and each unit. This determined whether particular units could handle more calls without
compromising the overall performance of the area.
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Performance Goals – As part of the planning process, PAFD will have to decide the
performance goals it considers right for the city overall and for each planning area. It will also
need to find a reasonable response time and a reliability goal for each planning area (and each
incident type).
Setting performance goals by planning area is one way to do this because risk factors can
be matched with travel time and reliability goals. Then, if analysis shows a problem with
response times (or reliability), further analysis can be done to determine the contributing factors.
Another way is to create demand zones across the city. However, the planning areas (essentially
historic neighborhoods) appear to be a good framework. Ultimately, fire leaders need to
understand why the desired goals are not being achieved in a particular area and the response
situation for each fire station protecting that area before it makes changes to the system.
As stated earlier, the NFPA 1710 response time standard is based on typical fire growth
rates and patient outcomes, primarily those involving cardiac arrest. The recommended time for
the first unit to arrive under the standard for both fire and EMS incidents is six minutes (four
minute travel time plus two minutes for call processing and turnout time). The time is based on
research showing that a structure fire begins to grow exponentially after six minutes and
individuals in cardiac arrest need defibrillation within six-minutes.
The problem with using standards ―carte-blanche‖ is that they are sometimes overkill for
the particular situation. For example, an area with a very young population might be okay with
an eight-minute medical response time since the more serious and time-sensitive EMS calls
occur less frequently. Likewise, an area with a large percentage of sprinklered buildings might
not require as fast of a response as those in unprotected buildings. Planning areas where a
majority of structures are equipped with sprinklers, can have a lower performance goal (80
percent or even 75) applied as the acceptable goal.
Appropriate performance levels are very much based on the characteristics of individual
planning areas. Fire department personnel are very good at determining appropriate response
time and reliability goals. For its part, PAFD should have its strategic planning team, and others
within the fire department familiar with the various planning areas, recommend the response time
goals for each of the city‘s planning areas.
Recommendation 17: Use NFPA 1710 (and other standards) to develop performance goals,
but consider each planning area on the merits of its particular situation.
Assessing Deployment Performance – Assessing fire department deployment is a
difficult task because of the many factors that affect performance. A simplistic way of
determining fire station locations would be to use a GIS program to map out four minute
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coverage areas to make sure there are no coverage gaps. This method focuses entirely on the
location of the fire station and would work well if the fire department only answered one call at a
time. The problem of this approach for a city like Palo Alto is that some stations are busier than
others and concurrent calls are common, especially during weekdays.
Using the performance analysis method, we determined whether response time goals
were being met regardless of which fire station or unit may have responded to the call. This
permitted us to consider unit workloads and whether particular fire units could handle more calls
before performance was affected.
Standard of Cover Evaluation – For this study we used the Center for Public Safety
Excellence (CPSE) Standard of Cover process to evaluate the overall performance in Palo Alto.
The premise of this assessment method is that for each analysis area, there is a trade-off between
unit availability and performance. Generally speaking, as the correct unit for a particular area
becomes less available (due to other calls, training, etc.), performance for that area should
decrease because outside responding units from other stations have further distances to travel.
For this analysis we use two metrics:
Unit Availability - the percentage of incidents where a unit from the correct station
was available to handle the call and did so.
Performance Level - the percentage of incidents where the travel time was at or below
(faster) than the recommended goal.
In order to run this analysis, it is necessary to set a travel goal time and goal by which to
measure the performance level. In most cases, we use the NFPA recommended time of 4:00, but
in Palo Alto it appears that the road network makes it very difficult to achieve a 4:00 travel time.
As a result we have set a 5:00 travel goal for this performance level vs. unit availability analysis.
Figure 21 shows an example performance level vs. unit availability analysis.
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Figure 21: Performance Level vs. Unit Availability (Example)
In the example above the dashed black line in the performance level vs. unit availability
analysis marks the 80 percent performance threshold. If the dot for a particular station falls
below that dashed line, response travel time performance is being affected and changes may need
to be considered. In addition to showing whether performance is being achieved, the
performance graph can also show workload sensitivity or fire station location problems.
The slope of the line assesses workload sensitivity. A nearly horizontal line indicates that
unit availability has little impact on performance levels, meaning that the area in question has
low workload sensitivity. Fire stations with low workload sensitivity typically have many nearby
fire stations that can cover their calls if they are unavailable. A line that slopes strongly
downwards indicates that performance levels are heavily dependent on unit availability. These
areas are very workload sensitive because second-due units are generally unable to achieve travel
time goals when the first-due unit is unavailable.
Station location problems can also be identified by this analysis. If this part of the line is
under the 80 percent performance level threshold it means that, even when the correct unit
responds, travel time goals are not being met 20 percent of the time. This means that the station
is not well located to reach all parts of its first-due area. This problem can be fixed by relocating
the station, building a new station, or (perhaps the best solution) re-evaluating first-due
boundaries to make sure that the most appropriate station is responding.
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The CPSE recommends that as the actual performance level falls below 80 percent,
measures should be taken to address the issue. This 80 percent level does not match up with the
90 percent compliance that NFPA 1710 recommends. However, the 90 percent reliability goal is
an appropriate threshold for city-wide performance; it is a very difficult to meet this goal in every
area of the city. In fact, the very low call volumes in some areas make it unrealistic that the city
would want to achieve such a standard since it would be inefficient to provide enough fire
stations to meet the standard all of the time.
All things considered, 80 percent compliance is an appropriate goal. That means that
first-due areas where less than 80 percent of calls are reached within the prescribed travel time
(which we suggest should be five minutes for Palo Alto) should be considered problem areas.
Palo Alto Performance Analysis – As we have already discussed, Palo Alto has a road
network with lots of stop signs and barriers that makes it difficult to achieve the typical 4:00
NFPA 1710 travel time goal. Although, ultimately the travel time goal determination rests on the
public officials and fire department decision makers, we have chosen to assess performance and
reliability in the context of a more realistic travel time goal of five minutes.
Figure 22 and Table 19 show the performance vs. reliability assuming a 5:00 travel time.
Figure 22: Performance Level vs. Unit Availability for 5:00 Travel Time Goal
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Table 19: Performance Level vs. Unit Availability for 5:00 Travel Time Goal
Performance Level (all incidents) Unit Availability (all incidents) Performance Level (correct unit) Performance Level (incorrect unit)
Station 1 83% 77% 85% 78%
Station 2 88% 90% 90% 68%
Station 3 76% 80% 81% 55%
Station 4 80% 85% 85% 49%
Station 5 88% 85% 90% 79%
Station 6 83% 89% 86% 57%
Station 7 81% 91% 81% 82%
Assuming that 5:00 is the desired travel time goal for Palo Alto, Stations 5 and 2 have a
fair amount of additional capacity (meaning that those stations can handle additional workload
without affecting their performance level). Stations 1, 4, 6, and 7 are currently right at capacity.
Station 3 appears to have a station location problem because even when unit availability is 100
percent, this station is just barely achieving an 80 percent performance level.
We also note that Stations 1, 5, and 7 have fairly horizontal lines, which means that when
those stations do not have a unit available, other stations are able to cover their calls within the
performance standard. Stations 2, 3, 4, and 6 have a much higher negative slope as unit
availability decreases. This means that other stations cannot cover calls in these areas within the
performance standard if the correct unit/station is unavailable to respond.
Assuming that all data provided to us is accurate, the following points can be derived
from the reliability and performance analysis.
Stations 5 and 2 both have additional workload capacity.
Stations 4 and 6 are currently performing right at the 5:00 travel time goal. These two
stations have a decreasing performance level as unit availability decreases. As a
result, we would not want to add any additional workload to these stations and
recommend that Palo Alto keep a close eye on their performance if workload does
increase.
Stations 7 and 1 are currently performing right at the 5:00 travel goal time, but
because their performance is not as workload sensitive, these stations could
potentially handle additional workload.
Station 3 already has performance issues that need to be addressed. If substantially
more calls begin to occur in Stations 3‘s area, other resources may be needed to
support it.
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Station 8 was not evaluated because the number of calls was so low.
Workload Analysis – For this analysis we also looked at the call volume and workload
for each fire station and unit. Workload is defined as the total time (hours) that a unit is actually
engaged in providing service. EMS rescues that transport patients typically have higher
workloads than do fire engines.
As explained in previous section, these factors affect performance and reliability for the
reason that higher workloads for one unit reduce the availability of that unit for another call such
that the incident must be handled by another unit nearby. For example, a fire station with a high
workload (such as Fire Station 1) might continue to meet its goals because other nearby stations
can also cover the area adequately. Other areas however, (Fire Station 4) are more susceptible to
workload increases because of the larger distance between stations.
Table 20 shows the run totals by station and unit for 2009. All analysis in this section is
based on 2009 CAD data received from the emergency dispatch center. None of the units except
Medic 2 at Station 2 is over 3000 calls, which is roughly the benchmark for being ―busy‖ and
starting to need relief.
Table 20: Responses by Station and Unit
ALS
Ambulance
BLS
Ambulance
Brush Engine Engine Rescue Truck Total
BLS Ambulance 0 759 0 0 0 0 759
Station 1 1589 0 0 2021 0 0 3610
Station 2 3016 0 0 1024 1055 0 5095
Station 3 326 0 0 1312 0 0 1638
Station 4 0 0 0 1108 0 0 1108
Station 5 0 0 0 911 0 0 911
Station 6 0 0 0 1512 0 644 2156
Station 7 0 0 0 169 0 0 169
Station 8 0 0 35 0 0 0 35
We can see from this table that station 2 was the busiest with 5,095 runs followed by
station 1 with 3,610 runs and station 6 with 2,156 runs. A lot of these runs are, however,
ambulance runs that do not necessarily occur in that station‘s first-due area. In the following
graphs and tables we show the workload (in unit hours) both with and without ambulances. We
will defer discussion of the workload to the last section of this chapter where we look at all the
factors affecting the different stations and make deployment recommendations.
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Figure 23: Unit Workload (Unit Hours)
Table 21 shows the workload for each unit in tabular form.
Table 21: Unit Workload (Unit Hours)
BLS1 E1 E2 E3 E4 E5 E6 E7 E8B M1 M2 M3 R2 T6 (all)
EMS 666.9 532.8 167.3 250.7 277.1 241.3 278.7 4.4 6.8 1186.8 2158.8 178.2 72.4 46.5 6068.8
Alarm 0.0 54.3 48.1 32.0 36.4 43.1 124.7 26.6 1.0 5.3 12.8 0.4 28.9 22.1 435.6
MVA 9.5 10.8 36.2 39.9 26.3 14.1 20.6 2.2 2.5 44.5 128.8 7.8 60.2 14.2 417.4
Hazard 1.3 21.4 23.9 27.6 26.4 20.5 21.3 5.3 0.0 6.2 16.1 0.4 59.0 27.5 256.9
Public Service 1.1 38.0 13.2 38.4 34.5 14.6 12.6 0.2 0.3 2.9 9.5 2.1 15.4 12.6 195.4
Canceled 1.4 19.6 12.6 20.9 10.3 7.5 14.5 5.0 1.2 9.5 17.2 1.9 19.1 11.3 152.1
Structure Fire 0.0 19.8 15.3 13.9 6.5 2.9 17.3 0.6 0.0 8.7 9.9 0.1 25.6 28.3 148.9
Good
Intent 4.8 19.1 10.2 15.0 7.6 17.0 11.2 0.9 0.3 9.3 25.1 2.9 11.5 5.1 139.9
Outside Fire 0.0 11.8 9.1 8.9 16.3 10.4 16.3 1.1 5.0 1.3 3.3 0.0 8.8 8.5 100.7
(all) 685.0 727.6 335.9 447.4 441.3 371.4 517.1 46.4 17.0 1274.4 2381.4 193.8 300.9 176.1 7915.7
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Figure 24 and Table 22 show the workload and call types for each station.
Figure 24: Station Workload (Unit Hours)
Table 22: Station Workload (Unit Hours)
BLS ST1 ST2 ST3 ST4 ST5 ST6 ST7 ST8 (all)
EMS 666.9 1719.6 2398.5 429.0 277.1 241.3 325.2 4.4 6.8 6068.8
Alarm 0.0 59.5 89.8 32.5 36.4 43.1 146.8 26.6 1.0 435.6
MVA 9.5 55.3 225.2 47.7 26.3 14.1 34.7 2.2 2.5 417.4
Hazard 1.3 27.6 99.0 27.9 26.4 20.5 48.7 5.3 0.0 256.9
Public Service 1.1 41.0 38.1 40.5 34.5 14.6 25.2 0.2 0.3 195.4
Canceled 1.4 29.0 48.8 22.8 10.3 7.5 25.8 5.0 1.2 152.1
Structure Fire 0.0 28.4 50.8 14.1 6.5 2.9 45.6 0.6 0.0 148.9
Good Intent 4.8 28.4 46.8 17.9 7.6 17.0 16.3 0.9 0.3 139.9
Outside Fire 0.0 13.2 21.1 8.9 16.3 10.4 24.8 1.1 5.0 100.7
(all) 685.0 2002.0 3018.1 641.2 441.3 371.4 693.2 46.4 17.0 7915.7
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Figure 25 shows the workload by station for the various call types but without the ALS
rescue units included. This is important because its shows the workload for fire units (engines,
ladder truck and rescue).
Figure 25: Station Workload (Unit Hours) without Ambulances
Assessment of Fire Station Locations
In this section we present an analysis of fire station locations using Geographic
Information System (GIS) software (ArcGIS 9.3). Layers of data for the analysis were provided
by the city‘s planning department. IW also visited each fire station to get a feel for its location
and overall condition. This allowed us to understand the location of the fire stations relative to
the area protected, not just from a GIS map.
Figure 26 shows the current location of Palo Alto‘s 8 fire stations. This map also shows
the location of all mutual aid stations (in other jurisdictions) that may respond into Palo Alto on
occasion.
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Figure 26: Current Fire Station Locations
As stated at the outset of this chapter, the current configuration of fire stations provides
good coverage. With the exception of the Bayshore area (golf course and airport) and the
foothills, all parts of the city have a fire station with six minutes drive time and most of the city is
within four minutes of a fire station.
Figure 27 shows the theoretical travel time from each of the city‘s 8 fire stations. Areas in
dark green can theoretically be reached in four minutes and areas in light green can be reached in
six minutes. Typically we discuss any coverage gaps that are found in the theoretical drive time
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analysis, but Palo Alto does not appear to have any major coverage gaps. The southwest corner
of the Stanford Campus has a little area that is not, but this is minor issue.
Figure 27: Four-and Six-Minute Travel Time Analysis
Coverage Overlap – Simply showing that there is adequate coverage from all the fire
stations does not take into account that more than one incident often occurs at the same time in a
first due area. Some coverage overlap is good in the areas of highest demand. Figure 28 shows
how many stations can reach each part of the city within four minutes. Thinking back to the plots
of fire and EMS incident density in the previous section, we remember that the vast majority of
emergency services demand occurs in the downtown Palo Alto area just north and west of
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Station 1. It is this area that we would want to have coverage from multiple stations; this is, in
fact, the situation. Stations 1, 3, and 6 can all reach the downtown area within 4:00 travel time.
There is also an area between stations 2, 5, and 4 that have a high amount of station coverage
overlap where the risk and demand level does not justify it.
Figure 28: Current 4-Minute Station Overlap
Below is a station-by-station review of our station location analysis and some possible
deployment improvements or efficiencies. We reviewed workload, response time performance,
unit/station reliability, and theoretical GIS drive times together in forming conclusions.
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Fire Station 1 – Station 1 houses Engine 1, Medic 1 and Medic 3, the busiest engine and
second busiest ambulance. This is the second busiest station (first without ambulance workload)
and is located in the southwest portion of the downtown area. Medic 3 is cross-staffed by Engine
1. The performance vs. workload analysis showed that this station could take on additional
workload capacity, mostly because other stations (Stations 6 and 3) can still provide adequate
response times into the downtown area when units from Station 1 are not available. Because the
downtown area is one of the high-risk and high-demand areas, this is the type of deployment
performance one would want here.
At first look, this station appears to be poorly situated because of its close proximity to
the city boundary. It is often preferable that a station is not this close to the city boundaries so
that its response area in the city is maximized. At first glance it was believed that Station 1
would be better located slightly northeast of its current location where it would have a larger 6
minute travel reach, still be located in the high demand downtown area, and potentially eliminate
the need for Station 3. The problem with this scenario is that Station 1 serves the area along Sand
Hill Road to the southwest of the station that would no longer be reachable within 6 minutes if
the station is moved to the northeast. There have been several large developments along this road
and it is important that they have good coverage.
Fire Station 2 – Station 2 houses Engine 2, Rescue 2 and Medic 2. This station is in the
industrial research park Medic 2 is the busiest ambulance. The engine has an average workload
compared to other engines. The rescue unit is the city‘s only unit of its type and has a very low
workload. We found in the performance vs. reliability analysis that the station has additional
workload capacity; both because of high-availability and the fact that there is little performance
drop when units respond to its area from second-due stations (Stations 6, 5, 3, and 4). Reliability
at this station is quite high because there are three units at this station. Later in the chapter we
recommend merging Station 2 and Station 5.
Fire Station 3 – This station houses Engine 3, the third busiest engine and least busy
ambulance. The station is located in an area of high-end residential neighborhoods. The
performance vs. reliability analysis showed that this station is susceptible to high workloads and
is well below the travel time performance threshold. The station is fairly well inset from the city
boundary (to the north) and, because most of that area is residential neighborhoods, it may be
difficult to make good response times close to the border. Also, this-area is not close to any other
fire stations (Palo Alto or mutual aid), so when there is not a unit available at this station, it is
very difficult for other stations to make good response times into the northern and eastern
portions of this first-due area.
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Recommendation 18: Take a closer look at what is causing response time performance issues in Station 3’s first-due area. Consider adjusting the first-due areas for this station to increase unit reliability.
This station also provides a good backup for Station 1 but, because of its poor
performance and workload sensitivity, this station should probably only back up Station 1 for
structure fires, cardiac arrests, and similarly serious, time-sensitive emergencies. An ambulance
should be kept at this station because it provides good response times into the high-demand
downtown area and it potentially decreases the fire engines workload keeping it available more
of the time (that would require only dispatching the engine on ALS calls).
Fire Station 4 – This station houses Engine 4, one of the least busy engines. The
performance vs. workload analysis showed response time performance right at the 80 percent
threshold. Any additional workload should be closely monitored because, as reliability falls off,
performance takes a hit. It is difficult for second-due units (from Station 5 and 2) to make the
performance goal into this area. The ambulance should be kept at this station to keep up the
reliability and PAFD should closely monitor this station for falling performance. From a
coverage perspective, this station appears to be in a fairly good location for the northeast corner
of Palo Alto.
Recommendation 19: Consider adding Mountain View Fire Department as second-due into
this area if unit-reliability falls and affects response time performance. When Station 4 does
not have a unit available, the closest stations are 3, 4, and 5. We are already trying to increase
Station 3 unit reliability, so we would want to avoid pulling engine 3 out of place. Station 2 and 5 would provide good second-due coverage, but if those stations are merged (as recommended later in this chapter), it will be important to keep unit reliability up for that station. It appears that
both Mountain View Station 3 and Station 5 would have good response times into Palo Alto
Station 4‘s first-due area.
Fire Station 5 – Station 5 houses Engine 5, the least busy engine next to Engine 7. This
station has low workload, high reliability and high performance and is a good candidate for
consolidation. It also sits right on the Palo Alto border which is not good location for optimizing
response reach. Please see the later recommendation on merging Station 2 and Station 5.
Fire Station 6 – This station houses Engine 6 and Truck 6, the second busiest engine and
only truck. This station has a good location on the Stanford campus and provides good response
time coverage to the whole campus. This station does have some additional workload capacity,
particularly because the nearby stations (Stations 1, 3, 2 and 7) are able to provide adequate
response times into this area when units from Station 6 are not available. Because this area is
busy, this is the type of deployment performance we would want and expect here.
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Fire Station 7 – It does not appear that Station 7 is needed in the greater Palo Alto fire
department deployment scheme. This station simply fulfills its contracted role as first responder
to all Stanford SLAC emergencies. Station 7 has incredibly low workload and is not in a good
position to respond to anything other than as a complement unit (which it cannot really do
because this station needs to be backfilled within 10 minutes.
Fire Station 8 – This station also has very low workload but protects some high-value,
high-risk properties. Recommendations for this station are discussed later.
Possible Fire Station Mergers
For this study we considered whether new stations were needed and the potential that any
of the existing stations might be merged. There is no need to add a ninth station, but there is an
opportunity to merge two stations. A consideration in the analyses is the railroad that runs along
Alma Drive. Because the city is effectively split in two with limited streets that connect the two
sides because of the rail line, it is not really feasible to merge stations on opposite sides of the
tracks. Merger combinations evaluated were:
Station 3 and Station 4
Station 1 and Station 3
Station 2 and Station 5
Station 3 and Station 4 Merger – These two stations cover the largest combined first-
due area and their performance is strongly affected by their workload (because other units cannot
make good response times into their area when these stations are busy). Additionally, there was
no single station location that could provide good 4 and 6-minute coverage to their first-due
areas. We found no good merger opportunities for these two stations.
Station 1 and Station 3 Merger – A single station to replace Station 1 and Station 3
does provide good coverage as shown in Figure 29. There are, however, three problems with this
station merger:
The Sand Hill Road developments no longer have adequate fire department coverage
from the new merged location.
There is less fire station overlap in the high-demand downtown area. This can be
compensated for by having two engines at the new merged station, but then it makes
little sense to merge the stations in the first place.
It may not be possible to make good response times from the merged station to areas
along the northern border of Palo Alto.
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Station 2 and Station 5 Merger – The potential to merge Stations 2 and 5 has significant
merit. A new merged station at the intersection of Arastradero Road and Hillview Avenue can
provide a similar level of coverage as the two individual stations do at their present locations. In
addition, the Foothill Expressway provides excellent access to the areas currently covered by
these stations. It is also an route to access Stanford University from Campus Drive. Likewise,
this location would provide excellent access to the research park (where Station 2 is currently
located) and the residential areas of Station 5. Staffing of this station, which could be a combined
station with a crew cross-staffing an engine and rescue is discussed later in this report.
Figure 30: Station 2 and Station 5 Merger – Possible New Location
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Recommendation 20: Merge Station 2 and Station 5 at a new location near the intersection of
Arastradero Road and Hillview Avenue.
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V. ANALYSIS OF FIRE AND EMS OPERATIONS
The PAFD provides service from seven stations year-round and one station on a seasonal
basis. The seasonal station (8) is staffed for 90 days (July through October), which is considered
the high-fire season. Palo Alto has an (ISO) Insurance Services Office rating of two, with the
highest being one. This rating is a technical guide for determining insurance costs and not
intended to be a guide in the design of a fire department. This is especially true for fire
departments that provide emergency medical service since EMS is not considered within the
rating schedule.
In this section we discuss the deployment of fire department resources to the various
stations throughout the city, which includes the services provided under contract to Stanford
University and the Department of Energy (DOE) at the Stanford Linear Accelerator (SLAC). The
results of this analysis and the deployment changes recommended by it were derived from the
risk and demand analyses presented earlier, and from our professional observations on changes
to improve the deployment of emergency response and the PAFD as an organization.
Overview
The PAFD is very traditional in its delivery system, which is to devote a majority of its
effort and resources toward fire suppression even when EMS service is mostly what it does. As
the incident data and analysis in previous sections show, EMS calls far outnumber fires and
structure fires occur with very low frequency. As this trend will continue into the foreseeable
future, a key for the PAFD (and the city) is to take the initial steps to adjust the system such that
EMS resources are increased. A question posed to us for this study was: ―can the fire department
use dynamic deployment and shift resources based on demand during different periods of the
day, week, or even month?‖
To some degree the fire department is already using a dynamic deployment strategy,
though not on a large scale. There is currently a 12 hour paramedic unit and weekday BLS
service is staffed by part time by hourly employees. As discussion in earlier sections revealed,
the fire department has a major problem with data collection and analysis, so opportunities to
dynamically deploy resources are limited because the department does not have the capacity to
analyze data to the extent necessary for system-wide dynamic deployment. Likewise, the
dispatch center is not yet capable of implementing such a system, in part because it has not yet
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implemented the Medical Priority Dispatch (MPD) software already available.8 Still, there are
opportunities to make the system more efficient and use the potential savings to increase medical
service. As data collection and analysis improves, the fire department can expand its efforts and
make other changes.
The PAFD has not changed its approach to emergency service protection in many years.
The current MOU is overly restrictive in its requirements for staffing and few changes can be
made until language in the contract is changed. To this extent the city may be limited in the
changes it can make even when they make sense (operationally or financially). Another
limitation for the city is the size of the current fire stations, which are small (and in some cases
outdated) to accommodate more apparatus or personnel. Savings are possible if two stations are
merged, but the city would need to construct a new station to achieve the savings.
To fully understand the discussions in this chapter more fully, the following definitions
are provided:
Engine – An engine is used primarily to supply water at the scene of a fire. These units
are staffed by three personnel, including an officer. In Palo Alto, one of the three persons on an
engine is usually a paramedic, thus engines improve the medical response system by providing
advanced life support (ALS) medical care even before a transport unit arrives.
Type III Engine – A type III engine is a smaller version of the engine listed above. Its
pumping capacity is also less than an engine and its use is primarily for brush and wildland fires
and the unit is specially designed for off-road use. When staffed, the Type III engine has three
personnel, including an officer. The unit in Palo Alto is only staffed during the months of July
through October and only then for 12-hour periods.
Rescue – A rescue unit is primarily responsible for extrication at accidents and the
personnel augment the on-scene staffing at structure fires. PAFD rescue personnel are also
trained and equipped to provide technical rescue and hazmat services. This unit is staffed by
three personnel, including an officer. One of the individuals may also be a paramedic.
Ladder – The ladder is primarily responsible for performing search, rescue, and
ventilation services at a structure fire. It is also capable of performing vehicle extrication and
supporting the rescue at the scene of a technical rescue incident. The fire department has only
8 For unknown reasons the MPD system has not be used.
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one ladder (Station 6). This unit is staffed by three personnel, including an officer. One of the
individuals may also be a paramedic.
Medic or ALS (Advanced Life Support) Unit – These terms are used interchangeably
to describe a two-person medical transport unit staffed by two paramedics. The PAFD staffs two
of these units now, one 24/7 the other for 12 hours/day.
BLS (Basic Life Support) Unit – BLS describes a two-person medical transport unit
used to provide intra-facility transports and handle non-life threatening medical calls when an
ALS unit is unnecessary. This unit is staffed by two, non-safety, emergency medical technicians
hired under contract. The fire department maintains a list of these individuals and schedules them
as needed.
Key Findings and Recommendations
This study resulted in many key findings contributing to the recommendations in this
chapter. Important ones include:
The demand for services in Station 8‘s area is too low to justify the cost and other
options may be available
The low call volume and workload for Rescue 2 suggest that it be cross-staffed by the
engine crew with the rescue staffing eliminated
Fire stations 2 and 5 can be merged as they have significant overlap not justified by
current or projected demand
Minimum shift staffing can be reduced slightly and still allow the second EMS rescue
to be staffed 24/7 instead of the present 12 hours
To maintain their usefulness and longevity, Stations 3 and 4 need capital upgrades
A protocol-based dispatch system methodology is needed for EMS calls such that fire
units are only dispatched to high priority medical calls, not every routine medical
situation
EMS can be more efficient if ALS rescues were staffed by one paramedic and one
emergency medical technician (EMT) instead of two paramedics9
9 County policy allows medic units to be staffed with one paramedic and one EMT.
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The current fire-based ALS transport and BLS system is recouping a significant
portion of the total cost and the ALS system now in place should be maintained, at
least for the near term
The level of service for ALS service in Palo Alto (based on response times) is better
than going with the County transport provider
The fire department‘s overtime budget can be significantly reduced by eliminating
fulltime staffing on the rescue
As part of this study we reviewed the draft report of the County‘s emergency services
conducted by the Local Agency Formation Commission of Santa Clara County (LAFCO).
Studies by LAFCO are conducted every few years and they are important for Palo Alto because
their focus is to improve regional efficiency. Findings reported by the study with significance to
Palo Alto were:
Three of the city‘s eight stations are in poor condition; ―Stations 3 and 4 do not meet
current building standards.‖
Opportunities to share facilities with other jurisdictions such as Mountain View and
the Santa Clara Central Fire Protection District exist.
Opportunities to share maintenance and dispatching exist.
Opportunities for a regional service sharing by Joint-Powers Agreement (JPA) are
available; potential JPA partners with Palo Alto include Mountain View, Santa Clara
Central Fire Protection District, and possibly Menlo Park. A JPA with Menlo Park,
though possible, would require significant effort because Menlo Park is in San Mateo
County.
Stations 2 and 6 could be consolidated (Our study recommends Stations 2 and 5).
The PAFD provides good service and it can handle most calls without mutual or
automatic aid from other jurisdictions. Its organization, staffing, and station configuration is
similar to most other department, in particular, those which provide fire-based EMS and medical
transport. The downside is that the PAFD has not made significant changes to its system in many
years. It has also not been aggressive enough to explore service-sharing opportunities with
surrounding agencies to improve services and make them more efficient (this is a problem
regionally).
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Organization and Resources
PAFD operations are commanded by a deputy fire chief. Three battalion chiefs, one on
each of three shifts are responsible for commanding the fire captains at each of the city‘s seven
fulltime stations. Fire and EMS response resources and staffing for the stations in Palo Alto are:
Table 23: PAFD Facility Locations and Resources
Station Location Bays/ Year Constructed First-Line Apparatus Minimum Staffing
1 301 Alma Street 3/ 1965 1 Engine
1 Medic Unit
1 BLS Unit
3- 24/7
2 - 12 hours/ day
2 (contract civilians) weekdays
2 2675 Hanover Street 3/ 1965 1 Engine
1Rescue
1 Medic Unit
3 – 24/7
3 – 24/7
2 - 24/7
3 799 Embarcadero 2/ 1942 1 Engine 3 – 24/7
4 3600 Middlefield Road 2/ 1954 1 Engine 3 -24/7
5 600 Arastradero Road 2/ 1962 1 Engine
3 – 24/7
6 711 Serra Street 3/ 1972 1 Engine
1 Ladder
1 Battalion Chief
1 Type III Engine
3 – 24/7
3 – 24/7
1 – 24/7
Cross Staffed by Truck 6
7 Stanford Linear
Accelerator
2575 Sand Hill Road
2/ 1968 1 Engine 3 – 24/7
8 Foothills Park
Page Mill Road
1/ 1986 1 Type III (Brush) Engine 3 – July through October10
Totals 7 Engines
1 Type III (Brush
Engine
1 Medic Unit 24/7
1 Medic Unit 12 hours/
day
1 BLS Unit
1 Ladder
1 Rescue
1 Battalion Chief
30 – 24/7
2 – 12 hours/ day
3 – July through October
2 (contract civilians) weekdays
10 Staffed 12 hours per day on overtime
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In addition to the above apparatus that are staffed either full or part time, PAFD also has
in its inventory two reserve engines, one reserve ambulance, and several technical rescue trailers
and technical support units, including a breathing air support vehicle. These units are necessary
to support the fire department‘s operation and mission and are considered essential assets.
Further analysis of the current delivery model is possible by looking at the level of effort
provided by the various resources deployed. Table 24 shows the minimum staffing and level of
effort for the various units.
Table 24: Level of Effort, PAFD
Units Minimum Staffing Level of Effort Hours/Year
Engines 1-7
Engine 8
3
3
3 x 24 x 365
3 x 12 x 90
26,280
3,240
Ladder 6 3 3 x 24 x 365 26,280
Rescue 2 3 3 x 24 x 365 26,280
Medic 1
Medic 2
2
2
2 x 12 x 365
2 x 24 x 365
8,760
17,520
BLS1 2 2 x 8 x 5 x 52 4,160
Battalion 6 3 1 x 24 x 365 8,760
Total 34–37 - 121,280
Level of Effort – Fire 28–31 - 90,840
Level of Effort – EMS 2–6 - 30,440
The purpose of the above exercise is similar to that of a company evaluating whether its
efforts are directed to the product offered and those which are being sold the most. If, for
example, refrigerators are the area of highest sales, it is doubtful that a company would build (or
have more sales staff) in the television department.
From the table above one can see that a majority (75 percent) of the Department‘s effort
is directed to fire suppression, even though medical calls occur with much more frequency than
fires, especially serious structure fires. Later in this section we use this information to
approximate the time spent by the fire chief and deputy chief managing the EMS system by
equating their workload to the EMS level of effort. Our rationale is because these individuals
would likely spend their working time in relative proportion to the resources and personnel of the
various units; e.g., more personnel typically results in more personnel issues.
The current MOU stipulates the number of units and personnel that must be maintained.
Currently the minimum staffing is 29. The minimum staff number does not include positions to
staff the 12-hour ALS unit, the shift battalion, or the BLS unit. Though we understand the
concern of the union to maintain an adequate staff to maintain safety, we disagree that the total
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minimum staff should be in the contract. For the purpose of ensuring employee safety,
establishing the minimum number of personnel on an engine or ladder might be reasonable since
these are related to the tasks performed, and ultimately to the safety of the personnel working.
However, the city should never agree to a minimum staffing requirement that establishes the
total force as this equates to establishing the level of service provided.
Recommendation 21: Discontinue the practice of mandating the minimum number of personnel to be on duty within the MOU. It is reasonable to establish minimum unit staffing for
the various unit types. As data collection and analysis improves, adjust on-duty staffing to reflect
the demand for different times of the day/ week; also for the type and level of services required
the most.
Emergency Response
PAFD resources are assigned to eight response districts and units are dispatched outside
of their assigned district when the incident requires multiple units, or when the unit assigned to a
particular district is unavailable. As depicted earlier, seven of the districts have fire units
available 24/7. Station 8 is only staffed during the months of July through October.
Fire suppression units are all staffed with three persons to include one captain, one
equipment operator and one firefighter. Because ALS first response by fire units is provided, one
of the three individuals is usually a paramedic. However, the current policy is to staff each ALS
unit with two paramedics, thus there is not always enough paramedics such that every fire unit
also has a paramedic. With the exception of Engine 8, which is a Type III engine designed for
wildland fires, all of the other engines are designed for structural firefighting (Type I engines).
The fire-based system with paramedics assigned to suppression units is a common approach
throughout the region.
For medical calls and transport, two ALS units are available. The city‘s primary medic,
located at Station 2, is staffed 24/7. A second ALS unit located at Station 1 is also staffed by two
paramedics, but only for 12 hours each day. The PAFD pays overtime to staff the ALS unit at
Station 1. A third medic unit (reserve) is also available when it is not being used as a
replacement vehicle for medic 1 or 2. When available, the medic at Station 1 is staffed by the
engine crew during periods of high demand. The fire department maintains the right to provide
medical transport service separate from the County by virtue of maintaining its Legislative 201
rights.
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Operational Changes
Based on the station location and response time analysis and the workload analysis of
current units, changes to the city‘s deployment model are feasible. There are limitations because
some of the changes can only be made if a new station is constructed such that Stations 2 and 5
can be merged.
Rescue 2 – Rescue 2 is a fully staffed unit whose primary responsibility is to perform
extrications at vehicle accidents and other situations where individuals become trapped. It is also
an additional resource on structure fires. At structure fires rescue personnel perform ventilation,
search and rescue, and other support activities that allow the fire to be extinguished effectively.
The rescue in Palo Alto is also the city‘s hazmat team and recently the unit was designated to be
part of the state‘s hazmat response system.
The functions performed by the rescue are important. The problem is the number of calls
for rescue and hazmat services are extremely low. In particular, structure fires are infrequent as
shown in the risk and demand section of this report. The bottom line is there is just not enough
activity to justify an independently staffed rescue in Palo Alto. If operated on a regional basis
where the cost is shared by several communities, the call volume might justify its cost as a
fulltime resource.
A better approach is to cross-staff the rescue with the engine co-located in the same
station. To do this the on-duty crew would handle calls as they occur in what is generally called
‗handle first emergency‘. For example if a medical call occurs, the engine would respond. If the
call is a structure fire in another district, the rescue would respond. Response policies would
need to be revised. To make the cross-staffing approach work effectively, the cross-staffed
engine/ rescue could be staffed by four personnel, not three, to include one officer, one
paramedic/ firefighter, and two firefighters.
Recommendation 22: Eliminate the fulltime staffing of Rescue 2 and cross-staff it.
If the engine and rescue at Station 2 were cross-staffed with three personnel, the
equivalent of 12 FTEs could be eliminated with an estimated savings of $1.38M. The savings
would result from a decrease in overtime. If the unit were staffed with four personnel instead of
three, the savings would obviously be less.
There is also an opportunity to work with other departments in the county to examine the
feasibility of regionalizing the services provided by the rescue. Hazmat and other functions
performed by the rescue are needed elsewhere as well and the city could further save if the unit‘s
cost were shared.
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Recommendation 23: Begin discussions with surrounding agencies about sharing rescue and hazardous materials response capabilities. The outcome of discussions would determine the direction of rescue services when Stations 2 and 5 are merged. It would also determine the
footprint of the new station depending on the location of the rescue. Mountain View and Menlo
Park are two principle agencies to include in the discussion.
Staffing a Second ALS Unit – Demand for EMS far exceeds that for fire suppression,
yet the resources available to handle medical calls is much less. The analysis also shows that
medical calls will increase over the next ten years at a rate higher than for other calls. To
improve EMS capabilities the 12 hour ALS unit should be staffed 24/7 such that the PAFD is
able to handle almost the entire call volume for medical calls, especially during weekday hours
when the BLS unit is also staffed. Reportedly, an unfinished EMS study by another consultant
was to make a similar recommendation. The unit should continue to be located at Station 1
because it is an area of very high demand.
The PAFD presently cross staffs a third ALS unit with the engine crew at Station 1 when
the reserve ambulance is available for use. After the second ALS unit is staffed fulltime, a 3rd
unit can continue to be cross staffed. Because fulltime ALS units would be located at Station 1
and 2, the cross-staffed unit should be located at another station. Station 7 would be a good
choice for the reason that it has a low call volume and a paramedic is needed at Station 7. To
place the unit at Station 7 however, requires that SLAC agree that the 20-minute rule for
backfilling Station 7 be modified.
Beginning January 3, 2011, the 24 hour medic van was moved to station 1 and the 12
hour medic van was moved to Station 2. Engine 2 now cross-staffs Medic 3 afternoon. This was
done to alleviate the demand on Engine 1 in District 1.
PAFD expressed concerns about the Station 7 proposal because without the modification,
another engine would have to backfill for any response. Also, an ambulance will not fit in the
station; only the engine fits which may require facility modifications. Staff felt Station 3, 4, or 5
would be better locations for the cross staffed ambulance but this would ignore the low
utilization of Station 7 personnel and equipment.
Recommendation 24: With the savings of cross-staffing engine and Rescue 2, staff a second medic unit 24/7 and continue ALS transport. Also, staff a third medic (weekdays and during
expected high call periods) using overtime and cross staff the third medic during non-peak times.
The anticipated incremental cost to maintain 24/7 staffing is $427,400.To calculate this we
determined the cost to staff the unit 24/7, then subtracted the overtime to staff the unit for 12
hours/ day.
Merging Stations 2 and 5 – Engines 2 and 5 both have low call volumes and work-
loads. As the response time analysis shows, if the stations were to be merged response times to
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the area would still be adequate. The general area of Miranda Avenue (Foothill Expressway)
near Hillview Avenue is a good location to consider because it has excellent access across
Junipero Sierra Boulevard toward Campus Drive to access Stanford University. It is also
excellent to access Arastradero Road by way of the Parkway toward to the area covered now by
Station 5.
By merging these stations one engine company could be eliminated. The rescue, if it
remains solely a city resource, should be located here along with one engine. Depending on the
move made concerning Station 8, the Type III engine could also be located at this facility. Based
on data we reviewed, it is estimated that the call load would be approximately 1400 emergency
responses with an emergency workload of approximately 700 hours – very manageable. This
would be similar to Engine 1 now, which responds to 1614 emergencies and has an emergency
workload of 698 hours.
Recommendation 25: Merge Fire Stations 2 and 5. A suitable location to maintain excellent
coverage and improve efficiency is in the vicinity of Miranda and Hillview Avenues. Because
planning for a new station would take several years, the city would be able to make small changes such as cross-staffing the engine/ rescue and staffing the second medic while it evaluates
the larger question of station consolidation.
Approximately 11 FTE positions could be eliminated by merging Stations 2 and 5. This
would include three captains and nine firefighters, or four personnel on each of the three shifts.
Based on the average salary and benefits for captains and firefighters the savings are estimated at
$1.35M.
Recommendation 26: When Stations 2 and 5 are merged, eliminate one engine and continue to cross-staff one engine and the rescue. As an alternative, the rescue could be independently staffed if the unit is funded by the multiple jurisdictions such that it becomes a regional resource.
Station 8 – A question posed by the city for this study is whether staffing Station 8 in the
west Hills district area makes sense, and what other options might exist?
Fire Station 8 is located in a rural area west of the city. It is staffed with three personnel
using a Type III engine that is kept at Station 5 when not being used. Station 8 is only staffed
during the ‗assumed‘ high-fire season and then for only 12 hours each day from July to
November. In all of 2009, Engine 8 responded to only 17 calls and the total workload for these
calls was only 12 hours. The cost in overtime to staff Station 8 is $188,000.
The cost to staff Station 8 was previously shared by the city of Los Altos, which paid
Palo Alto $50K per year. A new station was constructed by Los Altos nearby which led to Los
Altos deciding not to continue paying the cost. Although we did not analyze the location of the
Los Altos station relative to the situation in Palo Alto, this is probably a ‗lost opportunity‘ to
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improve regional efficiency. Considering the cost versus the return, questioning whether Station
8 should be staffed is justified.
The problem with staffing this station is not just cost, but also logic. Assuming that a fire
will occur only during the months July through the end of October makes no sense. Serious
brush fires can occur any time of the year. Also, there are only about 10 high-fire days each year
and the days are known by state officials because they evaluate the conditions. Another problem
is that medical emergencies occur with much greater frequency than fires. If the unit is only
staffed 12 hours per day over three months, is it likely the unit would be available to handle a
cardiac arrest? Not if the unit is available only 12 percent of the time (1080/8760).
A better and more cost efficient way might be to install infrared technology that would
allow the entire wildland region to be monitored for a potential fire 24/7. Such technology is
available and has been used for some time. The initial cost is unknown, but the city could
probably partner with Stanford University‘s engineering department to develop the system. It
would be an excellent way to improve efficiency and the project would likely be embraced by
the university as a good project for engineering students. The city might also be able to involve
other agencies such as the DOE, the primary tenant at SLAC.
Recommendation 27: Partner with Stanford University to develop and install infrared (IR) technology in the west Hills area in lieu of staffing Station 8 only part of the year. Include residents of the west Hills area in the planning process.
We also considered whether other agencies have interest in sharing Station 8 such that the
cost could be reduced to the city and service level hours extended. For this we contacted Cal Fire
officials to determine possible interest because they have a nearby station with two engines. Cal
Fire would consider moving one of the two engines already located at the station near Skyline
Boulevard south of Los Trancos Road. Options and the estimates to provide an engine at Station
8 for five months (24/7) were:
Two-person Type III engine = $205,000
Three-person Type III engine = $290,000
The cost under either option is considerably less per hour than the city currently pays.
Certainly there are contractual issues with the union to consider, but is at least worthy to explore
the possible options.
Another option is to cross-staff the Type III engine from a new station if Stations 2 and 5
are consolidated at a new location. The recommended location for the new station would allow
this to occur, albeit response times to the Hills area would be longer than for the rest of the city.
Considering that few fires occur in the Hills area, the longer response time may be acceptable.
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Depending on the direction taken for cross-staffing a rescue and engine at the new station, the
same crew could also cross-staff the Type III engine because the wildland fire workload would
be minimal.
A third possibility is to involve the current members of the CERT team and train them as
an auxiliary force to staff Station 8. The city has many citizens participating in the CERT
program and they are very active. This would require a contractual modification and staff
expressed some concern because of the average age of CERT participants.
Recommendation 28: Discontinue staffing of Station 8 using overtime on the existing schedule of 90 days and instead staff the station only during high fire days as determined by
Cal Fire. Other options to consider include contracting with Cal Fire (or another agency), or
developing an auxiliary from the existing CERT members. A longer-term option is to cross-staff
the Type III engine (Engine 8) with personnel from Stations 2 and 5, when these stations are consolidated.
Stations 3 and 4 – Stations 3 and 4 are the oldest facilities and they are in the worst
shape, structure wise. Their locations are good overall and they could not be eliminated without
degrading coverage. In their present condition there are few options to expand the services
provided from these stations, even if the need were justified.
Recommendation 29: Replace or significantly upgrade Stations 3 and 4 at or near their
present location. At the same time, conduct a facilities review of all stations to include meeting earthquake resistance standards and future space needs. PAFD‘s stations are small generally, and this fact limits the deployment changes which the fire department could make, even when
data suggests that it be done.
Regional Opportunities – Even as the city begins to make changes with an eye to
improving efficiency, it will not achieve the full potential possible without including other cities
in the discussion. An example is sharing the rescue that we discussed earlier.
The most appealing and potentially cost-saving initiative may be to share the cost of a
fire station with Menlo Park, which has a station less than one mile from Palo Alto Station1.
Certainly there are obstacles to this because Menlo Park is in San Mateo County, but it should be
explored. There may be other opportunities as well with Los Altos and Mountain View.
Recommendation 30: Hold discussions with Menlo Park to evaluate the possibility of sharing the cost of operating Station 1 in Palo Alto with Station 7 in Menlo Park. Discussions should also be conducted with Los Altos and Mountain View.
Staffing and Overtime Analysis
For this study we conducted a staffing-factor and overtime analyses. A staffing factor is
the ratio of FTE positions per minimum on-duty position requirements. Because fire departments
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are 24/7 operations, the staffing factor (multiplier) determines the level at which to staff the
department based on its daily staffing requirements. For overtime the city wanted to know the
‗break-even point‘ where it makes financial sense to hire additional firefighters rather than to pay
current staff overtime.
Staffing Factor – To determine the PAFD staffing factor we examined leave data for all
fire personnel for an entire year. The staffing factor is based on the total number of hours in a
year (8,760) divided by the average number of available hours for a single firefighter. Palo Alto
firefighters are paid for 2,912 hours per year, but because of holidays, vacation, sick leave, other
time off, and other duties such as training, a firefighter is not really available to work all 2,912
hours.
On average, each firefighter was absent an average of 405 hours during FY2009–2010.
Thus, a firefighter is only available to work 2,507 hours. The staffing factor to cover one on-duty
position 24x7 (8,760 hours per year) is 3.49; that is, it takes 3.49 firefighters (8,760 ÷
2,507=3.49) for every position filled 24/7. Because the absence data is provided by position
classification, we were able to determine the staffing factor for the positions of battalion chief,
captain, and firefighter.
The number of FTE positions necessary to staff the PAFD does not include those filled
through overtime such as Medic 1 and Station 8. Table 25 shows the staffing factor based on the
data we analyzed.
Table 25: PAFD Staffing Factor Analyses, FY2009–2010
Position
Classification Paid Hours
Average Annual
Hours Absent Available Hours Staffing Factor
Battalion Chief 2,912 325 2,587 3.39
Captain 2,912 425 2,487 3.52
Firefighter 2,912 405 2,507 3.49
A minimum of 105 FTE position are needed to staff the current shift fire system
comprising one battalion chief, seven engines, one ladder, and one rescue 24/7. The overtime
budget appears much higher than it should be given that 105 FTE positions is the authorized
strength for the PAFD. We suspect that the actual staffing factor is probably higher than we
analyzed, possibly because not all absences are being recorded. If station personnel are assigned
temporary or light duty, or to outside training and these are not included in daily absence records,
the fire department could not reasonably know how many firefighters (or overtime) are needed
for its situation.
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To determine the staffing necessary for the changes we recommend in this study, leave
data provided by the Department and our calculation of the staffing factor were used. Leave data
used in the analysis is provided in Appendix B.
Overtime Analysis – Some overtime will always be incurred because of daily staffing
fluctuations that require more firefighters to be off above the norm. Overtime often costs less
than carrying more firefighters—the cost of overtime may be less per hour worked if benefits are
considered. The tipping point depends on whether the overtime is earned by experienced higher
paid firefighters vs. full time entry level firefighters. The results of the analysis below will
probably be surprising to those who hold the widespread belief that overtime significantly drives
up costs. In fact if you don‘t spend enough on overtime, and have extra full time firefighters
above the number needed each day, it cost more, not less.
According to the Department, 36 positions per platoon are available when each shift is
fully staffed. However, because of temporary assignments, disability, and vacancies it is unusual
that all 36 positions are actually filled. In addition, the labor agreement provides that a maximum
of four positions can be scheduled for vacation each day. As a result there are days when only 32
persons are on duty even if the shift is at full staff. This leaves only two positions above the
minimum needed to fill the 30 on-duty minimum slots. If there are other absences, or if the shift
is understaffed, overtime will be required.
To determine how often overtime is used to maintain the minimum on-duty staffing, an
analysis of overtime use was performed for FY 09-10. The Department provided a data file that
specifically identified the overtime used for the on-duty minimum staffing. The analysis
involved identifying the overtime hours needed each day to fill the on-duty minimum
requirement. Overtime for Medic 1 and Station 8 was not included in the analysis because of the
limited and part time nature of these services.
Table 26 shows the number of overtime shifts and the number of days that those shifts
occurred.
Table 26: Distribution of Overtime Shifts, July 2009 to June 2010
Number of 24 Hour
Overtime Shifts per Day Number of Days Percent of Total Days
0 13 4%
1 30 8%
2 41 11%
3 63 17%
4 68 19%
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5 58 16%
6 43 12%
7 30 8%
>7 19 5%
Total 365 100%
In 2009, $4.0M was required for overtime (Appendix C). A key financial question is
whether there is a cost benefit to hire additional personnel staff instead of paying overtime. To
determine this various scenarios were tested. Regardless of the scenario tested, hiring additional
firefighters did not always save more overtime than what it cost to pay the firefighters.
The reason that hiring more firefighters is not cost beneficial is that the total salary and
benefits cost is slightly higher per hour than the overtime costs. The number of hours worked and
the 54% benefit costs significantly raise the cost of a new hire compared to using overtime,
which adds only 50% to the hourly salary cost and only an incremental 1.8% in benefits. Based
on the salary and benefits costs of a new firefighter and the number of hours that would be
available compared to the cost of overtime to fill those same available hours, it is generally more
cost beneficial to use overtime.
If new firefighters are being hired all the time, such a hiring strategy might produce some
savings. However, as firefighters progress to higher pay grades each year the cost benefit of the
overtime advantage decreases as the firefighters‘ salary increases. As years go by, any initial
savings differential begins to disappear.
Figure 31, shows the total costs of one firefighter available per day at different pay levels
compared to the cost of the overtime at step 5 based on the number of overtime hours. When new
firefighters are hired (Assumes that the staffing factor is at 3.5), there is a point (8,368 hours)
when hiring new firefighters is slightly less expensive than paying overtime. However, as this
group of firefighters remains with the Department, the cost of this group at salary steps 3 and 5 is
always higher than the cost of overtime, and as a result there is no breakeven point.
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Figure 31: Hiring and Overtime Cost Comparison
Although the above analysis suggests that overtime saves money compared to hiring
additional firefighters, the analysis does not account for the impact on morale and fatigue if the
existing firefighters must continually work overtime because of staff shortages. Thus, the fire
department must also balance the cost of overtime with the reality of overtime on firefighters and
its operation. Also, for a major emergency requiring a surge of personnel on duty, the bodies will
not be there if overtime has been totally depended on for staffing.
Emergency Medical Services
As it stands the PAFD is delivering very good medical service, probably better than
citizens could expect if services were contracted. The system, as we shall see later, is recouping
some of the cost for ALS transport and the full cost of the BLS transport system with part time
personnel is being recouped. There is a need to increase medical response capabilities to meet
current and expected demand. The additional resources can be implemented at no additional cost
if the fire department eliminates the dedicated staffing on its rescue as we recommend.
EMS Delivery Model and Cost Analysis – The fire department uses a three-tiered
system to handle medical calls. The primary response is by engine companies who are the first
responders. The second tier is the ALS transport service, which is provided by two paramedics.
The third, and essential tier, is the BLS transport unit that is staffed by civilian Emergency
Medical Technicians (EMTs) during weekdays.
$300,000
$350,000
$400,000
$450,000
$500,000
$550,000
6,
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FF EMT Step 3
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Overtime
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EMS generates approximately $2.1M annually and response times by city medic units is
much better than the 12-minue goal for American Medical response (AMR) required by the
County. A change to AMR as the transport provider would likely raise concerns among the
public as an unacceptable service-level reduction. It should be noted that Santa Clara County has
entered into a new vendor contract for ALS transport services with Rural Metro beginning July
1, 2011.
Although the model used by the PAFD is generally a good one, there are problems. First,
there is not enough management oversight for the program and the current EMS coordinator is
overwhelmed trying to keep up with the workload, especially training and the Continuous
Quality Improvement (CQI) program. There are also issues with how calls are dispatched and
handled because current policy requires sending a fire unit and an ALS rescue on every medical
call, regardless of how minor. Additional ALS transport capabilities are needed, but if the
dispatch protocols are not changed, adding another fulltime ALS unit might not be enough. And
though not a critical problem, it is our opinion that shift battalion chiefs should be required to
have (and maintain) ALS certifications, for the reason that the PAFD‘s main effort is toward
medical response, not fire suppression.
First Response: A primary reason for fire departments to begin delivering medical
response services is their emergency units were deployed in smaller response districts, therefore
arrived at emergencies more quickly than centrally located ambulance services not able to meet
recommended response standards. Most national medical standards seek a staged system with the
minimum standard being that BLS first-response arrival within four minutes and ALS within
eight minutes, 90 percent of the time. Many communities do not meet this goal but Palo Alto
does, in most cases.
California Health and Safety Code Section 1797.201 (referred to as 201 rights) allows
cities, that provided care prior to June 1, 1980, to continue and retain administration of pre-
hospital care services, however the County Health Officer maintains control of medical
standards. Palo Alto is one such City, providing both ALS and BLS transport. The fire
department generally has enough paramedics to staff its units, however, there are issues with
maintaining the necessary paramedics for all fire units to be ALS staffed all of the time.
Cities, including Palo Alto, question the necessity of sending a 20-30 ton fire engine or
ladder truck to medical emergency. Smaller units would be more efficient and less costly than
fire engines, but additional staffing would most likely be necessary or the smaller units would
have to be cross staffed. Some agencies are migrating to a cross-staffing model based on the fact
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60 percent or more of their calls are medical in nature, therefore the risk of increased response
time due to concurrent fire related emergencies is small and the change is justified.
For Palo Alto, which has a real need to improve its data collection and analyses system
before it can become more sophisticated in its deployment strategies; the current fire-based ALS
first response system where first-line units respond with paramedics and medic units provide the
transport is a good approach. As the fire department becomes more effective with analyses, and
the organization begins to make other changes, then cross-staffing of light-duty response units
can be explored. The facilities issue of fire stations that are already too small must also be
addressed such that small response units could be added to stations, in addition to the fire units
there already.
Management of EMS: Oversight of the EMS program is provided by the deputy chief
(operations) with day-to-day coordination by a civilian coordinator. Clearly, the three-tiered
EMS system in Palo Alto is complex and there is a need to add additional oversight with the
current coordinator, who is not uniformed, providing program support. A major concern of the
current system is that the coordinator, as a civilian, is unable to respond to emergencies, or
participate as a member of the incident command team. Given that a major emergency in Palo
Alto could well be a mass-casualty incident, the lead person for EMS should be a battalion chief.
Recommendation 31: Maintain the current fire-based EMS first response system and add a battalion chief to manage its operation. The organizational structure we recommended in Chapter II combines the responsibilities for training and EMS under a single battalion chief.
There is also a problem with the current dispatch protocols that require a fire unit to be
dispatched on every medical call, even minor ones. The fire department‘s policy is also to send
an ALS unit to every medical call even when the BLS unit is available. These are unusual
policies that make little sense when efficiency is important, especially during busy periods. It
was also explained that emergency dispatchers do not use the Priority Medical Dispatching
(PMD) software that is already installed in the CAD program. Properly used, PMD with pre-
arrival instructions can and does save lives. It also aids in making certain that the right resources
are dispatched.
Recommendation 32: Develop a protocol based dispatch system methodology for EMS calls such that fire units are only dispatched to high priority medical calls, not every routine medical situation. Also, implement the medical priority dispatching system already available in the CAD software. Making these changes will lessen demand on the total system, particularly
during peak periods, and it will improve system efficiency.
Revenue and Cost Analysis: A question for this study was whether the cost to deliver
EMS transport by the fire department is fully recovered through the fees charged to patients. The
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PAFD does not specifically budget for its ALS ambulance service but does have a separate
budget for its BLS ambulance service.
To estimate the salary and benefits costs for the two paramedics that staff Medic 2 (24/7),
we used the firefighter staffing factor and the salary and benefit costs for a paramedic at
$164,463. For two on-duty positions, at least seven paramedic staff are needed to provide the
staffing, and the salary and benefits cost for the seven paramedics is $1,151,241. In addition we
added the overtime costs already budgeted in the Advanced Emergency Medical-Paramedic cost
center. The FY 09-10 costs from the rest of the Advanced Emergency Medical-Paramedic cost
center were used, which also included vehicle replacement costs of $31,070 and vehicle
maintenance costs of $66,057.
The current Advanced Emergency Medical-Paramedic cost center has salary and benefits
for portions of various positions, such as a Battalion Chief, EMS Coordinator, Firefighter
Paramedics, Fire Apparatus Operators, Firefighters, Operator Paramedics, a Deputy Fire Chief,
and Administrative Associate IIs. Because the specific costs were not identified, none of these
other costs were included. However, a position like the EMS Coordinator would increase costs if
these costs were fully accounted within the ALS budget.
Table 27 shows the revenues for both ambulance programs and the combined estimated
costs just to provide the services. The costs do not include portions of salaries and benefits from
other positions that provide indirect support to the programs or costs associated with
departmental overhead and other costs. The costs just to provide the ambulance services are
slightly less than the revenue by $42,650.
Table 27: Estimated Cost of Service and Cost Recovery, Palo Alto EMS
Revenues
ALS Fees $1,986,026
BLS Fees $234,489
Total Revenues $2,220,515
Expenditures
BLS Ambulance Program $91,864
Medic 1 Overtime $427,392
Medic 2 Salaries & Benefits 1,231,807
Other advanced emergency medical-paramedic costs $426,802
Other staffing costs Unknown
Total Expenditures $2,177,865
Difference $42,650
If the cost to manage the EMS program, including oversight by the EMS Coordinator, is
included, the costs become greater than the revenues. The EMS Coordinator spends 100 percent
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of her time coordinating EMS programs. We also added portions of the fire chief and deputy
chief salaries from the apportionment of the levels of service earlier in this section. The
additional cost can be calculated as follows:
Full cost of EMS Coordinator/ benefits = $161,652
Partial cost (25 percent) of Fire Chief/ benefits = $67,075
Partial cost (25 percent) of Deputy Fire Chief/ benefits = $59,179
Total additional cost = $287,906
The cost for just these salaries (and benefits) increases the total cost, and as a result, the
costs are greater than the fee revenues by $245,256. Even if the unrecovered cost was to be
slightly higher than $245,000, it is likely that citizens because of other factors would opt for the
ALS transport provided by the PAFD over the longer response times achieved by AMR.
Additional revenue can be generated if a second ALS transport unit is staffed 24/7 instead
of the current 12 hours.11 However, additional staffing costs would also be incurred, and the
increase in revenue might not offset the additional costs. To calculate the total cost for EMS
transport more precisely, the fire department should also include such things as utility costs for
the space used at the various stations, administrative overhead, and other indirect expenses. An
analysis of this level is beyond the scope of this project.
Our review also found a critical need to improve the accounting system for ALS and use
a similar enterprise accounting system for ALS that is now used for BLS. Reportedly,
expenditures and revenues can be tracked using the Advanced Emergency Medical-Paramedic
cost center. In this way all costs, including portions of the salary and benefits for management
staff as we estimated earlier can be factored in.
EMS Fees and Collection Rates: The City has a variety of fees that it charges for
transporting patients via the City‘s ALS and BLS ambulances. The fees range from a single BLS
transport at $450 to an ALS II transport at $1,595. Other EMS charges involve mileage, special
event standby, scheduled BLS transports, night transports, and oxygen. Appendix D shows the
City‘s transport fee schedule.
Although the City has a set fee schedule, the collection rate for the fees charged averaged
only about 53% in FY 09-10. Based on information provided by the City‘s billing and collection
11 It is estimated that a minimum of 500 transports per year would be achieved if the second ALS were staffed
fulltime. Assuming the current mix of ALS and BLS transports, the estimated revenue from these additional transports is $352,500.
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vendor, the City charges totaled $4,042,274, but the collections only totaled $2,146,333. The
average payment was $705. The amount collected primarily depends on the type of insurance.
For example Medicaid and Medicare patients had collection rates of 10% and 35%, respectively,
while patients with auto insurance, Kaiser, or private insurance had collection rates of 92%, 67%,
and 78%, respectively. The City‘s ability to generate revenue from EMS transports is based on
the mix of patients and their insurance coverage. In FY 09-10 45% of the patients were on
Medicaid and Medicare, while another 47% paid with auto insurance, Kaiser, or private
insurance. Often the transport fee covered by insurers is limited or has a maximum amount, and
such limitations can affect the City‘s ability to collect additional revenue when it raises its fees.
What is not covered by insurance must then be paid by the patient or written off depending on
the City‘s collection policies regarding these types of fees.
As previously discussed, when fee revenues do not cover the costs of EMS and the
related transport services, the City provides the funding to help offset the costs of the ALS and
BLS ambulance program. In the future, insurance, demographic, and personal economic changes
might play an important role in the City‘s ability to maintain and generate additional transport
revenues.
EMS Transport Options: If, when a thorough cost accounting is completed, revenue
does not justify transport by the fire department, the city can consider other options. It could
contract for transport to a private firm under a franchise format. Or, it may be able to establish a
separate contract with AMR under the County agreement with higher service-level standards to
include dedicated transport units for the city to provide faster response times than required by the
County. These and other options and a full review of the entire EMS operation were to be
addressed in a study by another consultant; however, the study was never completed. To explore
these opportunities and fully review the operation of EMS such a study should be completed.
Recommendation 33: For the present time, maintain the EMS transport system provided by the fire department. An estimated 85 percent of the cost for EMS transport is being recovered by
ALS and BLS fees.
Recommendation 34: Conduct a thorough analysis of the EMS operation, including transport options. There will be limitations to what the city can do because EMS policies are directed under the authority of the County Health Officer, and thus a full review is needed.
Recommendation 35: Following a full EMS review, decide whether to replace the current
fleet of ambulances, or consider giving the ambulance fleet to the vendor if services are
contracted. If the city continues to provide transport, replace the ambulances beginning with
the unit having the highest maintenance costs.
Another need is to add a paramedic to the engine already located at SLAC such that one
of the three personnel on the engine is always a paramedic. Personnel at SLAC have concerns
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that a paramedic is not available on the engine when the most serious hazard at SLAC is a
potential electrocution due to the high-voltage used. Even minor electrical shocks cause
arrhythmias that quickly cause cardiac arrest. If addressed quickly, the arrhythmia can be treated
by a paramedic.
Recommendation 36: Assign a paramedic to Station 7 such that Engine 7 can be operated as a paramedic first-response engine.
Immediate and Long-Term Changes
Based on our analysis, if the entire slate of changes were implemented the following
would approximate the department‘s station and staffing under a new model. These are based on
the staffing analysis and the ability to eliminate much of the current overtime.
Table 28: Deployment Changes – Immediate Opportunities
Station Units
Battalion
Chief Captain Lieutenant
Firefighter/
Paramedic Firefighter Total
1 1 Engine
1 ALS
1
2 3
3
6
12
3
2 1 Engine
1 Rescue
1 ALS
1
2
3
3
6
12
3
3 1 Engine
1 ALS (Peak)
1
2 3 6 12
4 1 Engine 1 2 3 6 12
5 1 Engine
1 Type III
1
2
3 6 12
6 1 Engine
1 Ladder
1 BC
3
1
1
2
2
3
6
9
12
12
7 1 Engine 1 2 3 6 12
8 Eliminated
Totals 1 BC
7 Engines
1 Ladder
1 Rescue
2 ALS Units
(24/7)
1 ALS Unit
(Peak)
3 8 16 27 51 105
On-duty 24/7= 26
On-duty (peak) = 28
The anticipated savings if the immediate changes are implemented are estimated at
$1.57M. These include cross-staffing the rescue and engine at Station 2 and eliminating the
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overtime for Station 8. The savings would be somewhat offset by the additional expense of
$425,000 necessary to staff a second medic unit 24/7 instead of 12 hours per day.
There would also be some additional overtime to staff a third medic unit during peak-
demand hours. We estimate this to be about eight hours each weekday, though some of time may
be during major athletic events at the University. There are also potential savings if, as we
recommend, two of the three officers assigned to each station are lieutenants instead of captains.
Each position changed from captain to lieutenant would save approximately 10 percent of the
salary and benefits of a current captain.
Table 29: Deployment Changes – Long-Term Opportunities (Stations 2 and 5 Merged)
Station Units
Battalion
Chief Captain Lieutenant
Firefighter/
Paramedic Firefighter Total
1 1 Engine
1 Medic Unit
1
2 3
3
6
12
3
2 1 Engine
1 Rescue
1 Medic Unit
1 Type III
1
2
3
3
6
12
3
3 1 Engine
1 ALS (Peak)
1
2 3 6 12
4 1 Engine 1 2 3 6 12
5 Eliminated
6 1 Engine
1 Ladder
1 BC
3
1
1
2
2
3
6
9
12
12
7 1 Engine 1 2 3 6 12
8 Eliminated
Total 1 BC
6 Engines
1 Ladder
1 Rescue
2 ALS Units
(24/7)
1 ALS Unit
(Peak)
3 7 14 24 45 93
On-duty
24/7 = 23
On-duty
(peak) = 25
Further savings would result if Stations 2 and 5 are merged. The anticipated savings of
reducing the minimum staffing to 23 personnel on-duty instead of 26 under the first model is
approximately $1.35M.
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VI. FIRE PREVENTION, TRAINING, AND 9-1-1 DISATCH
This chapter discusses the delivery fire prevention and code enforcement, which are so
important to risk management. Training and the 9-1-1 dispatch system are also presented.
Fire Prevention
Given the city is built out and population growth will be minimal, the fire department
does not need to add resources in the next few years, especially if prevention activities are
maintained at a high level.
To maintain excellent fire safety and to keep from having to add firefighters as the city‘s
building stock gets older, the city should continue its efforts to increase the number of buildings
that are sprinklered. There is also a need for firefighters to be more active in prevention
activities, not just available after a fire starts. The work of this division is critical to the mission
of the fire department.
Staffing – Fire prevention is currently managed by an acting fire marshal (fire captain).
Primary responsibilities include plan checks, new construction inspection, consulting with
developers and builders, building permit inspections, and inspections mandated by the State of
California Fire Marshal. It is also responsible for coordinating the inspections conducted by fire
engine companies. Assistance with plan checking is obtained using a former assistant fire
marshal at an hourly rate.
Prevention staffing also includes three fire inspectors, two hazardous materials inspectors
and one administrative associate II. One fire inspector position was eliminated during a recent
budget reduction. This division is also responsible for improving training and data management
systems and improving the Geographic Information Systems (GIS). However, these activities
were put on hold because of limited staffing. Because it has limited staff, plan checks are
sometimes referred to contract employees.
This division is also responsible for specialized hazardous materials inspections in
approximately 400 occupancies and is responsible to implement the recently adopted wildland
urban interface management plan (Foothills Fire Management Plan) adopted October 2009 by
the City in which inspectors place emphasis on inspections, enforcement and public education in
wildland urban interface areas for fuel modification and evacuation planning.
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Clearly, the prevention division has a very high workload and is very important to the
department‘s mission. For these reasons it is imperative that the city fill the fire marshal position
as soon as possible. To expand the potential list of qualified candidates, the city should consider
civilianizing the position, which in fact, the just retired fire chief was interested in doing.
Recommendation 37: Fill the vacant fire marshal position. The position does not need to be a uniformed position. In fact, by hiring a civilian fire marshal, a broader applicant pool can be
achieved. Another consideration is to share the fire marshal position with adjacent communities
to reduce cost and improve efficiency.
Fire inspectors are currently sworn uniformed employees and are permitted to work
overtime at fire stations, though not on their regularly assigned work day during the week. In our
opinion allowing inspectors to work overtime is not a good practice for the reason that it detracts
from their primary responsibilities. Fire management counters that it is a good policy because the
inspectors bring with them their expertise when they work overtime at the station. Management
also believes it helps inspectors to keep their firefighting and EMS skills up-to-date. It is
questionable whether inspectors working a few shifts per year would keep their skills current
when this is already a problem for other firefighters who work shift work.
The department has considered civilian inspectors but has not acted to incorporate them
into the department. The city should consider doing this when openings develop. Also, if police
and fire are ultimately merged into a hybrid public safety department, it could consider merging
all of the city‘s code enforcement activities under one division. Alexandria, VA, which we also
studied, has had such a system for some time and it is working effectively. Another option to
consider is to merge all city code enforcement and inspection personnel under one department.
Recommendation 38: Transition the prevention division to non-firefighter personnel.
As previously mentioned in this report there are a significant number of buildings,
residential and commercial, that are not protected with full extinguishing systems. This makes it
all the more important to have an adequate prevention program to help control loss in a more
predictable manner and also the cost of emergency response. We analyzed the staffing needs of
the fire prevention division, which is having difficulty keeping up with its workload.
Because of its lean staff, current policy is for station personnel to perform many of the
state-mandated inspections. However, these inspections are not up to date. Station personnel are
also to conduct inspections of assisted living occupancies and these are reportedly not up-to-date
either. Reportedly, there are approximately 800-1,000 plan checks performed each year, many of
them for routine building modifications, though some are complex plans for large buildings.
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Recommendation 39: Improve the effectiveness of prevention and incorporate a mandatory program for station personnel to conduct detailed pre-emergency planning on all significant risks. A portion of every shift (even evenings and weekends) should be dedicated to prevention
and public education activities.
Productivity: The inspection division does not track the time spent on each inspection,
thus there is no way to evaluate whether inspections are being conducted efficiently. Future plans
should include input to a RMS such that all inspections are tracked from beginning to end. Time
entries should also be recorded for all plan reviews and professional consultation.
We think the approach taken by Philadelphia to monitor productivity of the line
firefighters in prevention is particularly effective and a ―best practice‖ Their chief requires each
fire unit to report what it has done in prevention each month. If little, he asks why. Palo Alto
might do the same.
Inspection Fees: Fees are charged for some inspections but the fee schedule has not been
updated in several years. The FM believes there should be fees for all services. One possibility is
to implement a business model for the code enforcement division such that the entire cost of the
operation is paid for by fees. A best-practice organization doing just this is Saint Paul, MN, a
department that we studied several years ago. At the time of this study the city‘s fire marshal
believes that it is covering about 75 percent of its operational costs, though he is not sure and
data is not be analyzed.
Recommendation 40: Have the fire marshal conduct a complete review of the entire fire
prevention division, including its goals, workload, and inspection frequencies. Include a
review of the inspections conducted by engine companies with a goal to increase the contribution of on-duty personnel toward prevention and code enforcement. At the same time review the fee structure for various services with a future goal of covering the cost of all services
through collected fees.
As the fire department increases its productivity in prevention overall, one area of need is
to improve the inspection and mitigation of ‗defensible space‘ hazards in the west Hills area of
the city. Such enforcement can easily be accomplished by on-duty firefighters and it reduces the
already low fire risk for the area covered by Station 8.
Recommendation 41: Improvement enforcement efforts of ‘defensible space’ in the west Hills
area.
Public Education: The PAFD does too little in public safety education with a bike safety
program (generally a police department function), school visitations and other ‗show and tell‘
programs. Reportedly the bike safety program is conducted by firefighters while on overtime,
which is unusual. There is also a poster contest for K-3 and the fire department reported that it
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did 329 public presentations of one sort or another in 2009. Overall, the fire department‘s formal
public education program with target-audience programs falls short.
For a city of its size, Palo Alto should have at least one fulltime public educator on its
prevention staff. By doing so, the city and its residents could save by further reducing fire loss.
Good public education programs also reduce unnecessary alarms, which in turn improves the
efficiency of the response system.
The individual responsible for public education should be a civilian, preferably with a
professional background in education. We encourage the city to look at Rome/ Floyd County,
GA as a community with a first-rate program. Rome/ Floyd County‘s program has been in
existence for over 20 years and is exceptional. In addition to providing education and fire safety
training, its public educators along with the county have tracked the retention rate of students
from K-12. All schools are required to present the programs, which are developed by the fire
department‘s public education specialist.
Recommendation 42: Add a public fire educator to the code enforcement division.
Other considerations to improve prevention and risk reduction efforts going forward
include:
Evaluate all high-risk structures not protected by automatic extinguishing systems and
prepare recommended ordinances to retrofit these buildings. Particular attention
should be placed on buildings four or more stories in height. Try to implement the
required retrofits over the next three to seven years.
Establish and monitor a data base of inspections and repairs by private contractors to
fire protection systems by structure by occupancy, time and date.
Conduct public education seminars about the potential problems with ionization
detectors and the differences between ionization and photo-electric smoke alarms.
Training
Training for PAFD personnel is a real problem area and it is one area that needs to be
addressed as quickly as possible. The key issue for training is that there is only one training
officer and his plate is full trying to address the entire training needs of the organization and be
the principal training planner simultaneously. A one person training staff can work in a small
organization where fire suppression is the only service provided. It is not effective though for
Palo Alto, which has a need to provide EMS continuing education and training for special
services such as technical rescue and hazmat. The training facility is also outdated and should be
replaced, preferably with a modern, regional facility. To its credit the fire department is doing the
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best it can with the resources available. For example, fire personnel recently constructed have
constructed a roof prop to train personnel in proper ventilation techniques.
PAFD training is coordinated by a captain. Half of the captain‘s salary is paid by the
city‘s utility department for the reason that the fire department is responsible to provide
confined-space training to utility employees. In addition to this responsibility the training captain
is also responsible for EMS training, wildland fire training, as well as other tasks such as self-
contained breathing apparatus (SCBA) fit testing, which is required. Much of the training
coordinated by the captain is mandated by federal and state regulations such as CALOSHA.
Key findings related to training are:
A major concern of the union is the training. It believes that training is not of
sufficient quantity or quality.
Hands-on training is insufficient to maintain skills. Hands-on training called ‗Friday
fires‘ were previously conducted; however the training center is no longer able to
support such training because it is outdated. Weekday training is also a problem
because demand is highest during this period.
FFs may not be getting enough exposure to structural firefighting, in particular the
use of SCBA during hazardous interior operations, search and rescue, etc. Clearly,
they are not getting actual experience because there are few structure fires. To
compensate for experience, the PAFD must increase its commitment to live-fire
training, possibly by hiring instructors on overtime.
Sunnyvale is the closest department with a live fire-training simulator and Palo Alto
uses this facility infrequently. There are few buildings in Palo Alto available for a
live-fire exercise.
The PAFD does not use its 24-hour schedule to maximum efficiency, which could
improve training availability. For example training is typically not conducted during
evenings or on weekends. The Department must change its culture such that training
(and other activities are conducted during evening and weekends, not just weekdays.
The truck company at Station 6 is used as the ‗training company‘ and its crew
supports the training officer. This is an excellent concept and one that has been used
successfully in other departments (Cincinnati). Though excellent, this approach does
not always achieve the best results because the shifts change each day, thus there is a
loss in continuity.
The recruit training program that is coordinated with other departments in the county
is an excellent approach. New recruit complete one week of introduction at the PAFD
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then join recruits from other fire departments for 12 weeks of job-related training.
They then return to PAFD for additional training specially targeted to PAFD
operations.
The training calendar currently used is insufficient as a planning tool. There is a need
to understand the level of effort needed for training. The training division does not
know the total hours of instruction necessary for the various training needs. Without
such an analysis it cannot prepare a training plan, or prepare an annual budget to
include part-time instructors on overtime.
Recommendations to improve the fire department‘s training effort are:
Recommendation 43: Add a battalion chief to plan and coordinate the training program and maintain the current training captain as the day-to-day trainer. The battalion chief will also
provide management oversight for EMS with the EMS Coordinator reporting to the battalion chief.
Recommendation 44: Have the battalion chief and training captain conduct a complete audit
of all training needs and prepare a multi-year plan for training. Use the plan to develop the
annual training plan which should include training priorities, assignments, and overtime for
adjunct instructors when needed.
Recommendation 45: Implement a formal program for career and professional development, including specific requirements for promotion to all officer ranks. Include educational
requirements and attendance to National Fire Academy, such as the Executive Fire Officer
Program (EFOP) as part of the requirements.
Recommendation 46: Work with other fire departments (and the county) to regionalize the city’s fire and EMS training program. Establish a planning group consisting of city and regional officials to plan for the replacement of the city’s outdated fire training facility. The
city should not build its own facility, but partner with multiple agencies to provide an adequate
facility.
Recommendation 47: Improve productivity of the training program by conducting more training during evenings and weekends. As part of this effort, establish specific training goals for each shift battalion chief and captain.
9-1-1 Dispatch
A review of the city‘s 9-1-1 dispatch center was not part of this study. Because 9-1-1
dispatch is so important to the efficacy of the fire and EMS response system, we do include a
brief discussion of it.
Palo Alto has combined police-fire dispatching system managed by the police
department. Before being under the police department, 9-1-1 dispatching was a joint operation
with the city of Mountain View. In the 1980‘s the city removed itself from the partnership in part
because it wanted more local control. This is an unusual move inasmuch as most communities
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were beginning to regionalize emergency dispatch systems even in the 1980s as CAD systems
became more prevalent. The future for the city should be a return to a regional dispatch center, if
only for departments in North County.
The combined fire and police dispatch center handles roughly 150,000 incoming calls
each year. The center has four positions: two police dispatchers; two fire dispatchers; one call-
taker. Fire units operate on UHF radio bands while police operate on VHF. The frequencies are
linked to provide interface between police and fire units at the scene.
Plans in the county are for a 700MHz system and the city is looking at the possibility of
going to a county-wide system, which it should. Discussions are also taking place with the city of
Los Altos and Mountain View on technical upgrades and virtual consolidation such that Palo
Alto and these communities could operate under a single system for fire dispatching.
There is an opportunity to improve service delivery and efficiency if Palo Alto and other
jurisdictions combined to not only share stations but also to implement a boundary-less response
model such that resources from any jurisdiction would respond regardless of the political
boundary. This approach would more than likely result in more service-sharing opportunities and
improve efficiency because cities could share resources more than they do now under the
existing automatic-aid agreements.
Recommendation 48: Establish initial efforts with Los Altos, Mountain View, and Sunnyvale
to implement a boundary-less response network.
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VII. QUANTITATIVE ANALYSIS OF FIRE AND EMS OPERATIONS
INTRODUCTION
Palo Alto‘s fire department has 7 engines (2 reserve), 1 type III brush truck which was
only staffed in the summer, 1 type III truck cross-staffed by Truck 6, 1 ladder truck, 3 ALS
ambulances (1 reserve), 1 rescue (1 reserve). These units are deployed in 8 stations. A total of 30
full time firefighters are staffed in 8 stations, and 4 administrative staff is staffed in station 6.
Two overtime paid firefighter paramedics are staffed on ALS ambulance M1 in station 1 from
0800 to 2000 hours. Hourly EMTs are staffed in BLS ambulance BLS1 in station 6 for 10 hours
a day, Monday through Friday. Between July and October, 3 additional fire fighters are staffed
for the brush truck in station 8 between 0800 and 2000 hours.
Our data analysis is divided into three sections. The first section focuses on the call types
and dispatches. The second section explores time spent and workload of individual units. The
third section presents response time analysis.
The data in this report cover all calls for service between July 1, 2009 and June 30, 2010.
During this period, Palo Alto‘s fire department received 6,752 non-canceled calls. Multiple units
are often sent to calls. A total of 15,625 Palo Alto units were dispatched during this period. The
total workload for the year for all Palo Alto units combined was 8,141 hours. Lastly, the average
total response time was 6.5 minutes for both EMS and fire category calls.
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A. AGGREGATE CALL TOTALS AND DISPATCHES
The data reported here include all calls for service between July 1, 2009 and June 30,
2010. In a year, Palo Alto‘s fire department received 6,752 non-canceled calls. Of these, 187
were structure fire or outside fire calls, and 4,526 (60 percent) were emergency medical service
(EMS) calls. We categorized the calls based on the incident description and include the
correspondence table in Appendix I.
Table 1. Call Types
Call Type Number of Calls Calls per
Day Call Percentage
BLS Transport 391 1.1 5.2
MVA 253 0.7 3.3
EMS Other 3,882 10.6 51.3
EMS Total 4,526 12.4 59.9
Structure Fire 49 0.1 0.6
Outside Fire 138 0.4 1.8
Hazard 272 0.7 3.6
Alarm Subtotal 1,104 3.0 14.6
False Alarm 169 0.5 2.2
Malfunction Alarm 382 1.0 5.1
Unintentional Alarm 458 1.3 6.1
Other Alarm 95 0.3 1.3
Public Service 389 1.1 5.1
Good Intent 274 0.7 3.6
Fire Total 2,226 6.1 29.4
Canceled 808 2.2 10.7
Total 7,560 20.7 100
Note: In the table Alarm Subtotal is further broken down into four categories: False, Malfunction,
Unintentional and Other.
Observations:
A total of 2.2 percent of calls were canceled.
On average, the department received 18.5 non-canceled calls per day.
EMS calls for the year totaled 4,526 (59.9 percent of all calls), or about 12.4 per day.
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Fire category calls for the year totaled 2,226 (29.4 percent of all calls), or about 6.1 per
day.
Calls for structure and outside fire combined averaged 1 call per 2 days, or 2.4 percent of
total calls.
Alarm calls totaled 1,104 (14.6 percent of all calls), or about 3 per day. False alarm calls
totaled 169, which is 15.3 percent of alarm calls. Malfunction alarm calls totaled 382, or
34.6 percent of alarm calls. Unintentional alarm calls totaled 458, or 41.5 percent of
alarm calls. Other alarm calls totaled 95 for the year, or 8.6 percent of alarm calls.
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Table 2. Mutual Aid Calls
Call Type
Number of Calls
Automatic aid
given
Automatic aid
received
Mutual aid
given
Mutual aid
received Total
BLS Transport 16 16
MVA 5 61 1 67
EMS Other 12 269 281
EMS Total 17 346 1 364
Structure Fire 7 5 7 19
Outside Fire 3 15 2 20
Hazard 2 12 14
Alarm 7 8 15
Public Service 10 1 11
Good Intent 16 16
Fire Total 19 66 3 7 95
Canceled 78 58 1 137
Total 114 470 4 8 596
Note: Auto Aid is a predetermined response into another jurisdiction when the responding units from one
agency are physically closer to the incident location than the closest unit from the agency where the incident is
actually located. Mutual aid is a request for specific pieces or types of equipment when the requesting agency does
not have the necessary resources to respond to an incident.
Observations:
A total of 470 calls have received automatic aid, among which 58 (12.3 percent) calls
were canceled.
Palo Alto has requested mutual aid assistance for 7 structure fire calls and 1 motor
vehicle accident calls.
Palo Alto fire department has provided automatic aid for 114 calls, among which 78 (68.4
percent) calls were canceled.
Palo Alto fire department has provided mutual aid assistance for 2 outside fire calls and 1
public service call.
TriData Division, 121 ICMA
System Planning Corporation Center for Public Safety Management
Observations:
Of the 49 structure fire calls, 9 lasted more than two hours, 22 lasted between one and
two hours, and 18 lasted less than one hour.
Of the 138 outside fire calls during the year, 3 lasted more than two hours, 89 lasted
between one and two hours, and 46 lasted less than one hour.
A total of 3,214 (71.0 percent) of EMS calls lasted less than one hour; 1,102 EMS (24.3
percent) calls lasted between one and two hours and 210 EMS (4.6 percent) calls lasted
more than two hours.
In all, the department handled 3,139 calls that lasted more than one hour, which are 8.6
long calls per day.
TriData Division, 122 ICMA
System Planning Corporation Center for Public Safety Management
Figure 2. EMS and Fire Calls by Type
Observations:
A total of 187 structure fire and outside fire calls accounted for 8.4 percent of fire
category total.
Alarm calls were 49.6 percent of fire category calls.
Public service calls were 17.5 percent of fire category total.
Hazardous condition calls were 12.2 percent of fire category total.
Good intent calls were 12.3 percent of fire category total.
Basic life support and transport calls accounted for 8.6 percent of EMS category total.
Motor vehicle accident calls were 5.6 percent of EMS category total.
Other EMS calls were 85.8 percent of EMS category total.
TriData Division, 123 ICMA
System Planning Corporation Center for Public Safety Management
Figure 3. Calls by Month
Observations:
Average calls per day varied by month and ranged from a low of 16.8 calls per day in
November 2009 to a high of 20.3 calls per day in February 2010, or 21 percent more than
the lowest month.
Average EMS calls per day varied from a low of 11.2 calls per day in November 2009 to
a high in 14 calls per day in February 2010.
Average fire category calls per day varied from a low of 4.8 to a high of 7.0 calls per day
(lowest in March 2010, highest in January 2010).
TriData Division, 124 ICMA
System Planning Corporation Center for Public Safety Management
Figure 4. Calls by Hour of Day
Table 3. Calls by Hour of Day
Two-Hour Interval
Hourly Call Rate
EMS Fire Total
0-1 0.37 0.16 0.52
2-3 0.24 0.13 0.37
4-5 0.18 0.11 0.29
6-7 0.34 0.18 0.52
8-9 0.67 0.35 1.02
10-11 0.79 0.34 1.13
12-13 0.82 0.39 1.21
14-15 0.73 0.32 1.04
16-17 0.62 0.31 0.93
18-19 0.58 0.29 0.87
20-21 0.48 0.24 0.71
22-23 0.37 0.23 0.60
Calls per Day 12.37 6.08 18.45
Note: Calls per day will equal to the sum of the column multiplied twice since each row represents two
hours.
Observations:
In 2009, hourly call rates were the highest between 8 a.m. and 4 p.m., averaging at least 1
call per hour.
The call rate was lowest between midnight and 8 a.m., averaging at most 0.5 calls per
hour.
TriData Division, 125 ICMA
System Planning Corporation Center for Public Safety Management
Figure 5. Number of Units Dispatched to Calls
Table 4. Number of Units Dispatched to Calls
Call Type
Unit
One Two Three Four Five or
more Total
BLS Transport 210 13 136 29 3 391
MVA 8 41 94 63 47 253
EMS Other 389 2,814 578 79 22 3,882
EMS Total 607 2,868 808 171 72 4,526
Structure Fire 12 5 2 3 27 49
Outside Fire 87 18 1 1 31 138
Hazard 112 63 6 15 76 272
Alarm 896 71 6 25 106 1,104
Public Service 305 59 22
3 389
Good Intent 77 137 36 10 14 274
Fire Total 1,489 353 73 54 257 2,226
Grand Total 2,096 3,221 881 225 329 6,752
Percentage 31.0 47.7 13.0 3.3 4.9 100
TriData Division, 126 ICMA
System Planning Corporation Center for Public Safety Management
Observations:
Overall, 5 or more units were dispatched to 4.9 percent of calls. For fire category calls, 5
or more units were dispatched to 11.5 percent of calls.
On average, 2.2 units were dispatched per EMS call.
For EMS calls, 1 unit was dispatched 13.4 percent of the time, 2 units were dispatched
63.4 percent of the time, and 3 or more units were dispatched 23.2 percent of the time.
On average, 1.8 units were dispatched per fire category call.
For fire category calls, 1 unit was dispatched 66.9 percent of the time, 2 units were
dispatched 15.9 percent of the time, and 3 or more units were dispatched 17.3 percent of
the time.
TriData Division, 127 ICMA
System Planning Corporation Center for Public Safety Management
Table 5. Annual Total Deployed Time by Call Type
Call Type Busy Minutes per Call Annual Busy Hours Percent of Hours Number of Runs Runs per Day
BLS Transport 55.1 714 8.8 780 2.1
MVA 29.0 425 5.2 885 2.4
EMS Other 40.0 5,466 67.1 8,255 22.6
EMS Total 40.2 6,606 81.1 9,920 27.1
Structure Fire 59.1 203 2.5 206 0.6
Outside Fire 26.3 134 1.6 305 0.8
Hazard 21.8 263 3.2 722 2.0
Alarm 15.6 445 5.5 1,714 4.7
Public Service 23.4 198 2.4 507 1.4
Good Intent 14.6 140 1.7 575 1.6
Fire Total 20.6 1,382 17.0 4,029 11.0
Canceled 5.5 153 1.9 1,676 4.6
Total 31.4 8,141 100 15,625 42.7
Observations:
Total deployed time for the year, or total busy hours, was 8,141 hours. This is the total
deployment time of all the units that were deployed on any type of call.
There were a total of 15,625 runs, an average of 43 runs per day.
Fire category calls accounted for 17 percent of the total workload.
There were a total of 511 runs for structure and outside fire calls with a total workload of
337 hours, which accounted for 4.1 percent of the total workload. The average busy time
for structure fire calls was nearly one hour per call and for outside fire calls it was 26
minutes.
Alarm calls accounted for 5.5 percent of the total workload. The average busy time for
alarm calls was 15.6 minutes per call.
EMS calls accounted for 81.1 percent of the total workload. The average busy time for
EMS calls was 40.2 minutes per call.
TriData Division, 128 ICMA
System Planning Corporation Center for Public Safety Management
B. WORKLOAD BY INDIVIDUAL UNIT—CALLS AND TOTAL TIME SPENT
Here we look at the actual time spent by each unit on every call. We report two types of
statistics: workloads and runs. After the introductory table, we present run data and workload
data for every unit, as well as the daily average for engine, truck and ambulance units.
Table 6. Call Workload by Unit of Stations
Station Unit Type Unit ID
Busy Minutes per Run
Number of Runs
Runs per Day
Busy Minutes per Day
Annual Busy Hours
1
ALS Ambulance
M
1 51.7 1,493
4
.1 211.3 1,286
ALS Ambulance M3 38.6 310 0.8 32.8 199
Type I Engine
E
1 23.9 1,805
4
.9 118.3 720
2
ALS Ambulance M2 50.5 2,850 7.8 394 2,397
Rescue Unit
R
2 20.3 856
2
.3 47.7 290
Type I Engine E2 22.4 895 2.4 54.9 334
3 Type I Engine
E
3 23.9 1,110
3
.0 72.5 441
4 Type I Engine E4 26.8 1,016 2.8 74.6 454
5 Type I Engine
E
5 26.9 816
2
.2 60.2 366
6
BLS Ambulance BLS1 58.3 756 2.9 168.7 734
Ladder Truck
T
6 19.7 519
1
.4 28 170
Type I Engine E6 23.6 1,366 3.7 88.4 538
7 Type I Engine
E
7 19.6 127
0
.3 6.8 41
8 Type III Brush Engine E8B 34.4 30 0.2 8.4 17
Note: Reserved engine E11 was dispatched 14 times and counted as E4. Reserved engines E9 and E10
combined were dispatched 6 times and counted as E6. Patrol pickup truck P6 was dispatched 7 times and
counted as T6. Patrol pickup truck P8 was dispatched 3 times and counted as E8B.
TriData Division, 129 ICMA
System Planning Corporation Center for Public Safety Management
Engine E6 had two long dispatches to two forest, woods or wildland fire calls. Those two dispatches lasted
24.5 and 110 hours respectively. The workloads for the two dispatches are calculated using 10 hours on
scene time.
Station 8 is only staffed between July and October, so the daily average is calculated using total days of
123.
BLS1 is only staffed in weekdays, so the daily average is calculated using total days of 261.
Observations:
Engine Company E1 made 1,805 runs in a year, averaging 4.9 runs and nearly 2 hours of
busy time per day.
Engine Company E2 made 895 runs in a year, averaging 2.4 runs and 55 minutes of busy
time per day.
Engine Company E3 made 1,110 runs during the year, averaging 3 runs and one hour and
13 minutes of busy time per day.
Engine Company E4 made 1,016 runs during the year, averaging 2.8 runs and one hour
and 15 minutes of busy time per day.
Engine Company E5 made 816 runs during the year, averaging 2.2 runs and one hour of
busy time per day.
Engine Company E6 made 1,366 runs during the year, averaging 3.7 runs and one hour
and 29 minutes of busy time per day.
Engine Company E7 made 127 runs and were busy 41 hours in a year.
Brush engine E8B was only staffed in July, August, September 2009 and June 2010.
Engine E8B made 30 runs and were busy 17 hours.
Ladder truck T6 made 519 runs during the year, averaging 1.4 runs and 28 minutes of
busy time per day.
ALS ambulance M1 made 1,493 runs during the year, averaging 4.1 runs and 3 hours 31
minutes of busy time per day.
ALS ambulance M3 made 310 runs during the year, averaging 0.8 runs and 33 minutes of
busy time per day.
ALS ambulance M2 made 2,850 runs during the year, averaging 7.8 runs and 6 hours 34
minutes of busy time per day.
Rescue unit R2 made 856 runs during the year, averaging 2.3 runs and 48 minutes of
busy time per day.
TriData Division, 130 ICMA
System Planning Corporation Center for Public Safety Management
BLS ambulance BLS1 is staffed 10 hours a day, Monday through Friday. It is staffed by
hourly EMTs who are NOT firefighters. It made 756 runs during the year, averaging 2.9
runs and 2 hours and 49 minutes of busy time per day.
TriData Division, 131 ICMA
System Planning Corporation Center for Public Safety Management
Figure 6. Busy Minutes by Hour of Day
Table 7. Busy Minutes by Hour of Day
Two-Hour Interval EMS Fire Total
0-1 28.2 4.9 33.1
2-3 19.2 4.3 23.5
4-5 16.3 5.7 22.0
6-7 31.9 6.1 38.0
8-9 64.2 14.3 78.5
10-11 74.2 11.0 85.3
12-13 75.8 13.3 89.1
14-15 67.1 14.6 81.6
16-17 54.3 10.6 64.9
18-19 45.2 13.5 58.6
20-21 37.6 7.1 44.8
22-23 28.9 8.1 37.0
Daily Total 1085.9 227.1 1313.0
Note: Daily total will equal to the sum of the column multiplied twice since each row represents two hours.
Observations:
The total busy minutes are the sum of both EMS and fire call workloads for all units.
Total busy minutes by hour varied significantly mainly due to the fluctuations of EMS
workload.
TriData Division, 132 ICMA
System Planning Corporation Center for Public Safety Management
Hourly busy minutes were the highest between 8 a.m. and 6 p.m., averaging more than 65
minutes per hour.
Hourly busy minutes were the lowest between 10 p.m. and 8 a.m., averaging fewer than
40 minutes per hour.
TriData Division, 133 ICMA
System Planning Corporation Center for Public Safety Management
Table 8. Engine/Ladder Truck Units: Total Annual Number and Daily Average Number of
Runs by Call
Unit EMS Structure
Fire
Outside
Fire Hazard Alarm Public
Service
Good
Intent
Total
Runs
Runs per Day
E1 1,311 20 34 59 213 95 73 1,805 4.9
E2 513 19 26 70 188 36 43 895 2.4
E3
6
78 21 28 76 136 110 61 1,110 3.0
E4 670 13 33 60 121 84 35 1,016 2.8
E5
5
22 11 24 47 129 36 47 816 2.2
E6 741 21 56 61 415 30 42 1,366 3.7
E7
2
0 2 5 11 85 1 3 127 0.3
T6 173 32 31 90 134 31 28 519 1.4
E8B
1
6 6 5 1 2 30 0.2
Note: Engine E8B is only staffed between July and October, so the daily average is calculated using total
days of 123.
Observations:
Engines E1, E3, E4 and E6 were each deployed more than 1,000 times in a year.
Engine E1 responded to the most EMS calls, averaging 3.6 EMS calls per day.
TriData Division, 134 ICMA
System Planning Corporation Center for Public Safety Management
Table 9. Engine/Ladder Truck Units: Daily Average Deployed Minutes per Day by Call
Type
Unit EMS Structure Fire Outside Fire Hazard Alarm Public Service Good Intent Total Minutes Fire Percentage
E1 89.7 4.7 1.8 3.5 9.2 6.3 3.1 118.3 24.2
E2 34.1 3.3 1.6 4.2 7.9 2.2 1.7 54.9 37.9
E3 48.0 4.3 1.5 4.7 5.3 6.3 2.5 72.5 33.8
E4 50.3 2.6 4.4 4.4 6.0 5.7 1.2 74.6 32.6
E5 42.1 0.5 1.7 3.4 7.4 2.4 2.8 60.2 30.1
E6 49.3 3.6 6.5 3.7 21.2 2.1 1.8 88.4 44.2
E7 1.1 0.1 0.2 0.9 4.4 0.0 0.1 6.8 83.8
T6 10.0 5.4 1.3 4.6 3.8 2.1 0.9 28 64.3
E8B 5.1
2.5
0.5 0.1 0.2 9.4 38.6
Note: Fire percentage is the sum of average deployed minutes per day of all non-EMS calls divided by the
total deployed minutes per day. Engine E8B is only staffed between July and October, so the daily average is
calculated using total days of 123.
Observations:
On average, engine E1 was busy for nearly 2 hours per day, and fire category calls
accounted for 24.2 percent of the unit‘s total workload.
Engine E2 was busy for 54.9 minutes per day, and fire category calls accounted for 37.9
percent of the unit‘s total workload.
Engine E3 was busy for 72.5 minutes per day, and fire category calls accounted for 33.8
percent of the unit‘s total workload.
Engine E4 was busy for 74.6 minutes per day, and fire category calls accounted for 32.6
percent of the unit‘s total workload.
Engine E5 was busy for 1 hour per day, and fire category calls accounted for 30.1 percent
of the unit‘s total workload.
Engine E6 was busy for 1 hour and 29 minutes per day, and fire category calls accounted
for 44.2 percent of the unit‘s total workload.
TriData Division, 135 ICMA
System Planning Corporation Center for Public Safety Management
Table 10. Ambulance Units: Total Annual and Daily Average Number of Runs by
Call Type
Unit BLS Transport MVA EMS Other Structure and Outside Fire Fire Other Total Runs per Day
M1 86 68 1,183 21 135 1,493 4.1
M2 94 169 2,265 37 285 2,850 7.8
M3 1 11 269 1 28 310 0.8
R2 26 201 172 70 387 856 2.3
BLS1 392 29 310 0.0 25 756 2.9
Note: BLS1 is only staffed in weekdays, so the daily average is calculated using total days of 261.
Observations:
ALS ambulance units M1 and M2 were deployed 1,493 and 2,850 runs, respectively, in a
year, averaging 4.1 and 7.8 runs per day.
On average, ALS ambulance unit M3 was deployed less than 1 run per day.
On average, rescue unit R2 wad deployed 2.3 runs per day.
TriData Division, 136 ICMA
System Planning Corporation Center for Public Safety Management
Table 11. Ambulance Units: Daily Average Deployed Minutes per Day by Call Type
Unit BLS
Transport MVA EMS Other Structure and
Outside Fire
Fire
Other
Total
Minutes
EMS
Percentage
M1 5.1 7.4 192.1 2.3 4.3 211 96.9
M2 6.2 2
1.7 353.5 2.1 10.5 394 96.8
M3 0.0 1.3 30.5 0.0 1.0 33 97.0
R2 1.6 1
0.1 10.5 6.5 19 48 46.5
BLS1 127.0 2.2 37.9 0.0 1.7 169 99.0
Note: EMS percentage is the sum of average deployed minutes per day of all EMS calls divided by the total
deployed minutes per day. BLS1 is only staffed in weekdays, so the daily average is calculated using total days of
261.
Observations:
Except rescue unit R2, EMS calls accounted for more than 96.8 percent of total workload
for all ALS and BLS ambulance units.
On average, ALS ambulance unit M1 was busy for 3 hours and 31 minutes per day.
On average, ALS ambulance unit M2 was busy for 5 hours and 44 minutes per day.
On average, BLS ambulance unit BLS1 was busy for 2 hours and 1 minute per day.
On average, rescue unit R2 was busy for 48 minute per day, and EMS calls accounted for
46.5 percent of the total.
TriData Division, 137 ICMA
System Planning Corporation Center for Public Safety Management
C. DISPATCH TIME AND RESPONSE TIME
In this section we present dispatch and response time statistics for different call types and
fire units. For most types of calls, we are mainly interested in the dispatch time and response
time of the first arriving units. However, for structure and outside fire calls, we analyze the
response time of the first and the second arriving fire vehicles (no ambulance and rescue units).
We use different terms to describe the components of response time. Dispatch processing
time is the difference between the unit dispatch time and the call receipt time. Turnout time is
the difference between the unit time en route and the unit dispatch time, while travel time is the
difference between the unit on-scene arrival time and the unit time en route. Response time
includes dispatch processing time, turnout time, and travel time.
Figure 7. Average Dispatch, Turnout, Travel, and Response Time of First Arriving Units
by Call Type
TriData Division, 138 ICMA
System Planning Corporation Center for Public Safety Management
Table 12. Average Dispatch, Turnout, Travel, and Response Time of First Arriving Units
by Call Type
Call Type Dispatch Time Turnout Time Travel Time Response Time
90th Percentile Response Time
Number of Calls
BLS Transport 6.5 2.0 9.0 16.7 43.7 356
MVA 0.5 1.9 4.0 6.3 9.9 235
EMS Other 0.4 1.8 3.5 5.6 7.7 3,829
EMS Total 0.9 1.8 4.0 6.5 8.3 4,420
Structure Fire 0.5 2.5 3.4 6.2 7.9 42
Outside Fire 0.5 2.1 4.3 6.7 8.9 134
Hazard 0.6 2.0 4.2 6.8 9.8 265
Alarm 0.4 2.1 3.9 6.2 8.9 1,013
Public Service 0.5 1.9 5.1 7.4 11.4 382
Good Intent 0.5 1.8 3.6 5.8 8.3 265
Fire Total 0.5 2.0 4.1 6.5 9.4 2,101
Total 0.8 1.9 4.1 6.5 8.9 6,521
Note: The average of dispatch time, turnout time, travel time and response time are calculated using non-
null values of each field and they may have different number of calls. Therefore, the average response time may not
be equal to the sum of average dispatch time, turnout time and travel time.
Observations:
The average dispatch time for all calls was 0.8 minutes. However, the average dispatch
time for BLS transport calls was 6.5 minutes.
The average turnout time was 1.9 minute.
The average travel time was 4.1 minutes. However, the average travel time for BLS
transport calls was 9 minutes.
The average response time for all EMS calls was 6.5 minutes and the 90th percentile
response time for all EMS calls was 8.3 minutes.
The average response time for fire category calls was 6.5 minutes and the 90th percentile
response time for fire category calls was 9.4 minutes.
The average response time for structure fire calls was 7.9 minutes.
The average response time for outside fire calls was 8.9 minutes.
TriData Division, 139 ICMA
System Planning Corporation Center for Public Safety Management
Figure 8. Number of Total Calls for the First Arriving Unit
Table 13. Number of Total Calls for the First Arriving Units
Unit EMS Structure and Outside Fire Fire Other Total Percentage Cumulative Percentage
E1 1001 35 339 1,375 21.1 21.1
E6 545 44 435 1,024 15.7 36.8
E4 582 30 248 860 13.2 49.9
E3 492 20 291 803 12.3 62.2
E5 438 15 211 664 10.2 72.4
E2 377 17 207 601 9.2 81.6
M1 288 3 8 299 4.6 86.2
M2 269 15 284 4.4 90.5
BLS1 186 2 188 2.9 93.4
R2 91 2 37 130 2.0 95.4
T6 84 4 28 116 1.8 97.2
E7 13 6 95 114 1.7 98.9
M3 46 5 51 0.8 99.7
E8B 12 2 4 18 0.3 100
TriData Division, 140 ICMA
System Planning Corporation Center for Public Safety Management
Observations:
Engine E1 arrived first on scene most often, followed by Engine E6 and Engine E4.
The top three units, E1, E6 and E4, were the first units on scene half of the time for all
calls.
For structure and outside fire calls, Engine E6 was the first unit on scene for 44 of 187
calls.
TriData Division, 142 ICMA
System Planning Corporation Center for Public Safety Management
Table 14. Average Dispatch, Turnout, Travel, and Response Time of First Arriving Unit by
Hour of Day
Hour Dispatch Time Turnout Time Travel Time Response Time Number of Calls
0 0.3 2.3 3.8 6.3 187
1 0.3 2.4 4.1 6.7 191
2 0.3 2.5 3.8 6.5 158
3 0.1 2.7 4.0 6.8 110
4 0.2 2.7 3.8 6.6 105
5 0.2 2.6 3.9 6.7 102
6 0.9 2.5 3.9 7.3 130
7 1.2 2.3 4.7 8.1 236
8 1.3 2.0 4.6 7.7 351
9 1.0 1.7 3.9 6.4 360
10 1.2 1.6 4.9 7.5 391
11 1.5 1.5 4.5 7.1 399
12 1.0 1.5 5.1 7.4 426
13 1.1 1.7 4.0 6.5 423
14 0.9 1.6 3.7 6.0 395
15 0.9 1.6 3.9 6.2 349
16 0.7 1.8 3.5 5.8 342
17 0.7 1.8 3.8 6.1 309
18 0.4 1.7 3.5 5.6 325
19 0.4 1.7 3.5 5.5 289
20 0.4 1.8 3.9 6.0 256
21 0.3 1.8 3.6 5.7 258
22 0.3 1.9 3.4 5.6 215
23 0.2 2.3 4.1 6.5 214
Total 0.8 1.9 4.1 6.5 6,521
Observations:
Average dispatch time was between 0.1 and 1.5 minutes.
Average turnout time was between 1.5 and 2.7 minutes. Between 9 a.m. and 11 p.m.,
average turnout time was less than 2 minutes.
Average travel time was between 3.4 and 5.1 minutes.
Average response time was between 5.5 and 8.1 minutes.
TriData Division, 143 ICMA
System Planning Corporation Center for Public Safety Management
Figure 10. Cumulative Distribution Function (CDF) of Response Time of First Arriving
Unit for MVA and EMS Other Calls
Reading the CDF Chart
The vertical axis is the probability or percentage of calls. The horizontal axis is response
time. For example, with regard to MVA and EMS other calls, the 0.9 probability line
intersects the graph at the time mark at about 7.8 minutes. This means that units
responded to 90 percent of these calls in fewer than 7.8 minutes.
TriData Division, 144 ICMA
System Planning Corporation Center for Public Safety Management
Table 15. Cumulative Distribution Function (CDF) of Response Time of First Arriving
Unit for MVA and EMS Other Calls
Response Time Frequency Cumulative Percentage
1 min. 44 1.1
2 min. 61 2.6
3 min. 128 5.7
4 min. 442 16.6
5 min. 942 39.8
6 min. 1,084 66.5
7 min. 648 82.4
8 min. 373 91.6
9 min. 133 94.9
10 min. 70 96.6
11 min. 42 97.6
12 min. 28 98.3
13 min. 13 98.6
14 min. 8 98.8
15 min. 5 98.9
>= 15 min 43 100.0
Note: BLS transport calls have significantly longer response time and therefore not included.
Observations:
The average response time for MVA and EMS other calls was 5.7 minutes.
For 66.5 percent of EMS calls, the response time was less than 6 minutes.
For 90 percent of EMS calls, the response time was less than 7.8 minutes.
TriData Division, 145 ICMA
System Planning Corporation Center for Public Safety Management
Response Time Analysis for Structure and Outside Fire Calls
The following tables and charts report our response time analysis of first arriving units
for structure and outside fire calls. The analysis focuses on the arrival of firefighting equipment
including engine, and truck units. The response time analysis does NOT include dispatched
ambulance units for structure and outside fire calls. They typically arrive along with the Engine
Company based in their station.
Table 16. Average Response Time for Structure Fire and Outside Fire Calls by First
Arriving Fire Unit
First Arriving Unit
Outside Fire Structure Fire Total
Response Time Number of Calls Response Time Number of Calls Response Time Number of Calls
E1 5.4 26 6.4 12 5.7 38
E2 7.2 10 6.0 7 6.7 17
E3 6.8 13 6.3 6 6.6 19
E4 5.2 25 6.8 4 5.5 29
E5 7.3 12 5.8 3 7.0 15
E6 8.5 37 6.3 8 8.1 45
E7 6.8 5 5.0 1 6.5 6
E8B 12.2 2 12.2 2
T6 3.8 3 3.1 2 3.5 5
Observations:
For outside fire calls, Engine E1 and E4 were the first unit on scene most often and had
the shortest average response time of 5.4 and 5.2 minutes respectively when arriving first
on scene.
For structure fire calls, Engine E1 was the first unit on scene most often.
Except two runs of E8B, first arriving units arrived on scene on average in fewer than 10
minutes.
TriData Division, 146 ICMA
System Planning Corporation Center for Public Safety Management
Table 17. Average Response Time for Structure Fire and Outside Fire Calls by Second
Arriving Fire Unit
Second
Arriving Unit
Outside Fire Structure Fire Total
Response Time Number of Calls Response Time Number of Calls Response Time Number of Calls
E1 5.4 1 7.4 3 6.9 4
E2 14.5 4 9 1 13.4 5
E3 7.2 3 7.8 8 7.6 11
E4 9.7 4 10.9 3 10.2 7
E5 8.4 3 5.9 2 7.4 5
E6 5.3 2 7.5 5 6.8 7
T6 7 4 12.7 8 10.8 12
Observations:
Ladder truck T6 and Engine E3 were the second unit on scene most often.
When E6 were the second unit on scene, it had the shortest response time of 6.8 minutes.
All second arriving units arrived on scene on average in fewer than 14 minutes.
TriData Division, 147 ICMA
System Planning Corporation Center for Public Safety Management
Figure 11. Cumulative Distribution Function (CDF) of Response Time of First, Second and
Third Arriving Fire Units for Structure and Outside Fire Calls
100
90
80
• 70 g
60 ~ ~ , 50
lst unit iverage: 6.6 minutes /' ,/ 2nd unit average: 9.1 minutes
3rd unit average: 10.2 minutes / ~ ~
/ / /
/ / / • ~ 40 .,
E 30 , u
20
10
0
/ / /
/ / / 1st unit 90th percentile: 8.7 minutes / / / 2nd unit 90th percentile: 16.7 minutes
/ / ./ 3rd unit 90th percentile: 14.2minutes
./ /~
o I 4 6 7 8 9 10 ,~-,C'-'CUc,c,;C,~---:,-"CdCUC,C,;C'~---:3-nCICuC"C"~1 11 12 13 14 15
Minutes
TriData Division, 148 ICMA
System Planning Corporation Center for Public Safety Management
Table 18. Cumulative Distribution Function (CDF) of Response Time of First and Second
Arriving Fire Units for Structure and Outside Fire Calls
Response Time
Structure Fire
First Unit Second Unit Third Unit
Frequency Cumulative Percent Frequency Cumulative Percent Frequency Cumulative Percent
1 min. 3 1.7 0.0 0.0
2 min. 3 3.4 0.0 0.0
3 min. 3 5.1 0.0 0.0
4 min. 19 15.9 0.0 0.0
5 min. 39 38.1 1 2.0 0.0
6 min. 34 57.4 5 11.8 1 3.1
7 min. 28 73.3 12 35.3 3 12.5
8 min. 21 85.2 10 54.9 4 25.0
9 min. 12 92.0 9 72.5 6 43.8
10 min. 3 93.8 2 76.5 7 65.6
11 min. 2 94.9 4 84.3 1 68.8
12 min. 1 95.5 1 86.3 1 71.9
13 min. 1 96.0 1 88.2 2 78.1
14 min. 2 97.2 0 88.2 2 84.4
15 min. 1 97.7 0 88.2 2 90.6
16 min. 0 97.7 0 88.2 1 93.8
17 min. 2 98.9 2 92.2 1 96.9
18 min. 0 98.9 1 94.1 0 96.9
19 min. 1 99.4 0 94.1 0 96.9
20 min. 0 99.4 3 100.0 1 100.0
20 to 25 min. 1 100.0 0 100.0 0 100.0
Observations:
The average response time of the first arriving fire unit for structure and outside fire calls
was 6.6 minutes.
90 percent of the time, the first fire unit arrived on scene in fewer than 8.7 minutes.
On average, the response time of the second arriving unit was 9.1 minutes, which was 2.5
minutes longer than that of the first arriving unit.
90 percent of the time, the second fire unit arrived on scene in fewer than 16.7 minutes.
TriData Division, 149 ICMA
System Planning Corporation Center for Public Safety Management
D. ANALYSIS OF BUSIEST HOURS IN A YEAR
There is significant variability in the number of calls from hour to hour. One special
concern relates to the fire resources available for the highest workload hours. We tabulated the
data for each of 8760 hours in the year. Approximately once every 11 days the fire department
will respond to 5 or more calls in an hour. This is 0.4% of the total number of hours. Once
during the entire year, there were more than 10 calls in a single hour. In studying these call
totals, it is important to remember that an EMS run lasts on average only 40 minutes and a fire
category call lasts 21 minutes. For the vast majority of these high volume hours, the total
workload of all units combined is equivalent to 6 or fewer units busy the entire hour.
The hour with the most calls received was between 0800 and 0900 on February 17, 2010.
The 11 calls involved 12 runs. The combined workload was 326 minutes, which may spread
more than one hour. This is equivalent to between 5 and 6 firefighting units being busy the entire
hour. However, in the city there are 13 units staffed all of the time. During the worst portion of
the hour, there were always at least 6 units still available to respond immediately. Only 7 of the
13 units were busy more than 30 minutes during this hour.
The hour with the most calls was between 2100 and 2200 on September 19, 2009. The 8
calls involved 11 runs. The combined workload was 252 minutes, which may spread more than
one hour. This is equivalent to between 4 and 5 firefighting units being busy the entire hour.
However, in the city there are 14 units staffed all of the time in the summer. During the worst
portion of the hour, there were always at least 8 units still available to respond immediately.
Only 1 of the 14 units was busy more than 30 minutes during this hour.
TriData Division, 150 ICMA
System Planning Corporation Center for Public Safety Management
Table 19. Frequency Distribution of the Number of Calls
Number of Calls in
an Hour Frequency Percentage
0 4281 48.9%
1 2865 32.7%
2 1122 12.8%
3 373 4.3%
4 86 1.0%
5 26 0.3%
6-10 6 0.1%
11-15 1 0.0%
Observations:
A total of 33 hours (0.4 percent) in a year, there are 5 or more calls occurred in an hour.
It is approximately once every 11 days the fire department will respond to 5 or more calls
in an hour.
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System Planning Corporation Center for Public Safety Management
Table 20. Top 10 hours with the most calls received
Hour Number
of Calls
Number
of Runs
Total Busy
Minutes
02-17-2010 08 11 12 326
09-19-2009 21 8 11 252
02-17-2010 11 7 13 377
02-19-2010 13 6 9 316
01-19-2010 08 6 8 169
02-03-2010 12 6 8 275
05-07-2010 17 6 10 391
06-12-2010 11 5 7 256
12-18-2009 13 5 12 254
12-02-2009 17 5 11 272
Observations:
The hour with the most calls received was between 0800 and 0900 on February 17, 2010.
The 11 calls involved 12 runs. The combined workload was 326 minutes, which may
spread more than one hour. This is equivalent to between 5 and 6 firefighting units being
busy the entire hour. However, in the city there are 13 units staffed all of the time.
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System Planning Corporation Center for Public Safety Management
Table 21. Unit Workload Analysis Between 8 a.m. and 9 a.m. on 17-Feb-2010
Station 1 2 3 4 5 6 7 Number of
Busy Units Unit E
1
M
1
M
3
E
2
M
2
R
2
E
3
E
4
E
5
B
LS1
E
6
T
6
E
7
0-5 5.0
0.6 5.0
5.0
4
5-10 0.3
2.2
1.7 5.0 5.0
5.0
6
10-15 3.6 1.6
5.0
3.9 4.9 5.0
5.0
7
15-20 4.8
3.7
0.2
4.1
0.7
5
20-25 5.0
5.0
5.0
2.7
3.7
5
25-30 5.0
5.0
5.0
5.0 0.7 5.0
6
30-35 5.0
5.0
5.0 0.8 5.0 5.0 5.0
7
35-40 5.0
5.0
5.0 5.0 5.0 5.0 5.0
7
40-45 5.0
5.0
5.0 5.0 5.0 5.0 4.7
7
45-50 3.4
5.0
4.2 5.0 5.0 5.0 5.0
7
50-55
0.2
5.0 5.0 5.0 5.0
5
55-60
5.0 2.5 5.0 5.0
4
Total 42.1 1.6 0.0 41.1 0.0 0.0 35.0 36.3 54.3 30.7 54.1 0.0 0.0
Note: The numbers in the cells are the busy minutes within the 5 minute block. The cell values greater than 2.5 are coded as red.
Observations:
During the worst portion of the hour, there were always at least 6 units still available to respond immediately. Only 7 of the 13
units were busy more than 30 minutes during this hour.
TriData Division, 153 ICMA
System Planning Corporation Center for Public Safety Management
Figure 12. Unit Workload Analysis by Call Type Between 8 a.m. and 9 a.m. on 17-Feb-2010
Observations:
The total busy minutes for EMS calls were 228.6 minutes, which accounted for 77.4
percent of the total buys minutes.
The total busy minutes for non structure and outside fire category calls were 66.6
minutes, which accounted for 22.6 percent of the total buys minutes.
TriData Division, 154 ICMA
System Planning Corporation Center for Public Safety Management
Table 22. Unit Workload Analysis Between 9 p.m. and 10 p.m. on 19-Sep-2009
Station 1 2 3 4 5 6 7 8 Number of Busy Units Unit E1 M1 M3 E2 M2 R2 E3 E4 E5 BLS1 E6 T6 E7 E8B
0-5 0
5-10 0
10-15 0
15-20 3.0 1.1 1.1 3
20-25 5.0 5.0 5.0 3
25-30 5.0 5.0 3.3 2.7 3.3 5.0 6
30-35 5.0 4.7 5.0 5.0 5.0 4.5 6
35-40 5.0 5.0 4.6 4.3 4
40-45 5.0 5.0 3.7 2.5 4
45-50 5.0 5.0 5.0 5.0 4
50-55 5.0 1.2 2.7 2.9 2.8 1.2 6
55-60 2.9 5.0 5.0 3
Total 40.9 0.0 0.0 0.0 22.0 26.0 0.0 23.9 22.9 21.8 0.0 0.0 0.0 0.0
Note: The numbers in the cells are the busy minutes within the 5 minute block. The cell values greater than 2.5 are coded as red.
Observations:
During the worst portion of the hour, there were always at least 8 units still available to respond immediately since E8B was
staffed. Only 1 of the 13 units were busy more than 30 minutes during this hour.
TriData Division, 155 ICMA
System Planning Corporation Center for Public Safety Management
Figure 13. Unit Workload Analysis by Call Type Between 9 p.m. and 10 p.m. on 19-Sep-
2009
Observations:
The total busy minutes for EMS calls were 43.8 minutes, which accounted for 27.8
percent of the total buys minutes.
The total busy minutes for non structure and outside fire category calls were 113.7
minutes, which accounted for 72.2 percent of the total buys minutes.
TriData Division, 156 ICMA
System Planning Corporation Center for Public Safety Management
APPENDIX VII-A. CORRESPONDENCE BETWEEN CALL DESCRIPTION
AND CALL TYPE
NFIRS
Incident Code Incident Description Call Type
321B BLS Interfacility Transport Only BLS Transport
321D EMS call, downgraded for BLS transport BLS Transport
322D Vehicle Accident with Injuries - Downgraded for BLS Transport BLS Transport
323D Motor vehicle/pedestrian accident BLS downgrade BLS Transport
322 Vehicle accident with injuries MVA
323 Motor vehicle/pedestrian accident (MV Ped) MVA
324 Motor vehicle accident with no injuries MVA
321 EMS call, excluding vehicle accident EMS Other
322 Vehicle accident with injuries EMS Other
352 Extrication of victim(s) from vehicle EMS Other
353 Removal of victim(s) from stalled elevator EMS Other
357 Extrication of victim(s) from machinery EMS Other
445 Arcing, shorted electrical equipment EMS Other
463 Vehicle accident, general cleanup EMS Other
510 Person in distress, other EMS Other
600 Good intent call, other EMS Other
661 EMS call, party transported by non-fire agency EMS Other
321P EMS call, 5150 Transport EMS Other
111 Building fire Structure Fire
112 Fires in structures other than in a building Structure Fire
113 Cooking fire, confined to container Structure Fire
114 Chimney or flue fire, confined to chimney or flue Structure Fire
130 Mobile property (vehicle) fire, other Structure Fire
461 Building or structure weakened or collapsed Structure Fire
100 Fire, other Outside Fire
118 Trash or rubbish fire, contained Outside Fire
131 Passenger vehicle fire Outside Fire
140 Natural vegetation fire, other Outside Fire
141 Forest, woods or wildland fire Outside Fire
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142 Brush, or brush and grass mixture fire Outside Fire
143 Grass fire Outside Fire
150 Outside rubbish fire, other Outside Fire
151 Outside rubbish, trash or waste fire Outside Fire
154 Dumpster or other outside trash receptacle fire Outside Fire
160 Special outside fire, other Outside Fire
161 Outside storage fire Outside Fire
162 Outside equipment fire Outside Fire
561 Unauthorized burning Outside Fire
653 Barbecue, tar kettle Outside Fire
200 Overpressure rupture, explosion, overheat other Hazard
220 Overpressure rupture from air or gas, other Hazard
251 Excessive heat, scorch burns with no ignition Hazard
400 Hazardous condition, other Hazard
410 Flammable gas or liquid condition, other Hazard
411 Gasoline or other flammable liquid spill Hazard
412 Gas leak (natural gas or LPG) Hazard
413 Oil or other combustible liquid spill Hazard
421 Chemical hazard (no spill or leak) Hazard
422 Chemical spill or leak Hazard
424 Carbon monoxide incident Hazard
440 Electrical wiring/equipment problem, other Hazard
441 Heat from short circuit (wiring), defective/worn Hazard
442 Overheated motor Hazard
443 Light ballast breakdown Hazard
451 Biological hazard, confirmed or suspected Hazard
471 Explosive, bomb removal (for bomb scare, use 721) Hazard
480 Attempted burning, illegal action, other Hazard
522 Water or steam leak Hazard
531 Smoke or odor removal Hazard
650 Steam, other gas mistaken for smoke, other Hazard
651 Smoke scare, odor of smoke Hazard
652 Steam, vapor, fog or dust thought to be smoke Hazard
671 Hazmat release investigation w/ no hazmat Hazard
672 Biological hazard investigation, none found Hazard
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746 Carbon monoxide detector activation, no CO Hazard
412U Gas leak (natural gas or LPG) - PA Utilities Related Hazard
444U Power line down - PA Utilities Related Hazard
100 Fire, other Alarm
700 False alarm or false call, other Alarm
710 Malicious, mischievous false call, other Alarm
712 Direct tie to FD, malicious/false alarm Alarm
714 Central station, malicious false alarm Alarm
715 Local alarm system, malicious false alarm Alarm
730 System malfunction, other Alarm
731 Sprinkler activation due to malfunction Alarm
732 Extinguishing system activation due to
malfunction Alarm
733 Smoke detector activation due to malfunction Alarm
734 Heat detector activation due to malfunction Alarm
735 Alarm system sounded due to malfunction Alarm
736 CO detector activation due to malfunction Alarm
740 Unintentional transmission of alarm, other Alarm
741 Sprinkler activation, no fire - unintentional Alarm
742 Extinguishing system activation Alarm
743 Smoke detector activation, no fire - unintentional Alarm
744 Detector activation, no fire - unintentional Alarm
745 Alarm system sounded, no fire - unintentional Alarm
700U False alarm or false call, other - PA Utilities
Related Alarm
331 Lock-in (if lock out , use 511 ) Public Service
462 Aircraft standby Public Service
500 Service Call, other Public Service
511 Lock-out Public Service
520 Water problem, other Public Service
521 Water evacuation Public Service
542 Animal rescue Public Service
550 Public service assistance, other Public Service
551 Assist police or other governmental agency Public Service
552 Police matter Public Service
553 Public service Public Service
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554 Assist invalid Public Service
555 Defective elevator, no occupants Public Service
900 Special type of incident, other Public Service
520U Water problem, other PA Utilities Related Public Service
521U Water evacuation - PA Utilities Public Service
600 Good intent call, other Good Intent
6001 Good intent call, Sleeper, only sleeping Good Intent
611 Dispatched & cancelled en route Canceled
621 Wrong location Canceled
622 No incident found on arrival at dispatch address Canceled
TriData Division, 160 ICMA
System Planning Corporation Center for Public Safety Management
APPENDIX VII-B. WORKLOAD ANALYSIS FOR ADMINISTRATIVE UNITS
AND NON PALO ALTO UNITS
Agency Unit Description Unit
Total
Number
of Calls
Annual
Busy Hours
Palo Alto
Deputy Chief A2 1 0.6
A3 1 2
Battalion Chief B6 500 148.5
Training Captain TC1 2 1.5
Fire Investigator K1 4 14.6
K2 1 2
County Fire Engine
COE14 4 1.4
COE15 19 3.4
COE16 1 0.1
County Fire Truck COT14 1 1.6
County ALS Ambulance
AMR1 531 159.8
AMR2 74 27
AMR3 58 17.3
AMR4 8 1.8
AMR5 1 0.2
County Fire Rescue COR14 10 2.1
County Fire Bat Chief COB7 7 2.6
COBC 1 1.1
Menlo Park Menlo Park Engine
MPE1 54 13.1
MPE4 6 1.1
MPE6 44 2.6
Menlo Park Truck MPT1 1 0
Mountain View
Mountain View Engine MVE3 40 7.6
MVE5 51 9
Mountain View Truck MVT1 11 9.2
Mountain View Rescue MVR1 9 1.5
Mountain View Bat Chief MVB18 10 7.1
Park Ranger FHP1 8 6.7
FHP2 13 10.6
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FHP3 7 6.1
FHP4 1 0.4
Total Total 1,479 462.7
The PAFD provides service from seven stations year-round and one station on a seasonal
basis. The seasonal station (8) is staffed for 90 days (July through October), which is considered
the high-fire season. Palo Alto has an (ISO) Insurance Services Office rating of two, with the
highest being one. This rating is a technical guide for determining insurance costs and not
intended to be a guide in the design of a fire department. This is especially true for fire
departments that provide emergency medical service since EMS is not considered within the
rating schedule.
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System Planning Corporation Center for Public Safety Management
APPENDIX A: INTERNAL COMMUNICATIONS,
EVALUATION & PROJECT MANAGEMENT
A key element for PAFD improvement is for the organization to better understand its
performance on key initiatives and establish goals for various services. To do this the
expectations and involvement of managers must be improved and all personnel must support the
changes being made. For the PAFD senior managers must routinely engage supervisors and
personnel in continuous discussions about the issues and opportunities facing the organization,
and it must effectively evaluate performance, especially for those in management and
supervisory roles.
In this Appendix we discuss some additional findings related to improving the overall
management of the PAFD. We also present a plan to improve accountability, internal discipline,
and empower employees to effectively embrace change through project management. Also
included is a template the fire department to consider for its project management system.
There are five key areas to address for the organization.
1. Improve communication, leadership, and accountability to strengthen the team
approach to interpersonal, operational, and administrative performance. It is imperative
that everyone has the opportunity to collaborate on the implementation of this plan. Too often we
heard from rank and file members that they were not being heard and that leadership was not
advocating for their needs. Conversely, they were viewed as entrenched and unwilling to be open
to change. In order for this plan to be successful, everyone must be engaged in a collaborative,
constructive, and disciplined manner. This will not happen because we wish it to occur.
New habits and skills will have to be developed, as well as integrating the initiatives and
evaluative components of this plan at all levels of the department. Consequently, we recommend
installing the AIM system, which would serve as the foundation for establishing new individual
and organizational practices. AIM—an acronym for Assessment, Improvement, Maintenance—is
designed to enhance individual, team, operational, administrative, and interpersonal functions by
supporting strong communication practices, continuous quality improvement, and leadership
development. AIM is a FIRE/EMS performance management program offered by Performance
Management Group, San Rafael, California. A minimum review of quarterly review and
discussion of related issues by management personnel is recommended at staff meetings with
provision for feed-back of answers or resulting direction.
2. Revise performance evaluations to achieve organizational goals. A key need for the
Palo Alto Fire Department is to have supervisors build the confidence necessary to evaluate the
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personnel under their leadership. To do this all managers must be trained (and expected) to
achieve a high level of performance toward organizational goals, job requirements, team
function, attitude, etc. As such the PAFD in cooperation with the city‘s HR section need to
collaborate on a redesign of the evaluation process. It is possible the same contractor used for the
recommended AIM program could assist to integrate performance evaluation.
4. Implement a project management system and delegate projects to all managers. A
key component on improving organizational performance will be for the fire department to adopt
a project management system that includes control points. In this way managers are expected to
maintain their focus on assigned projects to ensure that specific goals and tasks are completed.
Such an approach is a key aspect of the total communication package and its implementation will
vastly improve employee involvement throughout the PAFD. At a minimum, quarterly reviews
should be completed by management personnel as part of the review process.
5. Designate certain managers to oversee the development and implementation of a
project management plan. A business manager or the training chief may be the best person to
implement a project management plan; however it could also be someone outside of the fire
department. This effort requires someone to fully support and manage the process and ongoing
implementation of the plan. This is an important project management role to ensure
accountability and the coordination of all aspects of the planning and implementation phases
down to the line level. The person or persons could be selected from upper of mid-level staff.
This would be a work plan for specific tasks with specific review dates, goals, objectives,
funding and the processing of funds to achieve objectives. This work plan would include
opportunity to seek the input of other personnel and work shifts when commencing work and
accomplishing specific tasks where it is prudent to seek the opinions of others. The process to
develop the project management system should consider the following:
Step 1: Establish a Planning Team and Gather Information – The first step is to
create a planning team to focus on the broad spectrum of areas associated with
planning such as the implementation of the recommendations in this report and an
annual review of the Departments strategic plan.
The team should be small enough to facilitate good group discussions, but large
enough to include appropriate goal setters, analysts for measuring performance
against metrics, and administration responsible for implementing the annual strategic
plan. The following are a good starting point for individuals to include: chief; chief
officer; fire captain; fire fighter; medical director; medical coordinator; fire marshal;
public education person; IT Specialist; GIS analyst; labor representative and business
manager.
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System Planning Corporation Center for Public Safety Management
The ‗team should then gather information from reliable sources such as the
International City Manager‘s Association (ICMA) Center for Performance
Measurement and the Center for Public Safety Excellence (CPSE). The ICMA has
considerable information about fire and EMS planning and performance. The
department could also participate in the ICMA multi-city comparison program or
simply use the ICMA performance measures. Likewise, the CPSE publishes the
Standard of Cover Manual, which provides an excellent process by which to
implement an annual strategic planning process based on risk analysis and
performance measurement. Information on these organizations can be found at:
http://publicsafetyexcellence.org
http://icma.org
The following texts contain good information for participants.
CPSE Fire & Emergency Services Self-Assessment Manual, 7th Edition
CPSE Standard of Cover Manual, 4th Edition
NFPA Fire Protection Handbook
ICMA Managing Fire and Rescue Services
We also suggest that one member of the team be designated to pull applicable
material from these references as background information and provide them for the
team.
Step 2: Define Objectives and Performance Metrics – Service level objectives
should be defined department-wide and for each of the major functions within the
department. Implementation details will be detailed by Senior Staff and Labor after
communication using the recommended program.
Objectives that focus on the desired end result (e.g., reduce structure fires by 10
percent; reduce fire loss by 25 percent, restructure divisions, restructure EMS) are
preferable to ‗generalized objectives such as ‗improve the fire prevention program‘.
An important consideration for performance measures is to understand the difference
between vanity and action metrics.
Vanity metrics are those that look impressive in a report, but are difficult to base
concrete actions on. Action metrics are performance measures that provide
information in a way that decision makers are able to implement changes and
evaluate the results.
TriData Division, 165 ICMA
System Planning Corporation Center for Public Safety Management
Step 3: Analyze the Results and Provide Regular Reports – The ‗planning team‘
should then analyze the various measures and establish a regular schedule (quarterly
is reasonable) to distribute the findings to the department.
Regular reporting serves several important functions: 1) it determines whether the
data collection process is working; 2) keeps department members informed about
progress in important areas; and, 3) provides interim reports for the annual review. As
the team gains experience, questions will undoubtedly arise from members of the
department, who may question whether the information is accurate. This is good and
it will take time for the team to improve the process. Experience has shown there to
be great value in providing performance information to the department‘s members,
who often complain about the reports that are required after each incident. Quarterly
and annual summary reports should prepared routinely.
Step 4: Conduct an evaluation of the plan at regular intervals – Evaluation is a
critical component of the planning process. The success of this effort is going to be
contingent on a number of variables, some anticipated and others not. A sound
evaluation component will provide the means to allow City, department officials and
employees the opportunity to confirm the direction of these initiatives and others that
might be added to the plan or modify them to achieve improved results. It will also
impose discipline and accountability on the planning and implementation processes.
The evaluation process and could be as simple as documentation on a dated copy of
the project management form. The evaluation process should continue for a minimum
of five years to insure systemic institutionalization, with adjustments documented
within a guiding policy as needed.
Following is an example of a project management form to be used as part of the
evaluation process.
TriData Division, 166 ICMA
System Planning Corporation Center for Public Safety Management
Sample Project Management Form
Palo Alto Fire Department
Project Management
Date Issued:
Goal:
Work Shift/Unit Supervisor Manager Funds Assigned Due Date Review Date Supervisor
Signature
Objectives in Detail with Resource Needs
1.
2.
3.
Review analysis on back of Form by date and those in attendance:
Approved Changes:
Supervisory review shall be frequent.
Formal Review shall be forwarded by specific Date Assigned by Policy:
Feed-back date with information attached:
Approved By: Date:
TriData Division, 167 ICMA
System Planning Corporation Center for Public Safety Management
APPENDIX B: LEAVE USAGE BY POSITION CLASSIFICATION
Year Sick Personal Business Vacation Holiday Bereave-ment In Lieu Disability Long-term Disability FMLA Unpaid Military Jury Duty Unpaid Mgmt Leave
Average Absence per person
FY 09-10
Fire Captains 3525.94 76.29 6663.78 180.65 120.00 2425.00 168.00 26.07 425.35
Fire Fighters 11296.25 230.08 16749.86 139.12 464.00 3733.80 480.00 38.50 55.79 404.72
Battalion Chiefs 108.00 9.00 728.00 110.00 20.00 325.00
FY 08-09
Fire Captains 4093.35 275.50 6371.50 40.00 144.00 3078.00 120.00 88.15 473.68
Fire Fighters 8150.50 961.70 13038.25 3.00 501.00 4924.50 166.92 351.21
Battalion Chiefs 178.00 10.00 830.00 98.00 90.00 301.50
FY 07-08
Fire Captains 3411.50 231.68 6904.32 136.50 216.00 1608.00 384.00 9.50 390.95
Fire Fighters 7956.00 778.74 13913.61 129.25 336.00 2784.00 1944.00 34.00 5.40 331.92
Battalion Chiefs 100.00 7.00 664.00 100.00 80.00 237.75
Source documents: Leave reports via ADHOC
TriData Division, 168 ICMA
System Planning Corporation Center for Public Safety Management
APPENDIX C: COST & PERCENTAGE OF OVERTIME BY PAY CODE, 2009
Code Description Total Percent
1000 Light Duty (LD) $16,774.66 0.42%
1200 Light Duty Modified (MLD) $78,390.54 1.96%
1300 Sick Leave (SL) $447,201.79 11.19%
130F Sick Leave Family (SLF) $116,191.84 2.91%
1600 Vacation (V) $799,957.29 20.01%
1710 Bereavement (BR) $20,163.12 0.50%
1720 Military Leave (ML) $24,772.80 0.62%
1730 Jury Duty (JD) $2,356.38 0.06%
3200 Overtime (OT) $1,833,154.53 45.85%
32E8 Overtime Engine 8 (OTE8) $186,292.01 4.66%
32M1 Overtime Medic 1 (OTM1) $427,391.76 10.69%
32ST Overtime Strike Team (OTST) $16,351.68 0.41%
7100 Long Term Disability (LTD) $28,788.48 0.72%
Grand Total $3,997,786.88 100.00%
TriData Division, 169 ICMA
System Planning Corporation Center for Public Safety Management
APPENDIX D: CITY OF PALO ALTO – EMS COLLECTION RATES
Description of
Paramedic Transport Fee Rate
ALS II Bundled Rate $1595.00 bundled charges include transport and
supplies with the exception of O2, millage, and night fee
ALS Base / BLS Downgrades Base - Bundled Rate $1375.00 bundled charges include transport and supplies with the exception of O2, millage, and
night fee
ALS-1 Special Event Stand By - The Fire
Chief or his designate can negotiate the fee for contracted services.
$165.00-$275.00 per hour
BLS Transport - Single $450.00 fee varies based on type of services rendered during the occasion
BLS Scheduled Transport - The Fire Chief or his designate can negotiate the fee for
contracted services.
$250.00-$550.00 fee varies based on type of services rendered during the occasion
BLS-1 Special Event Stand By - The Fire
Chief or his designate can negotiate the fee for contracted services.
$80.00-$150.00 per hour
911 ALS Transport Mileage $22.00 per mile
911 BLS Transport Mileage $22.00 per mile
Interfacility BLS Transport Mileage $22.00 per mile
Contracted interfacility BLS Transport
Mileage: The Fire Chief or his designate can negotiate the BLS Interfacility fee for
contracted services
$11.00 - $22.00 per mile
Night Transport Fee $66.00 per person/each occasion during the hours
of 7pm - 7am
Oxygen $110.00 per person/each occasion
TriData Division, 170 ICMA
System Planning Corporation Center for Public Safety Management
APPENDIX D: ICMA OPERATIONAL COMMENTS
ICMA Background
The International City/County Management Association (ICMA) is the premier local
government leadership and management organization. Since 1914, ICMA‘s mission has been to
create excellence in local governance by developing and advocating professional local
government management worldwide. ICMA provides an information clearinghouse, technical
assistance, training, and professional development to more than 9,000 city, town, and county
experts and other individuals throughout the world.
ICMA Center for Public Safety Management
ICMA Center for Public Safety Management helps communities solve critical problems by
providing management support to local governments. One of ICMA areas of expertise is public
safety services, which encompasses the following areas and beyond: organizational development,
leadership and ethics, training, assessment of calls for service workload, staffing requirements
analysis, design of standards and hiring guidelines for police and fire chief recruitment,
police/fire consolidation, community-oriented policing, and city/county/regional mergers.
Performance Measurements
The reports generated by the operations and data analysis team are based on key performance
indicators that have been identified in standards and safety regulations and by special interest
groups such as the International Association of Chiefs of Police, the International Association of
Fire Chiefs, the International Association of Fire Fighters, and the Association of Public Safety
Communication Officials International as well as and through the Center for Performance
Measurement of ICMA. These performance indicators have developed from decades of research
and are applicable in all communities. For that reason, comparisons of reports reveal similar
reporting formats, but each community‘s data are analyzed on an individual basis by the ICMA
specialists and uniquely represent the compiled information for that community.
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Methodology
The ICMA Center for Public Safety team follows a standardized approach to conducting
analyses of police, fire, and other departments involved in providing safety services to the public.
We have developed this approach by combining the expertise of dozens of data and operations
assessment professionals in the areas of police, fire and EMS. Collectively, our team has more
than 100 years of experience conducting such studies for cities in the United States and
internationally.
We begin most projects by extracting calls for service and raw data from an agency‘s computer-
aided dispatch system. The data are then sorted and analyzed for comparison with nationally
developed performance indicators (e.g., response times, workload by time, multiple unit
dispatching), which are valuable measures of agency performance regardless of departmental
size. The findings are shown in tabular as well as graphic form. Our documents generally follow
a standard process and rely on standard categories for performance indicators; because of the size
and complexity of the documents, this allows for simple, clean reporting. Again, however, the
data reported are unique to the city that is the subject of a particular report.
In many cases, cities hire ICMA to conduct an operational review alongside a data analysis. In
those cases, the performance indicators serve as the basis for the operational review and so the
review process also follows a standardized approach, one that is comparable to that of national
accreditation agencies. Before an ICMA Center for Public Safety Management team arrives on-
site, agencies are asked to compile a number of key operational documents (policies and
procedures, asset lists, etc.). Most on-site reviews consist of interviews with management and
supervisors as well as with rank-and-file officers and firefighters; attendance at roll calls; and
meetings with elected officials. We review call records and observe dispatch operations to ensure
compliance with the provided written documentation.
From any on-site visits and data assessments that have been conducted, our subject matter
experts produce observations and recommendations that highlight the department‘s strengths,
weaknesses, opportunities, and threats. We have found that this standardized approach ensures
that we measure and observe all critical components of a public service department, which in
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turn provides substance to benchmark statistics for cities with similar profiles. We are able to do
this because we recognize that while agencies may vary in size and challenges, there are basic
commonalities and best practices in use throughout the country, many of which we are able to
confirm and enhance through the numerous studies that we have conducted.
We liken this standardized approach to the manner of the financial audit: ICMA asks questions and
requests documentation upon project start-up; confirms the accuracy of information received;
deploys operations teams on-site to research the uniqueness of each environment; performs data
modeling and shares preliminary findings with each city; assesses any inconsistencies reported by
client cities, and, finally, communicates our results in a formal, written report and occasionally
with an in-person presentation hosted by the project team and other key contributors.
Our approach has been tried and tested, and we are confident that as public safety issues and best
practices evolve as a result of enhanced technology and intelligence and as cities‘ profiles change
because of population shifts or other key factors, our approach will remain relevant, effective, and
highly successful.
ICMA Project Contributors
Thomas J. Wieczorek, Director, ICMA Center for Public Safety
Leonard A. Matarese, Director, Research and Project Development
Kenneth R. Chest, Senior Public Safety Consultant
Dov N. Chelst, Senior Quantitative Analyst
Gang Wang, Quantitative Analyst
Alex Brown, Assistant Program Manager
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I. EXECUTIVE SUMMARY
ICMA was commissioned to review the operations of the Palo Alto Fire Department with
TriData Division. In this particular case, ICMA was tasked with conducting a data review and
administrative overview of the department while TriData was tasked with evaluating station
locations, overtime, and a number of other departmental functions. The goal of studies was to
determine the efficiency and effectiveness of deployment decisions as well as an analysis of the
operations of Palo Alto‘s Fire Department.
The objective of the operational assessment was to observe, analyze, comment and make
recommendations on the structure and organization of the department. The report will suggest
technology, the proper staffing levels based on data analysis, existing organization, and work
schedules.
ICMA‘s review covered the department‘s operations, with particular focus on the
appropriateness of its structure and function for achieving outcomes. The analysis of both
TriData and ICMA was limited by the inability of another firm to produce a contracted EMS
report. Neither firm anticipated a detailed analysis of EMS because of the prior contract; EMS is
a major component of the Palo Alto Fire Department and may require additional study.
Our work involved a detailed data and operational analysis of the internal workings of the
department as well as a review of services to the city. Our data analysis focused on four main
areas: calls for service, workload, deployment, and multi-response times. These areas are almost
exclusively related to operations, which constitute by far the majority of the department‘s
personnel and financial commitment. Although we limited our data analysis to these areas, our
operations review considered other areas of the department.
This report briefly describes the roles, responsibilities, and relationships within the
department as well as its strengths, weaknesses, opportunities and threats that confront it. The
report by TriData analyzed functions for both budgetary cost and performance.
Based upon our review, we believe that the Palo Alto Fire Department is a professional
organization. The limiting factor in continued improvement is the lack of an administrative
structure. The success of the department is and will be limited by the inability of the organization
to develop a strategic service delivery model. In the absence of sufficient administration, the
department reverts to a tactical operation.
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The difference between a tactical and strategic operation is that tactically operating
departments respond to the call of the day; they do not concentrate on long range planning,
developing comprehensive service objectives, or producing qualitative analysis on performance.
Strategically operating departments develop long range plans supported by identified goals and
objectives with specific assignments to complete the tasks.
From a financial standpoint, tactically operating departments are normally more costly
because calls for service generate a response; ways of effectively and efficiently meeting the
response are often not considered.
With the creation of an effective administrative structure, many of the problems that will
be identified by both ICMA and TriData will be eliminated or minimized. From discussions with
administrative and elected leaders of the community, the desire is to produce effective and
quantifiable results. Therefore, the administrative applications of the department must be first
improved.
Other changes may require contractual negotiation. ICMA recommends analyzing the
recommendations of TriData and ICMA with legal staff to determine what changes are necessary
and how these changes can take place.
We believe that there are opportunities to streamline the organization somewhat, and both
ICMA and TriData make recommendations on those organizational changes.
Based on an analysis of the current staff deployment, we believe that the department is
adequately staffed. We do not believe that the existing staff is optimally deployed.
Overtime is an issue with the department; many normal day to day tasks take place on
overtime rather than with reassignment. Additionally, existing staff could better serve the
City and Department with promotions and reassignment in the administrative area of the
department.
Palo Alto deploys with a focus on fire; the bulk of the department work is in the area of
EMS.
The department generates considerable revenue to offset costs for operation. With
improved efficiencies, the overall costs of the department can continue to be managed
while affording excellent service to the citizen and businesses of Palo Alto.
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II. OPERATIONAL ASSESSMENT
Like so many other American cities today, Palo Alto, California, is currently facing
economic uncertainty requiring the community to ensure that all aspects of municipal
government are operating at the highest levels of efficiency and effectiveness. This is particularly
critical in the public safety agencies since they often constitute the significant bulk of
organizational expenses.
In its analysis of the department, ICMA has applied broadly accepted contemporary
concepts and principles of organization and management to identify numerous areas where fire
department services could be strengthened. While we recognize that there is ―no one right way‖ to
organize a fire department and that every department must be structured to meet the specific needs
of the community it serves, certain principles of organization have been proven valid over a period
of time:
Tasks that are similar or related in purpose, processes, methods, or clientele should be
grouped in one unit or several units under the control of one person.
Each individual, unit, and situation should be under the immediate control of one, and
only one, individual, thus achieving unity of command.
Each task should be clearly made the duty of an individual; designated individuals should
have definitive responsibilities for planning, execution, and control. The individual does
not necessarily have to be an officer; tasks can often be completed by rank-and-file
members of the department if properly assigned and administered.
Each assignment or duty should carry with it the authority necessary to fulfill the
responsibility.
Clear lines of demarcation between the responsibilities of units should be drawn by a
precise definition of the duties of each.
Rank should increase one step at each level of the organization‘s structure and be
consistent with the duties and responsibilities assigned to the position.
Personnel in supervisory roles should hold supervisory rank.
Qualified civilian employees should staff functions that can be performed by unsworn
personnel.
Nontraditional or highly specialized functions should be established only if an ongoing
need is demonstrated and the opportunity for sharing service should first be explored. An
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example of this is the area of hazardous material response; staffing and responding from a
multi-jurisdictional team may more cost effectively provide the service as well as
improve the abilities and equipment for the responder.
These principles, coupled with the knowledge of the community possessed by the chief
and other command personnel, should guide the development and direction of the department.
A. Administration
The primary challenge facing the department is the establishment of an effective and
sufficient command structure. Because of retirements and the lack of succession planning, the
administration of the department is overwhelmed. As a result, it has resorted to managing by
tactic versus by an agreed upon strategy with corresponding tactics provided to achieve the
strategic goals.
ICMA and TriData both agree that the current arrangement of overseeing the department
by the police chief should be strengthened by creating a ―Director of Public Safety Services.‖
We came to that conclusion after meetings with citizens, elected and appointed officials, and
departmental staff. The police chief is currently filling this role and both firms feel that
recognizing the value will immediately create additional depth in the administration for the fire
department.
Serving the director would be a position like that of a fire chief and police chief.
By creating a ―Director of Public Safety,‖ one other issue can be immediately resolved:
the Emergency Management Department. Those functions are currently shared between police
and fire with responsibilities in each and without a clear delineation of function should an
emergency occur. By reporting to one person – the director – the emergency management
functions can be better coordinated and a more administration developed.
Palo Alto has an outstanding Citizen Emergency Response Team (CERT) with volunteers
throughout the community. By creating a structure under the director and utilizing both police
and fire department resources, the capacity of this unit can be fully realized. Because it is
volunteer, it is also cost effective for the city to build the CERT rather than hiring full time
personnel.
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ICMA and TriData have provided to the city one possible administrative structure; there
can be different variations developed that meet the needs of Palo Alto.
With the creation of the Director of Public Safety position, policy and procedure can be
expanded from existing resources of the police department to cover the fire department. It also
frees those in command under the director from these paper-intensive tasks so that the
department can move to being strategically deployed.
Human resource functions that are now shared between various commands in the fire
department should be moved to the city‘s human resources department and coordinated by
civilian personnel. Human Resource functions do not require a sworn or command position
which frees the existing personnel to better serve the fire department administratively while still
affording human resources to employees. During the visit by ICMA and TriData it was noted
that the employee testing was being written and created by fire department command. In most
cities, these processes are contracted out to firms or use established testing models that can be
purchased specifically for the position. Those models have been fully vetted and analyzed so that
they meet all legal requirements.
The city‘s human resources department could then administer the tests, conduct the
background investigations, and produce a listing to the fire department that would contain
eligible candidates for open positions. The department would then administer any specific added
testing such as the Candidate Physical Assessment Test (CPAT) or staff interviews with a final
listing produced for promotions and hiring. This would free up considerable time from the
administrators in the fire department and create a better product.
B. Training and Education
The training and education program of the department is another example of the need to
move to a strategy versus a tactical approach.
Because there is no administration and strategy for professional development in the
department, the task of training has fallen upon the truck company which is often overloaded
with calls for service as well as providing for training and education.
The impacts of not having a strategic training program are most vividly demonstrated by
the lack of a succession planning program. No members of the department have attended the
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National Fire Academy, including command, even though this training is among the best
provided in the country and is most often presented free of charge.
The presence of a national academic institution in Palo Alto provides an opportunity to
develop not just a program but a model that other departments could follow for employee
development. The strategic goal of the department should be to build leaders for the future which
will require considerable time and effort.
The department needs to acknowledge and embrace the fact that the majority of its work
is in the area of EMS. Hiring and promotional requirements should be amended to require that
paramedic status be in place prior to hiring and maintained throughout the employees career.
Employees may ―opt out‖ of maintaining their paramedic licenses without a corresponding
decrease in salary. Instead, the pay is frozen until employees without the license reach that salary
level and it then rises again. Because the majority of time and effort spent by the department is
in the area of EMS, persons wanting to be considered for promotion should be capable of
functioning not just in fire but in EMS. The option of not maintaining licenses should be
eliminated.
Because fire is a decreasing part of the workload and service provision of the department,
an annual competency testing program should be created to ensure that department members are
maintaining their skill sets. In addition, the competency testing should demonstrate that ongoing
yearly training is not just maintaining the skills but, ideally, improving the capability of the
department to provide service.
Employees who do not show competency would undergo remedial training with
identified objectives and penalties for non compliance. Examples of excellent training programs
can be found in Auburn, Alabama (which uses students from Auburn University), Arlington,
Texas, and Ionia, Michigan.
C. Facilities
There is an adage that ―a fire facility is a tool, not just a shelter‖. The design of a fire
facility greatly affects the manner in which an agency operates. The facility provides the right
mix of security and accessibility.
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The existing administration of the fire department is spread across a number of locations.
The city should look at consolidating administration in one location so that information and
knowledge can be better shared. By locating administrative services in one area, a team approach
is more easily created for resolving problems as well as planning for the future.
The only two fire stations with sprinkler protection are those that belong to the university.
TriData will provide concepts for consolidation of stations based upon Geographic Information
System analysis.
There are some issues with storage of equipment and other department assets that should
be addressed as part of a strategic plan. A central location with proper security and access should
be created so as to ensure purchases are used for the intended purposes along with a current
inventory of assets.
This type of process does not require a sworn position for oversight; it could also be
shared with another city department such as the police department.
D. Strategic Service Delivery
Because of the lack of administration, the department has reverted to delivering service
using a more traditional tactical model. The needs of the community are being met by the
professional staff on the department, but staff is stressed to establish long range direction for the
future.
The department should create a strategic plan that addresses: administration, planning,
communication, services, education (both public and employee), resources, and finances. A
template for this process can be found in the Center for Public Safety Excellence Fire
Accreditation Program. The approach that is used in this model is self-directed but should also
be approved by the elected officials of Palo Alto.
The department recently replaced many of its front-line engines. ICMA believes that this
was an important and critical move but demonstrates the affects of not having a strategy for
regular replacement of resources in the department. The six engines recently purchased came at a
considerable price – in one lump sum. The average engine lasts 15 or 20 years and, because all
were purchased at one time, all may be required to be replaced again at the same time. This type
of replacement creates huge spikes that are not going to decrease in future cycles.
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A strategic plan would analyze the usage of the vehicles and move engines with high use
to stations that have fewer calls as the equipment ages. The high-activity stations would receive
replacement engines first and the cycle would move equipment out at an identified point in time.
This creates a more manageable financial process and locates the right equipment in the right
place at the right time.
Similarly, the services delivered by the Palo Alto stations are not analyzed using a risk
model. The station that provides service to the accelerator is tasked with the potential of a
significant electrical fire yet responds with an engine like those in stations responding to fires in
structures. Structural fires rarely face the risk of being energized with thousands of volts of
electricity and use water as the extinguishing agent. Water is not suitable for an electrical fire.
Equipment should be purchased and located using a risk based model which would also look at
what and when calls for service are received. The opportunity for purchasing rapid response
vehicles equipped with Compressed Air Foam may better meet the service demands. Studies by
Los Angeles fire show the CAF is more efficient and effective than water.
Just as this example of equipment demonstrates, a strategy using risk, calls for service,
and hazards should be developed for all functions of the fire department.
E. Information Technology
The completion of the TriData work was hindered by the inability to analyze records of
the department.
Both ICMA and TriData have found that fire department record systems are not as
vigorous as their police counterparts. Police departments must capture and report data accurately
or face legal sanctions and dismissal of prosecution. Fire departments, on the other hand, do not
face sanctions for errors in reporting or systems that do not capture accurate data.
In order to strategically manage the department, accurate data on performance must be
captured and be capable of analysis. This analysis should not be like that done by these reports; it
needs to be done on a monthly, weekly, or even daily basis. An agency or city cannot improve on
something for which they do not have a measurement process.
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ICMA and TriData were impressed by the staff managing the CAD system.
Improvements need to be made for which there are plans. A system should be created so that
data is routinely captured and reported on all activities in the fire department.
This data should not be limited to just fire or EMS calls. In order to establish the
workload of each unit, station, and shift, all tasks should be measured. These include: building
inspections, community programs, equipment maintenance, training, etc. Why these elements of
time need to be captured can best be demonstrated with an example of property inspections.
The Fargo, North Dakota fire department had stated that they could not inspect all
commercial buildings each year; rather, the best they could hope for was one-third of the
buildings each year. The new chief established performance measures and began tracking the
time that each unit took on inspections and, within one year, had not only inspected all of the
commercial structures in the city, but had also inspected a number of other occupancies as well.
The importance of data collection is not important just to the fire department. The ability
to share data between departments in Palo Alto can reduce redundancies and improve service to
citizens and businesses. Often times when the building department is having issues with an
occupancy, it is likely that the police may be called more often as well as the fire department or
EMS. By regularly reporting and reviewing accurate data both within the department and
between departments, these problems can be identified and resolved. Another name for this
Computer Statistical process is ―COMPSTAT‖ or ―CITISTAT.‖
COMPSTAT is an abbreviation for computerized statistics whose use started with the
New York City Police Department. Los Angeles was recently featured on national news
programs because it has used this data to manage the mobile deployment of police resources.
A robust COMPSTAT/CITISTAT program could meet weekly to discuss initiatives from
a cross-section of all city departments to provide input on any problems or concerns surrounding
the community.
The meetings should focus on what occurred in the previous seven days, any new or
ongoing topics affecting the community, crime trends, and any other outstanding issues.
As an option, the city and fire administration may allow citizens‘ groups to attend and
provide input on any problems in the community. This will benefit the city‘s community policing
approach while also enhancing customer service.
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Additionally, COMPSTAT will strengthen managements‘ building blocks, holding all
command and first-line supervisors accountable and responsible for their personnel.
F. Dynamic Deployment
EMS consumes the majority of time for the Palo Alto Fire Department. Time to reach a
patient is critical to recovery or successful intervention. The analysis of station locations and
travel time conducted by TriData clearly showed the affects of traffic calming and the street
network on the efficiency and effectiveness of deployed resources. The data analysis conducted
by ICMA also showed that first unit response at the 90th percentile was within the range of
national benchmarks established by groups such as the National Fire Protection Association
(NFPA) in its 1710 deployment standard. However, second and third units were higher than the
recommended ranges.
In order to begin patient care in under 10 minutes from the initial call for service or to
deploy sufficient resources to allow two firefighters to enter a burning structure (using the two-
in; two-out rule of OSHA), 9.1 minutes of time is consumed. This is shown in Figures 10 and 11
of the data analysis portion of this report.
The alternatives available to correct this problem include: remove traffic calming, build
more stations, deploy with a dynamic model.
The first two alternatives would not only be costly, they would likely be met with
opposition from neighborhood associations. The third alternative – dynamic deployment – uses
data to determine where calls for service are likely to be generated. Research has shown that
human beings and communities are quite predictable; calls for service create trends and patterns
that can be used predictably to locate resources in the event responders are required. The
research has been intensively developed in the United Kingdom over the past nine years to also
identify preventive mechanisms that can be taken to eliminate calls altogether.
Deploying dynamically would position resources using computer models that would
utilize data collected from department records. Because the data is currently not in a form to be
easily analyzed, one critical component to success of this strategy would be the creation of a
Geographic Information System (GIS)/Technology position. Again, this could be shared with the
police department and other city services.
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Deploying dynamically reduces the need to build fixed fire stations that may or may not
be needed in the future. The city has used a form of this process to staff Station 8 during a
portion of the year and for part of the day.
The process has been used not just in the United Kingdom but also in the United States,
usually by private medical services. In Michigan, Huron Valley Ambulance Company deploys
more than 135 units across more than four townships from Detroit west to Jackson. In North
Dakota and Minnesota, ambulance service is provided to Fargo and Moorhead using the same
technology. Systems have been developed, most recently by Motorola, to continually analyze
and locate units.
G. Automated external defibrillators (AEDs)
AED‘s are portable electronic devices that automatically diagnose the potentially life-
threatening cardiac arrhythmias of ventricular fibrillation and ventricular tachycardia in a person
and can be used to treat him or her through defibrillation. AEDs are designed to be simple to use
with relatively little training and are mistake-proof.
Presently, the police department is not involved with the AED applications. The fire department
responds as first responders.
As stated in an article in Public Management magazine6, ―Often this is because the issue
of emergency medical responder believing that responding to medical calls is solely the
providence of Fire and EMS departments. And many police chiefs have been reluctant to
implement an AED program for various reasons, including officer resistance. (Interestingly,
there have been numerous cases where police departments, having implemented an AED
program, used the unit to save a fellow officers life).‖
Police and other law enforcement officers have a vital role to play in fighting sudden
cardiac arrest (SCA). SCA can happen anywhere, anytime, to people of all ages in all walks of
life.
In 1999, every police officer in Miami-Dade County was issued an AED and trained in its
use. (Miami-Dade police officers have ―take home‖ cars so each police car was outfitted with an
AED). The 911 dispatch system was adjusted so that both police and fire rescue units were
dispatched to any medical call that may be a cardiac arrest. If police arrived first they carried out
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CPR and/or defibrillation, until the arrival of the fire rescue. This practice reduced the response
times from 8 to 5 minutes, thus increasing the survival rates.
Research has clearly shown that every minute counts: If an AED shock is administered
within 3 minutes of collapse, the survival rate can increase up to 74 percent. Reducing response
time by even 1 or 2 minutes from collapse to shock can mean the difference between death and
survival.
Both the city and police administration may want to explore the use and feasibility of
AED for the patrol units. Additionally, the municipality may want to institute a community
service campaign to identify where an AED may be located throughout the city. This information
would be recorded and be available in the public safety CAD/RMS12.
If a 911 call is received regarding a SAC, the emergency medical dispatch personnel
could provide the AED location and instruction on its use until police and or emergency medical
personnel arrive on the scene.
H. Alarms
False alarm issues are faced by all departments; ICMA has found college towns experience
higher rates than average.
The data analysis showed Palo Alto responded to 1,714 alarms which consumed an
average of 15.6 minutes per response. The total spent on answering alarms was 445 annual and
was responsible for 5.5% of the available time. Alarm response was second only to EMS calls
for service.
ICMA has developed strategic relationships with a number of firms that are applying
technology to eliminate one of the leading calls for alarms: smoke from stoves and microwaves.
Pioneering Technology has developed a replacement burner for electric stoves and hot plates that
reaches a maximum heat temperature sufficient to cook but that minimizes fires. Normal electric
ranges and hot plates generate substantially more heat than is required to cook (and consume
considerably more energy as a result). The technology developed replaces the burners with
―smart technology‖ that eliminates this danger and saves substantial energy in the process. It has
12 Leonard Matarese, David Limardi, “The Value of Automated Defibrillators Lives On,”
Public Management 92 (September 2010 p. 15-17)
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been installed not just in college housing, but in many public housing projects across the United
States both for cost savings as well as fire minimization.
The same firm has also developed electric interruption technology that senses when
smoke is being generated in a microwave and shuts down the device. ICMA found one of the
leading reasons for alarms in Auburn, Alabama was smoke from burning popcorn in
microwaves. The device created by Pioneering Technology senses this smoke before it sets off a
room alarm and turns off the microwave.
The city and fire administration may want to expand upon their present alarm ordinance
to include models which ICMA can furnish.
• Inter-departmental interviews: These interviews intend to identify overlapping goals
and potential conflicts between departments and the City's various policies and
procedures.
Discussion
The study session is an opportunity to introduce the project consultants, Hort Science,lnc. and
Circle Point, to the City Council and the community. The consultants will make a presentation
to:
• Introduce the key elements of the master plan. These include:
o Review and analysis of existing policies and procedures, analysis of street tree
inventory, overview of benefits provided by the urban forest, and assessment of
historical tree canopy coverage.
o Introduction of how Palo Alto can evaluate the sustainability of its urban forest.
o Presentation of a "road map" for future management with an eye towards
sustainability.
o Relationship of City departments to urban forest management.
• Discuss the proposed criteria and indicators for maintaining and enhancing a sustainable
urban forest in Palo Alto.
• Discuss the preliminary results of the online survey. The online informal survey was
available on the City's website from January 14 until January 26. Invitations to take the
survey were sent via email to a wide variety of community leaders, groups and
distribution lists, including elected officials and boards, neighborhood associations,
environmental and gardening organizations, development professionals, business
groups, and tree industry professionals.
Next Step
In late March, CALFIRE will preview the draft components as part of the grant requirements.
Subsequently, the City will prepare a draft plan that will be reviewed and commented on by the
public and reviewing boards, commissions and the Council in the summer of 2011. There will
beacommunity meeting as well as a second Council study session prior to preparing a plan for
adoption by the City Council.
Resources Impacts
No Council action on the Urban Forest Master Plan is requested at this time. Funding for the
project is provided by:
1. A $66,000 CALFI RE grant; and
2. $93,604 from the City Manager's Contingency Account to be replenished by the Public
Works, Utilities, Community Services, and the Planning and Community Environment
Departments during the FY 2011 mid-year budget review process
February 07, 2011
·(lD # 1332)
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Policy Implications
This project is consistent with the City's sustainability policies and numerous goals, policies and
programs in the Natural Environment and Land Use chapters of the Comprehensive Plan,
including but not limited to:
GOAL N-3: A Thriving "Urban Forest" That Provides Ecological, Economic, and Aesthetic Benefits
for Palo Alto.
POLICY N-14: Protect, revitalize, and expand Palo Alto's urban forest through public education,
sensitive regulation, and a long-term financial commitment that is adequate to protect this
resource.
PROGRAM N-16: Continue to require replacement of trees, including street trees lost to new
development, and establish a program to have replacement trees planted offsite when it is
impractical to locate them onsite.
PROGRAM N-19: Establish one or more tree planting programs that seek to achieve the
following objectives:
• A 50 percent tree canopy for streets, parks, and parking lots; and
• The annual tree planting goals recommended by the Tree Task Force and adopted by the
City Cou ncil.
PROGRAM N .. 20: Establish procedures to coordinate City review, particularly by the Planning,
Utilities, and Public Works Departments, of projects that might impact the urban forest.
POLlCY:N-17: Preserve and protect heritage trees, including native oaks and other significant
trees, on public and private property.
POLICY L-70: Enhance the appearance of streets and other public spaces by expanding and
maintaining Palo Alto's street tree system.
POLICY L-76: Require trees and other landscaping within parking lots.
Environmental Review
This is an information only item and environmental review is not required. It is anticipated.that
the Urban Forest Master Plan will be categorically exempt from the California Environmental
Quality Act (CEQA).
COURTESY COPIES
Catherine Martineau, Canopy
ATTACHMENTS:
• Attachment A: CMR 415:10
February 07, 2011
(ID # 1332)
(PDF)
Page 3 of4
Prepared By:
Department Head:
City Manager Approval:
February 07, 2011
(ID # 1332)
Gloria Humble, Senior Planner
Curtis Williams, Director
James Keene, City Manager
Page 4 of4
TO: HONORABLE CITY COUNCIL
FROM:· CITY MANAGER
,
DATE: NOVEMBER 22, 2010
REPORT TYPE: CONSENT
DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
CMR: 415:10
SUBJECT: Approval and Authorization for the City Manager or his Designee to
Execute the Attached Contract wi'th HortScience, Inc. (Attachment A)
bl the Amount of $159,604 for the Development of an Urban Forest
MasterPlan
. EXECUTIVE SUMMARY
In 2008, the City l'eceived a $66,000 grant from the State (CalFire) to provide partial funding for
preparation of an Urban Forest MasterPlan for the City. Staff issued a Request for Proposals
(RFP) for the preparation of the plan in 2010. Staff is recommending selection of HortScience to
prepare the master plan at a cost not to exceed $159,604, based on a'work program developed by
staff, Canopy, and the consultants. Staff requests that the City Council authorize the City
Manager to execute the attached contract.
RECOMMENDATION
Staff recommends that Council:
1. ApPl'ove and authorize the City Manager 01' his designee to execute the attached contract
with HortScience, Inc. (Attachment A) in the amount of $159,604 for the development of
. an Urban Forest Master Plan.
2. Approve the use of $93,604 from the City Manager's Contingency Account to fund the"
amount not covered by the grant to be replenished by the Public Works, Utilities,
Community Services, at:1d Planning and Community Environment Departments during
the FY 2011 mid-year budget review process.
BACKGROUND
The Palo Alto community has long been aware of the need to proactively preserve and enhance
the city's urban forest. In 1993, the City Council appointed a Tree Task Force to make
recommendations and in 1995 the Council adopted their recommendations including:
• The creation of a non-profit tree group. In 1996 Canopy was established to serve as the
community's resource on tree .. related matters as well as act as the City's advisor and partner
for tree planting and tree care activities. .
CMR: 415:10 Page 1 of5
• The development of a Tree Protection Ordinance. In 1996, the Council adopted the Tree
Protection Ordinance which established criteria for "protected" trees, which cannot be
removed without City approval.
In 1998, the cun'ent Comprehensive Plan was adopted, including several goals, policies, and
programs to preserve, maintain, and .enhance the city's U1'ban forest. On Earth Day 2006,
Council directed staff to create a new Street Tree Management Plan to implement the
Comprehensive Plan goals and policies. .
In 2001, the City collaborated with Canopy to apply for" a grant from CALFIRE to help fund the
development of the Master Plan. In August of 2008, the grant was awarded; however, due to
staffing reductions and state budget constraints, the preparation of the master plan was delayed.
In late 2009, the removal of the street trees on California Avenue ftnther underscored the need
for a master plan. In the spring of201 0, the City assembled a team, including staff as well as
Canopy, to oversee the preparation of the master plan.
DISCUSSION
The Ui'ban Forest Master Plan is an important component of the City's Sustainability Program .
that will establish the tn'ban forest as an asset that must be preserved and renewed; it will.provide
a road map to accomplish that goal. The future of Palo Alt9's urban forest is seriously threatened
by many factors, such as water restrictions, the installation of fiber optics, and on-going
development that affect Palo Alto's tree canopy every day. A master plan is needed to help the
City conserve, renew, and monitor its urban forest and will identify how to minimize conflicts
between retention of the urban forest and construction of development and infrastructure
projects, as well as the City's continued maintenance and operational needs.
In late July, a Request for Proposals (RFP) was circuhited for the preparation of the Urban Forest
Master Plan with the following objectives:
1. Ensure that the City has an accurate and complete picture of its urban forest
2. Establish the urban forest as an asset
3. Establish the importance of the urban forest to the City's sustainability goals
4. Provide a road map for effective and efficient management th~t employs best practices
and latest advancements
5. 'Consolidate resources (internal and external)
6. Engage the community as stewards of the urban forest
7. Provide a monitoring plan
Number of proposals received 4
Number of firms interviewed 3
Range ofproposal8.!Ilounts $69,000 to $239,000
Proposed length of project 9 months
The review panel for the proposals was composed of the City'S Public Works and Planning
arborists and the Executive Director of Canopy .. The panel evaluated four proposals and
interviewed three of the bidders. At the interviews, the panel reinforced its expectations that the
document will provide for inter-departmental protocols as a resource for staff, a thorough
understanding of probable-future· water-conservation mandates, and a flexible response to such
CMR: 415:10 Page2of5
environmental ~hanges-including the role of the City's recycled water program. The interviews
~stablished that some components of the Palo Alto Urban Forest Mastel' Plan would be
unprecedented based"on the consultants' previous experiences.
Based on their proposal, experience, and interview, HortScience was determined by the panel to
be uniquely qualified to help the City develop a plan for sustaining the urban forest. In the tree
industry, HortScience stands out as one of the world's premier academic and technically
advanced consulting firms. Staff believes that HOl1:Science, brings the needed level of ,
arbol'icultural expertise to all aspects of the project. The panel believes that use of any of the
other eonsultants would result in City staff needing to prepare at least some components of the
Urban Forest Master Plan, e.g., the urban forest sustainability program and an adaptive
management program for our recycled ,water program.
HOltScience pUblications illustrate a match between their expertise and the objectives of the
Master :plan. Two particularly significant projects completed by Ms. Matheny and Mr. Clark,
principals of the firm, are:
1. Development of a model for the assessment of urban forest sustainability through a grant
from the USDA -Forest Service (Attachment B). Implementing the model for Palo Alto will
provide: '
a. A community .. specific template for managing the City's urban forest and monitoring
its sustainability
h. A sustainability scorecard that can be used throughout the community to continually
assess progress towards attaining specified goals
2. Development of the Water Use Classification of Landscape Species. The proposed work plan
includes a comprehensive analysis of the water use and salt toleranC'e of tree. species. Using
this classification system will provide the City with state-of-the-art information to meet state
goals for water conservation.
Additionally, HortScience is currently under contract with the Utilities and Public Works
Departments to provide expertise in the use of recycled water for landscape irrigation.
HortScience's expertise regarding Palo Alto's recycled water challenges will streamline
permitting;' alleviate conflicts between departments and guide the process to avoid costly
mistakes. FinB;l1y, staffs expeltise will be enhanced by working with HortScience on the
project.
Staff has negotiated the attached contract (Attachment A) with HortScience for the development
of an Urban Forest Master Plan that will cost $159,604. .
The project will also include:
1. Inter-departmental interviews by the consultant.
2. Significant public outreach, including:
• A community-wide survey to gather input
• A City Council Study Session early in the process to provide broad policy
direction
CMR: 415:10 . Page 3 of5
• A City Council Study Session at the end of the process to discuss the draft Master
Plan
• Two community meetings to discuss the draft Urban Forest Master Plan
RESOURCE IMPACTS
Funding for the project is provided by:
1. A $66,000 CALFlRE grant; and
2. $93,604 from the City Manager's Contingency Account to be replenished by the Public
Works, Utilities, Community Services, and the Planning and Community Environment
Departments during the FY 2011 mid-year, budget review process.
POLICY IMPLICATIONS
This project is consistent with the City's sustainability policies and numerous goals, policies and
programs in the Natural Environment and Land Use chapters of the Comprehensive' Plan,
including but not limited to:
GOAL N-3: A Thriving "Urban Forest" That Provides Ecological, Economic, and Aesthetic
Benefits for Palo Alto.
POLICY N .. 14: Protect, revitalize, and expand Palo Alto's urban forest through public education,
sensitive regu~ation, and a long-tenn financial commitment that is adequate to pro~ect this
resource.
PROGRAM N-16: Continue to require replacement. of trees, including street trees lost to new
development, and establish a program to have replacement trees planted offsite when it is
impractical to locate them onsite.
PROGRAM N-19: Establish one or more tree planting programs that seek to achieve the
following objectives:
• A 50 percent tree canopy for streets) parks) and parking lots; and
• The annual tree planting goals recommended by the Tree Task Force and adopted by the City
Council.
PROGRAM N-20: Establish procedures to coordinate C~ty review, particularly by the Planning,
Utilities, and Public Works Departments, of projects that might impact the urban forest.
~OLICY N-17: Preserve and protect heritage trees, including native oaks and other significant
trees, on public and private property.
POLICY L-70: Enhance the appearance of streets and other public spaces by expanding and
maintail)ing Palo Alto's street tree system. .
POLICY L-76: Require trees and other landsca.ping within parking lots.
ENVIRONMENTAL REVIEW
Approval of this contract is not considered a project subject to the.requirements of the California
Environmental Quality Act (CEQA).
CMR: 415:10 Page4·of5
CITY OF PALO ALTO CONTRACT NO. Cl1137721 .
AGREEMENT BETWEEN THE CITY OF PALO ALTO AND
HORTSCIENCE, INC.
FOR PROFESSIONAL SERVICES
PROVIDE URBAN FOREST MASTER PLAN
This Agreement is entered into on this 23rd day of November, 2010, by and between the CITY
OF PALO ALTO, a California chartered municipal corporation ("CITY"), and
HORTSCIENCE, INC., a California Corporation, located at 2150 Rheem Drive, Suite A,
Pleasanton, CA 94566, (PH) (925) 484~0211 ("CONSULTANT").
RECITALS
The following recitals are a substantive portion of this Agreement.
A. CITY intends to implement an Urban Forest Master Plan in conjunction with other
environmental initiatives ("Project") and desires to engage a consultant to provide an Urban Forest
Master Plan for this Project. e'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 tenn of this Agreement shall be from the date of its full execution through August 30, 2011,
unless te~inated 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 tenn 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
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shall be commenced and completed by CONSULTANT in a reasonably prompt and timely marmer
based upon the circumstances and direction communicated 'to the CONSULTANT. CITY's
agreement to extend the term or the schedule for performance shall not preclude recovery of damages
for delay if the extension is required due to the fault of CONSULTANT.
SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSULTANT for performance of the Services described in Exhibit" A", including both
payment for professional services and reimbursable expenses, shall not exceed One Hundred
Fifty Nine 1i'housand Six Hundred Four Dollars ($159,604.00). In the event Additional Services
are authorized, the total compensation for services and reimbursable expenses shall not exceed
One Hundred Fifty Nine Thousand Six Hundred Four Dollars!·($159,604.00). The applicable
rates and schedule of payment are set out in Exhibit "C-l", entitled "FEE and RATE
SCHEDULE," which is attache~ 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 descri\>ed 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 .. l "). If applicable,
the invoice shall also describe the percentage of completion of each task. The information in
CONSULTANT's payment requests shall be subject to verification by CITY. CONSULTANT shall
send all invoices to the City's project manager at the address specified in Section 13 below. The City
will generally process and pay invoices within thirty (30) days of receipt.
SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be
performed by CONSULTANT or lUlder CONSULTANT's supervision. CONSULTANT represents
that it possesses the professional and teclmical personnel necessary to perfonn 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
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Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all
char~es and fees, and give all 'notices required by law in the performance of the Services.
SECTION 8. ·ERRORS/OMISSIONS. CONSULTANT shall correct, atno'costto 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 pri<?r to and during the course of construction of the, Project.
This obligation shall survive tennination 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
desigri 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
CONSUL T ANT are material considerations for this Agreement. CONSULTANT shall not assign or
transfer any interest in this Agreement nor the performance of any of CONSULT ANT's obligations
hereunder without the prior written consent of the. city manager. Consent to one assignment will not
be deemed to be consent to any subsequent assignment. Any assignment made without the approval
of the city manager will be void.
SECTION 12. SUBCONTRACTING.
DOption A: No Subcontractor: CONSULTANT shall not subcontract any portion 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:
CirclePoint, Inc.
CONSULTANT shall be responsible for directing the work of any subconsultants and fef any
compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning
compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a
sub consultant. CONSULTANT shall change or add sub consultants only with the prior approval of
the city manager or his designee.
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SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Jim Clark, Vice
President, as Project Manager, to have supervisory responsibility for the performance, progress, and.
execution of the Services and to represent CONSULTANT during the day-to~day work on the
:project. If circumstances cause the substitution of the project manager, or any other key personnel
for any reason, the appointment of a substitute project manager and the assignment of any key new or
replacement personnel will be subject to the prior written approval of the CITY's project manager.
CONSULTANT, at CITY's request, shall promptly remove personnel who CITY finds do not
perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate
or timely completion oft~e Project or a threat to the safety of persons or property.
The City's Project Manager is Gloria Humble, Planning and Community Environment Department,
250 Hamilton Avenue, Palo Alto, CA 94301, Telephone: (650) 329-2596. 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. CONSULT ANT 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 ~l 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 IS. AUDITS. CONSULTANT will pennit CITY to audit, at any reasonable time during
·the term of this Agreement ~d 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.
IZI[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 ca¥sed in part by an Indemnified Party.
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o {Option B applies to any consultant who does not qualify as a design professional as defined
in Civil Code Section 2782.8.] 16.1. To the fullest extent permitted by law, 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 irijury 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 perfonnance or
nonperformance by CONS'VLTANT, its officers, employees, agents or contractors under this
Agreement, regardless of whether or not it is caused in part by an Indemnified Party.
162. Notwithstanding the above, nothing in this Section 16 shall be construed to
require CONSULTANT to indemnify an Indemnified Party from Claims arising from the aotive
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 tennination 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 Agr~ment, 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 perfotto 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 certificate~ 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 tenn of this Agreement.
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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. Notwiths.tanding the policy or policies of insurance, CONSULTANT will be
obligated for the full and total amount of any damage~ injury, or loss caused by or directly arising as
a result of the Services performed under this Agreement, including such damage, injury, or loss
arising atter the Agreement is terminated or the tenn 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 tenninate th~s 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, ifany, 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 S~rvices rendered or materials delivered to CITY in accordance with the scope of services on
or before the effeqtive 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 CONSULT ANT,
CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT's
services which are of direct and immediate benefit to CITY as such determination may be made by
the City Manager acting in the reasonable exercise ofhislher discretion. The following Sections will
survive any expiration or termination of this Agreement: 14, 15, 16, 19.4,20, and 25.
19.5. No payment, partial payment, acceptance, or partial accepta,nce 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
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" '_.
With a copy to the Purchasing Manager
To CONSULTANT: Attention of-Jim Clark, Vice President,
at the address of CONSULTANT recited above
SECTION 21. CONFLICT OF INTEREST.
21.1. In accepting this Agreement, CONSULTANT covenants that it presently has
no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would
conflict in any manner or degree with the performance of the Services.
21.2. CONSULTANT further covenants that, in the performance of this Agreement,
it will n<;>t 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 Envirom;nentally 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 300/0 or greater post-consumer content paper, unless otherwise approved
by the City's Project Manager. Any submitted materials printed by a professional
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printing company shall be a minimum of30% or greater post-consumer material and
printed with vegetable based inks.
• Goods purchased by Consultant on behalf of the City shall be purchased in
accordance with the· City's Environmental Purchasing Policy including but not
limited to Extended Producer Responsibility requirements for products and
packaging. A copy of this policy is on file at the Purchasing Office.
• Reusable/returnable pallets shall be taken back by the Consultant, at no additional
cost to the City, for reuse or recycling. Consultant shall provide documentation from
. the facility accepting the pallets to veri~ 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 tune 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 ~onflict 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 ofCalifomia.
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 attomeysemployed 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 proyision 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.
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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'ofthe system or in the security
of the Personal Information. CONSULTANT shall not use Personal Infonnation for direct marketing
purposes without City's express written consent.
IN WITNESS WHEREOF, the parties hereto have by their duly authorized
representatives executed this Agreement on the date first above written.
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EXHIBIT "A"
1. SCOPE OF SERVICES
The key element of the work plan is urban forest sustainability. CONSULTANT shall-use the
model for sustainable urban forests developed by HortScience, Inc. as the starting point,
modifying it to provide Palo Alto with a community specific template for managing its urban
forest and monitoring its sustainability. In so doing, CONSULTANT shall meet all of the
project's objectives, respond to the each of the requested services and provide the project
deliverable.
The model of urban forest sustainability arose from a national project that HortScience
prepared for the USDA Forest Service National Urban and Community Forestry Advisory
-Council. The model describes 20 criteria essential to a sustainable urban forest. These
criteria fall into three broad categories (Table 1, below): characteristics of the vegetation in the
community., the community framework, and resource management. For each criterion, the model
describes levels of performance -indicators that can be used to assess the current condition. The
model was tested for over 20 cities in the U.S., and has been adapted for use in a number of
countries, states and communities. For example., the model is one of the foundational elements
of Sacramento Tree Foundation's Greenprint Initiative.
CONSULTANT's project approach is based on adapting the model of urban forest sustainability
to Palo Alto, using the following steps:
1. Compile policies and information about Palo Alto's urban forest, leading to
analysis of the current statns, chaUenges and opportunities.
1.1 City Policies & Documents
• Comprehensive Plan (relevant sections).
• Municipal Code (tree & zoning sections).
• Tree Technical Manual.
• Climate Protection Plan.
• USDA N. Calif. Coast Community Tree Guide.
• Cal Green.
• California PUC Section 4799.06 .. 4799.12.
• Utilities Department tree management program.
• Palo Alto Sustainability plan. Identify the key connections to the City's
urban forest and its management.
• Tree management (public, private, utility) funding status and history.
• Other City policies, procedures, agreements that relate to tree and urban
forest management.
• Evaluate current and proposed use of recycled water for landscape
irrigation.
• Summarize findings (including where modifications / changes may be
required).
• California PUC Section 4799.06-4799.12.
• Utilities Department tree management program.
• Palo Alto Sustainability plan. Identify the key connections to the City's
urban forest and its management.
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• Tree management (public, private, utility) funding status and' history.
• Other City policies, procedures, agreements that relate to tree and urban
forest management.
• Evaluate current and proposed use of recycled water for landscape
Irrigation.
• Swnmarize findings (including where modifications I changes may be
required). California PUC Section 4799.06-4799.12.
• Utilities Department tree management program.
• PaIo Alto Sustainability plan. Identify the key connections to the City's
urban forest and its management.
• Tree management (public, private, utility) funding status and history.
• Qther City policies, procedures~ agreements that relate to tree and urban
forest manage~ent.
• Evaluate current and proposed use of recycled water for landscape
irrigation.
• Summarize findings (including where modifications I changes may be
required).
1.2 Department interviews
• Working with the project team, identify participants to interview, prepare
background information related to urban forest and tree management.
, Prep (id participants, prepare script).
• Summarize fmdings in the context of several questions. Who manages I
interacts with trees in Palo Alto? What conflicts exist between public
agencies with respect to tree management? What opportunities exist?
• Develo~p recommendations, using relevant examples, for improvement.
1.3 Public Tree Inventory
• Confer with the city's urban forestry staff to review the current tree
management effort, how the inventory is used, strengths and
weaknesses of the existing information, and any needed changes.
• Review current status of TreeKeeper. Evaluate and analyze results.
• Review plan for STRATUM I iTree Streets analysis of existing public
trees. Evaluate and analyze results.
• Review California Urban Forest Council Urban Forest Master Plan
Toolkit for ways to incorporate into Palo Alto's plan.
1.4 Preferred Tree Species list
• Evaluate existing list with reference to tolerance to drought & recycled
water.
• Modify existing list to reflect changes including expansion of criteria for
use.
• Prepare revised I expanded list.
1.5 Urban forest assessment
• Research methods to assess existing and historical tree canopy
coverage in Palo Alto.
• Research cost and requirements to undertake UFORE I iTree Eco
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analysis in Palo Alto.
• Summarize findings with a goal of providing a historical comparison of
existing tree
2. Create Urban 'Forest Sustainability t~ol for Palo Alto. .
• Assess the existing model in the context of Palo
Alto's specific situation. Identify current research and tools applicable to a
sustainable urban forest in Palo Alto suc~ as LEED programs, the Sustainable
'Sites Initiative, ~nd California's 20x2020 Water Conservation Plan.
Incorporate into the model. Discuss changes with City staff to assess
practicality .
• Create a revised model of urban forest su~tainability specific to the City
of Palo Alto~ Modify the model's criteria and performance indicators to
reflect the local conditions. Verify revisions with the project team.
• Test the Palo .Alto model to establish the current state of sustainability.
To the .extent possible, reflect on the process by which Palo Alto reached
this condition. Identify opportunities and constraints for enhancing urban forest
sustainability in the short-and long-tenn.
• Review findings with the project team. Revise model as needed.
Provide examples of the model's use in urban forest management (as
noted in the Project Deliverable section of the RFP).
• Provide the sustainability tool in a format that can be updated/modified
by the City 'qf Palo Alto.
3. Enhance Public and Private Tree Management
• Identify key issues with project team, based on the analysis of City-wide
policies and procedures.
• Project team to provide situations/topics where inter-department
protocols are needed.
• Develop draft protocols to address existing challenges.
• Review current draft of Public Tree Management Plan and current edition
. of Tree Technical Manual. Suggest new topics based on results from
Task # 1.1 and 1.2.
4. Public Outreach and Coordination
• Working with the project team, develop outreach strategy, identify
stakeholders and plan for meetings.
• Develop Fact Sheet(s) / Information Brochure(s) regarding managing a
sustainable urban forest. Possible target audiences include citizens,
institutionalland .. owners, retail nursery and garden centers, and the
development community.
• Consult with City's sustainability manager re: incorporating fmdings into
City policies & website.
• Create two web pages dedicated to the Urban Forest Management Plan
and regarding trees in Palo Alto in general (species, numbers, history, with
information on how community members can support it). .
• Prepare a template' and draft powerpoint presentation for the project
team's review.
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• Undertake two study sessions with the Palo Alto's City Council
5. Develop Urban Forest Master Plan
• Prepare a detailed sunimary of Palo Alto's Sustainable Urban Forest
model with criteria and performance indicators specific to the community
and practical in nature. The final model will be one that can be modified
over time, utilizing new information as well as results of management
decisions.
• IndentifY the sustainable urban forest "scorecard" as the monitoring model to
. be used by City departments and stakeholders with respect to urban forest
management. The scorecard serves as a tool for assessing how decisions
influence urban· forest sustainability.
• Finalize Preferred Species List.
• Incorporate the findings into a draft report to be enhanced by CirclePoint
who will: 1) translate/modify technical text to a
non-technical form, 2) standardize text with the City's Sustainability Plan, 3)
enhance plan layout and design and 4) copyedit the document.
• Incorporate cofrunents from the Palo Alto project team (prior to further
circulation).
• Incorporate comments from City departments, elected officials and other
stakeholders (distribution to be determined by project team).
• Finalize document. Provide an electronic copy in a format that can be used by
the City.
6. Manage the project
• Attend a kick-off meeting with project team.
• Attend progress meetings with City of Palo Alto team (10 over the courseof the
project).
• Conduct internal team meetings (4 over the course of project).
• Provide for internal management.
The model incorporates the project's objectives and deliverable in a direct and comprehensive
manner. At the end of the project, the City of Palo Alto will possess to well-founded, locally-
adapted tool to assess the current state of its urban forest, provide steps to move forward, and
allow re-assessment in the future.
Table 1:
c===. ________________ T_a~b~l~e~1~.C~r~it~e~ria~fo~r~a~S~u~s~ta~i~na~b~le~U~rb~a~n_F~o~~~s~t_. __________________ ~
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Vegetation Resource.
Canopy cover
Age -distribution of
trees
Species mix
Native vegetation
Community Framework
Public agency cooperation
Private and institutional
land owners
Green industry cooperation
Neighborhood action
Citizen -government -
business
General awareness of trees
Regional cooperation
Resource Management
City-wide management plan
City-wide Funding
City Staffing
Assessment Tools
Protection of Existing
Trees
Species and Site selection
Standards for Tree Care
Citizen Safety
Recycling
Achieve climate-appropriate tree cover,
community-wide.
Provide for uneven age distribution.
Provide for species diversity.
Maintain the biological integrity of
native remnant forests.
Maintain wildlife corridors to and from
the city.
Insure all city departments operate with
common goals and objectives.
Large private landholders embrace city-
wide goals and objectives through
specific resource management plans.
The green industry operates with high
professional standards and commits to
city-wide goals and objectives.
At the neighborhood level, citizens
understand and, participate in'urban
forest management.
All constituencies in the community
interact for the benefit of the urban
forest.
The general public understands the value
of trees to the community.
Provide for cooperation and interaction
among neighboring communities and
regional groups.
Develop and implement a management plan
for trees on public and private
property.
Develop and maintain adequate funding to
implement a city-wide management plan.
Employ and train adequate staff to
implement a city-wide management plan.
Develop methods to collect information
about the urban forest on a routine
basis.
Develop methods to collect information
about the urban forest on a routine
basis.
Provide guidelines and specifications
for species use, on a context-defined
basis.
Adopt and adhere to professional.
standards for tree care.
Maximize public safety with respect to
trees.
Create a closed system for tree waste.
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November 2010
D~c~mber 2010
January 2011
February 2011
March 2011
April 2011
May 2011
June 2011
July 2011
EXHIBIT·B
SCHEDULE OF PERFORMANCE
Project team assembles background documents.
Project team consults with City staff and elected leaders
regarding the proj~ct, interviews, protocol topics, web page
design, and study sessions. Project approved by Council.
Kick-off meeting (week of November 29).
Review documents. Priority to be determined by project
team. Develop survey draft. Prepare first inter,,:,
department protocol. Schedule interviews. Research
urban forest assessment information.
Conduct inter-department interviews (after January 12).
Use draft protocol as point of departure. ~ummarize
findings. Create list of recommendations including
protocol topics. In1tial review of Tree Technical Manual &
Public Tree Management Plan. Summarize analysis and
recommendations. Present draft sustain ability model for
project team review_ Review urban forest assessment
findings. Determine next steps.
First study session with Council. Review project and scope.
Discuss urban forest sustainability model and protocols.
Send protocols for inter~department review.
Present draft Urban Forest Management Plan to project
team for review. Includes Tree Species list.
Present revised draft Urban Forest Management Plan for
review. Present draft brochurel information sheet.
Finalize Urban Forest Management Plan.
Second study session with Counci1~ Present Plan.
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EXlHBIT "e"
COMPENSATION
The CITY agrees to compensate the CONSULTANT for professional services performed in
accordance with the terms and conditions of this Agreement, and completed to the reasonable
satisfaction of the CITY, as described in Exhibit A, Scope of Services, a fixed, not-to-exceed
price for professional services of One Hundred Fifty Nine Thousand Six Hundred Four
Dollars ($159,604.00). The budget is based on the following task costs:
·1. Compile policies and infomlation about Palo Alto's urban forest, leading to
. analysis of the current status, challenges and opportunities.
1.1 City Policies & Documents
1.2 Department interviews
1.3 Public Tree Inventory
1.4 Preferred Tree Species list
1.5 Urban forest assessment
2. Urban Forest Sustainability tool for Palo Alto.
3. Inter-department protocols for tree management.
4. Public Outreach and Coordination.
5. Utban Forest Master Plan.
6. Project management.
Sub-total, labor
Estimated expenses (10%)
Budget Total
$43,940
$ 7,520
$15,770
$33,530
$32,230
$21,640
$154,630
$4,974
$159,604
Fee of$1,200 per meeting is based on attendance by Jim Clark, project manager and lead
consultant.
CITY reserves tbe right, at its option, to move budgeted money from one task to
another Task, as the City's Project Manager deems necessary. CONSULTANT can
only reallocate Funds from one task to another upon receiving approval from City's Project
Manager.
CONSULTANT agrees to complete all Basic Services, including reimbursable expenses,
within this amount. Any work performed or expenses incurred for which payment would
result in a total exceeding the maximum amount of compensation set forth herein shall be at
no cost to the CITY.
Reimbursables
Reimbursables shall include, but are not limited to, the cost of copying plans, outreach
materials, postage, signage or other items not included herein. Travel, computer and phone
charges shall be considered as included in the CONSULTANT overhead costs. Any needed
office ~paces or related supplies shall be provided by CONSULTANT and shall be considered
to be included in the Scope of Services above.
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EXHIBIT "e .. l"
ScliEDULE OF RATES
The following hourly rates are effective through December 31,2010 and subject to
escalation in January 2011.
FIRM
HortScience, Inc.
CirclePoint
POSITION
Professionals
Principal
Consultant
Arborist
Technician
Clerk
Principal
Senior Project Manager
Project Manager
Senior Associate
Associate
Assistant/Coordinator
Clerical
Creative & supportive services
Creative Service Director
Art Director
Senior Graphic Designer
Graphic Designer
CopywriterlEditor
IT Director
IT Support
Accounting M'anager
Accounting Clerk
Related Services & Reimbursables
Copies In House $0.10 per page
HOURLY RATES
$165
$140
$85
$85
$40
$240
$180
$140
$120
$95
$75
$60
$200
$150
$85
$70
$100
$175
$75
$130
$70
Color Prints/Transparencies
Duplication -
In House $1.50 .. $1.75 per copy
Outsourced at cost
Faxes
Postage at cost
Phone at cost
Mileage Per IRS Allowable
Vendor & Sub-consultant Services
$0.60 per page
10% mark up for administration
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EXHIBIT "D"
INSURANCE REQUIREMENTS
CONTRACTORS TO THE CITY OF PALO ALTO (CITy). AT THEIR SOLE EXPENSE, SHALL FOR THBTERM OF THECONTRAcr OBTAIN
AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECiFIED BELOW. AFFORDKD BY COMPANIES WITIIAM
. BEST'S KEY RATING OF A~:VII. OR H1GHER. LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE
STATE OF CALIFORNIA. .
AWARD IS CONTINGENT ON COMPLIANCE WITH CITY'S INSURANCE REQUIREMENTS AS SPECIFIED BELOW' . .
MINIMUM LIMITS
REQUIRED TYPE OF COVERAGE REQUIREMENT EACH
YES
YES
YES
YES
NO
YES
OCCURRENCE AGGREGATE
WORKER'S COMPENSATION STATUTORY
EMPLOYER'S LlABlLlTY STATUTORY
BODILY INJURY $1.000,000 $1,000,000
GENERAL LIABILITY, IN~Lt:JDINO
PERSONAL INJURY. BROAD FORM PROPERTY DAMAGE $1,000,000 $1,000,000
PROPERTY DAMAGE BLANKET
CONTRACfUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY DAMAGE $1,000,000 $1,000,000
LIABH..ITY COMBlNED.
BODILY INJURY $1.000.000 $1,000,000 -EACH PERSON $1,000,000 $1,000,000 -EACH OCCURRENCE $1,000,000 $1,000,000
AUTOMOBll..E LlABILITY. INCLUDING
ALL OWNED. HIRED, NON-OWNED PROPERTY DAMAGE $1,000,000 $1,000.000
BODILY INJURY AND PROPERTY $1,000.000 $1,000,000
DAMAGE, COMBINED
PROFESSIONAL LIABILITY, INCLUDlNO,
ERRORS AND OMfSSIONS.
MALPRACTICE (WHEN APPLICABLE),
AND NEGLIGENT PERFORMANCB ALL DAMAGES $1.000,000
THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE,
SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND BFFECfTHROUOHOUTTHE ENTlRETERMOF ANY RESULTANT AGREEMENT.
THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY. BUT
ALSO, WITH TIlE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONALlNSURANCE~NAMING
AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
1. 1NSURANCE 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 LIAB1LITY ENDORSEMENT PROV1DING INSURANCE COVERAGE FOR
CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY.
C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR APPRO V AL.
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 COYERAGE
WITH RESPECT TO CLA1MS ARISING OUT OF THE OPERATIONS OF THE NAMED INSUREDt INSURANCE AS
AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTlNG 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
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ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS. SHALL NOT INCREASE THE TOT AI.. 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, 1lIE 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 EFFECTNE DATE OF CANCELLATION.
NOTICES SHALL BE MAILED TO:
PURCHASING AND CONTRACT ADMINISTRATION
CITY OF PALO ALTO
P.O. BOX 10250
PALO ALTO, CA 94303
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Journal of Arboriculture 23(1 ): January 1997 Attachment B11
A MODEL OF URBAN FOREST. SUSTAINABILITY
by James R. Clark, Nelda P. Matheny, Genni Cross and Victoria Wake
Ab8tract. We present a model for the development of
sustainable urban forests. The model applies general
princlple8 of 8ustainablllty to urban tre9S and forests. The
central tenet of the model is that sustainable urban forests
require a heallhy tree and forest resouroe, community-wide
support and a comprehensive management approach. For
eaoh of these components, we present criteria and Indloators
for assessing their status at a given point in time. The most
sfgnlflcant outoome of a sustainable urban forest fs to maintain
a maximum level of net environmental. ecological, 80clal. and
economic benefits over time.
Creation and management of urban forests to
achieve sustalnabitfty is the long .. term goal of urban
foresters. The notion of' sustainability in urban
forests is po.orly defined In both scope and
application. Indeed, the question of how to define
eustainabillty, and even whether it oan be defined,
is an open one (9, 12). At a simple leve), "a
sustainable system Is on'8 which survives or
persists" (5). In the context of urban forests, such
a system would have continuity over time In a way
that provides maximum benefits from the
functioning of that forest.
Since there is no defined end point for
sustalnabillty, we assess sustainabHity by looking
backwards, in a comparative manner (5). In urban'
forests, we measure the number of trees removed
against those replanted or regenerated naturally.
In so doing, we assess progress towards a system
that "survives or persists." Therefore, our Ideas of
sustainability are "really predictions about the
future or about systems •.. (5)." .
This paper presents a working model of
sustainabllity for urban forests. We describe
,specific criteria that can ~e used to evaluate
sustainabifity, as wen as measurable indicators that
allow ·assessment of those oriteria. In so doing,
we accept sustainabillty as a process rather than
a goal. As suggested by Kaufmann and Cleveland
(12) and Goodland (5), we consider social and
economic factors as well as natural science.
Goodland believed that "general sustainabllity will
come to be based on all three aspects" (social,
economic and environmental), Maser (14)
described sustaf~abi'ity as the "overlap between
what is ecologically possible and what is Socjetally
desired by the cur~ent generation", recognizing that
both will change over time.
Therefore, our approach Integrates the resource
(forests and their component trees). with the people
who benefit from them. In so dOing, we
acknowledge the complexity of both the resource
itself and the m.anagement programs that influence
it. We also .recognlze that communities will vary In
both the ecologioal possibilities and societal
desires.
Defining SU8talna~I.llty
In developing a model of susta1nable urban .
forests, we first examined how other sustainable
systems were defined and described. Although
we have concentrated on forest systems, other
examples were considered. While some prinCiples.
of sustainable systems were directly applicable to
urban forests, others require modification or were
in conflict with the nature of urban forests and
forestry. .
T~e Brundtland Commission Report (21) has
g~merally setved as the starting point for disQu8sion
about sustainable syatems. It defined sustainable
forestry as:
"Sustainable fores.try means manag.ing our
forests to meet the n~eds of the present without
compromising the ability of future .generatlons to
meet their own needs by practicing a land
stewardShip ethic which . Integrates the growing,
nurturing and harvesting of trees for useful
products with the 9Qnservatlon of soli, air. and
waterqualily, and wildlife and.flsh habltat.1t
Both Webster (22) and Wiersum (23) examined
this deflnitiQn from the perspective of forest
management. They recognized that issues of what
is to be sustained and how sustainability Is to be
implemented are unresolved. Wiersum ( 23)
acknowledged the historical focus on sustaining
yield and Its recent broadening to sustainable
management. Webster (22) suggested a need for
focus on the issue of scale: the size of the area or
space to be Included.
Further refinements in the Brundtland
Commission's definition of sustainability were
made by Salwasser (16) and Sample (17).
Salw8sser (16) described sustainability as:
"Sustainabllfty means the ability to produce andl
or malrita,ln '8 desired set of cQnditions or things
f.or some time into the future, not necessarily
forever." .
Salwasser (16) included environmental,
economic and community' based components,
acknowledging that sustainability is not simply a
resource maHer. He also stressed that the goals
and objectiv~s for forest' management cannot
exceed the biological capacity of the resource, now
and Into the future.
Sample (17) focused more closely on forest
management, emphasizing' the need for shared
vision among diverse property owners. hi a
workshop on ecosystem management, Sample
described sustainable forestry as:
"Management and p ractioes which are
sln'l'ulta"neously environmentally sound,
eoonomlca1ly viable and soolally responsible!'
Some defi'nitions of sustainable forests are not '
directly applicable to urban settings. For example,
the description presented at the conference on
~ustainable' Forestry (18) included comments
aboUt capacity for self· renewal. Since regeneration
of urban forests must occur in a directed. location ..
specific manner, use of such a definition is
inappropriate.
'Other definitions consider ,the goal of
sustainable forests in a manner inconsistent with
our conCept of urban forests. Thompson st al. (20)
described sustalnability as "programs that yield
"desired environmental and eoonomic benefits
wlth'out wasteful, Inefficient design and practices. tJ
While these authors were interested in urban
settings, their approach was limited to municipal
forestry programs rather than city-wide processes
or results. Dehgf et al. (6) focused on California's
native Monterey pine forest and restricted their
definition of sustainability to that system.
Clark at al.: Urban Forest Sustalnability,
Moreover, their interest was limited to sustaining
the "natural dynamic genetic process." In another:
approach, the American Forest and Paper
Association's Sustainable Forestry Initiative (1) is
largely aimed ,at Industrial forest practice and
products. This focus on industrial forestry seems
largely incompatible with urban environments.
Given the examples noted above, the role of
humans in sustainable systems (including fore~ts)
is generally accepted. However, Botkin and Talbot
(2) (as criticized by Webster)' argued that
sustainable develop'ment of tropical forests
requires non"disturbance by humans. Again, thf$
idea is incompatible with urban forests.
Applying Concepts of Sustainable Foreata to
Urban Forests
In moving the concepts of sustainable
development of forests towards implementation
and practice. Webster (22) raised several
significant questions. We have considered thes~
questions from the urban forest perspective:
What objects1 conditions, and values are to be '
sustained?
In urban areas, we focus on sustaining net
benefits of trees and forests at the broadest level.
We are sustaining environmental quality, resource
conservation, economic development,
psychological health, wildlife habitat, and social
welll"being.
What is the range of forest activities tnst
contribute to sustainable development?
Simply put, urbanforestsrequira a broad set
of activities,. from management of both single trees
and large stands to education of the oommunlty
about urban forests and development of
comprehensive 'management plans.
What Is the, geographic scsle at which
sustainable -development can be most usefully
applied?
Political borders do n01 respect biology (and
vice versa). Principles of ecosystem management
argue for a scale based on ecological boundaries
such as watersheds. However, cities form disorete
pOlitical, economic and SOCial units. We must
respect the reanty that political borders may be
more significant to management than ecological
boundaries. Urban forestry programs work within
JotJrnal"of Arboriculture 23(1): January 1997
this geographical framework.
For this projeot and model, we have chosen to
focus on the city and Its geographic limits. While
this'approac~ may vlo1ate some of the biological
realities of forest stands, It logically reflects the
jurisdiotional boundaries and typical management
units found in cities. The more common alternative
approach, working with ecosystems, is not without
problems of definition and scale (7).
What is the relationship 'of sustainable
development for (urban forests) to new technology;
effectively applied research and Investment in
forest management?
Urban forests stand to benefit tremendously
from new technology, information and investment.
Not only wlll 'the ability to ,select and grow trees in
cities be enhanced, but the ability to quantify the
benefits accrued by their presence will expand. ,
Wiersum (23) provided an In-depth look at
sustainability in forest systems, noting the long
hist6ry of the concept in forest practice. Many
_ would argue that the concept of sustained yield Is
not equivalent to sustainable development. Gatto
"(9) discusses this fact at length. However, Wiersum
(23) observed the evolution of forest sustain ability
, towards multiple use, biological diversity, mitigating
climate change and socioeconomic dimensions.
Wiersum summarized four concepts involved with
sustainable forest management as maintenanoe
or sustenance of:
• forest eoological oharacteristlcs
• yields of useful forest products and
services for human benefit
• human Institutions that are forest-
dependent
• human Institutions that ensure forests are
proteoted against negative external
institutions.
A similar perspective on s·ustainable forest
management (13) described the measurable
criteria as:
• desired ,future condition (the vision of the
forest In the future)
• sustained yield
• ecosystem maintenance
• community (city) stability
. 19
Keene (13) also noted that these prinCiples can
be practiced in traditional forest management.
Products derived from forests in which sustainable
forest management is practioed may reoeive a
third-party certification as such, In a manner similar
to certification of organioally-grown produce.
Maser, (14), Wiersum (23) and Charles (4) all
argued that a sustainable forest would include
biological, ,social' and economio issues. For
example, from' the perspective of a fishery
resource, sustainabllity is the simultaneous pursuit
of ,ecological, socioeconomic, community an.d
instItutional g08Is'(4). In Maser's view of ecological
sustainabillty, the goals and needs of society must
reffect the potential of the resource to meet them.
This idea may be universal for sustainable
development and must certainly be for urban
forests.
, This approach can' be directly applied to Cities,
for we, want urban forests to contribute to
environmental, economic ~nd social well .. belng.
We need notsaorlfice one goal in pursuit of
another. Trees reduce atmospheric contaminants
at the same· time that they enhance community
well·belng. While there may be conflicts in specific
situations (eg. planting trees under utility lines or
using invasive species), in general, all of the broad
goals for urban forest 8ustainability are compatible
with the others. ' In this sense, when we focus on
appropriate management of trees and urban
forests, where management activities take place
with communlty .. supported goals and objectives,
we focus on sustaining a broad range of values.
We also concur with Charles' (4) oonclusion
tha~ sustainabUity can only ~e achieved when:
• Contrails looal (for fisheries, community
and region-wide)
• Management Is adaptive, recognizing the
dynamic resource and its complexity
• Property rights are respected
In summary, a wide range of definitions for
sustainable development have been derived from
the original concept of the Brundtland Commission.
No universally accepted derivation has arisen for
forestry. Despite this problem, progress has been
made in identifying criteria and markers for
success.
20
Characteristics of Urban Forest
Suetainability
Given the general characteristics of sustainable
.systems and the specUic nature of urban forests,
wetdentlfled 4 principles to which any model of
sustainability mu~t adhere.
. 1. SUltalnablllty Is a broad, general goal.
While we .may be able to describe the desired
functlons.of a sustainable urban forest, we cannot
yet design the forest to optimize them. A1though we know ti')at urban forests act to reduce
atmospheric' contaminants, we do not yet know
how. t~: design those forests to maximize that
funetlo·n. However, we accept that existing urban
forest~ provide these functions to some degree.
Trees in citi~s serve to improve community well·
being, rep~ce the urban heat island, eliminate
contaminants from the atmosphere, etc. While
there are costs involved tn planting, maintaining
and removing trees in cities, In a sustainable urban
forest the net bens'flts provided by these functions
are gr~ater than the costs associated with caring
for the forest; A sustainable urban forest provides
con~nultY of these net benefits over tir,ne and
th~ugh space. We therefore have decl«;jed to
recognize the ge.neral character of sustainable
sY$tems and develop steps that form such a
system in urban areas.
2. ',Urban foreats primarily provide services
rather than goods. Descriptions of sustainable'
systems usually focus on the goods that system
provides.le. sustained yield. Forests' provide fuel
and fiber, agronomic systems provide food and
flber,fishQrles provide food, etc. In such examples,
goods. are the primary output.
In contr~stJ goods comprise a rather limited
output of 'the urban forests. The most Important
outputs are services, such as reducing
environmental contamination (from removing
atmospheric gases to moderating storm water
runoff), improving water quality, reducing energy
consumption, providing social and psychological
well-being, providing for wildlife habitat, etc. These
services, or benefits, are provided in two ways: 1)
direct (shading an individual home, raising the
value 'of a residential property) and 2) indirect
(enhancIng the wen .. belng of community residents).
In planting and maintaining SUstainable urban
Clark at a1.: Urban Forest Sustainabllity
forests, we should strive for a balance among all
benefl.s and not maximize the output of one
service at the expense of all others. For example,
one of the benefits that urban forests provlde is
wildlife habitat. Maintaining the largest wildlife
habitat possible could conflict with other servloes,
such as limiting eoonomio development fro.m
property development or creating oonfllots with
humans. .
3. S~stalnable urban foreats require human
lrit.rvention. One of the wonderful characteristics
of natural systems is. their oapacity for self~'
maintenance. Sustainable forests, farms and
fisheries take advantage. of this fact by harvesting
some limited segment of the resource. often with
a 'period of .rest to allow renewal and replacement. .
The Brundtland Commission Report (21), Maser
(14) and Charles (4) emphasized this critiQal
aspect of the resource to be sustained. For
example, Goodland (10) defined environmental
sustalnability as "maintenance of natural capital."
Maser noted that a biologically sustainable forest
is the foundation for all other aspects of a
~ustainable system. In forestry, there can be no
sustainable yield, sustainable industry. sustainable
community or sustainable society without a
biologically sustainable resource. As Charles put
it (for fisheries), '.'If the resource goes extinct,
nothing else matters.1t
Many (but not all) urban forests are a mosaic
of native forest remnants and planted trees. The
native remnants may have soma capacity for self-
renewal and maintenance. particularly in
greenbelts and other intact stands. However, the
planted trees have essentially no ability' to
regenerate In place. Therefore. we must accept,
acknowledge and act on the fact that urban forests
(particularly In the United States) may have a
II mited ability to retain or replace biological capital
(to use· Maser's term). This is particularly the case
when we desire that regeneration occur in a
manner appropriate for human benefits. Indeed,
unwanted tree reproduction may actually have a
net cost for control and eradication programs.
Sustainable urban forests cannot be separated
from the activities of humans. Such activity can
be both positive an~ negative. In the latter case,
creation and maintenance of urban Infrastructure
Journal of Arboriculture 23(1): January 1997
can be extremely destruotive and disruptive. In
essenoe, we supel'lmpose cities atop forests. The
greater the Imposition, the tess natural the forests
appear and f.unotlon (D. Nqwak, personal
oommunicatlon) ..
The adverse impacts of humans can be
mitigated by positive actions such as planning,
planting, and management; all occurring with
com mol') commitment and shared vision. We
cannot separate sustainable urban forests from
the people who live In and ,around them. In fact,
we want to .meld the two as muoh as possible.
The implioations of this princlpl.e are far ..
reaching. Flrst~ urban 10rests require active,
consistent, continuing management. The accrual
of net benefIts can only occur when adequate and
reasonable care Is provided. Second, tree
managers (both public and private) must involve
the surrounding community in decisions and
actions, regarding urban forests. We do not
suggest abdicating responsibility on the part of tree
managers; we' advocate sharing It.
4. Trees growing on private lands compose
the majority of urban forests. While publicly ..
owned'trees (prhnarlly In parks and along streets
and other rights~of-way) have been the long-
standing foous of urban forestry, they oomprise
only a portion of the urban forest. An estimated
60 -90% 01 the trees In urban forests in the United
States are found on privately owned land (see 19;
also G. MoPherson, pars •. communication).
Therefore, sustainable urban forests depend to a
large degree .on susta,inable private forests.
If we con'sider further that trees probably are
not .evenly distributed among all private land ..
holders, then we may also conclude that a small
number of land owners and managers may be
responsible for a large fraction of urban trees. For
example, universities, business parns, corporate
campuses, commercial real estate, autonomous
semi~pubtic agenoies. utilities, ate. may manage
large numbers of trees. The success of any effort
at sustainability must include their participation and
commitment.
However, small private landholdings,
particularly residential properties, may also
constitute a signtflcant fraction of community trees.
Their contribution to the urban forest must be
21
considered in any effort towards sustalnability.
Defining Sustainable Urban Forests.
Applying these 4 principles leads to the following
definition of a sustainable urban forest:
"The naturally QCcurring and planted trees In
cities which are managed to provide the inhabitants
with a continuing level 'of economic, social,
environmental and ecological benefits today and
Into the fut~re:'
Applying this definition in urban areas requires
accepting 3 ideas:
1. Communities must acknowledge that,clty
trees provide a,wlde range of net benefits.
Plantingfpreservlng and maintaining trees is
neither simply a good thing nor an exercise.
Rather, urban forests are essential to the current
and future health of cities and their inhabitants.
2. Given the goal of maintaining net benefits
over time, the regeneration of urban forests
requires Intervention and management by
humans. To quote David Nowak, "people want
and need to direct the renewal prooess because
natural regeneration does not meet most urban
needs:' Therefore, urban forests cannot be
sustained by nature, but by people.
3. Sustainable urban forests exist within
defined geographic and political boundaries:
those of cities. Moreover, sustainable urban
forests are composed of all trees in the community,
regardless of ownership.
A Model of Urban Forest Sustainability
Given the 3 premises listed above. we
developed a model of urban forest sustalnabillty
whioh is founded on three components: 1)
vegetation resource~ 2) a strong community
framework and 3) appropriate management of the
resource. Within each component are a number
of speclfio criteria for sustainability (see Tables 1,
2 and 3).
1. Vegetation resou ree. The vegetation
resource is the engine that drives urban forests.
Its composition, extent, distribution, and health
define the limit of benefits provided and costs
accrued. As dynamic organisms, urban forests
(and the trees that form them)' ohange over time
as they grow, mature and die. Therefore,
sustainable urban forests must possess a mix of
Journal of Arborjculture 23(1): January 1997 23
Table 2. Criteria of urban forest 8ustainablllty for the ComMunity Framework.
Public agency
cooperation
Involvement of large '
private and
institutional
I~ndholders
Green industry
cooperation
Insure aU oity
departments operate
with common goals and
objectlv~s.
Departments such as parks, public works, fl re,
planning; school districts and (public) uUiitles
should operate with common goals and objectives
regarding the city's trees. Achieving this
cooperation, requi res involvement of the city
council and city commissions.
Large private" Private landholders own and manage most of the
landholders embrace city urban forest. Their interest in, and adherence to,
wide goals and resource management plans is most likely to
.obJectlves thro~gh result from a co'mmunity .. wide understanding and
, specific resource valuing of the urb~n forest. In aU Iikelihood1 their
management plans. their cooperation and Involvement cannot be
mandated.
The green Industry From commercial growers to garden centers and
operates with high from landscape contractors to engineering
professional standards ' professionalsl the green lndustry has a
and commits to CitY .. wide tremendous Impact on the health of a clty's urban
goals and ' forest. The commitment of eaoh' segment
objectives. of this industry to high professional standards and
their support for cIty-wide goals and objectives is
necessary to ensure appropriate planning and
implementation.
Neighborhood Action At the neighborhood Neighborhoods are the building blocks of cities.
They are often the arena where individuals feel
their actions oan ma~e the biggest differenoe in
their quality of life. Since the many urban trees
are on paivate 'property (residential or
commercial). neighborhood action is a key to
level, citlzens '
understand' and
participate In urban
forest management.
Citizen -government':' All constituencies in the
business interaction community interact for
the benefit of the utban
forest
urban forest sustal n ability . .
Having public agenoles, private landholders, the
green industry and neighbo.rhood groups aU share
the same vision of the City's urban forest is a
crucial part of sustalnability. This condition is not
likely to re'sult from legislation. It wUl only
result from a shared understanding of the urban
torast1s value to the community and commitment
to dialogue and cooperation among the,
stakeholders. '
24 Clark at at: Urban Forest SustainabiUty
Table 2. Criteria of urban forest sustainability for the Community Framework (continued)
General awareness of The general public Fundamental to the' sustalnablUty of a city's urban
trees as a com'm~:nity understands the value of forest 1s the general publlc's understandIng of the
resource' . , trees to the community. value of its trees. People who value trees elect
officials who value trees. In tum, officials who
value trees are more likely
to require the ageno~es they oversee to maintain
high standards for management and provide
adequate funds for implementation.
Regional cooperation Provide for cooperation Urban forests do not recognize geographic
and interaction among boundaries •. Linking city's efforts to th.ose of
neighboring communities' ne\ghborhig communIties allows for conSideration .
and regional groups. and action on larger geographic and ecologIcal
issues (SUch as water·quality and air quality).
and social weU .. being. , .
There are costs associated with the accrual of
these benef"lts. Dead, dying' and defective trees
may fail and In)l:Are c.itizens or damage property.
Some speci~,$. may pose a health risk from
allergenic responses. b~hers may compete with
native vegetation and limit the function of naturally
occurring fragments and systems.
2.Commu.nlty 'framework. A sustainable
urban forest Is one in whieh the all parts of the
community sh~(e a.vlslon for their forest and act
to realize that yislQn throlJgh specifiC? goats and
objectives (Table 2). It Is based in neighborhoods,
public spaces. and priVate lan~s;. .
At one level. this requlr~$ .that a community
agree on ttie benefits of trees and act to maximize
them. On an~ther level,' thl~. cooperation requires
that private lando~ners acknowledge the key role
of their trees to community. health. Finany, In an
era of reduced government service, cooperation
means shariIJ9 the flnane.lal, burden of caring for
, the urban landscape~ :
3. Resource management. In many ways,
this component Is n01 simply management of the
resource but the philosophy of management as
weH (Table 3). On one hand, specific poney
vehicles to protect existing trees, manage species
selec'tion, tr.ain staff and apply standards of care
focus on .the tree resource itself. In contrast,
acceptance of a comprehensive management plan
and funding program by city government and its
constituents allows shared vision to develop.
Cities must recogn ize that management
approaches will vary as a function of the resource
and its extent. A goal of maint~inlng native wildlife
hablta~ . ~ay best be achieved. where there is a
strong native forest resource. For some cities, this
is simply not attalnab~e. Similarly, management
of the urban forest must exist in connection to the
larger landscape (such as adjacent forests). For
example, maintenance of intact riparian corridors
requires the cooperation of the managing agency
of the stream.
Achlevi.,.g. Sustainable Urban Forests. A
sustaInable urban .forest Is founded upon
communlW cooperation, quality care, continued
funding and personal involvement. It is created
and maintained th rough shared Vision and
cooperation with an ever-present focus on
maximIzing benefits and minimizing costs. Taken
together, they acknowledge the need fQr shared
vision and responsibility, for direct Intervention with
the resource and for programs of oare that are
on-going and respons1ve. The implementation of
Journal of Arboriculture 23(1); January 1997
Table 3. Criteria of urban forest sustainability for Resource Management.
City .. wide n:tsnagement Develop 81}d Implement A Gity-wide manage'ment plan will add to an urban
forest's sustainablllty by addressing Important
Issues and creating a shared vision for the futu re
of the community's urban forest. Elements may
Include: speoles and planting
plan, a management plan for'
trees ~n public and
private\ property.
Funding
Staffing
Assessment tools
Develop and maintain
adequate funding to
Implement a city-wide
management plan.
Employ and train
adequate staff to
implement a city-wide
r:nanagement plan.
guidelines; performance goals and standards for
tree care; requirements for new development
(tree preservation and planning); and
specifications for managing natural and open
space areas.
Since urban forests exist on both public and
private land. funding must be both public and
private. The amount of funding available from
both sources is often a reflection of the level of
education and awareness within a community
for the value of Its urban forest.
An urban forest's sustainability is Increased when
all city tree staffs utility and commercial tree
workers and arborlsts are adequately trained.
Cont1nulng education In addition to initial
minimum skills andlor certifications desirable.
Develop methods to l)slng canopy cover assessment, tree inventories,
coUeet Information apout aerial mapping. geographic Information systems
the u'rban forest on a and other tools, It Is possible to monitor trends in
rouUne basis. a city's urban forest resource over time.
Pr~tection of existing Conserve 'existing Protection of ~xlstlng trees and replacement of
those that are removed is most often
acoomp~;shed through polloy veh"loles.
Ordinances that specify pruning standards and/or
plaCe restrictions on the removal' of large
trees resources, planted and
natural, to ensure
maximum function.
Species andsita
selection
or other types of trees on publlo and private
property and during development are examples.
Provide guidelines and Providing good planting sites and appropriate
specifications for species trees to flU them ,is crucial to sustalnabUity.
use. on a context-Ailowlng adequate space for trees to grow and
defined basis. selecting trees that a~e compatible with the site
will reduoe the long-and short .. term
_ maintenance requirements and enhance their
longevity. AvoldJng speoies known to cause
allergenic responses Is also important In some
areas,
25 '
26, Clark et al.: Urban, Forest SustalnablUty:
Table 3. Criteria of urban foreat austainabillty for ~e8QUrc. Management (cO~tl~U8d)
Standards for tre, care Adopt and adhere ,to SustainablUty will be enhanced by adhering to the
professional standards such as the Tree Pruning
G~ldellnes (ISA) and ANSI ZiSS publications.
, profess/onal standards
for tree care.
Citizen safety
Recycling
Maximize public safety
'with respeot to trees .. ,
,In designing parks and other public spaces, public
safety should be a key factor in placement,
sleleotion, and management of trees. Regular
inspeotions for potential tree hazards is an
Important element In the management program.
Create a closed system A sustainable urban forest fs one that recycles Its
for tree waste. products by compoStlng, reusing chips as mulch
and/or fuel and ushig wood products as firewood
and lumber.
Table 4. Criteria and perf~rmance Indlqator8 for the Vegetation Resource.
Criteria
Canopy cover
Performance Indicators
LoW Moderate Good
No assessment Visuai assessment Sampling of tree
(I.e. photographic) cover using aerial
photographs.
Key Objective
Optimal
Information on Achieve cllmate.appropriate degree of tree
urban forests cover, community-wide.
Inc! uded In city-
wide geographic
Infonnatlon
system (GIS).
Age';. distribution of trees No a~G&Sm8nt
In community
Street tree
"InventorY
(complete or'
public -private Included In city· Provide for uneven age distribution.
S8!11ple)
Species mix ' No assessment Strsettree
Inventory
Native vegetatIon No program of Voluntary use on
Integration publlo projects
sampling wide geographJo
Clty·wlde
assessment of,
specIes mIx
Aequlrements for
use of native
species on a
proJect-
appropriate basis
Inronnatlon
system (GIS).
Included In clly~
wide geographic
'n'tannatlon
system (GIS),
Pres81V8lton of
regIonal
biodiversity
ProvIde for speCies diversity.
Presorve and manage regional biodiversity.
Maintain the blologlcallntegrtty Qf native .
remant forests. Maintain wildlife oorridors to
and from the city.
journal of Arboriculture 23(1): January 1997 27
, Table 5. Criteria and performance indicators for the Community Framework. '
Criteria
Public agancy
cooperation
Involvement of large
privata and Institutional
.and hold.r.
Oreen industry
cooperation
NeIghborhood action
Oltlzen .. governm,nt •
bu',iness Interacllon
Gerie,al awaltinell of
trees as community
resource
Regional cooperation
low
Conntotfng goals
among
departments
Ignorance of Issue
No cooperation
among'segments
of Industry
(nursery.
contractor.
arborlst). No
adherence 10
Industry
standards,
No action
Conflicting goals
among
constituencIes' ,
Low •• trees as
problems; a drain
on budgets
Communities
operate
independently
Performance Indicators Key Objective
Moderate
No cooperation
Education
materials and
advice available
to landMholdel'6
' General
cooperation
among nurseries -
contractors ~
arborists. eto.
Isolated and/or
limIted no. of
active groups
No InteraGtlon
among
constituencies
Mod8~le .-trees
as Important to
community
Communities
share similar
polioy vehicles
Good Optimal
Informal working Formal working Insure all Oily departments operate with
teams teams wI staff common goalS and objectives.
coordination
Clear goall for land·holden; Large private landholders embrace olty-wlde
tree resource by develop, goals and objectives through speclfio
private land· oompr.,henslve resource management plans.
hOlders; Incentives treG management
for preservatIon of
private trees
SpaclHc
oooperative
arrangements
such es purchase
oortlflcates for
right tree, right
place
Clty-wlde
ooverage and
Interaction
Informal end lor
general
cooperation
High ··trees
acknowledged to
provide
environmental
services
plans (1noludlng
funding)
Shared vision and The green,lndustry oper~tes With high
goals Including the professlonal6landards and commits to city..
use of wide goals and objectives.
professional
' standards.
All neighborhooos At the neighborhood level. citizens
organized and ul)der.iitan,d and participate in urban forest
oooperatlng mUf!8Qement.
Formal AU constituencies in the community lntemct
interaCtion. e.g.. forthe benefit ofthe urban forest.
tree board wi &taff
(loordlnatlon
Very high .. trees Tho general publlo understands the value of
, as vital trees to, the community.
components of
economy and
environment
RegIonal pfanning Regional pJanning Provide for cooperation and InteraCtion
coordination among neighboring commun1Ues and
'~nd/or , ' regional groups.
management
plans
a model for urban forest sustainabllity wou1d further
redirect the traditional orientation of urban forest
management away from" municipal trees to the mix
of public and private trees.
in this task, we have described indicators of
success for each criteria (Tables 4, 5, and 6). A
city that meets the highest level of each,indicator
for each criteria would have the best tools and
resources to achieve,sustainabillty. Achieving sustainabllity for urban forests
involves,meeting each of these criteria. To assist , Our approach ,of developing' criteria and
28 Clark et al.: Urban Forest Sustainability
Table 6. Criteria and performance Indicators for Resource Management.
Criteria Performance indicators Key Objective
Low ~oderate Good. . Optimal
City-wide management
'plan
No plao Existing plan
limited In scope , and
Govemment -wide Cllizen -Develop and implement a management plan
plan, accePted government -for trees and forests on public and pl1vate
and implemented business resource property.
I mplamentatlon management plan,
accepted and
Implemented
CIty-wide funding Funding by crisis Funding to Ad~quale funding Adequate funding. Develop and maIntain adequale funding to
management optimlte existing to provide for net prIvate and public. Implement a clly-wlde management plan.
population Incress. 10 to sustain
pop\llatlon and maximum
care potential benefits
Cltystafflng No staff No traIning ',Certified arborlsts Professional tree Employ and train adequate staff to
on staff care staff Implement city-wide management plan.
Assessl1lent tool8 No on-going Paltlallnventory Complete Information on Develop metllods to collect InformatlDn
program of Inventory' urban forests about the urban forest on 8 routfCl8 basis,
aSS9ssment
;ndlcators is patterned after that found in the
Santiago Agreement (11) which suggested ,criteria
and indicators for the conservation and
sustainability of temperate and boreal fore$ts. It
recognlied that both quantitative and qualitative
(descriptive) tndicators were needed, for not all
oriteria could be accurately measured.
Conclusions·
Maser suggested that ecological susta,inability
encompasses 4 ideals:
1. Providing a long-term balance between
~oCiety and the resource, today and in the
fu~ure. ' .
2. Seeking to Increase the overlap between
societal desires and ecological
possibilities.
3. Developing assessment tools for both the
resource and its outputs (bene,its,
services).
4. Restoring ecosystems.
Our model for urban forest ·sustainabUity
adheres to these 4 ideals, placing them in an urban
Included In CII~~
wide GIS
conte~. It recognizes the nature of society In cities
and encourages particip$tion at the broadest level.
The model also acknowledges the need to foster
regeneration, to provide for the continuity of the
resource., Management of a sustainable urban
forest ·Is based upon a shared viSion for the
resource, in which goals and needs are balanced.
Since sustainabillty is a general goal, we must be
able to· ass~ss our progress rel~tive to defined
standards .. Finally, we recognize that our actions,
through such activities as development, wilt
damage forests and their function. We accept the
responsibility of restoration.
Urban .trees 'and forests are oonsldered Integral
to the sustainability of cities as a whole (3, 8). Yet.
sustainable urban forests are not born, they are
made. They do not arise at random, but result
from' a community"wide commitment to theIr
creation and management.
Obtaining the commitment of a broad
community, of . numerous .constituencies, cannot
be dlotated' or legislated. It must arise out of
compromise and respect. While policy vehicles
such as ordinances playa role in managing the
Journal of Atboriculture 23(1): January 1997 29
Table .6. Criteria and' performance Indicator. for Resource Management (continued)
. Protection of 8xlstlng
treea
No policy vehicle Tree preservation TreG preservation InteQrated Conserve existing resources. planted and
or policy not ordinance present plan required for planning program natural. to ensure maximum function.
enforced and enforced all fOT conservation
. . proJects .... publlc, and development
private,
commercial.
residential
Species and site selection Amitrary species No consl(.leratlon Identlfleatlon/prohl On-going use of Provld$ guidelines and specifications for
adapted. hlgh~ specIes usa, IncludIng 8 mechanIsm for prohlbrtlons of undesirable bltion of
species undesirable . petfonnlng evaluallng the site,
species species with good .
site· spedes
'. ma.tch
Standards for .tre8 care None Standards for Standards for Standards pa rt of Adopt and adhere to professional standards
public trse care pruning, stock, community -wide (or tree care.
etc. for all trees ylslon
Citizen aafety CrisiS Informal Comprehenstve Safety part of cost MaxlmilB public safety with respect to trees.
management Inspections hazard (failure, -benefit program
tripping, etc.)
program
Recycling Simple disPosal Grsenwaste Green and wood Closed system -Create a olosed system tor tree waste.
(i.e. land filling) of recyollng waste reoycllng -no outside
green waste
urban forest, developing commitment is probably
more a ifunction .of education,' awareness and
positive Incentives. This may represent our most
sfgnifioant challenge: to provide information that
creates commitment and guides action.
This Is not to Ignore the budgetary requirements
for sustainable urban forests. It has tong been our
belief that if education were adequate J funding
would' soon fonow. Despite' the current state of
funding; we must hold to this perspective.
Fln$.lly, sustainable urban forests also require
a viable resource base', While urban foresters and
arborists have'long·felt confident in their ability to
sustain the· resource. we must acknowledge our
limitations as well as our strengths. The optimal
structure of urban forests, I.e,·the arrangement of
trees in. a city, (emains the subject of research.
Our. industry must strive to resolve QonflJots such
as quality of nursery stock, ~ppropriate cultural
praotices and the ma'tch between sHe
considerations and speoles selection.
reuse disposal
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Acknowledgment8~ Thanks to Greg
McPherson, Dave Nowak. Richard Rideout, Paul
Ales, Ed Macle, and Ray Tretheway for their
comments and suggestions. Funding for this
project was provided by a grant from the National
Urban and Community Forestry AdviSOry Council
th(Ough the U.S.D.A. Forest Service Urban and
Community Forestry Challenge Cost .. share
Program (No. G-5-94-20 .. 095).
HortSclence, Inc.
P.O. Box 754
Pleasanton, CA 94566
and
C.alifornia AeLefifrrhe Trust for public Land
3001 Redh~1J Avenue '
Costa Mesa, CA 92626
.. -
zU8sammenfa,sung. -Das Modell des' ~Ich
selbsterh$1tenden Stadtwaldes wendetallqemelne
Prinzipi.en de.r Selbsterhaltung auf stACttische
Blume und WAlder an. Siah selbst erhaltende
Stadtwalder erfardern sine q$Sunds Herkunft dar
Pflanzen, kommunale UnterstOtzung· und ain
umfassendes Management. Ole Kriterlen und
llidikatoren~ um dlesen Status zu OberprOfen
werden hler vorgestellt. Das'deutUchste Resultat
sines sich selbst erhaltenden Stadtwaldss be·steht .
darin, elnen··rt1axlmalen Grad an umweltbezogenen,
okologisbhen,' sozi.alen und Okonomlschen
Vorzugen zu erreichen: .