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HomeMy WebLinkAbout2014-01-27 City Council Agenda PacketCITY OF PALO ALTO CITY COUNCIL Special Meeting Council Chambers January 27, 2014 6:00 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in the Council Chambers on the Thursday preceding the meeting. 1 January 27, 2014 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. PUBLIC COMMENT Members of the public may speak to agendized items; up to three minutes per speaker, to be determined by the presiding officer. If you wish to address the Council on any issue that is on this agenda, please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Council, but it is very helpful. TIME ESTIMATES Time estimates are provided as part of the Council's effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. To ensure participation in a particular item, we suggest arriving at the beginning of the meeting and remaining until the item is called. 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 up to three minutes for concluding remarks after other members of the public have spoken. Call to Order Closed Session 6:00-7:00 PM Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker. 1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS California Government Code Section 54956.8 Property: U.S. Post Office, 380 Hamilton Avenue, Palo Alto 94301 Agency Negotiators: James Keene, Lalo Perez, Hamid Ghaemmaghami, Joe Saccio, Hillary Gitelman, Aaron Aknin, Meg Monroe, Molly Stump, Cara Silver Negotiating Parties: City of Palo Alto and United States Post Office Under Negotiation: Purchase: Price and Terms of Payment Special Orders of the Day 7:00-7:10 PM 2. Resolution of the Council of the City of Palo Alto Expressing Appreciation to Alison Williams on her Retirement 2 January 27, 2014 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Agenda Changes, Additions and Deletions HEARINGS REQUIRED BY LAW: Applications and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and put up to three minutes for concluding remarks after other members of the public have spoken. OTHER AGENDA ITEMS: Public comments or testimony on agenda items other than Oral Communications shall be limited to a maximum of three minutes per speaker. City Manager Comments 7:10-7:20 PM Council Member Questions, Comments and Announcements 7:20-7:35 PM Members of the public may not speak to the item(s) Oral Communications 7:35-7:50 PM Members of the public may speak to any item not on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. Minutes Approval 7:50-7:55 PM December 16, 2013 Consent Calendar 7:55-8:00 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 3. Approval of the Renewal of a Public-Private Partnership Agreement Between the City of Palo Alto and West Bay Opera for the Use of the Lucie Stern Community Theatre 4. Approval of the Renewal of a Public-Private Partnership Agreement Between the City of Palo Alto and TheatreWorks for the Use of the Lucie Stern Community Theatre 5. Approval of an Amendment to the Agreement with the Palo Alto Recreation Foundation, to Include $5,000 Funding to Support the Coordination of the 2014 World Music Day Event 6. Approval of a Public-Private Partnership Agreement Between the City of Palo Alto and the Palo Alto Players for the Cooperative Use of the Lucie Stern Community Theatre 7. Approval of a Five-Year Contract with Accela, Inc. for Software Maintenance for Accela Citizen Access and Accela Automation, Not to Exceed $658,000 3 January 27, 2014 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 Contract for Professional Services with Waters Consulting Group, Inc., and Adoption of a Budget Amendment Ordinance In The Amount Of $98,050 for a Total Compensation Market Study for the Management & Professional Classifications 9. Appointment of 2014 Emergency Standby Council 10. SECOND READING: Ordinance to Amend Sections 18.04.030 (Definitions), 18.16.060 (CN Zone), 18.18.060 (CD Zone), 18.20.030 (ROLM(E) Zone) and Add Section 18.46 (Reasonable Accommodation) of Title 18 (Zoning) of Palo Alto Municipal Code to Implement 2007- 2014 Housing Element Programs (First Reading: January 13, 2014 PASSED: 7-2 Klein, Schmid no) 11. SECOND READING: Adoption of an Ordinance for a New Chapter 18.14 (Residential Density Bonus) to Include in Title 18 of the Palo Alto Municipal Code to Implement Government Code Section 65915 (First Reading: January 13, 2014 PASSED: 8-1 Klein no) 12. Request for Authorization to Increase Existing Contract with the Law Firm of Ginn & Crosby by an Additional $135,000 For a Total Contract Not to Exceed Amount of $200,000 for Legal Services 13. Approval of Amendment No. 2 to the City's Power Purchase Agreement with Ameresco San Joaquin, LLC to Extend the Landfill Gas Electric Generating Facility's Commercial Operation Date to April 30, 2014 Upon Receipt of a $120,000 Administrative Payment Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 8:00-10:00 PM 14. Council Review and Policy Direction to Staff on the Residential Parking Permit Program Framework (Continued from December 16, 2013) Adjournment AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance. 4 January 27, 2014 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Additional Information Standing Committee Meetings Infrastructure Committee Meeting, January 29th at 9:00 AM City Council Closed Session January 30th at 6:00 PM Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Informational Report Annual Review of the City Council Procedures and Protocols City of Palo Alto Investment Activity Report for the Second Quarter, Fiscal Year 2014 Update on Study and Analysis of a Proposed 60kV Electric Transmission Connection Between the City, Stanford University and the SLAC National Accelerator Laboratory Early Distribution of Final Environmental Impact Report for Palo Alto Municipal Golf Course Reconfiguration Project and Baylands Athletic Center Expansion Project John Barton Information Regarding 27 University Avenue Public Letters to Council City of Palo Alto (ID # 4445) City Council Staff Report Report Type: Special Orders of the Day Meeting Date: 1/27/2014 City of Palo Alto Page 1 Summary Title: Alison Williams Resolution Upon her Retirement Title: Resolution of the Council of the City of Palo Alto Expressing Appreciation to Alison Williams on her Retirement From: City Manager Lead Department: Community Services Attachments:  Alison Williams Resolution (DOC) RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO EXPRESSING APPRECIATION TO ALISON WILLIAMS ON HER RETIREMENT FOR OUTSTANDING PUBLIC SERVICE WHEREAS, Alison Williams has served the City of Palo Alto for the past thirty-three years and has made significant contributions to the City of Palo Alto in her capacity as Costume Supervisor; and WHEREAS, Alison Williams has designed, created and built tens of thousands of costumes for the youth of Palo Alto; has provided her services as an experienced educator; and WHEREAS, through Alison’s devotion to making the Children’s Theatre productions an excellent experience for all who participate on stage and off, the Children’s Theatre has been chosen by the community as Palo Alto Weekly’s “Best Place for Live Entertainment” in 2012 and 2013 and regularly serves more than 30,000 participants annually; and WHEREAS, Alison Williams has been an exemplary costume supervisor and mentor, providing her staff with opportunities to create, grow and succeed by providing a workplace that was educational, motivational and open to new ideas; and WHEREAS, Alison Williams is recognized by the community, and parents of local youth for her professionalism, knowledge and for providing the community with outstanding programs and services; and WHEREAS, Alison Williams through her professionalism, wisdom, integrity, creativity, and humanity, has earned the high esteem of her City of Palo Alto colleagues across departments and divisions. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Palo Alto hereby gratefully records its appreciation, as well as the appreciation of the citizens of this community, for the outstanding public service rendered by Alison Williams along with our best wishes for a rewarding and fulfilling life during retirement. INTRODUCED AND PASSED: January 27, 2014 ATTEST: APPROVED: ___________________ ___________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________ ___________________ City attorney City Manager City of Palo Alto (ID # 4434) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/27/2014 City of Palo Alto Page 1 Summary Title: West Bay Opera Partnership Agreement Title: Approval of the Renewal of a Public-Private Partnership Agreement Between the City of Palo Alto and West Bay Opera for the use of the Lucie Stern Community Theatre From: City Manager Lead Department: Community Services Recommendation Staff recommends that Council approve the renewal of a public-private partnership agreement between the City of Palo Alto and West Bay Opera for the use of the Lucie Stern Community Theatre (Attachment A). Background The Lucie Stern Community Theatre is used by three local theatre companies which put on approximately 15 productions annually. West Bay Opera, TheatreWorks and the Palo Alto Players partner with the Community Services Department to foster the cultural and artistic needs of Palo Alto residents and visitors. The City and these companies mutually benefit from continuing this relationship. West Bay Opera was founded by Henry Holt in 1955. Originally called the Little Opera Guild, the company began presenting fully staged operatic performances. Under the leadership of Mr. Holt, who was succeeded by his wife, Maria Holt, and then by the present director, Jose Luis Moscovich, West Bay Opera has grown steadily. In 1974, the West Bay Orchestra was established. In 1982, the company acquired space for rehearsals, offices, a costume shop and storage on Lambert Avenue in Palo Alto. Annually, West Bay Opera presents three fully staged productions at the Lucie Stern Theatre. Discussion City of Palo Alto Page 2 West Bay Opera’s usage of the Lucie Stern Community Theatre is covered by a public-private partnership agreement (Attachment A). Since production scheduling is done inter-dependently between the three groups, and the cost of relocating an opera company is prohibitively high, there exists nearly no opportunity for changing the companies that the Lucie Stern Community Theatre serves. Therefore, staff recommends that the City Council approve the modification of the existing public private partnership. The key terms of this agreement are discussed below: Term: The new agreement is for one year effective from September 1, 2013 until August 31, 2014. Similar agreements are intended to be entered into in subsequent years. Revenue: In accordance with the Municipal Fee Schedule and in exchange for providing facility usage, West Bay Opera shall remit to the City a $2.00 surcharge for each ticket sold. This fee is effectively passed down to patrons and is applied to all subscription, group, individual, promotional, and other tickets sold. Complimentary tickets are excluded, and the sum of the surcharge revenue for each production is due to the City within 30 calendar days after the closing of a production. The City retains roughly $60,000 per year from this ticket surcharge in total from the three theater group partnerships. Among other functions, the proposed agreement acts as a revenue contract which governs the application, collection and accounting of associated revenue. Responsibilities of City: The contract outlines the responsibilities of the City, using the standard terms of public-private and joint-venture partnerships, including specifying good delivery terms, notice requirements for contract termination, and affirming non-discrimination, insurance and property guidelines. The City is also responsible for allowing and providing access to the Lucie Stern Community Theatre during designated hours, providing basic maintenance of capital equipment, monitoring production safety, and providing information regarding other scheduled facility uses (such as City-sponsored events or private rentals). Responsibilities of Company: Additionally, the agreement stipulates the responsibilities of the opera company, including its duty to abide by City and department policies and procedures (specifically including and as related to, without limitation, conduct in community centers, injury and illness prevention, sale of alcoholic beverages, operations, building emergency procedures, zero waste, and facility use). Other responsibilities include timely remittance of fees and surcharges, requirements for sufficient building supervision/staffing, recording keeping of ticket sales and surcharge remittance for compliance with audits, and adherence to standard practices for facility security. City of Palo Alto Page 3 This renewed agreement is substantially identical to previously negotiated agreements. The $2.00 ticket surcharge is consistent with the Municipal Fee Schedule adjustments effective 07/01/2012. Policy Implications This partnership would be categorized as a Joint Venture partnership under the City’s Public- Private Partnership Policy (Policy 1-25; Public Private Partnerships; Attachment B). The partnership with West Bay Opera furthers Policy C-7 of the Community Services element of the Comprehensive Plan: “Actively work with private, nonprofit, and public community service organization to avoid duplication and to coordinate the delivery of services like child care, senior services, and recreation” and Policy G-12 of the Governance element: “Continue and expand the opportunities for public and nonprofit organizations serving the City to provide information about themselves to the public.” Resource Impact No additional City resources are required and it is anticipated that this partnership will lead to enhanced program and capital funding over the life of the agreement. Attachments:  West Bay Opera (PDF)  Public Private Partnership Policy (PDF) CITY OF PALO ALTO AND WEST BAY OPERA AGREEMENT BY THIS AGREEMENT MADE AND ENTERED INTO ON THE 19TH DAY OF SEPTEMBER, 2013 BY AND BETWEEN THE CITY OF PALO ALTO (“CITY”) AND WEST BAY OPERA (“CORPORATION”), IN CONSIDERATION OF THEIR MUTUAL COVENANTS, THE PARTIES HERETO AGREE AS FOLLOWS: CORPORATION SHALL PROVIDE OR FURNISH THE FOLLOWING SPECIFIED 1) GOODS AND MATERIALS, 2) SERVICES OR 3) A COMBINATION THEREOF AS SPECIFIED IN THE EXHIBITS NAMED BELOW. EXHIBITS: The following attached exhibits are incorporated herein by this reference. Contract is not complete unless all exhibits are attached.  Exhibit A: Responsibilities of the Corporation  Exhibit B: Responsibilities of the City  Exhibit C: General Conditions  Exhibit D: Non-Discrimination Form  Exhibit E: Proof of Liability Insurance TERM: The services and/or materials furnished under this agreement shall commence on 9/1/2013 and shall be completed on or before 09/1/2014. COMPENSATION: As compensation for the full performance of this agreement, CORPORATION shall remit fees and surcharges to the CITY in accordance with the prevailing rates set forth in the CITY”s Municipal Fee Schedule. Such payments include, but are not limited to, those defined in EXHIBIT A (Section 22) and EXHIBIT C (Section 10) and shall be be subject to the terms and conditions set forth herein. In consideration of referenced exhibits, attachements, and appendecies, such compensation shall not exceed fifty thousand dollars ($50,000). CITY ACCOUNT NUMBER: Fees and surcharges remitted persuant to this agreement shall be credited to the City’s accounts included in the table below: REVENUE TYPE COST CENTER - GL ACCT - INTERNAL ORDER Ticket Surcharge 80020412 – 15540 - 61205 Facility Attendant 80020512 – 13450 - 61205 INVOICING: Send all invoices to the City of Palo Alto. Such invoices shall be sent to the attention of the Project Manager. GENERAL TERMS AND CONDITIONS: General Terms and Conditions are included on page three of this agreement. . HOLD HARMLESS. CORPORATION shall indemnify, defend and hold harmless CITY, its Council Members, officers, employees, and agents from any and all demands, claims or liability of any nature, including wrongful death, caused by or arising out of CORPORATION’S, its officers’, directors’, employees’ or agents’ negligent acts, errors, or omissions, or willful misconduct, or conduct for which the law imposes strict liability on CORPORATION in the performance of or failure to perform this agreement by CORPORATION. ENTIRE AGREEMENT. This agreement and the terms and conditions on the following pages represent the entire agreement between the parties with respect to the purchase and sale of the goods, equipment, materials or supplies or payment for services which may be the subject of this agreement. All prior agreements, representations, statements, negotiations and undertakings whether oral or written are superseded hereby. THIS AGREEMENT SHALL BECOME EFFECTIVE UPON ITS APPROVAL AND EXECUTION BY CITY. IN WITNESS THEREOF, THE PARTIES HAVE EXECUTED THIS AGREEMENT THE DAY, MONTH, AND YEAR FIRST WRITTEN ABOVE. By: ______________________________ Date______________________ José Luis Moscovich General Director West Bay Opera By: ______________________________ Date______________________ Judge Luckey Manager Arts, Children’s Theatre Community Services Department City of Palo Alto CITY OF PALO ALTO APPROVALS: CITY DEPARTMENT  Funds Have Been Budgeted (1) PURCHASING & CONTRACT ADMINISTRATION INSURANCE REVIEW (2) APPROVAL OVER $25,000 (3) PURCHASING MANAGER APPROVAL OVER $25,000 APPROVAL OVER $85,000 CITY OF PALO ALTO BY:_____________________________________ CITY ATTORNEY ATTEST: BY:________________________ _______________________ MAYOR CITY CLERK CITY OF PALO ALTO - GENERAL TERMS AND CONDITIONS A. ACCEPTANCE. This agreement is limited to the terms and conditions on pages 1, 2, and 3 hereof which includes any exhibits referenced. B. GOVERNING LAW. This agreement shall be governed by the laws of the state of California. C. INTEREST OF CORPORATION. It is understood and agreed that this agreement is not a contract of employment in the sense that the relation of master and servant exists between the CITY and undersigned. At all times CORPORATION shall be deemed to be an independent contractor and CORPORATION is not authorized to bind CITY to any contracts or other obligations. In executing this agreement, CORPORATION certifies that no one who has or will have any financial interest under this agreement is an officer or employee of CITY. D. INSURANCE. CORPORATION agrees to provide the insurance specified in the “Insurance Requirements” form attached hereto as Exhibit C. In the event CORPORATION is unable to secure a policy endorsement naming the City of Palo Alto as an additional insured under any comprehensive general liability or comprehensive automobile policy or policies, CORPORATION shall at a minimum, and only with the written approval of City’s Risk Manager or designee, cause each such insurance policy obtained by it to contain an endorsement providing that the insurer waives all right of recovery by way of subrogation against CITY, its officers, agents, and employees in connection with any damage, claim, liability personal injury, or wrongful death covered by any such policy. Each such policy obtained by CORPORATION shall contain an endorsement requiring thirty (30) days' written notice from the insurer to CITY before cancellation or reduction in the coverage or limits of such policy. CORPORATION shall provide certificates of such policies or other evidence of coverage satisfactory to City's Risk Manager, together with evidence of payment of premiums, to CITY at the commencement of this agreement, and on renewal of the policy, or policies, not later than twenty (20) days before expiration of the terms of any such policy. E. TERMINATION. This agreement may be terminated by CITY upon ten (10) days written notice to CORPORATION. Monies then owing based upon work satisfactorily accomplished shall be paid to CORPORATION. F. CHANGES. This agreement shall not be assigned or transferred without the written consent of the CITY. No changes or variations of any kind are authorized without the written consent of the City Manager or his or her designee. G. AUDITS. CORPORATION agrees to permit CITY to audit, at any reasonable time during the term of this agreement and for three (3) years thereafter, CORPORATION'S records pertaining to matters covered by this agreement. CORPORATION further agrees to maintain such records for at least three (3) years after the term of this agreement. H. NO IMPLIED WAIVER. No payment, partial payment, acceptance, or partial acceptance by CITY shall operate as a waiver on the part of CITY of any of its rights under this agreement. I. CITY'S PROPERTY. Title to CITY’s property furnished to CORPORATION shall remain in the CITY. CORPORATION shall not alter or use property for any purpose, other than that specified by CITY, or for any other person without the prior written consent of CITY. CORPORATION shall store, protect, preserve, repair and maintain such property in accordance with sound professional practice, all at CORPORATION’s expense. J. NON-DISCRIMINATION. No discrimination shall be made in the employment of persons under this agreement because of the race, color, national origin, age, ancestry, religion or sex of such person. CORPORATION agrees to meet all requirements of the Palo Alto Municipal Code pertaining to nondiscrimination in employment, including completing the NonDiscrimination Compliance Form, attached hereto as Exhibit D, and incorporated herein by this reference. K. WARRANTY. CORPORATION expressly warrants that all materials and services covered by this agreement shall conform to the specifications, requirements, instructions, or other descriptions upon which this agreement is based, shall be fit and sufficient for the purpose intended, of good materials and workmanship and free from defect and that materials and services of CORPORATION’S design will be free from defect in design. Inspection, test, acceptance, payment or use of the goods furnished hereunder shall not affect the CORPORATION’S obligation under this warranty, and such warranties shall survive inspection, test acceptance and use. CORPORATION agrees to replace, restore, or correct defects of any materials or services not conforming to the foregoing warranty promptly. Without expense to CITY, when notified of such nonconformity by CITY, in the event of failure by CORPORATION to correct defects in or replace nonconforming goods or service promptly, CITY, after reasonable notice to CORPORATION, may make such corrections or replace such materials or services and charge contractor for the cost incurred by the CITY thereby. L. WORKERS’ COMPENSATION. CORPORATION, by executing this agreement, certifies that it is aware of the provisions of the labor code of the state of California which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and certifies that it will comply with such provisions before commencing the performance of the work of this agreement. M. PRICE TERMS. (a) Extra charges, invoices and payment. No extra charges of any kind will be allowed unless specifically agreed to in writing by CITY. All state and federal excise, sales and use taxes shall be stated separately on the invoices. (b) Transportation charges. Any transportation charges with respect to which CORPORATION is entitled to receive reimbursement shall be added to CORPORATION’S invoice as a separate item, with the receipted freight bill attached thereto. (c) CORPORATION warrants that the prices for materials or services sold to CITY under this agreement are not less favorable than those currently extended to any other customers of the same or like articles or services in equal or less quantities. In event CORPORATION reduces its price for such materials or services during the term of this agreement, CORPORATION agrees to reduce the prices or rates hereof correspondingly. N. SCHEDULES OR DELIVERY. Time is of the essence of this agreement. CORPORATION agrees to comply with the specific schedule provided by the CITY or agreed upon herein without delay and without anticipating CITY’S requirements. CORPORATION also agrees not to make material commitments or scheduling arrangements in excess of the required amount or in advance of the time necessary to meet the schedule(s) of this agreement, if any. O. TRANSPORTATION, PACKAGING & LABELING. All materials or services are to be provided: (a) F.O.B., Palo Alto unless otherwise specified; (b) with a packing list enclosed in cartons, which indicate the agreement number, exact quantity and descriptions, concerning any materials shipments; (c) and comply with current packaging and labeling requirements prescribed by D.O.T. Revised 8/1/2010 Page 4 of 23 EXHIBIT A RESPONSIBILITIES OF THE CORPORATION (1) Abide by the policies/procedures established by CITY and CITY’S Arts and Sciences Division and the Department of Community Services for the use of CITY facilities, equipment, costumes, props, furniture, scenery and other production elements. These shall include, but are not limited to, Regulations Of The City Of Palo Alto Regarding Prohibited Conduct In Community Centers and Theaters (Appendix A), the City of Palo Alto Injury and Prevention program (Appendix B), Policy for Sale of Alcoholic Beverages (Appendix C), Operations Manual (Appendix D), Safety Procedures and Guidelines (Appendix E), Building Emergency Procedures (Appendix F), procedure for adjusting the forestage height including use of the Scissor lift (Appendix G), House Manager's Guide (Appendix H), Zero Waste Plan (Appendix I), and Costume Room Guidelines (Appendix J). Follow safety procedures for the use of power and hand tools, mechanical lifts, etc. including the use of safety goggles, ear protection, face shields, safety cables, outriggers, etc. (2) Obtain, supervise, and pay all necessary related fees for the services of all professional assistance needed to produce such productions. Such assistance may include, but is not limited to the following: Production Directors, all Designers, Carpenters, Painters, Production Assistants, Music Directors, Choreographers, Musicians and other Front of House, Artistic or Administrative personnel. (3) Pay all fees and costs for materials, supplies, scripts, royalties, licenses and other fees and expenses connected with said productions, including all make-up removal supplies. (4) Be solely responsible for the control and supervision of all production activities and personnel connected therewith and shall notify all personnel of their obligations and responsibilities pertaining to their production area. Act responsibly in matters of building security when CORPORATION is scheduled to utilize CITY facilities. (5) Conduct regularly scheduled production meetings, shall notify CITY of such production meetings in writing, and shall coordinate all production activities with CITY'S Project Manager or his/her designee. There shall be at least one or more, as needed, production design meeting(s) for each production as scheduled in ATTACHMENT 1 which shall be convened by CORPORATION at a mutually convenient time prior to start of construction. Provide the Project Manager or his/her designee with a list of major production personnel and their phone numbers for each production at the time of the first production meeting. Construction plans and fly-line plots should be submitted at the aforementioned production design meeting in order for the Project Manager or his/her designee to ascertain compliance with CITY fire or other safety regulations. (6) Provide the Project Manager or his/her designee with a list of all pyrotechnics effects (including the use of open flames), all hydro technical effects, all use of fog or haze, all loud noises (i.e. gunshots), and all use of strobe lights at least 21 days prior to first use on stage. No flames shall be permitted on stage without the required fire permits from CITY. Smoking by any of the actors on stage as an integral part of the production will be considered a pyrotechnic effect. Safety precautions approved by a CITY Fire Inspector and the Project Manager or his/her Revised 8/1/2010 Page 5 of 23 designee will be taken when smoking is occurring on stage, and the audience shall be notified beforehand that smoking, loud noises (i.e. gunshots) or use of strobe lights will occur on the stage. All Fire Department fees for “Open Flame Permits” and “Candles and Open Flames in Assembly Areas Permits” shall be the responsibility of the CORPORATION. (7) Provide the Project Manager with the rehearsal schedule, performance schedule, shop schedule and any requests for the use of CITY facilities (including but not limited to the Community Theatre, rooms located in the Lucie Stern complex and the Lucie Stern Courtyard and patio) for any purpose. Space reservations should be made at least four weeks in advance. CORPORATION shall accommodate other uses of the theatre facility, including but not limited to the stage, auditorium, rehearsal hall, scene shop, paint shop, flat dock, and costume shop, during periods of non-use during the runs of the productions. CITY shall notify the CORPORATION . CORPORATION shall provide personnel for any shifting of CORPORATION'S scenery and/or equipment. (8) Designate as Project Director for the length of this contract an employee or sub- contractor to manage or supervise all areas and items in this contract, including production, technical, house personnel and any and all support groups and to be CORPORATION'S liaison with the Project Manager or his/her designee in all matters relating to the CITY in any way. (9) Arrange for auditions and casting for such productions and be solely responsible for the supervision and control of all performers. With respect to casting, CORPORATION shall have sole discretion to choose and approve the qualifications and select the cast. In personnel decisions, the CORPORATION shall agree to and comply with the provisions of the CITY’S Non-discrimination Policy (Exhibit 8). (10) Search for, place and train participants in appropriate areas of theatre production activity and shall utilize personnel in a safe and effective manner in the presentation of such productions. CORPORATION shall be solely responsible for the control and supervision of such participants and shall indemnify, defend, and hold harmless the CITY from any claims or liabilities arising from the acts or omissions of such personnel. All such personnel shall be deemed the sole agents and employees of CORPORATION and shall be notified by the CORPORATION of this circumstance. (11) Exercise safe practices in the use of CITY facilities and equipment, shall maintain and clear work areas, and shall within 24 hours report, with form provided by CITY (Appendix K), information regarding accidents. Immediately report to the Project Manager or his/her designee on form provided by CITY any breakage, malfunction, deterioration or loss of any of the CITY'S resources (including musical instruments, tools, lights, sound equipment, props, curtains, etc.). CORPORATION shall not attempt repair of CITY equipment without prior consultation with the CITY’S Project Manager. CORPORATION shall immediately discontinue any activity where an unsafe or dangerous condition exists. CORPORATION shall train and supervise CORPORATION'S staff and volunteers on safe theatre practices and adhere to CITY'S safety procedures and guidelines. If, in the opinion of any CITY or CORPORATION employee, CORPORATION is conducting an activity in an unsafe manner, CORPORATION or its agents shall be informed and shall immediately discontinue such activity until such activity is able to be conducted in a safe manner approved by CITY staff. (12) Promote and publicize all of its productions, and shall print in all publicity, including, but not limited to, publications, mailings, flyers, posters, brochures, programs, and Revised 8/1/2010 Page 6 of 23 paid or public service advertising, the statement, "In cooperation with the City of Palo Alto Community Services Department Division of Arts and Sciences." In conformance with Americans with Disabilities Act (ADA) of 1990 guidelines and requirements, CORPORATION shall bear responsibility for providing appropriate auxiliary aids, interpretive services and accommodations where they are necessary to achieve an equal opportunity to participate in and enjoy the benefits of public performances produced under this contract. Printed programs shall include the following statement required by the Americans with Disabilities Act: "Persons with disabilities who require information on 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: ADA Coordinator, City of Palo Alto, 650-463- 4952 (Voice) or ada@cityofpaloalto.org (Internet).” (13) Continue to exist as an independent, non-profit corporation under the laws of the United States and the State of California. (14) Submit all signs or displays to be located on the Theatre premises to Project Manager or his/her designee for approval at the first production meeting. All displays may be put up at load-in and must be removed during strike. Inside the Theatre, no display materials may be placed upon stucco walls. Lobby displays may only be placed on the lobby display boards, and all fasteners must be removed at the time display is taken down. Nothing may be posted on the exterior walls or doors of the Theatre or in the Stern courtyard, except for items in the display case and an approved production name sign hung from the theatre balcony. Marquee signs must be constructed of light weight material, and shall be secured in such a way that the sign cannot become dislodged by normal vibration or seismic activity. Signs shall be of a standard size no larger than ten feet in length and eight feet in height. All marquee signage must be attached to the theatre balcony with rigging so that the sign may be easily removed for limited periods during photography shoots, special events, or building maintenance. (15) Assure that the auditorium, stage, paint shop, scene shop, flat dock, costume shop, green room, dressing rooms, rehearsal hall, hallways and outdoor areas adjacent to theatre and shop will be cleared and clean, and that scenery, properties, and other production elements will be disassembled and stored, to the Project Manager or his/her designee’s satisfaction, within six hours after the final performance or on a time schedule mutually agreed upon between the CORPORATION and the Project Manager or his/her designee. The stage shall always be returned to its basic set-up as established by the Project Manager or his/her designee unless there is a mutual agreement with the incoming group that has been approved by the Project Manager or his/her designee. All items on the STRIKE CHECKLIST are to be performed unless there is a mutual agreement with the incoming group that has been approved by the PROJECT MANAGER or his/her designee. The Project Manager or his/her designee will sign a copy of the STRIKE CHECKLIST form at the completion of the strike to signify acceptance of clean and neat facilities. (16) Leave storage, paint, scene and costume spaces clean and clear of CORPORATION'S materials other than those materials necessary for the ongoing maintenance and repair of the sets and costumes by the Monday following opening performance. (17) Leave all spaces clear, clean and orderly at the end of each use. Rehearsal Hall is to be cleared of all materials, except major set pieces and any rehearsal props, after each daily use. Rehearsal Hall is to be completely cleared within 24 hours of final use. Dressing rooms are to be maintained after each daily use. Trash, recycling and compostable materials are to be Revised 8/1/2010 Page 7 of 23 removed from all areas daily. Recyclables and compostable materials are to be placed in the recycling and composting carts near the trash dumpster and garbage and trash are to be placed into the dumpster. The CORPORATION is required to reduce waste, reuse and recycle per the CITY’s Zero Waste Plan (Appendix I). Office space and hallways are to be kept continually clear, clean and orderly and neither space shall be used for the purpose of set, prop, or costume storage. Materials may not be left or stored any place out-of-doors overnight or when unattended by contractor personnel. (18) Enforce current regulations as established by CITY with regard to smoking, food and drink in CITY facilities (Appendix A). CORPORATION shall provide ushers at all previews and performances who will enforce such regulations. Smoking is not permitted inside any CITY facility. No person shall bring any animal into the theatre. This regulation shall not apply to service animals assisting individuals with disabilities or to animals in training to become service animals. Use of animals on the stage is subject to approval by the Project Manager or his/her designee. Food and drink are not permitted in the auditorium, light/sound booth or on stage, unless used as part of a production scene. Food and drink shall be permitted only in approved areas such as the green room and lobby. CORPORATION shall clean up all food and drink containers daily after use. (19) Observe all provisions of this agreement when using CITY facilities other than or in addition to the Community Theatre. This includes cleaning up the rooms, returning tables and chairs to their initial locations and depositing all trash and recycling in the appropriate receptacles. CORPORATION will be responsible for the maintenance of the Lucie Stern- Recreation Wing restrooms for weekend performances. (20) Comply with CITY TB test requirement for employees and volunteers of CORPORATION at any time the CITY Risk Manager deems it necessary. If minors are involved in the production, State of California requirements for fingerprinting the staff must be followed. (21) Comply with CITY sound ordinance levels for any outdoor activities, including load-in, strike, dismantling, or disposal. Shop doors facing Hopkins and Harriet Streets shall be closed between 8:00 p.m. and 8:00 a.m. (22) Pay Building Attendant fees at prevailing rates as set forth in the Municipal Fee Schedule: (a) For (an) additional Attendant(s) required for the use of CITY facilities other than the Attendant the CITY will furnish for the Lucie Stern Community Theatre facility for the period of from one hour prior to until at least one half hour after the completion of each public performance as listed in ATTACHMENT 1. (b) For any performances not included in ATTACHMENT 1. (c) When using other CITY facilities at the same time as a public performance as listed in ATTACHMENT 1. All building use policies must be adhered to for any CITY facility use. Revised 8/1/2010 Page 8 of 23 Additional performances of the productions listed in ATTACHMENT 1 may be added to ATTACHMENT 1 with two weeks notice. (23) Provide house manager and ushers for every performance or event whenever public is in attendance. CORPORATION shall permit only persons who have been trained in theatre emergency, safety and use procedures to usher. CORPORATION shall submit a list of their trained personnel to the Project Manager prior to public performances for each production. Ushers must be available to assist patrons under all circumstances and must be aware of and able to assist disabled persons. The CORPORATION’S House Manager and ushers must also be available to assist in emergency situations throughout the entire performance until audience has left the theatre. Ushers must ensure that wheelchairs, walkers, etc. are not blocking any of the aisles or exits. Ushers shall return seats to the upright position and remove litter from the auditorium and restrooms at the conclusion of each performance. (24) Shall be responsible for installing or removing the removable auditorium seats in designated areas to accommodate their wheelchair patrons and as required due to the needs of the production. (25) Shall have privilege of borrowing available Community Theatre-owned properties, sets, costumes and scenery for productions scheduled in this agreement. Costumes, properties and sets created by CORPORATION with CORPORATION-owned materials will remain the property of CORPORATION, and shall be removed from the theatre facility at the conclusion of the production in which the materials are used. The Project Manager or his/her designee may, on a case-by-case basis, authorize exceptions. Any allowed items stored at the theatre will become available for use by all contracting CORPORATIONS and the CITY. All such items created under former agreements will continue to be the property of the CITY. All office equipment, construction tools, special effects and lighting equipment purchased and owned by CORPORATION will remain the private property of CORPORATION and the CITY assumes no responsibility or liability for the loss or maintenance of such materials. All equipment, instruments, costumes and any other materials rented, borrowed or owned by any subcontractor, agent or person for the CORPORATION is the responsibility of the CORPORATION and/or its subcontractors, and the CITY assumes no responsibility or liability for its maintenance or loss. Such items as original play scripts, musical scores, scenic designs, costume designs and photographs belong solely to the authors, composers, artists who created them or their representatives, and any use of them will be at the sole discretion of the CORPORATION. Any use of these items must be in accordance with all applicable laws. CORPORATION assumes all liability and responsibility for any default on production expenses. (26) Shall be required to replace or have repaired by factory authorized technicians CITY owned equipment, instruments or materials identified by the Project Manager or his/her designee as having been lost, damaged or destroyed by an agent of the CORPORATION. A written report must be made on CITY form whenever CITY equipment is lost, damaged, or destroyed by the CORPORATION. (27) May be allowed the use of Community Theatre-owned properties, sets, costumes, scenery, furniture and equipment for CORPORATION productions not scheduled in this agreement upon written request to the Project Manager or his/her designee and upon express approval and written authorization of the Project Manager or his/her designee. CORPORATION must return to Community Theatre all items borrowed for productions at other venues within four days of the final performance and shall, in the event the items are damaged or destroyed, be Revised 8/1/2010 Page 9 of 23 responsible for the repair or replacement of all such borrowed items to the satisfaction of the Project Manager. (28) May use Community Theatre facilities and equipment only for theatre productions expressly covered under this agreement. Exceptions, such as for classes, camps or workshops, will be considered by the Project Manager or his/her designee upon the receipt from the CORPORATION of a written request at least thirty days prior to the date needed and, if granted, will be approved in writing by the Project Manager or his/her designee. No such activity will be advertised or promoted until it has been expressly approved by the CITY’S Project Manager. (29) Shall enforce all State and City laws relating to the sale and consumption of alcoholic beverages in CITY facilities. Alcohol is permitted at the Lucie Stern Community Center if approved by the CITY’S Project Manager. Unless otherwise specifically permitted the only alcoholic beverages which may be sold or served at CITY facilities by CITY policy are wines, including champagne and sparkling wine. If alcoholic beverages are to be sold or distributed free of charge, CORPORATION must possess a State A.B.C. The permit for the sale or distribution of alcoholic beverages obtained by the CORPORATION must be provided to the Project Manager. Proof of liquor liability insurance where CITY is named as co-insured with liability of at least one million dollars ($l,000,000.00) shall be required. Permits are to be displayed as required by law. It is the responsibility of the CORPORATION to ensure that no alcoholic beverage is served to a minor. Identification must be checked if the person appears to be under thirty years of age. CORPORATION shall remove all items, including cups, glasses, bottles, napkins and food from the lobby and any other affected areas, including the courtyard, after each performance. CORPORATION is required to adhere to CITY’S Recycling and Zero Waste Program (Appendix I). (30) Shall have one of their designated and CITY approved key and/or proximity card holders on the premises at all times as a supervisor whenever anyone from the CORPORATION is in the facility working for the CORPORATION, whether as a paid employee, subcontractor or volunteer. The Project Manager or his/her designee must approve any exceptions in writing. (31) Shall not in any way modify CITY facilities and may not install or attach anything in or on CITY facilities without having first submitted a written request to the Project Manager and having received written permission from the Project Manager or his/her designee. The approval of the Project Manager does not relieve the CORPORATION from any responsibility to obtain necessary CITY permits or Building Department approvals for the modification. Any violation shall result in the CORPORATION being charged for all repairs necessary to restore the facility to its original condition and any additional costs pertaining to the restoration of CITY property. (32) Shall immediately report to the police any incidents of a criminal or suspicious nature occurring on CITY property and notify the Project Manager or his/her designee within twelve hours. If initial notification is verbal, it must also be submitted in writing to Project Manager or his/her designee on provided form. (33) Shall make sure that the doors to the Scene Shop, Rehearsal Hall, and Costume Shop, as well as any other exterior access doors to any area of the Lucie Stern Community Theatre, are not left open, unlocked or left with the locking mechanism disabled at any time when the immediate area secured by the door is unoccupied by the CORPORATION, even if only briefly. Failure to do this may result in greater restricted access to the Lucie Stern Revised 8/1/2010 Page 10 of 23 Community Theatre, including the possible forfeiture of keys/proximity cards by the CORPORATION and/or restricted access times. (34) Must fill out a CITY Report of Accident/Property Damage report (Appendix K) for any and all accidents, injuries or property damage if a CITY employee is not present to fill out the report. (35) Must operate and conduct business in compliance with the CITY’s Zero Waste Plan (Appendix I) for all activities including, but not limited to, set construction and strike, food and beverage service, and office activities. The CITY Recycling Program can assist with resources for achieving this goal. The goal is to send as little waste to landfill as possible through waste reduction, reuse and recycling. To achieve this goal CORPORATION must first reduce waste whenever possible. (36) Shall avoid the use of disposables and shall not use Styrofoam™ and other plastics for food/beverage service. Reusable food/beverage service ware should be utilized to the maximum extent possible. Where a reusable food/beverage service option is not available, choose items that are recyclable. For concessions, choose product packaging that is recyclable. (37) Must practice reuse before, during and after production. A list of reuse resources will be provided to avoid the disposal of construction materials, sets and props. CORPORATION must recycle construction debris from set materials (e.g. wood, metal). (38) Must recycle all materials included in the CITY’s Recycling Program including paper (all types), plastic containers #1-#7, cardboard, glass bottles and jars, and metal cans. Compostable materials will be disposed of in designated compost waste receptacles. (39) Include on the title page of all production and event programs: 1) the official City of Palo Alto logo, to be obtained from Project Manager, and 2) the following credit: “Use of the Lucie Stern Community Theatre is made possible through a generous grant from The City of Palo Alto, Community Services Department, Division of Arts and Sciences.” The City of Palo Alto, Community Services Department, Division of Arts and Sciences shall also be credited in the CORPORATION’s list of funders, at a level that reflects the annual subsidy provided by the CITY. Revised 8/1/2010 Page 11 of 23 EXHIBIT B RESPONSIBILITIES OF THE CITY (1) Allow CORPORATION the use of the Community Theatre Rehearsal Hall, Costume Room, Scene Shop, Paint Shop, Stage, Auditorium, Light/Sound Booth, designated work space, etc. as scheduled in ATTACHMENT 1 for the preparation and presentation of theatre productions performed under this agreement provided that CORPORATION submits specific rehearsal schedules, performance schedules and shop use schedules. CORPORATION shall be required to comply with all CITY policies. Any use of CITY facilities and equipment other than that listed in this contract but necessary to carry out this contract must be scheduled through and approved in advance by the Project Manager or his/her designee. (2) Allow the use of the auditorium and the stage for performances and brush-up rehearsals on the following schedule: No performance shall begin earlier than 9:00 a.m. nor end later than midnight. In no event shall CORPORATION conduct rehearsals or other activities, or otherwise occupy CITY facilities from 12 midnight to 8:00 a.m. unless prior written permission is obtained from the Project Manager or a designated employee of the CITY is on site. CORPORATION shall observe all facility security rules and regulations as established by CITY (Appendix A). (3) Allow the use of the stage and the auditorium prior to the opening night of such productions according to the production schedule set forth in ATTACHMENT 1. Allow the use of the rehearsal hall, box office, scene shop, paint shop and costume shop according to the schedule as set forth in ATTACHMENT 1. Additional facility use may be provided as specified in item (Exhibit B (1); Exhibit A (28)) above; however, priority use of the room will always be given to actual rehearsals of productions covered by a contract with the CITY. The CITY will not be responsible for obtaining additional space, but may assist in locating other CITY spaces and may act as co-sponsor for use of CITY facilities under appropriate circumstances. Payment as specified in the CITY’s Municipal Fee Schedule will need to be made for any productions/performances/events/other uses that are not included as a part of ATTACHMENT 1. CORPORATION will forfeit the right to any additional reservations of CITY facilities should CORPORATION reserve space which is not used. CITY reserves the right to allow other uses of space when not in actual, scheduled use by CORPORATION. Revised 9/1/2010 Page 12 of 23 (4) Provide the Project Manager or his/her designee with a list of all planned activities utilizing theatre Stage and Auditorium during said periods. This information is to be provided to the Project Manager or his/her designee in production design meetings (5) Allow CORPORATION to use all operational production equipment in CITY'S Community Theatre inventory as requested by CORPORATION and approved in writing by CITY. CORPORATION takes such equipment "as is" and is responsible for ensuring that such equipment is in a safe condition prior to use and is returned in working condition at the conclusion of its use or of the production. The CORPORATION will assist the CITY in keeping the inventory of tools, equipment, instruments and production materials up-to-date so that all theatre users may benefit from the use of these materials. (6) Monitor all aspects of production relative to safety (Appendix E). If the Project Manager or any designee(s) deem(s) that any procedure followed by CORPORATION is unsafe, he or she has the authority to immediately stop such procedure. The CITY and CORPORATION will work together to prevent or quickly mitigate any fire hazards or any items identified by the Fire Department during facility inspections. (7) Provide maintenance of CITY facilities and equipment, replacement lamps for lighting equipment and blades for table power tools, but not hand power tools. CITY shall respond with reasonable speed to make necessary repairs hereunder. (8) Provide persons designated by CORPORATION and approved by the Project Manager or his/her designee with keys, proximity cards (up to a maximum of six), and alarm codes for access to Lucie Stern Community Theatre facilities solely for the purpose of carrying out the requirements of this agreement. Keys, proximity cards, and alarm codes shall not be loaned or transferred and shall only be used by the designated persons. In the event that CORPORATION fails to properly open or lock and secure CITY facilities leading to a false alarm call-out or leaves areas of the facility unlocked and unattended, a two hundred dollar ($200.00) penalty shall be paid to CITY on each occasion. In the event that a designated key holder loses any key or proximity card issued by CITY the CORPORATION shall be assessed a seventy-five dollar ($75.00) replacement charge for each key or proximity card or pay for the cost of rekeying or reprogramming the locks of the facility if circumstances indicate it as determined by the CITY. CORPORATION will be responsible and held accountable for all personnel, properties and activities of CORPORATION. CORPORATION will be responsible and held accountable for all CITY facility and equipment damages or loss due to negligence. (9) Have the right to, with no notice; suspend this contract if the building should be declared uninhabitable for reasons of safety by the proper authorities. (i.e. if the building should be damaged in an earthquake and be declared unsafe for occupancy). If there is an outbreak of pandemic flu or other medical emergency and places of public gatherings are closed, CITY will not assume any financial responsibility for loss of revenue by the CORPORATION. If the Lucie Stern Community Theatre is not available due to earthquake, other disaster, or safety related issues, CITY will not assume any financial responsibility for loss of revenue by the CORPORATION. Revised 9/1/2010 Page 13 of 23 EXHIBIT C GENERAL CONDITIONS (1) CITY. The Manager Arts-Children’s Theatre is designated the Project Manager for CITY, who shall render overall supervision of the progress and performance of this agreement by CITY. All services herein agreed in this contract to be performed by CITY shall be under the overall supervision of the Project Manager or his/her designee. Contractor shall go through Project Manager or his/her designee in all matters dealing with CITY policies, funding, facilities, equipment and other CITY departments outside the Community Theatre. (2) CORPORATION. CORPORATION shall assign a single Project Director who shall have overall responsibility for the progress and execution of this agreement by CORPORATION. Should circumstances or condition subsequent to the execution of this agreement require a substitute Project Director, CORPORATION shall notify CITY immediately of such occurrence. The Project Director shall be responsible for all actions of the CORPORATION, including their support groups and volunteers. The Project Director shall also be responsible for all communication and information to and from CITY and CORPORATION'S personnel, including their support groups. (3) ACCESS. CORPORATION shall not prevent the Project Manager, facility maintenance personnel, and others specifically designated by the Project Manager from free and easy access to all CITY facilities. The Project Manager and others specifically designated by the Project Manager shall attempt to coordinate such access if possible. (4) SPECIFIC SERVICES. CORPORATION shall provide all specified services as set forth herein, for the presentation of the 2013-2014 Season’s productions as listed in and on the dates specified in ATTACHMENT 1. (5) PRODUCTION CHANGES. CORPORATION may make changes to its productions within the guidelines of the author or his/her representative. (6) SCHEDULING. CORPORATION may change production scheduling or locations for the purpose of increasing its net revenue and/or audience base, provided that such changes shall not diminish the quality of or access to such offerings by Palo Alto residents. Such changes shall be subject to CITY policies and procedures for space reservation and requests for changes are to be submitted in writing to the Project Manager for approval before any such changes are made. (7) FISCAL YEAR DEFINED. The term "fiscal year" shall mean July 1 to June 30, although CORPORATION is not required to use the same period for its own record-keeping and reporting purposes. (8) DAYS DEFINED. The term "days" shall mean calendar days. Revised 9/1/2010 Page 14 of 23 (9) QUALIFICATIONS. CORPORATION represents that it is qualified to furnish the services described under this agreement and shall be responsible for the performance of this agreement. (10) TICKET SALES: (a) CORPORATION budget for the term of this agreement is attached hereto, marked “ATTACHMENT 2” and incorporated herein by reference as though fully set forth. (b) CORPORATION shall be responsible for sale of season tickets and single tickets, depositing of revenue and reporting of revenue and expenditures, and shall place available tickets for each production for sale at the theatre box office one hour prior to each performance. CORPORATION shall not pre-sell seat numbers C1, C2, D1, D2, D3, and D4. CORPORATION shall also not pre-sell either the block of seats T2, T4, T6, T8, T10, U2, U4, U6, U8 and U10 or the block of seats T1, T3, T5, T7, T9, U1, U3, U5, U7, and U9 but shall hold one of these blocks of seats for disabled seating priorities. Said unsold seats may be released for sale one hour prior to performance. (c) CORPORATION agrees the price of admission for the season shall be as set forth in ATTACHMENT 3. (d) CORPORATION shall remit to CITY a surcharge for each ticket sold of $2.00 for each and every ticket sold either through subscription, group, individual, promotional or any other means. The surcharge of two dollars ($2.00) per ticket sold is due within 60 calendar days after the closing date of the production. “Sold” is to include any tickets given in exchange for monetary consideration. There will be a 10% surcharge levied for payments received between 61 days and 90 days after the closing date of the production; a 15% surcharge levied for payments received between 91 days and 120 days after the closing date of the production; and a 20% surcharge levied for payments received in excess of 121 days of the closing date of the production. Payment must be accompanied by the production report. (e) CORPORATION shall provide CITY, when requested by the Project Manager or his/her designee, with at least six (6) complimentary tickets for each production on the date(s) requested, best available seating will be provided to CITY if any seats are available at the time of the request. (f) CORPORATION may operate an intermission snack concession during each performance under this agreement. CORPORATION shall conduct such operation in a safe, clean manner and shall hold CITY harmless from any claim or demand of liability of any nature whatsoever which may arise out of such operation. If alcoholic beverages are to be sold or distributed free of charge, CORPORATION shall have on display a California State A.B.C. Permit and provide the Project Manager with proof of liquor liability where CITY is named as co-insured with liability of at least one million dollars ($l,000,000.00) (See Exhibit A (29) above). It is the responsibility of the Revised 9/1/2010 Page 15 of 23 CORPORATION to ensure that no alcoholic beverage is served to a minor by checking I.D.’s if the person appears to be under thirty years of age. Food and drink may not be taken into the Auditorium or the Light/Sound Booth at any time. CORPORATION shall remove all cups, glasses, bottles, napkins and food from the lobby, green room, and any other affected areas, including the courtyard, after each performance. CORPORATION is required to adhere to CITY’S Zero Waste Plan (Appendix I). (11) ORGANIZATION OF CORPORATION. (a) Composition of Corporation. Throughout the term of this agreement, CORPORATION shall remain an independent, non-profit corporation under the laws of California governed solely by a Board of Directors. Any changes in CORPORATION'S Articles of Incorporation, By-Laws, or tax-exempt status shall be reported by CORPORATION immediately to the Project Manager. Not more than twenty- five percent (25%) of the persons serving on the governing board of CORPORATION may be interested persons. "Interested persons" means any person currently being compensated by the CORPORATION for services rendered to it, whether as a full or part-time employee, independent or otherwise, but excluding any reasonable compensation paid to a director as director. (b) Meetings of Corporation. All meetings of the Board of Directors of CORPORATION shall be open to the public, except meetings, or portions thereof, dealing with personnel or litigation matters. Project Manager will serve as CITY liaison to CORPORATION'S Board of Directors. Project Manager shall be notified 21 (twenty-one) days in advance of the dates, times, and locations of all Board of Directors meetings. CORPORATION shall provide CITY with names, addresses and telephone numbers of CORPORATION Board members, as well as your Board’s meeting schedule (ATTACHMENT 4) to be attached to this agreement prior to its final approval. CORPORATION shall provide an updated roster of Board of Directors as changes may occur. (12) FISCAL RESPONSIBILITIES OF CORPORATION. (a) Fiscal Agent. CORPORATION shall appoint a fiscal agent who shall be responsible for the financial and accounting activities of CORPORATION, including the receipt and disbursement of CORPORATION funds. CORPORATION shall provide CITY with the name of fiscal agent (ATTACHMENT 5) and notify the Project Manager within 24 hours of any changes occurring during the contract period. CORPORATION shall have sole responsibility for the safekeeping of CORPORATION tickets and monies. (b) Fiscal Monitor. CORPORATION shall appoint from its Board an individual who no less than monthly shall review and by signature acknowledge each monthly financial report. Revised 9/1/2010 Page 16 of 23 (c) System of Accounts. CORPORATION and its fiscal agent shall establish and maintain a system of accounts that shall be in conformance with generally accepted principles of accounting for budgeted funds. Such system of accounts shall be subject to the review and approval of appropriate CITY staff. (d) Financial Record. In support of its system of accounts, CORPORATION shall maintain complete and accurate records of all financial transactions, including, but not limited to, contracts, invoices, time cards, cash receipts, vouchers, canceled checks, and bank statements. These records shall be made available to the CITY upon request. NOTE: CORPORATION currency is not to be stored on the theatre premises. (e) Audits. CORPORATION shall provide for independent audit of its fiscal year transactions, records, and financial reports. The audit shall be at the discretion of CITY and, if required, shall be done by a certified public accountant. The certified public accountant shall submit the report to both parties. The cost of this audit will be borne by CORPORATION. (f) Audit of surcharge payments. Corporation shall retain for a period of at least three years ticket stubs, sales records, and a verified report of sold and unsold tickets which must be made available to the city of Palo Alto Auditor upon request. (13) PRODUCTION REPORTS AND RECORDS. (a) Production Reports. CORPORATION shall keep accurate records of and shall file with Project Manager or his/her designee Production Reports within thirty (30) calendar days following the closing of each production, listing number of performances, ticket sales, expense/revenue, number of paid and volunteer participants and paid and volunteer participant hours worked. Each report shall be prepared on the form provided by CITY or on a form approved by the Project Manager. CORPORATION shall make every reasonable effort to supply such other information as the Project Manager and/or CITY Auditor may request. On reasonable notice and with reasons specified, CORPORATION shall grant the Project Manager and/or CITY Auditor access to all CORPORATION records relating to this agreement, including performance records, data, statements, and reports. (b) Evaluation of services. CORPORATION shall furnish all data, statements, records, information, and reports requested by CITY to monitor, review, and evaluate the performance of CORPORATION'S services hereunder. (c) A copy of CORPORATION’S most recently filed California State Tax Form 199, "California Exempt Organizations Annual Information Return" must be filed with the Project Manager or his/her designee within fifteen days of when it is due to the State of California and shall also be attached to this agreement prior to its final approval (ATTACHMENT 6). Revised 9/1/2010 Page 17 of 23 (14) CORRECTIVE ACTION REQUIREMENT. Notwithstanding the requirements of this agreement, in the event CITY should determine from any source, including but not limited to reports submitted by CORPORATION under this agreement or any evaluation report from any source, that there is a condition which requires correction, CITY may forward to CORPORATION a request for corrective action. Such request shall indicate the nature of the condition(s) or issue(s) which require(s) corrective action and may include a recommendation as to appropriate corrective action. Within fifteen (15) days of CITY'S request, CORPORATION shall submit its response which shall include its view of the problem and proposed action, if any. Upon request of either party, the parties shall meet within five (5) days thereafter to discuss the problem and proposed corrective action. (15) RIGHT TO SUSPEND OR TERMINATE. Either party may suspend or terminate the agreement for any reason by giving thirty (30) days' written notice to the other party. Upon the expiration of such notice, performance of the services hereunder shall be immediately discontinued. (16) SURRENDER OF MATERIALS. Upon suspension or termination, CORPORATION shall immediately turn over to CITY all keys and proximity cards issued by CITY, copies of studies, reports, and other data, whether or not completed, prepared by CORPORATION or its subcontractors, if any, in connection with this agreement. Such materials shall become the property of CITY. CORPORATION, however, shall not be liable for CITY'S use of incomplete materials nor for CITY'S use of complete documents if used for other than the services contemplated by this agreement. (17) CONTRACTS WITH OTHER AGENCIES. CORPORATION agrees not to enter into any contract or agreement with another person or agency that will materially interfere with or inhibit the full performance of the services to be provided by CORPORATION under this agreement. CORPORATION agrees to terminate as soon as legally possible any contract or agreement which will materially interfere with or inhibit the full performance of the services to be provided by CORPORATION to CITY under this agreement. Nothing herein is intended to prohibit CORPORATION from applying for, and receiving, supplementary funding from other than CITY sources so long as any agreement required for such funding does not materially interfere with or inhibit the full performance of the services to be provided by CORPORATION under this agreement. CORPORATION is specifically encouraged to seek such supplementary funding. (18) INTEREST OF CORPORATION. CORPORATION covenants that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the services hereunder. CORPORATION further covenants that, in the performance of this agreement, no subcontractor or person having such an interest shall be employed. It is expressly agreed that, in the performance of the services hereunder, CORPORATION shall at all times be deemed an independent contractor and not an agent or employee of CITY. Revised 9/1/2010 Page 18 of 23 (19) ASSIGNMENT. Both parties shall give their personal attention to the faithful performance of this agreement and shall not assign, transfer, convey, or otherwise dispose of this agreement or any right, title, or interest in or to the same or any part thereof without the prior written consent of the other party, and then only subject to such terms and conditions as the other party may require. Consent to one assignment shall not be deemed to be consent to any subsequent assignment. Any assignment without such approval shall be void and at the option of the other party, shall terminate this agreement and any license or privilege granted herein. This agreement and interest herein shall not be assignable by operation of law without the prior written consent of the other party. (20) SUBCONTRACTORS: EMPLOYEES. CORPORATION shall be responsible for employing or engaging all persons necessary to perform the services of CORPORATION hereunder. No subcontractor of CORPORATION will be recognized by CITY as such, rather, all subcontractors are deemed to be employees of CORPORATION and it agrees to be responsible for their performance. CORPORATION shall give its personal attention to the fulfillment of the provisions of this agreement by all of its employees, participants, volunteers, and subcontractors, if any, and shall keep the work under its control. (21) INDEMNITY. CORPORATION hereby agrees to indemnify and hold harmless CITY, its officers, agents, and employees of and from: (a) Any and all claims and demands which may be made against CITY, its officers, agents, or employees by reason of any injury to or death of any person or damage suffered or sustained by any person or corporation caused by, or alleged to have been caused by, any act or omission, negligent or otherwise, of CORPORATION, its officers, employees, agents, participants, volunteers, or any subcontractor under this agreement or of any of subcontractor's employees or agents. (b) Any and all damage to, loss or destruction of the property of CITY, its officers, agents, or employees occupied or used by or in the care, custody, or control of CORPORATION caused by any act or omission, negligent or otherwise, of CORPORATION, its officers, employees, agents, participants, volunteers or any subcontractor under this agreement. (c) Any and all claims and demands which may be made against CITY, its officers, agents, or employees by reason of any injury to or death of or damage suffered or sustained by any employee, participant, volunteer, or agent of CORPORATION or any subcontractor under this agreement, however caused, excepting, however, any such claims and demands which are the result of the sole negligence or willful misconduct of CITY, its officers, agents or employees. (d) Any and all claims and demands which may be made against CITY, its officers, agents, or employees by reason of any infringement or alleged infringement of any copyright or trademark caused by or alleged to have been caused by CORPORATION or any subcontractor under this agreement. Revised 9/1/2010 Page 19 of 23 (e) Any and all penalties imposed or damages sought on account of the violation of any law or regulation or of any term or condition of any permit in connection with this Agreement. (f) CORPORATION at its own cost, expense and risk shall defend any and all suits, actions, or other legal proceedings that may be brought or instituted by third persons against CITY, its officers, agents, or employees on any such claim or demand referred to in Paragraphs (a), (b), (c) and (d) above, of such third persons, or to enforce any penalty referred to in Paragraph (e) above and pay and satisfy any judgment or decree that may be rendered against CITY, its officers, agents, or employees in any such suit, action, or other legal proceeding. (g) Any and all claims and demands which may be made against CITY, its officers, agents or employees for any loss or damage to materials and equipment owned, rented or borrowed by CORPORATION, its employees, subcontractors, participants, volunteers, sponsors or any others under its project management. (22) INTOXICATION. CORPORATION agrees to be responsible for injuries or damage caused by any of its employees, agents, patrons, subcontractors, or volunteers under the influence of alcohol, drugs, hallucinogens or narcotics, whether or not legally prescribed. CORPORATION as well as CITY shall not permit any of CORPORATION’S employees or volunteers discovered to be under the influence from remaining in any facility used under the terms of this contract and CITY reserves the right of denying such persons further participation in Theatre activities. Consumption of alcoholic beverages or use of illegal drugs is expressly forbidden by any person working for the CORPORATION, paid or volunteer. This includes all staff, actors, crew and musicians while at the Lucie Stern Community Center or any other CITY facility. (23) WORKER'S COMPENSATION. CORPORATION certifies that it is aware of the provisions of the Labor Code of the State of California, which requires every employer to be insured against liability for workers' compensation or to undertake self insurance in accordance with the provisions of the code, and it certifies that it will comply with such provisions before commencing the performance of the work of this agreement. (24) INSURANCE. CORPORATION, at its sole cost and expense, shall obtain and maintain in full force and effect throughout the entire term of this agreement insurance coverage insuring not only Contractor and its subcontractors, if any, but also, with the exception of workers' compensation and employer's liability insurance, CITY, its officers, agents, and employees and each of them. CITY is to be named as co-insured with liability coverage of at least one million dollars ($l,000,000.00) to be attached to this agreement prior to its final approval. Certificates of such insurance shall be filed with CITY concurrently with the execution of this agreement. Said certificate shall be subject to the approval of the City Attorney and shall contain an endorsement stating that said insurance is primary coverage and will not be canceled or altered by the insurer except after filing with the City Clerk Revised 9/1/2010 Page 20 of 23 thirty (30) days' written notice of such cancellation or alteration. Current certificates of such insurance shall be kept on file at all times during the term of this agreement.(25) WEAPONS. No firearms or other weapons, whether loaded or not, shall be allowed in the Lucie Stern Community Theatre or on any other CITY property. Stage weapons and firearms designed solely for the use of blank cartridges will be allowed if they are being used as a prop in the current production but must be stored, when not being used, in a secure manner by the CORPORATION’S stage manager or his/her designee. (Please reference the CITY’S Danger Policy, Appendix K) (26) LEGAL COMPLIANCE. CORPORATION and all its paid employees, subcontractors, and volunteer participants are required to abide by all Federal, State and Local laws and ordinances. Revised 9/1/2010 Page 21 of 23 EXHIBIT D NON-DISCRIMINATION FORM Certification of Nondiscrimination: As suppliers of goods or services to the City of Palo Alto, the firm and individuals listed below certify that they do not discriminate in employment with regards to age, race, color, religion, sex, national origin, ancestry, disability, or sexual preference; that they are in compliance with all Federal, State, and local directives and executive orders regarding nondiscrimination in employment. THE INFORMATION HEREIN IS CERTIFIED CORRECT BY SIGNATURE(S) BELOW. Firm: Signature: Name: Signature: Name: Note: California Corporations Code Section 313 requires two corporate officers to execute contracts. *The signature of First Officer* must be one of the following: Chairman of the Board; President; or Vice President. **The signature of the Second Officer** must be one of the following: Secretary; Assistant Secretary; Chief Financial Officer; or Assistant Treasurer. (In the alternative, a certified corporate resolution attesting to the signatory authority of the individuals signing in their respective capacities is acceptable) Revised 9/1/2010 Page 22 of 23 EXHIBIT E INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 NO PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: Revised 9/1/2010 Page 23 of 23 A. A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303 POLICY AND PROCEDURES 1-25/MGR REVISED: AUGUST 2007 1 PUBLIC/PRIVATE PARTNERSHIPS POLICY STATEMENT The City of Palo Alto encourages the formation of public/private partnerships for the benefits the community receives. For the purposes of this policy, “public/private” also encompasses “public/nonprofit” partnerships. Definitions Public/private partnership:A public/private partnership is an agreement between the City and a nonprofit or private organization to provide services or to assist in funding of public facilities and programs. Such partnerships may take various forms, including: Acceptance of or solicitation of service or facility proposals Facilitation of such proposals through the City's regulatory process Waiver of City General Fund fees to help reduce project costs. Contributions of City matching funds for construction of facilities to be owned and controlled or operated by the City. Provision of facilities to the private partner at no charge or at a subsidized rent. Public/private partnerships typically fall into one of three categories: co-sponsorship, alliances or joint ventures. Co-Sponsorships:This is the most common type of public/private partnership. An organization furthers the mission of the City by supporting a City activity or program in conjunction with pursuit of that organization’s own mission or program. Co-sponsorships can take the form of one-time events or annual agreements. Some examples of co-sponsorships include the Palo Alto Tennis Club use of City courts to provide a youth tennis program and American Youth Soccer Organization’s use of space in a City facility to train referees. Co- sponsorships are entered into by staff and normally have no or minimal financial impact. Alliances:This type of public/private partnership involves organizations that have been created for the sole purpose of supporting a City program or an array of City programs. The organization does not expect to receive any direct financial benefit or to alter City policy and/or operations, but undertakes to work closely and cooperatively with staff to implement City goals. Alliance organizations include the Recreation Foundation, the Art Center Foundation (Project Look or Cultural Kaleidoscope), the Friends of the Children’s Theatre (the Magic Castle), the Library Foundation and the Friends of the Palo Alto Library (financial assistance with the renovation and expansion of the Children’s Library). Alliances are approved by the Council if there are any staffing or budgetary implications to the partnership. POLICY AND PROCEDURES 1-25/MGR REVISED: AUGUST 2007 2 Joint Ventures: This type of partnership involves organizations which have programs or missions independent of the City and involve the City entering into a contractual relationship with the public or nonprofit organization with both parties contributing to the partnership for their mutual benefit. Each joint venture is uniquely negotiated by the staff and approved by the City Council. Examples of Joint Ventures include TheatreWorks, Palo Alto Players and West Bay Opera’s use of the Community Theatre and use of the former police station by older adult service provider, Avenidas. PROCEDURES Initiation of partnerships:Public/private partnerships may be initiated in one of three ways: By staff: Staff identifies an opportunity for such a partnership and undertakes an informal or formal request for proposal process to identify partners. By Council: The City Council directs staff to work with a private or nonprofit organization to develop such a partnership. By a private or nonprofit organization:An organization makes a partnership proposal to the staff or City. City Manager Review:If the partnership proposal involves more than one City department, the City Manager’s Office will appoint a team with representatives of all City departments who are stakeholders in the partnership proposal. The team will analyze the proposal and inform the City Manager of the resource implications of the proposal, including staffing and monetary commitments. This would include proposed fee waivers. If the proposal will require a re-ordering of department priorities that have already been approved by the Council in setting its annual priorities or in the budget process, Council approval will be required prior to commitment to the partnership. Council approval will also be required if the partnership requires a new or adjusted allocation of operating or capital funding. Note: Co-sponsorships usually only involve a single department and do not necessitate the formation of an interdepartmental committee, the involvement of the City Manager’s Office or the approval of the City Council. City-Initiated Partnerships:Such partnerships will be guided by existing policies and procedures governing purchasing and outsourcing, using “requests for proposals” and/or bid processes as the method of initiating a partnership. A City-initiated partnership may incorporate incentives including naming rights, waiver of non-enterprise fund building and planning fees, reduced lease rates, free use of space, subsidies, and staff resources. All incentives may be negotiated on a case-by-case basis. POLICY AND PROCEDURES 1-25/MGR REVISED: AUGUST 2007 3 Evaluation of Viability of Partnering Organization:Staff will provide the City Manager and/or City Council with its assessment of the viability of the proposed partnership, based on the partnering organization’s possession of sound organizational, administrative and fiscal management, and its demonstrated experience to achieve and sustain project tasks, such as fundraising and building community support. For proposed facility improvement or expansion initiatives, the nonprofit or private organization should have the ability and commitment to make a substantial pledge to the project’s cost. Facilities Proposals: If a City facility is to be renovated, expanded or otherwise be directly affected by the partnership, the Infrastructure Management Plan will have to be adjusted appropriately. Long-term staffing, operational and maintenance costs must be identified in the proposal.The project’s applicable costs and funding sources for furnishings, fixtures and equipment will be identified. The parties will negotiate the joint or separate financial responsibility for any project cost overruns on a project-by-project basis. Staff may recommend that any standard City processing or use fee authorized under the Municipal Fee Schedule, excluding fees and charges levied by City of Palo Alto Utilities or other City enterprise fund programs, should be waived as a condition of the City's participation. Waiver of fees may be granted by the Council and limited to those fees associated with a construction or capital improvement project which, upon its completion, results in a new or improved public facility, building or park, or some portion thereof, that will be solely owned or controlled by the City. In the event that only a portion of a construction or capital improvement project will result in a new or improved City facility, building or park, or portion thereof, then the Council may waive only that portion of any associated fee directly relating to the construction, improvement or enhancement of the City facility, building or park.As appropriate, the summary and recommendation in the report to the Council will include a staff recommendation on waiving fees which the Council can approve or reject. The City will determine whether the nonprofit or private organization shall use or may forego a formal or informal competitive selection process in the hiring of professionals who will perform the management, design and/or construction phases of the project. The City shall review and approve the requirements for and the performance of all phases of design, planning and construction work for the project. City of Palo Alto (ID # 4433) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/27/2014 City of Palo Alto Page 1 Summary Title: TheatreWorks Partnership Agreement Title: Approval of the Renewal of a Public-Private Partnership Agreement Between the City of Palo Alto and TheatreWorks for the use of the Lucie Stern Community Theatre From: City Manager Lead Department: Community Services Recommendation Staff recommends that City Council approve the renewal of a public-private partnership agreement between the City of Palo Alto and TheatreWorks for the use of the Lucie Stern Community Theatre (Attachment A). Background The Lucie Stern Community Theatre is used by three local theatre companies which produce approximately 15 productions annually. These three companies (TheatreWorks, the Palo Alto Players, and West Bay Opera) partner with the Community Services Department to produce these shows, which foster the cultural and artistic needs of Palo Alto residents and visitors. The City and these companies each benefit from continuing this relationship. TheatreWorks was founded by San Francisco Bay Area native Robert Kelley in 1970 as a theatre arts workshop for teenage and college students. Chartered by the City of Palo Alto to produce work that would reflect the concerns of the community during an unsettled period in American life, the company produced thirteen wholly original works for the stage in its first three years. Although company actors initially performed in a variety of venues, a tradition was established of staging several shows each season at the Lucie Stern Theatre. When the Mountain View Center for the Performing Arts opened in 1991, the company began producing five main stage productions there each season, along with three productions each season at the Lucie Stern Theatre in Palo Alto. This schedule continues today. City of Palo Alto Page 2 Discussion TheatreWorks’ usage of the Lucie Stern Community Theatre is governed by a public-private partnership agreement. Production scheduling is done interdependently between the three groups, and as the cost of relocating a theatre company is prohibitively high, there exists nearly no opportunity for changing the companies that the Lucie Stern Community Theatre serves. Therefore, staff recommends that the City Council approve renewal of the existing public private partnership. The key terms of this agreement are discussed below: Term: The new agreement is for one year effective from November 4, 2013 until June 30, 2014. Similar agreements are intended for subsequent years. Revenue: In accordance with the Municipal Fee Schedule and in exchange for providing facility usage, TheatreWorks shall continue to remit to the City a $2.00 surcharge for each ticket sold. This fee is effectively passed on to patrons and is applied to all subscription, group, individual, promotional, and other tickets sold. Complimentary tickets are excluded, and the sum of the surcharge revenue for each production is due to the City within 30 calendar days after the closing of the production. The City retains roughly $60,000 per year from this ticket surcharge in total from the three theater partnerships. Among other functions, the proposed agreement acts as a revenue contract which governs the application, collection, and accounting of associated revenue. Responsibilities of City: The contract outlines the responsibilities of the City, using the standard terms of public-private and joint-venture partnerships, including specifying goods delivery terms, notice requirements for contract termination, and affirming non-discrimination, insurance, and property guidelines. The City is also responsible for allowing and providing access to the Lucie Stern Community Theatre during designated hours, providing basic maintenance of capital equipment, monitoring production safety, and providing information regarding other scheduled facility uses (such as City-sponsored events or private rentals). Responsibilities of Company: Additionally, the agreement stipulates the responsibilities of the theatre company, including their duty to abide by City and department policies and procedures (specifically including and as related to, without limitation, conduct in community centers, injury and illness prevention, sale of alcoholic beverages, operations, building emergency procedures, zero waste, and facility use). Other responsibilities include timely remittance of fees and surcharges, requirements for sufficient building supervision/staffing, recordkeeping of ticket sales and surcharge remittance for compliance with audits, and adherence to standard practices for facility security. This renewed agreement is substantially similar to previous agreement. The $2.00 ticket City of Palo Alto Page 3 surcharge is consistent with the Municipal Fee Schedule adjustments effective 07/01/2012. Resource Impact No additional City resources are required as a result of the renewal of this agreement and it is anticipated that this partnership will lead to enhanced program and capital funding over the life of the agreement. Policy Implications This partnership would be categorized as a Joint Venture partnership under the City’s Public- Private Partnership Policy (Policy 1-25; Public-Private Partnerships; Attachment B). The partnership with TheatreWorks furthers Policy C-7 of the Community Services element of the Comprehensive Plan: “Actively work with private, nonprofit, and public community service organization to avoid duplication and to coordinate the delivery of services like child care, senior services, and recreation” and Policy G- 12 of the Governance element: “Continue and expand the opportunities for public and nonprofit organizations serving the City to provide information about themselves to the public.” Attachments:  TheatreWorks Community Theatre Agreement (PDF)  Public Private Partnership Policy (PDF) Page 1 AGREEMENT FOR PERFORMING ARTS SERVICES THIS AGREEMENT FOR PERFORMING ARTS SERVICES (“Agreement”) is made and entered into as of the 15th day of January , 2014 by and between THE CITY OF PALO ALTO, a municipality chartered under the laws of the State of California (“City”) and THEATREWORKS, a California nonprofit public benefit corporation, located at 350 Twin Dolphin Drive, Redwood City, California (telephone: 650-463-1950) (“Contractor”) (individually, a “Party” and, collectively, the “Parties”). In consideration of their mutual covenants, the Parties hereby agree as follows: 1. SERVICES: During the Term of this Agreement, as defined in Section 5 below, Contractor shall present that portion of Contractor’s 2013-2014 theatrical performances (the “Services”) that are produced at City’s Lucie Stern Community Center. 2. FACILITY: For purposes of this Agreement, the defined term “Facility” is deemed to mean those portions of the Lucie Stern Community Center comprising the theatre, lobby, green room, dressing rooms, scene shop, paint shop, light and sound booth, flat storage, rehearsal hall and costume shop. 3. FEE: Pursuant to the Municipal Fee Schedule (Exhibit G), the services to be performed under this Agreement constitute a “Class I” use of the Facility. 4. EXHIBITS: The Exhibits listed below, Appendices A through L and Attachments 1 through 5 are attached hereto and are incorporated herein by this reference. The Parties acknowledge that this Agreement shall have no force or effect unless all such Exhibits, Appendices and Attachments are attached hereto. Exhibit A: Responsibilities of Contractor Exhibit B: Responsibilities of City Exhibit C: General Conditions Exhibit D: TheatreWorks Addendum Exhibit E: Non-Discrimination Form Exhibit F: Proof of Liability Insurance Exhibit G: Municipal Fee Schedule Exhibit K: City of Palo Alto Non-discrimination Policy 5. TERM: The services under this Agreement shall commence as of January 15, 2014 and shall terminate on June 30, 2014 (the “Term”). 6. COMPENSATION: During the Term, Contractor shall pay City: (a) Two Dollars ($2.00) for each ticket sold and (b) compensation for the Facilities Attendant present at each performance, at prevailing rates as set forth in the Municipal Fee Schedule, a copy of which is attached hereto as Exhibit G. Contractor shall send payment in accordance with Exhibit C to City, Attn: Project Manager. 7. HOLD HARMLESS: Contractor shall indemnify, defend and hold harmless City, its Page 2 Council Members, officers, employees and agents from and against any and all demands, claims or liability of any nature, including wrongful death, caused by or arising from the acts, errors, omissions, willful misconduct, or gross negligence during the Term by Contractor, its officers, directors, employees, subcontractors or agents, except to the extent such demands, claims or liability of any nature arise from the acts, errors, omissions, willful misconduct, or gross negligence of City, its Council Members, officers, employees, contractors or agents. 8. ENTIRE AGREEMENT: This Agreement and the terms and conditions set forth in the attached Exhibits, Appendices and Attachments represent the entire agreement between the Parties with respect to the Services. All prior agreements, representations, statements, negotiations and undertakings whether oral or written are superseded hereby. 9. QUIET ENJOYMENT: Contractor, upon payment of the consideration required hereunder and Contractor’s performance of all obligations of Contractor hereunder and Contractor’s observance of City’s policies referenced herein, shall and may peacefully and quietly have, hold and enjoy the Premises during the Term. IN WITNESS WHEREOF, THE PARTIES HAVE EXECUTED THIS AGREEMENT THE DAY, MONTH, AND YEAR FIRST WRITTEN ABOVE THE City OF PALO ALTO, a municipality chartered under the laws of the State of California THEATREWORKS, a California non-profit public benefit corporation By: __________________________________ By: __________________________________ Judge Luckey Phil Santora Its: PROJECT MANAGER AND REPRESENTATIVE FOR City Managing Director I.R.S. Number: 94-2831245 Address: P.O. Box 10250 Palo Alto, CA 94303 Telephone: (650) 329-2519 City OF PALO ALTO APPROVALS: (ROUTE FOR SIGNATURES ACCORDING TO NUMBERS IN APPROVAL BOXES BELOW) City DEPARTMENT  Funds Have Been Budgeted (1) PURCHASING & CONTRACT ADMINISTRATION INSURANCE REVIEW (2) APPROVAL OVER $25,000 (3) PURCHASING MANAGER APPROVAL OVER $25,000 APPROVAL OVER $85,000 City OF PALO ALTO BY:_____________________________________ City ATTORNEY ATTEST: BY:________________________ _______________________ MAYOR City CLERK Page 3 EXHIBIT A RESPONSIBILITIES OF CONTRACTOR During the Term, Contractor shall: (1) Abide by the policies/procedures established by City and City’s Arts and Sciences Division and the Department of Community Services for the use of City facilities, equipment, costumes, props, furniture, scenery and other production elements. These shall include, but are not limited to, Regulations of the City of Palo Alto Regarding Prohibited Conduct In Community Centers and Theaters (Appendix A), the City of Palo Alto Injury and Prevention program (Appendix B), Policy for Sale of Alcoholic Beverages (Appendix C), Operations Manual (Appendix D), Safety Procedures and Guidelines (Appendix E), Building Emergency Procedures (Appendix F), procedure for adjusting the Forestage height, including use of the Scissor lift (Appendix G), House Manager's Guide (Appendix H), Zero Waste Plan (Appendix I), Costume Room Guidelines (Appendix J), City Report of Accident/Property Damage (Appendix K), and City’s Danger Policy (Appendix L). Follow safety procedures for the use of power and hand tools, mechanical lifts, etc. including the use of safety goggles, ear protection, face shields, safety cables, outriggers, etc. (2) Obtain, supervise, and pay all necessary related fees for the services of all professional assistance needed to produce Contractor’s productions (the “Productions.”) Such assistance may include, but is not limited to the following: Production Directors, all Designers, Carpenters, Painters, Production Assistants, Music Directors, Choreographers, Musicians and other Front of House, Artistic or Administrative personnel. (3) Pay all fees and costs for materials, supplies, scripts, royalties, licenses and other fees and expenses connected with the Productions, including all make-up removal supplies. (4) Bear sole responsibility for the control and supervision of all production activities and personnel connected therewith, and notify all personnel of their obligations and responsibilities pertaining to their respective responsibilities, having primary responsibility for building security when Contractor is occupying City facilities. (5) Provide Project Manager or his/her designee with a list of all pyrotechnic effects (including the use of open flames), all hydro technical effects, all use of fog or haze, all loud noises (e.g., gunshots), and all use of strobe lights at least twenty-one (21) days prior to first use on stage. No flames shall be permitted on stage without the required fire permits from City. Smoking by any of the actors on stage as an integral part of the Production is deemed a pyrotechnic effect. Safety precautions approved by a City Fire Inspector and Project Manager or his/her designee will be taken when smoking is occurring on stage, and the audience shall be notified beforehand that smoking, loud noises (e.g., gunshots) or use of strobe lights will occur on the stage. All Fire Department fees for “Open Flame Permits” and “Candles and Open Flames in Assembly Areas Permits” shall be the responsibility of Contractor. (6) Provide Project Manager with the rehearsal schedule, performance schedule, shop Page 4 schedule and any requests for the use of City facilities (including but not limited to the Facility, as defined in Article 2, rooms located in the Lucie Stern complex and the Lucie Stern Courtyard and patio) for any purpose. Space reservations for the Facility are specified in Attachment 1. Space reservations for rooms other than the Facility should be made at least six (6) weeks in advance. No performance shall begin earlier than 9:00 a.m. nor end later than midnight. In no event shall Contractor conduct rehearsals or other activities, or otherwise occupy City facilities from 12 midnight to 8:00 a.m. unless prior written permission is obtained from Project Manager or a designated employee of City is on site. Contractor shall observe all facility security rules and regulations as established by City (Appendix A). (7) Designate as Project Director for the length of this Agreement an employee or sub- contractor to manage or supervise all areas, Contractor personnel and Contractor property in this Agreement, including production, technical, house personnel and any and all support groups and to be Contractor’s liaison with Project Manager or his/her designee in all matters relating to the City in any way. (8) Arrange for auditions and casting for the Productions and have sole responsibility for the supervision and control of all performers. With respect to casting, Contractor shall have sole discretion to choose and approve the qualifications and select the cast. In personnel decisions, Contractor shall agree to and comply with the provisions of the City’s non- discrimination policy (Exhibit K). (9) Engage the services and train crew members in appropriate areas of theatre production activity and utilize crew members in a safe and effective manner in the presentation of the Productions. Contractor shall be solely responsible for the control and supervision of such participants and shall indemnify, defend, and hold harmless the City from and against any claims or liabilities arising from the acts or omissions of such personnel. All such personnel shall be deemed the sole agents and employees of Contractor and shall be notified by Contractor of this circumstance. (10) Exercise safe practices in the use of City facilities and equipment, maintain and clear work areas, and, within twenty-four (24) hours, report, on a form provided by City (Appendix K), information regarding accidents. Immediately report to Project Manager or his/her designee on a form provided by City any breakage, malfunction, deterioration or loss of any of the City’s resources (including musical instruments, tools, lights, sound equipment, props, curtains, etc.). Contractor shall not attempt repair of City equipment without prior consultation with the Project Manager. Contractor shall immediately discontinue any activity in which an unsafe or dangerous condition exists. Contractor shall train and supervise Contractor’s staff and volunteers on safe theatre practices and adhere to City’s safety procedures and guidelines. If, in the opinion of any City or Contractor employee, Contractor is conducting an activity in an unsafe manner, Contractor or its agents shall be informed and shall immediately discontinue such activity until such activity is able to be conducted in a safe manner approved by City staff. (11) In conformance with the Americans with Disabilities Act (ADA) of 1990 guidelines and requirements, Contractor shall bear responsibility for providing appropriate auxiliary Page 5 aids, interpretive services and accommodations where they are necessary to achieve an equal opportunity for patrons to participate in and enjoy the benefits of public performances produced under the Agreement. Printed programs shall include the following statement required by the Americans with Disabilities Act: "Persons with disabilities who require information on 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: ADA Coordinator, City of Palo Alto, 650-463-4952 (Voice) or ada@Cityofpaloalto.org (Internet). (12) Maintain its existence as an independent, non-profit corporation under the laws of the State of California. (13) Submit all signs or displays to be located on or in the Facility to Project Manager or his/her designee for approval at the first production meeting. All displays may be put up at load-in and must be removed during strike. Inside the Facility, no display materials may be placed upon stucco walls. Lobby displays may be placed only on the lobby display boards, and all fasteners must be removed at the time display is taken down. Nothing may be posted on the exterior walls or doors of the Facility or in the Stern courtyard, except for items in the display case and an approved production name sign hung from the theatre balcony. Marquee signs must be constructed of light weight material, and shall be secured in such a way that the sign is unlikely to become dislodged by normal vibration or seismic activity. Signs shall be of a standard size no larger than ten feet in length and eight feet in height. All marquee signage must be attached to the theatre balcony with rigging so that the sign may be easily removed for limited periods during photography shoots, special events, or building maintenance. (14) Clean and clear the auditorium, stage, paint shop, scene shop, flat dock, and costume shop, green room, dressing rooms, rehearsal hall, hallways and outdoor areas adjacent to theatre and shop. Disassemble and store, to Project Manager’s or his/her designee’s reasonable satisfaction, scenery, properties, and other production elements, within six hours after the final performance or on such other time schedule mutually agreed upon between Contractor and Project Manager or his/her designee and the incoming authorized user of the facilities, if any. The stage shall always be returned to its basic set-up as established by Project Manager or his/her designee unless there is a mutual agreement with the incoming group that has been approved by Project Manager or his/her designee. All items on the STRIKE CHECKLIST are to be performed unless there is a mutual agreement with the incoming group that has been approved by the Project Manager or his/her designee. The Project Manager or his/her designee will sign a copy of the STRIKE CHECKLIST form at the completion of the strike to signify acceptance of clean and neat facilities. (15) Leave storage, paint, scene, and costume spaces clean and clear of Contractor’s materials other than those materials necessary for the ongoing maintenance and repair of the sets and costumes by the Monday following opening performance. (16) Leave all spaces clear, clean and orderly at the end of each use. Rehearsal Hall is to be cleared of all materials, except major set pieces and any rehearsal props, after each daily Page 6 use. Rehearsal Hall is to be completely cleared within twenty-four (24) hours of final use. Kitchen, restrooms and dressing rooms are to be cleaned and cleared after each daily use. Trash, recycling and compostable materials are to be removed from all areas daily. Recyclables and compostable materials are to be placed in the recycling and composting carts near the trash dumpster and garbage and trash are to be placed into the dumpster. Contractor is required to reduce waste, reuse and recycle per the City’s Zero Waste Plan (Appendix I). Office space and hallways are to be kept continually clear, clean and orderly and neither space shall be used for the purpose of set, prop, or costume storage. Materials may not be left or stored any place out-of-doors overnight or when unattended by Contractor’s personnel. (17) Enforce current regulations as established by City with regard to smoking, food and drink in City facilities (Appendix A). Contractor shall provide ushers at all previews and performances to enforce such regulations. Smoking is not permitted inside any City facility. No person shall bring any animal into the theatre. This regulation shall not apply to service animals assisting individuals with disabilities or to animals in training to become service animals. Use of animals on the stage is subject to approval by Project Manager or his/her designee. Food and drink are not permitted in the auditorium, light/sound booth or on stage, unless used as part of a production scene. Food and drink shall be permitted only in approved areas such as the green room and lobby. Contractor shall clean up all food and drink containers daily after use. (18) Contractor will be responsible for cleaning the Lucie Stern hallway restrooms for weekend performances. (19) Comply with City TB test requirement for employees and volunteers of Contractor at any time the City Risk Manager deems it necessary. If minors are involved in the Production, Contractor shall comply with all of the State of California’s rules and regulations regarding Child Labor. (20) Comply with City sound ordinance levels for any outdoor activities, including load-in, strike, dismantling, or disposal. Shop doors facing Hopkins and Harriet Streets shall be closed between 8:00 p.m. and 8:00 a.m. (21) In addition to the Facilities Attendant referenced in Section 5 of the Agreement, pay any additional Attendant according to prevailing rates as set forth in the Municipal Fee Schedule attached as Exhibit G, pursuant to the following (a) For a period of one (1) hour prior to until at least one half (1/2) hour after the completion of each Performance listed in TheatreWorks Production and Exclusive Use Schedule, 2013 – 2014 (Attachment 1). (b) For any Performance not included in Attachment 1, Contractor may add additional performances of the Productions listed in Attachment 1 upon thirty (30) days’ advance notice to City. (c) When using other City facilities at the same time as a Performance listed in ATTACHMENT 1. Page 7 (22) Provide house manager and ushers for every Performance or event whenever the public is in attendance. Contractor shall only engage the services of ushers have been trained in theatre emergency, safety and use procedures usher. Contractor shall submit a list of its trained personnel to Project Manager prior to public performances for each Production. Ushers must be available to assist patrons under all circumstances and must be aware of and able to assist disabled persons. Contractor’s House Manager and ushers must also be available to assist in emergency situations throughout the entire Performance until the audience has left the theatre. Ushers must ensure that wheelchairs, walkers, etc. are not blocking any of the aisles or exits. Ushers shall return seats to the upright position and remove litter from the auditorium and restrooms at the conclusion of each performance. (23) Install and/or remove the removable auditorium seats in designated areas to accommodate wheelchair patrons and as required due to the needs of the Production. (24) Remove from the Facility, at the conclusion of each Production, costumes, properties and sets created by Contractor with Contractor-owned materials, which costumes, properties and sets will remain the property of Contractor. All office equipment, construction tools, special effects and lighting equipment purchased and owned by Contractor will remain the private property of Contractor and City assumes no responsibility or liability for the loss or maintenance of such materials. All equipment, instruments, costumes and any other materials rented, borrowed or owned by any subcontractor, agent or person for Contractor is the responsibility of Contractor and/or its subcontractors, and City assumes no responsibility or liability for their maintenance or loss. Contractor assumes all liability and responsibility for any default on Production expenses. (25) Replace or repair or cause to be replaced or repaired by factory authorized technicians City-owned equipment, instruments or materials identified by Project Manager or his/her designee as having been lost, damaged or destroyed by Contractor or its agents. A written report must be made on a City form whenever City equipment is lost, damaged, or destroyed by Contractor. (26) Upon written application to Project Manager or his/her designee and upon express approval and written authorization of Project Manager or his/her designee, use City- owned properties, sets, costumes, scenery, furniture and equipment for Productions not scheduled in the Agreement. Approval, if any, shall be given to Contractor in writing. In the event any of such items are damaged or destroyed, Contractor shall bear responsibility for the repair or replacement of such items to the reasonable satisfaction of Project Manager. (27) Upon written application to Project Manager or his/her designee at least sixty (60) days prior to the applicable date, request approval to use the Facility for classes, camps or workshops. No later than thirty (30) days prior to the applicable date, the Project Manager or his/her designee shall deliver to Contractor in writing his/her approval or disapproval. Failure to respond shall be deemed approval. In the event of disapproval, then he/she shall briefly explain the reasons therefor. No such activity will be advertised or promoted until it has been approved by the Project Manager or the time for review has passed, whichever occurs first. Page 8 (28) Comply with all State and City laws relating to the sale and consumption of alcoholic beverages. Alcohol is permitted at the Facility if approved by Project Manager, whose approval will not be unreasonably withheld. Unless otherwise specifically permitted and pursuant to City policy, the only alcoholic beverages that may be sold or served at City facilities are wines, including champagne and sparkling wine. If alcoholic beverages are to be sold or distributed free of charge, Contractor must possess a valid On-Sale General Theatre License for the Facility. [TW COMMENT: This is the type of license that is required.] A copy of Contractor’s permit for the sale or distribution of alcoholic beverages shall be provided to Project Manager. Proof of liquor liability insurance where City is named as co-insured with liability of at least One Million Dollars ($l,000,000.00) shall be required. Permits are to be displayed as required by law. It is the responsibility of Contractor to ensure that no alcoholic beverage is served to a minor. Identification must be checked if the person appears to be under thirty (30) years of age. After each performance, Contractor shall remove all items, including cups, glasses, bottles, napkins and food from the lobby and other areas within the Facility as well as the courtyard. Contractor is required to adhere to City’s Recycling and Zero Waste Program (Appendix I). (29) Shall cause to have present at the Facility at all times when Contractor or any of its employees, subcontractors or volunteers is in the Facility one of Contractor’s designated and City-approved key and/or proximity card holders. Any exceptions to the foregoing requirement must be approved, in writing, by Project Manager or his/her designee. Any exceptions must be approved by Project Manager or his/her designee in writing. (30) Prevent any modifications of a permanent or disfiguring nature of or to the Facility. Contractor may not install or attach anything in or on the Facility without having first submitted a written request to Project Manager and having received written permission from Project Manager or his/her designee. The approval of Project Manager does not relieve Contractor from any responsibility to obtain necessary City permits or Building Department approvals for the modification. Should Contractor violate the provisions of this Paragraph (30), Contractor shall be charged for all repairs necessary to restore the Facility to its original condition and for any additional costs arising from such violation. (31) Immediately report to the police any incidents of a criminal or suspicious nature occurring on City property, and notify Project Manager or his/her designee within twelve hours. If initial notification is verbal, Contractor must subsequently submit the information in writing to Project Manager or his/her designee on a form provided by City. (32) Ensure that the doors to the Scene Shop, Rehearsal Hall, and Costume Shop, as well as any other exterior access doors to any area of the Facility, are not left open, unlocked or left with the locking mechanism disabled, even if only briefly, at any time when the immediate area secured by the door is unoccupied by Contractor. Failure to do this may result in the imposition of greater restrictions imposed on Contractor for access to the Facility, including the possible forfeiture of keys/proximity cards by Contractor and/or restricted access times. Page 9 (33) Complete a City Report of Accident/Property Damage report (Appendix K) for any and all accidents, injuries or property damage if a City employee is not present to fill out the report. (34) Operate and conduct business in compliance with City’s Zero Waste Plan (Appendix I) for all activities including, but not limited to, set construction and strike, food and beverage service, and office activities. The City Recycling Program department can assist with resources for achieving this goal. The goal is to send as little waste to landfill as possible through waste reduction, reuse and recycling. To achieve this goal Contractor must first reduce waste whenever possible. (35) Avoid the use for food/beverage service of disposables, including, but not limited to, Styrofoam and other plastics. Reusable food/beverage service ware should be utilized to the maximum extent possible. Where a reusable food/beverage service option is not available, Contractor shall choose items that are recyclable. For concessions, choose product packaging that is recyclable. (36) Practice reuse before, during and after Production. City shall provide a list of reuse resources to avoid the disposal of construction materials, sets and props. Contractor must recycle construction debris from set materials (e.g. wood, metal). (37) Recycle all materials included in the City’s Recycling Program including paper (all types), plastic containers #1-#7, cardboard, glass bottles and jars, and metal cans. Compostable materials will be disposed of in designated compost waste receptacles. (38) Include on the title page of all production and event programs the following credit: “Use of this facility is made possible through support from The City of Palo Alto, Community Services Department, Division of Arts and Sciences,” and include the official City of Palo Alto logo on the title page or prominent placement within event programs; print in all publicity for the Productions, including, but not limited to, mailings, flyers, posters, brochures, and paid or public service advertising, the statement: “In cooperation with the City of Palo Alto Community Services Department, Division of Arts and Sciences.” The City of Palo Alto, Community Services Department, Division of Arts and Sciences shall also be credited in the Contractor’s list of funders as a “Civic Sponsor.” Page 10 EXHIBIT B RESPONSIBILITIES OF CITY During the Term, City shall: (1) Allow Contractor the exclusive use of the Facility, as defined in Article 2, as scheduled in Attachment 1 for the preparation and presentation of Productions performed under this agreement provided that Contractor submits specific rehearsal schedules, performance schedules and shop use schedules. Any use of City facilities and equipment other than those listed in the Agreement and the Exhibits thereto, which facilities and/equipment are nonetheless required to allow Contractor to perform its Services hereunder are subject to a different contract between City and Contractor. (“Non-Facility Contracts”). (2) Allow the use of the auditorium and the stage for performances and brush-up rehearsals within the period described in Exhibit A, Paragraph 6. (3) Allow the use of the exclusive use of the stage and the auditorium prior to the opening night of the Productions , with the exception of emergency maintenance procedures that may require access to the stage and auditorium during this period, according to the production schedule set forth in Attachment 1. Allow the use of the rehearsal hall, box office, scene shop, paint shop and costume shop according to the schedule as set forth in Attachment 1. Additional facility use may be provided as specified in item (Exhibit B (1); Exhibit A (27)) above; however, priority use of the room will always be given to actual rehearsals of productions covered by a contract with City. City reserves the right to allow other uses of space within the Facility when not in actual, scheduled use by Contractor on a non-interference basis and with at least seventy-two (72) hours’ prior notice to Contractor. (4) Allow Contractor to use all operational production equipment in City’s inventory as requested by Contractor and approved in writing by City. Contractor shall take such equipment "as is" and is responsible for ensuring that such equipment is in a safe condition prior to use and is returned in working condition at the conclusion of its use or of the Production. (5) Monitor all aspects of production with respect to safety issues (Appendix E). If Project Manager or any designee(s) deem(s) that any procedure followed by Contractor is unsafe, he or she has the authority to require the immediate suspension of such procedure. City and Contractor will work together to prevent or quickly mitigate any fire hazards or any items identified by the Fire Department during facility inspections. (6) Provide persons designated by Contractor and approved by Project Manager or his/her designee with keys, proximity cards (up to a maximum of six), and alarm codes for access to the Facility for the sole purpose of carrying out the requirements of the Agreement. Keys, proximity cards, and alarm codes shall not be loaned or transferred and shall be used only by the designated persons. In the event that Contractor fails to properly open or lock and secure City facilities leading to a false alarm call-out or leaves areas of the facility unlocked and unattended, a Two Hundred Dollar ($200.00) penalty Page 11 shall be paid to City on each such occasion. In the event that a designated key holder loses any key or proximity card issued by City, Contractor shall be assessed a Seventy- Five Dollar ($75.00) replacement charge for each key or proximity card or pay for the cost of rekeying or reprogramming the locks of the facility if circumstances indicate it as determined in City’s reasonable judgment. Contractor will be responsible and held accountable for all personnel, properties and activities of Contractor. (7) Have the right, with no notice, to suspend the Agreement if the Facility should be declared uninhabitable for reasons of safety by the proper authorities (e.g., if the building should be damaged in an earthquake and be declared unsafe for occupancy). If there is an outbreak of pandemic flu or other medical emergency and places of public gatherings are closed, City will not assume any financial responsibility for loss of revenue by Contractor. If the Facility is not available due to earthquake, other disaster, or safety related issues, City will not assume any financial responsibility for loss of revenue by Contractor. (8) Have the right to borrow available Community Theatre-owned properties, sets, costumes and scenery for productions scheduled in this Agreement. Costumes, properties and sets created by Contractor with Contractor-owned materials will remain the property of Contractor, and shall be removed from the Facility at the conclusion of the production in which the materials are used. The Project Manager or his/her designee may, on a case- by-case basis, authorize exceptions. All office equipment, construction tools, special effects and lighting equipment purchased and owned by Contractor will remain the private property of Contractor and the City assumes no responsibility or liability for the loss or maintenance of such materials. All equipment, instruments, costumes and any other materials rented, borrowed or owned by any subcontractor, agent or person for the Contractor is the responsibility of the Contractor and/or its subcontractors, and the City assumes no responsibility or liability for its maintenance or loss. Page 12 EXHIBIT C GENERAL CONDITIONS (1) City. The Manager Arts-Children’s Theatre is hereby designated Project Manager for City, who shall render overall supervision of the progress and performance of this Agreement by City. All City services set forth in this Agreement shall be performed by City under the overall supervision of Project Manager or his/her designee. Contractor shall go through Project Manager or his/her designee in all matters dealing with City policies, funding, facilities, equipment and other City departments outside the Facility. (2) Contractor. Contractor shall assign a single Project Director who shall have overall responsibility for the compliance of Contractor with the Agreement. Should circumstances or conditions subsequent to the execution of this Agreement require a different Project Director, Contractor shall notify City immediately of same. The Project Director shall be responsible for all actions of Contractor. The Project Director shall also be responsible for disseminating to appropriate personnel all communication and information from City. (3) Access. Contractor shall not prevent Project Manager, facility maintenance personnel, and/or others specifically designated by Project Manager from access to the Facility; provided, however, that City shall use its best efforts not to disrupt the activities of Contractor as permitted by the Agreement. The Project Manager and others specifically designated by Project Manager shall attempt to coordinate such access if possible. Notwithstanding the foregoing, except in the case of emergency or if they are present on the premises as members of the audience or specifically invited into the backstage areas of the theatre, Project Manager, facility maintenance personnel and/or others specifically designated by the Project Manager shall not enter the auditorium or backstage areas during public performances of a production. (4) Days Defined. The term "days" shall mean calendar days. (5) Qualifications. Contractor represents that it is qualified to furnish the Services described under the Agreement. (10) Ticket Sales: (a) Contractor’s budget for the Term of the Agreement is attached hereto, marked “Attachment 2” and incorporated herein by reference as though fully set forth herein. (b) Contractor shall be responsible for sale of season tickets and single tickets, depositing of revenue and reporting of revenue and expenditures, and shall place available tickets for each Production for sale at the theatre box office one hour prior to each performance. Until one (1) hour prior to the beginning of a Performance, Contractor shall not sell (a) seat numbers C1, C2, D1, D2, D3, and D4; (b) either (i) the block of seats T2, T4, T6, T8, T10, U2, U4, U6, U8 and U10 Page 13 or (ii) the block of seats T1, T3, T5, T7, T9, U1, U3, U5, U7 and U9 for the purpose of making such seats available for the disabled; provided, however, that this Section 10(b) shall not apply to the sale of tickets for such seats to persons who identify themselves as disabled when they purchase their ticket. (c) Contractor agrees the price of admission for the season shall be as set forth in Attachment 3. (d) Contractor shall remit to City a surcharge in the amount of Two Dollars ($2.00) for each and every ticket sold either through subscription, group, individual, promotional or any other means. The foregoing surcharge is due within thirty (30) calendar days the closing date of the Production. The word “sold” as used in this Paragraph (10)(d) is to include any tickets given in exchange for monetary consideration, including donations. City may, in its discretion, add a three percent (3%) surcharge levied for payments received between 31 days and 60 days after the closing date of the Production, a four percent (4%) surcharge levied for payments received between 61 days and 90 days after the closing date of the Production, and a five percent (5%) surcharge levied for payments received in excess of 90 days of the closing date of the Production. Payment must be accompanied by the production report specified in section C(13), “PRODUCTION REPORTS AND RECORDS,” item (a) before payment will be considered to have been made. (e) Contractor shall provide City, when requested by Project Manager or his/her designee, with at least six (6) complimentary tickets for each Production on the date(s) requested. Best available seating will be provided to City if any seats are available at the time of the request. (f) Contractor may operate an intermission snack concession during each Performance under this Agreement. Contractor shall conduct such operation in a safe, clean manner and shall hold City harmless from any claim or demand or liability of any nature whatsoever which may arise out of such operation. If alcoholic beverages are to be sold or distributed free of charge, Contractor shall have on display a California State A.B.C. Permit and provide Project Manager with proof of liquor liability where City is named as co-insured with liability of at least one million dollars ($l,000,000.00) (See Exhibit A (29) above). It is the responsibility of Contractor to ensure that no alcoholic beverage is served to a minor by checking I.D.’s if the person appears to be under thirty years of age. Food and drink may not be taken into the Auditorium or the Light/Sound Booth at any time. Contractor shall remove all cups, glasses, bottles, napkins and food from the lobby, green room, and any other affected areas, including the courtyard, after each performance. Contractor is required to adhere to City’s Zero Waste Plan (Appendix I). (11) Composition of Contractor. Throughout the term of this Agreement, Contractor shall remain an independent, non-profit public benefit corporation under the laws of California and be governed by a Board of Trustees. Any changes in Contractor’s Articles of Page 14 Incorporation, By-Laws, or tax-exempt status shall be reported by Contractor immediately to Project Manager. Not more than twenty-five percent (25%) of the persons serving on the governing board of Contractor may be interested persons. "Interested persons" means any person currently being compensated by Contractor for services rendered to it, whether as a full or part-time employee, independent or otherwise, but excluding any reasonable compensation paid to a director as director. (12) Fiscal Responsibilities of Contractor. (a) Fiscal Agent. Contractor shall appoint a fiscal agent who shall be responsible for the financial and accounting activities of Contractor, including the receipt and disbursement of Contractor funds. Contractor shall provide City with the name of a fiscal agent (Attachment 4) and notify Project Manager within five (5) business days of any changes occurring during the Term. Contractor shall have sole responsibility for the safekeeping of Contractor tickets and monies. (b) System of Accounts. Contractor and its fiscal agent shall establish and maintain a system of accounts that shall be in conformance with generally accepted principles of accounting for budgeted funds. Such system of accounts shall be subject to the review and approval of City staff. (c) Financial Records. In support of its system of accounts, Contractor shall maintain complete and accurate records of all financial transactions, including, but not limited to, contracts, invoices, time cards, cash receipts, vouchers, canceled checks, and bank statements. City may inspect these records at Contractor’s office upon reasonable advance notice and during normal business hours upon request. NOTE: Contractor’s cash receipts are not to be stored on the Premises between Productions. (d) Audit of surcharge payments. Contractor shall retain for a period of at least three (3) years bar-coded electronic records of tickets sold, sales records, and a verified report of sold and unsold tickets which must be made available to City of Palo Alto Auditor upon request. (13) PRODUCTION REPORTS AND RECORDS. (a) Reports. On reasonable notice and with reasons specified, Contractor shall grant Project Manager and/or City’s Auditor access to all Contractor records relating to this Agreement, including performance records, data, statements, and reports. (b) Tax Form 199. A copy of Contractor’s most recently filed California State Tax Form 199, "California Exempt Organizations Annual Information Return" must be filed with Project Manager or his/her designee within fifteen (15) days of when it is due to the State of California and shall also be attached to this agreement prior to its final approval (Attachment 5). (14) CORRECTIVE ACTION REQUIREMENT. Notwithstanding the requirements of this Agreement, in the event City should determine from any source, including but not limited Page 15 to reports submitted by Contractor under this Agreement or any evaluation report from any source, that Contractor may not be in compliance with any provision of the Agreement, City may forward to Contractor written notice of same. Such notice shall specify with particularity the nature of the condition(s) or issue(s) that require(s) corrective action and may include a recommendation as to appropriate corrective action. Within fifteen (15) days of City’s request, Contractor shall submit its written response to the notice, which response shall set forth its view of the alleged violation and its proposed plan, if any, for corrective action. Upon request of either Party, the Parties shall meet within five (5) days thereafter to discuss the alleged violation and proposed corrective action. (15) CONTRACTS WITH OTHER AGENCIES. Contractor agrees not to enter into any contract or agreement with another person or agency that will materially interfere with or inhibit the full performance of the Services to be provided by Contractor under this Agreement. Contractor agrees to terminate as soon as legally possible any contract or agreement which will materially interfere with or inhibit the full performance of the services to be provided by Contractor to City under this Agreement. Nothing herein is intended to prohibit Contractor from applying for, and receiving, supplementary funding from other than City sources so long as any agreement required for such funding does not materially interfere with or inhibit the full performance of the services to be provided by Contractor under this Agreement. Contractor is specifically encouraged to seek such supplementary funding. Any agreement between Contractor and the Mountain View Center for the Performing Arts or any other theatrical venue shall not be deemed to violate this Section (15). (16) INTEREST OF CONTRACTOR. Contractor covenants that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of its Services hereunder. Contractor further covenants that, to the best of Contractor’s knowledge and belief, in the performance of its Services under the Agreement, no subcontractor or person having such an interest shall be employed by Contractor. It is expressly agreed that, in the performance of the Services hereunder, Contractor shall at all times be deemed an independent contractor and not an agent or employee of City. (17) ASSIGNMENT. Both Parties shall give their personal attention to the faithful performance of this Agreement and shall not assign, transfer, or convey the Agreement or any right, title, or interest in or to the same or any part thereof without the prior written consent of the other Party, and then only subject to such terms and conditions as the other Party may require. Consent to one assignment shall not be deemed to be consent to any subsequent assignment. Any assignment without such approval shall be void and, at the option of the other Party, shall terminate this Agreement and any license or privilege granted herein. This Agreement and the Parties’ respective interests herein shall not be assignable by operation of law without the prior written consent of the other Party. (18) SUBCONTRACTORS. Contractor shall be responsible for employing or engaging all persons necessary to perform the Services of Contractor hereunder. All subcontractors are deemed to be employees of Contractor and Contractor agrees to be responsible for Page 16 their performance. Contractor shall give its personal attention to the fulfillment of the provisions of the Agreement by all of its employees, participants, volunteers, and subcontractors. (19) INDEMNITY. Except to the extent the same arise from the negligence or willful misconduct of City, its officers, contractors, agents, employees, or persons brought onto the Premises by or through City, Contractor shall defend, indemnify and hold harmless City, its officers, contractors, agents, and employees and the Premises from and against (a) any injury or death or property damage arising from the use or occupancy of the Premises by Tenant, its officers, agents, employees or any persons brought onto the Premises by or through Contractor, (b) any claims or demands made against City, its officers, agents or employees by reason of any infringement or alleged infringement of any copyright or trademark caused by or alleged to have been caused by Contractor or any subcontractor under this Agreement, (c) any penalties imposed on account of the violation of any law or regulation or of any term or condition of any permit in connection with this Agreement, or (d) any damage arising under this Agreement from any loss or damage to materials and equipment owned, rented or borrowed by Contractor, its employees, subcontractors, participants, volunteers, sponsors or any others engaged in connection with the Services rendered by Contractor under the Agreement. (20) INTOXICATION. Contractor agrees to be responsible for injuries or damage caused by any of its directors, officers, employees, agents, subcontractors, or volunteers who are under the influence of alcohol, drugs, hallucinogens or narcotics, whether or not legally prescribed. Neither Contractor nor City shall permit any of Contractor’s employees or volunteers discovered to be under the influence of any of the foregoing substances from remaining in any facility used under the terms of this Agreement and City reserves the right of denying such persons further participation in the Productions. Consumption of alcoholic beverages or use of illegal drugs at the Facility is expressly forbidden by any person working for Contractor, paid or volunteer. This includes all staff, actors, crew and musicians. (21) WORKER'S COMPENSATION. Contractor certifies that it is aware of the provisions of the Labor Code of the State of California, which requires every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of the Code, and it certifies that it will comply with such provisions during the Term of the Agreement. (22) INSURANCE. Contractor, at its sole cost and expense, shall obtain and maintain in full force and effect throughout the Term of the Agreement insurance coverage insuring not only Contractor and its subcontractors, if any, but also, with the exception of workers' compensation and employer's liability insurance, City, its officers, agents, and employees and each of them. City is to be named as Additional Insured with liability coverage of at least One Million Dollars ($1,000,000.00). A copy of the certificate(s) of insurance shall be attached to the Agreement and shall be filed with City concurrently with the execution of this Agreement. Said certificate shall be subject to the approval of City Attorney and shall contain an endorsement stating that Page 17 said insurance is primary coverage and will not be canceled or altered by the insurer except after filing with City Clerk thirty (30) days' written notice of such cancellation or alteration. Current certificates of such insurance shall be kept on file at all times during the Term of the Agreement. (23) WEAPONS. No firearms or other weapons, whether loaded or not, shall be allowed in the Facility or any other City property. Stage weapons and firearms designed solely for the use of blank cartridges will be allowed if they are being used as a prop in the current Production, but must be stored, when not being used, in a secure manner by Contractor’s stage manager or his/her designee. (Please reference City’s Danger Policy, Appendix L.) (24) LEGAL COMPLIANCE. Contractor and all its paid employees, subcontractors, and volunteer participants are required to abide by all applicable federal, state and local laws and ordinances. Page 18 EXHIBIT D THEATREWORKS ADDENDUM Contractor’s (THEATREWORKS’) personnel shall be permitted to manage, distribute and collect the hearing-impaired devices (“headsets”) that City owns for use by hearing-impaired persons at all Performances at the Facility, subject to the following restrictions: (a) Contractor shall verify that all headsets and batteries are present and functioning normally and shall report to Project Manager or his/her designee any missing or broken items before taking control of them for the run of the Production. (b) For any damage or loss of any headset while under Contractor’s control, Contractor shall promptly, upon request, pay City the fair market price for any necessary replacement or repair of any component of the headsets, as such replacement or repair is reasonably determined by Project Manager or his/her designee. (c) Contractor will diligently ensure the security of the headsets, in a manner approved by Project Manager or his/her designee, when the headsets are not in use. When the headsets are not so secured, Contractor will not leave the headsets unattended. (d) Contractor will provide at least one (1) person in the Facility lobby, whose sole responsibility will be to distribute and collect the headsets, as the case may be, pursuant to the following: (i) Beginning one-half (1/2) hour before each Performance until ten (10) minutes after the Performance begins; (ii) At all times during any and all intermissions; and (iii) From the end of the Performance until all of the headsets have been returned. (e) Contractor shall collect a Driver’s License or credit card as security for the loan of a headset, which Driver’s License or credit card will be returned to its owner upon return of the headset. Contractor will implement procedures for the safe handling of the Driver’s Licenses and credit cards and their return to their owners. (f) Contractor’s responsibility at the end of each performance will include the following: (i) Clean and otherwise sanitize all the earpieces by swabbing them with isopropyl alcohol swabs. (ii) Turn off the on/off/volume switches on all returned headsets and remove the batteries, placing the batteries into the battery charger. (iii) Return all headsets and batteries to their storage case. Page 19 (iv) Verify the presence of all twenty (20) headsets and batteries. (v) Return the headset storage case to its place in the rolling cart. (vi) Return the rolling cart to the House Manager’s Closet. (vii) Be sure the rolling cart is plugged into an electrical outlet. (viii) Make sure the battery charger is getting power, as indicated by the red light on the top of the case. (ix) Padlock the rolling cart’s doors shut, using either the padlock provided by City or a padlock supplied by Contractor, provided that Project Manager or his/her designee has been given a copy of the key or the combination. (x) Immediately report to City’s attendant at the Facility any missing headsets, and turn over to the attendant any malfunctioning headsets. The provisions of this Exhibit D may be terminated upon reasonable notice at any time by Project Manager or his/her designee, and may be terminated upon thirty (30) days’ prior written notice by Contractor. Page 20 EXHIBIT E NON-DISCRIMINATION FORM Certification of Nondiscrimination: As suppliers of goods or services to City of Palo Alto, the firm and individuals listed below certify that they do not discriminate in employment with regard to age, race, color, religion, sex, national origin, ancestry, disability, or sexual preference and that they are in compliance with all federal, state, and local directives and executive orders regarding nondiscrimination in employment. THE INFORMATION HEREIN IS CERTIFIED CORRECT BY SIGNATURE(S) BELOW. THEATREWORKS, a California non-profit public benefit corporation Signature: ____________________________________________________________ By: Phil Santora Managing Director Signature: ____________________________________________________________ By: Scott Devine General Manager Page 21 EXHIBIT F INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (City), AT THEIR SOLE EXPENSE, SHALL, FOR THE TERM OF THE CONTRACT. OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW AND AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 NO PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE City OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTORAND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL Page 22 INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CONTRACTOR AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2.IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION City OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303 Page 23 EXHIBIT K CITY OF PALO ALTO NON-DISCRIMINATION POLICY Page 24 LIST OF APPENDICES Appendix A Regulations Of The City Of Palo Alto Regarding Prohibited Conduct in Community Centers and Theatres Appendix B The City of Palo Alto Injury and Prevention Program Appendix C Policy for Sale of Alcoholic Beverages Appendix D Operations Manual Appendix E Safety Procedures and Guidelines Appendix F Building Emergency Procedures Appendix G Procedure for Adjusting the Forestage Height Including Use of the Scissor Lift Appendix H House Manager’s Guide Appendix J Costume Room Guidelines Appendix K City Report of Accident/Property Damage Appendix L City’s Danger Policy Page 25 LIST OF ATTACHMENTS ATTACHMENT 1 TheatreWorks Production and Exclusive Use Schedule, 2013 – 2014 ATTACHMENT 2 Contractor’s Budget for the Term ATTACHMENT 3 Contractor’s Pricing Policy ATTACHMENT 4 Name of Contractor’s Fiscal Agent ATTACHMENT 5 Contractor’s Most Recently Filed California State Tax Form 199 POLICY AND PROCEDURES 1-25/MGR REVISED: AUGUST 2007 1 PUBLIC/PRIVATE PARTNERSHIPS POLICY STATEMENT The City of Palo Alto encourages the formation of public/private partnerships for the benefits the community receives. For the purposes of this policy, “public/private” also encompasses “public/nonprofit” partnerships. Definitions Public/private partnership:A public/private partnership is an agreement between the City and a nonprofit or private organization to provide services or to assist in funding of public facilities and programs. Such partnerships may take various forms, including: Acceptance of or solicitation of service or facility proposals Facilitation of such proposals through the City's regulatory process Waiver of City General Fund fees to help reduce project costs. Contributions of City matching funds for construction of facilities to be owned and controlled or operated by the City. Provision of facilities to the private partner at no charge or at a subsidized rent. Public/private partnerships typically fall into one of three categories: co-sponsorship, alliances or joint ventures. Co-Sponsorships:This is the most common type of public/private partnership. An organization furthers the mission of the City by supporting a City activity or program in conjunction with pursuit of that organization’s own mission or program. Co-sponsorships can take the form of one-time events or annual agreements. Some examples of co-sponsorships include the Palo Alto Tennis Club use of City courts to provide a youth tennis program and American Youth Soccer Organization’s use of space in a City facility to train referees. Co- sponsorships are entered into by staff and normally have no or minimal financial impact. Alliances:This type of public/private partnership involves organizations that have been created for the sole purpose of supporting a City program or an array of City programs. The organization does not expect to receive any direct financial benefit or to alter City policy and/or operations, but undertakes to work closely and cooperatively with staff to implement City goals. Alliance organizations include the Recreation Foundation, the Art Center Foundation (Project Look or Cultural Kaleidoscope), the Friends of the Children’s Theatre (the Magic Castle), the Library Foundation and the Friends of the Palo Alto Library (financial assistance with the renovation and expansion of the Children’s Library). Alliances are approved by the Council if there are any staffing or budgetary implications to the partnership. POLICY AND PROCEDURES 1-25/MGR REVISED: AUGUST 2007 2 Joint Ventures: This type of partnership involves organizations which have programs or missions independent of the City and involve the City entering into a contractual relationship with the public or nonprofit organization with both parties contributing to the partnership for their mutual benefit. Each joint venture is uniquely negotiated by the staff and approved by the City Council. Examples of Joint Ventures include TheatreWorks, Palo Alto Players and West Bay Opera’s use of the Community Theatre and use of the former police station by older adult service provider, Avenidas. PROCEDURES Initiation of partnerships:Public/private partnerships may be initiated in one of three ways: By staff: Staff identifies an opportunity for such a partnership and undertakes an informal or formal request for proposal process to identify partners. By Council: The City Council directs staff to work with a private or nonprofit organization to develop such a partnership. By a private or nonprofit organization:An organization makes a partnership proposal to the staff or City. City Manager Review:If the partnership proposal involves more than one City department, the City Manager’s Office will appoint a team with representatives of all City departments who are stakeholders in the partnership proposal. The team will analyze the proposal and inform the City Manager of the resource implications of the proposal, including staffing and monetary commitments. This would include proposed fee waivers. If the proposal will require a re-ordering of department priorities that have already been approved by the Council in setting its annual priorities or in the budget process, Council approval will be required prior to commitment to the partnership. Council approval will also be required if the partnership requires a new or adjusted allocation of operating or capital funding. Note: Co-sponsorships usually only involve a single department and do not necessitate the formation of an interdepartmental committee, the involvement of the City Manager’s Office or the approval of the City Council. City-Initiated Partnerships:Such partnerships will be guided by existing policies and procedures governing purchasing and outsourcing, using “requests for proposals” and/or bid processes as the method of initiating a partnership. A City-initiated partnership may incorporate incentives including naming rights, waiver of non-enterprise fund building and planning fees, reduced lease rates, free use of space, subsidies, and staff resources. All incentives may be negotiated on a case-by-case basis. POLICY AND PROCEDURES 1-25/MGR REVISED: AUGUST 2007 3 Evaluation of Viability of Partnering Organization:Staff will provide the City Manager and/or City Council with its assessment of the viability of the proposed partnership, based on the partnering organization’s possession of sound organizational, administrative and fiscal management, and its demonstrated experience to achieve and sustain project tasks, such as fundraising and building community support. For proposed facility improvement or expansion initiatives, the nonprofit or private organization should have the ability and commitment to make a substantial pledge to the project’s cost. Facilities Proposals: If a City facility is to be renovated, expanded or otherwise be directly affected by the partnership, the Infrastructure Management Plan will have to be adjusted appropriately. Long-term staffing, operational and maintenance costs must be identified in the proposal.The project’s applicable costs and funding sources for furnishings, fixtures and equipment will be identified. The parties will negotiate the joint or separate financial responsibility for any project cost overruns on a project-by-project basis. Staff may recommend that any standard City processing or use fee authorized under the Municipal Fee Schedule, excluding fees and charges levied by City of Palo Alto Utilities or other City enterprise fund programs, should be waived as a condition of the City's participation. Waiver of fees may be granted by the Council and limited to those fees associated with a construction or capital improvement project which, upon its completion, results in a new or improved public facility, building or park, or some portion thereof, that will be solely owned or controlled by the City. In the event that only a portion of a construction or capital improvement project will result in a new or improved City facility, building or park, or portion thereof, then the Council may waive only that portion of any associated fee directly relating to the construction, improvement or enhancement of the City facility, building or park.As appropriate, the summary and recommendation in the report to the Council will include a staff recommendation on waiving fees which the Council can approve or reject. The City will determine whether the nonprofit or private organization shall use or may forego a formal or informal competitive selection process in the hiring of professionals who will perform the management, design and/or construction phases of the project. The City shall review and approve the requirements for and the performance of all phases of design, planning and construction work for the project. City of Palo Alto (ID # 4402) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/27/2014 City of Palo Alto Page 1 Summary Title: Amendment to agreement with Palo Alto Recreation Foundation - $5,000 for 2014 World Music Day Title: Approval of an Amendment to the Agreement with the Palo Alto Recreation Foundation, to Include $5,000 Funding to Support the Coordination of the 2014 World Music Day Event From: City Manager Lead Department: Community Services Recommended Motion Staff recommends that the City Council approve an amendment to the restated agreement with the Palo Alto Recreation Foundation, to include $5,000 funding to support the coordination of the 2014 World Music Day Event (Attachment A). Background The Palo Alto Recreation Foundation (Foundation) assists the City of Palo Alto Recreation Division in sponsoring and funding programs and special events to promote the social, cultural and recreational needs of Palo Alto residents and visitors to Palo Alto. The Foundation enhances youth, senior, family and neighborhood interactions, and promotes health and wellness throughout the Palo Alto community. Through collaborative efforts, the Foundation supports many programs that play an integral part in the well-being of Palo Alto's residents. Over the last 24 years, the Foundation has sponsored the following organizations and events: African Odyssey, After School Outlet, Asian Film Festival, Art Fool's Day, Bay to Breakfast Run, Baylands Clean Up Day, Baylands Interpretive Center Remodel, Beat the Backup, Camp Programs and Scholarships, Camp Ventura, Cardinal Kid, Celebrate Palo Alto, Center for a New Generation, Computer Recycling, Cultural Kaleidoscope, Downtown Holiday Celebrations, Ecumenical Hunger Programs, Friends of the Children's Theatre, Halloween Haunt, Hippity Hop, Holiday Concert Series, July 4 Chili Cook Off, Leave Your Car at Home, May Fete Children's Parade, Middle School Athletics Program City of Palo Alto Page 2 and Scholarships, Town Fair, Palo Alto Babe Ruth, Palo Alto Day at Stanford, Palo Alto Safer Summer, Palo Alto Teen Center, Positive Alternatives for Youth, Project LOOK!, Safe Ride, Sandcastles, Art & Other Architectural Marvels, Snowmen & Sleigh rides, Twilight Concerts, Youth Community Services and Youth Council. The Foundation continues to provide vital support to the City of Palo Alto's Recreation Division in sponsoring events, trainings and equipment that the Division is not able to provide within its own budget allocation. Discussion The Foundation wishes to continue in the tradition of bringing the community together by annually organizing World Music Day, part of a worldwide music festival that takes place on June 21, which is usually the summer solstice. On this day, the sidewalks and plazas of downtown Palo Alto will be transformed into musical stages for both amateur and professional musicians to showcase their talents. All concerts and performances are free and open to the public. The Foundation has supported World Music Day for the past five years and the event continues to grow in popularity. Until 2013 the coordination of the event has been entirely led by volunteers. In order to make World Music Day a sustainable annual Palo Alto event the Foundation believes funding a professional event coordinator is needed. The Foundation has received preliminary proposals for a professional event coordinator to produce the World Music Day event, which has an estimated cost of $10,000. As the Foundation shifts from an all-volunteer event to funding the services of a professional event coordinator, the Foundation is requesting the City and Foundation share equally in the cost of a professional event coordinator for the 2014 World Music Day event. In future years, the Foundation expects the event coordinator to solicit sufficient private and corporate sponsorships to offset their fees, and therefore will not require further City contributions to help pay for an event coordinator for this event. The City already provides other types of support for the annual World Music Day event, including the waiving of Special Event and Noise Exemption permit fees and the provision of Police and Public Works services for street closures. The total estimated costs the City already incurs to support the annual World Music Day event is estimated to be $15,000. The 2014 amended and restated agreement (Attachment A) will serve to update the original agreement between the City of Palo Alto and the Palo Alto Recreation Foundation for the assistance of the Community Services Department, dated July 28, City of Palo Alto Page 3 1993. The only changes to this agreement are amendments to section 5.4 and 6.2, to require the City and the Foundation to each contribute $5,000 towards event coordination for the 2014 World Music Day event. Resource Impact The direct, indirect and in-kind services provided by the City to sustain this program have an estimated cost of $15,000 annually which the City has historically incurred for the past five years. If the recommendation in this staff report is approved, the City is will incur an additional $5,000 to help pay for a professional event coordinator for the 2014 World Music Day event. The Community Services Department has sufficient funding in its current operating budget to cover the additional costs of $5,000. The benefit to the City received from the Foundation includes the continuation of a much loved community event and over $40,000 in program grants to City programs annually. In addition, until 2002, the Community Services Department employed a full-time special events manager who produced numerous annual community events. Due to budget cuts and restructuring, this position was eliminated. The Recreation Foundation stepped in at that time to independently produce the Palo Alto Black and White Ball, among other events. World Music Day brings an unknown amount of sales tax revenue realized from the attraction of thousands of spectators to downtown Palo Alto for the annual event. Policy Implications The partnership would be categorized as a partnership under the City's Public/Private Partnership Policy (Attachment B). Attachments:  Attachment A - Amended and Restated Agreement with Palo Alto Recreation Foundation (PDF)  Attachment A - PARF MOA 1-21-14 Signed (PDF)  Attachment B- Public/Private Partnership Policy (PDF) ATTACHMENT A 1 140110 dm 00710325 AMENDED AND RESTATED AGREEMENT BETWEEN THE CITY OF PALO ALTO AND THE PALO ALTO RECREATION FOUNDATION CONCERNING ASSISTANCE RENDERED TO THE COMMUNITY SERVICES DEPARTMENT THIS AMENDED AND RESTATED AGREEMENT (the “Agreement”) is made and entered into as of ________________, 2014 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (the "CITY") and the PALO ALTO RECREATION FOUNDATION, a California nonprofit public benefit corporation (the "FOUNDATION") (individually, a “Party” and, collectively, the “Parties”). RECITALS: 1. The CITY's recreation services are provided through the Recreation and Golf Division of the CITY’s Department of Community Services (the "Division"). 2. The expansion and improvement of the CITY's recreation services, with the assistance of private individuals and organizations, will result in greater public benefit to be derived from such services. 3. The FOUNDATION is organized and exists to assist the CITY with fund-raising and other activities, and to generally promote the social, cultural and recreational needs of the CITY and the greater Palo Alto area. 4. On October 2, 1991, the Parties entered into an agreement concerning the accounting, collection and purchasing services to be provided by the CITY to the FOUNDATION, under which the CITY's staff routinely handles the FOUNDATION’s funds, including donations, sponsorships, entry fees and the FOUNDATION's fundraiser expenses and revenue (collectively referred to as the "cash handling services"). 5. On September 30, 1991, the Parties entered into a hold harmless agreement to protect the CITY and the public from any loss or liability the CITY might incur as a result of the cash handling services, both such agreements being made in anticipation of the negotiation and execution of this Agreement which will supersede the earlier agreements. 6. The Parties entered into an Amended and Restated Agreement, dated as of April 5, 2010. 7. The FOUNDATION has made substantial contribution toward the development and promotion of the Division and its recreation programs within the CITY, and the FOUNDATION desires to continue to assist the CITY and the Division by providing the services set forth under this Agreement. ATTACHMENT A 2 140110 dm 00710325 8. The CITY desires to continue to receive the assistance of the FOUNDATION and to specify the scope of permissible CITY staff activities and services to assist the FOUNDATION with its activities which enhance and benefit the CITY, as set forth under this Agreement. 9. The FOUNDATION is a nonprofit public benefit corporation, duly incorporated on December 18, 1986 under California law, which operates privately and independently from the CITY and is duly authorized to provide the services contemplated by this Agreement. 10. The Parties intend that the result of this Agreement will be to provide public benefit, in that the CITY and the Division will continue to be assisted and the CITY's social, cultural and recreational needs will continue to be promoted and enhanced. 11. The FOUNDATION also wishes to stage an annual World Music Day event and the CITY wishes to collaborate with the FOUNDATION in that regard. AGREEMENT: NOW, THEREFORE, in consideration of the Recitals and the covenants, terms and conditions of this Agreement, the Parties agree: SECTION 1 - DEFINITIONS 1.1 Board The term "Board" shall mean the duly appointed board of directors of the FOUNDATION. 1.2 CITY The term "CITY" shall mean the City of Palo Alto, California, as presently existing, plus all territory which may be added thereto during the term of this Agreement by annexation or otherwise. 1.3 City Clerk The term "City Clerk" shall mean the duly appointed the City Clerk of the CITY or her designated representative. 1.4 City Council The term "City Council" shall mean the duly elected City Council of the CITY. 1.5 City Manager ATTACHMENT A 3 140110 dm 00710325 The term "City Manager" shall mean the duly appointed City Manager of the CITY or his designated representative. 1.6 FOUNDATION The term "FOUNDATION" shall mean the duly incorporated Palo Alto Recreation Foundation. 1.7 Risk Manager The term "Risk Manager" shall mean the duly appointed Risk Manager of the CITY, or his designated representative. SECTION 2 - PROJECT COORDINATION 2.8 The CITY The City Manager shall represent the CITY for all purposes under this Agreement. The Director of the CITY's Department of Community Services shall supervise the progress and execution of this Agreement, and shall be assisted by the Director of the Division. 2.9 The FOUNDATION The Board of the FOUNDATION shall represent the FOUNDATION for all purposes under this Agreement. The President of the FOUNDATION shall supervise the progress and execution of this Agreement. SECTION 3 - TERM OF AGREEMENT The term of this Agreement shall commence on the date of its execution by the CITY. This Agreement shall remain in full force and effect until terminated as provided herein. SECTION 4 - PURPOSE OF AGREEMENT The Parties hereby acknowledge and agree that the purpose of this Agreement is to define the relationship and responsibilities of the CITY and the FOUNDATION concerning the FOUNDATION's activities which assist the CITY. Throughout the term of this Agreement, the FOUNDATION shall continue to privately and independently function to provide assistance and support to the CITY and to promote the social, cultural and recreational needs of the CITY. SECTION 5 - RESPONSIBILITIES OF THE FOUNDATION ATTACHMENT A 4 140110 dm 00710325 The FOUNDATION shall provide the following services: 5.10 The FOUNDATION's Services The FOUNDATION shall solicit, receive and distribute donations and grants of materials, equipment, services and funds, or assist in such efforts by the CITY, for any of the following purposes, all of which shall provide public benefit: (i) to benefit, assist or improve the Division; (ii) to promote the social, cultural or recreational needs of the CITY; and (iii) to benefit, support or assist any other activities or events that are consistent with or fulfill then existing the Council’s priorities or the CITY’s policies. 5.11 Disposition of the FOUNDATION's Revenue The FOUNDATION shall work with the CITY’s staff to ensure that revenue which the FOUNDATION generates from any source, including the revenue generated from the FOUNDATION's fundraising event as provided under Section 5.3 hereof, shall be spent for the purposes stated in Section 5.1 hereof, as determined by the FOUNDATION, subject to the CITY's acceptance of any direct assistance as may be required by the CITY’s policy. The CITY may also routinely request donations and grants from the FOUNDATION for the special events sponsored by the Division or any other CITY event or activity consistent with the purposes set forth in Section 5.1. The FOUNDATION shall provide support for such the CITY activities and events in its sole discretion. 5.12 The FOUNDATION’s Fundraising Event The FOUNDATION shall co-sponsor, with the CITY, the FOUNDATION's fund-raising event (the "Fundraiser"). As of the date of commencement of this Agreement, the Fundraiser is known as the "Palo Alto Black and White Ball." However, the theme of the Fundraiser may be changed, in the FOUNDATION's discretion, without requiring any amendment to this Agreement so long as any new theme is first approved by the CITY. The FOUNDATION shall receive all proceeds from its Fundraiser as provided under this Agreement. The FOUNDATION shall spend such proceeds as required under Section 5.2 hereof, to fulfill the purposes stated in Section 5.1 hereof. The FOUNDATION shall have the following responsibilities concerning the Fundraiser. Prior to each Fundraiser, the FOUNDATION shall: (i) pay the CITY any fees that may be requested and collected in accordance with the CITY's municipal fee schedule related to the rental of any CITY facility that may be required for the Fundraiser; (ii) obtain, at its sole cost, adequate insurance coverage for the Fundraiser, as provided under Section 12 hereof; (iii) pay the CITY any fees that may be requested and collected for any Police Department staff services that will be needed for the Fundraiser; (iv) pay the CITY any fees that may be requested and collected for any other miscellaneous CITY staff services that may be needed for the Fundraiser, other than Division staff as provided under Sections 6.1, 6.2 and 6.3 hereof; (v) obtain any CITY permits that may be ATTACHMENT A 5 140110 dm 00710325 required for the Fundraiser and pay the CITY any fees that may be requested and collected for the issuance of permits; (vi) obtain any non-CITY permits needed for use of facilities for the Fundraiser that are not owned by the CITY; (vii) obtain any needed alcohol control zone condition waiver from the Chief of Police of the CITY if alcohol is to be consumed at any location within the Fundraiser; and (viii) pay the CITY any fees that may be requested and collected for any printing, copying and mailing expenses incurred by the CITY in connection with the Fundraiser. 5.4 The FOUNDATION’s Annual World Music Day Event The FOUNDATION shall have the following responsibilities concerning the annual World Music Day Event (the “Annual Music Event”). Prior to each Annual Music Event, the FOUNDATION shall: (i) pay the CITY any fees that may be requested and collected under the CITY’s municipal fee schedule related to the rental of any CITY facility that may be required for the Annual Music Event, except that the CITY will provide a meeting room at no charge for the training of volunteers involved with the production of the Annual Music Event; (ii) obtain, at its sole cost, adequate insurance coverage for the Annual Music Event, as provided under Section 12 hereof; (iii) pay the CITY any fees that may be requested and collected for any extraordinary Police Department staff services that will be needed for the Annual Music Event; (iv) pay the CITY any fees that may be requested and collected for any other extraordinary miscellaneous CITY staff services that may be needed for the Annual Music Event, other than Division staff services, as provided under Sections 6.1, 6.2 and 6.3 hereof; (v) obtain any CITY special permits that may be required for the Annual Music Event; (vi) obtain any non-CITY permits needed for use of facilities for the Annual Music Event that are not owned by the CITY; (vii) obtain any needed alcohol control zone condition waiver from the Chief of Police if alcohol is to be consumed at any location within the Annual Music Event; and (viii) find and manage musicians and volunteers to produce the Annual Music Event; (ix) find and manage sponsors for the Annual Music Event; (x) plan all Annual Music Event details; (xi) promote the Annual Music Event with the press and the community; (xii) develop content for the web site and all marketing materials; and (xiii) manage the entire event in cooperation with CITY staff; (xiv) for the 2014 Annual Music Event the Foundation and City agree to each pay $5,000 toward a professional events coordinator to help produce the event 5.5 Capital Projects for the CITY Notwithstanding Section 5.2 hereof, the FOUNDATION may plan, organize, fund and provide donations to support and implement capital projects for the CITY on a case-by-case basis. Notwithstanding the foregoing, in each case the CITY must desire that the project be performed and all CITY discretionary approval processes and procedures, including under the CITY's charter and municipal code and under California and federal law, must be complied with in connection with the project. 5.6 The FOUNDATION’s Printed Materials ATTACHMENT A 6 140110 dm 00710325 The FOUNDATION shall provide to the CITY any routine and printed information regarding its operations as requested by the CITY including, but not limited to, lists of current Board members and officers, copies of Board training materials, brochures, publications, newsletters, budgets and meeting minutes. 5.7 Citation to Cooperative Efforts of the CITY The FOUNDATION shall refer to the cooperative efforts of the CITY in its presentations, printed materials, fund solicitations and activities, as may be applicable. 5.8 THE FOUNDATION’s Legal Status The FOUNDATION shall maintain, during the term of this Agreement, its nonprofit corporation and tax-exempt status as provided by and under California and federal law. The FOUNDATION shall adhere to its articles of incorporation and bylaws, which are attached hereto as Exhibits "A" and "B" and incorporated herein by this reference. The FOUNDATION shall notify the CITY in the event that the FOUNDATION amends its articles of incorporation or bylaws. Any such amendments shall be made in accordance with all applicable law. 5.9 Open Meetings The FOUNDATION shall conduct its meetings and election of officers in an open and public manner and as otherwise may be required by any applicable law. SECTION 6 - RESPONSIBILITIES OF THE CITY The Parties agree that the CITY is solely responsible for the overall planning, operation and management of the Division. To the extent made possible by the CITY's annual budget allocations, the CITY shall co-sponsor, with the FOUNDATION, the Fundraiser and the Annual Music Event, and shall perform the following services to assist the FOUNDATION perform its responsibilities under Section 5 hereof. 6.13 The CITY's Services Subject to the CITY's annual budget allocation and approval process, including the review and approval of the Division's budget as determined by the Council in its sole discretion, the CITY shall provide the following services to the FOUNDATION: (i) CITY staff support services within the Division to assist with organizing and holding the Fundraiser, as provided under Section 5.3 hereof; (ii) CITY staff support services with the Division to assist with organizing and holding the Annual Music Event (on Father’s Day), as provided under Section 5.4 here; (iii) CITY staff support services within the Division to assist with regular and special Board meetings, including preparation of the FOUNDATION's agendas, minutes and budgets; and (iv) temporary and ATTACHMENT A 7 140110 dm 00710325 occasional use of the CITY’s facility space for Board meetings and for volunteer training associated with the Annual Music Event. Notwithstanding the foregoing, the City Manager or his designee may, at any time during each and every fiscal year during the term hereof, reallocate or reduce the amount of any of the CITY services assigned under the CITY's annual budget process to assist the FOUNDATION. Such reallocation or reduction shall be accomplished as may be needed to best allocate, in the City Manager's discretion, the CITY's limited resources. 6.2 The CITY’s Services Related to the Annual World Music Day Event Subject to the CITY’s annual budget allocation and approval process, including the review and approval of the Division’s budget as determined by the Council, acting in its sole discretion, the CITY shall provide the following services to the FOUNDATION: (i) the Council shall endorse the event and proclaim the third Sunday of June of each year as “World Music Day” in Palo Alto; (ii) shall waive ordinary special event permit fees; (iii) shall waive ordinary and regular policing costs; (iv) consistent with the CITY’s policies and procedures shall post information and links concerning the Annual Music Event on the CITY’s web page for the marketing of the Annual Music Event; (v) shall actively assist with the promotion and advertising of the event both through CITY media and through the cooperation of Destination Palo Alto; (vi) allow for the mention of the Annual Music Event at such events as public concerts, gatherings and special events; (vii) shall provide at no cost a meeting room for the training and orientation of event volunteers; (viii) provide printing services at no cost for the printing of 2,000 event flyers; (ix) provide assistance with processing any required solicitation permit in order to enable musicians to sell their compact discs during the event to offset their personal expenses; and (x) for the 2014 Annual Music Event the Parties each agree to contribute $5,000 toward a professional events coordinator’s services cost of $10,000 in order to help produce the event. 6.3 The CITY’s Services Related to the Palo Alto Black & White Ball Subject to the CITY’s annual budget allocation and approval process, including the review and approval of the Division’s budget as determined by the Council, acting in its sole discretion, the CITY shall provide the following services to the FOUNDATION: (i) the Council shall endorse the event; (ii) shall waive ordinary special event permit fees; (iii) shall waive ordinary and regular policing costs; (iv) consistent with the CITY’s policies and procedures shall post information and links concerning the Fundraiser on the CITY’s web page for the marketing of the Fundraiser; (v) shall actively assist with the promotion and advertising of the event through the CITY’s media; (vi) allow for the mention of the Fundraiser at such events as public concerts, gatherings and special events; (vii) shall provide at no cost a meeting room for the training and orientation of event volunteers; and (viii) provide assistance with processing any required solicitation permit in order to enable musicians to sell their compact discs during the event to offset their personal expenses. 6.4 The CITY's Cash Handling Services for the Fundraiser ATTACHMENT A 8 140110 dm 00710325 The CITY shall also provide to the FOUNDATION cash handling services within the Division needed solely in connection with the Fundraiser. Such services shall consist of the initial receipt of revenue collected for the Fundraiser. The CITY will provide these services to the FOUNDATION in accordance with cash handling procedures developed, approved and otherwise mutually agreed upon by the Parties prior to the CITY’s receipt of revenue. The Parties acknowledge and agree that these procedures will be incorporated in the Agreement as Exhibit "C” subsequent to the Effective Date. 6.5 Citation to Cooperative Efforts of the FOUNDATION The CITY shall acknowledge the support of the FOUNDATION in all CITY events assisted or supported by the FOUNDATION, and in Division presentations, printed materials, fund solicitations and other Division activities as may be applicable. 6.6 Compliance with Gift Policy The CITY shall comply with its Policy and Procedures 1-18, "Gifts to the City," as amended, when the CITY receives any donation or gift from the FOUNDATION, as contemplated by this Agreement. SECTION 7 - POTENTIAL OPERATION OF THE FOUNDATION AS UMBRELLA ORGANIZATION TO AFFILIATED GROUPS The Parties hereby acknowledge and agree that the FOUNDATION, as of the Effective Date, operates privately and independently with no subsidiary corporations or affiliated organizations. However, the Parties hereby agree that it would be beneficial to both the FOUNDATION and the CITY for the FOUNDATION to operate as a parent or umbrella organization that, in addition to its current activities and within the scope of the organization's purpose under its articles of incorporation, assists and fosters subsidiary corporations or affiliated private groups or individuals (the "Affiliated Groups"). The Affiliated Groups would be limited to organizations, groups or individuals that desire to sponsor various recreation, cultural or community projects to assist and benefit the CITY and to promote the social, cultural and recreational needs of the residents of and visitors to the CITY. The Affiliated Groups could operate through and in conjunc- tion with the FOUNDATION under this Agreement, in connection with the Affiliated Groups' projects which benefit the CITY. The Affiliated Groups would therefore not be required to enter into separate agreements with the CITY in order to perform their projects that benefit the CITY. Prior to such time as the FOUNDATION may undertake to operate as a parent or umbrella organization to one (1) or more Affiliated Groups, the Parties hereto shall amend this Agreement to specify the scope of the intended relationship between the FOUNDATION, the Affiliated Groups ATTACHMENT A 9 140110 dm 00710325 and the CITY in order to best benefit the Parties hereto and the CITY's programs and services. SECTION 8 - TERMINATION OF AGREEMENT Either party may suspend or terminate this Agreement, with or without cause, by giving thirty (30) days' prior written notice thereof to the other party. SECTION 9 - ASSIGNMENT Both Parties shall give their personal attention to the faithful performance of this Agreement and shall not assign, transfer, convey, or otherwise dispose of this Agreement or any right, title or interest in or to the same or any part thereof without the prior written consent of the other party, and then only subject to such terms and conditions as the other party may require. The consent to one assignment shall not be deemed to be the consent to any subsequent assignments. Any assignment without such approval shall be void and, at the option of the other party, shall terminate this Agreement and any license or privilege granted herein. This Agreement and any interest herein shall not be assignable by operation of law without the prior written consent of the other party. SECTION 10 - NOTICES All notices hereunder shall be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk 250 Hamilton Avenue Palo Alto, CA 94301 Copy to: Director of Community Services Department 1305 Middlefield Road Palo Alto, CA 94301 To FOUNDATION: Board of Directors of the FOUNDATION 1305 Middlefield Road Palo Alto, CA 94301 SECTION 11 - INDEMNITY 11.1 The CITY's Obligation to Indemnify the FOUNDATION The CITY agrees to protect, indemnify, hold harmless and defend the FOUNDATION, its officers, agents and employees, from and against any and all claims, loss, liability, demands, damages, costs, expenses or attorneys' fees caused by or arising out of the ATTACHMENT A 10 140110 dm 00710325 CITY's, its officers', agents', subcontractors' or employees' negligent acts, errors, or omissions, or willful misconduct, or conduct for which the law imposes strict liability on the CITY in the performance or nonperformance of the terms of this Agreement, except: (i) for such loss or damage caused by the sole or concurrent negligence or willful misconduct of the FOUNDATION; and (ii) as expressly provided under Subsections 11.2.1 and 11.2.2 hereof. 11.2 The FOUNDATION's Obligation to Indemnify the CITY 11.2.1 The FOUNDATION agrees to protect, indemnify, hold harmless and defend the CITY, its officers, agents and employees, from and against any and all claims, loss, liability, demands, damages, costs, expenses or attorneys' fees caused by or arising out of the FOUNDATION's, its officers', agents', subcontractors', or employees' negligent acts, errors, or omissions, or willful misconduct, or conduct for which the law imposes strict liability on the FOUNDATION in the performance or nonperformance of the terms of this Agreement, except for such loss or damage caused by the sole or concurrent negligence or willful misconduct of the CITY and subject to the provisions of Subsections 11.2.2 and 11.2.3 hereof. 11.2.2 Notwithstanding the foregoing, the FOUNDATION further agrees to protect, indemnify and hold harmless the CITY, its officers, agents, and employees, from any and all harm, loss or liability that may result, or any claims or demands that may be made against the CITY, its officers, agents or employees, by reason of or as a result of the CITY's, its officers', agents' or employees' handling or undertaking any responsibility for the FOUNDATION funds or monies in connection with the Fundraiser, as provided under Sections 6.1, 6.2 and Exhibit "C" hereof, except for any harm, loss or liability caused by or that arises from the negligence, gross negligence or willful misconduct of the CITY in handling such funds. The FOUNDATION shall further reimburse the CITY for the CITY's full costs incurred in connection with its defense of any and all suits, actions, or other legal proceedings that may be brought or instituted by third persons in which such third persons have prevailed against the CITY, its officers, agents or employees, either related to or as a result of the CITY's, its officers', agents' or employees' handling or undertaking any responsibility for the FOUNDATION funds or monies in connection with the Fundraiser, as provided under Sections 6.1, 6.2 and Exhibit "C" hereof, unless such suits, actions or other legal proceedings are caused by or arise from the negligence, gross negligence or willful misconduct of the CITY in handling such funds. 11.2.3 Notwithstanding the foregoing, the Parties agree that, except for the Fundraiser and the Annual Music Event, the FOUNDATION has no obligation under this Agreement to indemnify the CITY against any claims, loss, liability, demands, damages, costs, expenses or attorneys' fees caused by or arising out of the CITY events, activities or services that may be or are assisted or supported by any FOUNDATION funds. However, the provisions of this Subsection 11.2.3 do not apply to any claims, loss, liability, demands, damages, costs, expenses or attorneys' fees arising out of or associated with the Fundraiser or the Annual Music Event. SECTION 12 - INSURANCE ATTACHMENT A 11 140110 dm 00710325 12.1 The FOUNDATION's Required Insurance Coverage The FOUNDATION, shall, at its sole cost and expense, obtain prior to each Fundraiser and each Annual Music Event a commercial general liability insurance policy, including products and completed operations, personal and advertising, in the minimum coverage amount of One Million Dollars ($1,000,000) per occurrence and in the aggregate. Such insurance coverage shall be provided through a carrier or carriers with an A. M. Best & Co. rating of at least A:VII or higher. The insurance coverage must name as insured not only the FOUNDATION, but also the CITY, its officers, agents, employees and volunteers, and each of them, as named insureds under the policy with respect to the Fundraiser and the Annual Music Event. 12.2 Fundraiser and/or Annual Music Event Where Alcohol Served If alcohol is to be served at any Fundraiser or any Annual Music Event, the FOUNDATION shall ensure that: (i) every server of alcohol is adequately insured under California law and to the satisfaction of the Risk Manager, in the Risk Manager's discretion, for such alcohol service; (ii) the Parties are named as additional insureds under each alcohol insurance policy or policies with respect to the Fundraiser and/or the Annual Music Event, to the satisfaction of the Risk Manager; and (iii) the FOUNDATION obtains any necessary waiver from the Chief of Police from the alcohol control zone condition under the Department of Alcoholic Beverage Guidelines, as amended. 12.3 Certificate of Insurance The FOUNDATION shall file certificate(s) sufficiently evidencing the insurance coverage required under this Section with the Risk Manager at least five (5) days prior to each Fundraiser and each Annual Music Event. The certificate(s) shall contain endorsement(s) stating that the insurance is primary coverage and will not be cancelled or altered by the insurer except after filing with the City Clerk thirty (30) days' prior written notice of such cancellation or alteration, and that the CITY is a named insured or named as an additional insured, as applicable, under the policy or policies. SECTION 13 - COMPLIANCE WITH LAWS The FOUNDATION shall be bound by and shall comply with all applicable federal, California and local laws, ordinances and directives insofar as they pertain to the performance of this Agreement. SECTION 14 - RIGHT OF THE CITY TO EXAMINE AND AUDIT The FOUNDATION agrees to permit the CITY, including the City Auditor and the Director of Administrative Services, or any duly authorized representatives thereof, to, at any ATTACHMENT A 12 140110 dm 00710325 reasonable time during the term of this Agreement, have access to and the right to examine, or have examined, all of the FOUNDATION's records, including its financial records. The CITY's rights under this Section 14 shall include the right to audit, examine and copy such records. The FOUNDATION further agrees to permit the CITY to audit for three (3) years thereafter, all of the FOUNDATION's records pertaining to matters covered by this Agreement. The FOUNDATION accordingly agrees to maintain such records for at least three (3) years following the termination of this Agreement for any reason. SECTION 15 - AGREEMENT BINDING The terms, covenants, and conditions of this Agreement shall apply to, and shall bind, the heirs, successors, executors, administrators, assigns, and subcontractors of both Parties. SECTION 16 - WAIVERS The waiver by either party of any breach or violation of any term, covenant, or condition of this Agreement or of any provision, ordinance, or law shall not be deemed to be a waiver of any other term, covenant, condition, ordinance, or law or of any subsequent breach or violation of the same or of any other term, covenant, condition, ordinance, or law. SECTION 17 - COSTS AND ATTORNEYS' FEES The prevailing party in any action brought to enforce the terms of this Agreement or arising out of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with such an action from the other party. SECTION 18 - NONDISCRIMINATION The FOUNDATION shall not, in the performance of this Agreement, discriminate in the employment of any person on the basis 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. SECTION 19 - AGREEMENT CONTAINS ALL UNDERSTANDINGS; AMENDMENT This document represents the entire and integrated agreement between the CITY and the FOUNDATION and it supersedes all prior negotiations, representations, and agreements, either written or oral, including the above-referenced cash handling services agreement between the Parties and the hold harmless agreement between the Parties related to such cash handling services. This document may be amended only by written instrument, signed by the Parties. SECTION 20 - GOVERNING LAW ATTACHMENT A 13 140110 dm 00710325 This Agreement shall be governed by the laws of the State of California. SECTION 21 - AUTHORITY TO EXECUTE AGREEMENT The FOUNDATION represents and warrants that it is a duly organized, validly existing nonprofit public benefit corporation in good standing under the laws of the State of California, and that its signatories to this Agreement are the _______________________ and the _________________ of the corporation, who are duly authorized to execute this Agreement on behalf of the FOUNDATION. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the Effective Date. CITY OF PALO ALTO PALO ALTO RECREATION FOUNDATION ___________________________ By:____________________________ City Manager Its:___________________________ APPROVED AS TO FORM: By:____________________________ ___________________________ Its:___________________________ Senior Asst. City Attorney APPROVED: __________________________ Director of Administrative Services ___________________________ Director of Community Services Attachments: EXHIBIT "A": The FOUNDATION’s Articles of Incorporation EXHIBIT "B": The FOUNDATION’s Bylaws EXHIBIT "C": Cash Handling Procedures Related to the Fundraiser ATTACHMENT A 14 140110 dm 00710325 ATTACHMENT A 15 140110 dm 00710325 EXHIBIT “A” The FOUNDATION’s Articles of Incorporation [attached] ATTACHMENT A 16 140110 dm 00710325 EXHIBIT “B” The FOUNDATION’s Bylaws [attached] ATTACHMENT A 17 140110 dm 00710325 EXHIBIT “C” Cash Handling Procedures Related to the Fundraiser POLICY AND PROCEDURES 1-25/MGR REVISED: AUGUST 2007 1 PUBLIC/PRIVATE PARTNERSHIPS POLICY STATEMENT The City of Palo Alto encourages the formation of public/private partnerships for the benefits the community receives. For the purposes of this policy, “public/private” also encompasses “public/nonprofit” partnerships. Definitions Public/private partnership: A public/private partnership is an agreement between the City and a nonprofit or private organization to provide services or to assist in funding of public facilities and programs. Such partnerships may take various forms, including: • Acceptance of or solicitation of service or facility proposals • Facilitation of such proposals through the City's regulatory process • Waiver of City General Fund fees to help reduce project costs. • Contributions of City matching funds for construction of facilities to be owned and controlled or operated by the City. • Provision of facilities to the private partner at no charge or at a subsidized rent. Public/private partnerships typically fall into one of three categories: co-sponsorship, alliances or joint ventures. Co-Sponsorships: This is the most common type of public/private partnership. An organization furthers the mission of the City by supporting a City activity or program in conjunction with pursuit of that organization’s own mission or program. Co-sponsorships can take the form of one-time events or annual agreements. Some examples of co-sponsorships include the Palo Alto Tennis Club use of City courts to provide a youth tennis program and American Youth Soccer Organization’s use of space in a City facility to train referees. Co- sponsorships are entered into by staff and normally have no or minimal financial impact. Alliances: This type of public/private partnership involves organizations that have been created for the sole purpose of supporting a City program or an array of City programs. The organization does not expect to receive any direct financial benefit or to alter City policy and/or operations, but undertakes to work closely and cooperatively with staff to implement City goals. Alliance organizations include the Recreation Foundation, the Art Center Foundation (Project Look or Cultural Kaleidoscope), the Friends of the Children’s Theatre (the Magic Castle), the Library Foundation and the Friends of the Palo Alto Library (financial assistance with the renovation and expansion of the Children’s Library). Alliances are approved by the Council if there are any staffing or budgetary implications to the partnership. POLICY AND PROCEDURES 1-25/MGR REVISED: AUGUST 2007 2 Joint Ventures: This type of partnership involves organizations which have programs or missions independent of the City and involve the City entering into a contractual relationship with the public or nonprofit organization with both parties contributing to the partnership for their mutual benefit. Each joint venture is uniquely negotiated by the staff and approved by the City Council. Examples of Joint Ventures include TheatreWorks, Palo Alto Players and West Bay Opera’s use of the Community Theatre and use of the former police station by older adult service provider, Avenidas. PROCEDURES Initiation of partnerships: Public/private partnerships may be initiated in one of three ways: • By staff: Staff identifies an opportunity for such a partnership and undertakes an informal or formal request for proposal process to identify partners. • By Council: The City Council directs staff to work with a private or nonprofit organization to develop such a partnership. • By a private or nonprofit organization: An organization makes a partnership proposal to the staff or City. City Manager Review: If the partnership proposal involves more than one City department, the City Manager’s Office will appoint a team with representatives of all City departments who are stakeholders in the partnership proposal. The team will analyze the proposal and inform the City Manager of the resource implications of the proposal, including staffing and monetary commitments. This would include proposed fee waivers. If the proposal will require a re-ordering of department priorities that have already been approved by the Council in setting its annual priorities or in the budget process, Council approval will be required prior to commitment to the partnership. Council approval will also be required if the partnership requires a new or adjusted allocation of operating or capital funding. Note: Co-sponsorships usually only involve a single department and do not necessitate the formation of an interdepartmental committee, the involvement of the City Manager’s Office or the approval of the City Council. City-Initiated Partnerships: Such partnerships will be guided by existing policies and procedures governing purchasing and outsourcing, using “requests for proposals” and/or bid processes as the method of initiating a partnership. A City-initiated partnership may incorporate incentives including naming rights, waiver of non-enterprise fund building and planning fees, reduced lease rates, free use of space, subsidies, and staff resources. All incentives may be negotiated on a case-by-case basis. POLICY AND PROCEDURES 1-25/MGR REVISED: AUGUST 2007 3 Evaluation of Viability of Partnering Organization: Staff will provide the City Manager and/or City Council with its assessment of the viability of the proposed partnership, based on the partnering organization’s possession of sound organizational, administrative and fiscal management, and its demonstrated experience to achieve and sustain project tasks, such as fundraising and building community support. For proposed facility improvement or expansion initiatives, the nonprofit or private organization should have the ability and commitment to make a substantial pledge to the project’s cost. Facilities Proposals: • If a City facility is to be renovated, expanded or otherwise be directly affected by the partnership, the Infrastructure Management Plan will have to be adjusted appropriately. • Long-term staffing, operational and maintenance costs must be identified in the proposal. The project’s applicable costs and funding sources for furnishings, fixtures and equipment will be identified. • The parties will negotiate the joint or separate financial responsibility for any project cost overruns on a project-by-project basis. • Staff may recommend that any standard City processing or use fee authorized under the Municipal Fee Schedule, excluding fees and charges levied by City of Palo Alto Utilities or other City enterprise fund programs, should be waived as a condition of the City's participation. Waiver of fees may be granted by the Council and limited to those fees associated with a construction or capital improvement project which, upon its completion, results in a new or improved public facility, building or park, or some portion thereof, that will be solely owned or controlled by the City. In the event that only a portion of a construction or capital improvement project will result in a new or improved City facility, building or park, or portion thereof, then the Council may waive only that portion of any associated fee directly relating to the construction, improvement or enhancement of the City facility, building or park. As appropriate, the summary and recommendation in the report to the Council will include a staff recommendation on waiving fees which the Council can approve or reject. • The City will determine whether the nonprofit or private organization shall use or may forego a formal or informal competitive selection process in the hiring of professionals who will perform the management, design and/or construction phases of the project. The City shall review and approve the requirements for and the performance of all phases of design, planning and construction work for the project. City of Palo Alto (ID # 4436) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/27/2014 City of Palo Alto Page 1 Summary Title: Palo Alto Players Partnership Agreement Title: Approval of a Public-Private Partnership Agreement between the City of Palo Alto and the Palo Alto Players for the Cooperative Use of the Lucie Stern Community Theatre From: City Manager Lead Department: Community Services RECOMMENDATION Staff recommends that the City Council approve the renewal of a public-private partnership agreement between the City of Palo Alto and the Palo Alto Players for cooperative use of the Lucie Stern Community Theatre (Attachment A) for the period September 1, 2013 to August 31, 2014. BACKGROUND The Lucie Stern Community Theatre is used by three local theatre companies who produce approximately 15 productions annually. These three companies (the Palo Alto Players, West Bay Opera, and TheatreWorks) partner with the Community Services Department to produce these shows, which foster the cultural and artistic needs of Palo Alto residents and visitors. The City and these companies each benefit from continuing this cooperative relationship. As of 1974, the Palo Alto Players dissolved their ties with the Parks and Recreation Department, and became an independent company. Since that time, the City has continued to support the Palo Alto Players by providing performance, rehearsal, and shop space at the city-owned Community Theater (also known as the Lucie Stern Theater). During their 2013 – 2014 theatre season, the Palo Alto Players offers six different productions for adults, including musicals, comedies, and historical dramas. DISCUSSION City of Palo Alto Page 2 The Palo Alto Players’ usage of the Lucie Stern Community Theatre is governed by a public- private partnership agreement. Since production scheduling is done interdependently between the three groups, and because the cost of relocating a theatre company is prohibitively high, there exists nearly no opportunity for changing the companies that the Lucie Stern Community Theatre services. Due to these circumstances, staff recommends that the City Council approve the modification of the existing public-private partnership. The key terms of this agreement are discussed below: Term: The new agreement is for one year effective September 1, 2013 and terminates on August 31, 2014. Similar agreement extensions are intended for subsequent years. Revenue: In accordance with the Municipal Fee Schedule and in exchange for providing facility usage, the Palo Alto Players shall remit to the City a surcharge in the amount of $2.00 for each ticket sold. This fee is effectively passed down to patrons and is applied to all subscription, group, individual, promotional, and other tickets sold. Complimentary tickets are excluded, and the sum of the surcharge revenue for each production is due to the City within 30 calendar days after the closing of the production. The City retains roughly $60,000 per year from this ticket surcharge in total from the three theater partnerships. Among other functions, the proposed agreement acts as a revenue contract which governs the application, collection, and accounting of associated revenue. Responsibilities of City: The contract outlines the responsibilities of the City using the standard terms of public-private and “joint-venture” partnerships, including specifying goods delivery terms, notice requirements for contract termination, and affirming non-discrimination, insurance, and property guidelines. The City is also responsible for allowing and providing access to the Lucie Stern Community Theatre during designated hours, providing basic maintenance of capital equipment, monitoring production safety, and providing information regarding other scheduled facility uses (such as City-sponsored events of private rentals). Responsibilities of Company: Additionally, the agreement stipulates the responsibilities of the theatre company, including their duty to abide by City and department policies and procedures (specifically including and as related to, without limitation, conduct in community centers, injury and illness prevention, sale of alcoholic beverages, operations, building emergency procedures, zero waste, and facility use). Other responsibilities include timely remittance of fees and surcharges, requirements for sufficient building supervision/staffing, recordkeeping of ticket sales and surcharge remittance for compliance with audits, and adherence to standard practices for facility security. This renewed agreement is substantially identical to previous agreements with the exception of City of Palo Alto Page 3 increasing the ticket surcharge from $1.00 to $2.00 This increase is implemented as a result of Municipal Fee Schedule adjustments effective 07/01/2010 and 07/01/2011. RESOURCE IMPACT No additional City resources are required and it is anticipated that this partnership will lead to enhanced program and capital funding over the life of the agreement. POLICY IMPLICATIONS This partnership would be categorized as a public/private partnership under the City’s Public- Private Partnership Policy. Attachments:  Palo Alto Players (PDF)  Public Private Partnership Policy (PDF) CITY OF PALO ALTO AND PALO ALTO PLAYERS-PENINSULA CENTER STAGE AGREEMENT BY THIS AGREEMENT MADE AND ENTERED INTO ON THE 3rd DAY OF DECEMBER, 2013 BY AND BETWEEN THE CITY OF PALO ALTO (“CITY”) AND PALO ALTO PLAYERS- PENINSULA CENTER STAGE (“CORPORATION”), IN CONSIDERATION OF THEIR MUTUAL COVENANTS, THE PARTIES HERETO AGREE AS FOLLOWS: CORPORATION SHALL PROVIDE OR FURNISH THE FOLLOWING SPECIFIED 1) GOODS AND MATERIALS, 2) SERVICES OR 3) A COMBINATION THEREOF AS SPECIFIED IN THE EXHIBITS NAMED BELOW. EXHIBITS: The following attached exhibits are incorporated herein by this reference. Contract is not complete unless all exhibits are attached.  Exhibit A: Responsibilities of the Corporation  Exhibit B: Responsibilities of the City  Exhibit C: General Conditions  Exhibit D: Non-Discrimination Form  Exhibit E: Proof of Liability Insurance TERM: The services and/or materials furnished under this agreement shall commence on 9/1/2013 and shall be completed on or before 09/1/2014. COMPENSATION: As compensation for the full performance of this agreement, CORPORATION shall remit fees and surcharges to the CITY in accordance with the prevailing rates set forth in the CITY”s Municipal Fee Schedule. Such payments include, but are not limited to, those defined in EXHIBIT A (Section 22) and EXHIBIT C (Section 10) and shall be be subject to the terms and conditions set forth herein. In consideration of referenced exhibits, attachements, and appendecies, such compensation shall not exceed fifty thousand dollars ($50,000). CITY ACCOUNT NUMBER: Fees and surcharges remitted persuant to this agreement shall be credited to the City’s accounts included in the table below: REVENUE TYPE COST CENTER - GL ACCT - INTERNAL ORDER Ticket Surcharge 80020412 – 15540 - 61205 Facility Attendant 80020512 – 13450 - 61205 INVOICING: Send all invoices to the City of Palo Alto. Such invoices shall be sent to the attention of the Project Manager. GENERAL TERMS AND CONDITIONS: General Terms and Conditions are included on page three of this agreement. . HOLD HARMLESS. CORPORATION shall indemnify, defend and hold harmless CITY, its Council Members, officers, employees, and agents from any and all demands, claims or liability of any nature, including wrongful death, caused by or arising out of CORPORATION’S, its officers’, directors’, employees’ or agents’ negligent acts, errors, or omissions, or willful misconduct, or conduct for which the law imposes strict liability on CORPORATION in the performance of or failure to perform this agreement by CORPORATION. ENTIRE AGREEMENT. This agreement and the terms and conditions on the following pages represent the entire agreement between the parties with respect to the purchase and sale of the goods, equipment, materials or supplies or payment for services which may be the subject of this agreement. All prior agreements, representations, statements, negotiations and undertakings whether oral or written are superseded hereby. THIS AGREEMENT SHALL BECOME EFFECTIVE UPON ITS APPROVAL AND EXECUTION BY CITY. IN WITNESS THEREOF, THE PARTIES HAVE EXECUTED THIS AGREEMENT THE DAY, MONTH, AND YEAR FIRST WRITTEN ABOVE. By: ______________________________ Date______________________ Peter Bliznick Executive Director Palo Alto Players Peninsula Center Stage By: ______________________________ Date______________________ Judge Luckey Manager Arts, Children’s Theatre Community Services Department City of Palo Alto CITY OF PALO ALTO APPROVALS: CITY DEPARTMENT  Funds Have Been Budgeted (1) PURCHASING & CONTRACT ADMINISTRATION INSURANCE REVIEW (2) APPROVAL OVER $25,000 (3) PURCHASING MANAGER APPROVAL OVER $25,000 APPROVAL OVER $85,000 CITY OF PALO ALTO BY:_____________________________________ CITY ATTORNEY ATTEST: BY:________________________ _______________________ MAYOR CITY CLERK CITY OF PALO ALTO - GENERAL TERMS AND CONDITIONS A. ACCEPTANCE. This agreement is limited to the terms and conditions on pages 1, 2, and 3 hereof which includes any exhibits referenced. B. GOVERNING LAW. This agreement shall be governed by the laws of the state of California. C. INTEREST OF CORPORATION. It is understood and agreed that this agreement is not a contract of employment in the sense that the relation of master and servant exists between the CITY and undersigned. At all times CORPORATION shall be deemed to be an independent contractor and CORPORATION is not authorized to bind CITY to any contracts or other obligations. In executing this agreement, CORPORATION certifies that no one who has or will have any financial interest under this agreement is an officer or employee of CITY. D. INSURANCE. CORPORATION agrees to provide the insurance specified in the “Insurance Requirements” form attached hereto as Exhibit C. In the event CORPORATION is unable to secure a policy endorsement naming the City of Palo Alto as an additional insured under any comprehensive general liability or comprehensive automobile policy or policies, CORPORATION shall at a minimum, and only with the written approval of City’s Risk Manager or designee, cause each such insurance policy obtained by it to contain an endorsement providing that the insurer waives all right of recovery by way of subrogation against CITY, its officers, agents, and employees in connection with any damage, claim, liability personal injury, or wrongful death covered by any such policy. Each such policy obtained by CORPORATION shall contain an endorsement requiring thirty (30) days' written notice from the insurer to CITY before cancellation or reduction in the coverage or limits of such policy. CORPORATION shall provide certificates of such policies or other evidence of coverage satisfactory to City's Risk Manager, together with evidence of payment of premiums, to CITY at the commencement of this agreement, and on renewal of the policy, or policies, not later than twenty (20) days before expiration of the terms of any such policy. E. TERMINATION. This agreement may be terminated by CITY upon ten (10) days written notice to CORPORATION. Monies then owing based upon work satisfactorily accomplished shall be paid to CORPORATION. F. CHANGES. This agreement shall not be assigned or transferred without the written consent of the CITY. No changes or variations of any kind are authorized without the written consent of the City Manager or his or her designee. G. AUDITS. CORPORATION agrees to permit CITY to audit, at any reasonable time during the term of this agreement and for three (3) years thereafter, CORPORATION'S records pertaining to matters covered by this agreement. CORPORATION further agrees to maintain such records for at least three (3) years after the term of this agreement. H. NO IMPLIED WAIVER. No payment, partial payment, acceptance, or partial acceptance by CITY shall operate as a waiver on the part of CITY of any of its rights under this agreement. I. CITY'S PROPERTY. Title to CITY’s property furnished to CORPORATION shall remain in the CITY. CORPORATION shall not alter or use property for any purpose, other than that specified by CITY, or for any other person without the prior written consent of CITY. CORPORATION shall store, protect, preserve, repair and maintain such property in accordance with sound professional practice, all at CORPORATION’s expense. J. NON-DISCRIMINATION. No discrimination shall be made in the employment of persons under this agreement because of the race, color, national origin, age, ancestry, religion or sex of such person. CORPORATION agrees to meet all requirements of the Palo Alto Municipal Code pertaining to nondiscrimination in employment, including completing the NonDiscrimination Compliance Form, attached hereto as Exhibit D, and incorporated herein by this reference. K. WARRANTY. CORPORATION expressly warrants that all materials and services covered by this agreement shall conform to the specifications, requirements, instructions, or other descriptions upon which this agreement is based, shall be fit and sufficient for the purpose intended, of good materials and workmanship and free from defect and that materials and services of CORPORATION’S design will be free from defect in design. Inspection, test, acceptance, payment or use of the goods furnished hereunder shall not affect the CORPORATION’S obligation under this warranty, and such warranties shall survive inspection, test acceptance and use. CORPORATION agrees to replace, restore, or correct defects of any materials or services not conforming to the foregoing warranty promptly. Without expense to CITY, when notified of such nonconformity by CITY, in the event of failure by CORPORATION to correct defects in or replace nonconforming goods or service promptly, CITY, after reasonable notice to CORPORATION, may make such corrections or replace such materials or services and charge contractor for the cost incurred by the CITY thereby. L. WORKERS’ COMPENSATION. CORPORATION, by executing this agreement, certifies that it is aware of the provisions of the labor code of the state of California which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and certifies that it will comply with such provisions before commencing the performance of the work of this agreement. M. PRICE TERMS. (a) Extra charges, invoices and payment. No extra charges of any kind will be allowed unless specifically agreed to in writing by CITY. All state and federal excise, sales and use taxes shall be stated separately on the invoices. (b) Transportation charges. Any transportation charges with respect to which CORPORATION is entitled to receive reimbursement shall be added to CORPORATION’S invoice as a separate item, with the receipted freight bill attached thereto. (c) CORPORATION warrants that the prices for materials or services sold to CITY under this agreement are not less favorable than those currently extended to any other customers of the same or like articles or services in equal or less quantities. In event CORPORATION reduces its price for such materials or services during the term of this agreement, CORPORATION agrees to reduce the prices or rates hereof correspondingly. N. SCHEDULES OR DELIVERY. Time is of the essence of this agreement. CORPORATION agrees to comply with the specific schedule provided by the CITY or agreed upon herein without delay and without anticipating CITY’S requirements. CORPORATION also agrees not to make material commitments or scheduling arrangements in excess of the required amount or in advance of the time necessary to meet the schedule(s) of this agreement, if any. O. TRANSPORTATION, PACKAGING & LABELING. All materials or services are to be provided: (a) F.O.B., Palo Alto unless otherwise specified; (b) with a packing list enclosed in cartons, which indicate the agreement number, exact quantity and descriptions, concerning any materials shipments; (c) and comply with current packaging and labeling requirements prescribed by D.O.T. Page 4 of 23 EXHIBIT A RESPONSIBILITIES OF THE CORPORATION (1) Abide by the policies/procedures established by CITY and CITY’S Arts and Sciences Division and the Department of Community Services for the use of CITY facilities, equipment, costumes, props, furniture, scenery and other production elements. These shall include, but are not limited to, Regulations Of The City Of Palo Alto Regarding Prohibited Conduct In Community Centers and Theaters (Appendix A), the City of Palo Alto Injury and Prevention program (Appendix B), Policy for Sale of Alcoholic Beverages (Appendix C), Operations Manual (Appendix D), Safety Procedures and Guidelines (Appendix E), Building Emergency Procedures (Appendix F), procedure for adjusting the forestage height including use of the Scissor lift (Appendix G), House Manager's Guide (Appendix H), Zero Waste Plan (Appendix I), and Costume Room Guidelines (Appendix J). Follow safety procedures for the use of power and hand tools, mechanical lifts, etc. including the use of safety goggles, ear protection, face shields, safety cables, outriggers, etc. (2) Obtain, supervise, and pay all necessary related fees for the services of all professional assistance needed to produce such productions. Such assistance may include, but is not limited to the following: Production Directors, all Designers, Carpenters, Painters, Production Assistants, Music Directors, Choreographers, Musicians and other Front of House, Artistic or Administrative personnel. (3) Pay all fees and costs for materials, supplies, scripts, royalties, licenses and other fees and expenses connected with said productions, including all make-up removal supplies. (4) Be solely responsible for the control and supervision of all production activities and personnel connected therewith and shall notify all personnel of their obligations and responsibilities pertaining to their production area. Act responsibly in matters of building security when CORPORATION is scheduled to utilize CITY facilities. (5) Conduct regularly scheduled production meetings, shall notify CITY of such production meetings in writing, and shall coordinate all production activities with CITY'S Project Manager or his/her designee. There shall be at least one or more, as needed, production design meeting(s) for each production as scheduled in ATTACHMENT 1 which shall be convened by CORPORATION at a mutually convenient time prior to start of construction. Provide the Project Manager or his/her designee with a list of major production personnel and their phone numbers for each production at the time of the first production meeting. Construction plans and fly-line plots should be submitted at the aforementioned production design meeting in order for the Project Manager or his/her designee to ascertain compliance with CITY fire or other safety regulations. (6) Provide the Project Manager or his/her designee with a list of all pyrotechnics effects (including the use of open flames), all hydro technical effects, all use of fog or haze, all loud noises (i.e. gunshots), and all use of strobe lights at least 21 days prior to first use on stage. No flames shall be permitted on stage without the required fire permits from CITY. Smoking by any of the actors on stage as an integral part of the production will be considered a pyrotechnic effect. Safety precautions approved by a CITY Fire Inspector and the Project Manager or his/her Page 5 of 23 designee will be taken when smoking is occurring on stage, and the audience shall be notified beforehand that smoking, loud noises (i.e. gunshots) or use of strobe lights will occur on the stage. All Fire Department fees for “Open Flame Permits” and “Candles and Open Flames in Assembly Areas Permits” shall be the responsibility of the CORPORATION. (7) Provide the Project Manager with the rehearsal schedule, performance schedule, shop schedule and any requests for the use of CITY facilities (including but not limited to the Community Theatre, rooms located in the Lucie Stern complex and the Lucie Stern Courtyard and patio) for any purpose. Space reservations should be made at least four weeks in advance. CORPORATION shall accommodate other uses of the theatre facility, including but not limited to the stage, auditorium, rehearsal hall, scene shop, paint shop, flat dock, and costume shop, during periods of non-use during the runs of the productions. CITY shall notify the CORPORATION . CORPORATION shall provide personnel for any shifting of CORPORATION'S scenery and/or equipment. (8) Designate as Project Director for the length of this contract an employee or sub- contractor to manage or supervise all areas and items in this contract, including production, technical, house personnel and any and all support groups and to be CORPORATION'S liaison with the Project Manager or his/her designee in all matters relating to the CITY in any way. (9) Arrange for auditions and casting for such productions and be solely responsible for the supervision and control of all performers. With respect to casting, CORPORATION shall have sole discretion to choose and approve the qualifications and select the cast. In personnel decisions, the CORPORATION shall agree to and comply with the provisions of the CITY’S Non-discrimination Policy (Exhibit 8). (10) Search for, place and train participants in appropriate areas of theatre production activity and shall utilize personnel in a safe and effective manner in the presentation of such productions. CORPORATION shall be solely responsible for the control and supervision of such participants and shall indemnify, defend, and hold harmless the CITY from any claims or liabilities arising from the acts or omissions of such personnel. All such personnel shall be deemed the sole agents and employees of CORPORATION and shall be notified by the CORPORATION of this circumstance. (11) Exercise safe practices in the use of CITY facilities and equipment, shall maintain and clear work areas, and shall within 24 hours report, with form provided by CITY (Appendix K), information regarding accidents. Immediately report to the Project Manager or his/her designee on form provided by CITY any breakage, malfunction, deterioration or loss of any of the CITY'S resources (including musical instruments, tools, lights, sound equipment, props, curtains, etc.). CORPORATION shall not attempt repair of CITY equipment without prior consultation with the CITY’S Project Manager. CORPORATION shall immediately discontinue any activity where an unsafe or dangerous condition exists. CORPORATION shall train and supervise CORPORATION'S staff and volunteers on safe theatre practices and adhere to CITY'S safety procedures and guidelines. If, in the opinion of any CITY or CORPORATION employee, CORPORATION is conducting an activity in an unsafe manner, CORPORATION or its agents shall be informed and shall immediately discontinue such activity until such activity is able to be conducted in a safe manner approved by CITY staff. (12) Promote and publicize all of its productions, and shall print in all publicity, including, but not limited to, publications, mailings, flyers, posters, brochures, programs, and Page 6 of 23 paid or public service advertising, the statement, "In cooperation with the City of Palo Alto Community Services Department Division of Arts and Sciences." In conformance with Americans with Disabilities Act (ADA) of 1990 guidelines and requirements, CORPORATION shall bear responsibility for providing appropriate auxiliary aids, interpretive services and accommodations where they are necessary to achieve an equal opportunity to participate in and enjoy the benefits of public performances produced under this contract. Printed programs shall include the following statement required by the Americans with Disabilities Act: "Persons with disabilities who require information on 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: ADA Coordinator, City of Palo Alto, 650-463- 4952 (Voice) or ada@cityofpaloalto.org (Internet).” (13) Continue to exist as an independent, non-profit corporation under the laws of the United States and the State of California. (14) Submit all signs or displays to be located on the Theatre premises to Project Manager or his/her designee for approval at the first production meeting. All displays may be put up at load-in and must be removed during strike. Inside the Theatre, no display materials may be placed upon stucco walls. Lobby displays may only be placed on the lobby display boards, and all fasteners must be removed at the time display is taken down. Nothing may be posted on the exterior walls or doors of the Theatre or in the Stern courtyard, except for items in the display case and an approved production name sign hung from the theatre balcony. Marquee signs must be constructed of light weight material, and shall be secured in such a way that the sign cannot become dislodged by normal vibration or seismic activity. Signs shall be of a standard size no larger than ten feet in length and eight feet in height. All marquee signage must be attached to the theatre balcony with rigging so that the sign may be easily removed for limited periods during photography shoots, special events, or building maintenance. (15) Assure that the auditorium, stage, paint shop, scene shop, flat dock, costume shop, green room, dressing rooms, rehearsal hall, hallways and outdoor areas adjacent to theatre and shop will be cleared and clean, and that scenery, properties, and other production elements will be disassembled and stored, to the Project Manager or his/her designee’s satisfaction, within six hours after the final performance or on a time schedule mutually agreed upon between the CORPORATION and the Project Manager or his/her designee. The stage shall always be returned to its basic set-up as established by the Project Manager or his/her designee unless there is a mutual agreement with the incoming group that has been approved by the Project Manager or his/her designee. All items on the STRIKE CHECKLIST are to be performed unless there is a mutual agreement with the incoming group that has been approved by the PROJECT MANAGER or his/her designee. The Project Manager or his/her designee will sign a copy of the STRIKE CHECKLIST form at the completion of the strike to signify acceptance of clean and neat facilities. (16) Leave storage, paint, scene and costume spaces clean and clear of CORPORATION'S materials other than those materials necessary for the ongoing maintenance and repair of the sets and costumes by the Monday following opening performance. (17) Leave all spaces clear, clean and orderly at the end of each use. Rehearsal Hall is to be cleared of all materials, except major set pieces and any rehearsal props, after each daily use. Rehearsal Hall is to be completely cleared within 24 hours of final use. Dressing rooms are to be maintained after each daily use. Trash, recycling and compostable materials are to be Page 7 of 23 removed from all areas daily. Recyclables and compostable materials are to be placed in the recycling and composting carts near the trash dumpster and garbage and trash are to be placed into the dumpster. The CORPORATION is required to reduce waste, reuse and recycle per the CITY’s Zero Waste Plan (Appendix I). Office space and hallways are to be kept continually clear, clean and orderly and neither space shall be used for the purpose of set, prop, or costume storage. Materials may not be left or stored any place out-of-doors overnight or when unattended by contractor personnel. (18) Enforce current regulations as established by CITY with regard to smoking, food and drink in CITY facilities (Appendix A). CORPORATION shall provide ushers at all previews and performances who will enforce such regulations. Smoking is not permitted inside any CITY facility. No person shall bring any animal into the theatre. This regulation shall not apply to service animals assisting individuals with disabilities or to animals in training to become service animals. Use of animals on the stage is subject to approval by the Project Manager or his/her designee. Food and drink are not permitted in the auditorium, light/sound booth or on stage, unless used as part of a production scene. Food and drink shall be permitted only in approved areas such as the green room and lobby. CORPORATION shall clean up all food and drink containers daily after use. (19) Observe all provisions of this agreement when using CITY facilities other than or in addition to the Community Theatre. This includes cleaning up the rooms, returning tables and chairs to their initial locations and depositing all trash and recycling in the appropriate receptacles. CORPORATION will be responsible for the maintenance of the Lucie Stern- Recreation Wing restrooms for weekend performances. (20) Comply with CITY TB test requirement for employees and volunteers of CORPORATION at any time the CITY Risk Manager deems it necessary. If minors are involved in the production, State of California requirements for fingerprinting the staff must be followed. (21) Comply with CITY sound ordinance levels for any outdoor activities, including load-in, strike, dismantling, or disposal. Shop doors facing Hopkins and Harriet Streets shall be closed between 8:00 p.m. and 8:00 a.m. (22) Pay Building Attendant fees at prevailing rates as set forth in the Municipal Fee Schedule: (a) For (an) additional Attendant(s) required for the use of CITY facilities other than the Attendant the CITY will furnish for the Lucie Stern Community Theatre facility for the period of from one hour prior to until at least one half hour after the completion of each public performance as listed in ATTACHMENT 1. (b) For any performances not included in ATTACHMENT 1. (c) When using other CITY facilities at the same time as a public performance as listed in ATTACHMENT 1. All building use policies must be adhered to for any CITY facility use. Page 8 of 23 Additional performances of the productions listed in ATTACHMENT 1 may be added to ATTACHMENT 1 with two weeks notice. (23) Provide house manager and ushers for every performance or event whenever public is in attendance. CORPORATION shall permit only persons who have been trained in theatre emergency, safety and use procedures to usher. CORPORATION shall submit a list of their trained personnel to the Project Manager prior to public performances for each production. Ushers must be available to assist patrons under all circumstances and must be aware of and able to assist disabled persons. The CORPORATION’S House Manager and ushers must also be available to assist in emergency situations throughout the entire performance until audience has left the theatre. Ushers must ensure that wheelchairs, walkers, etc. are not blocking any of the aisles or exits. Ushers shall return seats to the upright position and remove litter from the auditorium and restrooms at the conclusion of each performance. (24) Shall be responsible for installing or removing the removable auditorium seats in designated areas to accommodate their wheelchair patrons and as required due to the needs of the production. (25) Shall have privilege of borrowing available Community Theatre-owned properties, sets, costumes and scenery for productions scheduled in this agreement. Costumes, properties and sets created by CORPORATION with CORPORATION-owned materials will remain the property of CORPORATION, and shall be removed from the theatre facility at the conclusion of the production in which the materials are used. The Project Manager or his/her designee may, on a case-by-case basis, authorize exceptions. Any allowed items stored at the theatre will become available for use by all contracting CORPORATIONS and the CITY. All such items created under former agreements will continue to be the property of the CITY. All office equipment, construction tools, special effects and lighting equipment purchased and owned by CORPORATION will remain the private property of CORPORATION and the CITY assumes no responsibility or liability for the loss or maintenance of such materials. All equipment, instruments, costumes and any other materials rented, borrowed or owned by any subcontractor, agent or person for the CORPORATION is the responsibility of the CORPORATION and/or its subcontractors, and the CITY assumes no responsibility or liability for its maintenance or loss. Such items as original play scripts, musical scores, scenic designs, costume designs and photographs belong solely to the authors, composers, artists who created them or their representatives, and any use of them will be at the sole discretion of the CORPORATION. Any use of these items must be in accordance with all applicable laws. CORPORATION assumes all liability and responsibility for any default on production expenses. (26) Shall be required to replace or have repaired by factory authorized technicians CITY owned equipment, instruments or materials identified by the Project Manager or his/her designee as having been lost, damaged or destroyed by an agent of the CORPORATION. A written report must be made on CITY form whenever CITY equipment is lost, damaged, or destroyed by the CORPORATION. (27) May be allowed the use of Community Theatre-owned properties, sets, costumes, scenery, furniture and equipment for CORPORATION productions not scheduled in this agreement upon written request to the Project Manager or his/her designee and upon express approval and written authorization of the Project Manager or his/her designee. CORPORATION must return to Community Theatre all items borrowed for productions at other venues within four days of the final performance and shall, in the event the items are damaged or destroyed, be Page 9 of 23 responsible for the repair or replacement of all such borrowed items to the satisfaction of the Project Manager. (28) May use Community Theatre facilities and equipment only for theatre productions expressly covered under this agreement. Exceptions, such as for classes, camps or workshops, will be considered by the Project Manager or his/her designee upon the receipt from the CORPORATION of a written request at least thirty days prior to the date needed and, if granted, will be approved in writing by the Project Manager or his/her designee. No such activity will be advertised or promoted until it has been expressly approved by the CITY’S Project Manager. (29) Shall enforce all State and City laws relating to the sale and consumption of alcoholic beverages in CITY facilities. Alcohol is permitted at the Lucie Stern Community Center if approved by the CITY’S Project Manager. Unless otherwise specifically permitted the only alcoholic beverages which may be sold or served at CITY facilities by CITY policy are wines, including champagne and sparkling wine. If alcoholic beverages are to be sold or distributed free of charge, CORPORATION must possess a State A.B.C. The permit for the sale or distribution of alcoholic beverages obtained by the CORPORATION must be provided to the Project Manager. Proof of liquor liability insurance where CITY is named as co-insured with liability of at least one million dollars ($l,000,000.00) shall be required. Permits are to be displayed as required by law. It is the responsibility of the CORPORATION to ensure that no alcoholic beverage is served to a minor. Identification must be checked if the person appears to be under thirty years of age. CORPORATION shall remove all items, including cups, glasses, bottles, napkins and food from the lobby and any other affected areas, including the courtyard, after each performance. CORPORATION is required to adhere to CITY’S Recycling and Zero Waste Program (Appendix I). (30) Shall have one of their designated and CITY approved key and/or proximity card holders on the premises at all times as a supervisor whenever anyone from the CORPORATION is in the facility working for the CORPORATION, whether as a paid employee, subcontractor or volunteer. The Project Manager or his/her designee must approve any exceptions in writing. (31) Shall not in any way modify CITY facilities and may not install or attach anything in or on CITY facilities without having first submitted a written request to the Project Manager and having received written permission from the Project Manager or his/her designee. The approval of the Project Manager does not relieve the CORPORATION from any responsibility to obtain necessary CITY permits or Building Department approvals for the modification. Any violation shall result in the CORPORATION being charged for all repairs necessary to restore the facility to its original condition and any additional costs pertaining to the restoration of CITY property. (32) Shall immediately report to the police any incidents of a criminal or suspicious nature occurring on CITY property and notify the Project Manager or his/her designee within twelve hours. If initial notification is verbal, it must also be submitted in writing to Project Manager or his/her designee on provided form. (33) Shall make sure that the doors to the Scene Shop, Rehearsal Hall, and Costume Shop, as well as any other exterior access doors to any area of the Lucie Stern Community Theatre, are not left open, unlocked or left with the locking mechanism disabled at any time when the immediate area secured by the door is unoccupied by the CORPORATION, even if only briefly. Failure to do this may result in greater restricted access to the Lucie Stern Page 10 of 23 Community Theatre, including the possible forfeiture of keys/proximity cards by the CORPORATION and/or restricted access times. (34) Must fill out a CITY Report of Accident/Property Damage report (Appendix K) for any and all accidents, injuries or property damage if a CITY employee is not present to fill out the report. (35) Must operate and conduct business in compliance with the CITY’s Zero Waste Plan (Appendix I) for all activities including, but not limited to, set construction and strike, food and beverage service, and office activities. The CITY Recycling Program can assist with resources for achieving this goal. The goal is to send as little waste to landfill as possible through waste reduction, reuse and recycling. To achieve this goal CORPORATION must first reduce waste whenever possible. (36) Shall avoid the use of disposables and shall not use Styrofoam™ and other plastics for food/beverage service. Reusable food/beverage service ware should be utilized to the maximum extent possible. Where a reusable food/beverage service option is not available, choose items that are recyclable. For concessions, choose product packaging that is recyclable. (37) Must practice reuse before, during and after production. A list of reuse resources will be provided to avoid the disposal of construction materials, sets and props. CORPORATION must recycle construction debris from set materials (e.g. wood, metal). (38) Must recycle all materials included in the CITY’s Recycling Program including paper (all types), plastic containers #1-#7, cardboard, glass bottles and jars, and metal cans. Compostable materials will be disposed of in designated compost waste receptacles. (39) Include on the title page, or other prominent place, of all production and event programs: 1) the official City of Palo Alto logo, to be obtained from Project Manager, and 2) the following credit: “Use of this facility is made possible through support from The City of Palo Alto, Community Services Department, Division of Arts and Sciences.” The City of Palo Alto, Community Services Department, Division of Arts and Sciences shall also be credited in the CORPORATION’s list of funders, at a level that reflects the annual subsidy provided by the CITY. Page 11 of 23 EXHIBIT B RESPONSIBILITIES OF THE CITY (1) Allow CORPORATION the use of the Community Theatre Rehearsal Hall, Costume Room, Scene Shop, Paint Shop, Stage, Auditorium, Light/Sound Booth, designated work space, etc. as scheduled in ATTACHMENT 1 for the preparation and presentation of theatre productions performed under this agreement provided that CORPORATION submits specific rehearsal schedules, performance schedules and shop use schedules. CORPORATION shall be required to comply with all CITY policies. Any use of CITY facilities and equipment other than that listed in this contract but necessary to carry out this contract must be scheduled through and approved in advance by the Project Manager or his/her designee. (2) Allow the use of the auditorium and the stage for performances and brush-up rehearsals on the following schedule: No performance shall begin earlier than 9:00 a.m. nor end later than midnight. In no event shall CORPORATION conduct rehearsals or other activities, or otherwise occupy CITY facilities from 12 midnight to 8:00 a.m. unless prior written permission is obtained from the Project Manager or a designated employee of the CITY is on site. CORPORATION shall observe all facility security rules and regulations as established by CITY (Appendix A). (3) Allow the use of the stage and the auditorium prior to the opening night of such productions according to the production schedule set forth in ATTACHMENT 1. Allow the use of the rehearsal hall, box office, scene shop, paint shop and costume shop according to the schedule as set forth in ATTACHMENT 1. Additional facility use may be provided as specified in item (Exhibit B (1); Exhibit A (28)) above; however, priority use of the room will always be given to actual rehearsals of productions covered by a contract with the CITY. The CITY will not be responsible for obtaining additional space, but may assist in locating other CITY spaces and may act as co-sponsor for use of CITY facilities under appropriate circumstances. Payment as specified in the CITY’s Municipal Fee Schedule will need to be made for any productions/performances/events/other uses that are not included as a part of ATTACHMENT 1. CORPORATION will forfeit the right to any additional reservations of CITY facilities should CORPORATION reserve space which is not used. CITY reserves the right to allow other uses of space when not in actual, scheduled use by CORPORATION. Revised 9/1/2010 Page 12 of 23 (4) Provide the Project Manager or his/her designee with a list of all planned activities utilizing theatre Stage and Auditorium during said periods. This information is to be provided to the Project Manager or his/her designee in production design meetings (5) Allow CORPORATION to use all operational production equipment in CITY'S Community Theatre inventory as requested by CORPORATION and approved in writing by CITY. CORPORATION takes such equipment "as is" and is responsible for ensuring that such equipment is in a safe condition prior to use and is returned in working condition at the conclusion of its use or of the production. The CORPORATION will assist the CITY in keeping the inventory of tools, equipment, instruments and production materials up-to-date so that all theatre users may benefit from the use of these materials. (6) Monitor all aspects of production relative to safety (Appendix E). If the Project Manager or any designee(s) deem(s) that any procedure followed by CORPORATION is unsafe, he or she has the authority to immediately stop such procedure. The CITY and CORPORATION will work together to prevent or quickly mitigate any fire hazards or any items identified by the Fire Department during facility inspections. (7) Provide maintenance of CITY facilities and equipment, replacement lamps for lighting equipment and blades for table power tools, but not hand power tools. CITY shall respond with reasonable speed to make necessary repairs hereunder. (8) Provide persons designated by CORPORATION and approved by the Project Manager or his/her designee with keys, proximity cards (up to a maximum of six), and alarm codes for access to Lucie Stern Community Theatre facilities solely for the purpose of carrying out the requirements of this agreement. Keys, proximity cards, and alarm codes shall not be loaned or transferred and shall only be used by the designated persons. In the event that CORPORATION fails to properly open or lock and secure CITY facilities leading to a false alarm call-out or leaves areas of the facility unlocked and unattended, a two hundred dollar ($200.00) penalty shall be paid to CITY on each occasion. In the event that a designated key holder loses any key or proximity card issued by CITY the CORPORATION shall be assessed a seventy-five dollar ($75.00) replacement charge for each key or proximity card or pay for the cost of rekeying or reprogramming the locks of the facility if circumstances indicate it as determined by the CITY. CORPORATION will be responsible and held accountable for all personnel, properties and activities of CORPORATION. CORPORATION will be responsible and held accountable for all CITY facility and equipment damages or loss due to negligence. (9) Have the right to, with no notice; suspend this contract if the building should be declared uninhabitable for reasons of safety by the proper authorities. (i.e. if the building should be damaged in an earthquake and be declared unsafe for occupancy). If there is an outbreak of pandemic flu or other medical emergency and places of public gatherings are closed, CITY will not assume any financial responsibility for loss of revenue by the CORPORATION. If the Lucie Stern Community Theatre is not available due to earthquake, other disaster, or safety related issues, CITY will not assume any financial responsibility for loss of revenue by the CORPORATION. Revised 9/1/2010 Page 13 of 23 EXHIBIT C GENERAL CONDITIONS (1) CITY. The Manager Arts-Children’s Theatre is designated the Project Manager for CITY, who shall render overall supervision of the progress and performance of this agreement by CITY. All services herein agreed in this contract to be performed by CITY shall be under the overall supervision of the Project Manager or his/her designee. Contractor shall go through Project Manager or his/her designee in all matters dealing with CITY policies, funding, facilities, equipment and other CITY departments outside the Community Theatre. (2) CORPORATION. CORPORATION shall assign a single Project Director who shall have overall responsibility for the progress and execution of this agreement by CORPORATION. Should circumstances or condition subsequent to the execution of this agreement require a substitute Project Director, CORPORATION shall notify CITY immediately of such occurrence. The Project Director shall be responsible for all actions of the CORPORATION, including their support groups and volunteers. The Project Director shall also be responsible for all communication and information to and from CITY and CORPORATION'S personnel, including their support groups. (3) ACCESS. CORPORATION shall not prevent the Project Manager, facility maintenance personnel, and others specifically designated by the Project Manager from free and easy access to all CITY facilities. The Project Manager and others specifically designated by the Project Manager shall attempt to coordinate such access if possible. (4) SPECIFIC SERVICES. CORPORATION shall provide all specified services as set forth herein, for the presentation of the 2013-2014 Season’s productions as listed in and on the dates specified in ATTACHMENT 1. (5) PRODUCTION CHANGES. CORPORATION may make changes to its productions within the guidelines of the author or his/her representative. (6) SCHEDULING. CORPORATION may change production scheduling or locations for the purpose of increasing its net revenue and/or audience base, provided that such changes shall not diminish the quality of or access to such offerings by Palo Alto residents. Such changes shall be subject to CITY policies and procedures for space reservation and requests for changes are to be submitted in writing to the Project Manager for approval before any such changes are made. (7) FISCAL YEAR DEFINED. The term "fiscal year" shall mean July 1 to June 30, although CORPORATION is not required to use the same period for its own record-keeping and reporting purposes. (8) DAYS DEFINED. The term "days" shall mean calendar days. Revised 9/1/2010 Page 14 of 23 (9) QUALIFICATIONS. CORPORATION represents that it is qualified to furnish the services described under this agreement and shall be responsible for the performance of this agreement. (10) TICKET SALES: (a) CORPORATION budget for the term of this agreement is attached hereto, marked “ATTACHMENT 2” and incorporated herein by reference as though fully set forth. (b) CORPORATION shall be responsible for sale of season tickets and single tickets, depositing of revenue and reporting of revenue and expenditures, and shall place available tickets for each production for sale at the theatre box office one hour prior to each performance. CORPORATION shall not pre-sell seat numbers C1, C2, D1, D2, D3, and D4. CORPORATION shall also not pre-sell either the block of seats T2, T4, T6, T8, T10, U2, U4, U6, U8 and U10 or the block of seats T1, T3, T5, T7, T9, U1, U3, U5, U7, and U9 but shall hold one of these blocks of seats for disabled seating priorities. Said unsold seats may be released for sale one hour prior to performance. (c) CORPORATION agrees the price of admission for the season shall be as set forth in ATTACHMENT 3. (d) CORPORATION shall remit to CITY a surcharge for each ticket sold of $2.00 for each and every ticket sold either through subscription, group, individual, promotional or any other means. The surcharge of two dollars ($2.00) per ticket sold is due within 60 calendar days after the closing date of the production. “Sold” is to include any tickets given in exchange for monetary consideration. There will be a 10% surcharge levied for payments received between 61 days and 90 days after the closing date of the production; a 15% surcharge levied for payments received between 91 days and 120 days after the closing date of the production; and a 20% surcharge levied for payments received in excess of 121 days of the closing date of the production. Payment must be accompanied by the production report. (e) CORPORATION shall provide CITY, when requested by the Project Manager or his/her designee, with at least six (6) complimentary tickets for each production on the date(s) requested, best available seating will be provided to CITY if any seats are available at the time of the request. (f) CORPORATION may operate an intermission snack concession during each performance under this agreement. CORPORATION shall conduct such operation in a safe, clean manner and shall hold CITY harmless from any claim or demand of liability of any nature whatsoever which may arise out of such operation. If alcoholic beverages are to be sold or distributed free of charge, CORPORATION shall have on display a California State A.B.C. Permit and provide the Project Manager with proof of liquor liability where CITY is named as co-insured with liability of at least one million dollars ($l,000,000.00) (See Exhibit A (29) above). It is the responsibility of the Revised 9/1/2010 Page 15 of 23 CORPORATION to ensure that no alcoholic beverage is served to a minor by checking I.D.’s if the person appears to be under thirty years of age. Food and drink may not be taken into the Auditorium or the Light/Sound Booth at any time. CORPORATION shall remove all cups, glasses, bottles, napkins and food from the lobby, green room, and any other affected areas, including the courtyard, after each performance. CORPORATION is required to adhere to CITY’S Zero Waste Plan (Appendix I). (11) ORGANIZATION OF CORPORATION. (a) Composition of Corporation. Throughout the term of this agreement, CORPORATION shall remain an independent, non-profit corporation under the laws of California governed solely by a Board of Directors. Any changes in CORPORATION'S Articles of Incorporation, By-Laws, or tax-exempt status shall be reported by CORPORATION immediately to the Project Manager. Not more than twenty- five percent (25%) of the persons serving on the governing board of CORPORATION may be interested persons. "Interested persons" means any person currently being compensated by the CORPORATION for services rendered to it, whether as a full or part-time employee, independent or otherwise, but excluding any reasonable compensation paid to a director as director. (b) Meetings of Corporation. All meetings of the Board of Directors of CORPORATION shall be open to the public, except meetings, or portions thereof, dealing with personnel or litigation matters. Project Manager will serve as CITY liaison to CORPORATION'S Board of Directors. Project Manager shall be notified 21 (twenty-one) days in advance of the dates, times, and locations of all Board of Directors meetings. CORPORATION shall provide CITY with names, addresses and telephone numbers of CORPORATION Board members, as well as your Board’s meeting schedule (ATTACHMENT 4) to be attached to this agreement prior to its final approval. CORPORATION shall provide an updated roster of Board of Directors as changes may occur. (12) FISCAL RESPONSIBILITIES OF CORPORATION. (a) Fiscal Agent. CORPORATION shall appoint a fiscal agent who shall be responsible for the financial and accounting activities of CORPORATION, including the receipt and disbursement of CORPORATION funds. CORPORATION shall provide CITY with the name of fiscal agent (ATTACHMENT 5) and notify the Project Manager within 24 hours of any changes occurring during the contract period. CORPORATION shall have sole responsibility for the safekeeping of CORPORATION tickets and monies. (b) Fiscal Monitor. CORPORATION shall appoint from its Board an individual who no less than monthly shall review and by signature acknowledge each monthly financial report. Revised 9/1/2010 Page 16 of 23 (c) System of Accounts. CORPORATION and its fiscal agent shall establish and maintain a system of accounts that shall be in conformance with generally accepted principles of accounting for budgeted funds. Such system of accounts shall be subject to the review and approval of appropriate CITY staff. (d) Financial Record. In support of its system of accounts, CORPORATION shall maintain complete and accurate records of all financial transactions, including, but not limited to, contracts, invoices, time cards, cash receipts, vouchers, canceled checks, and bank statements. These records shall be made available to the CITY upon request. NOTE: CORPORATION currency is not to be stored on the theatre premises. (e) Audits. CORPORATION shall provide for independent audit of its fiscal year transactions, records, and financial reports. The audit shall be at the discretion of CITY and, if required, shall be done by a certified public accountant. The certified public accountant shall submit the report to both parties. The cost of this audit will be borne by CORPORATION. (f) Audit of surcharge payments. Corporation shall retain for a period of at least three years ticket stubs, sales records, and a verified report of sold and unsold tickets which must be made available to the city of Palo Alto Auditor upon request. (13) PRODUCTION REPORTS AND RECORDS. (a) Production Reports. CORPORATION shall keep accurate records of and shall file with Project Manager or his/her designee Production Reports within thirty (30) calendar days following the closing of each production, listing number of performances, ticket sales, expense/revenue, number of paid and volunteer participants and paid and volunteer participant hours worked. Each report shall be prepared on the form provided by CITY or on a form approved by the Project Manager. CORPORATION shall make every reasonable effort to supply such other information as the Project Manager and/or CITY Auditor may request. On reasonable notice and with reasons specified, CORPORATION shall grant the Project Manager and/or CITY Auditor access to all CORPORATION records relating to this agreement, including performance records, data, statements, and reports. (b) Evaluation of services. CORPORATION shall furnish all data, statements, records, information, and reports requested by CITY to monitor, review, and evaluate the performance of CORPORATION'S services hereunder. (c) A copy of CORPORATION’S most recently filed California State Tax Form 199, "California Exempt Organizations Annual Information Return" must be filed with the Project Manager or his/her designee within fifteen days of when it is due to the State of California and shall also be attached to this agreement prior to its final approval (ATTACHMENT 6). Revised 9/1/2010 Page 17 of 23 (14) CORRECTIVE ACTION REQUIREMENT. Notwithstanding the requirements of this agreement, in the event CITY should determine from any source, including but not limited to reports submitted by CORPORATION under this agreement or any evaluation report from any source, that there is a condition which requires correction, CITY may forward to CORPORATION a request for corrective action. Such request shall indicate the nature of the condition(s) or issue(s) which require(s) corrective action and may include a recommendation as to appropriate corrective action. Within fifteen (15) days of CITY'S request, CORPORATION shall submit its response which shall include its view of the problem and proposed action, if any. Upon request of either party, the parties shall meet within five (5) days thereafter to discuss the problem and proposed corrective action. (15) RIGHT TO SUSPEND OR TERMINATE. Either party may suspend or terminate the agreement for any reason by giving thirty (30) days' written notice to the other party. Upon the expiration of such notice, performance of the services hereunder shall be immediately discontinued. (16) SURRENDER OF MATERIALS. Upon suspension or termination, CORPORATION shall immediately turn over to CITY all keys and proximity cards issued by CITY, copies of studies, reports, and other data, whether or not completed, prepared by CORPORATION or its subcontractors, if any, in connection with this agreement. Such materials shall become the property of CITY. CORPORATION, however, shall not be liable for CITY'S use of incomplete materials nor for CITY'S use of complete documents if used for other than the services contemplated by this agreement. (17) CONTRACTS WITH OTHER AGENCIES. CORPORATION agrees not to enter into any contract or agreement with another person or agency that will materially interfere with or inhibit the full performance of the services to be provided by CORPORATION under this agreement. CORPORATION agrees to terminate as soon as legally possible any contract or agreement which will materially interfere with or inhibit the full performance of the services to be provided by CORPORATION to CITY under this agreement. Nothing herein is intended to prohibit CORPORATION from applying for, and receiving, supplementary funding from other than CITY sources so long as any agreement required for such funding does not materially interfere with or inhibit the full performance of the services to be provided by CORPORATION under this agreement. CORPORATION is specifically encouraged to seek such supplementary funding. (18) INTEREST OF CORPORATION. CORPORATION covenants that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the services hereunder. CORPORATION further covenants that, in the performance of this agreement, no subcontractor or person having such an interest shall be employed. It is expressly agreed that, in the performance of the services hereunder, CORPORATION shall at all times be deemed an independent contractor and not an agent or employee of CITY. Revised 9/1/2010 Page 18 of 23 (19) ASSIGNMENT. Both parties shall give their personal attention to the faithful performance of this agreement and shall not assign, transfer, convey, or otherwise dispose of this agreement or any right, title, or interest in or to the same or any part thereof without the prior written consent of the other party, and then only subject to such terms and conditions as the other party may require. Consent to one assignment shall not be deemed to be consent to any subsequent assignment. Any assignment without such approval shall be void and at the option of the other party, shall terminate this agreement and any license or privilege granted herein. This agreement and interest herein shall not be assignable by operation of law without the prior written consent of the other party. (20) SUBCONTRACTORS: EMPLOYEES. CORPORATION shall be responsible for employing or engaging all persons necessary to perform the services of CORPORATION hereunder. No subcontractor of CORPORATION will be recognized by CITY as such, rather, all subcontractors are deemed to be employees of CORPORATION and it agrees to be responsible for their performance. CORPORATION shall give its personal attention to the fulfillment of the provisions of this agreement by all of its employees, participants, volunteers, and subcontractors, if any, and shall keep the work under its control. (21) INDEMNITY. CORPORATION hereby agrees to indemnify and hold harmless CITY, its officers, agents, and employees of and from: (a) Any and all claims and demands which may be made against CITY, its officers, agents, or employees by reason of any injury to or death of any person or damage suffered or sustained by any person or corporation caused by, or alleged to have been caused by, any act or omission, negligent or otherwise, of CORPORATION, its officers, employees, agents, participants, volunteers, or any subcontractor under this agreement or of any of subcontractor's employees or agents. (b) Any and all damage to, loss or destruction of the property of CITY, its officers, agents, or employees occupied or used by or in the care, custody, or control of CORPORATION caused by any act or omission, negligent or otherwise, of CORPORATION, its officers, employees, agents, participants, volunteers or any subcontractor under this agreement. (c) Any and all claims and demands which may be made against CITY, its officers, agents, or employees by reason of any injury to or death of or damage suffered or sustained by any employee, participant, volunteer, or agent of CORPORATION or any subcontractor under this agreement, however caused, excepting, however, any such claims and demands which are the result of the sole negligence or willful misconduct of CITY, its officers, agents or employees. (d) Any and all claims and demands which may be made against CITY, its officers, agents, or employees by reason of any infringement or alleged infringement of any copyright or trademark caused by or alleged to have been caused by CORPORATION or any subcontractor under this agreement. Revised 9/1/2010 Page 19 of 23 (e) Any and all penalties imposed or damages sought on account of the violation of any law or regulation or of any term or condition of any permit in connection with this Agreement. (f) CORPORATION at its own cost, expense and risk shall defend any and all suits, actions, or other legal proceedings that may be brought or instituted by third persons against CITY, its officers, agents, or employees on any such claim or demand referred to in Paragraphs (a), (b), (c) and (d) above, of such third persons, or to enforce any penalty referred to in Paragraph (e) above and pay and satisfy any judgment or decree that may be rendered against CITY, its officers, agents, or employees in any such suit, action, or other legal proceeding. (g) Any and all claims and demands which may be made against CITY, its officers, agents or employees for any loss or damage to materials and equipment owned, rented or borrowed by CORPORATION, its employees, subcontractors, participants, volunteers, sponsors or any others under its project management. (22) INTOXICATION. CORPORATION agrees to be responsible for injuries or damage caused by any of its employees, agents, patrons, subcontractors, or volunteers under the influence of alcohol, drugs, hallucinogens or narcotics, whether or not legally prescribed. CORPORATION as well as CITY shall not permit any of CORPORATION’S employees or volunteers discovered to be under the influence from remaining in any facility used under the terms of this contract and CITY reserves the right of denying such persons further participation in Theatre activities. Consumption of alcoholic beverages or use of illegal drugs is expressly forbidden by any person working for the CORPORATION, paid or volunteer. This includes all staff, actors, crew and musicians while at the Lucie Stern Community Center or any other CITY facility. (23) WORKER'S COMPENSATION. CORPORATION certifies that it is aware of the provisions of the Labor Code of the State of California, which requires every employer to be insured against liability for workers' compensation or to undertake self insurance in accordance with the provisions of the code, and it certifies that it will comply with such provisions before commencing the performance of the work of this agreement. (24) INSURANCE. CORPORATION, at its sole cost and expense, shall obtain and maintain in full force and effect throughout the entire term of this agreement insurance coverage insuring not only Contractor and its subcontractors, if any, but also, with the exception of workers' compensation and employer's liability insurance, CITY, its officers, agents, and employees and each of them. CITY is to be named as co-insured with liability coverage of at least one million dollars ($l,000,000.00) to be attached to this agreement prior to its final approval. Certificates of such insurance shall be filed with CITY concurrently with the execution of this agreement. Said certificate shall be subject to the approval of the City Attorney and shall contain an endorsement stating that said insurance is primary coverage and will not be canceled or altered by the insurer except after filing with the City Clerk Revised 9/1/2010 Page 20 of 23 thirty (30) days' written notice of such cancellation or alteration. Current certificates of such insurance shall be kept on file at all times during the term of this agreement.(25) WEAPONS. No firearms or other weapons, whether loaded or not, shall be allowed in the Lucie Stern Community Theatre or on any other CITY property. Stage weapons and firearms designed solely for the use of blank cartridges will be allowed if they are being used as a prop in the current production but must be stored, when not being used, in a secure manner by the CORPORATION’S stage manager or his/her designee. (Please reference the CITY’S Danger Policy, Appendix K) (26) LEGAL COMPLIANCE. CORPORATION and all its paid employees, subcontractors, and volunteer participants are required to abide by all Federal, State and Local laws and ordinances. Revised 9/1/2010 Page 21 of 23 EXHIBIT D NON-DISCRIMINATION FORM Certification of Nondiscrimination: As suppliers of goods or services to the City of Palo Alto, the firm and individuals listed below certify that they do not discriminate in employment with regards to age, race, color, religion, sex, national origin, ancestry, disability, or sexual preference; that they are in compliance with all Federal, State, and local directives and executive orders regarding nondiscrimination in employment. THE INFORMATION HEREIN IS CERTIFIED CORRECT BY SIGNATURE(S) BELOW. Firm: ____________________________________________________________ Signature: ____________________________________________________________ Name: ____________________________________________________________ Signature: ____________________________________________________________ Name: ____________________________________________________________ Note: California Corporations Code Section 313 requires two corporate officers to execute contracts. *The signature of First Officer* must be one of the following: Chairman of the Board; President; or Vice President. **The signature of the Second Officer** must be one of the following: Secretary; Assistant Secretary; Chief Financial Officer; or Assistant Treasurer. (In the alternative, a certified corporate resolution attesting to the signatory authority of the individuals signing in their respective capacities is acceptable) Revised 9/1/2010 Page 22 of 23 EXHIBIT E INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 NO PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: Revised 9/1/2010 Page 23 of 23 A. A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303 POLICY AND PROCEDURES 1-25/MGR REVISED: AUGUST 2007 1 PUBLIC/PRIVATE PARTNERSHIPS POLICY STATEMENT The City of Palo Alto encourages the formation of public/private partnerships for the benefits the community receives. For the purposes of this policy, “public/private” also encompasses “public/nonprofit” partnerships. Definitions Public/private partnership:A public/private partnership is an agreement between the City and a nonprofit or private organization to provide services or to assist in funding of public facilities and programs. Such partnerships may take various forms, including: Acceptance of or solicitation of service or facility proposals Facilitation of such proposals through the City's regulatory process Waiver of City General Fund fees to help reduce project costs. Contributions of City matching funds for construction of facilities to be owned and controlled or operated by the City. Provision of facilities to the private partner at no charge or at a subsidized rent. Public/private partnerships typically fall into one of three categories: co-sponsorship, alliances or joint ventures. Co-Sponsorships:This is the most common type of public/private partnership. An organization furthers the mission of the City by supporting a City activity or program in conjunction with pursuit of that organization’s own mission or program. Co-sponsorships can take the form of one-time events or annual agreements. Some examples of co-sponsorships include the Palo Alto Tennis Club use of City courts to provide a youth tennis program and American Youth Soccer Organization’s use of space in a City facility to train referees. Co- sponsorships are entered into by staff and normally have no or minimal financial impact. Alliances:This type of public/private partnership involves organizations that have been created for the sole purpose of supporting a City program or an array of City programs. The organization does not expect to receive any direct financial benefit or to alter City policy and/or operations, but undertakes to work closely and cooperatively with staff to implement City goals. Alliance organizations include the Recreation Foundation, the Art Center Foundation (Project Look or Cultural Kaleidoscope), the Friends of the Children’s Theatre (the Magic Castle), the Library Foundation and the Friends of the Palo Alto Library (financial assistance with the renovation and expansion of the Children’s Library). Alliances are approved by the Council if there are any staffing or budgetary implications to the partnership. POLICY AND PROCEDURES 1-25/MGR REVISED: AUGUST 2007 2 Joint Ventures: This type of partnership involves organizations which have programs or missions independent of the City and involve the City entering into a contractual relationship with the public or nonprofit organization with both parties contributing to the partnership for their mutual benefit. Each joint venture is uniquely negotiated by the staff and approved by the City Council. Examples of Joint Ventures include TheatreWorks, Palo Alto Players and West Bay Opera’s use of the Community Theatre and use of the former police station by older adult service provider, Avenidas. PROCEDURES Initiation of partnerships:Public/private partnerships may be initiated in one of three ways: By staff: Staff identifies an opportunity for such a partnership and undertakes an informal or formal request for proposal process to identify partners. By Council: The City Council directs staff to work with a private or nonprofit organization to develop such a partnership. By a private or nonprofit organization:An organization makes a partnership proposal to the staff or City. City Manager Review:If the partnership proposal involves more than one City department, the City Manager’s Office will appoint a team with representatives of all City departments who are stakeholders in the partnership proposal. The team will analyze the proposal and inform the City Manager of the resource implications of the proposal, including staffing and monetary commitments. This would include proposed fee waivers. If the proposal will require a re-ordering of department priorities that have already been approved by the Council in setting its annual priorities or in the budget process, Council approval will be required prior to commitment to the partnership. Council approval will also be required if the partnership requires a new or adjusted allocation of operating or capital funding. Note: Co-sponsorships usually only involve a single department and do not necessitate the formation of an interdepartmental committee, the involvement of the City Manager’s Office or the approval of the City Council. City-Initiated Partnerships:Such partnerships will be guided by existing policies and procedures governing purchasing and outsourcing, using “requests for proposals” and/or bid processes as the method of initiating a partnership. A City-initiated partnership may incorporate incentives including naming rights, waiver of non-enterprise fund building and planning fees, reduced lease rates, free use of space, subsidies, and staff resources. All incentives may be negotiated on a case-by-case basis. POLICY AND PROCEDURES 1-25/MGR REVISED: AUGUST 2007 3 Evaluation of Viability of Partnering Organization:Staff will provide the City Manager and/or City Council with its assessment of the viability of the proposed partnership, based on the partnering organization’s possession of sound organizational, administrative and fiscal management, and its demonstrated experience to achieve and sustain project tasks, such as fundraising and building community support. For proposed facility improvement or expansion initiatives, the nonprofit or private organization should have the ability and commitment to make a substantial pledge to the project’s cost. Facilities Proposals: If a City facility is to be renovated, expanded or otherwise be directly affected by the partnership, the Infrastructure Management Plan will have to be adjusted appropriately. Long-term staffing, operational and maintenance costs must be identified in the proposal.The project’s applicable costs and funding sources for furnishings, fixtures and equipment will be identified. The parties will negotiate the joint or separate financial responsibility for any project cost overruns on a project-by-project basis. Staff may recommend that any standard City processing or use fee authorized under the Municipal Fee Schedule, excluding fees and charges levied by City of Palo Alto Utilities or other City enterprise fund programs, should be waived as a condition of the City's participation. Waiver of fees may be granted by the Council and limited to those fees associated with a construction or capital improvement project which, upon its completion, results in a new or improved public facility, building or park, or some portion thereof, that will be solely owned or controlled by the City. In the event that only a portion of a construction or capital improvement project will result in a new or improved City facility, building or park, or portion thereof, then the Council may waive only that portion of any associated fee directly relating to the construction, improvement or enhancement of the City facility, building or park.As appropriate, the summary and recommendation in the report to the Council will include a staff recommendation on waiving fees which the Council can approve or reject. The City will determine whether the nonprofit or private organization shall use or may forego a formal or informal competitive selection process in the hiring of professionals who will perform the management, design and/or construction phases of the project. The City shall review and approve the requirements for and the performance of all phases of design, planning and construction work for the project. City of Palo Alto (ID # 4252) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/27/2014 City of Palo Alto Page 1 Summary Title: Accela ACA Maintenance Title: Approval of a Five-Year Contract with Accela, INC. for Software Maintenance for Accela Citizen Access and Accela Automation, Not to Exceed $658,000 From: City Manager Lead Department: IT Department Recommendation Staff recommends that Council approve and authorize the City Manager or his designee to execute a five-year software maintenance contract with Accela, Inc. in an amount not to exceed $658,000 to provide maintenance for Accela Automation and Citizen Access web based permitting applications. Background Accela Automation (City side) and Accela Citizen Access (public side), are web-based applications that allows the City of Palo Alto, contractors, and citizens to apply for and check the status of permits. Accela allows citizens and contractors to apply for and check the status of permits via the Internet on a 24-hour, 7 days per week basis regardless of the City’s normal business hours. This new five-year contract will replace the existing Accela Maintenance Contract (C11137911) that expired on 9/30/13. IT has a new Contract Manager that will be managing the maintenance renewal and support contracts going forward. This contract along with other IT maintenance contracts will be closely monitored as to when contracts need to be renewed. Discussion The modules that will be supported through this contract are as follows: City of Palo Alto Page 2 Accela Automation/Velocity Hall Modules AA Classic/360:  Building Inspection  Planning Entitlements  Code Enforcement  Fire Permits  Public Works  Business License  Utilities Accela Citizen Access GovXML Selectron IVR Term 1: 10/1/13 – 9/30/2014, $119,054.78 Term 2: 10/1/14 – 9/30/2015, $125,007.52 Term 3: 10/1/15 – 9/30/2016, $131,257.89 Term 4: 10/1/16 – 9/30/2017, $137,820.79 Term 5: 10/1/17 – 9/30/2018, $144,711.83 Total: $657,852.81 Resource Impact This contract will be funded in the Information Technology Fund, and no additional resources are required in FY 2014. The Information Technology Fund is an internal service fund, meaning all expenses incurred within the fund are supported by transfers into the fund from other funding sources. In the case of the proposed maintenance contract with Accela, Inc., the Information Technology Fund will be reimbursed for all expenses by the Development Services Department. Expenses within Development Services are mostly supported by user fees, therefore the cost of this extension should have no or only minimal net impact on the General Fund. Environmental Review City of Palo Alto Page 3 These services do not constitute a project under the California Environmental Quality Act (CEQA). Attachments:  Accela Final - Signed (PDF)  Accela-C14152219 Final (PDF) CITY OF PALO ALTO CONTRACT NO. C14152219 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND ACCELA, INC. FOR PROFESSIONAL SERVICES This Agreement is entered into on this 5th day of December, 2013, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and ACCELA, INC., a California Corporation, located at 2633 Camino Ramon, Suite 120, San Ramon, CA 94583(PH)925-659-3200 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to continue receiving maintenance and support services for the ACCELA Automation VelocityHall, now referred to as ACCELA AUTOMATION™/AND ACCELA CITIZEN ACCESS™, GovXML, IVR, and AA Clasic Web-Based permitting applications, (“Project) and desires to engage "CONSULTANT" to provide these maintenance services (“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, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit “A” in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from October 1, 2013 through September 30, 2018 unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit “B”, attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner Professional Services Rev. Nov. 1, 2011 1 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 Six Hundred Fifty Seven Thousand Eight Hundred Fifty Two Dollars and Eighty One Cents ($657,852.81). The applicable rates and schedule of payment are set out in Exhibit “C-”, entitled “COMPENSATION,” which is attached to and made a part of this Agreement. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described in Exhibit “A”. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT’s billing rates (set forth in Exhibit “C-1”). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City’s project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thirty (30) days of receipt. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, if permitted, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the services to be furnished by CONSULTANT under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to CITY, any and Professional Services Rev. Nov. 1, 2011 2 all errors, omissions, or ambiguities in the work product submitted to CITY, provided CITY gives notice to CONSULTANT. If CONSULTANT has prepared plans and specifications or other design documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of construction of the Project. This obligation shall survive termination of the Agreement. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of the CITY’s stated construction budget, CONSULTANT shall make recommendations to the CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of the CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. 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. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Tracey Reliford as the project manager to have supervisory responsibility for the performance, progress, and execution of the Services and the project to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. The City’s project manager is Sherrie Wong, Information Technology Department, Information Technology Project Services Division, 250 Hamilton Avenue, Palo Alto, CA 9430, Telephone:650- 617-3152. 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. Professional Services Rev. Nov. 1, 2011 3 SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT Professional Services Rev. Nov. 1, 2011 4 retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Purchasing Manager during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. Professional Services Rev. Nov. 1, 2011 5 SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT is a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the City’s Environmentally Preferred Purchasing policies which are available at the City’s Purchasing Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of the City’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, Consultant shall comply with the following zero waste requirements: • All printed materials provided by Consultant to City generated from a personal Professional Services Rev. Nov. 1, 2011 6 computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by the City’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable based inks. • Goods purchased by Consultant on behalf of the City shall be purchased in accordance with the City’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Office. • Reusable/returnable pallets shall be taken back by the Consultant, at no additional cost to the City, for reuse or recycling. Consultant shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. NON-APPROPRIATION 24.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 25. MISCELLANEOUS PROVISIONS. 25.1. This Agreement will be governed by the laws of the State of California. 25.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 25.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 25.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 25.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 25.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. Professional Services Rev. Nov. 1, 2011 7 25.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 25.8 If, pursuant to this contract with CONSULTANT, City shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City’s express written consent. 25.9 All unchecked boxes do not apply to this agreement. 25.10 The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 25.11 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO ____________________________ City Manager APPROVED AS TO FORM: __________________________ Senior Asst. City Attorney ACCELA, INC. By:___________________________ Name:_________________________ Title:__________________________ Attachments: EXHIBIT “A”: SCOPE OF WORK EXHIBIT “A-1” HOSTED APPLICATIONS EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION EXHIBIT “D”: INSURANCE REQUIREMENTS Professional Services Rev. Nov. 1, 2011 8 EXHIBIT “A” SCOPE OF SERVICES HOSTING AND MAINTENANCE SERVICES 1 Background This Scope of Services defines the details of the Hosting and Maintenance services (“MA”) Scope and is intended for the excusive benefit of the Parties; nothing herein will be construed to create any benefits, rights, or responsibilities in any other parties. 2 Scope of Maintenance 2.1 Maintenance Services 2.1.1 Telephone Support Accela will provide CITY with a telephone number to contact the Customer Resource Center (CRC), Accela’s live technical support facility, which is available from 4:00 a.m. until 6:00 p.m. Pacific time Monday through Friday, excluding Accela’s observed holidays, which include: New Year’s Day, Martin Luther King Day, Presidents Day, Memorial Day, 4th of July, Labor Day, Veterans Day, Thanksgiving Day and the Friday after, ½ day on Christmas Eve, Christmas, and ½ day on New Year’s Eve. The CRC shall provide CITY with maintenance and technical support. 2.1.2 E-Mail Support Accela will provide CITY with one or more electronic mail addresses to which CITY may submit routine or non-critical support requests, which Accela will address during its regular business hours. 2.1.3 Online Support Accela will provide CITY with access to archived software updates and other technical information in Accela’s online support databases, which are continuously available. 2.1.4 Remote Support When required to properly resolve a maintenance request, Accela will provide remote assistance to CITY via the WebEx™ Meeting Center™ environment or another mutually-acceptable remote communications method. 2.1.5 On-Site Support If CITY does not wish for Accela to resolve its maintenance requests remotely, Accela will provide on-site assistance to CITY at Accela’s then-current time-and materials rates. 2.1.6 Software Updates Accela will provide revisions of and enhancements to maintained software products to CITY as such updates are generally-released by Accela. Software updates will be delivered or made available to CITY for electronic download from Accela’s File Transfer Protocol (“FTP”) site. 2.2 Maintenance Limitations 2.2.1 Additional Maintenance Services (Optional) The following are not covered by Professional Services Rev. Nov. 1, 2011 10 this MA, but may be separately available at rates and on terms which may vary from those described herein and may be added to this Agreement with a mutually agreed upon amendment: a) Services required due to misuse of the Accela-maintained software products; b) Services required due to software corrections, customizations, or modifications not developed or authorized by Accela; c) Services required by CITY to be performed by Accela outside of Accela’s usual working hours as referenced in Section 2.1.1 above; d) Services required due to external factors including, but not necessarily limited to, CITY’s use of software or hardware not authorized by Accela; e)Services which relate to tasks other than maintenance of CITY’s existing implementation and configuration of the Accela-maintained software products including, but not necessarily limited to, enhancing or adapting such products for specific operating environments; f)Services requested by CITY to implement software updates provided by Accela pursuant to this MA; g) New or additional applications, modules or functionality to support or enhance the Accela-maintained software products; h) Services required to resolve or work-around conditions which cannot be reproduced in Accela’s support environment. 2.2.2 Legacy Releases Accela will provide maintenance support for the current release of each of its maintained software applications and for the release immediately preceding such current release. All other releases are deemed to be “Legacy Releases”. Accela will respond to maintenance requests concerning Legacy Releases only using currently-available information. Services requiring additional research, engineering-level support, or coding or programming by Accela will not be provided pursuant to this MA, but may be separately available at rates and on terms which may vary from those described herein. 2.3 Security Accela will provide physical security for the equipment utilized by the CITY for the purposes of this Agreement and will provide network security. 2.4 Warranty Accela will commence and complete the maintenance obligations described in this MA in a good and workmanlike manner, consistent with the practices and standards of care generally-accepted within and expected of Accela’s industry, to ensure that the operation of the maintained software products does not materially differ from documented specifications. Accela may make repeated efforts within a reasonable time period to resolve maintenance requests. When a maintenance request cannot be resolved, City’s exclusive remedy will be damages in an amount equal to the total of maintenance fees paid to Accela for the defective or non-conforming software products for the twelve (12) calendar months immediately preceding City’s maintenance request. Professional Services Rev. Nov. 1, 2011 11 Accela provides no warranty whatsoever for any third-party hardware or software products. Third-party applications which utilize or rely upon the Application Services may be adversely affected by remedial or other actions performed pursuant to this MA; Accela bears no liability for and has no obligation to remedy such effects. Except as set forth herein, Accela provides all Maintenance Services “as is” without express or implied warranty of any kind regarding the character, function, capabilities, or appropriateness of such services or deliverables. To the extent not offset by its insurance coverage and to the maximum extent permitted by applicable laws, in no event will Accela’s cumulative liability for any general, incidental, special, compensatory, or punitive damages whatsoever suffered by CITY or any other person or entity exceed the fees paid to Accela by CITY during the twelve (12) calendar months immediately preceding the circumstances which give rise to such claim(s) of liability, even if Accela or its agents have been advised of the possibility of such damages. 3. Hosting Services Accela will provide the following hosting services for the maintained software products listed in Exhibit A-1 (“Hosted Applications”): 3.1 System Administration and Security The Hosted Applications will be hosted by Accela on Accela owned equipment at a physically-secure commercial third-party hosting facility. Accela will perform system administration duties as required to maintain the service levels described below and to facilitate timely restoration of CITY’s data and operations, if necessary, following unanticipated interruptions of the Hosted Applications. Accela will implement suitable network security measures to minimize the likelihood of unanticipated interruptions of the Hosted Applications. 3.2 Infrastructure Availability Accela will provide CITY with no less than twenty-four (24) hours’ notice prior to Hosted Applications unavailability due to planned maintenance and will provide five (5) business days’ notice prior to any planned network, server hardware, operating environment, or database modifications of a material nature. Excluding the foregoing planned events, Accela warrants that the Hosted Applications will be generally-available no less than ninety-eight percent (98%) of each calendar day. For each calendar day during which the availability of the Hosted Applications does not achieve the established standard, Accela will credit two hundred dollars ($200.00) to CITY’s account as liquidated damages, provided that the substandard availability is identified by CITY in writing or by e-mail to Accela and can be objectively verified. Credits accumulated pursuant to this Section may be applied to additional Accela products and/or services, but will not be refunded to CITY. 3.3 CITY Property CITY warrants that that it exclusively owns its data and that it has both the right and the authority to provide such data to Accela. CITY retains full ownership of its data and grants to Accela a limited, nonexclusive, nontransferable license to use said data only to perform Accela’s obligations in accordance with the terms and conditions of this Service Agree Agreement. Within thirty (30) calendar days following termination or expiration of this Service Agreement, CITY may request that Accela provide a complete copy of CITY’s data, as such may be updated Professional Services Rev. Nov. 1, 2011 12 or modified by CITY’s use of the Hosted Applications, to CITY in a machine- readable format. Accela will comply in a timely manner with such request, provided that CITY a) pays all costs of and associated with such copying, as calculated at Accela’s then-current time-and-materials rates; and b) pays all unpaid amounts due to Accela. 4. Other Terms and Conditions 4.1 CITY Obligations As required, CITY will provide Accela with appropriate access to CITY’s facilities, data systems and other resources. If Security restrictions impair such access, CITY acknowledges that some maintenance services hereunder may not be provided to CITY. It is CITY’s sole responsibility to maintain current backup copies of its data and of its implementation of Accela’s software products. If CITY’s failure to create proper backups substantially increases the difficulties of any remedial actions by Accela hereunder, Accela reserves the right to charge CITY for any extra work reasonably attributable to such increased difficulty, as calculated at Accela’s then-current time-and-materials rates. Professional Services Rev. Nov. 1, 2011 13 EXHIBIT “A-1” HOSTED APPLICATIONS (Modules City is currently licensed) Accela Automation/Velocity Hall Modules AA Classic: Building Inspection Planning Entitlements Code Enforcement Fire Permits Public Works Business License Accela Citizen Access GovXML Selectron IVR Professional Services Rev. Nov. 1, 2011 14 EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed. Maintenance and Support Services October 1, 2013-September 30, 2014 (As described in Exhibit “A”) Maintenance and Support Services October 1, 2014- September 30, 2015 (As described in Exhibit “A”) Maintenance and Support Services October 1, 2015- September 30, 2016 (As described in Exhibit “A”) Maintenance and Support Services October 1, 2016- September 30, 2017 (As described in Exhibit “A”) Maintenance and Support Services October 1, 2017- September 30, 2018 (As described in Exhibit “A”) Professional Services Rev. Nov. 1, 2011 15 EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as exhibit C-1 up to the not to exceed budget amount for each task set forth below. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit “A” (“Basic Services”) and reimbursable expenses shall not exceed $657,852.81. CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $0. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, does not exceed $657,852.81 and the total compensation for Additional Services does not exceed $0. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Year 1 $119,054.78 (Maintenance and Support) Year 2 $125,007.52 (Maintenance and Support) Year 3 $131,257.89 (Maintenance and Support) Task 4 $137,820.79 (Maintenance and Support) Task 5 $144,711.83 (Maintenance and Support) Sub-total Basic Services $657,852.81 Reimbursable Expenses $0 Total Basic Services and Reimbursable expenses $657,852.81 Professional Services Rev. Nov. 1, 2011 16 Additional Services (Not to Exceed) $0 Maximum Total Compensation $657,852.81 Professional Services Rev. Nov. 1, 2011 17 EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. Professional Services Rev Nov. 1, 2011 18 B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303 Professional Services Rev Nov. 1, 2011 19 City of Palo Alto (ID # 4424) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/27/2014 City of Palo Alto Page 1 Summary Title: Contract for Professional Services for Total Compensation Survey - Management & Professional Title: Approval of Contract for Professional Services with Waters Consulting Group, Inc., and Adoption of a Budget Amendment Ordinance In The Amount Of $98,050 for a Total Compensation Market Study for the Management & Professional Classifications From: City Manager Lead Department: Human Resources Recommendation Staff recommends that Council approve and authorize the City Manager or his designee to execute a contract for professional services with Waters Consulting Group, Inc. in the amount not to exceed $98,050 for the provision of a total compensation market study for the Management & Professional classifications, to take place during January through May, 2014. Staff also recommends adoption of a budget amendment ordinance to cover the cost of the study. Discussion On June 16, 2012, the Management & Professional Compensation Plan was updated, effective July 1, 2013, to implement a total compensation study that represented market data collected during 2010 through 2012. At the June 16, 2013 Council session, Council directed that staff conduct a follow up study to obtain current market data for the positions in that study. Staff issued an RFP for a total compensation market survey for up to 128 classifications within the Management & Professional group. The study also includes positions in the Utilities Management and Professional Association, which is now a separate bargaining unit. Utility manager positions have historically been included in management studies and were evaluated in the prior study. Consistent with other recent compensation studies, the factors included in “total compensation” are base salary and cash additives, active employee health benefits and other insurances, and the value of the normal cost of retiree medical benefits. City of Palo Alto Page 2 Staff received five proposals that met the requirements of the RFP, reviewed all proposals submitted and recommends selecting Waters Consulting Group, Inc. Waters specializes in municipal and county compensation work and has a rigorous methodology for collecting and analyzing total compensation data. In addition, they offer a cloud-based software program that houses the total compensation data collected. Waters also had the most comprehensive references and a dedicated, experienced team to work on the project. The proposal reflects an amount of up to $98,050 for the professional services. Resource Impact Funding has not been budgeted as part of the Fiscal Year 2014 Adopted Budget. Therefore, staff requests that the City Council approve the attached Budget Amendment Ordinance, which recommends increasing the People Strategy & Operations Department budget by $98,050 and decreasing the General Fund Budget Stabilization Reserve by $98,050 to $30,173,950. Policy Implications Approval of the contract does not represent any change to the existing policy. Environmental Review Approval of this contract and adoption of a budget amendment ordinance are not projects under the California Environmental Quality Act; therefore environmental review is not required. Attachments:  Attachment A: BAO Management Compensation Plan Update (DOC)  Waters Consulting Contract (PDF) ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR FISCAL YEAR 2014 TO PROVIDE AN ADDITIONAL APPROPRIATION OF $98,050 FROM THE BUDGET STABILIZATION RESERVE FOR A TOTAL COMPENSATION MARKET STUDY FOR THE MANAGEMENT & PROFESSIONAL CLASSIFICATIONS. The Council of the City of Palo Alto does ordain as follows: SECTION 1. The Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 10, 2013 did adopt a budget for Fiscal Year 2014; and B. On June 16th, 2012, staff updated the Management & Professional Compensation Plan, effective July 1, 2013, to implement a total compensation study with market data collected from 2010 through 2012; and C. On June 16th, 2013, Council directed staff to conduct a follow up study to obtain current market data; and D. Staff issued a Request for Proposal for a total compensation market study for up to 128 classifications within the Management & Professional group and the Utility Managers. Staff received five proposals that met the requirements of the RFP, reviewed all proposals submitted and selected Walters Consulting Group, Inc. Walters specializes in municipal and county compensation works and has a rigorous methodology for collecting and analyzing compensation data; and E. City Staff recommended use of the General Fund Budget Stabilization Reserve in the amount of $98,050 due to the immediate nature of this request; and F. City Council authorization is needed to amend the Fiscal Year 2014 Operating Budget as hereinafter set forth. ATTACHMENT A SECTION 2. The sum of Ninety-Eight Thousand, Fifty ($98,050) is hereby appropriated for the People Strategy and Operations Department from the General Fund Stabilization Reserve. SECTION 3. The People Strategy & Operations Department budget is hereby increased by Ninety-Eight Thousand, Fifty ($98,050) and the General Fund Budget Stabilization Reserve is hereby decreased by Ninety-Eight Thousand, Fifty ($98,050) to Thirty Million, One Hundred Seventy-Three Thousand, Nine Hundred Fifty ($30,173,950). SECTION 4. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. SECTION 5. The Council of the City of Palo Alto hereby finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: _________________________ City Clerk __________________________ Mayor APPROVED AS TO FORM: _________________________ Senior Assistant City Attorney __________________________ City Manager __________________________ Human Resources Director/Chief People Officer __________________________ Director of Administrative Services CITY OF PALO ALTO OFFICE OF THE CITY CLERK January 27, 2014 The Honorable City Council Palo Alto, California Appointment of 2014 Emergency Standby Council Staff recommends that the City Council approve the selection of the 2014 Emergency Standby Council as follows: -John Barton -Bern Beecham -Peter Drekmeier -Sid Espinosa -Yoriko Kishimoto -Dena Mossar -Lanie Wheeler BACKGROUND The Charter of the City of Palo Alto provides that "the Council may by Ordinance or Resolution, provide for the preservation and continuation of government in the event of disaster which renders unavailable a majority of the Council." On August 7, 2006, the City Council adopted amendments to Section 2.12.090 of the Palo Alto Municipal Code regarding the selection procedure for the City's Emergency Standby Council. The adopted policy states that the Council shall consider the following criteria for appointments to the Emergency Standby Council: residency in the City of Palo Alto, availability, interest in serving and a lack of conflicts of interest. Seven members serve on the Emergency Standby Council. The members of the Emergency Standby Council continue to serve until the Council appoints or reappoints the members at the beginning of each year. Department Head: Donna Grider, City Clerk Page 2 CITY OF PALO ALTO OFFICE OF THE CITY CLERK January 27, 2014 The Honorable City Council Palo Alto, California SECOND READING: Ordinance to Amend Sections 18.04.030 (Definitions), 18.16.060 (CN Zone), 18.18.060 (CD Zone), 18.20.030 (ROLM(E) Zone) and Add Section 18.46 (Reasonable Accommodation) of Title 18 (Zoning) of Palo Alto Municipal Code to Implement 2007- 2014 Housing Element Programs (First Reading: January 13, 2014 PASSED: 7-2 Klein, Schmid no) This was heard by the City Council on January 13, 2014, no changes were made to the Ordinance. This is a second reading. ATTACHMENTS:  Ordinance (PDF) Department Head: Donna Grider, City Clerk Page 2 Not Yet Approved 1 ORD Amend Title 18 (Zoning) to Implement Housing Element Revised: January 7, 2014 130107 jb 0131163 Ordinance No. ______ Ordinance of the Council of the City of Palo Alto Amending Sections 18.04.030 (Definitions), 18.16.060 (Development Standards for CN, CC, and CS Districts), and 18.20.030 (Land Uses for MOR, ROLM, RP and GM Districts) of Title 18 (Zoning), and adding Chapter 18.46 (Requests for Reasonable Accommodation for Accessibility) to Title 18 (Zoning) of the Palo Alto Municipal Code to Implement the adopted 2007-2014 Housing Element The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Recitals. The Council of the City of Palo Alto finds and declares as follows: A. On June 17, 2013, the City Council adopted the 2007-2014 Housing Element to provide a framework for housing opportunities in the City of Palo Alto. This ordinance implements some of the policies and programs contained in the Housing Element by updating the City’s Below Market Rate Housing Program to apply to projects with three or more units, allow for increased density (from 15 units per acre to 20 units per acre) on sites designated as Housing Inventory Sites (HIS) by the Housing Element within the CN zone district, provide opportunities for emergency shelters for the homeless with appropriate performance standards within the ROLM(E) zone district east of Highway 101, provide opportunities for placement of transitional and supportive housing as required by State law, and to provide a process for requests for reasonable accommodation to remove constraints to the development of housing for individuals with disabilities and provide reasonable access to housing. B. The 2007-2014 Housing Element includes programs (Programs H2.2.5, H3.1.1, H3.5.1 and H4.1.6) which require that these changes to the zoning code be adopted. Staff anticipates that the changes to the density in the CN district and the change in the Below Market Rate Housing Program to include any project with three or more units will be an important tool to help the City accommodate its Regional Housing Needs Allocation (RHNA) numbers. The changes to allow emergency shelters in certain locations subject to performance standards and to allow opportunities for transitional and supportive housing will bring the zoning code into compliance with the provisions of Government Code Section 65583 and 65589.5 . The reasonable accommodations program will remove constraints to providing necessary improvements to housing for persons with disabilities. C. The federal Fair Housing Amendments Act of 1988 and the California Fair Employment Act require local governments to make reasonable accommodation in their land use and zoning regulations and practices when such accommodation may be necessary to provide individuals with disabilities an equal opportunity to housing. The Not Yet Approved 2 ORD Amend Title 18 (Zoning) to Implement Housing Element Revised: January 7, 2014 130107 jb 0131163 Attorney General of the State of California has recommended that cities implement fair housing reasonable accommodation procedures for making land use and zoning determinations to further the development of housing for individuals with disabilities. A fair housing reasonable accommodation procedure for individuals with disabilities to seek relief in the application of zoning regulations will further Palo Alto’s compliance with federal and state fair housing laws and provide greater opportunities for the development of critically needed housing for individuals with disabilities. SECTION 2. Section 18.040.030(a)(50) (Definition of Emergency Shelters) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby added to read as follows: (50) "Emergency shelter" means a facility or use, which provides temporary housing (six months or less) for homeless individuals or families and may involve supplemental services. Supplemental services may include, but are not limited to, meal preparation, an activities center, day care for homeless person's children, vocational rehabilitation and other similar activities. SECTION 3. Section 18.040(a)(135.5) (Definition of Supportive Housing) is added to read as follows: (135.5) "Supportive Housing" means housing with no limit on length of stay, that is occupied by target populations, as defined by Section 53260(d) of the California Health and Safety Code, and that is linked to on- or off-site services that assist the supportive housing residents in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community. Supportive housing shall be considered as a multiple-family use and only subject to those restrictions that apply to other multiple-family uses of the same type in the same zone. Supportive housing programs may use residential care homes wholly or as a part of their overall facilities. SECTION 4. Section 18.040(a)(138) (Definition of Transitional Housing) is added to read as follows: (138) "Transitional Housing" means buildings configured as rental housing developments, but operated under program requirements that call for termination of assistance and recirculation of the assisted units to another eligible program recipient at some predetermined future point in time, which shall be no less than six months. Support services may include meals, counseling, and other services, as well as common areas for residents of the facility. Transitional housing shall be considered a multiple-family use and only subject to those restrictions that apply to other multiple-family uses of the same type in the same zone. Transitional housing programs may use residential care homes wholly or as part of their overall facilities. Not Yet Approved 3 ORD Amend Title 18 (Zoning) to Implement Housing Element Revised: January 7, 2014 130107 jb 0131163 SECTION 5. Section 18.16.060 (Development Standards for CN, CC, and CS Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended to read as follows: 18.16.060 Development Standards (a) Exclusively Non-Residential Uses Table 3 specifies the development standards for exclusively non-residential uses and alterations to non-residential uses or structures in the CN, CC, CC(2) and CS districts. These developments shall be designed and constructed in compliance with the following requirements and the context-based design criteria outlined in Section 18.16.090, provided that more restrictive regulations may be recommended by the architectural review board and approved by the director of planning and community environment, pursuant to Section 18.76.020. TABLE 3 EXCLUSIVELY NON-RESIDENTIAL DEVELOPMENT STANDARDS CN CC CC(2) CS Subject to regulations in Section Minimum Site Specifications Site Area (ft2) Site Width (ft) Site Depth (ft) None Required Minimum Setbacks Front Yard (ft) 0 – 10’ to create an 8’ – 12’ effective sidewalk width (1), (2), (8) None Required (8) 0 – 10’ to create an 8’ – 12’ effective sidewalk width (1), (2), (8) 0 – 10’ to create an 8’ – 12’ effective sidewalk width (1), (2), (8) Setback lines imposed by a special setback map pursuant to Chapter 20.08 of this code Rear Yard (ft) None required Interior Side Yard (ft) Street Side Yard (ft) 20’ (2) None required Minimum Yard (ft) for lot lines abutting or opposite residential districts or residential PC districts 10’ (2) 10’ (2) 10’ (2) 10’ (2) Build-To-Lines 50% of frontage built to setback (7) 33% of side street built to setback (7) Minimum setbacks from alleys for structures other than public parking garages (ft) (3) Corner lots, from rear lot line on the alley Not applicable 8’ Not applicable Corner lots, from side lot line on the alley None All lots other than corner lots 20’ Maximum Site 50% None Required Not Yet Approved 4 ORD Amend Title 18 (Zoning) to Implement Housing Element Revised: January 7, 2014 130107 jb 0131163 CN CC CC(2) CS Subject to regulations in Section Coverage Maximum Height (ft) Standard 25’ and 2 stories 50’ 37’ (4) 50’ Within 150 ft. of a residential district (other than an RM-40 or PC zone) abutting or located within 50 feet of the site 35’ 35’ 35’ Maximum Floor Area Ratio (FAR) 0.4:1 2.0:1 0.4:1 18.18.060(e) Maximum Floor Area Ratio (FAR) for Hotels N/A - (5) 2.0:1 2.0:1 18.18.060(d) Daylight Plane for lot lines abutting one or more residential zone districts other than an RM-40 or PC zone Initial Height at side or rear lot line (ft) - (6) - (6) - (6) - (6) Slope - (6) - (6) - (6) - (6) (1) No parking or loading space, whether required or optional, shall be located in the first 10 feet adjoining the street property line of any required yard. (2) Any minimum front, street side, or interior yard shall be planted and maintained as a landscaped screen excluding areas required for access to the site. A solid wall or fence between 5 and 8 feet in height shall be constructed along any common interior lot line. (3) No setback from an alley is required for a public parking garage. (4) As measured to the peak of the roof or the top of a parapet; penthouses and equipment enclosures may exceed this height limit by a maximum of five feet, but shall be limited to an area equal to no more than ten percent of the site area and shall not intrude into the daylight plane. (5) See additional regulations in subsection (e) of this Section 18.16.050. (6) The initial height and slope shall be identical to those of the most restrictive residential zone abutting the site line in question. (7) Twenty-five-foot driveway access permitted regardless of frontage; build-to requirement does not apply to CC district. (8) A 12-foot sidewalk width is required along El Camino Real frontage. (b) Mixed Uses Table 4 specifies the development standards for new residential mixed use developments. These developments shall be designed and constructed in compliance with the following requirements and the context-based design criteria outlined in Section 18.16.090, provided that more restrictive regulations may be recommended by the architectural review board and approved by the director of planning and community environment, pursuant to Section 18.76.020. TABLE 4 MIXED USE DEVELOPMENT STANDARDS Not Yet Approved 5 ORD Amend Title 18 (Zoning) to Implement Housing Element Revised: January 7, 2014 130107 jb 0131163 CN CC C C(2) CS Subject to regulations in: Minimum Site Specifications Site Area (ft2) None required Site Width (ft) Site Depth (ft) Minimum Setbacks Setback lines imposed by a special setback map pursuant to Chapter 20.08 of this code may apply Front Yard (ft) 0’ – 10’ to create an 8’ – 12’ effective sidewalk width (8) None Required (8) 0’ – 10’ to create an 8’ – 12’ effective sidewalk width (8) 0’ – 10’ to create an 8’ – 12’ effective sidewalk width (8) Rear Yard (ft) 10’ for residential portion; no requirement for commercial portion Rear Yard abutting residential zone district (ft) 10’ Interior Side Yard if abutting residential zone district (ft) 10’ Street Side Yard (ft) 5’ Build-To-Lines 50% of frontage built to setback(1) 33% of side street built to setback(1) Permitted Setback Encroachments Balconies, awnings, porches, stairways, and similar elements may extend up to 6’ into the setback. Cornices, eaves, fireplaces, and similar architectural features (excluding flat or continuous walls or enclosures of interior space) may extend up to 4’ into the front and rear setbacks and up to 3’ into interior side setbacks Maximum Site Coverage 50% 50% 100% 50% Landscape/Open Space Coverage 35% 30% 20% 30% Usable Open Space 200 sq ft per unit for 5 or fewer units (2), 150 sq ft per unit for 6 units or more (2) Maximum Height (ft) Standard 35’ (4) 50’ 37’ 50’ Within 150 ft. of a residential zone district (other than an RM-40 or PC zone) abutting or located within 50 feet of the site 35’ 35’ (5) 35’ (5) 35’ (5) Daylight Plan for lot lines abutting one or more residential zoning districts Daylight plane height and slope shall be identical to those of the most restrictive residential zoning district abutting the lot line Residential Density (net)(3) 15 or 20(9) See sub- section (e) below 30 30 Maximum Residential Floor Area Ratio (FAR) 0.5:1 (4) 0.6:1 0.6:1 Not Yet Approved 6 ORD Amend Title 18 (Zoning) to Implement Housing Element Revised: January 7, 2014 130107 jb 0131163 CN CC C C(2) CS Subject to regulations in: Maximum Nonresidential Floor Area Ratio (FAR) 0.4:1 2.0:1 0.4:1 Total Mixed Use Floor Area Ratio (FAR) 0.9:1 (4) 2.0:1 1.0:1 Minimum Mixed Use Ground Floor Commercial FAR (6) 0.15:1 0.15:1 0.25:1 (7) 0.15:1 Parking See Chapters 18.52 and 18.54 (Parking) 18.52, 18.54 (1) Twenty-five-foot driveway access permitted regardless of frontage; build-to requirement does not apply to CC district. (2) Required usable open space: (1) may be any combination of private and common open spaces; (2) does not need to be located on the ground (but rooftop gardens are not included as open space); (3) minimum private open space dimension six feet; and (4) minimum common open space dimension twelve feet. (3) Residential density shall be computed based upon the total site area, irrespective of the percent of the site devoted to commercial use. (4) For CN sites on El Camino Real, height may increase to a maximum of 40 feet and the FAR may increase to a maximum of 1.0:1 (0.5:1 for nonresidential, 0.5:1 for residential). (5) For sites abutting an RM-40 zoned residential district or a residential Planned Community (PC) district, maximum height may be increased to 50 feet. (6) Ground floor commercial uses generally include retail, personal services, hotels and eating and drinking establishments. Office uses may be included only to the extent they are permitted in ground floor regulations. (7) If located in the California Avenue Parking Assessment District. (8) A 12-foot sidewalk width is required along El Camino Real frontage. (9) Residential densities up to 20 units/acre only on Housing Inventory Sites identified in the 2007-2014 Housing Element. (1) Residential and nonresidential mixed use projects shall be subject to site and design review in accord with Chapter 18.30(G), except that mixed use projects with four or fewer residential units shall only require review and approval by the architectural review board. (2) Nonresidential uses that involve the use or storage of hazardous materials in excess of the exempt quantities prescribed in Title 15 of the Municipal Code, including but not limited to dry cleaning plants and auto repair, are prohibited in a mixed use development with residential uses. (3) Residential mixed use development is prohibited on any site designated with an Automobile Dealership (AD) Combining District overlay. (c) Exclusively Residential Uses Exclusively residential uses are generally prohibited in the CN, CS, CC, and CC(2) zone districts. Such uses are allowed, however, where a site is designated as a Housing Opportunity Site in the Housing Element of the Comprehensive Plan. Such sites shall be developed pursuant to the regulations for the multi-family zone designation (RM-15, RM-30, or RM-40) identified for the site in the Housing Element. SECTION 6. Section 18.18.060 (Development Standards for CD District) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended to read as follows: 18.18.060 Development Standards Not Yet Approved 7 ORD Amend Title 18 (Zoning) to Implement Housing Element Revised: January 7, 2014 130107 jb 0131163 (c) Exclusively Residential Uses Exclusively residential uses are generally prohibited in the CD zone districts. Such uses are allowed, however, where a site is designated as a Housing Opportunity Site in the Housing Element of the Comprehensive Plan. Such sites shall be developed pursuant to the regulations for the multi-family zone designation (RM-15, RM-30, or RM-40) identified for the site in the Housing Element. SECTION 7. Section 18.20.030 (Land Uses for MOR, ROLM, RP and GM Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended to read as follows: 18.20.030 Land Uses (a) Permitted and Conditionally Permitted Land Uses Table 1 lists the land uses permitted or conditionally permitted in the industrial and manufacturing districts. TABLE 1 INDUSTRIAL/MANUFACTURING DISTRICT LAND USES [P = Permitted Use ▪ CUP = Conditional Use Permit Required] MOR ROLM ROLM(E) RP RP(5) GM Subject to regulations in Chapter: ACCESSORY AND SUPPORT USES Accessory facilities and activities customarily associated with or essential to permitted uses, and operated incidental to the principal use. P P P P Chs. 1840, 18.42 Automatic Teller Machines P P P P 18.20.030(d) Home Occupations, when accessory to permitted residential uses. P P P P Chs. 18.40, 18.42 EDUCATIONAL, RELIGIOUS, AND ASSEMBLY USES Business and Trade Schools P Religious Institutions P P P Colleges and Universities P P P Private Clubs, Lodges, or Fraternal Organizations CUP CUP CUP CUP Private Schools (K-12) CUP CUP CUP CUP HEALTH CARE SERVICES Ambulance Services CUP Convalescent Facilities CUP CUP Medical Office P CUP CUP Medical Research P P P 18.20.030(c) Not Yet Approved 8 ORD Amend Title 18 (Zoning) to Implement Housing Element Revised: January 7, 2014 130107 jb 0131163 [P = Permitted Use ▪ CUP = Conditional Use Permit Required] MOR ROLM ROLM(E) RP RP(5) GM Subject to regulations in Chapter: Medical Support Retail P 18.20.030(b) Medical Support Services P 18.20.030(b) MANUFACTURING AND PROCESSING USES Manufacturing P P P Recycling Centers CUP CUP CUP Research and Development CUP P P P Warehousing and Distribution P P P OFFICE USES Administrative Office Services P P CUP Financial Services CUP CUP Professional and General Business Office P P PUBLIC/QUASI-PUBLIC USES Service and Equipment Yards P Utility Facilities CUP Utility Facilities essential to provision of utility services but excluding construction/storage yards, maintenance facilities, or corporation yards CUP CUP CUP RECREATION USES Commercial Recreation CUP CUP CUP Neighborhood Recreational Centers CUP RESIDENTIAL USES Single-Family Not permitted 18.20.040(b) Two-Family Not permitted Multiple-Family CUP CUP CUP Residential Care Homes P P P CUP RETAIL USES Eating and Drinking Services, excluding drive-in and take-out services CUP CUP CUP Retail Services CUP CUP CUP SERVICE USES Animal Care, excluding boarding and kennels P Boarding and Kennels CUP Day Care Centers P P P CUP Emergency Shelters for the Homeless P (ROLM(E) 18.20.030(d) Family Day Care Homes Small Family Day Care P P P P Large Family Day Care P P P P General Business Services P Lodging Hotels providing not more than 10% of rooms with kitchens CUP Not Yet Approved 9 ORD Amend Title 18 (Zoning) to Implement Housing Element Revised: January 7, 2014 130107 jb 0131163 [P = Permitted Use ▪ CUP = Conditional Use Permit Required] MOR ROLM ROLM(E) RP RP(5) GM Subject to regulations in Chapter: Mortuaries and Funeral Homes P Personal Services CUP CUP CUP Vehicle Services Automobile Service Stations, subject to site and design review in accord with the provisions of Chapter 18.30(G) CUP CUP Automotive Services CUP Off-site new vehicle storage for auto dealerships located in Palo Alto CUP CUP TEMPORARY USES Temporary Parking Facilities, provided that such facilities shall remain no more than five years CUP CUP CUP CUP TRANSPORTATION USES Passenger Transportation Terminals CUP (b) Limitations on Medical Support Service and Medical Support Retail Uses in the Medical Office and Medical Research (MOR) Zone (1) The intent of this limitation is to restrict medical support service and medical support retail uses in the Medical Office and Medical Research (MOR) zone in order to preserve and facilitate space for medical offices and medical research facilities. (2) Floor area devoted to medical support services and medical support retail uses in the Medical Office and Medical Research (MOR) zoning district shall not exceed twenty percent (20%) of the total gross floor area within the district. (3) The director may require a report from the property owner or applicant whenever application is made to the city to develop new space for medical support service or medical support retail uses or to convert existing space to such uses. The report shall identify the gross floor area of buildings on each site within the zoning district and the gross floor area of medical support service and medical support retail uses for each site. The director may, from time to time, establish procedures and standards implementing this Section 18.20.030(b). (c) Automatic Teller Machines (1) Automatic teller machines may be allowed as an accessory use in the MOR, ROLM, ROLM(E), RP, RP(5), and GM districts when incidental to a primary use on the site and when accessible only from the interior of a building. Not Yet Approved 10 ORD Amend Title 18 (Zoning) to Implement Housing Element Revised: January 7, 2014 130107 jb 0131163 (2) Automatic teller machines may be allowed as a permitted use in the MOR, ROLM, ROLM(E), RP, RP(5), and GM districts when incidental to a primary use on the site and when accessible from the exterior of a building. Staff level Architectural Review is required prior to issuance of a building permit. (d) Emergency Shelters for the Homeless Emergency shelters for the homeless may be allowed as a permitted use in the ROLM(E) district on properties located east of Highway 101, subject to the following performance and design standards. Performance and Design Standards for Emergency Shelters for the Homeless An emergency shelter for the homeless shall conform to all site development standards and performance criteria of the ROLM(E) zone district except as modified by the following performance and design standards: (1) The construction of and/or renovation of a building for use as an emergency shelter shall conform to all applicable building and fire code standards. (2) There shall be provided one parking space for each three (3) beds in the emergency shelter. (3) Shelters shall have designated smoking areas that are not visible from the street and which are in compliance with all other laws and regulations. (4) There shall be no space for outdoor congregating in front of the building adjacent to the street and no outdoor public telephones. (5) There shall be a refuse area screened from view. (6) Maximum Number of Persons/Beds. The emergency shelter for the homeless shall contain no more than 40 beds. (7) Size and location of exterior and interior on-site waiting and client intake areas. Shelters shall provide 10 square feet of interior waiting and client intake space per bed. In addition, there shall be two office areas provided for shelter staff. Waiting and intake areas may be used for other purposes as needed during operations of the shelter. (8) On-site management. On-site management and on-site security shall be provided during hours when the emergency shelter is in operation. Not Yet Approved 11 ORD Amend Title 18 (Zoning) to Implement Housing Element Revised: January 7, 2014 130107 jb 0131163 (9) The emergency shelter provider shall submit an operations plan that addresses the standards for operation contained in the Palo Alto Quality Assurance Standards for Emergency Shelters for the Homeless. (10) Distance to other facilities. The shelter must be more than 300 feet from any other shelters for the homeless. (11) Length of stay. Temporary shelter shall be available to residents for no more than 60 days. Extensions up to a total stay of 180 days may be provided if no alternative housing is available. (12) Outdoor lighting shall be sufficient to provide illumination and clear visibility to all outdoor areas, with minimal shadows or light leaving the property. The lighting shall be stationary, and directed away from adjacent properties and public rights-of- way. SECTION 8. Chapter 18.46 (Requests for Reasonable Accommodation for Accessibility) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby added to read as follows: Chapter 18.46 REQUESTS FOR REASONABLE ACCOMMODATION FOR ACCESSIBILITY Sections: 18.46.010 Purpose 18.46.020 Applicability 18.46.030 Application Requirements 18.46.040 Review Procedure 18.46.050 Required Criteria for Reasonable Accommodations 18.46.060 Decisions 18.46.070 Appeal 18.46.080 Effect of Chapter 18.46.010 Purpose The purpose of this chapter is to provide a formal procedure to request reasonable accommodation for persons with disabilities seeking equal access to housing under the Federal Fair Housing Act and the California Fair Employment Act (the Acts) in the application of zoning laws and other land use regulations, policies and procedures, and to establish relevant criteria to be used when considering such requests. 18.46.020 Applicability Not Yet Approved 12 ORD Amend Title 18 (Zoning) to Implement Housing Element Revised: January 7, 2014 130107 jb 0131163 In order to make specific housing available to an individual with a disability, any person may request a modification or exception to the rules, standards and practices for the siting, development and use of housing or housing-related facilities that would eliminate regulatory barriers and provide a person with a disability equal opportunity to housing of their choice. Typical improvements which may be considered for reasonable accommodation provisions include ramps, walls, handrails, elevators or lifts, or other similar physical improvements necessary to accommodate a person's disability. The reasonable accommodation would allow exceptions to setback, lot coverage and floor area provisions of the zoning code that are deemed necessary to accommodate these improvements. A person with a disability is a person who has a physical or mental impairment that limits or substantially limits one or more major life activities, anyone who is regarded as having such impairment, or anyone who has a record of such impairment. This Chapter applies only to those persons who are defined as disabled under the Acts. 18.46.030 Application Requirements (a) Requests for reasonable accommodation shall be initiated by submitting a completed application form to the Director of Planning and Community Environment, signed by the property owner, together with the appropriate fee, as established by resolution adopted by the city council, and shall be filed in the office of the planning division of the Department of Planning and Community Environment. The following information shall be included with the application: (1) The applicant's name, address and telephone number; (2) Address of the property for which the request is being made; (3) The current use of the property; (4) The basis for the claim that the individual is considered disabled under the Acts, including supporting medical documentation from a qualified medical expert in support of the request for accommodation; (5) The zoning code provision or other city regulation or policy from which the reasonable accommodation is being requested; and (6) An explanation of why the reasonable accommodation is necessary to make the specific property accessible to the individual. (b) Any information identified by an applicant as confidential shall be retained in a manner so as to respect the privacy rights of the applicant and shall not be made available for public inspection. (c) A request for reasonable accommodation in regulations, policies, practices and procedures may be filed at any time that the accommodation may be necessary to ensure equal access to housing. A reasonable accommodation does not affect an individual’s obligations to comply with other applicable regulations not at issue in the requested accommodation. Not Yet Approved 13 ORD Amend Title 18 (Zoning) to Implement Housing Element Revised: January 7, 2014 130107 jb 0131163 (d) If an individual needs assistance in making the request for reasonable accommodation, the Planning and Community Environment Department will provide assistance to ensure that the process is accessible. (e) Review with other planning applications. If the project for which the request for reasonable accommodation is being made also requires some other discretionary approval under this Title (including but not limited to architectural review, conditional use permit, or variance), the application shall be submitted and reviewed at the same time as the related applications. 18.46.040 Review Procedure Notwithstanding any other provisions of this chapter, the Director of Planning and Community Environment shall have the authority to consider and take action on requests for reasonable accommodation. The application shall be reviewed ministerially without discretionary review or public hearing. If the application is granted because the requirements and criteria are met, the applicant may proceed with a building permit. If the application is submitted concurrent with an application requiring discretionary review, the procedures for the discretionary review shall be followed. 18.46.050 Required Criteria for Reasonable Accommodations Any decision on an application under this chapter shall be supported by a written statement addressing the criteria set forth in this section. In making a determination regarding the reasonableness of a requested accommodation, the determination shall be consistent with fair housing laws and based on the following criteria: (a) Whether the housing that is subject to the request for reasonable accommodation will be used for an individual with a disability under the Acts. (b) Whether the request for reasonable accommodation is necessary to make specific housing available to an individual with a disability under the Acts. (c) Whether the requested reasonable accommodation would impose an undue financial or administrative burden on the community. (d) Whether the requested accommodation would require a fundamental alteration to the City's zoning requirements, development standards, policies or procedures. (e) Whether the requested reasonable accommodation would adversely impact surrounding properties or uses. Not Yet Approved 14 ORD Amend Title 18 (Zoning) to Implement Housing Element Revised: January 7, 2014 130107 jb 0131163 (e) Whether there are reasonable alternatives that would provide an equivalent level of benefit without requiring a modification or exception to the City's applicable rules, standards and practices. 18.46.060 Decisions The Director of Planning and Community Environment shall issue a written determination of the action and may grant or deny the accommodation request based on the criteria outlined in this chapter. The written decision on the request for reasonable accommodation shall explain in detail the basis of the decision including compliance with the criteria set forth in Section 18.46.050 of this Chapter. The written decision of the Director shall be final unless an applicant submits an appeal following the appeal procedure established in Section 18.46.070. 18.46.070 Appeals (a) The applicant requesting the reasonable accommodation may appeal the Director of Planning and Community Environment adverse decision. The appeal shall be in writing and shall be submitted to the Planning and Community Environment Department within ten (10) calendar days of the Director of Planning and Community Environment’s decision. (b) If an individual needs assistance in filing an appeal on an adverse decision, the Department will provide assistance to ensure that the appeals procedure is accessible. (c) All appeals shall contain a statement of the grounds for the appeal. Any information identified by an applicant as confidential shall be retained in a manner so as to respect the privacy rights of the applicant and shall not be made available for public inspection. (d) The appeal shall be heard by the Planning and Transportation Commission in a public hearing pursuant to the procedures established for discretionary actions in Chapter 18.77. (e) Notice of the hearing shall be given by publication but need not be sent to nearby property owners. 18.46.080 Effect of Chapter This chapter shall be interpreted and applied in accordance with the Acts; nothing in this chapter shall be deemed to create greater rights than exist under the Acts. SECTION 9. CEQA. The proposed Ordinance updating the zoning ordinance to implement the 2007-2014 Housing Element were considered as a part of the Not Yet Approved 15 ORD Amend Title 18 (Zoning) to Implement Housing Element Revised: January 7, 2014 130107 jb 0131163 implementation program contained in the Housing Element. The potential environmental impacts of implementation of the Housing Element were reviewed as a part of the Negative Declaration prepared for the Housing Element. This document determined that no adverse environmental impacts would result from implementation of the policies and programs outlined in the 2007-2014 Housing Element, and the Negative Declaration and Housing Element were approved by the City Council on June Resolution by Resolution No. 9349. The proposed changes to the zoning ordinance would modify existing programs and add procedures which provide below market rate housing opportunities, suitable sites for emergency shelters to comply with Government Code Section 65583, and establish procedures to make accommodations for persons with disabilities. Further, each individual project will be subject to its own environmental review. SECTION 10. Severability. If any provision, clause, sentence or paragraph of this ordinance, or the application to any person or circumstances, shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance which can be given effect without the invalid provision or application and, to this end, the provisions of this Ordinance are hereby declared to be severable. / / / / / / / / / / / / / / / / / / / / / / / / / / Not Yet Approved 16 ORD Amend Title 18 (Zoning) to Implement Housing Element Revised: January 7, 2014 130107 jb 0131163 SECTION 11. This ordinance shall be effective on the thirty-first date after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Senior Assistant City Attorney City Manager ____________________________ Director of Planning & Community Environment City of Palo Alto (ID # 4428) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/27/2014 City of Palo Alto Page 1 Summary Title: Second Reading Density Bonus Ordinance Title: SECOND READING: Adoption of an Ordinance for a New Chapter 18.14 (Residential Density Bonus) to Include in Title 18 of the Palo Alto Municipal Code to Implement Government Code Section 65915 (First Reading: January 13, 2014 PASSED: 8-1 Klein no) From: City Manager Lead Department: Planning and Community Environment Recommendation Adopt the Residential Density Bonus Ordinance (Attachment A) on second reading. Background On January 13, 2014, the City Council approved with revisions, the Residential Density Bonus Ordinance, as Chapter 18.15 in Title 18 of the Palo Alto Municipal Code. The adoption of the ordinance was to comply with Government Code Section 65915. A version of the revised ordinance is provided as Attachment A. Discussion The Council action on January 13, 2014 approved the ordinance with the following revisions: 1. Section 18.15.050(c)(ii) - Decreased the allowable rear yard setback reduction from 50% to 25%. 2. Section 18.15.050(c)(iv) - Reduced the allowable increase in Floor Area Ratio (FAR) from 50% to 25%. City of Palo Alto Page 2 3. Section 18.15.050(f) – This section was deleted. 4. There were other minor revisions to correct inconsistencies in the ordinance and to reference current state law. The revisions have been incorporated into the revised Density Bonus Ordinance (Attachment A). For reference, the draft Ordinance presented at the January 13, 2014 meeting has been included as Attachment B. Staff requests that the Council adopt the Density Bonus Ordinance, as revised, on second reading. Attachments:  Attachment A: Proposed Ordinance (PDF)  Attachment B: January 13, 2014 - Proposed Ordinance (DOCX)  Attachment C: January 13, 2014 - City Council Motions (DOC) Not Yet Approved 1 140113 jb 0131158 Rev. January 13, 2014 Ordinance No. ______ Ordinance of the Council of the City of Palo Alto Adopting New Chapter 18.15 (Residential Density Bonus) of Title 18 (Zoning) of the Palo Alto Municipal Code to Implement Government Code Section 65915 The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Recitals. The Council of the City of Palo Alto finds and declares as follows: A. The State Density Bonus Law (Section 65915 of the Government Code) was first adopted in 1979. The law allows developers who offer affordable units in their developments a density bonus above what the zoning ordinance would typically allow. Originally, developers received a density bonus of 25% if they met the density bonus requirements. B. In 2004, the State Legislature passed SB 1818, which significantly amended Section 65915 of the Government Code. The significant changes to the law, effective on January 1, 2005, included:  A higher maximum market-rate unit density bonus of 35% for a lower percentage of affordable units provided;  A sliding scale of market-rate density bonus percentages from 20%-35% depending on the percentage of affordable units provided;  Provision for up to three (3) development concessions or incentives, depending on the percentage of affordable units provided;  Granting the developer a density bonus if they donate land for very low income housing; and  Required jurisdictions to implement Density Bonus law through local codes. C. In the past, the City has applied the Density Bonus law on an ad hoc basis to both market rate and affordable developments. Palo Alto Family Apartments, located at 801 Alma Street and developed by Eden Housing, is a 50 unit affordable rental development. Eden requested concessions to encroach into the required setbacks, exceed the maximum floor area ratio (FAR) and to not provide private useable open space. The development at 195 Page Mill Road also requested concessions to allow residential uses in the General Manufacturing (GM) zoning district and to exceed the maximum FAR in return for providing 17 affordable housing units (20% of the total units). D. The 2007-2014 Housing Element Update includes a program (Program 3.1.10) requiring that a density bonus ordinance be adopted that is consistent with Not Yet Approved 2 140113 jb 0131158 Rev. January 13, 2014 Government Code 65915. Staff anticipates that density bonus will be an important tool to help the City accommodate its Regional Housing Needs Allocation (RHNA) numbers. SECTION 2. Chapter 18.15 (Residential Density Bonus) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby added to read as follows: Chapter 18.15 Residential Density Bonus Sections: 18.15.010 Purpose 18.15.020 Definitions 18.15.030 Density Bonuses 18.15.040 Development Standards for Affordable Units 18.15.050 Development Concessions and Incentives 18.15.060 Waiver/Modification of Development Standards 18.15.070 Child Care Facilities 18.15.080 Application Requirements 18.15.090 Review Procedures 18.15.100 Regulatory Agreement 18.15.010 Purpose The purpose of this chapter is to: (a) Comply with the state density bonus law under California Government Code section 65915. (b) Establish procedures for implementing state density bonus requirements as set forth in California Government Code Section 65915, as amended. (c) Facilitate the development of affordable housing consistent with the goals, objectives, and policies of the City’s Comprehensive Plan Housing Element. 18.15.020 Definitions Whenever the following terms are used in this Chapter, they shall have the meaning established by this section: (a) "Affordable Rent" means monthly rent, including a reasonable allowance for utilities and all fees for housing services, for rental Restricted Affordable Units reserved for Very Low or Lower Income Households, that does not exceed the following: Not Yet Approved 3 140113 jb 0131158 Rev. January 13, 2014 (i) Very Low Income: 50 percent of the area median income for Santa Clara County, adjusted for presumed household size, multiplied by 30 percent and divided by 12. (ii) Lower Income: 60 percent of the area median income for Santa Clara County, adjusted for presumed household size, multiplied by 30 percent and divided by 12. (b) "Affordable Sales Price" means the maximum sales price at which Very Low, Lower and Moderate Income Households can qualify for the purchase of Restricted Affordable Units as set forth in the City of Palo Alto’s Below Market Rate Housing Program. The sales price shall be considered affordable only if it is based on a reasonable down payment, and monthly housing payments (including interest, principal, mortgage insurance, property taxes and assessments, fire and casualty insurance, homeowners association fees, property maintenance and repairs, and a reasonable allowance for utilities), all as determined by the City, that are equal to or less than: (i) Very Low Income: 50 percent of the area median income for Santa Clara County, adjusted for presumed household size, multiplied by 30 percent and divided by 12. (ii) Lower Income: 80 percent of the area median income for Santa Clara County, adjusted for presumed household size, multiplied by 30 percent and divided by 12. (iii) Moderate Income: 120 percent of the area median income for Santa Clara County, adjusted for presumed household size, multiplied by 30 percent and divided by 12. (c) "Applicant" means any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities who seeks Development permits or approvals from the City of Palo Alto. (d) "Approval Authority" means the person or body that is authorized to approve a Development as specified in the City of Palo Alto Municipal Code. Approval Authority shall also include recommending bodies such as the Architectural Review Board and the Planning and Transportation Commission. (e) "Below Market Rate Housing Program" means Chapter 18.14 of the Palo Alto Municipal Code and the Administrative Guidelines for the Below Market Rate Program. Not Yet Approved 4 140113 jb 0131158 Rev. January 13, 2014 (f) "Child Care Facility" means a child day care facility other than a family day care home, including, but not limited to, infant centers, preschools, extended day care facilities, and school age child care centers. (g) "Concession or Incentive" as used interchangeably means such regulatory concessions as specified in Government Code Section 65915(k) to include: (i) A reduction of site Development Standards or architectural design requirements which exceed the minimum applicable building standards approved by the State Building Standards Commission pursuant to Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, including, but not limited to, a reduction in setback, coverage, and/or parking requirements which result in identifiable, financially sufficient and actual cost reductions; (ii) Allowing mixed use development in conjunction with the proposed residential development, if nonresidential land uses will reduce the cost of the residential project and the nonresidential land uses are compatible with the residential project and existing or planned development in the area where the Development will be located; and (iii) Other regulatory Concessions proposed by the applicant or the City which result in identifiable financially sufficient, and actual cost reductions. (h) "Density Bonus" means a density increase over the Maximum Residential Density granted pursuant to Government Code Section 65915 and this Ordinance. (i) "Density Bonus Units" means those dwelling units granted pursuant to the provisions of this Chapter which exceed the otherwise Maximum Residential Density for the development site. (j) "Development" means all developments pursuant to a proposal to construct or place five (5) or more additional dwelling units on a lot or contiguous lots including, without limitation, a planned unit development, site plan, subdivision, or conversion of a non- residential building to dwelling units. (k) "Development Standard" means a site or construction condition such as a height limitation, a setback, or a floor-area ratio, that applies to a Development pursuant to any ordinance, general plan element, specific plan, charter, or other City condition, law, policy, resolution, or regulation. A “site and construction condition” is a development regulation or law that specifies the physical development of a site and buildings on the site in a Development. Not Yet Approved 5 140113 jb 0131158 Rev. January 13, 2014 (l) "Discretionary Permit" means any permit issued for the Development which requires the exercise of judgment or deliberation from the Approval Authority, including but not limited to conditional use permits, variances, site plans, design review, planned development permits, general and specific plan approvals and amendments, zoning amendments, and tentative and parcel maps. (m) "Lower, Very Low, or Moderate Income” means annual income of a household that does not exceed the maximum income limits for the income category, as adjusted for household size, applicable to Santa Clara County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Sections 50079.5, 50105, or 50093 of the California Health and Safety Code. (n) "Maximum Residential Density" means the maximum number of dwelling units permitted in the Development by the City’s Comprehensive Plan Land Use Element and Zoning Ordinance at the time of application, excluding the provisions of this Chapter. If the maximum density allowed by the Zoning Ordinance is inconsistent with the density allowed by the Land Use Element of the City’s Comprehensive Plan, the Land Use Element density shall prevail. (o) "Non-Restricted Unit" means all dwelling units within a Development excluding the Restricted Affordable Units. (p) “Qualifying Mobilehome Park” means a mobilehome park that limits residency based on age requirements for housing older persons pursuant to Section 798.76 and 799.5 of the Civil Code. (q) "Qualifying Resident" means senior citizens or other persons eligible to reside in a Senior Citizen Housing Development or Qualifying Mobilehome Park. (r) "Regulatory Agreement" means a recorded and legally binding agreement between an applicant and the City to ensure that the requirements of this Chapter are satisfied. The Regulatory Agreement, among other things, shall establish: the number of Restricted Affordable Units, their size, location, terms and conditions of affordability, and production schedule. (s) "Restricted Affordable Unit" means a dwelling unit within a Development which will be available at an Affordable Rent or Affordable Sales Price for sale or rent to Very Low, Lower or Moderate Income households. (t) "Senior Citizen Housing Development" means a Development consistent with the California Fair Employment and Housing Act (Government Code Section 12900 et. seq., including 12955.9 in particular), which has been "designed to meet the physical and social needs of senior citizens," and which otherwise qualifies as "housing for older persons" as that phrase is used in the federal Fair Housing Amendments Act of 1988 (P.L. 100-430) and Not Yet Approved 6 140113 jb 0131158 Rev. January 13, 2014 implementing regulations (24 CFR, part 100, subpart E), and as that phrase is used in California Civil Code Section 51.2 and 51.3. 18.15.030 Density Bonuses This Section describes the Density Bonuses that will be provided, at the request of an applicant, when that applicant provides Restricted Affordable Units as described below. (a) The City shall grant a 20 percent (20%) Density Bonus when an applicant for a Development of five (5) or more dwelling units seeks and agrees to construct at least any one of the following in accordance with the requirements of this Section and Government Code Section 65915: (i) At least 10 percent (10%) of the total dwelling units of the Development as Restricted Affordable Units affordable to Lower Income Households. For each one percent (1%) increase in the percentage of restricted Lower Income units, a Development will receive an additional one and one-half percent (1.5%) density bonus up to thirty-five percent (35%) of the Maximum Residential Density; or (ii) At least five percent (5%) of the total dwelling units of the Development as Restricted Affordable Units affordable to Very Low Income Households. For each one percent (1%) increase in the percentage of restricted Very Low Income units, a Development will receive an additional two and one- half percent (2.5%) density bonus up to thirty-five percent (35%) of the Maximum Residential Density; or (iii) A Senior Citizen Housing Development; or (iv) A Qualifying Mobilehome Park. (b) The City shall grant a five percent (5%) Density Bonus when an applicant for a Development of five (5) or more additional dwelling units seeks and agrees to construct, in accordance with the requirements of this Section and Government Code Section 65915, at least 10 percent (10%) of the total dwelling units in a common interest development as defined in California Civil Code Section 4100351 for Moderate Income Households, provided that all dwelling units in the Development are offered to the public for purchase. For each one percent (1%) increase in the percentage of restricted Moderate Income units, a Development will receive an additional one percent (1%) density bonus up to thirty-five percent (35%) of the Maximum Residential Density. (c) No additional Density Bonus shall be authorized for a Senior Citizen Development or Qualifying Mobilehome Park beyond the Density Bonus authorized by subsection (a) of this Section. Not Yet Approved 7 140113 jb 0131158 Rev. January 13, 2014 (d) When calculating the number of permitted Density Bonus Units, any fractions of units shall be rounded to the next highest number. An applicant may elect to receive a Density Bonus that is less than the amount permitted by this Section; however, the City shall not be required to similarly reduce the number of Restricted Affordable Units required to be dedicated pursuant to this Section and Government Code Section 65915(b). (e) Each Development is entitled to only one Density Bonus, which shall be selected by the applicant based on the percentage of Very Low Restricted Affordable Units, Lower Income Restricted Affordable Units, or Moderate Income Restricted Affordable Units, or the Development’s status as a Senior Citizen Housing Development or Qualifying Mobilehome Park. Density bonuses from more than one category may not be combined. In no case shall a Development be entitled to a Density Bonus of more than thirty-five percent (35%). (f) The Density Bonus Units shall not be included when determining the number of Restricted Affordable Units required to qualify for a Density Bonus. When calculating the required number of Restricted Affordable Units, any resulting decimal fraction shall be rounded to the next larger integer. (g) Any Restricted Affordable Unit provided pursuant to the City’s Below Market Rate Housing Program shall be included when determining the number of Restricted Affordable Units required to qualify for a Density Bonus or other entitlement under this Chapter. However, the payment of a housing impact or in lieu fee shall not qualify for a Density Bonus or other entitlement under this Chapter. (h) Certain other types of development activities are specifically eligible for a Density Bonus pursuant to State law: (i) A Development may be eligible for a Density Bonus in return for land donation pursuant to the requirements set forth in Government Code Section 65915(g). (ii) A condominium conversion may be eligible for a Density Bonus or Concession pursuant to the requirements set forth in Government Code Section 65915.5. (i) As provided in Section 18.15.080(c), development proposed with rezoning to the Planned Community zone district are entitled to densities approved as part of the rezoning and shall not be entitled to a density bonus in addition to the units entitled by the rezone. (j) Notwithstanding any provision of this Chapter, all Developments must satisfy all applicable requirements of the City's Below Market Rate Housing Program, which may impose requirements for Restricted Affordable Units in addition to those required to receive a Density Bonus or Concessions. Not Yet Approved 8 140113 jb 0131158 Rev. January 13, 2014 Table 1 summarizes the density bonus provisions described in this Section. Table 1 Density Bonus Summary Table Restricted Affordable Units or Category Minimum Percentage of Restricted Affordable Units Percentage of Density Bonus Granted Additional Bonus for Each 1% Increase in Restricted Affordable Units Percentage of Restricted Units Required for Maximum 35% Density Bonus Very Low Income 5% 20% 2.50% 11% Lower Income 10% 20% 1.50% 20% Moderate Income 10% 5% 1% 40% Senior Citizen Housing 100% 20% ------ ------ Qualifying Mobile Park 100% 20% ------ ------ Note: A density bonus may be selected from only one category up to a maximum of 35% of the Maximum Residential Density. 18.15.040 Development Standards for Affordable Units (a) Restricted Affordable Units shall be constructed concurrently with Non- Restricted Units unless both the City and the applicant agree within the Regulatory Agreement to an alternative schedule for development. (b) Moderate Income Restricted Affordable Units shall remain restricted and affordable to the designated income group for a minimum period of 59 years (or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program). Very Low and Lower Restricted Affordable Units shall remain restricted and affordable to the designated income group for a period of 30 years for both rental and for-sale units (or a longer period of time if required by a construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program). (c) In determining the maximum Affordable Rent or Affordable Sales Price of Restricted Affordable Units, the presumed household size as set forth in the City’s Below Market Rate Housing Program shall be used, unless the Development is subject to different assumptions imposed by other governmental regulations. (d) Restricted Affordable Units shall be built on-site and be dispersed within the Development, except as permitted in subsection (e) of this Section. The number of bedrooms of the Restricted Affordable Units shall be equivalent to the bedroom mix of the Non-Restricted Units in the Development; except that the applicant may include a higher proportion of Not Yet Approved 9 140113 jb 0131158 Rev. January 13, 2014 Restricted Affordable Units with more bedrooms. The design, square footage, appearance and general quality of the Restricted Affordable Units shall be compatible with the design of the Non-Restricted Units in the Development. The Development shall comply with all applicable Development Standards, except those which may be modified as provided by this Chapter. (e) A Regulatory Agreement, as described in Section 18.15.090100, shall be made a condition of the Discretionary Permits for all Developments pursuant to this Chapter. The Regulatory Agreement shall be recorded as a restriction on the Development. The Regulatory Agreement shall be consistent with the City’s Below Market Rate Housing program guidelines. 18.15.050 Development Concessions and Incentives This Section includes provisions for providing Concessions or Incentives pursuant to Government Code Section 65915. (a) By Right Parking Incentives. Upon request by the applicant, a Development that is eligible for a Density Bonus may provide parking as provided in this subsection (a), consistent with Government Code Section 65915(p), inclusive of handicapped and guest parking: (i) Zero to one bedroom unit: one on-site parking space; (ii) Two to three bedroom unit: two on-site parking spaces; (iii) Four or more bedroom unit: two and one-half parking spaces. If the total number of spaces required results in a fractional number, it shall be rounded up to the next whole number. For purposes of this subsection, this parking may be provided through tandem parking or uncovered parking, but not through on-street parking. (b) Other Incentives and Concessions. A Development is eligible for other Concessions or Incentives as follows: (i) One Concession or Incentive for a Development that makes at least ten percent (10%) of the total dwelling units affordable to Lower Income households; or at least five percent (5%) of the total dwelling units affordable to Very Low Income households; or at least ten percent (10%) of the total dwelling units affordable to Moderate Income households in a common interest development. (ii) Two Concessions or Incentives for a Development that makes at least twenty percent (20%) of the total dwelling units affordable to Lower Income households; or at least ten percent (10%) of the total dwelling units affordable to Very Low Income households; or at least twenty percent Not Yet Approved 10 140113 jb 0131158 Rev. January 13, 2014 (20%) of the total dwelling units affordable to Moderate Income households in a common interest development. (iii) Three Concessions or Incentives for a Development that makes at least thirty percent (30%) of the total dwelling units affordable to Lower Income households; or at least fifteen percent (15%) of the total dwelling units affordable to Very Low Income households, or at least thirty percent (30%) of the total dwelling units affordable to Moderate Income households in a common interest development. Table 2 summarizes the provisions of Concessions or Incentives described in subsection (a). Table 2 Concessions and Incentives Summary Table Target Group Restricted Affordable Units Very Low Income 5% 10% 15% Lower Income 10% 20% 30% Moderate Income (Common Interest Development) 10% 20% 30% Maximum Incentive(s)/Concession(s) 1 2 3 Notes: 1. Concessions or Incentives may be selected from only one category (very low, lower, or moderate) 2. No concessions or Concessions incentives are available for land donation, or for Senior Citizen Housing Developments and Qualifying Mobilehome Parks that do not contain Restricted Affordable Units. (c) In submitting a request for Concessions or Incentives, an applicant may request the specific Concessions set forth below. The following Concessions and Incentives are deemed not to have a specific adverse impact as defined in Section 18.15.090 (b)(ii). (i) Up to a 25% average reduction of a side yard setback requirement if the design is consistent with the applicable design standards and guidelines, unless adjacent to R-1, R-2, RMD and other low density residential zones; (ii) Up to a 5025% average reduction of the rear yard setback requirements so long as the setback is consistent with the applicable design standards and guidelines, unless adjacent to R-1, R-2, RMD and other low density residential zones; (iii) A percentage increase in the height limit equal to the Density Bonus percentage for which the Development is eligible if necessary to accommodate the Restricted Affordable Units, with a maximum increase of one foot per Affordable Unit, unless adjacent to R-1, R-2, RMD and other low density residential zones, and no event to exceed fifty (50) feet; Not Yet Approved 11 140113 jb 0131158 Rev. January 13, 2014 (iv) An increase in the Floor Area Ratio (FAR) up to 5025% or up to the square footage of the Restricted Affordable Units, whichever is less. Any FAR bonus under this section shall be consistent with the applicable height requirements and only apply to the residential portion of the mixed use project; (v) Reduction in daylight plane requirements not to exceed 25% of the length of the adjacent lot line, so long as the intrusion is consistent with applicable design standards and guidelines, unless adjacent to R-1, R-2, RMD and other low density residential zones; (vi) Up to fifty percent (50%) increase over the maximum site coverage requirement or up to the square footage of the Restricted Affordable Units, whichever is less; (d) The setbacks referenced in this Section shall not include Special Setbacks as defined in Section 20.08.020. (e) The setbacks referenced in this Section shall only apply to the residential portion of any mixed use (residential and non-residential) development where it is feasible to setback portions of the development differently. (f) For Developments that propose to construct one hundred percent (100%) of the dwelling units (except a manager's unit) as Restricted Affordable Units that are affordable to Very Low and/or Lower Income households, the Council may grant additional Concessions or Incentives or exceed the limits set forth in (i) to (vi) above if the Council finds that such Concessions or Incentives are required to provide for affordable housing costs, as defined in Section 50052.3 of the Health and Safety Code and are in the interest of the public health, safety, or welfare. (gf) Nothing in this Chapter shall be construed to require the provision of direct financial Concessions for the Development, including the provision of publicly owned land by the City or the waiver of fees or dedication requirements. 18.15.060 Waiver/Modification of Development Standards An applicant may apply for a waiver or modification of Development Standards that will have the effect of physically precluding the construction of a Development at the densities or with the Concessions or Incentives permitted by this Chapter. The developer must demonstrate that Development Standards that are requested to be waived or modified will have the effect of physically precluding the construction of a Development meeting the criteria of subsection (a) of Section 18.15.030 at the densities or with the Concessions or Incentives permitted by this Chapter. Not Yet Approved 12 140113 jb 0131158 Rev. January 13, 2014 18.15.070 Child Care Facilities (a) When an applicant proposes to construct a Development that is eligible for a Density Bonus under Section 18.15.030 and includes a child care facility that will be located on the premises of, as part of, or adjacent to, the Development, the City shall grant either: (i) An additional density bonus that is an amount of square feet of residential space that is equal to or greater than the square footage of the child care facility; or (ii) An additional Concession or Incentive that contributes significantly to the economic feasibility of the construction of the child care facility. (b) The City shall require, as a condition of approving the Development, that the following occur: (i) The child care facility shall remain in operation for a period of time that is as long as or longer than the period of time during which the Restricted Affordable Units are required to remain affordable pursuant to Section 18.15.040. In the event the childcare operations cease to exist, the Director of Planning and Community Environment may approve an alternative community service use for the child care facility. (ii) Of the children who attend the child care facility, the children of Very Low, Lower and Moderate Income households shall equal a percentage that is equal to or greater than the percentage of Restricted Affordable Units in the Development that are required for Very Low, Lower and Moderate Income households pursuant to Section 18.15.030. (c) Notwithstanding subsections (a) and (b) above, the City shall not be required to provide a density bonus or a Concession or Incentive for a child care facility if it finds, based upon substantial evidence, that the community has adequate child care facilities. 18.15.080 Application Requirements An application for a Density Bonus, Incentive, Concession, waiver, modification or revised parking standard shall be made as follows: (a) An application for a Density Bonus, Incentive, Concession, waiver, modification or revised parking standard shall be submitted with the first application for a Discretionary Permit for a Development and shall be processed concurrently with those Discretionary Permits. The application shall be on a form prescribed by the City and shall include the following information: Not Yet Approved 13 140113 jb 0131158 Rev. January 13, 2014 (i) A brief description of the proposed Development, including the total number of dwelling units, Restricted Affordable Units, and Density Bonus Units proposed. (ii) The zoning and comprehensive plan designations and assessor's parcel number(s) of the project site, and a description of any Density Bonus, Concession or Incentive, waiver or modification, or revised parking standard requested (iii) A vicinity map and preliminary site plan, drawn to scale, including building footprints, driveway and parking layout. (iv) If a Concession or Incentive is requested, a brief explanation as to the actual cost reduction achieved through the Concession or Incentive and how the cost reduction allows the applicant to provide the Restricted Affordable Units. (v) If a waiver or modification is requested, a brief explanation of why the Development Standard would physically preclude the construction of the Development with the Density Bonus, Incentives, and Concessions requested. (vi) Site plan showing location of market-rate units, Restricted Affordable Units, and Density Bonus units within the proposed Development; (vii) Level of affordability of the Restricted Affordable Units and proposed method to ensure affordability; (viii) For Concessions and Incentives that are not included within the menu of Incentives/Concessions set forth in subsection (c) of Section 18.15.050, the application requires the submittal of the project proforma to the Director, providing evidence that the requested Concessions and Incentives result in identifiable, financially sufficient, and actual cost reductions. The cost of reviewing the project proforma, including, but not limited to, the cost to the City of hiring a consultant to review the financial data, shall be borne by the applicant. The proforma information shall include all of the following items: (A) The actual cost reduction achieved through the Concession; (B) Evidence that the cost reduction allows the applicant to provide affordable rents or affordable sales prices; and Not Yet Approved 14 140113 jb 0131158 Rev. January 13, 2014 (C) Other information requested by the Planning Director. The Planning Director may require additional financial information include information regarding capital costs, equity investment, debt service, projected revenues, operating expenses, and such other information as is required to evaluate the financial information; (ix) If a waiver or modification of a Development Standard is requested, the applicant shall provide evidence that the Development Standard for which the waiver is requested will have the effect of physically precluding the construction of the Development with the Density Bonus and Concessions requested; (x) If a Density Bonus or Concession is requested for a land donation, the application shall show the location of the land to be dedicated, provide proof of site control, and provide evidence that all of the requirements and each of the findings included in Government Code Section 65915(g) can be made; (xi) If a density bonus or Concession is requested for a child care facility, the application shall show the location and square footage of the child care facilities and provide evidence that all of the requirements and each of the findings included in Government Code Section 65915(h) can be made. (xii) If a Density Bonus or Concession is requested for a condominium conversion, the applicant shall provide evidence that all of the requirements found in Government Code Section 65915.5 can be met. (b) In accordance with state law, neither the granting of a Concession, Incentive, waiver, modification, or revised parking standard, nor the granting of a Density Bonus, shall be interpreted, in and of itself, to require a general plan amendment, zoning change, variance, or other discretionary approval. (c) The Planned Community (PC) zone district is intended to accommodate developments requiring flexibility under controlled conditions not attainable under other zoning districts. Because of the flexible nature of the PC zone, which determines site specific requirements including density, the Chapter does not apply to this zoning district. (d) This Chapter implements State Density Bonus law. Any Density Bonus, Incentive, Concession, revised parking standard, waiver, or modification sought by an Applicant shall be made pursuant to this Chapter and may not be combined with similar requests under State Density Bonus law. Not Yet Approved 15 140113 jb 0131158 Rev. January 13, 2014 18.15.090 Review Procedures An application for a Density Bonus, Incentive, Concession, waiver, modification or revised parking standard shall be acted upon by the Approval Authority concurrently with the application for the first Discretionary Permit. The granting of a Density Bonus shall not be deemed approval of the entire Project or approval of any subsequent discretionary permit. (a) Before approving an application for a Density Bonus, Incentive, Concession, waiver, modification or revised parking standard, the Approval Authority shall make the following findings, as applicable: (i) The Development is eligible for the Density Bonus and any Concessions, waivers, modifications, or revised parking standards requested. (ii) Any requested Concession or Incentive will result in identifiable, financially sufficient, and actual cost reductions based upon the financial analysis and documentation provided. The City finds that the Concessions and Incentives included in Section 18.50.050(c) will result in identifiable, financially sufficient, and actual cost reductions. (iii) If the Density Bonus is based all or in part on donation of land, a finding that all the requirements included in Government Code Section 65915(g) have been met. (iv) If the Density Bonus, Concession or Incentive is based all or in part on the inclusion of a child care facility, a finding that all the requirements included in Government Code Section 65915(h) have been met. (v) If the Concession or Incentive includes mixed-use development, a finding that all the requirements included in Government Code Section 65915(k)(2) have been met. (vi) If a waiver or modification is requested, a finding that the Development Standards for which the waiver is requested would have the effect of physically precluding the construction of the Development with the Density Bonus and Concessions permitted. (b) Any granted Density Bonus and/or Concession(s) shall terminate with the demolition, destruction or other removal of the structure receiving the Density Bonus and/or Concession. (c) If the findings required by subsection (a) of this Section cannot be made, the Approval Authority may deny an application for a Concession, Incentive, waiver or modification only if it makes one of the following written findings, supported by substantial evidence: Not Yet Approved 16 140113 jb 0131158 Rev. January 13, 2014 (i) The Concession, Incentive, waiver or modification is not required to provide for Affordable Rents or Affordable Sales Prices; or (ii) The Concession, Incentive, waiver or modification would have a specific, adverse impact upon public health or safety or the physical environment or on real property listed in the California Register of Historic Resources, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the Development unaffordable to Low and Moderate Income households. For the purpose of this subsection, "specific adverse impact" means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, written public health or safety standards, policies, or conditions as they existed on the date that the application for the Development was deemed complete; or (iii) The Concession, Incentive, waiver or modification is contrary to state or federal law. (c) If the Approval Authority is not the City Council, any decision denying a Density Bonus, Incentive, Concession, waiver, modification or revised parking standard may be appealed to the City Council within fourteen days of the date of the decision. 18.15.100 Regulatory Agreement (a) Applicants for a Density Bonus, Incentive, Concession, waiver, modification or revised parking standard shall enter into a Regulatory Agreement with the City. The terms of the draft agreement shall be approved as to form by the City Attorney and reviewed and revised as appropriate by the Director of Planning and Community Environment, who shall formulate a recommendation to the Approval Authority for final approval. (b) Following execution of the agreement by all parties, the completed Density Bonus Regulatory Agreement, or memorandum thereof, shall be recorded and the conditions filed and recorded on the Development. (c) The approval of the Regulatory Agreement shall take place prior to tentative map approval, and recordation shall take place prior to final map approval, or, where a map is not being processed, prior to approval of the final Discretionary Permit. The Regulatory Agreement shall be binding to all future owners and successors in interest. (d) The Regulatory Agreement shall be consistent with the guidelines of the City’s Below Market Rate Program and shall include at a minimum the following: (i) The total number of dwelling units approved for the Development, including the number of Restricted Affordable Units; Not Yet Approved 17 140113 jb 0131158 Rev. January 13, 2014 (ii) A description of the household income group to be accommodated by the Restricted Affordable Units, and the standards for determining the corresponding Affordable Rent or Affordable Sales Price; (iii) The location, dwelling unit sizes (square feet), and number of bedrooms of the Restricted Affordable Units; (iv) Term of use restrictions for Restricted Affordable Units of at least 59 years for Moderate Income units and at least 30 years for Low and Very Low units; (v) A schedule for completion and occupancy of Restricted Affordable Units; (vi) A description of any Concession, Incentive, waiver, modification, or revised parking standard, if any, being provided by the City; (vii) A description of remedies for breach of the agreement (the City may identify tenants or qualified purchasers as third party beneficiaries under the agreement); and (viii) Other provisions to ensure implementation and compliance with this Section. SECTION 3. CEQA. The proposed Ordinance revises the requirements for granting a residential density bonus to comply with revisions to Government Code Section 65915 enacted by the Legislature through the adoption of Senate Bill 1818. Adoption of the draft density bonus codifies allowances that developers have been able to use in housing developments since 2005. Further, the revisions modify the criteria and incentives offered to qualifying developments but do not authorize construction not already permitted under the City’s existing codes. Also, it is uncertain how many project applicants will seek to utilize the provisions of State law and this Ordinance and where such projects might be located in the City. Further, each individual project will be subject to its own environmental review. Consequently, this ordinance is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations since it can be seen with certainty that there is no possibility the adoption and implementation of this Ordinance may have a significant effect on the environment. SECTION 4. Severability. If any provision, clause, sentence or paragraph of this ordinance, or the application to any person or circumstances, shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance which can be given effect without the invalid provision or application and, to this end, the provisions of this Ordinance are hereby declared to be severable. Not Yet Approved 18 140113 jb 0131158 Rev. January 13, 2014 SECTION 5. This ordinance shall be effective on the thirty-first date after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Senior Assistant City Attorney City Manager ____________________________ Director of Planning & Community Environment [Provisions required by State law are highlighted for reference] Not Yet Approved Attachment B 1 140102 jb 0131158 Rev. January 7, 2014 Ordinance No. ______ Ordinance of the Council of the City of Palo Alto Adopting New Chapter 18.15 (Residential Density Bonus) of Title 18 (Zoning) of the Palo Alto Municipal Code to Implement Government Code Section 65915 The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Recitals. The Council of the City of Palo Alto finds and declares as follows: A. The State Density Bonus Law (Section 65915 of the Government Code) was first adopted in 1979. The law allows developers who offer affordable units in their developments a density bonus above what the zoning ordinance would typically allow. Originally, developers received a density bonus of 25% if they met the density bonus requirements. B. In 2004, the State Legislature passed SB 1818, which significantly amended Section 65915 of the Government Code. The significant changes to the law, effective on January 1, 2005, included:  A higher maximum market-rate unit density bonus of 35% for a lower percentage of affordable units provided;  A sliding scale of market-rate density bonus percentages from 20%-35% depending on the percentage of affordable units provided;  Provision for up to three (3) development concessions or incentives, depending on the percentage of affordable units provided;  Granting the developer a density bonus if they donate land for very low income housing; and  Required jurisdictions to implement Density Bonus law through local codes. C. In the past, the City has applied the Density Bonus law on an ad hoc basis to both market rate and affordable developments. Palo Alto Family Apartments, located at 801 Alma Street and developed by Eden Housing, is a 50 unit affordable rental development. Eden requested concessions to encroach into the required setbacks, exceed the maximum floor area ratio (FAR) and to not provide private useable open space. The development at 195 Page Mill Road also requested concessions to allow residential uses in the General Manufacturing (GM) zoning district and to exceed the maximum FAR in return for providing 17 affordable housing units (20% of the total units). [Provisions required by State law are highlighted for reference] Not Yet Approved Attachment B 2 140102 jb 0131158 Rev. January 7, 2014 D. The 2007-2014 Housing Element Update includes a program (Program 3.1.10) requiring that a density bonus ordinance be adopted that is consistent with Government Code 65915. Staff anticipates that density bonus will be an important tool to help the City accommodate its Regional Housing Needs Allocation (RHNA) numbers. SECTION 2. Chapter 18.15 (Residential Density Bonus) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby added to read as follows: Chapter 18.15 Residential Density Bonus Sections: 18.15.010 Purpose 18.15.020 Definitions 18.15.030 Density Bonuses 18.15.040 Development Standards for Affordable Units 18.15.050 Development Concessions and Incentives 18.15.060 Waiver/Modification of Development Standards 18.15.070 Child Care Facilities 18.15.080 Application Requirements 18.15.090 Review Procedures 18.15.100 Regulatory Agreement 18.15.010 Purpose The purpose of this chapter is to: (a) Comply with the state density bonus law under California Government Code section 65915. (b) Establish procedures for implementing state density bonus requirements as set forth in California Government Code Section 65915, as amended. (c) Facilitate the development of affordable housing consistent with the goals, objectives, and policies of the City’s Comprehensive Plan Housing Element. 18.15.020 Definitions [NOTE: All definitions are consistent with State law] Whenever the following terms are used in this Chapter, they shall have the meaning established by this section: [Provisions required by State law are highlighted for reference] Not Yet Approved Attachment B 3 140102 jb 0131158 Rev. January 7, 2014 (a) "Affordable Rent" means monthly rent, including a reasonable allowance for utilities and all fees for housing services, for rental Restricted Affordable Units reserved for Very Low or Lower Income Households, that does not exceed the following: (i) Very Low Income: 50 percent of the area median income for Santa Clara County, adjusted for presumed household size, multiplied by 30 percent and divided by 12. (ii) Lower Income: 60 percent of the area median income for Santa Clara County, adjusted for presumed household size, multiplied by 30 percent and divided by 12. (b) "Affordable Sales Price" means the maximum sales price at which Very Low, Lower and Moderate Income Households can qualify for the purchase of Restricted Affordable Units as set forth in the City of Palo Alto’s Below Market Rate Housing Program. The sales price shall be considered affordable only if it is based on a reasonable down payment, and monthly housing payments (including interest, principal, mortgage insurance, property taxes and assessments, fire and casualty insurance, homeowners association fees, property maintenance and repairs, and a reasonable allowance for utilities), all as determined by the City, that are equal to or less than: (i) Very Low Income: 50 percent of the area median income for Santa Clara County, adjusted for presumed household size, multiplied by 30 percent and divided by 12. (ii) Lower Income: 80 percent of the area median income for Santa Clara County, adjusted for presumed household size, multiplied by 30 percent and divided by 12. (iii) Moderate Income: 120 percent of the area median income for Santa Clara County, adjusted for presumed household size, multiplied by 30 percent and divided by 12. (c) "Applicant" means any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities who seeks Development permits or approvals from the City of Palo Alto. (d) "Approval Authority" means the person or body that is authorized to approve a Development as specified in the City of Palo Alto Municipal Code. Approval Authority shall also include recommending bodies such as the Architectural Review Board and the Planning and Transportation Commission. [Provisions required by State law are highlighted for reference] Not Yet Approved Attachment B 4 140102 jb 0131158 Rev. January 7, 2014 (e) "Below Market Rate Housing Program" means Chapter 18.14 of the Palo Alto Municipal Code and the Administrative Guidelines for the Below Market Rate Program. (f) "Child Care Facility" means a child day care facility other than a family day care home, including, but not limited to, infant centers, preschools, extended day care facilities, and school age child care centers. (g) "Concession or Incentive" as used interchangeably means such regulatory concessions as specified in Government Code Section 65915(k) to include: (i) A reduction of site Development Standards or architectural design requirements which exceed the minimum applicable building standards approved by the State Building Standards Commission pursuant to Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, including, but not limited to, a reduction in setback, coverage, and/or parking requirements which result in identifiable, financially sufficient and actual cost reductions; (ii) Allowing mixed use development in conjunction with the proposed residential development, if nonresidential land uses will reduce the cost of the residential project and the nonresidential land uses are compatible with the residential project and existing or planned development in the area where the Development will be located; and (iii) Other regulatory Concessions proposed by the applicant or the City which result in identifiable financially sufficient, and actual cost reductions. (h) "Density Bonus" means a density increase over the Maximum Residential Density granted pursuant to Government Code Section 65915 and this Ordinance. (i) "Density Bonus Units" means those dwelling units granted pursuant to the provisions of this Chapter which exceed the otherwise Maximum Residential Density for the development site. (j) "Development" means all developments pursuant to a proposal to construct or place five (5) or more additional dwelling units on a lot or contiguous lots including, without limitation, a planned unit development, site plan, subdivision, or conversion of a non- residential building to dwelling units. (k) "Development Standard" means a site or construction condition such as a height limitation, a setback, or a floor-area ratio, that applies to a Development pursuant to any ordinance, general plan element, specific plan, charter, or other City condition, law, policy, [Provisions required by State law are highlighted for reference] Not Yet Approved Attachment B 5 140102 jb 0131158 Rev. January 7, 2014 resolution, or regulation. A “site and construction condition” is a development regulation or law that specifies the physical development of a site and buildings on the site in a Development. (l) "Discretionary Permit" means any permit issued for the Development which requires the exercise of judgment or deliberation from the Approval Authority, including but not limited to conditional use permits, variances, site plans, design review, planned development permits, general and specific plan approvals and amendments, zoning amendments, and tentative and parcel maps. (m) "Lower, Very Low, or Moderate Income” means annual income of a household that does not exceed the maximum income limits for the income category, as adjusted for household size, applicable to Santa Clara County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Sections 50079.5, 50105, or 50093 of the California Health and Safety Code. (n) "Maximum Residential Density" means the maximum number of dwelling units permitted in the Development by the City’s Comprehensive Plan Land Use Element and Zoning Ordinance at the time of application, excluding the provisions of this Chapter. If the maximum density allowed by the Zoning Ordinance is inconsistent with the density allowed by the Land Use Element of the City’s Comprehensive Plan, the Land Use Element density shall prevail. (o) "Non-Restricted Unit" means all dwelling units within a Development excluding the Restricted Affordable Units. (p) “Qualifying Mobilehome Park” means a mobilehome park that limits residency based on age requirements for housing older persons pursuant to Section 798.76 and 799.5 of the Civil Code. (q) "Qualifying Resident" means senior citizens or other persons eligible to reside in a Senior Citizen Housing Development or Qualifying Mobilehome Park. (r) "Regulatory Agreement" means a recorded and legally binding agreement between an applicant and the City to ensure that the requirements of this Chapter are satisfied. The Regulatory Agreement, among other things, shall establish: the number of Restricted Affordable Units, their size, location, terms and conditions of affordability, and production schedule. (s) "Restricted Affordable Unit" means a dwelling unit within a Development which will be available at an Affordable Rent or Affordable Sales Price for sale or rent to Very Low, Lower or Moderate Income households. [Provisions required by State law are highlighted for reference] Not Yet Approved Attachment B 6 140102 jb 0131158 Rev. January 7, 2014 (t) "Senior Citizen Housing Development" means a Development consistent with the California Fair Employment and Housing Act (Government Code Section 12900 et. seq., including 12955.9 in particular), which has been "designed to meet the physical and social needs of senior citizens," and which otherwise qualifies as "housing for older persons" as that phrase is used in the federal Fair Housing Amendments Act of 1988 (P.L. 100-430) and implementing regulations (24 CFR, part 100, subpart E), and as that phrase is used in California Civil Code Section 51.2 and 51.3. 18.15.030 Density Bonuses This Section describes the Density Bonuses that will be provided, at the request of an applicant, when that applicant provides Restricted Affordable Units as described below. (a) The City shall grant a 20 percent (20%) Density Bonus when an applicant for a Development of five (5) or more dwelling units seeks and agrees to construct at least any one of the following in accordance with the requirements of this Section and Government Code Section 65915: (i) At least 10 percent (10%) of the total dwelling units of the Development as Restricted Affordable Units affordable to Lower Income Households. For each one percent (1%) increase in the percentage of restricted Lower Income units, a Development will receive an additional one and one-half percent (1.5%) density bonus up to thirty-five percent (35%) of the Maximum Residential Density; or (ii) At least five percent (5%) of the total dwelling units of the Development as Restricted Affordable Units affordable to Very Low Income Households. For each one percent (1%) increase in the percentage of restricted Very Low Income units, a Development will receive an additional two and one- half percent (2.5%) density bonus up to thirty-five percent (35%) of the Maximum Residential Density; or (iii) A Senior Citizen Housing Development; or (iv) A Qualifying Mobilehome Park. (b) The City shall grant a five percent (5%) Density Bonus when an applicant for a Development of five (5) or more additional dwelling units seeks and agrees to construct, in accordance with the requirements of this Section and Government Code Section 65915, at least 10 percent (10%) of the total dwelling units in a common interest development as defined in California Civil Code Section 4100 for Moderate Income Households, provided that all dwelling units in the Development are offered to the public for purchase. For each one percent (1%) [Provisions required by State law are highlighted for reference] Not Yet Approved Attachment B 7 140102 jb 0131158 Rev. January 7, 2014 increase in the percentage of restricted Moderate Income units, a Development will receive an additional one percent (1%) density bonus up to thirty-five percent (35%) of the Maximum Residential Density. (c) No additional Density Bonus shall be authorized for a Senior Citizen Development or Qualifying Mobilehome Park beyond the Density Bonus authorized by subsection (a) of this Section. (d) When calculating the number of permitted Density Bonus Units, any fractions of units shall be rounded to the next highest number. An applicant may elect to receive a Density Bonus that is less than the amount permitted by this Section; however, the City shall not be required to similarly reduce the number of Restricted Affordable Units required to be dedicated pursuant to this Section and Government Code Section 65915(b). (e) Each Development is entitled to only one Density Bonus, which shall be selected by the applicant based on the percentage of Very Low Restricted Affordable Units, Lower Income Restricted Affordable Units, or Moderate Income Restricted Affordable Units, or the Development’s status as a Senior Citizen Housing Development or Qualifying Mobilehome Park. Density bonuses from more than one category may not be combined. In no case shall a Development be entitled to a Density Bonus of more than thirty-five percent (35%). (f) The Density Bonus Units shall not be included when determining the number of Restricted Affordable Units required to qualify for a Density Bonus. When calculating the required number of Restricted Affordable Units, any resulting decimal fraction shall be rounded to the next larger integer. (g) Any Restricted Affordable Unit provided pursuant to the City’s Below Market Rate Housing Program shall be included when determining the number of Restricted Affordable Units required to qualify for a Density Bonus or other entitlement under this Chapter. However, the payment of a housing impact or in lieu fee shall not qualify for a Density Bonus or other entitlement under this Chapter. (h) Certain other types of development activities are specifically eligible for a Density Bonus pursuant to State law: (i) A Development may be eligible for a Density Bonus in return for land donation pursuant to the requirements set forth in Government Code Section 65915(g). (ii) A condominium conversion may be eligible for a Density Bonus or Concession pursuant to the requirements set forth in Government Code Section 65915.5. [Provisions required by State law are highlighted for reference] Not Yet Approved Attachment B 8 140102 jb 0131158 Rev. January 7, 2014 (i) As provided in Section 18.15.080(c), development proposed with rezoning to the Planned Community zone district are entitled to densities approved as part of the rezoning and shall not be entitled to a density bonus in addition to the units entitled by the rezone. (j) Notwithstanding any provision of this Chapter, all Developments must satisfy all applicable requirements of the City's Below Market Rate Housing Program, which may impose requirements for Restricted Affordable Units in addition to those required to receive a Density Bonus or Concessions. Table 1 summarizes the density bonus provisions described in this Section. Table 1 Density Bonus Summary Table Restricted Affordable Units or Category Minimum Percentage of Restricted Affordable Units Percentage of Density Bonus Granted Additional Bonus for Each 1% Increase in Restricted Affordable Units Percentage of Restricted Units Required for Maximum 35% Density Bonus Very Low Income 5% 20% 2.50% 11% Lower Income 10% 20% 1.50% 20% Moderate Income 10% 5% 1% 40% Senior Citizen Housing 100% 20% ------ ------ Qualifying Mobile Park 100% 20% ------ ------ Note: A density bonus may be selected from only one category up to a maximum of 35% of the Maximum Residential Density. 18.15.040 Development Standards for Affordable Units (a) Restricted Affordable Units shall be constructed concurrently with Non- Restricted Units unless both the City and the applicant agree within the Regulatory Agreement to an alternative schedule for development. (b) Moderate Income Restricted Affordable Units shall remain restricted and affordable to the designated income group for a minimum period of 59 years (or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program). Very Low and Lower Restricted Affordable Units shall remain restricted and affordable to the designated income group for a period of 30 years for both rental and for-sale units (or a longer period of time if required by a [Provisions required by State law are highlighted for reference] Not Yet Approved Attachment B 9 140102 jb 0131158 Rev. January 7, 2014 construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program). (c) In determining the maximum Affordable Rent or Affordable Sales Price of Restricted Affordable Units, the presumed household size as set forth in the City’s Below Market Rate Housing Program shall be used, unless the Development is subject to different assumptions imposed by other governmental regulations. (d) Restricted Affordable Units shall be built on-site and be dispersed within the Development, except as permitted in subsection (e) of this Section. The number of bedrooms of the Restricted Affordable Units shall be equivalent to the bedroom mix of the Non-Restricted Units in the Development; except that the applicant may include a higher proportion of Restricted Affordable Units with more bedrooms. The design, square footage, appearance and general quality of the Restricted Affordable Units shall be compatible with the design of the Non-Restricted Units in the Development. The Development shall comply with all applicable Development Standards, except those which may be modified as provided by this Chapter. (e) A Regulatory Agreement, as described in Section 18.15.100, shall be made a condition of the Discretionary Permits for all Developments pursuant to this Chapter. The Regulatory Agreement shall be recorded as a restriction on the Development. The Regulatory Agreement shall be consistent with the City’s Below Market Rate Housing program guidelines. 18.15.050 Development Concessions and Incentives This Section includes provisions for providing Concessions or Incentives pursuant to Government Code Section 65915. (a) By Right Parking Incentives. Upon request by the applicant, a Development that is eligible for a Density Bonus may provide parking as provided in this subsection (a), consistent with Government Code Section 65915(p), inclusive of handicapped and guest parking: (i) Zero to one bedroom unit: one on-site parking space; (ii) Two to three bedroom unit: two on-site parking spaces; (iii) Four or more bedroom unit: two and one-half parking spaces. If the total number of spaces required results in a fractional number, it shall be rounded up to the next whole number. For purposes of this subsection, this parking may be provided through tandem parking or uncovered parking, but not through on-street parking. [Provisions required by State law are highlighted for reference] Not Yet Approved Attachment B 10 140102 jb 0131158 Rev. January 7, 2014 (b) Other Incentives and Concessions. A Development is eligible for other Concessions or Incentives as follows: (i) One Concession or Incentive for a Development that makes at least ten percent (10%) of the total dwelling units affordable to Lower Income households; or at least five percent (5%) of the total dwelling units affordable to Very Low Income households; or at least ten percent (10%) of the total dwelling units affordable to Moderate Income households in a common interest development. (ii) Two Concessions or Incentives for a Development that makes at least twenty percent (20%) of the total dwelling units affordable to Lower Income households; or at least ten percent (10%) of the total dwelling units affordable to Very Low Income households; or at least twenty percent (20%) of the total dwelling units affordable to Moderate Income households in a common interest development. (iii) Three Concessions or Incentives for a Development that makes at least thirty percent (30%) of the total dwelling units affordable to Lower Income households; or at least fifteen percent (15%) of the total dwelling units affordable to Very Low Income households, or at least thirty percent (30%) of the total dwelling units affordable to Moderate Income households in a common interest development. Table 2 summarizes the provisions of Concessions or Incentives described in subsection (a). Table 2 Concessions and Incentives Summary Table Target Group Restricted Affordable Units Very Low Income 5% 10% 15% Lower Income 10% 20% 30% Moderate Income (Common Interest Development) 10% 20% 30% Maximum Incentive(s)/Concession(s) 1 2 3 Notes: 1. Concessions or Incentives may be selected from only one category (very low, lower, or moderate) 2. No concessions or Concessions are available for land donation, or for Senior Citizen Housing Developments and Qualifying Mobilehome Parks that do not contain Restricted Affordable Units. (c) In submitting a request for Concessions or Incentives, an applicant may request the specific Concessions set forth below. The following Concessions and Incentives are deemed not to have a specific adverse impact as defined in Section 18.15.090 (b)(ii). [Provisions required by State law are highlighted for reference] Not Yet Approved Attachment B 11 140102 jb 0131158 Rev. January 7, 2014 (i) Up to a 25% average reduction of a side yard setback requirement if the design is consistent with the applicable design standards and guidelines, unless adjacent to R-1, R-2, RMD and other low density residential zones; (ii) Up to a 25% average reduction of the rear yard setback requirements so long as the setback is consistent with the applicable design standards and guidelines, unless adjacent to R-1, R-2, RMD and other low density residential zones; (iii) A percentage increase in the height limit equal to the Density Bonus percentage for which the Development is eligible if necessary to accommodate the Restricted Affordable Units, with a maximum increase of one foot per Affordable Unit, unless adjacent to R-1, R-2, RMD and other low density residential zones, and no event to exceed fifty (50) feet; (iv) An increase in the Floor Area Ratio (FAR) up to 50% or up to the square footage of the Restricted Affordable Units, whichever is less. Any FAR bonus under this section shall be consistent with the applicable height requirements and only apply to the residential portion of the mixed use project; (v) Reduction in daylight plane requirements not to exceed 25% of the length of the adjacent lot line, so long as the intrusion is consistent with applicable design standards and guidelines, unless adjacent to R-1, R-2, RMD and other low density residential zones; (vi) Up to fifty percent (50%) increase over the maximum site coverage requirement or up to the square footage of the Restricted Affordable Units, whichever is less; (d) The setbacks referenced in this Section shall not include Special Setbacks as defined in Section 20.08.020. (e) The setbacks referenced in this Section shall only apply to the residential portion of any mixed use (residential and non-residential) development where it is feasible to setback portions of the development differently. (f) For Developments that propose to construct one hundred percent (100%) of the dwelling units (except a manager's unit) as Restricted Affordable Units that are affordable to Very Low and/or Lower Income households, the Council may grant additional Concessions or Incentives or exceed the limits set forth in (i) to (vi) above if the Council finds that such Concessions or Incentives are required to provide for affordable housing costs, as defined in [Provisions required by State law are highlighted for reference] Not Yet Approved Attachment B 12 140102 jb 0131158 Rev. January 7, 2014 Section 50052.3 of the Health and Safety Code and are in the interest of the public health, safety, or welfare. (g) Nothing in this Chapter shall be construed to require the provision of direct financial Concessions for the Development, including the provision of publicly owned land by the City or the waiver of fees or dedication requirements. 18.15.060 Waiver/Modification of Development Standards An applicant may apply for a waiver or modification of Development Standards that will have the effect of physically precluding the construction of a Development at the densities or with the Concessions or Incentives permitted by this Chapter. The developer must demonstrate that Development Standards that are requested to be waived or modified will have the effect of physically precluding the construction of a Development meeting the criteria of subsection (a) of Section 18.15.030 at the densities or with the Concessions or Incentives permitted by this Chapter. 18.15.070 Child Care Facilities (a) When an applicant proposes to construct a Development that is eligible for a Density Bonus under Section 18.15.030 and includes a child care facility that will be located on the premises of, as part of, or adjacent to, the Development, the City shall grant either: (i) An additional density bonus that is an amount of square feet of residential space that is equal to or greater than the square footage of the child care facility; or (ii) An additional Concession or Incentive that contributes significantly to the economic feasibility of the construction of the child care facility. (b) The City shall require, as a condition of approving the Development, that the following occur: (i) The child care facility shall remain in operation for a period of time that is as long as or longer than the period of time during which the Restricted Affordable Units are required to remain affordable pursuant to Section 18.15.040. In the event the childcare operations cease to exist, the Director of Planning and Community Environment may approve an alternative community service use for the child care facility. (ii) Of the children who attend the child care facility, the children of Very Low, Lower and Moderate Income households shall equal a percentage that is [Provisions required by State law are highlighted for reference] Not Yet Approved Attachment B 13 140102 jb 0131158 Rev. January 7, 2014 equal to or greater than the percentage of Restricted Affordable Units in the Development that are required for Very Low, Lower and Moderate Income households pursuant to Section 18.15.030. (c) Notwithstanding subsections (a) and (b) above, the City shall not be required to provide a density bonus or a Concession or Incentive for a child care facility if it finds, based upon substantial evidence, that the community has adequate child care facilities. 18.15.080 Application Requirements An application for a Density Bonus, Incentive, Concession, waiver, modification or revised parking standard shall be made as follows: (a) An application for a Density Bonus, Incentive, Concession, waiver, modification or revised parking standard shall be submitted with the first application for a Discretionary Permit for a Development and shall be processed concurrently with those Discretionary Permits. The application shall be on a form prescribed by the City and shall include the following information: (i) A brief description of the proposed Development, including the total number of dwelling units, Restricted Affordable Units, and Density Bonus Units proposed. (ii) The zoning and comprehensive plan designations and assessor's parcel number(s) of the project site, and a description of any Density Bonus, Concession or Incentive, waiver or modification, or revised parking standard requested (iii) A vicinity map and preliminary site plan, drawn to scale, including building footprints, driveway and parking layout. (iv) If a Concession or Incentive is requested, a brief explanation as to the actual cost reduction achieved through the Concession or Incentive and how the cost reduction allows the applicant to provide the Restricted Affordable Units. (v) If a waiver or modification is requested, a brief explanation of why the Development Standard would physically preclude the construction of the Development with the Density Bonus, Incentives, and Concessions requested. [Provisions required by State law are highlighted for reference] Not Yet Approved Attachment B 14 140102 jb 0131158 Rev. January 7, 2014 (vi) Site plan showing location of market-rate units, Restricted Affordable Units, and Density Bonus units within the proposed Development; (vii) Level of affordability of the Restricted Affordable Units and proposed method to ensure affordability; (viii) For Concessions and Incentives that are not included within the menu of Incentives/Concessions set forth in subsection (c) of Section 18.15.050, the application requires the submittal of the project proforma to the Director, providing evidence that the requested Concessions and Incentives result in identifiable, financially sufficient, and actual cost reductions. The cost of reviewing the project proforma, including, but not limited to, the cost to the City of hiring a consultant to review the financial data, shall be borne by the applicant. The proforma information shall include all of the following items: (A) The actual cost reduction achieved through the Concession; (B) Evidence that the cost reduction allows the applicant to provide affordable rents or affordable sales prices; and (C) Other information requested by the Planning Director. The Planning Director may require additional financial information include information regarding capital costs, equity investment, debt service, projected revenues, operating expenses, and such other information as is required to evaluate the financial information; (ix) If a waiver or modification of a Development Standard is requested, the applicant shall provide evidence that the Development Standard for which the waiver is requested will have the effect of physically precluding the construction of the Development with the Density Bonus and Concessions requested; (x) If a Density Bonus or Concession is requested for a land donation, the application shall show the location of the land to be dedicated, provide proof of site control, and provide evidence that all of the requirements and each of the findings included in Government Code Section 65915(g) can be made; (xi) If a density bonus or Concession is requested for a child care facility, the application shall show the location and square footage of the child care [Provisions required by State law are highlighted for reference] Not Yet Approved Attachment B 15 140102 jb 0131158 Rev. January 7, 2014 facilities and provide evidence that all of the requirements and each of the findings included in Government Code Section 65915(h) can be made. (xii) If a Density Bonus or Concession is requested for a condominium conversion, the applicant shall provide evidence that all of the requirements found in Government Code Section 65915.5 can be met. (b) In accordance with state law, neither the granting of a Concession, Incentive, waiver, modification, or revised parking standard, nor the granting of a Density Bonus, shall be interpreted, in and of itself, to require a general plan amendment, zoning change, variance, or other discretionary approval. (c) The Planned Community (PC) zone district is intended to accommodate developments requiring flexibility under controlled conditions not attainable under other zoning districts. Because of the flexible nature of the PC zone, which determines site specific requirements including density, the Chapter does not apply to this zoning district. (d) This Chapter implements State Density Bonus law. Any Density Bonus, Incentive, Concession, revised parking standard, waiver, or modification sought by an Applicant shall be made pursuant to this Chapter and may not be combined with similar requests under State Density Bonus law. 18.15.090 Review Procedures An application for a Density Bonus, Incentive, Concession, waiver, modification or revised parking standard shall be acted upon by the Approval Authority concurrently with the application for the first Discretionary Permit. The granting of a Density Bonus shall not be deemed approval of the entire Project or approval of any subsequent discretionary permit. (a) Before approving an application for a Density Bonus, Incentive, Concession, waiver, modification or revised parking standard, the Approval Authority shall make the following findings, as applicable: (i) The Development is eligible for the Density Bonus and any Concessions, waivers, modifications, or revised parking standards requested. (ii) Any requested Concession or Incentive will result in identifiable, financially sufficient, and actual cost reductions based upon the financial analysis and documentation provided. The City finds that the Concessions and Incentives included in Section 18.50.050(c) will result in identifiable, financially sufficient, and actual cost reductions. [Provisions required by State law are highlighted for reference] Not Yet Approved Attachment B 16 140102 jb 0131158 Rev. January 7, 2014 (iii) If the Density Bonus is based all or in part on donation of land, a finding that all the requirements included in Government Code Section 65915(g) have been met. (iv) If the Density Bonus, Concession or Incentive is based all or in part on the inclusion of a child care facility, a finding that all the requirements included in Government Code Section 65915(h) have been met. (v) If the Concession or Incentive includes mixed-use development, a finding that all the requirements included in Government Code Section 65915(k)(2) have been met. (vi) If a waiver or modification is requested, a finding that the Development Standards for which the waiver is requested would have the effect of physically precluding the construction of the Development with the Density Bonus and Concessions permitted. (b) Any granted Density Bonus and/or Concession(s) shall terminate with the demolition, destruction or other removal of the structure receiving the Density Bonus and/or Concession. (c) If the findings required by subsection (a) of this Section cannot be made, the Approval Authority may deny an application for a Concession, Incentive, waiver or modification only if it makes one of the following written findings, supported by substantial evidence: (i) The Concession, Incentive, waiver or modification is not required to provide for Affordable Rents or Affordable Sales Prices; or (ii) The Concession, Incentive, waiver or modification would have a specific, adverse impact upon public health or safety or the physical environment or on real property listed in the California Register of Historic Resources, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the Development unaffordable to Low and Moderate Income households. For the purpose of this subsection, "specific adverse impact" means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, written public health or safety standards, policies, or conditions as they existed on the date that the application for the Development was deemed complete; or (iii) The Concession, Incentive, waiver or modification is contrary to state or federal law. [Provisions required by State law are highlighted for reference] Not Yet Approved Attachment B 17 140102 jb 0131158 Rev. January 7, 2014 (c) If the Approval Authority is not the City Council, any decision denying a Density Bonus, Incentive, Concession, waiver, modification or revised parking standard may be appealed to the City Council within fourteen days of the date of the decision. 18.15.100 Regulatory Agreement (a) Applicants for a Density Bonus, Incentive, Concession, waiver, modification or revised parking standard shall enter into a Regulatory Agreement with the City. The terms of the draft agreement shall be approved as to form by the City Attorney and reviewed and revised as appropriate by the Director of Planning and Community Environment, who shall formulate a recommendation to the Approval Authority for final approval. (b) Following execution of the agreement by all parties, the completed Density Bonus Regulatory Agreement, or memorandum thereof, shall be recorded and the conditions filed and recorded on the Development. (c) The approval of the Regulatory Agreement shall take place prior to tentative map approval, and recordation shall take place prior to final map approval, or, where a map is not being processed, prior to approval of the final Discretionary Permit. The Regulatory Agreement shall be binding to all future owners and successors in interest. (d) The Regulatory Agreement shall be consistent with the guidelines of the City’s Below Market Rate Program and shall include at a minimum the following: (i) The total number of dwelling units approved for the Development, including the number of Restricted Affordable Units; (ii) A description of the household income group to be accommodated by the Restricted Affordable Units, and the standards for determining the corresponding Affordable Rent or Affordable Sales Price; (iii) The location, dwelling unit sizes (square feet), and number of bedrooms of the Restricted Affordable Units; (iv) Term of use restrictions for Restricted Affordable Units of at least 59 years for Moderate Income units and at least 30 years for Low and Very Low units; (v) A schedule for completion and occupancy of Restricted Affordable Units; [Provisions required by State law are highlighted for reference] Not Yet Approved Attachment B 18 140102 jb 0131158 Rev. January 7, 2014 (vi) A description of any Concession, Incentive, waiver, modification, or revised parking standard, if any, being provided by the City; (vii) A description of remedies for breach of the agreement (the City may identify tenants or qualified purchasers as third party beneficiaries under the agreement); and (viii) Other provisions to ensure implementation and compliance with this Section. SECTION 3. CEQA. The proposed Ordinance revises the requirements for granting a residential density bonus to comply with revisions to Government Code Section 65915 enacted by the Legislature through the adoption of Senate Bill 1818. Adoption of the draft density bonus codifies allowances that developers have been able to use in housing developments since 2005. Further, the revisions modify the criteria and incentives offered to qualifying developments but do not authorize construction not already permitted under the City’s existing codes. Also, it is uncertain how many project applicants will seek to utilize the provisions of State law and this Ordinance and where such projects might be located in the City. Further, each individual project will be subject to its own environmental review. Consequently, this ordinance is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations since it can be seen with certainty that there is no possibility the adoption and implementation of this Ordinance may have a significant effect on the environment. SECTION 4. Severability. If any provision, clause, sentence or paragraph of this ordinance, or the application to any person or circumstances, shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance which can be given effect without the invalid provision or application and, to this end, the provisions of this Ordinance are hereby declared to be severable. / / / / / / / / / / / / [Provisions required by State law are highlighted for reference] Not Yet Approved Attachment B 19 140102 jb 0131158 Rev. January 7, 2014 / / [Provisions required by State law are highlighted for reference] Not Yet Approved Attachment B 20 140102 jb 0131158 Rev. January 7, 2014 SECTION 5. This ordinance shall be effective on the thirty-first date after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Senior Assistant City Attorney City Manager ____________________________ Director of Planning & Community Environment CITY COUNCIL ELT MOTIONS Attachment C 1 January 13, 2014 Special Meeting January 13, 2014 The City Council of the City of Palo Alto met on this date in the Council Chambers at 6:03 P.M. Present: Berman, Burt, Holman, Klein, Kniss, Price arrived @ 7:00 P.M., Scharff, Schmid, Shepherd Absent: None Action Items 14. Public Hearing: On Objections to Weed Abatement and Adoption of Resolution Ordering Weed Nuisance Abated. MOTION: Council Member Berman moved, seconded by Council Member Price to adopt the resolution ordering the abatement of weed nuisances in the City of Palo Alto. MOTION PASSED: 9-0 15. Public Hearing: Ordinance to Amend Sections 18.04.030 (Definitions), 18.16.060 (CN Zone), 18.18.060 (CD Zone), 18.20.030 (ROLM(E) Zone) and Add Section 18.46 (Reasonable Accommodation) of Title 18 (Zoning) of Palo Alto Municipal Code to Implement 2007-2014 Housing Element Programs. 16. Public Hearing: Council Review and Adoption of an Ordinance for a New Chapter 18.15 (Residential Density Bonus) to include in Title 18 of the Palo Alto Municipal Code to Implement Government Code Section 65915. SUBSTITUTE MOTION: Council Member Scharff moved, seconded by Council Member Burt to adopt an Ordinance to implement five programs in the City’s Housing Element by amending Title 18 (Zoning) of the Palo Alto Municipal Code (PAMC) to make the following changes: 1. Amend Section 18.04.030 (Definitions) to add definitions for Emergency Shelter, Supportive Housing and Transitional Housing to comply with the definitions found in State law and to conform to the 2 January 13, 2014 requirements of Government Section Code 65583. 2. Amend Section 18.16.060 (Development Standards for CN, CC, and CS Districts) to increase the density for residential projects in the CN zone district from 15 units per acre to 20 units per acre for CN parcels in Housing Inventory Sites list of the Housing Element. 3. Amend Section 18.20.030 (Land Uses for MOR, ROLM, ROLM(E), RP and GM Districts) to add Emergency Shelters for the Homeless as a permitted use in the portion of the ROLM (E) District located east of Highway 101, and to establish performance and design standards for emergency shelters as outlined in the Palo Alto Quality Assurance Standards for Emergency Shelters (Attachment B). 4. Add Chapter 18.46 (Requests for Reasonable Accommodation for Accessibility) to establish a process for persons with disabilities to seek a modification to the zoning regulations to eliminate regulatory barriers to providing housing for persons with a disability as required by State law. Typical improvements that would be considered for reasonable accommodation provisions include ramps, walls, handrails, elevators or lifts, or similar physical improvements necessary to accommodate a person’s disability. 5. Revise Section 18.16.060(c) (CN zoning) and 18.18.060(c) (CD zoning) to be consistent with the current Housing Element which does not allow exclusive residential uses for identified parcels in the Housing Element. Furthermore, refer to Planning and Transportation Commission to reduce the FAR in the CN Zone for sites identified in the Housing Inventory and should consider retail proportion of the FAR including ground floor retail requirements. SUBSTITUTE MOTION PASSED: 8-1 Klein, Schmid no MOTION: Council Member Holman moved, seconded by Vice Mayor Kniss to approve Staff recommendation that the Council adopt an Ordinance for a new chapter 18.15 (Residential Density Bonus) to include in Title 18 of the Palo Alto Municipal Code, implementing Government Code Section 65915 in accordance with State Law. Furthermore to delete section 18.15.050(f). INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER TO decrease FAR to 25% not 50% on subsection (iv) on packet page 522. MOTION AS AMENDED PASSED: 8-1 Klein no Adjournment: The meeting was adjourned at 11:09 P.M. CITY OF PALO ALTO OFFICE OF THE CITY ATTORNEY January 27, 2014 The Honorable City Council Palo Alto, California Request for Authorization to Increase Existing Contract with the Law Firm of Ginn & Crosby by an Additional $135,000 For a Total Contract Not to Exceed Amount of $200,000 for Legal Services Recommendation The City Attorney's Office requests authorization to increase and amend the existing contract with the law firm of Ginn & Crosby, LLP, Attorneys at Law, by an additional $135,000 for legal services relating to construction of the Mitchell Park Library and Community Center. In November 2012, the City retained Ginn & Crosby to provide consultation and advice relating to construction issues arising at the Mitchell Park Library and Community Center project. The initial contract was amended to bring the total contract not to exceed amount to $65,000. Additional funding is needed and the Office of the City Attorney requests authorization to amend the existing contract to add an additional $135,000 for a total contract not to exceed amount of $200,000. Funding for this contract amendment does not require additional budgetary authority as it can be accommodated within the Mitchell Park Library and Community Center New Construction (PE-09006) Capital Improvement Project budget for FY 2014. Department Head: Molly Stump, City Attorney Page 2 City of Palo Alto (ID # 4432) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/27/2014 City of Palo Alto Page 1 Council Priority: Environmental Sustainability Summary Title: Ameresco San Joaquin LLC Contract Amendment No. 2 Title: Approval of Amendment No. 2 to the City's Power Purchase Agreement with Ameresco San Joaquin, LLC to Extend the Landfill Gas Electric Generating Facility's Commercial Operation Date to April 30, 2014 Upon Receipt of a $120,000 Administrative Payment From: City Manager Lead Department: Utilities Recommendation Staff recommends that Council approve and authorize the City Manager or his designee to execute the attached amendment (Attachment A) to the Power Purchase Agreement (PPA) with Ameresco San Joaquin LLC (San Joaquin) to extend the landfill gas electric generating facility’s Commercial Operation Date deadline to April 30, 2014, upon receipt of a $120,000 administrative payment from San Joaquin to the City. Executive Summary The City signed a 20-year PPA with San Joaquin for a landfill gas electric generating facility (“the Project”) and San Joaquin has informed the City that the Project will miss its Commercial Operation Date (“COD”) deadline. The PPA with San Joaquin included a milestone for the Project to achieve its COD by November 23, 2013, but San Joaquin reported that interconnection delays have caused the COD to be delayed beyond that date. In October, San Joaquin asked the City to extend the COD and on November 18, 2013, Council approved Amendment No. 1 to the PPA to extend the COD to January 31, 2014. On January 7, 2014, San Joaquin notified staff that further interconnection delays will likely cause the Project to be delayed beyond January 31, 2014, and requested an additional extension. Staff recommends that the City amend the PPA to accommodate this request, in exchange for an administrative payment from San Joaquin to the City of $120,000. City of Palo Alto Page 2 When operational, the San Joaquin project will provide about 3% of the City’s total electric needs and increase the City’s percentage of renewable resources from 21% to 24% of its total needs. Background In May 2010, Council approved the PPA with San Joaquin to obtain all of the electric output of a landfill gas electric generating facility over a 20-year term (Resolution 9055, CMR 226:10). The PPA listed several project development “milestones” and established deadlines for their completion. The milestones included: obtaining site control, obtaining all necessary permits, executing an interconnection agreement with the owner of the local transmission and distribution system, Pacific Gas and Electric Company (PG&E), obtaining construction financing, starting construction, and achieving commercial operation. In the event that San Joaquin failed to meet any of these development milestones, the PPA provided that Palo Alto could assess liquidated damages against San Joaquin, and, in some instances, terminate the contract. At the time the City executed the PPA in 2010, San Joaquin indicated that the plant was expected to achieve commercial operation in January 2013. The contractual deadline for achieving COD, however, was originally set to be November 23, 2013. In October 2013, San Joaquin informed the City that the Project was almost ready to begin operating, but that it was being held up by PG&E, which was delayed in completing a backlog of projects to interconnect to the electric grid. Therefore, at San Joaquin’s request, on November 18, 2013, the Council approved Amendment No. 1 to the PPA, in which the contractual COD deadline was extended to January 31, 2014, and the City waived its right to collect liquidated damages for the approximately two month delay in the Project achieving commercial operation beyond the original COD deadline (Staff Report ID 4218). Discussion According to San Joaquin, the facility is fully permitted, San Joaquin has an executed small generator interconnection agreement (SGIA) with PG&E, and construction of the facility was substantially complete as of July 2013. Since that time, San Joaquin reports that the only obstacle preventing the Project from achieving commercial operation is the failure of PG&E, AT&T and Verizon to complete the necessary work to connect the facility to a nearby electrical substation and to allow the facility and the substation to communicate with the electric grid operator. City of Palo Alto Page 3 Section 7.4(c) of the PPA states that failure to achieve the COD deadline results in San Joaquin becoming liable for liquidated damages of approximately $28,500 for each month the COD is delayed beyond the contractual deadline. In November 2013, staff recommended that Council approve an extension of the COD deadline to January 31, 2014, and waive its right to seek liquidated damages for that delay period. Staff’s recommendation at that time was based primarily on reliance on San Joaquin’s claims that the delayed COD was due to PG&E’s inability to complete the interconnection upgrade work in a timely manner. At that time, San Joaquin provided assurances that the delay would not extend past January 31, 2014; however, on January 7, 2014, San Joaquin notified staff that the progress made by PG&E, AT&T and Verizon on completing the work for electrical interconnection of the plant has been considerably slower than San Joaquin originally anticipated. As such, San Joaquin has requested an additional three-month extension of the COD deadline. Due to the significant amount of time staff has spent negotiating and seeking approval for these two contract amendments, and in consideration of the harm the City has suffered as a result of the Project’s COD delay, staff negotiated with San Joaquin for the City to receive an administrative payment of $120,000 in exchange for the approval of this additional three- month extension of the contractual COD deadline. If approved by Council, this second amendment will only become effective upon the City’s receipt of the full administrative payment by the January 30, 2014 deadline. The City rejects San Joaquin’s claim that its failure to meet the COD is the result of a “force majeure” event under the PPA, entitling it to up to a six-month extension of the COD deadline. If San Joaquin fails to timely submit the payment, San Joaquin will be in default of its contractual obligations and will be liable for liquidated damages of approximately $28,500 for each month that the COD is delayed. The contract permits the City to terminate the agreement if San Joaquin fails to pay the monthly liquidated damages during the delay period following the current COD. If Council declines to approve this second amendment and the Project misses the current COD deadline as expected, San Joaquin will be in default. San Joaquin represents that under the terms of its financing agreement for this facility (an agreement to which the City is not a party), if it defaults on the PPA its lender would require San Joaquin to immediately repay its construction loan in full, resulting in approximately $100,000 of financial harm to San Joaquin. Resource Impact Approving the recommendation will result in the City receiving a payment of $120,000 from San Joaquin as compensation for the administrative effort required to approve two contract amendments and the harm suffered due to the delay in the Project’s COD to April 30, 2014. City of Palo Alto Page 4 Not approving the recommendation would likely lead to San Joaquin being in default of its contactual obligations, and the City would seek liquidated damages of approximately $28,500 per month for any delays beyond the current January 31, 2014, COD deadline. Policy Implications This recommendation does not represent any change to existing City policies. Environmental Review Approval of the second amendment to the Ameresco San Joaquin LLC contract does not meet the definition of a project, pursuant to Section 21065 of the California Environmental Quality Act (CEQA). Attachments:  Attachment A: Amendment (PDF) 130121 dm 6052050 1 AMENDMENT NO. 2 TO POWER PURCHASE AGREEMENT BETWEEN THE CITY OF PALO ALTO AND AMERESCO SAN JOAQUIN, LLC This Amendment No. 2 (“Second Amendment”) to the Power Purchase Agreement dated May 3, 2010 (“Agreement”) is entered into as of _________________________, 2014, by and between the CITY OF PALO ALTO, a California chartered municipal corporation of the State of California (“CITY” or “BUYER”), and Ameresco San Joaquin LLC, a Delaware Limited Liability Company, located at 111 Speen Street, Suite 410, Framingham, MA 01701 (“San Joaquin” or “SELLER”). R E C I T A L S 1. The Agreement was entered into between the parties for the sale of energy to BUYER from SELLER’S Landfill Gas electric generating facility to be located at the Foothill Sanitary Landfill; 2. SELLER wishes to extend for a second time the Commercial Operation Date for the Landfill Gas electric generating facility to April 30, 2014; 3. BUYER has agreed to the extension SELLER has requested, conditioned upon receipt of an administrative payment offered by SELLER to provide adequate consideration to compensate BUYER for financial and other harm suffered as a result of the delayed Commercial Operation Date, which is difficult and impractical to quantify at this time, including, without limitation, BUYER’s estimate of staff time spent negotiating and seeking approval for the two amendments SELLER has sought to date; and because the Parties agree the delay is not a Force Majeure Event under the terms of the Agreement. In consideration of the covenants, terms, conditions, and provisions of this Second Amendment, the parties agree: SECTION 1. Section 4.3(b)(v) is amended to read as follows: (v) By April 30, 2014, Seller shall have achieved the Commercial Operation Date.” SECTION 2. Section 7.4(e) is hereby added to the Agreement as follows: (e) Administrative Payment. No later than 4pm Pacific Standard Time on January 30, 2014, SELLER agrees to remit to BUYER a payment of one hundred twenty thousand dollars ($120,000) to the following account: Bank: Wells Fargo Bank, N.A. Bank Routing Number: 121 000 248 Account Number: 412 107 6145 Beneficiary Account Name: City of Palo Alto Type of Account: Checking Bank Address, City, State: 420 Montgomery Street San Francisco, CA 94104 Federal Tax ID #: 94 6000 389 130121 dm 6052050 2 SECTION 3. This Second Amendment shall not become effective or enforceable unless and until SELLER remits the Administrative Payment identified in Section 2 of this Second Amendment to BUYER by January 30, 2014. SECTION 4. BUYER’s extension of the Commercial Operation Date in this Second Amendment shall not be construed as (a) a waiver or relinquishment of any of BUYER’s rights or SELLER’s obligations under the terms and conditions of the Agreement; or (b) BUYER’s agreement that SELLER’s delay in achieving the Commercial Operation Date constitutes a Force Majeure Event under the terms of the Agreement. SECTION 5. Except as modified by this Second Amendment, all other provisions of the Agreement, including any exhibits and subsequent amendments, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have by their duly authorized representatives executed this Second Amendment on the date first above written. CITY OF PALO ALTO APPROVED AS TO FORM: __________________________ Senior Deputy City Attorney APPROVED: __________________________ Director of Utilities ____________________________ City Manager AMERESCO SAN JOAQUIN, LLC By:___________________________ Name:_________________________ Title:__________________________ By:____________________________ Name:_________________________ Title:___________________________ City of Palo Alto (ID # 4376) City Council Staff Report Report Type: Action Items Meeting Date: 1/27/2014 City of Palo Alto Page 1 Summary Title: Policy Direction of RPP Framework Title: Council Review and Policy Direction to Staff on the Residential Parking Permit Program Framework (Continued from December 16, 2013) From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that Council review and provide direction on a proposed conceptual framework for the establishment of RPP (Residential Preferential Parking) districts. The conceptual RPP framework outlines the process and evaluation criteria necessary for establishment of RPP districts, as well as key implementation issues that would have to be resolved during establishment of individual RPP districts. Specific policy questions have been highlighted for Council consideration and direction. Note: The proposed framework is conceptual and should be discussed at a policy-level. Some Council members and staff may be precluded from participating in more specific discussions regarding individual RPP districts. Executive Summary In the past few years, community concern about parking supply and traffic congestion in Palo Alto’s downtown and neighborhoods has reached critical levels. Council listed “The Future of Downtown and California Avenue: Urban Design, Transportation, Parking, and Livability” as a top priority for the year 2013, and the City has been actively engaged on initiatives related to managing/increasing parking supplies as well as promoting alternative modes of transportation. Establishment of an RPP program can be seen as part of these initiatives, since it would better manage parking supplies and encourage commuters to use travel modes such as transit, carpooling, or bicycling. City of Palo Alto Page 2 The objective of an RPP program is to preserve a neighborhood’s quality of life by ensuring adequate parking for neighborhood residents. The RPP framework must acknowledge, however, that in some neighborhoods of the City, existing businesses and employees currently rely on street parking to supplement available parking lots and garages, and the process for establishing RPP districts must address this issue. The proposed RPP framework outlines the process neighborhoods would follow to establish an RPP district and contains: 1. Suggested criteria for creation of neighborhood RPP districts; 2. A suggested process for establishment of neighborhood RPP districts, including data collection and community engagement requirements; and 3. A list of key issues that will have to be resolved during RPP implementation, including the cost of permits, the extent of enforcement, and the appropriate supply of permits for residents and non-resident employees. A summary of community perspectives, existing RPP programs, and examples from other jurisdictions is provided below, followed by a discussion of a possible RPP framework. Based on Council’s review and direction, staff is prepared to develop a draft ordinance setting forth the RPP framework for additional community input, review by the Planning and Transportation Commission and consideration by the Council during the first quarter of 2014. As currently envisioned, the RPP framework would have to be adopted before individual neighborhoods could apply to establish an RPP, although the Council could direct staff to work in parallel on a priority district(s), if there is general agreement on the conceptual framework. Also, as currently envisioned, the cost of implementing neighborhood parking restrictions would be fully offset by permit and citation revenues, although this is mostly conceptual at this point. Background The City Council has directed staff to assess a variety of transportation and parking initiatives for implementation in the last year. These initiatives include transportation demand management (TDM) strategies aimed at promoting the use of alternatives to solo driving and reducing traffic and parking demand. Parking management, including establishment of an RPP Framework can be seen as a TDM strategy, complementing other efforts such as: 1. Car share program in downtown lots and garages 2. Satellite parking lots outside of downtown with expanded shuttle service 3. Expansion of Palo Alto’s shuttle program to better support local and commuter routes  Quality of life issue  Part of larger transportation strategies  Community process with neighborhood and business involvement City of Palo Alto Page 3 4. Improved bike infrastructure and bike-sharing options 5. Transportation Management Authority (TMA) consideration to help identify grant opportunities and build public-private partnerships aimed at shifting commuters to alternative transportation modes 6. Use of technology, including employee car pool/share mobile app Establishment of an RPP framework can also be viewed in the context of strategies aimed at addressing parking supply issues. These include: 1. Parking study to identify opportunities for new parking garages. 2. Attendant parking for downtown garages to expand permit parking supply 3. Permit management modifications to allow the temporary transfer of permits between employees 4. Technology enhancements to support parking guidance systems and permit management strategies 5. Consideration of paid parking in commercial districts 6. Elimination of zoning exemptions for new development An update on the City’s ongoing initiatives can be found in Attachment A: Ongoing Parking and Transportation Demand Management Initiatives. RPP History in Palo Alto In 1996 Council approved a staff recommendation to conduct a survey of residential areas in the downtown proximity to determine whether parking saturation was a concern. While the results of the survey did not show obvious resident support for a downtown RPP District, many residents noted an increase in the difficulty of parking compared to previous years. In 2001 staff requested approval of an RPP framework which would coincide with the opening of new parking garages downtown. Council directed staff to develop a program showing permits that would have no annual cost to residents, provide 2-hour free parking for visitors and charge an annual fee for non-residents who wished to purchase them. However, the framework was ultimately not adopted. As downtown development continued to expand and Palo Alto’s neighborhoods became more concerned about employee and commuter parking, resident support for an RPP district within the downtown area grew. In 2011 and 2012, staff explored implementing a trial RPP in the Professorville neighborhood, but the effort was halted in July of 2012 when Council recommended focusing on other parking management strategies including attendant parking, garage capacity analysis, zoning exemptions and others. The City made some progress on those initiatives, although much more remains to be done. (See Attachment A.) City of Palo Alto Page 4 Although the trial Professorville RPP was not implemented, in the fall of 2012 and the spring of 2013 there was significant community support to continue to examine a Downtown-focused RPP district which would limit employee commuters from parking all day in neighborhoods. Staff held parking meetings for downtown residents and business leaders in the summer and fall of 2013 to get feedback on a proposed downtown RPP district, which extended from Palo Alto Avenue to Embarcadero and from Guinda to Alma. This initial proposal, which eventually led to the current, broader discussion of a Citywide RPP framework, allowed residents of neighborhoods in the immediate vicinity to express support for RPP District implementation near the downtown, voicing the following perspectives: 1. Commuter parking intrusion into certain areas, specifically Evergreen Park and Downtown North, is making it regularly impossible for some residents to park next to their homes during normal business hours. 2. Increased office employment densities and increased food service uses have resulted in greater parking demand, despite limited development during the economic downturn. 3. Upcoming development projects will bring more people to downtown and employees will spill over into the residential parking areas. 4. The City has not built new parking garages since 2003, and there is not enough downtown parking to accommodate all of the employees. Also, some existing parking garages may not be at capacity because free on-street parking is available in adjacent neighborhoods. At the same time, business leaders expressed concerns about RPP near downtown, voicing the following perspectives: 1. The economic vitality of Palo Alto’s downtown depends on the availability of parking for customers and employees, and an RPP Program, if implemented without other measures first, will be very detrimental. 2. Low-wage employees of small businesses cannot afford the costs of permits for their employees, and there are currently not adequate alternative transportation modes available to support local businesses. 3. There will be nowhere for employees to park if RPP is implemented since there is currently limited permits available for downtown lots and garages. 4. Employees will relocate to short term spaces, moving their cars every two hours, and customers will not have places to park. City of Palo Alto Page 5 Attachments B and E contain a selection of comments and data submitted by interested residents and businesses during the past couple of months. Currently, the only formal RPP District in Palo Alto exists in the College Terrace neighborhood adjacent to Stanford University and the California Avenue Business District. Crescent Park has a permit parking program which allows permit-holders to be exempt from overnight parking restrictions, but this is not the same as an RPP designed to address neighborhood intrusions by employees during regular business hours. The neighborhood programs in College Terrace and Crescent Park are not the result of a consistent RPP framework process and are considered predecessors to a more formalized approach. College Terrace Neighborhood The College Terrace RPP District was enacted in 2009 due to concern about Stanford staff and students parking in this neighborhood, and later parking by Facebook’s employees from 1601 California Avenue. As a condition of approval for Stanford's 2000 General Use Permit, seed money was provided to the City to support a Residential Parking Permit Program in the College Terrace neighborhood. The RPP is neighborhood-wide; however individual blocks can opt out of the program by providing a petition process with 51% of the addresses on the block in favor of opting out. The College Terrace RPP program allows one residential parking permit to be purchased for each vehicle of a household owner at a cost of $40 annually. Each resident can also purchase up to two reusable guest permits. The guest permits are available only for a household that has purchased at least one resident parking permit; this allowance provides accessibility for resident services in the neighborhood as well as for guests of the household. Guest passes are provided per household rather than per vehicle ownership, and are designed to hang from the rear view mirror. The program enforcement period is Monday-Friday, between 8:00am and 5:00pm. No business or employee permits are made available. The program allows permit holders to use on-street parking at any time, while vehicles without a permit may park for only up to 2 hours during the enforcement period within the same street block. All vehicles may use on-street parking outside of this period. Currently the College Terrace RPP District operates at a loss; the annual revenue received from residential permits and citations does not cover the annual operating expense for the program including enforcement, revenue collections and signage maintenance. Crescent Park Neighborhood City of Palo Alto Page 6 The Crescent Park permit program was initiated as a response to resident concerns about non- Palo Alto residents parking within the neighborhood. Staff proposed that a no-overnight restriction could be implemented to eliminate parking from outside sources, and in the summer of 2013 Council approved a trial No Overnight Parking (2AM-5AM) program with a provision for residents to purchase up to two (2) permits per household. The permits exempt residents from the no overnight parking restrictions and cost $100 each. Permit revenues were intended to significantly offset enforcement expenses, although enforcement is by request only, which minimizes the operations cost of the program to the City. At the time of the adoption of the Crescent Park program, Council identified several pre- approved street blocks which have the option to opt into the program. Currently, most of the street blocks have done so. If a specific block from the pre-approved street list wishes to add itself to the permit district, Staff provides a Petition Request to the resident. A 50% response rate to the petition is requested from the block stating that they desire a permit program to be implemented. Staff then initiates a postal survey to confirm the results of the petition, and if 70% of the respondents are in favor of the program, the street block is included within the trial program. If a block which has not been pre-approved for addition to the permit program requests to be included, the request would need to be considered by Council via a resolution. Since the start of the trial program several additional street have successfully opted into the program. An updated program map of the Crescent Park permit program is provided in Attachment C. RPP Summary: Other Jurisdictions Many other cities across the state, peninsula and within the Bay Area have RPP programs to alleviate impacts from non-resident parking. A summary of some RPP programs are outlined below: 1. City of Santa Monica: The City of Santa Monica allows purchase of up to four residential permits per address, and scales the cost from $20 to $60 depending on how many permits are purchased. Non-residential permits are not available for purchase except on a case-by-case basis. 2. City of Santa Cruz: The City of Santa Cruz charges $25 per permit for residents and $240 per permit for commercial businesses. However, the purchase of a permit for non- residents is only allowed if 60% of the parking occupancy of a street block is vacant based on City occupancy data. Only two non-residential spots per block are allowed, and these spots are restricted to daytime hours. 3. City of Berkeley: Certain businesses within a designated Merchant Permit Range may purchase only one permit annually. Rates are $125, while the resident permits cost $45. Exceptions are made to the rule on merchant permits on a case-by-case basis. City of Palo Alto Page 7 4. City of San Francisco: In San Francisco, rates for both businesses and residents are $109 per permit within any of its RPP Districts. For businesses, only one parking permit for a personal vehicle per postal address is allowed. 5. City of San Jose: Permits are sold to both residents and non-residents in San Jose at $33 per permit. San Jose also offers Guest Permits to all residents in each zone. Some zones have to pay for their Guest pass while other zones get them for free (several RPP zones in San Jose do not charge at all for a residential parking permit because of how the program was initiated.) San Jose also has Single Use Permits that are free in each zone, which can be used for a maximum of three days. 6. City of Los Gatos: Permits are sold to residents of six residential districts in Los Gatos at $39 per permit. In one commercial district, permits may be purchased for the same price by non-residents. 7. City of San Mateo: The City of San Mateo RPP is funded through the revenue generated from parking citations and provides permits free to residents. When the program was initiated, the City conducted an evaluation which determined that there were sufficient funds being collected by the citation revenue to cover the costs of the program. The citation revenue goes into the General Fund, but the City has not confirmed recently whether citation revenues are still covering the costs of the program. See Attachment D for a table comparing the characteristics of some of these RPP programs. Discussion Staff is requesting direction on a conceptual, City-wide RPP framework consisting of (a) suggested criteria for establishment of RPP districts; (b) a suggested process for establishment of neighborhood RPP districts; and (c) a list of key implementation issues that would need to be addressed for each new RPP district, with different implications in terms of timing, enforcement, and cost. Based on Council’s direction, staff would prepare a draft ordinance for public input, Planning and Transportation Commission review, and formal consideration by the City Council. Elements of the conceptual framework are described below: Criteria for Establishment of RPP Districts Staff suggests three criteria for establishment of a neighborhood RPP; all three criteria would have to be met for an RPP proposal to be adopted by the City: a. First, there would have to be an identified source of non-resident parking intrusion within the neighborhood. If there is an identified residential source of intrusion (e.g. from an adjacent neighborhood), this criterion would not be met, City of Palo Alto Page 8 although the RPP Framework could allow for some flexibility with an exception for “special circumstances.” b. Secondly, the average occupancy on the streets in the proposed RPP District during the period of concern would have to be at least 75%. Periods of concern will generally consist of peak periods during regular business hours. The RPP framework could establish a specific period of concern, or could allow for flexibility. c. Finally, at least two-thirds of the neighborhood residents would have to support establishment of the RPP District, including the proposed cost of permits and level of enforcement. Community input and Council direction on these potential criteria would be appreciated. In particular, does the 75% occupancy standard provide an appropriately high bar that is adequately protective of the neighborhood quality of life? Process for Establishment of RPP Districts Staff suggests a five step process for the establishment of a neighborhood RPP District. Each of these steps is listed below with a brief description. Community input and Council direction on this five step process would be appreciated. Staff is particularly interested in some direction regarding prioritization of RPP requests (Step 1), since it would probably be infeasible for staff (or the PTC and Council) to undertake data collection/analysis and community outreach related to more than one or two potential RPP districts at one time. In particular, if the initial focus is to be on downtown neighborhoods, staff would not have the resources to process requests from other neighborhoods at the same time. 1. Prioritization and Petitions. Neighborhood residents interested in establishing an RPP district would be required to submit an initial request for assistance from the City’s Department of Planning and Community Environment for prioritization and development of petitions for the collection of resident signatures. The RPP Framework should either establish priorities, or indicate the decision makers (e.g. Planning Director, PTC, etc.) who will do so. Is 75% Occupancy the Appropriate Standard for Establishment of an RPP District? Five Step Process for consideration of new RPP districts How should RPP district requests be prioritized for consideration by the City? City of Palo Alto Page 9 Once a request for establishment of an RPP district is prioritized for consideration, a city-generated petition form and a map showing potential boundaries for the proposed RPP District would be used to ensure consistency. The petition would also include a description of the area and possible restrictions/costs to help neighborhood organizers educate residents on the benefits and impacts of an RPP District. (Note that staff would assist neighborhood residents with preliminary boundaries and possible restrictions/costs, but these would be subject to change during the process of establishing the RPP District.) At the same time, neighborhood organizers would be required to consult with representatives from the businesses or uses that are thought to be the source of non-resident parking. City staff could facilitate this consultation. 2. Data Collection & Analysis. Once the City receives a petition demonstrating support from 50% of neighborhood residents, as well as evidence of consultation with the potential source(s) of non-resident parking, the City would conduct a parking occupancy survey to evaluate various periods of concern and district boundaries. While resident- collected parking occupancy data would be accepted as a justification to prioritize consideration of the district, the City will require an independent consultant under contract to determine if the occupancy criteria of 75% has been met, as well as the recommended district boundaries and restrictions. Occupancy surveys will be completed during normal traffic data collection periods when schools in the Palo Alto Unified School District and Stanford University are in session. Data will not be collected on city holidays, Mondays, Fridays, summer recess from schools, and periods of inclement weather. The City may also collect parking occupancy data beyond the proposed RPP District boundary to help evaluate potential impacts of the RPP District if implemented. Concurrently, staff will send a post card survey that includes the potential boundaries and costs of the proposed RPP district to validate neighborhood support. Each household will be asked to submit one response. A super majority (70%) support from returned surveys must be received in order for the RPP District to be considered further, with at least a 50% response rate. Staff may also elect to use an online survey rather than a postal survey but one only one vote per household will be used. This is consistent with the methodology used in the modified Crescent Park No Overnight Parking program. To conclude the data collection and analysis phase, Staff would consider whether a proposed RPP would have any impacts requiring review under the California Environmental Quality Act. It is anticipated that districts would be structured to avoid such impacts, however the City will assess potential district boundaries, spill-over traffic and parking impacts, and indirect physical environmental impacts that may need to be addressed. City of Palo Alto Page 10 3. Community Outreach & PTC Recommendation. City staff will organize a community outreach meeting with residents of the proposed RPP district boundary, the residents of any adjacent districts and, if possible, with the businesses and commuters thought to be the source of parking intrusion into the neighborhood. The purpose of community outreach will be to provide information to residents who may not have participated in the petition process, as well as to share the findings from parking occupancy studies, recommended restrictions, permit costs, and a tentative implementation schedule. Following the community outreach meeting and any necessary adjustments, City staff will request that the Planning & Transportation Commission (PTC) review and make a recommendation to the City Council. The PTC may make a recommendation to the City Council immediately based on testimony at their hearing, or may require a second community outreach meeting with residents and affected businesses/commuters prior to making a recommendation. The PTC may also require resident-leaders to solicit additional petition signatures to further expand the proposed RPP District boundary. 4. City Council Approval on a Trial Basis. Once the PTC has made a recommendation, the City Council will hold a public hearing and consider establishment of the RPP District for a trial evaluation period based on the criteria presented above. Implementing the district for a trial period will allow the neighborhood and the City to assess the effectiveness of the parking restrictions, and to gauge any unintended consequences or boundary adjustments that are needed. (See below for more discussion regarding implementation questions.) 5. Monitoring and Final Adoption. During the trial period, additional parking occupancy data will be collected and City staff will send a follow-up post card survey to solicit public input for permanent retention or removal of the trial RPP district. City Staff will present the results of the survey and monitoring data to the City Council for consideration of permanently establishing the RPP district after the trial period. RPP Implementation Questions As part of the decision to establish an RPP district, the City will need to obtain community input and resolve several key implementation questions: 1. How many residential and non-residential permits will be issued and how will they be distributed? 2. How will the program be rolled out, and what concurrent or prerequisite actions will be taken to address the needs of displaced employees? City of Palo Alto Page 11 3. What will permits cost, what will the cost-recovery level/General Fund subsidy be for the program, and what level of enforcement will be used? All of these questions are interrelated and answers are likely to vary somewhat by district. Residential Permits. Staff anticipates that most RPP districts would entitle residents living in the district to purchase one permit for each vehicle registered at their address, with a limit of two permits per household. There may be districts in which this is not the case, and certain restrictions may be appropriate for multi-family residential developments that provide structured parking for their occupants. Residents would be required to provide the California license plate information for each vehicle within their household to assist with parking enforcement and any resident living within an RPP district could also purchase a number of day passes to support daytime events within their household. The following application requirements are suggested for residents to obtain a permit within a designated RPP district: (a) Applicants must demonstrate they are currently a resident of the area for which the permit is to be issued by providing documentation with their address as part of the application. Documents may include: a. Copy of City of Palo Alto Utilities bill b. Current vehicle insurance policy c. Bank statement or pre-printed check with the resident’s name and address d. Rental/lease agreement (b) Applicants must demonstrate ownership or continuing custody of the motor vehicle receiving the permit, either by proof of vehicle registration or other DMV document. (c) Any motor vehicle to be issued a permit must have a vehicle registration indicating registration at the address for which the permit is to be issued. Residents could apply for permits either in person at the Revenue Collections office at City Hall, or online via the City of Palo Alto online permit management system. Two permits per household, guest passes, and application requirements City of Palo Alto Page 12 Employee Permits. Parking intrusion by non-resident cars in residential neighborhoods is occurring for a variety of reasons, including demand from Caltrain commuters, students, and employees of nearby businesses who are unable to park at or nearer their workplace. The City has an interest in accommodating employees who may be displaced with the implementation of a strict RPP program by providing the employees with alternatives, or by making some permits available to employees who work in the immediate vicinity. This could mean phasing-in the RPP program while other parking options or TDM programs are implemented. Under this limited, phase-in approach, the City Council would specify programs or improvements required prior to RPP implementation. When those requirements are met, permits would be issued to residents only, confirming the actual residential parking demand. Then a limited number of permits could be released for employees based on the determined occupancy rate. An alternative approach would be to issue permits to both residents and employees to start with, confirming actual parking demand by both groups (and excluding Caltrain commuters, students, etc.). The employee permits could then be phased out over several years as other parking options or TDM programs are implemented. The decision to use a phase-in or phase- out approach will depend on the source and nature of non-resident parking intrusions, and the timing of expected parking solutions and TDM programs affecting the area. Phase-In? or Phase-Out?  Phase-in the RPP restrictions as additional parking supplies and TDM programs come on line  Provide a limited number of employee permits if occupancy remains low after residential permits are issued  Allow both residents and employees to purchase permits (but not Caltrain commuters, students, etc.)  Phase out the employee permits over several years as additional parking supplies and TDM programs come on line How many employee permits should be made available? City of Palo Alto Page 13 Permit Cost & Enforcement. Staff is envisioning citywide RPP programs as cost-neutral. That means that permit costs would be set to ensure that revenues from permits and citations equal the expenditures of enforcement and management and that no General Fund subsidy would be required to support the program. Therefore the cost of permits would be directly related to the level of enforcement desired. Staff is in the process of assessing potential permit costs and enforcement alternatives, but is not ready to report any details at this time. It is clear, however, that the more permits that are issued, the lower the costs per permit can be. Also, revenue from enforcement is likely to decline over time, as people get used to the new restrictions and fewer violations occur. Resource Impact As indicated above, staff’s recommendation is to strive for a citywide RPP program this is ultimately cost-neutral, similar to the majority of other jurisdictions consulted. Ideally, revenue from RPP district permits and citations would be incorporated into a single RPP revenue fund to cover the cost of establishing and maintaining RPP districts throughout the City, including the pre-existing RPP program at College Terrace and the Crescent Park overnight parking ban. Achieving and maintaining a balance between costs and expenditures will be challenging, and will require dialog with the affected departments and residents as individual RPP districts are considered for addition to the City’s exiting districts. The process of working with residents to develop an RPP District would also require staff time in multiple departments. Currently it is expected that the Parking Manager in the Department of Planning and Community Environment could spend 20-25% of time on RPP-related issues. Policy Implications The implementation of an RPP Framework for future RPP Districts aligns with multiple directives from Council related to parking management and transportation, as well as the Council’s 2013 top priority to maintain the livability of Palo Alto’s Downtown districts. As transportation accounts for nearly 30% of all greenhouse gas emissions, reducing single- occupancy vehicle traffic is a major component of complying with AB 32: Global Warming Relationship between permit costs and enforcement Citywide cost- recovery goal City of Palo Alto Page 14 Solutions Act. As part of an overall Transportation Demand Management program, an RPP program would further this policy objective. Environmental Review Establishment of an RPP Framework and subsequent adoption of parking restrictions in selected neighborhoods are expected to be exempt from review under CEQA Guidelines Section 15301 (Class One, Existing Facilities) and Section 15061(b)(3), the general rule that CEQA only applies to projects with the potential for causing a significant effect on the environment. The suggested program and its implementation would essentially manage existing parking supplies and would not result in noticeable physical changes to the environment. Also, the absence or presence of parking itself is no longer a physical environmental effect warranting review under CEQA, as demonstrated by changes to the Initial Study Checklist (CEQA Guidelines Appendix G) adopted in 2010. Attachments:  Attachment A: Ongoing Parking and Transportation Demand Management Initiatives (PDF)  Attachment B: Data Sets (PDF)  Attachment C: Map of Current No Overnight Parking - Crescent Park (PDF)  Attachment D: Residential Preferential Permit (RPP) Program Comparisons (PDF)  Attachment E: Public Comments (PDF)   Palo Alto Ongoing Parking and Transportation Demand Management Initiatives  The City of Palo Alto is pursuing implementation of Downtown parking solutions and Transportation  Demand Management strategies to help maintain the City’s quality of life by increasing the availability  and viability of alternative modes of transportation and increasing parking supply.   The following summarizes these ongoing initiatives, including their current status and next steps.   Residential Preferential Permit (RPP)  Significant interest from residents initiated investigation of a  Downtown RPP district earlier this year.  This investigation in  turn spurred a policy discussion regarding a citywide  framework, so that all neighborhoods could have the option  of applying to become an RPP District. This discussion will be  held at the December 16th, 2013 Council meeting.  Alternative Transit Incentives (Leading By Example)  Staff is investigating options to provide City employees  with GoPasses or increased subsidies in exchange for  forgoing a parking permit downtown.    Car Share Opportunities  City staff has engaged with representatives from City  CarShare and Zipcar to discuss the potential of  dedicating 20‐30 spots in downtown lots and garages  to these vehicles. An RFP is in development for a  Carshare entity to enter into an agreement with the  City to provide these services for Downtown.     Satellite Parking Lots + the Palo Alto Shuttle Program  City Staff are investigating whether it would be  possible to use parking lots located outside of the  downtown core to provide additional places for  commuters to park. Embarcadero road has been  suggested as one location and there may be other  locations in East Palo Alto.  Identification and use of a satellite parking lot would require expansion of the Palo Alto Shuttle Program.  There are currently two shuttles which are free to the public, and the City is investigating the costs  associated with expansion of this service through an RFP process.  An RFP for expanded shuttle service  will be released in January and options for Council consideration  presented in February.  Bike Infrastructure and Bike Share   Palo Alto has a variety of efforts underway to promote a bike‐ friendly community consistent with the adopted Bicycle and  Pedestrian Transportation Plan. Improvement of existing and  new bike boulevards (thoroughfares which are developed to  promote ease of bike use throughout the city)  1. Multiple events to promote bike awareness  2. Bay Area Bike Share locations  3. Bike Lockers for local use  4. Local adoption of Calgreen ordinance which  requires bike parking for all commercial developments  which expect visitors  Rideshare Apps  Rideshare applications accessible by mobile phone allow  the users to find and schedule rideshares. The City is  investigating the use of these applications in Downtown.  Safe Routes to School  Safe Routes to School is an international movement to  make it safe, convenient, and fun for children to bicycle  and walk to school. In Palo Alto, City Staff work to make  sure that the program embodies the “5 ‘e’s”: education,  encouragement, engineering, enforcement, and evaluation. Parents are also exposed to alternate forms  of transportation through the program.   Public‐Private Partnerships:  Based on direction from City Council, the City is investigating the possibility  of creating public/private partnerships to develop additional parking on existing City lots. The parking  would be developed in conjunction with other uses by private developers on City property. Staff is  currently developing an RFP for policy input and consideration in 2014.  New Parking Garages: City Staff has studied the physical feasibility of constructing public parking  garages on five existing city‐owned parking lots and the “urban lane” transit mall. In 2014, staff will  return to the City Council for a discussion of priorities and possible funding mechanisms for one or more  garages.  Attendant Parking: The City has a live RFP which is expected to be awarded in early 2014 to assign at  least one City‐owned garage (R) with attendants. If the program is successful the City may consider  implementing this strategy at other garages.  Parking Permit Management:  The City actively monitors garages to confirm that the number of permits  issued is maximized. The most recent permit release was in November of 2013. An online permit  management system is now complete and the online interface for persons to register for permit use will  be released shortly. The permit management system will also be used to sell permits to residents once  RPP Districts are created.  Parking Permit Reform:  The City is exploring restructuring the process by which permits are released.   Permits are currently sold to individuals and limited to persons working in the Downtown core.  Staff is  exploring the concept of creating a Business Account that allows business to directly pay for permits and  transfer the permits to other employees within their organization when the registered permit user is not  on‐site.  This allows permit registration to remain with an individual, a critical element in the public  bond financing structure, but provides flexibility to businesses which take on the responsibility of  purchasing those permits for their employees.  This helps increase the utilization of parking structures  and address business interest in being able to make permits to new employees.  Revenue and Access  controls are a key element in being able to improve the flexibility of permit use.  Technology Enhancements for Garages: The City is developing an RFP for revenue and access controls  and parking guidance systems to more actively monitor the occupancy of the garages and provide the  infrastructure to direct drivers to available parking spaces.   Zoning Exemptions: Several parking exemptions were removed at October 21 Council meeting.   Paid Parking: Council has also requested an analysis of paid parking in Downtown.  The implementation  of revenue and access gate controls is the first step towards introducing opportunities for paid and  parking pricing structures.    ATTACHMENT D: RESIDENTIAL PREFERENTIAL PERMIT (RPP) PROGRAM COMPARISONS   Santa Monica Santa Cruz Berkeley San Francisco San Jose Los Gatos San Mateo  Overview Five (5) zones.  Permit holders  may park in  that zone or up  to two blocks  away from it.  Six (6) zones.  Employee  Commuters  may purchase  a permit which  is for a  designated  block face.  Fourteen (14)  zones, some of  which are also  enforced on  Saturdays.     Twenty‐Eight (28)  zones; parking  permits are not  transferable across  zones.    Sixteen (16)  zones. Business  permits are  available in half  of them.    Six (6) zones  and one (1)  commercial  zone.     Thirteen (13)  zones and no  commercial  zones.    Annual Rates  for Resident  permits  $20 for 1, $25  for the second,  $40 for the  third and $60  for the fourth    $25 per permit    $45 per permit    $109 per permit    $33 per permit    $39 per permit  and $34  replacement    $0 per permit    Annual Rates  for Employee  Commuter or  Business  Permits  Not Available  for Purchase.    $240 per  permit ($60  quarterly)    $125 per  permit    $109 per permit    $33 per permit    $230 per  permit    N/A ‐ Separate  permit  program for  parking at  downtown  meters.    Visitor rates  and/or Guest  Passes  Free one‐day  guest passes  up to 25 per  day, 300 per  year. Permits  are  transferrable  between  residents and  their guests.      $25 per  permit, and up  to thirty (30)  day‐use  passes.  $2.25 per day,  $23.00 per 14  days  One‐Day Flex: $16,  Two (2) weeks: $37,  Four (4) weeks:  $54, Six (6) weeks:  $72, Eight (8)  weeks: $93  Guest permits  free depending  on the zone.  Free single use  permits. There  are 3‐day passes  with a max of  50 at one time.  Special Event  permits are  available for  $10.00. Each  permit  purchase  includes two  (2)  complimentary  guest passes.  Day use passes  are available  for free.  ATTACHMENT D: RESIDENTIAL PREFERENTIAL PERMIT (RPP) PROGRAM COMPARISONS   Santa Monica Santa Cruz Berkeley San Francisco San Jose Los Gatos San Mateo  Number of  Permits  Allowed  One (1) per  residential  vehicle, and up  to three  permits per  year.  Up to three (3)  annual  residential  permits and  two (2) annual  guest permits  per household.  One (1) per  motor vehicle.  Local business  permits will  only be issued  as to not be  concentrated  on a specific  block front in  any given  residential  permit parking  area.  A maximum of four  (4) annual  residential permits  may be issued to a  single address.  One (1) for non‐ resident  business owners  in most zones,  but up to three  (3) in others.  Up to four (4)  vehicles per  address.   Parking  permits can be  purchased for  any vehicle  which is  registered to a  residential  address in the  zone.  Conditions  Under Which  Employee ‐  Commuter  (Business)  Permits May  be Sold  Not available  for purchase.  Only sold if at  least 60% of  the block is  vacant, and  sold specific to  a block.  Only  two (2)  business  permits are  allowed per  block.  Only sold if City  Council finds  that residents  have reached a  general  consensus to  allow for the  sale of local  business  permits in the  area. The  business must  be located  within  Merchant  Permit Range.  One (1) permit  is issued per  business for the  Block Front.  Commercial  property owners  operating a  business on a RPP  zoned block may  obtain one (1)  parking permit for a  personal vehicle  per postal address.       Up to three (3)  additional permits  may be purchased  for delivery vehicles  with commercial  license plates.   These vehicles must  be registered to the  business address.  An assessment  is made prior to  the issuance of  any business  permits.     The maximum  number of  permits issued  is the lesser of  the number of  employees  listed on the  Business Tax  Certificate or  the employee  directory/listing. Only sold  within the one  Business  District.  Not available  for purchase in  an RPP district. ATTACHMENT D: RESIDENTIAL PREFERENTIAL PERMIT (RPP) PROGRAM COMPARISONS   Santa Monica Santa Cruz Berkeley San Francisco San Jose Los Gatos San Mateo  How does a  residential  neighborhood  apply for an  RPP District?  2/3 of the  residents of at  least 50% of  the dwelling  units must sign  a petition to  get the City  staff to  consider the  zone. If City  Staff  recommends it  to Council  based on data  collection,  Council will  consider.  Based on  petition staff  will evaluate  the City’s  ability to serve  the area with  parking  management  services.  DPW  will have the  authority to  implement the  program or  bring it to the  city  Transportation  Commission  for review.   Residents can  petition or the  City Council can  initiate  designation for  an RPP zone.  Residents have  to consult with  City Staff prior  to obtaining  signatures. If  City Council  initiates, they  have to send  the notice of  intent to all  address within  the area.  A petition must be  submitted to the  SFMTA (one  signature per  household). To  create a new  Residential Permit  Parking Area, a  petition signed by  at least 250  households (one  signature per  household) in the  proposed area  must be submitted  to the SFMTA.   Not an option at  this time. San  Jose states that  they don't have  the resources to  expand or  create new  zones.  Residents  create a  petition which  is reviewed by  the  Transportation  and Parking  Commission.  The  Commission  will confirm  whether a  District is  warranted, and  Council reviews  after a one‐ year trial  period.  Residents fill  out a  questionnaire  and a petition  which asks for  a description  of the parking  challenge and  gather  community  support via  survey, HOA  letter or  community  meetings.  Criteria for  designation of  an RPP Zone  Nonresidential  vehicles  regularly  interfere with  residential  ability to park  cars and  regularly are  the source of  environmental  and/or traffic  hazards.  Not identified.    At least 80% of  the block fronts  with unlimited  on‐street  parking must  be residentially  zoned.    75% occupancy  any two one‐ hour periods  between 10:00  a.m. and 4:00  p.m.     The proposed  block(s) must be  contiguous to each  other and must  contain a minimum  of one mile of  street frontage.    80% occupancy and  50% non‐resident  vehicles.     N/A    No specific  percentage  designated. Los  Gatos looks for  marked  intrusion at  certain times  of the day.    A parking  impact  generator  must exist.  Parking  occupancy  studies will be  done to show  the vacancies  on the street.  <60% will not  be considered.    ATTACHMENT D: RESIDENTIAL PREFERENTIAL PERMIT (RPP) PROGRAM COMPARISONS   Santa Monica Santa Cruz Berkeley San Francisco San Jose Los Gatos San Mateo  Response Rate  to Petition   67%    67%    51%    51%    N/A at this time    51%    67%    Required for  Application   Proof of  residency,  including a  utility bill or  bank  statement  showing name  and address, as  well as a  California  vehicle  registration  reflecting the  current  address.    Proof of  residency,  vehicle  registration,  current utility  bill or typed  rental contract   showing the  address in the  RPP.    Proof of  residency;  vehicle  registration for  the area in  which the  person is  applying.    Current DMV  vehicle registration  and second proof  of residency at the  permit address.  Business permits  must show proof of  business  license/registration.    Proof of  residency,  Completed  application, and  valid Photo ID.     Proof of  residency,  completed  application  form in the  residents’  name and  address,  current DMV  vehicle  registration for  each vehicle.  Proof of  residency,  completed  application  form in the  residents’  name and  address,  current DMV  vehicle  registration  for each  vehicle.  General Fund  Supported?  The money  from permit  fees goes into  the general  fund; however,  these funds  are not  earmarked  specifically to  pay the  operating  expenses of  the program.  All money  from permits  and citations  goes into the  general fund.  Program funds  itself and is not  general fund  supported.  Program funds  itself and is not  general fund  supported.  Program funds  itself and is not  general fund  supported,  although if  inadequate  revenue is  received from  citations, the  general fund  would support.  Program has  been self‐ sustaining for 7  years.  Program funds  itself and is not  general fund  supported.  The money  from permit  fees goes into  the general  fund;  however,  these funds  are not  earmarked  specifically to  pay the  operating  expenses of  the program.    NEW PREFERENTIAL PARKING PERMIT RATES EFFECTIVE OCTOBER 1, 2013 The City of Santa Monica adopted new Preferential Parking Permit rates that will be in effect for all Resident and Visitor permits with an effective date that begins on or after October 1, 2013. This will be the first change to Preferential Parking Permit rates since 1984. The new rate structure also reflects the City’s policies to better manage parking through pricing by keeping the rates of the first two permits low while significantly increasing the rates for three or more permits. Resident Permits – Annual Rates Effective Oct 1, 2013 First $20 Second $25 Third $40 Fourth or more $60 Resident Permits Issued 6 Months or Less from Expiration First $10 Second $15 Third $25 Fourth or more $35 Visitor Permits – Annual Each (maximum of 2) $30 Visitor Permits Issued 6 Months or Less from Expiration Each (maximum of 2) $15 Temporary Permits 30-Day Permit (new resident) Free One-Day Guest, self-print Free One-Day Guest, pick up from office $2 each Stolen/Lost Permits 1st stolen, with Police report Free 2nd stolen, with Police report 50% of cost 3rd stolen, with Police report, or any replacement w/o Police report (Lost permit) Full cost Commuter Parking Permit Guidelines PARKING OFFICE 124 Locust Street, P.O.Box 1870, Santa Cruz, Ca. 95061 (831) 420-6097 Permit Location: _________ block of _________________________ odd or even side Your Commuter Permit allows you to park on a designated block face in a residential program area. The permit exempts your vehicle from the daytime 2-hour parking restrictions, but does not allow you to park overnight. Commuter Permits are sold to employees and business owners that work adjacent to the Program Area. 1. Commuter permits are a calendar-quarter permit. Sales are prorated on the 1st and 15th for the remaining portion of the quarter. They can be purchased for the current calendar quarter, or up to all quarters in the current calendar year. The Commuter Permits are not refundable, so be sure about the purchase of quarters beyond the current one. 2. Your permit is issued for one side of the street on a specific block, and is not valid at any other location. After parking, hang the permit on the rearview mirror with the sticker side facing out. Be sure to park properly and follow all other vehicle regulations. 3. The permit you have for this location can be renewed through the last City workday in the purchased quarter. If you purchase the upcoming quarter before the permit expires, you can continue to park at your current permit location. On the first day of the new quarter, any permits not renewed will be added to the “available” list and can be purchased on a first come first served basis. 4. To renew your permit, bring the permit or permit number/location to our office during our business hours of Mon-Fri, 10am to 5pm, with your payment. We will provide you with a sticker for the upcoming quarter to validate your permit. 5. If you receive a citation because the permit was not displayed when parked at the permit location, come to our office with the citation and your permit before the due date of the citation. You may also mail a photocopy of your permit to us with the citation. If handled before the due date, we will void up to 5 such citations annually. 6. Lost or stolen permits will be replaced once for a $10 fee. After that, the cost for a replacement permit is the standard fee to purchase a permit for the quarter. Please lock your vehicle and keep the permit secure. Subscribe to this page to receive e-mail notification when new information is posted. Please Note: All vehicles must be registered to a valid residential address within the City of Berkeley in order to receive the Residential Parking Permit (RPP). Also, please be aware that RPPs are not transferable between vehicles, nor are they refundable. Please remember the Customer Service Counter located at 1947 Center St, is open Monday through Thursday between the hours of 8:30 a.m. - 4:00 p.m. Please contact the City via email (customerservice@CityofBerkeley.info) or by telephone (510-981-CITY or "311" from any landline within Berkeley), Monday through Friday between the hours of 8:00 a.m. - 5:00 p.m., if you have questions. Residential Preferential Parking (RPP) Program There are 14 Residential Parking Permit (RPP) areas in the City of Berkeley. These RPP areas are limited to two (2) hour parking unless a residential parking permit or a visitor permit is properly displayed on/in the vehicle. Annual permits are to be affixed to the left rear bumper of the vehicle and visitor permits must be displayed on the left hand side of the driver's dashboard. These neighborhood Residential Parking Permit areas are enforced Monday through Friday and some streets in area E are enforced n Saturdays. Areas A, B, D, and K are enforced on Saturdays. If you see signs in your neighborhood displaying any letter of A to N, you live in a Residential Parking Permit area and will need a residential parking permit to park longer than two hours on the street. These zones are marked by signs that indicate the neighborhood parking permit areas by letter and indicate the days and times enforced. These zones are marked by signs that indicate the neighborhood parking permit areas by letter and indicate the days and times enforced. Vehicles without a Residential Parking Permit or visitor permit may park for a total of two (2) hours per block face, defined as both sides of the street between intersecting cross streets. There are two types of RPP, "Permanent" and "Visitor." For more information about eligibility and registration for an RPP, contact the Customer Service Center at (510) 981- 7200. Residential Parking Permits do not allow parking at parking meters, pay stations, loading zones, no parking anytime, 72hr parking, on Street Sweeping days or any other parking restrictions (i.e. at or near fire hydrants, driveways, or crosswalks, etc.). Some RPP may have limited 2 hour parking within the RPP zone and signs indicating this restriction are posted without the designated RPP area letter designation. RPP permitted vehicles are subject to the two hour restriction and will be cited if the vehicle is not moved. Please note: Residential Preferential Parking (RPP) has been modified on selected blocks near Berkeley's Trader Joe's store at Berkeley Way/Martin Luther King Jr. Way to limit Page 1 of 5RPP: Residential Preferential Parking - City of Berkeley, CA 12/6/2013http://www.ci.berkeley.ca.us/ContentPrint.aspx?id=6272 parking on one side of the street to designated RPP Area permit holders, while parking on the other side remains RPP and 2-hour visitor parking. The blocks affected are as follows: • Berkeley Way: 1700, 1800 and 1900 blocks (McGee Avenue to Milvia Street) • Addison Street: 1800 block (Grant Street to Martin Luther King Jr. Way) • Bonita Street: 1900 block (Hearst Avenue to University Avenue) • Grant Street: 1900 and 2000 blocks (Hearst Avenue to Addison Street) Information about parking permits, locations and restrictions: •Annual Parking Permit Year •Parking Permit Fees •Annual Renewal Deadline & Enforcement Date •Visitor Permits •Annual Residential Permits •Merchant Permits •In-Home Care Permits •Days/Hours of Enforcement •Contact Information Links to additional information: •Neighborhood RPP Designation •RPP Zone map •RPP Ordinance (BMC Chapter 14.72)* *This link will take you to the City’s BMC site where you can browse the BMC in .pdf format, or search the BMC using Records Online. Search tips are available from the BMC site. Annual Parking Permit Year The annual parking permit year is from July 1st to June 30th. Parking Permit Fees • Annual Residential Permit: $45.00 • 1-Day Visitor Permit: $2.25 • 14-Day Visitor Permit: $23.00 • Annual Merchant Permit: $125.00 • Annual In-Home Care Permit: $45.00 • Annual Community Serving Facility Permit: $56.00 • North Berkeley Senior Center Permit: $1 Page 2 of 5RPP: Residential Preferential Parking - City of Berkeley, CA 12/6/2013http://www.ci.berkeley.ca.us/ContentPrint.aspx?id=6272 Annual Renewal Deadline & Enforcement Date You may renew your RPP permit in person or by mail. If you are renewing through the mail, please send your completed application before May 31st to receive your new permits for the next Parking Permit Year. Enforcement of expired permits begins on July 1st. Back to Top Visitor Permits Visitor Permits for guest use may be purchased by residents when renewing their annual RPP permit. If purchasing Visitor Permits at a later time, a picture identification, along with one of the following documents that includes the current address of the resident, must be provided (billing statements must be dated within the last 30 days): • California Drivers License (DMV) • Signed lease agreement (within a year) • Current bank statement • Current PG&E billing statement • Current telephone bill (not cellular) • Current major credit card billing statement • AT&T cablevision bill • EBMUD water bill • Vehicle registration (DMV) • City Bills (Refuse bills, Fire Alarm bills, Fire Inspections bills, etc) The vehicle for which the visitor permit is being obtained must not have any outstanding Berkeley parking violations older than 21 days. Pick up Visitor Parking Permits at the Customer Service Center or call (510) 981-7200 for further information. 1-Day Visitor Permits - $2.25 • Residents may purchase up to 20 1-Day Visitor Permits in a permit year. • 1-Day Visitor Permits may be purchased by mail or in person, and can be purchased in advance. • All 1-Day permits will expire on June 30th of the current permit year. 14-Day Visitor Permits - $23.00 • Residents may purchase 3 14-Day Visitor Permits in a permit year. • Please note that 14-Day Visitor Permits are valid for 14 consecutive calendar days. • 14-Day Visitor Permits may be purchased up to 3 weeks in advance of the initial usage date. The resident must provide the intended usage dates and the license plate number of the vehicle that will use the 14-Day Permit. Page 3 of 5RPP: Residential Preferential Parking - City of Berkeley, CA 12/6/2013http://www.ci.berkeley.ca.us/ContentPrint.aspx?id=6272 Back to Top Annual RPP Permits - $45.00 In order to qualify for an annual Residential Preferential Parking Permit, residents must present photo identification and the vehicle registration displaying their Berkeley address. Individuals subletting are not eligible for annual Residential Parking Permit. The vehicle for which the permit is being obtained must: • Be registered in California, at the Berkeley address for which the permit is being obtained; and • Must not have any outstanding Berkeley parking violations older than 21 days. If the vehicle is registered to the Berkeley address, but is not registered in the name of the Berkeley resident, the resident must provide a copy of the registered owner’s valid picture ID, and a signed letter stating that the resident has the right to use the vehicle. Pick up Annual Residential Preferential Parking Permits at the Customer Service Center or call (510) 981-7200 for further information. Back to Top Merchant Parking Permits - $125.00 • Certain business addresses designated by Public Works Transportation are eligible for Merchant Permits. In-Home Care Permits - $45.00 • Residents or family members who live in any of the City's RPP-designated areas who have disabilities or medical conditions requiring In-home care services, may be eligible for In-Home Care Permits. Back to Top Days/Hours of Enforcement Hours of enforcement are 8:00am to 7:00pm except Sundays, holidays and during posted street sweeping days. Area A Mon-Sat Area H Mon-Fri Area B Mon-Sat Area I Mon-Fri Page 4 of 5RPP: Residential Preferential Parking - City of Berkeley, CA 12/6/2013http://www.ci.berkeley.ca.us/ContentPrint.aspx?id=6272 Area C Mon-Fri Area J Mon-Fri Area D Mon-Sat Area K Mon-Sat Area E Mon-Fri/Sat*Area L Mon-Fri Area F Mon-Fri Area M Mon-Fri Area G Mon-Fri Area N Mon-Fri *Some areas within RPP Area E are enforced Monday through Friday; others are enforced Monday through Saturday. Please observe posted enforcement signs. For additional information or questions, contact the Customer Service Center or call (510) 981-7200. Back to Top Page 5 of 5RPP: Residential Preferential Parking - City of Berkeley, CA 12/6/2013http://www.ci.berkeley.ca.us/ContentPrint.aspx?id=6272 Annual Permit for Residents ANNUAL PERMIT INFORMATION Annual Fee:$109 Expires within 6 months:$54 If you live in a residential parking permit area, a residential permit will exempt you from the posted time limit. All other parking regulations apply. Vehicles must be moved every 72 hours or they will be subject to towing. APPLY FOR A PERMIT Applications may be submitted in person or by mail to the SFMTA Customer Service Center at 11 South Van Ness Avenue, open Monday-Friday from 8:00 a.m. to 5:00 p.m. Please ensure you have the proper documentation prior to submitting your application by mail or appearing at the SFMTA Customer Service Center. No parking permits will be issued to any vehicle with delinquent parking citations or an expired vehicle registration. Application Requirements: Download and complete Application See below for permit expiration dates. If permit area expires in less than six months, the fee is prorated to 50% of annual rate. Proof of residency: Copy of PG&E or cable bill (cell phone bill not accepted), current vehicle insurance policy, bank statement or pre-printed check with resident's name and address, or rental/lease agreement. California Vehicle registration:  Registration must be at an address within RPP area. If you have recently moved, you must update your registration information in-person at the Page 1 of 3Annual Permit for Residents | SFMTA 12/6/2013http://www.sfmta.com/services/permits-citations/parking-permits/residential-area-permits/r... If you are a full-time student or active military personnel and your vehicle is registered to another address, please provide proof of active military assignment or certification from the registrar’s office at a higher education institution of full-time student enrollment (student ID is not sufficient).  Proof of residency is also required. Residents who are assigned a company/business vehicle for exclusive use must provide a copy of the current California vehicle registration in the name of the business or vehicle leasing company and an employment/vehicle assignment verification letter from the company the vehicle is registered to, in addition to proof of residency. PERMIT EXPIRATION DATES A 2/28 D 1/31 H 1/31 M 10/31 S 4/31 X 8/31 B 8/31 DD 7/31 I 11/30 N 3/31 T 8/31 Y 3/31 BB 1/31 E 9/30 J 11/30 O 3/31 U 9/30 Z 5/31 C 7/31 F 9/30 K 5/31 P 3/31 V 1/31 CC 8/31 G 6/30 L 1/31 R 8/31 W 10/31 LIMIT FOUR (4) PERMITS PER ADDRESS A maximum of four active annual residential permits may be issued to a single address.In special circumstances, you may request a waiver to this limit. To request a waiver, send a written request to: Department of Motor Vehicles.  Address changes by mail may take several weeks to update and RPP permits cannot be issued unless this information is updated in the DMV system. If you are applying for a permit for a new vehicle and do not have license plates yet, you will receive a 90-day temporary permit which will be converted to a standard permit once the license plates have been received. Page 2 of 3Annual Permit for Residents | SFMTA 12/6/2013http://www.sfmta.com/services/permits-citations/parking-permits/residential-area-permits/r... SFMTA Customer Service Center ATTN: RPP WAIVER REQUEST 11 South Van Ness Avenue San Francisco, CA 94103 Please include all relevant vehicle information and the reason you are requesting additional permits in your letter, and allow 10 business days for the SFMTA to review your request. MORE IN THIS SECTION Parking Permits Pay a Citation Contest a Citation Camera Enforcement Booting & Towing SEE ALSO Parking around San Francisco Parking Projects Page 3 of 3Annual Permit for Residents | SFMTA 12/6/2013http://www.sfmta.com/services/permits-citations/parking-permits/residential-area-permits/r... Business BUSINESS OWNERS & DELIVERY VEHICLES Annual:$109 Expires within 6 months:$54 Commercial property owners operating a business on a RPP zoned block may obtain one parking permit for a personal vehicle per postal address.  The property owner may designate the personal vehicle permit for transfer to a bona fide employee. In addition, up to three additional permits may be purchased for delivery vehicles with commercial license plates.  These vehicles must be registered to the business address.   Application Requirements: WHERE TO APPLY Bring your application and required documents in person, or mail to: 1.Completed application 2. Copy of current property title or commercial lease 3. Valid business registration certificate or tax exempt certificate for non-profit organizations 4. Valid vehicle registration (commercial vehicles must be registered to property address) Page 1 of 2Business | SFMTA 12/6/2013http://www.sfmta.com/services/permits-citations/parking-permits/residential-area-permits/r... SFMTA Customer Service Center ATTN: RPP BUSINESS PERMIT 11 South Van Ness Avenue San Francisco, CA 94103-1226 Open Monday-Friday from 8:00 a.m. to 5:00 p.m. MORE IN THIS SECTION Parking Permits Pay a Citation Contest a Citation Camera Enforcement Booting & Towing SEE ALSO Parking around San Francisco Parking Projects Page 2 of 2Business | SFMTA 12/6/2013http://www.sfmta.com/services/permits-citations/parking-permits/residential-area-permits/r... Request Permit Area Expansion Learn about the petition and review process for bringing parking permits to your neighborhood.  Permit Area Map PDF EXPAND AN EXISTING PERMIT AREA Page 1 of 3Request Permit Area Expansion | SFMTA 12/6/2013http://www.sfmta.com/services/permits-citations/parking-permits/residential-area-permits/r... To add a street block or address to an existing Residential Permit Area a petition signed by more than fifty percent of the households on each proposed block must be submitted to the SFMTA (one signature per household). Blank petition forms can be obtained here: Petitions should be mailed to: SFMTA Sustainable Streets Division Transportation Engineering 1 South Van Ness Avenue, 7th Floor San Francisco, CA 94103 Requirements ESTABLISH A NEW PERMIT AREA To create a new Residential Permit Parking Area, a petition signed by at least 250 households (one signature per household) in the proposed area must be submitted to the SFMTA. See "Expand an Existing Permit Area" for petition forms.  Requirements Blank petition form-English PDF Blank petition form -Spanish PDF The proposed block(s) must be contiguous to an existing residential permit parking area. At least eighty percent of the legal on-street parking spaces within the proposed area are occupied during the day. Residents on a metered block may petition to have their addresses be included as part of a residential permit parking area; however, a petition for an unmetered block must also be submitted at the same time. Existing meters will not be removed. The proposed block(s) must be contiguous to each other and must contain a minimum of one mile of street frontage. At least fifty percent of the vehicles parked on the street in the proposed area must be non- resident vehicles. Page 2 of 3Request Permit Area Expansion | SFMTA 12/6/2013http://www.sfmta.com/services/permits-citations/parking-permits/residential-area-permits/r... Review Process If requests are approved, the legislation and sign installation process takes approximately three months from submittal of valid petitions for area extensions and six months from submittal of valid petitions for new areas. The process is as follows: QUESTIONS? Call 311 or 415.701.2311 (if calling outside of San Francisco) MORE IN THIS SECTION Parking Permits Pay a Citation Contest a Citation Camera Enforcement Booting & Towing SEE ALSO Parking around San Francisco Parking Projects At least eighty percent of the legal on-street parking spaces within the proposed area are occupied during the day. 1. Review by SFMTA staff 2. Field study conducted 3. Engineering Public Hearing 4. Review by the SFMTA Board of Directors 5. Sign installation and permit issuance Page 3 of 3Request Permit Area Expansion | SFMTA 12/6/2013http://www.sfmta.com/services/permits-citations/parking-permits/residential-area-permits/r... RESIDENTIAL PERMIT PARKING APPLICATION 200 East Santa Clara Street San José, California 95113 (408) 535-3850 Fax (408) 292-6090 E-mail Address: DOTPermits@sanjoseca.gov PLEASE READ THE POLICIES AND INSTRUCTIONS ON THE BACK OF THIS PAGE AND SIGN BELOW. Required Documentation: Select Applicable Permit Parking Zone: Completed application Cahill Park Approved by: Valid Photo Identification Century/Winchester Transaction Date: Proof of Residency* Civic Center Receipt #: Current DMV Registration Non-Resident Owner** College Park Amount: Santana Status: Sherman Oaks University $33.00 each 1 2 $ Signature & Date Signature & Date revised 11/12 Form RS-01 I have received, read and understood the attached written instructions. I certify under penalty of perjury that the statements contained herein are true and hereby agree to comply with all the terms of the Residential Permit Parking Program. G G Total Amount All residential parking permits are non-transferable. Selling, transferring, duplicating, and/or unauthorized distribution of permits is strictly prohibited. R Number of permits (Official Use Only): GUEST PLACARD PERMITS (Circle number of permits requested) Permit # $33.00 each (Non-Refundable)(Official Use) R R R For Official Use Only PERMIT & REPLACEMENT FEES ARE NON-REFUNDABLE Permit # (Official Use)Owner Vehicle Year & Make Vehicle License # RESIDENTIAL STICKER PERMITS (copy of current DMV registration required for each permit) Horace Mann Delmas Park S.U.N Last Name First Name Middle Last Name First Name Middle *Address (Must be in Residential Permit Parking Area)Unit Zip Code **Mailing Address (if different from above & Non-Resident owner)Unit Zip Code Phone (H)Phone (W)Email Address (optional): INSTRUCTIONS FOR RESIDENTIAL PERMIT PARKING For further information contact: Online at: http://www.sanjoseca.gov/transportation/permits_parking.htm Department of Transportation, Residential Parking Permits Office 200 E. Santa Clara Street, San Jose, CA 95113 1. To apply for permits, mail or bring in the documents to the address listed below. Permits are issued from 8:00 A.M. to 5:00 P.M., Monday through Friday, except on legal holidays. Permit applications submitted after 5:00 P.M. will not be processed until the following business day. Applications may take up to 10 business days to process if a field investigation is required. To apply or renew, you must have all of the following requirements or the application will not be accepted: • Completed application • Valid Photo Identification • Proof of residency within the designated permit parking area (*must be issued within the last 90 days). Only the following documents will be accepted: tenant verification form, rental contract (except SUN and Horace Mann), home telephone or utility bill, current vehicle registration, or current property tax bill • Current DMV registration for each vehicle (if applying for a residential permit) • Payment in cash, check, money order, Visa, or MasterCard is accepted 2. All applicants must be a resident or non-resident owner in the designated permit parking area. Businesses must use a separate business permit parking application form. The vehicle(s) must be currently registered to an occupant of the residence. Residents may obtain one (1) residential sticker permit per registered vehicle, except: • Cahill Park is not eligible to receive the residential sticker permits • Horace Mann and S.U.N. may only obtain three (3) residential sticker permits 3. A maximum of two (2) guest permit hangers is allowed per residential address (except Cahill Park). Cahill Park is allowed one (1) guest permit hanger per residential address. Permits are issued on a first-come first-serve basis. 5. Permit expiration dates: Permits expire on these dates regardless of when they are issued during the cycle. AREA EXPIRATION DATES AREA EXPIRATION DATES Civic Center October 31st of every EVEN year College Park August 31st of every EVEN year University August 31st of every ODD year Santana November 30th of every ODD year Delmas Park March 31st of every ODD year Cahill Park January 31st of every ODD year Sherman Oaks May 31st of every EVEN year 6. If a permit is lost or stolen, there is a non-refundable replacement fee for each permit reported. The replacement fee will be waived when a copy of a police report and case number is provided. 7. If a vehicle is sold or the applicant has moved, the residential parking permit must be removed and our office notified immediately. If a new vehicle is purchased, the old vehicle permit may be exchanged for a new one. Note: Residential permit cannot be issued for new vehicle until a DMV registration with license plate is provided. Temporary permit for a new vehicle is available upon request. 8. The residential parking permit must be applied to the inside bottom left corner of the rear window and be visible to enforcement officers. For vehicles with tinted rear windows or obstructed by a camper shell, permit must be applied to the inside bottom left corner of the front windshield (driver's side). The guest permit hanger must be displayed facing outward on the rearview mirror of the vehicle. (For motorcycles: the residential permit must be applied to the front left fork of the motorcycle). 9. All permits must be prominently and properly displayed to be valid. Parking citations will be issued to any vehicle parking in a permit area without appropriate permit. The current minimum citation for a permit parking is set forth in the Schedule of Parking Penalties. 10. Vehicles displaying residential parking permits are not exempt from complying with parking restrictions in other designated parking spaces, such as red zones, metered spaces, and other time restricted zones. 11. All residential parking permits are non-transferable. Selling, transferring, duplicating, and/or unauthorized distribution of permits is strictly prohibited. 12. The Director may revoke all permits and/or deny application for issuance or renewals of permits if individuals are found to supply incorrect information, violate any conditions placed upon the parking permit and/or fail to comply with any provisions of San Jose Municipal Code Chapter 11.48. November 30th of every ODD year Century/Winchester S.U.N. Horace Mann July 31st of every year September 30th of every year 4. **Non-resident property owners may obtain only one (1) guest permit hanger per zone, upon proof of ownership of property (current property tax bill) within a designated permit parking area. In addition, non-resident property owners must provide proof of residency (see above proof of residency requirements) at an address separate from the owned property. City of San Mateo Residential Parking Permit Program Policy and Procedures Adopted by San Mateo City Council January 18, 2005 Revised August 19, 2013 Prepared by: Gary Heap, P.E. Senior Engineer Residential Parking Permit Policy and Procedures August 19, 2013 Q:\pw\PWENG\Traffic\Policy & Procedures\Residential Parking Permit P&P\RPPP Mod - Adopted 8-19-13.doc 2 Residential Parking Permit Program CONTENTS PURPOSE Page 2 PERMITS Page 2 POLICIES Page 6 REQUIREMENTS Page 8 PROCEDURES Page 9 FREQUENTLY ASKED QUESTIONS Page 12 DRAWBACKS WITH ‘RESIDENTIAL ONLY’ PARKING Page 14 SAMPLE RPPP REQUEST FORM Page 15 SAMPLE NEIGHBORHOOD PETITION FORM Page 16 PURPOSE The City and the Public Works Department are committed to preserving livable and attractive neighborhoods. One issue that may cause deterioration of neighborhoods is the excessive parking of non-resident vehicles on residential streets for extended periods of time. A system of preferential resident parking serves to reduce this strain on the residents of these neighborhoods. The intent of this Residential Parking Permit Program (RPPP) is to allow residents to park on-street in their neighborhood while restricting long-term parking by non-residents. PERMITS Parking Permit Types Residential Parking Permit Sticker – Parking permit stickers are issued to residents within the RPPP area. These permits allow residents to park on the street during the posted RPPP time restrictions. ™ Parking permits are issued as stickers to be affixed to the resident’s vehicle. The residential permit is valid for two calendar years and is available from the Public Works Department. ™ The number of permits that may be issued to either a single-family household or a multi-family residence is unlimited. It is understood that a greater amount of parking permits may be issued than there are available on-street parking spaces. This may Residential Parking Permit Policy and Procedures August 19, 2013 Q:\pw\PWENG\Traffic\Policy & Procedures\Residential Parking Permit P&P\RPPP Mod - Adopted 8-19-13.doc 3 create an environment of natural competition for on-street parking between neighborhood residents without the influence of long-term non-resident parking. ™ Parking permits may be issued only for passenger non-commercial and passenger commercial (i.e., SUV’s, small pick-up trucks, etc.) vehicles registered to residents residing within the residential parking permit area. Vehicles defined as oversized by the City’s Oversized Vehicle Parking ordinance, such as commercial trucks, boat trailers, RV’s (camping trailers, motor homes, etc.), trailers and work-type commercial vehicles, including taxis and limousines, are not eligible for residential parking permit program permits. ™ The resident is responsible for acquiring a new permit by the first day of the new two- year permit cycle year (January 1). There is typically a 30-day grace period at the beginning of the two-year permit cycle during which the Police Department will issue warnings. No other grace period (i.e., new resident to area, new car, etc.) is available during the two-year parking permit cycle. ™ The requirements to obtain a parking permit as a resident are: ¾ A completed application form in the residents’ name and address. ¾ A current DMV vehicle registration for each vehicle the applicant is requesting a parking permit. ¾ Proof of residency/ownership in the resident’s/owner’s name reflecting the permit address in the permit area. Acceptable proof of residency shall be a driver’s license, the vehicle registration, a utility bill, car insurance policy, lease agreement or a preprinted personal check with the resident’s name and address. Visitor Parking Permits – Visitor permits are issued to residents within the RPPP area for use by short-term guests so they may park on the street with the same parking rights as a resident of the RPPP area. Household visitor permits are issued as rear view mirror hangers, and must be displayed from the rear view mirror to be valid. Household visitor parking permit hangers are transferable, and may be placed on any vehicle that would be eligible to use a parking permit sticker. Any residence, either single-family or multi-family, eligible to obtain a residential parking permit may obtain a household visitor parking permit hanger. Only one (1) visitor parking permit hanger may be issued per household. Lost or damaged visitor permits may be replaced at the discretion of City Staff. This household visitor parking permit is valid for the same two-years as a permanent resident parking permit. This household visitor parking permit is only intended to be used by visitors. Use of the household visitor parking permit by a resident is not permitted, and may result in the issuance of a citation and/or confiscation of the visitor permit. Residential Parking Permit Policy and Procedures August 19, 2013 Q:\pw\PWENG\Traffic\Policy & Procedures\Residential Parking Permit P&P\RPPP Mod - Adopted 8-19-13.doc 4 Fee for Residential Parking Permits There will be no charge for the issuance of any residential parking permit. Eligible Exceptions for a Parking Permit Sticker Company Cars – A residential parking permit sticker may be issued for residents who have company cars as their primary transportation vehicle. To obtain a permit, the person must be a legal resident within the residential permit parking area who has a motor vehicle for his/her exclusive use and under his/her control where said motor vehicle is registered to his/her employer and he/she presents a valid employee identification card or other proof of employment that is acceptable to the City. Leased Cars – A residential parking permit sticker may be issued for a resident who has a leased car. To obtain a permit, the person must be a legal resident within the residential permit parking area who has a motor vehicle registered to a vehicle-leasing company and/or leased to the resident’s employer, providing said vehicle is for the resident’s exclusive use and provides proof or the lease agreement which is acceptable to the City. ™ The requirements to obtain a parking permit sticker for a company or leased car are: ¾ A completed application form in the residents’ name and address. ¾ A current DMV vehicle registration for each vehicle the applicant is requesting a parking permit. ¾ Proof of residency/ownership in the resident’s/owner’s name reflecting the permit address in the permit area. Acceptable proof of residency shall be a driver’s license, the vehicle registration, a utility bill, car insurance policy, lease agreement or a preprinted personal check with the resident’s name and address. Caregivers – Caregivers may be issued a parking permit sticker for a permit parking area provided the address of the resident receiving the care is within said parking area. ™ The requirements to obtain a parking permit sticker for a caregiver are: ¾ A completed application form in both the residents’ and caregivers name and address. ¾ A current DMV vehicle registration for each vehicle for which the applicant is requesting a parking permit. ¾ Proof of residency/ownership in the resident’s/owner’s name reflecting the permit address in the permit area. Acceptable proof of residency shall be a utility bill, car insurance policy, lease agreement or a preprinted personal check with the resident’s name and address. ¾ A letter from the resident identifying the permit applicant as the caregiver. Residential Parking Permit Policy and Procedures August 19, 2013 Q:\pw\PWENG\Traffic\Policy & Procedures\Residential Parking Permit P&P\RPPP Mod - Adopted 8-19-13.doc 5 Fine Amount The fine for violation of the Residential Parking Permit Program regulations is set within the City’s Comprehensive Fee Schedule. Misuse of Parking Permits Any person selling, fraudulently using, reproducing or mutilating a parking permit issued in conjunction with the residential parking permit program shall be guilty of an infraction and shall be subject to a citation for each offense and the forfeiture of all permits in conflict, or such other fine or penalty as the City Council may set by ordinance. Residential Parking Permit Policy and Procedures August 19, 2013 Q:\pw\PWENG\Traffic\Policy & Procedures\Residential Parking Permit P&P\RPPP Mod - Adopted 8-19-13.doc 6 POLICIES All residential parking permit programs shall follow a set of policies that are consistent from one program area to the next. This includes program area limits, enforceable times, and implementation practices. ™ The implementation of a Residential Parking Permit Program does not guarantee the availability of parking spaces on a public street, or within a specific neighborhood. Because more parking permits may be issued than there are available on-street parking spaces, the program may create an environment of natural competition for on-street parking among neighborhood residents without the influence of long-term non-resident parking. ™ The program allows for any resident or non-resident to park on-street during the restricted hours for a maximum of 2-hours unless a parking permit is displayed. “No Parking”/”Permit Parking Only” zones may be permitted, when appropriate, next to schools. ™ The Residential Parking Permit Program is intended for use in single family and multi-family neighborhood areas. The program is not intended for use in areas or on streets where there is a mix of commercial and residential use. For the purpose of this program, mixed-use is defined as areas with both commercial and residential land uses where shared use of existing on-street parking is expected. ™ Program enforcement hours will be determined based on the type of parking impact generator. This will provide for consistency among residential parking permit areas, and simplify enforcement of the program times. ™ Unless otherwise approved by the Public Works Director, parking restrictions within residential parking permit areas must be consistent from corner to corner on all streets to prevent “spill-over” or shifting of an on-street parking problem to an adjacent non-restricted area. Half block segments may be approved by the Public Works Director. ™ Limits of the parking permit neighborhood will be determined based on the potential of parked cars to overflow and impact adjacent streets. This will be done through a collaborative process involving both the applicant and Public Works traffic engineering staff. The final limits of the parking permit program area will be determined by the Public Works Director, whose decision is final unless appealed. ™ Parking permit holders will be issued permits to park along any street within the limits of their residential parking permit neighborhood area. ™ Parking permits will be issued to any car registered at an address within a permit parking area. Residential Parking Permit Policy and Procedures August 19, 2013 Q:\pw\PWENG\Traffic\Policy & Procedures\Residential Parking Permit P&P\RPPP Mod - Adopted 8-19-13.doc 7 ™ Any work-type commercial vehicle, displaying a commercial license plate, that is actively performing work for a property within the limits of a residential parking permit program zone, may park on-street in front of the subject property without the need for a residential parking permit, and will not be cited. ™ Parking permits are not intended for use at metered parking spaces within business districts or retail areas. This includes the Downtown area , 25th Avenue, 37th Avenue and 40th Avenueareas. ™ For downtown residents, parking permits are not intended for use within designated parking lots. Downtown parking permits are available for purchase at the City Hall Finance Department counter. ™ Vehicles displaying parking permits are subject to all other parking restrictions including 12 and 24-minute spaces, white passenger loading zones, yellow loading zones, handicap spaces and red zones. ™ Displaying a residential parking permit does not exempt the vehicle from the City’s ordinance which requires a car to be moved every 72 hours. ™ Once established, a residential parking permit program area will sunset after ten (10) years. Prior to sunset, the neighborhood’s interest in the RPPP shall be reconsidered through a City-developed residential survey. Based on the criteria in this document, if the majority of the property owners show interest in maintaining the current program, the RPPP will remain in place for another ten (10) years. If less than a majority indicate interest in maintaining the program, a public hearing will be scheduled to consider removal of the RPPP. Evaluation of the individual programs will be done in the final two years of the ten-year sun-setting cycle. ™ To process a request for implementation of a residential parking permit program, a parking impact generator must exist. This program is not intended to restrict or limit the amount of residential vehicles that may park on-street within a given neighborhood. ™ Any parking permit may be revoked if used contrary to the provisions of this policy. Residential Parking Permit Policy and Procedures August 19, 2013 Q:\pw\PWENG\Traffic\Policy & Procedures\Residential Parking Permit P&P\RPPP Mod - Adopted 8-19-13.doc 8 REQUIRMENTS The following are required to implement a residential parking permit program: 1. Parking Impact Generator Identification – A non-residential Parking Impact Generator must be identified that creates a parking overflow into the proposed residential parking permit neighborhood. The parking impact generator may be a school, business, commercial district or commercial use. 2. Determination of Parking Permit Program Zone – A parking utilization survey will be used to set the boundaries of the residential parking permit program zone. The survey will be conducted between 8:00 a.m. and 6:00 p.m., Tuesday through Thursday, and be on a day the community has identified as a typical problematic parking day. From the parking survey, a map will be generated showing the level of on-street parking. Street segments will be identified showing >75% parking, between 65% - 75% parking, and <60% utilization of on-street parking spaces. Staff will use this information to determine the limits of the parking permit zone. Street segments having <60% parking utilization will not be considered for inclusion in the parking permit zone. Other factors may also be considered by staff including street topography and the potential for parking creep directly adjacent to a newly signed parking permit program area. Half block segments may be approved by the Director of Public Works based on topography or length of street, or if the parking utilization study shows that it is justified. The decision of the Public Works Director is final. 3. Community Support – There are a number of optional tools that can be used to generate neighborhood support for the implementation of a residential parking permit program. These include: x A neighborhood meeting x Circulation of a resident petition x Submittal of Homeowners’ Association letters of support. These tools are optional and at the discretion of the applicant. It is ultimately the responsibility of the applicant to generate sufficient community support that can be demonstrated to the Director of Public Works through a survey. Staff will work with the applicant to determine which options may be used to generate an adequate level of support. 4. Neighborhood Survey – For staff to recommend approval for the residential permit parking program to the Public Works Director, the neighborhood survey, distributed by the City, must have 50% or more response rate, and a 67% support level from those returning the survey. Residential Parking Permit Policy and Procedures August 19, 2013 Q:\pw\PWENG\Traffic\Policy & Procedures\Residential Parking Permit P&P\RPPP Mod - Adopted 8-19-13.doc 9 PROCEDURES PROGRAM DEVELOPMENT Residential parking permit program development must be consistent with all policies as defined above. The recommended procedures presented below provide for consistent parking permit program development from one neighborhood to the next. Staff has the flexibility to modify the following procedures when it is appropriate. 1. A residential permit parking program is requested by a San Mateo resident through the Public Works Engineering Division. The application includes the requested streets to be included in the residential parking permit area. 2. Through discussions with the applicant, day and time limits of the proposed program will be identified. Days and times of enforcement will be established to reflect the nature of the parking impact generator and to provide consistency and ease of enforcement by our San Mateo Police Department. 3. A neighborhood meeting is optional. The applicant may request a neighborhood meeting to present the components of the Residential Parking Permit Program to the requested neighborhood area. 4. A neighborhood petition is optional. The applicant may circulate a City provided petition to provide outreach to the community or to demonstrate support for the implementation of the residential parking permit program. Only one signature is needed per dwelling unit. Each house, apartment or condominium will be considered a dwelling unit. 5. A support letter from the area’s Homeowners’ Association is optional. The applicant may demonstrate the support of their Homeowners’/Neighborhood Association (if one exists) through the submittal of a letter of endorsement from that group. That letter of support will be considered by the Public Works Director during deliberation of the requested zone. 6. Staff will prepare a survey to determine resident support for the requested residential parking permit area. The survey will be distributed by the City to all residents in the proposed RPPP area. 7. The Public Works Director will approve or deny a request for a residential parking permit area based on the preponderance of information gathered during the RPPP evaluation process. The decision of the Director of Public Works is final unless appealed to the Public Works Commission. 8. If the request for permit parking is approved by the Director, staff will draft and mail a letter to the residents within the proposed permit parking area to inform Residential Parking Permit Policy and Procedures August 19, 2013 Q:\pw\PWENG\Traffic\Policy & Procedures\Residential Parking Permit P&P\RPPP Mod - Adopted 8-19-13.doc 10 them of the public hearing results. The letter will also notify them of the new requirements for on-street parking within the permit parking program area. 9. Residents will have thirty (30) calendar days to appeal the decision of the Public Works Director following mailing of the notification of Director action. Submitted appeals shall: a. Be in writing b. Provide grounds for the appeal c. Identify specific actions being appealed (parking time limits, hours of enforcement, zone boundaries, etc.) d. Include a recommended alternative action e. Provide a petition of surrounding residents in support of the appeal action Appeals will be heard by the Public Works Commission at the next available meeting. 10. If the request for permit parking is denied or terminated, a second study of the same or similar RPPP study area will not be conducted for a minimum of twelve months unless there is a significant, identifiable change in parking characteristics as determined by the Public Works Director. Subsequent studies of the same general study area will be subject to the same requirements and procedures as the initial study process. 11. As the parking permits are valid for two years, a letter is sent out by staff every other year notifying all residential parking permit holders of the need to renew the parking permit before the end of the calendar year. Parking permits may be renewed in person at City Hall, or by mail. PROGRAM REMOVAL The process to remove a residential parking permit program is similar to a program development. The procedures presented below provide for consistent parking permit program removal. 1. A RPPP area, or part thereof, may be removed from the permit parking program by the Public Works Director pursuant to: x A valid request from the affected residential parking permit neighborhood, and a City provided petition from that neighborhood indicating support from at least 67% of respondents in the area wishing to be removed from the RPPP. x A determination by the Public Works Director that removal from the RPPP is either in the community interest, or is in the interest of public safety. Residential Parking Permit Policy and Procedures August 19, 2013 Q:\pw\PWENG\Traffic\Policy & Procedures\Residential Parking Permit P&P\RPPP Mod - Adopted 8-19-13.doc 11 2. Once the petition for removal is received by staff, a survey of the area is prepared and distributed to the neighborhood. Similar to the program development process, 50% of the residents surveyed within the area requesting removal from the RPPP must respond, and of those responding 67% must support removal from the permit program for staff to recommend removal of the program to the Public Works Director. 3. If the survey is successful, the Public Works Director will review the request and make a determination regarding removal of the parking permit area. The affected neighborhood is notified of the Director’s determination. The action of the Director can be appealed to the Public Works Commission. The appeal must be submitted within 30 days of the Director’s determination. Information required as part of the appeal shall be as described for appeal of a new parking permit area request. 4. If the request for removal is approved by the Public Works Director, the neighborhood is notified of the decision, and the RPPP signs are removed following the 30 day appeal period. There shall be no cost to the residents associated with removing an area from the RPPP. 5. If an existing RPPP area is revoked, any request for reinstatement shall be subject to the same process as that of a new RPPP area , and if approved the neighborhood shall be assessed the total cost of all related staff activities including permit printing costs, distribution cost and all resigning costs. Residential Parking Permit Policy and Procedures August 19, 2013 Q:\pw\PWENG\Traffic\Policy & Procedures\Residential Parking Permit P&P\RPPP Mod - Adopted 8-19-13.doc 12 RESIDENTIAL PARKING PERMIT PROGRAM FREQUENTLY ASKED QUESTIONS What is a Residential Permit Parking Program (RPPP)? The City of San Mateo will implement a residential permit parking program as a remedy for neighborhoods that are impacted by long-term on-street overflow parking from sources (called parking impact generators) outside the neighborhood. These parking impact generators include some high schools, business complexes and commercial areas. This program is intended to deter long-term on-street parking, however short-term 2-hour parking will be permitted within any RPPP area for non-permitted vehicles. Implementation of a RPPP area is a way to give residents of a designated area a better chance to park near their homes. It is not intended to designate a specific parking space along a property frontage. An RPPP area involves the posting of parking time limits or parking restrictions from which local residents are exempt if a valid permit is properly displayed within their vehicle. Residents within an approved parking permit neighborhood may obtain a parking permit to display on their car that will allow them to park for more than two hours along their neighborhood street. Any car registered to an address within a permit parking neighborhood is eligible to utilize a parking permit. The number of parking permits issued per property is unlimited. Where are RPPP areas allowed? Residential Parking Permit Programs are allowed within residential neighborhoods whose on-street parking ability is impacted by parked cars from non-residents, or parking impact generators. Why is a policy and procedures document necessary? The purpose of this document is twofold. The first reason to create a policy and procedures document is so that all parking programs are consistent. For a residential permit parking program to be effective it is essential that it can be enforced. One factor that increases the ability for the Police Department to enforce parking restrictions in an area is program consistency. Programs should be consistent from one area to another within the City. Secondly, this document serves as a tool to establish criteria and process expectations for both staff and the community while helping to define a collaborative process. Are residents who live in a RPPP area required to obtain parking permits? Obtaining a parking permit is purely optional. You may decide to obtain a parking permit which will allow you to park on the street during restricted hours, or you may decide not to obtain a parking permit and be subject to the on-street parking restrictions of the street. Residential Parking Permit Policy and Procedures August 19, 2013 Q:\pw\PWENG\Traffic\Policy & Procedures\Residential Parking Permit P&P\RPPP Mod - Adopted 8-19-13.doc 13 How long does it take to establish a new RPPP area? It can take several months to establish a new area. Depending on the size of the impacted area, the overall process from initial request to sign installation could take eight to twelve months or longer. Can I use my parking permit to park in any of the posted RPPP neighborhoods? Each parking permit issued will be for a specific RPPP neighborhood or area. With the appropriate parking permit, you may park within the boundaries of that specific RPPP area only. Parking for a period of time greater than that posted, in an area other than that designated by your parking permit, may result in your vehicle receiving a citation. The RPPP cannot guarantee or reserve the permit holder a parking space within a designated residential parking permit program area. Parking is on a first-come, first-served basis. How are the restrictions enforced? The Police Department will issue citations to vehicles that are in violation of the parking restrictions. Enforcement is made by routine police patrols or by calling the Police Department at (650) 522-7700. Can a RPPP be abolished once an area has been created? A RPPP may be removed per the program elimination process identified in the RPPP Policy and Procedures document. The City is notified of the request, a petition is circulated, a survey is distributed, a public hearing is held and if successful, the signs are removed. If you have questions or are interested in a Residential Parking Permit Program, please call Public Works at (650) 522-7300. Residential Parking Permit Policy and Procedures August 19, 2013 Q:\pw\PWENG\Traffic\Policy & Procedures\Residential Parking Permit P&P\RPPP Mod - Adopted 8-19-13.doc 14 NEIGHBORHOOD DRAWBACKS ASSOCIATED WITH ‘RESIDENT ONLY’ PARKING Although there are many advantages associated with a RPPP, the City would like to point out some of the disadvantages. Please read the following information carefully while considering the impacts of implementing a Residential Parking Permit Program in your neighborhood. 1. The implementation of a Residential Parking Permit Program does not guarantee the availability of parking spaces on a public street, or within a specific neighborhood. The program creates an environment of natural competition for on-street parking between neighborhood residents without the influence of long-term non-resident parking. 2. Creating a new RPPP area can take several months and requires a review by the Public Works Director, and possibly the Public Works Commission and City Council adoption. Other alternatives to the neighborhood issue may be implemented much quicker. 3. A City survey must illustrate support by at least 67% of the residents responding within the proposed area. Sixty-seven percent of the responding residents can impose their parking desire on the other 33% of residents. 4. A parking impact generator must exist. Many neighborhoods do not qualify. 5. If you have guests that wish to stay for longer than two hours and park on the street, you must obtain a visitor parking permit for the vehicle of your guest. 6. If you or your guest park in the street for longer than two hours without a permit, the Police Department will issue a parking citation. 7. A residential parking permit program can be imposing to a neighborhood and create a lot of inconvenience. These drawbacks must be weighed with the potential benefits when considering the implementation of a program that would restrict outside parking influences from your neighborhood. Residential Parking Permit Policy and Procedures August 19, 2013 Q:\pw\PWENG\Traffic\Policy & Procedures\Residential Parking Permit P&P\RPPP Mod - Adopted 8-19-13.doc 15 Residential Parking Permit Program Request Form The purpose of this form is to enable neighborhoods to request the initiation of a Residential Parking Permit Program in accordance with the City of San Mateo’s adopted Residential Parking Permit Program Policy and Procedures. This form must be filled out in its entirety and submitted with any request to: The City of San Mateo Public Works Department 330 West 20th Street San Mateo, California 94403 Feel free to attach additional sheets containing pictures, maps, or additional text if the space provided is insufficient. 1. Requesting Individual’s Contact Information Name: ____________________________________________ Address: ____________________________________________ Phone Number: _______________________________________ Email (optional): _______________________________________ 2. Please describe the nature of the overflow parking problem in your neighborhood. What streets in your neighborhood do you feel are affected by overflow parking? : 3. Can you identify a parking impact generator that is the cause of overflow parking in the neighborhood? Are there any facilities (churches, schools, shopping centers, etc.) near this location that generate a high concentration of vehicle and pedestrian traffic?: 4. Please describe how a Residential Parking Permit Program will be able to eliminate or reduce overflow parking impacting the neighborhood: 5. Is there neighborhood support for submittal of this Residential Parking Permit Program application? Have you contacted your HOA/Neighborhood Association? Residential Parking Permit Policy and Procedures August 19, 2013 Q:\pw\PWENG\Traffic\Policy & Procedures\Residential Parking Permit P&P\RPPP Mod - Adopted 8-19-13.doc 16 Neighborhood Petition Form for Residential Permit Parking City of San Mateo THE UNDERSIGNED BELOW AGREE TO THE FOLLOWING: 1. All persons signing this petition do hereby certify that they reside on the following street, which is being considered for 2-hour residential permit parking: (Street Name) 2. All persons signing this petition do hereby agree that the following contact person(s) represent the neighborhood as facilitator(s) between the neighborhood residents and City of San Mateo staff in matters pertaining to this request: Name: _________________________ Address: ___________________ Phone #: __________________ Name: _________________________ Address: ___________________ Phone #: __________________ Name: _________________________ Address: ___________________ Phone #: __________________ ONLY ONE SIGNATURE PER DWELLING UNIT Name (Please Print) Address Phone Number Signature 1.________________ _________________________ __________________ ___________________ 2.________________ _________________________ __________________ ___________________ 3.________________ _________________________ __________________ ___________________ 4.________________ _________________________ __________________ ___________________ 5.________________ _________________________ __________________ ___________________ 6.________________ _________________________ __________________ ___________________ 7.________________ _________________________ __________________ ___________________ 8.________________ _________________________ __________________ ___________________ 9.________________ _________________________ __________________ ___________________ 10._______________ _________________________ __________________ ___________________ 11._______________ _________________________ __________________ ___________________ 12._______________ _________________________ __________________ ___________________ 13._______________ _________________________ __________________ ___________________ 14._______________ _________________________ __________________ ___________________ 15._______________ _________________________ __________________ ___________________ 16._______________ _________________________ __________________ ___________________ 17._______________ _________________________ __________________ ___________________ 18._______________ _________________________ __________________ ___________________ 19._______________ _________________________ __________________ ___________________ 20._______________ _________________________ __________________ ___________________ Sllp po rt is not present, stafTwi ll identi fy concerns, report resuhs to Ihe neig hborhood and determine Ihe nex t steps. Prior 10 slafT approval o f any parking modifications, slaff shall determine if current parki ng resources ha ve Ihe ability 10 implement, manage and enforce any increased workload. 5, Implementatio n or parking Modifications Non~pre ferenlia l park ing modi fi cat ions may not require council approval for implementation. Neighborhood preferential pa r lOng modifications wil l require council approval. Parking plans may be implemented on a trial basis for a set period of time to be evaluated and considered for permanent implemen tation. Projects will be placed on a projecilisl sequentially in an existing series of projects. Project costs may be a determining faclor as 10 whether a project can be Implemented. NEIGHBORHOOD PARKING PLAN PROCESS Parks & Public: WOI"ks ('08)399-5710 Police Department (408)354-8600 February 2010 NEiGHllORHOOO: PARKtNG PLAN PROCESS Reqt:es!s for cQil$ltieraHon of neighborhood parking ptans must be submitted via a VvTit1en petition to 1he Town. Upon acceplEmce of a petllioll, mlliaJ data muy be g(l.lhered \0 establish a hetler understanding orlbe reponed ISSUes. A determination WIll be made ;f there are safety Issues requlf!ng immediate attention. If no Immediate safety lssues are present, Tov.71 slaffmay request a future meeling with lhe pehhomng nClghborho<XI to discuss the gal he red della and possd")le parking modifications Proposed chRnges require agtcemenl from 67% orthe Rffected residential households prior 10 being considered by slaff as a possible pBrkmg mooiflcnhO(), J\'Oll~ preferen!ial parkmg modifications may nOt require CO\mClf approval fOI" final Imp!ementation, wilde any ne'lghborhood preferred parkmg modifi<:ation will require coune:! approval pflor to fmal Implementation. Any approved parkIng rnodlficl'I!!ons wtll ~e placed on a prop2c! lisl sequentm!ly Iti an existing series of projects. ProJects may be re-pfJontized by the Police Chief or Department ofPubllC WOiks Dlre~toc Proeess 1. Pdtlion A nelgbborhood petitIOn is required to begm the parkmg process. The petitIOn must mclude signatures of at least 50% oflhe affected resiLicnhal housebolds. Staff rclams Ihe nght 10 defIne the alTeeled are.a$. The pCiihon Will need 10 slate what spe-c111c problems ex.Sl, 31 what lime the problems occur, on whal days of!he week the problems arc Inosl significan! 30d suggested potentia! mQdiftcatlOl1s_ Petitions will be revIewed. prioritized and ptaced on a lis\, The petillon WID be discussed wilh !he Transportation hnd Parkmg Commission (I! h scheduled meeting 2, Dahl CoUedioll Town staff will colleel datu \0 evaluale the request. items lhat \Vl)! be considered dunng data collectIon are parking compacllon. bours of Hl1paC(, avadab!llty fOf reslden!lal ofT<streel parking. cngineenng issues such as roadway mmowness, design of the streel and general safety issues Contributing causes to the parking conditions Ihat will be considered are Ihe f./rOXtmlty to a buslllcs$ dIstrict, schoo: or a church, and ,he likelihood thaI parkmg c(lnlro!s wl!1 negatIvely affect an adjQlOing area. J. lufor01nllonnJ Neighborhood Meeling 1 f staff dele!!Y1lfleS lhal there lne issues Ihal juslify consldCrlltlOn, lhey WJ!I schedule a neighborhood meeting. The neIghborhood meeting Will be an mformallOn and feedback session, St,lfTwdl prese:lt Ihe dala galhered by the lown and establish the boundafles to define the neighborhood, Tbe netghborhood will be Indvded m lhe developmertt of pOSSIble solutioos and potential parking modifications, AdditJonal analYSIS may need 10 be {:onducted after thiS imllal meetmg The meeting sh{)u~d be attended by repn:::senlal:veS from the POlice and Parks and Public Works Departmen1s and may incillde repreSenl<11ivC$ from the Trnnsportatlon And Parkmg CommIssion 4. Additional Meetings and Proposed Modifications f\ fter review of any proposed modIfications, s!aff may cOllvene addItional neigbborhood meetiog,s 10 discuss altcrna!wes and determine neighborhood preference and ptlblic consenSlIs. The outcomes of the rne<:!lOgs will refine Ihe deveiopment of pOSSible modifications. Requested modlficatio11s wfll need Ihe support of67% of the arfected Hmdenlial households to be implemented, if the required nerghbOlhood Please think of the environment before printing this email -Thank you! From: Simon Cintz [mailto:simoncintz@gmail.com] Sent: Thursday, October 24, 2013 10:48 AM To: Rodriguez, Jaime; Aknin, Aaron Cc: Watercourse way; Sheilla Likar; Brad Ehikian; Palo Alto Downtown; Sullivan, Jessica SuJ>ject: Re: Oct 17 Meeting HigbJigrts Jaime and Aaron- Thank you for following up so quickly with me. I did take a look at the meeting notes. I do hope you will look at my "highlights" of the meeting email. The problem with the published minutes is that it is very detailed, person by person, and one cannot "see the forest for the trees" in the minutes. However, I do believe that both of you are well aware of the major issues that face our Downtown/SOFA businesses and employee in regards to RPP. I have a few questions: 1. I'll start with the BIG QUESTION, which I do not expect you to answer immediately, but I do hope you will answer well before the Planning Commission meeting. The BIG QUESTION: What changes to the current RPP plan will you propose to address the issues that businesses and employees raised at the OCT 17 meeting? If the plan doesn't change, then we might as well not have had the meeting. I am hopeful that your department will take our concerns seriously and make SIGNIFICANT modifications to the RPP plan so as to make it a fair and balanced plan for residents, businesses, and employees. We are ALL part of the Downtown community and we ALL should have our needs addressed fairly. N ow for the easy questions ... 2. What are the hours of enforcement currently proposed for the RPP zone in residential areas? M-F, 8am-5pm? 24/7? or something else? 3. When will the RPP plan be presented to the Planning Commission at a public meeting? It is typical that the Planning Comnlission reviews and makes recommendations prior to consideration by the City Council. I assume that the same is planned for RPP. Thanks, 2 From: Simon Cintz [mailto:simoncintz@gmail,com] Sent: Wednesday, October 23, 2013 9:36 AM To: Rodriguez, Jaime; Aknin, Aaron Cc: Watercourse way; Sheilla Likar; Brad Ehikian; Palo Alto Downtown Subject: Oct 17 Meeting Highlights Aaron and Jaime, Thank you for taking time to listen to SOFA (and some "downtown proper") businesses at the October 17 meeting. I hope that your department will take our concerns seriously and put together a plan that is supportive of businesses/employees, yet still effecti vel y addresses the overparking problem in the residential areas. Below is my list of the highlights from the October 17 meeting. Please understand that it is NOT an exhaustive list of all the issues that attendees raised. It highlights those issues that I feel represent the vast majority of those at the meeting. There are other issues that are important also and may grow in significance as the RPP program receives closer examination. The following items are in no particular order. Numbering does NOT imply priority. 1. Do NOT take away or modify ANY of the existing two hour free street parking already in the greater Downtown (This includes SOFA). Do not sell it to residents. Do not sell it to non-residents/employees. Do not convert it to longer or shorter parking time periods. The existing 2-hour free street parking needs to stay AS IS because it serves our local business customers. Period. 2. From DAY ONE of implementation, an RPP program must provide sufficient parking for all existing businesses and employees in the greater Downtown area. We are concerned that the City's proposed 15-20% starting point, will leave many without any parking. Where will they park? Walking 7,8, or more blocks one- way to work is not a reasonable option for those paying $466/permit. The City has not provided any concrete alternatives that are in1IDediately and adequately available to make up for the employee parking deficit that the proposed RPP program will immediately create. 3. The cost of parking needs to be affordable. Many small businesses and low income employees (often working part-time) cannot afford the $466/year. The Hangtag program, while a good idea, does NOT significantly reduce the cost of parking to businesses/employees. It is a great way for a business to transfer a parking permit from an employee who is quitting to a new employee who is just starting, but it is a NIGHTMARE to administer if it is used (as Aaron suggested) on a shared basis by multiple employees/shifts at a business. 4. Employee safety is a primary concern for both businesses and employees. The current RPP zone can require a person to walk many blocks back to hislher car in the dark along dimly lit residential streets in the huge RPP area. What will the City do to ensure employee safety that results from the implementation of RPP over a 100+ residential block area? 5. RPP program issues are complex and RPP is NOT READY for in1plementation in Palo Alto. It appears that the City has insufficient data to determine how many employees will be displaced by only initially offering 15- 20% of capacity to employees. The City needs to do a study to fully understand the impact of this program on 4 businesses and their employees. Without us there would be no "downtown". 6. The RPP program should not be the first step in solving the parking problem. RPP may have it's place AFTER the City has provided additional garages, Caltrain intensives, and shuttle programs. Once these programs are in place, ONLY then will employees have realistic parking/transportation options to choose from. 7 . We want the City to treat Downtown/SOFA employees with the same respect that the City treats it's own employees.City employees are already given free parking and will be encouraged to use public transit, as an OPTION if appropriate for the individual City employee. However, the RPP is forcing the greater Downtown business employees to "get out of the neighborhood" and find some other way to get to work. The City-should treat our employees with the same respect that it treats it own employees, allowing EVERYONE reasonable and flexible options. 8. Over and over again we heard that the Downtown/SOFA small businesses serve local neighborhoods and Palo Alto citizens at large. We are an asset to the community and should be treated as such. Don't kick us out of our own neighborhood. We are part of the neighborhood contributing to nearby residents and Palo Alto at large. It's been this way for decades We need to preserve BOTH the residential and business areas that make up our downtown community. I hope we will b~ able to continue a meaningful dialogue that will produce a fair and bal(,U1ced plan consideri~g both residential and business needs. The current RPP plan as proposed by the City is lopsided and hurts businesses and their employees. Thank you, Simon Cintz Cintz Commercial Properties, LP P.O. Box 1216 Palo Alto, CA 94302 831-247-2387 5 Tamale, Diana Subject: FW: Email 6 From: Simon Cintz [mailto:simoncintz@gmail.com] Sent: Thursday, October 31, 2013 9:11 AM To: Aknin, Aaron Cc: Palo Alto Downtown; David MacKenzie; Rodriguez, Jaime; Sullivan, Jessica Subject: City Wide RPP at Council Meeting? Aaron - During our brief conversation yesterday at the DowntoWn walk, I think you said that the City Council at their December meeting would consider adopting a "City Wide" RPP program. Maybe I misheard you or misunderstood. Please accept my apologies if I didn't properly understand your comments. Please clarify what the planning/transportation department is intending on asking the Council to consider at their December meeting. Will the Council be asked to consider adopting RPP as a City Wide program/concept ... or ... will the it be asked to limit that meeting's focus to the Downtown RPP program that we have been discussing in public meetings the last few months? Or something else? I have copied Russ Cohen and David MacKenzie on this email. Since the Council meeting will be the next public meeting regarding RPP, it is important that we are all clear on what the Council will be asked to consider and vote on. Thank you, Simon Cintz Cintz Commercial Properties, LP P.O. Box 1216 Palo Alto, CA 94302 831-247-2387 1 Tamale, Diana Subject: Attachments: FW: Email 5 IMG_2660.J PG From: Simon Cintz [mailto:simoncintz@gmail,com] Sent: Thursday, November 14, 2013 10:19 AM To: Gitelman, Hillary Cc: Aknin, Aaron; Rodriguez, Jaime; Sullivan, Jessica; Hal Mickelson; David MacKenzie; Palo Alto Downtown; Brad Ehikian Subject: Chamber Meeting Followup Hillary - I appreciate you and your staff coming to the Chamber of Commerce meeting yesterday. I appreciate your willingness to reach out to businesses and hear what they have to say. I hope you will continue to be open to our needs and concerns regarding parking issues. I was originally told that Jaime was going to make a presentation on RPP and that I would follow him with my presentation which focused on the business problems with RPP. That format did not happen, but I do think we had a very useful discussion in the meeting. Since I wasn't given an opportunity to do a formal presentation (as I had planned), I'm concerned that some of my unprepared comments weren't as clear as I would like them to have been. Therefore I am writing this email in the hope that if I didn't communicate clearly, that I can do so now. I have spent many days literally walking from business to business in the SOFA (South of Forest Avenue) and Downtown areas. I've talked to over 50 business people in the last few months about RPP relative to their needs. Here are a few of the key points regarding business needs that I think you, your staff, and, eventually, the City Council need to take into serious consideration: 1. Overall, the RPP program presented by your Department in the Sept 24&26, 2013 public meetings is VERY BUSINESS UNFRIENDLY. This is the almost UNANIMOUS position of small businesses in the greater downtown area. 2. Your department can make RPP much more business friendly. Primarily this can be done by increasing the percentage of residential street parking allocated to businesses. The currently "proposed" maximum of 40% with an initial starting point of 15-20% is very far from adequate to take care of business employee needs. (I put the word "proposed" in quotes for Aaron's benefit to avoid a semantic squabble. Aaron, I know this is not a formal proposal, but it is a clear indication of how unbalanced of an approach the Planning and Transportation Department is taking toward business needs.) 3. A very low allocation of street parking space to employees leaves business owners with the unsolved problem of "Where will my employees park?". On Oct 17, I and Sue Nightengale, owner of Watercourse 1 Way with approx. 70 employees, organized a SOFA area business meeting with Jaime and Aaron. This issue was often repeated by the businesess attending. Also, of major concern was employee safety. The lower the allocation, the further employees must walk to their cars. After dark, this becomes a major concern for employees and the business owners/managers they work with. Additionally, any allocation of space in neighborhoods that requires a long walk from parking place to work is useless to businesses. As I'm sure you are aware, the very large size of the "proposed" RPP zone is not done so as to allocate nl0re space to employees, but rather just the opposite ... to keep employees from evading the zone restrictions and parking outside of them. 4. Understandably, preservation of residential neighborhoods must be a key Planning/Transportation objective. I hope you and your staff understand that preservation of the business contmunity must also be an important objective. Business parking needs to be INCLUDED and BALANCED with the residential needs. I grew up in this area and my parents lived in the SOFA residential neighborhood for many years. Businesseshave been parking on these residential streets for many decades and parking issues has been "a fact of life" for many decades. (I won't bore you with my stores of growing up in Palo Alto, but I do have 50+ years of personal experience with -the SOFA business and residential areas.) 5. Th,e Planning/Transportation Department has done a very poor job of outreach to businesses and also to residents in the non-impacted neighborhoods. Notices of the public meetings are often not sent to business owners/nlanagers. Residents in the outlying areas that are part of the "proposed" RPP map receive these notices but ignore them because "Why should we attend a meeting about Downtown parking? We don't have a problem on our street, therefore there is no reason to attend." The voices that the City Council and the Planning/Transportation department have been hearing are ONLY those of very loud and well organized residents in the highly impacted neighborhoods. I acknowledge that these residents have valid concerns, but they are not the only ones in the community. By not reaching out to businesses and non-inlpacted residents, your department is only hearing "the loudest voice in the room". The quieter voices are also important and need your sincerely attention. We need a COMMUNITY SOLUTION that addresses the needs of all, not just the loudest. 6. If you truly want to hear from businesses and employees, then postpone the December Council public hearing on city-wide RPP until mid-January. This problem has been going on for over 30 years, waiting another 30 days to include businesses and their employees in the discussion will not cause irreparable harm to anyone. Lastly, I am attaching a photo that I took on Nov 12th (Tuesday) in the College Terrace RPP zone taken at about noon. I would have shown it at yesterday's meeting if I had been able to do a formal presentation. It was taken at the comer of College and Wellesley, looking east along College toward EI Camino. The location is less than four blocks from the busy EI Camino Business District. Noon is the busiest time of day for customer parking in the nearby business district. The College Terrace RPP program only allows residents to purchase permits. Businesses are excluded. Notice that the photo shows almost NO vehicles on the street. Admittedly, not all College Terrace streets look this way. When I look at this photo, I see a wasted COMMUNITY RESOURCE because business employees have been excluded in reasonable and manageable numbers from this neighborhood. Where are these "excluded" employees parking now? They have been pushed into the residential streets near California Ave making that situation worse. And, of course, the California Ave residents are now complaining. The College Terrace RPP program has simply moved the problem of business parking from one neighborhood (College Terrace) to another (California Ave.). This is the result of an OVERREACTION by the Planning/Transportation Departments to "the loudest voices" in College Terrace. Instead of just excluding Stanford Students (the major cause of overparking in the area) the College Terrace RPP program needlessly excludes ALL NON-RESIDENTS. I hope the Planning/Transportation Department will not make a similar mistake in planning a city wide RPP framework. 2 Businesses and their employees are a valuable part of the Palo Alto community. Your department and the City Council needs to acknowledge this and act accordingly. Thank you for listening. Simon Cintz Cintz Commercial Properties, LP P.O. Box 1216 Palo Alto, CA 94302 831-247-2387 3 Second, a pipeline report should regularly be made public for both Ventura and Evergreen neighborhoods. Through these efforts in sharing data, I hope that we can all work together effectively to evaluate and plan for future growth in our neighborhood. Chris Donlay Pepper Avenue (Ventura Neighborhood) Palo Alto 2 -rhis is the main (residential) person in Downtown North pushing for new parking and development regulations. AA From: l\Ieilson Buchanan [mailto:cnsbuchanan@yahoo.com] Sent: Saturday, October 26, 2013 11:03 AM To: Keene, James; Aknin, Aaron Subject: Moving Ahead at Faster Pace Jim and Aaron, thanks again for your time again. I think we agreed that all the stakeholders for seri'sible development in Palo Alto need to adopt a bias for action. Several of the attendees of the Oct 24 have reflected on our diScussion and I think there a growing consensus that residents can move forward by taking the following actions: 1. I will meet with Roxy and Chop on Wednesday. I suggested a second resident to participate but Roxy felt this initial meeting should be limited. I have no problem with this. I have no agenda except to find common ground and start a collaborative,open problem solving process of any scope. Doing a few things well should be our mantra. 2.0ct 24 attendees and other citizens unable to attend should meet with new Planning Director at her earliest convenience. Please convey our urgent desire to meet with Aaron and her. 3. It is our understanding that Aaron and Planning Department Staff will produce the latest development pipeline data (March 18 format) as soon as feasible. Regular updates are essential; otherwise our forecasts of parked vehicle impact on residential streets will be outdated as projects change. 500 University seems to be a good example of outdated . data. We feel pipeline data is the cornerstone to keeping neighborhood leaders and their fellow citizens informed and involved. Most importantly, without this information there will be no real sense of urgency from any stakeholder. Aaron, when can we expect this report for the University and California Avenue commercial cores? It is only a matter of time before new resident stakeholders from Old Palo Alto, Crescent Park and University South wake up and assess the commuter parking spillover threat. 4. Hopefully stakeholders will be responding spontaneously and creatively to parking, traffic, housing, etc with many solutions of all sorts. I predict a very welcomed shift from Palo Alto's slow, often stalemated problem solving process .... from passive problem solving to perhaps over-reaction downside. If the Planning Department will respond with better framing information, then stakeholders will understand the significance and relative impact of solutions as they move from concept to serious study by Planning Department and stakeholders. WPP/RPP is a good example for the need to frame the emerging solution components now so that everyone's expectations are realistic as the idea moves from concept to policy(ordinance) to contract/funding and finally to implementation. Attached is our amateur effort to give basic timeline framework for WPP/RPP. For obvious reasons every stakeholder should be monitoring the rollout and timelines of permit parking, but it does not make sense if every stakeholder is throwing out uninformed information about timelines, etc ... especially since it is impossible for all stakeholders except COPA to know the capital and operating costs. I am speaking only for a handful of residents ... albeit very involved and very involved neighborhood leaders living near the two commercial cores. thanks again, Neilson Neilson Buchanan 155 Bryant Street Palo Alto, CA 94301 650 329-0484 650537-9611 cell cnsbuchanan@yahoo.com 2 Why we need the COPA Planning Department to frame issues and let all stakeholders understand how key solutions [such as WPP and RPP] will develop Underlying issue: Commuter Parking Intrusion into Evergreen Park and Downtown North has exceeded critical levels. Quality of neighborhood life is far more compromised than the Newell Bridge/Crescent Park situation and the quick fixes are impossible. Fixes may require 24 +months and are risky due to the fact that demand may outpace COPA's ability to craft a WPP/RPP solution. This is the prime reason to frame permit parking project throughout its evolution. Without a common sense of direction and urgency the Council will fail in its attempt to address quality of neighborhood issues. We all now have a common understanding that no concrete proposal for WPP or RPP will be on the table for consideration until late Spring 2014 ... at the earliest...how long it will take to reach a go-ahead Council decision is problematic. So count the days from March 18, 2013 ... my most optimistic prediction is Memorial Oay May 25 2014 It took 271 days to get Council to.approve the ordinances to reform outdated exemptions. Everyone ,,,. recognized the relative simplicity of this "near-term" solution. The number of number of linear-term solution" for WPP and RPP could be well in excess of 434 days [March 18, 2013>May 25, 2014] I bet James Keene a good glass of wine that the next Mayor will be lucky to drive the proposal step before late May 2014. Maybe just maybe ... real collaboration will un'fold and a faster track will be discovered. I want to be clear. I am not faulting City Staff or Council. The process is necessary but only a few timelines are finally clear. The only way to hit May 25 is concurrent fast tracking a parking lot out on a frontage road along 101 with shuttle service. This parking lot and/or attendant parking in all 4 garages as previously presented to Council presumably are active projects now. This would assure downtown workers are not displaced by permit parking in 2015. I don't have all the ideas and hope I am overlooking fast track options. There is one big fallacy in these assumptions. Staff and Council seem to be assuming that demand from existing office/retail spaces plus new development completed before 2015 do not create another 200-400 workers searching for parking space ... very real probability. It is critical that the unused, virgin'al space on the top floors of High, Cowper and Bryant garages be fully utilized by attendant parking .... nobody has yet suggested any other solution for WPP/RPP displaced service and professional workers except one or two worthy, but unproven low hanging fruit TOM concepts. However, fast-tracked TOM solution are impractical without a functioning WPP/RPP. If the Council and all stakeholders can get a proposal to Council by May 26, 2014, what it is timeline for implementation? City Planning Staff can sketch out the framework with simple planning tools, for example. This is basic planning not rocket science. A good contractor for home remodeling can do this now not later in 2014. Here are just a few elements to consider: 1. Explanations to residents 2. Voting into the permit blocks or zones 3. Information and sale of permits to workers 4. Enforcement procedures and resources 5. Contracting and installation of signage :.' ... ,: 6. Parking alternative(s) for 600+ displaced workers actually functioning 7. etc, etc Let's get these steps into a timeline. My crude guess is that COPA and stakeholders will be pondering this project well into 2015 with a new Council and another mayor. I have few facts and a limited common sense to make this last assertion. But the Council and Staff are in a very bad position for not making this timeline clear to all the stakeholders within the next 2 months. Bad behavior, mistrust and failed corrfidence in local government happens when expectations are not met either on purposefully under-managed. I am reasonably confident that City Staff is aware of the parameters of the WPP/RRP project but too many people are in the dark. I am very impressed when the Planning Department has adequate staffing and resources. So let's fully utilize those talents. My biggest concern is based on fear based intuition, partial information and bad data: Three hallmarks of no quality control and I am guilty of this quality lapse. If I am the least bit accurate about a mid-2015 implementation of permit parking, then the amount of growing, cumulative demand for parking spaces could be disastrous for every stakeholder. BODOM LINE: THIS IS A BEST CASE ARGUMENT FOR COPA PLANNING DEPARTMENT TO START AN OPEN FRAMING PROCESS FOR KEY SOLUTIONS SUCH AS WPP/RPP. Drafted by Neilson Buchanan October 26, 2013 with the input of few expert residents Hello Aaron, So what do you think of the proposal that I and 126 people have put forward to alleviate the downtown parking problem? https://www.change.org/petitions/palo-alto-city-council-please-don-t-eliminate-employee-parking http://paparking.we~bly.com/ Is there any reason why you and your staff cannot attempt this proposal to see if it solves the problem before implementing your own proposal? It appears to hundreds of people that your current proposal is overkill in . dealing with the parking problem, especially when you will be eliminating hundreds of parking places that are not adjacent to any homes but adjacent to pUblic parks essentially eliminating the use of those parks by fellow Palo Alto residents who do not live in the acceptable neighborhoods. Johnson; Hopkins; Heritage and.Scott parks will be off limits ,during weekdaystQ fellow. P,alo Alto,residents:who live south of Embarcadero and East of Middlefield Roads. Will you be denying the use of Eleanor Pardee; Rinconada; Peers and Mitchell parks to residents who live north of Embarcadero and West of Middlefield Roads? Tony Ciampi P.So Some of the comments regarding this proposal: Mike McCue PALO ALTO, CA • 19 days ago • Liked 0 We are building an important new startup in Palo Alto and creating jobs. We will be forced to move to Redwood City if it's too difficult for our employees to park. Shabeen Chollampat PALO ALTO, CA • 19 days ago • Liked 0 Business bring lot of taxes for the city. Employees should not have to worry about getting tickets while they work Simon Cintz PALO ALTO, CA 4 • 20 days ago • Liked 0 This proposal deserves serious consideration by the City Transportation Department, downtown businesses/employees, and downtown area residents. At least it attempts to be fair and balanced, unlike the City's current (Sept 2013) parking plan. Charlene Gibson PALO ALTO, CA • 19 days ago • Liked 0 Fair parking supports all stakeholders. Residents get what they have requested. Workers get the free parking that has allowed businesses to thrive. I live and work in Palo Alto and believe this is proposal demonstrates fair parking. Try this plan before you try the RPP solution. Jon Virtes MOUNTAIN VIEW, CA • " ,+9 d~y~ agp • Liked 0 I don't just work in Palo Alto. I eat lunch and dinner, go for drinks, run errands, ship packages, do my banking, shop on University Ave, the mall, and other business in the area that I can drive to on a break. Yes, drive. This is all because I work in Palo Alto. If I no longer work here, then I won't be here to do business, its that simple. We're more than just workers and annoying cars parked on the street. We're the backbone of a thriving economy. This is what prosperity looks like and shortsighted plans like the one currently being considered can kill it. There must be a better solution, the one suggested in this petition seems like a more reasonable approach to seriously consider. If not, then ask the people of Detroit if they would rather have good, high-paying jobs in their town or if they would rather not have to walk a block to their house during the hours of 9-Spm. Carla Galaz SANTA CRUZ, CA • 18 days ago • Liked 0 I have to work 2jobs to make ends meet, I need my car right after work to go to my next job. It would be a hardship on me to pay the parking plus the parking avalable is quite limited once the residence parking is doled out. I park several blocks away to be sure clients can park close to our bussness. It is prejudicial to have the restriction for those of us who provide a service to the public. Our bussness brings people to the area who also patronize other places. Debra Peterson OCEANSIDE, CA • 18 days ago • Liked 0 5 I work on Channing near downtown PA, and already compete for parking --if the city of Palo Alto goes ahead with their current plan, it will be too costly for me to afford to continue with my current position. I work with 150+ others who will also be affected. I cannot believe the residents don't get the connection between causing workers to pay for parking ..... and the higher------much higher prices THEY will be paying to enjoy the downtown area amenities! Abby Wittmayer SAN JOSE, CA • 12 days ago • Liked 0 I work in Palo Alto as well as my 190 Team Members at Whole Foods Market. We provide the residents a neighborhood market within walking distance. We desperately need the parking spots for our Team Members. Renee Swink OAKLAND, CA • 3 days ago • Liked 0 I work at the Stanford Mall and have often enjoyed going downtown-the businesses there provide valuable services to the public-while I acknowledge that parking is limited, I do not understand why those who can likely least afford to pay for parking should be made to. For all of the comments go to: https://www.change.org/petitions/palo-alto-city-council-please-don-t-eliminate-employee- parking From:Aknin, Aaron (Aaron.Aknin@CityofPaloAlto.org) Sent: Wed 9/25/13 2:11 PM To: Tony Ciampi (t.ciampi@hotmail.com) Thanks Tony. I will take a look. Aaron Sent from my iPhone 6 Tamale. Diana Subject: FW: Email 4 From: Richard Brand [mailto:mmgos@earthlink.net] Sent: Friday, October 18, 2013 12:15 AM To: Neilson Buchanan; Paul Machado; dedra@pacbell.net; David@ecomagic.org; Chris Donlay; Elaine Uang; Elaine Meyer; Sally-Ann Rudd; Marion Odell; Linda Anderson; Bruce Heister; beasley@stanford.edu; Pat Markevitch; Patrick Butler; norman.beamer@ropesgray.com; John Guislin; Jeff Levinsky; Fred Balin; Summa, Doria; Paul Karol; Ana Carvalho Cc: Keene, James; Aknin, Aaron; Rodriguez, Jaime Subject: Re: Fw: Meeting at 4:00 NeHson et al: I found this meeting today to be very interesting and positive, especially to hear the commentsfrom trnose' business , people who came to this meeting. First of alii have to say that I am very pleased to have Aaron in the position that he has at Staff and I told Jim Keene that today at the meeting. To announce the meeting under the auspices of a "full disclosure" is so fundamental and yet surprising and I told Jim that he is a "breath of fresh air". We REALLY need to support this guy and he and Jaime together are doing good work. Overall, I found those in the meeting to be generally sympatico to we residents and the majority of the attendees were only looking to Aaron and Jaime as reps of CPA to provide a solution that would allow both their customers and their employees to have a fair chance to park near their businesses. A very fair request. The Council should hear from this audience, (not just from Cintz who I felt was in a minority in the meeting) as they are looking for an equitable solution. One of the things that was not put to the audience in the formal Staff presentation but which received a large majority support from the audience was my suggestion that the City provide parking off site, (Le. outside of the residential area) and have a shuttle bus bring employees into the downtown business area. Previously Aaron and all have suggested this option and it was well received by the audience tonight. The other issue that I found to be overwhelming was the support for "Concept A" with the 3 hour option but with the component that the existing 2 hour parking zones near the businesses not be reduced with RPP. I can agree with this because I see that the new high density residents along Alma and High streets who already have underground parking, are not opting to park in their garages and are taking parking away from the businesses in those areas. Again Neilson, thanks for letting me know about this meeting and also to Aaron for sending out his note. We will make this work and I now think we are quite close to a solution which includes the 3 hour "free" parking option. Regards, Richard Richard Brand -----Original Message----- From: Neilson Buchanan Sent: Oct 17,2013 11 :44 AM To: Paul Machado I "dedra@pacbell.net" , "David@ecomagic.org" I Chris Donlay , Richard Brand I Elaine Uang , Elaine Meyer I Sally-Ann Rudd , Marion Odell, Linda Anderson I Bruce Heister, "beasley@stanford.edu" , Pat Markevitch I Patrick Butler I "norman.beamer@ropesgray.com" , Jol1n Guislin , Jeff Levinsky, Fred Balin I "doriasumma@gmail.comll , Paul Karol, Ana Carvalho Subject: Fw: Meeting at 4:00 fyL .. could be interesting see Aaron's email below Neilson Buchanan 155 Bryant Street Palo Alto, CA 94301 1 demand for all day commuter parking is as great as we think it will be during the next few years .. (based on the pipeline data)then how will those tenants park? I can only speculate that Proposal A and B would force tenants to Crescent Park and Old Palo Alto or Stanford Shopping Center. 5. We had a good steering committee meeting on October 8. As soon as I get a consensus about the meeting notes, I will forward them to you. There are many questions that you can address with FAQs on the city website. At the very least you can get a glimpse into our concerns. I think the steering committee was committed to launching into permit parking with the understanding that we all will learn as we go and make appropriate adjustment when the time is right. Neilson Buchanan 155 Bryant street Palo Alto, CA 94301 650 329-0484 650 537-9611 cell cnsbuchanan@yahoo.com I') I 1 '1 From: "Aknin, Aaron" <Aaron.Aknin@CjtvofPaloAlto.org> To: "Neilson Buchanan (cnsbuchanan@yahoo.com)" <cnsbuchanan@yahoo.com> Cc: "Rodriguez, Jaime" <Jaime.Rodriquez@CitvofPaloAlto.orq> Sent: Monday, October 14, 2013 10:02 AM Subject: FW: prep work for RPP In DTN Nielsen -please see Jaime's responses below. Thanks, Aaron From: Rodriguez, Jaime Sent: Thursday, October 10,2013 10: 13 AM To: Aknin, Aaron Subject: RE: prep work for RPP in DTN See the responses below. Thanks. Jaime O. Rodriguez I Chief Transportation Official 250 Hamilton Avenue I Palo Alto, CA 94301 o ,., or D: 650.329.21361 E: laime.rodrigueZ@citvofpaloalto.org P LO ALTO Please think oj 'he environment beJore pril11ing 'his elnail-Thankyoul 2 From: Aknin, Aaron Sent: Thursday, October 10, 2013 9:45 AM To: Rodriguez, Jaime Subject: FW: prep work for RPP in DTN From: Neilson Buchanan [mailto:cnsbuchanan@Yahoo.com] Sent: Wednesday, October 02,2013 11:28 AM To: Aknin, Aaron Subject: prep work for RPP in DTN Next week DTN will be convening an informal DTN steering committee to deal with known issues and to identify other issues necessary to move forward with the staffproposal(s). We have invited representatives from Crescent Park and DTS to attend. I anticipate that both Staff and Residents will have meaningful suggestions before the proposals go to PTC. As soon as you return to work, can we have a quick conversation on how best to address the important questions below: 1. How many worker parking permits does the city want to allocate to DTN? It is impossible for us to analyze any proposal without this information. The two proposed RPP concepts identified the total number of permits that would be sold to commuter employees assuming up to 400/0 permits of the on-street parking spaces. We would not suggest starting with 400/0, maybe 20% and then adjusting up depending on the number of resident permits sold and monitoring. We are currently proposing residents to purchase up two permits per household but no cap resident permit sales. 2. How is allocation of space determined in the parking garages? On the surface, it appears that most of the decision making is controlled by the private governance of the parking assessment district. The issue is the ratio of permit space vs time restricted parking spaces. Since both staff RPP proposals create a massive an10unt of time restricted parking in DTN and DTS, my concern is that the parking garages could be converted to greater amounts of all day parking permitted spaces, thus displacing 2, 3 and 4 hour parking gradually onto residential neighborhood streets. As of September 2013 there is bountiful midday, 2 hour parking capacity in both Calif and Univ Ave commercial districts; however, available spaces are not uniformly spread The City monitors both Visitor and Permit parking spaces in the garages/lots twice per year. Modifications to permit supply are made based on the count data received, staff monitoring, and input from the parking control officers. We've currently stabilized the permit sold threshold and it varies per site. Once we implement the trial Attendant Parking program we will release additional permits at Lot R. The attached file shows the VisitorlPermitslPermit Thresholds per garage/lot. Previous business and visitor input was to not reduce the amount of visitor parking in garages because it appears well balanced to encourage Downtown use. 3. What are the controls on restaurant and hotel valet parking? For example, are valet parking services allowed to temporarily park on "daytime" time restricted spaces and then move them before expiration of "the time periods? Are valet services allowed unlimited use any "commercial" time restricted spaces after Spm for example. Are valet services currently allows to use unrestricted "residential" streets? Are there penalties for violations valet IInLles"? Valet programs are administered by PD. Each valet program needs to identify where vehicles are parked and city garages/lots are not allowed for parking of valet programs. Each of the valets in operations has an agreement with a private property to park vehicles on off-site locations. 3 4. Have you followed up with the allegations that some downtown businesses are using paid staff to move vehicles around the color restrictions? We have not surveyed individual businesses to detennine if they have staff dedicated to moving cars. Neilson Buchanan 155 Bryant Street Palo Alto, CA 94301 650 329-0484 650 537-9611 cell cns buchanan@yahoo.com 4 Tamale. Diana Subject: FW: Email 3 From: Michael Hodos [mailto:mehodos@mac.com] Sent: Wednesday, October 16, 2013 6:58 PM To: Aknin, Aaron Subject: RPP -Food For Thought Aaron: Over the past few weeks in informal discussions with my Professorville neighbors about the key elements of the RPP proposal you presented at the end of September four themes emerged repeatedly: • "Why does it have to be so complicated? Why can't the resident permits allow the purchasers to park anywhere rather than limiting them to the color zone in which they live?" While virtually everyone sees the need for the color zones to control the distribution of non-resident permitted parking, most questioned why resident permit parking should be controlled given that residents will inevitably try to park as close to their homes as possible anyway. Wouldn't this also make enforcement simpler? • "Why can't we vote block by block as opposed to color zone by color zone?" The issue here seems to be the concern that the "edges" of the zones not yet impacted by intrusive parking (i.e. further from downtown) will inevitably reject the plan "for now" until they are affected. • The desire to have the City should provide a printed F AQ document that addresses key issues associated with the program, including but not limited to permit pricing, anticipated number/percentage of non-resident permits per block face, guest permit protocols, anticipated number/percentage of transient "open spaces" per block face, future options to opt into the program, etc. • The strong feeling that if the program is managed in such a way that the blocks end up fully parked or nearly fully parked then what's the point? Michael mehodos@mac.com P.S. If you decide to produce a FAQ document I would be happy to work on it with whomever you designate to be responsible for the document. 1 Tamale. Diana From: Aknin, Aaron Sent: To: Tuesday, December 03, 2013 5:29 PM Francisco Salazar Cc: Sullivan, Jessica Subject: RE: Stop Residential Parking Permits (RPP) Plan Hi Francisco, Thank you for your email regarding the implementation of a Downtown Residential Preferential Parking Program. apologize for the delayed response. City staff definitely recognizes the potential impact of a Downtown RPP District on local businesses and we are hoping to develop a program that minimizes those impacts. Also, we are actively working on other strategies designed to support the parking and transportation needs of local businesses and commuters. We will be presenting some initial thoughts about these initiatives at the City Council meeting on December 16th, and would welcome your continued participation. Please contact Jessica Sullivan, Parking Manager, at the email address above if you have any questions. Feel free to contact me as well. Thanks, Aaron Aaron Aknin I Asst. Director of Planning and Community Environment 250 Hamilton Avenue I Palo Alto, CA 94301 D: 650.329.2679 I E: aaron.aknin@cityofpaloalto.org Please think of the environment before printing this email-Thank you! -----Original Message----- From: Francisco Salazar [mailto:fjsalazar510@yahoo.com] Sent: Wednesday, November 27, 2013 6:52 PM To: Council, City Cc: Aknin, Aaron 1 Subject: Stop Residential Parking Permits (RPP) Plan Honorable Council Members and Aaron Aknin, I Work for Watercourse Way in the SOFA downtown district in Palo Alto. My shift is 5 hours with only 10-15 minutes in between clients; I cannot move my car every 2 hours. My shift ends after dark and walking many blocks to my is dangerous. Sincerely Francisco Salazar. Sent from my iPhone 2 Tama Ie, Diana From: Aknin, Aaron Sent: To: Tuesday, December 03, 2013 5:28 PM Lizzy Gru ber Cc: Sullivan, Jessica Subject: RE: Stop Residential Parking Permit Plan Now!!!! Hi Lizzy, Thank. you for your email regarding the implementation of a Downtown Residential Preferential Parking Program. apologize for the delayed response. City staff definitely recognizes the potential impact of a Downtown RPP District on local businesses and we are hoping to develop a program that minimizes those imp'acts. Also, we are actively working on other strategies designed to support the parking and transportation needs of local businesses and commuters. We will be presenting some initial thoughts about these initiatives at the City Council meeting on December 16th, and would welcome your continued participation. Please contact Jessica Sullivan, Parking Manager, at the email address above if you have any questions. Feel free to contact me as well. Thanks, Aaron Aaron Aknin I Asst. Director of Planning and Community Environment 250 Hamilton Avenue I Palo Alto, CA 94301 D: 650.329.2679 I E: aaron.aknin@cityofpaloalto.org Please think of the environment before printing this email -Thank you! -----Original Message----- From: Lizzy Gruber [mailto:lizzy.gruber@gmail.com] Sent: Tuesday, November 26, 2013 9:12 AM To: Council, City Cc: Aknin, Aaron Subject: Stop Residential Parking Permit Plan Now!!!! Honorable Council Members and Aaron Aknin, 1 I work for Watercourse Way in the SOFA downtown district in Palo Alto. My shift is 5 hours with only 10-15 minutes in between each client; I cannot move my car every 2 hours. When I am sick, I need other therapists to work my·shift and they usually need parking. When other therapists are sick, I help on days I don't usually work and need parking then. All of us as therapist love our work and ease of being able to get to and from our cars with ease and not having to take extra time away from our day to find a new place to park. Especially for someone like me who doesn't feel safe walking in the dark a long way back to my car! The parking deficit is bad everywhere in downtown Palo Alto, but worst for SOFA businesses because we are prohibited from getting permits at other downtown parking garages. There are no parking permits available at the only garage where we can park and you knowingly plan to reduce business spaces by offering few surface parking permits to businesses in each color zone. I want Palo Alto council members to acknowledge there is a parking problem, and stop the RPP plan while longer range solutions to erase the parking deficit can be put in place. Downtown retail businesses are an asset to the community. Sincerely, Elizabeth Gruber 2 I work for Watercourse Way in the SOFA downtown district in Palo Alto. My shift is 5 hours with only 10-15 minutes in between each client; I cannot move my car every 2 hours. When I am sick, I need other therapists to work my shift and they usually need parking. When other therapists are sick, I help on days I don't usually work and need parking then. My shift ends after dark and walking many blocks to my car is dangerous. The parking deficit is bad everywhere in downtown Palo Alto, but worst for SOFA businesses because we are prohibited from getting pennits at other downtown parking garages. There are no parking permits available at the only garage where we can park and you knowingly plan to reduce business spaces by offering few surface parking permits to businesses in each color zone. I want Palo Alto council members to acknowledge there is a parking problem, and stop the RPP plan while longer range solutions to erase the parking deficit can be put in place. Downtown retail businesses are an asset to the community. Sincerely, Charlene Gibson 2 Tamale. Diana From: Sent: To: Cc: Subject: Hi Emanuela, Aknin, Aaron Tuesday, December 03, 2013 5;25 PM Emanuela Franchi Keene, James; Gitelman, Hillary; Sullivan, Jessica RE: Stop Residential Parking Permit (RPP) Plan now Thank you for your email regarding the implementation of a Downtown Residential Preferential Parking Program. apologize for the delayed response. City staff definitely recognizes the potential impact of a Downtown RPP District on local businesses and we are, hoping to develop a program that minimizes those impacts. Also, we are actively working on other strategies designed to support the parking and transportation needs of local businesses and commuters. We wilt be presenting some initial thoughts about these initiatives at the City Council meeting on December 16th, and would welcome your continued participation. Please contact Jessica Sullivan, Parking Manager, at the email address above it you have any questions. Feel free to contact me as well. Thanks, Aaron o :1 T u LO L 0 Aaron Aknin I Asst. Director of Planning and Community Environmen': 250 Hamilton Avenue I Palo Alto, CA 94301 D: 650.329.2679 I E: aaron.aknln@cityofpaloalto.org Please think of the environment be/ore printing this email -Thank youl From: Emanuela Franchi [mallto:efranchl@2012.nhl.edu] Sent: Monday, December 02, 2013 8:47 AM To: Council, Crty Cc: Aknin, Aaron Subject: Stop ReSidential Parking Permit (RPP) Plan now Honorable Council Members and Aaron Aknin, I work for Watercourse Way in the SOFA downtown district in Palo Alto. My shift is 5 hours with only 10-15 minutes in between each client; I cannot move my car every 2 hours. When I am sick, I need other therapists to work my shift and they usually need parking. When other therapists are sick, I help on days I don't usually work and need parking then. My shift ends after dark and walking many blocks to my car is dangerous. The parking deficit is bad everywhere in downtown Palo Alto, but worst for SOFA businesses because we aFe prohibited from getting permits at other downtown parking garages. There are no parking pemlits available at the only garage where we can park and you knowingly plan to reduce business spaces by offering few surface parking permits to businesses in each color zone. I want Palo Alto council members to acknowledge there is a parking problem, and stop the RPP plan while longer range solutions to erase the parking deficit can be put in place. Downtown retail businesses are an asset to the community. Sincerely, Emanuela Franchi 2 Please give us special consideration. I can't leave a massage, walk 3 or 4 blocks to move my car. My shift is 5 hours with only 10-15 minutes in between each client; I cannot move my car every 2 hours. When I am sick, I need other therapists to work my shift and they usually need parking. When other therapists are sick, I help on days I don't usually work and need parking then. My shift ends after dark and walking many blocks to my car is dangerous. The parking deficit is bad everywhere in downtown Palo Alto, but worst for SOFA businesses because we are prohibited from getting permits at other downtown parking garages . . There are no parking permits available at the only garage where we can park and you knowingly plan to reduce business spaces by offering few surface parking permits to businesses in each color zone. I want Palo Alto council members to acknowledge there is a parking problem, and stop the RPP plan while longer range solutions to erase the parking deficit can be put in place: . Downtown retail businesses are an asset to the community. Thank you, Sherry 2 Boatwright, Tabatha From: Sent: To: Subject: Dear Council - Jeffrey Rensch <jrensch@gmail.com> Thursday, January 16, 2014 9:18 AM Council, City Comment on RPP r ,,-" r d '-, ' a ,) iT n C 1\ nil v-• it-ell Y CLEm','s OFFICE It J n , \ I" I; ~p II' c: 1 I I> f'," I" 1-' fl' ;J .~ '-'\1¥ J .... Regarding recent staff information on the RPP program, I am wondering why the program is designed to be "cost-neutral". Why not charge a bit more for the fees and put the extra money into a fund for alternative transportation? After all, supplying permits for parking alleviates a current crisis but does not offer any structural improvements to the basic problem of congestion (as strengthening the city shuttle might do). Parking and traffic cause immense negative impacts on our community and their growth or even stasis should not be encouraged through a "neutral" program. Thinking long term, a better solution is to work on alternative transport, as indeed you are doing, but also to fund it by augmenting these fees. I think you should also consider eliminating free parking downtown. It is something of an economic distortion to treat parking as a "free" and "neutral" service. Thank you for your work on taming the traffic/parking monster. thanks for listening leffRensch, 741 Chimalus 1 David Price: THE EPIPHANY Loved the Post article about the new Epiphany Hotel. (Capitalized Epiphany usually refers to a Christian festival). The name is prophetic: An epiphany is an experience of sudden and striking realization. Epiphanies are relatively rare, generally following a process of significant thought about a problem, often triggered by a new and key piece of information, an understanding, an illuminating discovery, realization, or disclosure, a moment when you suddenly realize or understand something important, the moment of truth. Wait till the employees, guests and restaurant customers look for parking. This use needs in excess of 100 spaces but provides zero on site, City garages and lots are full. Dh yes, the application promised valet parking for 30 parking spaces, but where and will it displace existing parking? We can hope the hotel will be the "epiphany" for the downtown parking problem when both business and the City suddenly realize or understand something important, the moment of truth: "Developers and property owners are getting away with murder by not providing the parking they promised a decade ago." Yes, they get credit for parking at a ratio of 1 :250 but have only provided parking at a ratio of 1 :2,500, 10% of the minimum needed, even by a decade old standards. Likely it will only be an epiphany for residents as parking in the neighborhoods is pushed out another 6 or 7 blocks: "Why didn't somebody do something to stop this?" Ken Alsman 100 Addison Ave 650-533-8070 January 13, 2014